Shoplifting Stories and Stats

January 14, 2015 by Leave a Comment

shoplifting4Many retailers invest thousands of dollars to protect themselves against theft. From surveillance to electronic devices, these retail shop owners try to find a way to reduce their shrinkage in a daily basis. Whether they are dealing with petty shoplifters, employee theft or organized groups, they have to know their problem first to be able to find a solution they can implement in their store. To read more about this common problem, follow the links below for more information.

EPD: Retail theft up in 2014

EASTON — The Easton Police Department reported a 61 percent increase in retail thefts in 2014 — from 163 retail theft cases in 2013 to about 263 in 2014.

In response to this increase, the EPD announced that each month it will release photographs of all individuals who were charged with retail theft.

There’s an understanding that to better prosecute and deter thefts, a partnership between retailers and law enforcement is vital, EPD said.

In August 2013, EPD also started a Retail Investigator’s Network, which brings together retail loss prevention/asset protection investigators, prosecutors and law enforcement from Easton and Denton.

During these meetings, solved and unsolved investigations are discussed, which has increased closure rates in Easton and Denton, police said. These meetings have opened lines of communications between retailers. These meetings are also used to educate everyone in crime trends and other criminal activity that’s associated with retail theft.

In 2014, retail loss prevention/asset protection investigators and law enforcement in Easton and Denton have saved retailers about $142,722, EPD said.

Dover Police See 19% Drop In Reported Shoplifting Cases Since Posting Arrests Online 1-6-15

The Dover Police Department saw a 19% drop in shoplifting complaints since beginning the Shoplifter Notification Program on August 7th, 2014.  The program which posts mug-shots of persons arrested for shoplifting on a weekly basis on the department website and social media outlets, has helped to reduce shoplifting incidents during the 4-month trial period.  The reduction in shoplifting incidents during the trial period also led to a 12% drop for the entire calendar year compared to 2013 numbers and bringing the total number of shoplifting cases below 1,000 for the first time since 2010.

From 2011 through 2013, the Dover Police Department investigated 3,290 shoplifting cases, averaging 3 per day during that time period. In an effort to help reduce the amount of shoplifting cases in the City of Dover, the department began the weekly notifications, displaying the names and booking photos of those arrested. The goal of the notifications is to notify Dover merchants of offenders in hopes of being able to reduce the number of shoplifting cases. The majority of shoplifting cases are committed by repeat offenders and the department’s goal is that by releasing the information, store employees will be better informed when monitoring their stores and inventory, and that suspects will think twice before stealing merchandise in fear that their name and photo will be shared with the public.

The Flowerpot Bandit: Man ‘holds up petrol station’ wearing a flowerpot on his head and wielding a chainsaw, but only manages to steal a bottle of soft drink

A teenager has been arrested after he allegedly held up a petrol station while wearing a flower pot on his head and wielding a chainsaw, though he only managed to steal a bottle of soft drink.

The man entered the 7-Eleven service station in Ipswich, Queensland, at 4.30am on Monday, wearing a flower pot on his head in an attempt to conceal his identity, it will be alleged.

He is accused of lunging at the shop assistants while holding a running chainsaw, and demanding money from them.

Chainsaw attack: The 19-year-old held up a service station wearing a flower pot on his head. He then made demands for money from the male attendant

The terrified shop assistants, who were cleaning a coffee machine at the time he entered, claim they then retreated into a back room and called police.

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Start 2015 With Loss Prevention Best Practices For A More Profitable Year

January 9, 2015 by Leave a Comment

theft (4)Now is the time to go on the attack! Fix your loss issues before they cost you this year’s profit margin. To do this, in many cases requires you to change the way you look at losses. First and foremost, if you are not leading with an “LP” mindset, how can you expect others to follow and support your goals? Loss prevention should always enter into decisions even if in a minor way. Decisions on how and where to display merchandise and the standards you set for employees to follow, are just the start.

There are three main sources of loss in a retail environment: External (shoplifters), internal (employees) and paperwork errors.

Let us look at two of these, starting with internal. My experience tells me that about 10% of employees in a given retail store are involved in theft. You may be saying to yourself that “my employees wouldn’t do that to me”. If you find yourself thinking that way, you are actually at a greater risk than most. Because you are in denial. People will steal regardless of how good you are to them, how much you pay them, how many times you have helped them and so on.

Often when I hear someone say that, we end up finding out that they have some of the largest losses. I know this may sound cynical but it is the truth based on my experience and thousands of employee theft investigation I have personally conducted. So what can you do to prevent employee theft?

To start, understand that employees must be held accountable. Employees can steal four different things from you: cash, merchandise, supplies and time. All of these have value including supplies. If you operate at a typical profit margin of 2% after taxes a loss of $100 will cost you $5000 ($100/0.02). So even a twelve pack of toilet paper has value, not to mention the serious morale issue when you don’t have toilet paper! Employees need to understand that the only thing they are allowed to remove from the store is the air in their lungs.

On top of this, what message are you sending employees by your actions? For example, if you have a policy that cash register shortages under $5.00 are not investigated and a cashier held accountable, then you are telling everyone that it is okay to steal up to $4.99.

Look for employees that wholeheartedly share, understand, support (not just to your face) and practice your LP policies. These employees should be held up to be the standard. Others will then follow. Those who don’t, well… you get the picture. We have a great sample document you can use for your LP employee handbook. It sets the standards and lets them know from the very beginning what you expect, tolerate and will not tolerate. If you would like a free copy in Word format that you can customize for your use, please send me an email.

Shoplifters, those horrible people that come into your store and try to steal everything they can. Okay I will say up front, we sell Checkpoint anti-shoplifting systems. These systems are used by most major retailers worldwide and for a reason. They shut down a huge amount of shoplifting. They are commercial grade and meant to stand up to the tough retail environment. With that aside, let me ask you this, Why are you not using one? A Checkpoint System is a proven way to bring your shoplifting losses under control.

Other best practices include the use of CCTV. However, you must have the correct expectations for this. CCTV is a reactive measure. Shoplifters are rarely deterred by cameras as they know you do not have the payroll to watch them all the time or even when they are skulking around in your store. CCTV is good for employee theft prevention and investigation. You can use it in a somewhat proactive way by bringing an employee in, showing them a 60 second clip of them doing something good and then complimenting them on a job well done. They leave with a good feeling but say to themselves and others “wow I guess he/she is watching”. Do that monthly and see what happens. Believe me, word will get around.

Employee training is something we almost always overlook. Or we just say that they are learning as they go. You invest a lot of effort and money into a new hire. Spend a few hours with a structured outline and make sure they understand what their new job is, the standards you have and what you expect them to do each and every day. The document I offered you above for free will help with this.

Pre-employment screening is also overlooked. For example, have you ever confirmed that a person you are looking to hire can actually count money? Do you test for that? Put $100 on the table and see if they can make correct change without the assistance of the cash register. If they cannot, do you really want them handling your cash?

Paperwork errors are just as deadly as any other form of loss. Keeping a correct inventory not only helps with reordering but is a critical component of controlling theft. How can you react to loss, if you do not know what items are stolen? For example, you might not know that a particular item is being stolen because shoplifters have found a demand for it elsewhere.  If you suspect that a particular item is being targeted, then conduct what is called a cycle count on it. A cycle count simply means you are counting it on a daily, weekly or biweekly basis. Comparing that information to your sales of that item will allow you to react quickly before it is too late and the losses become severe.

Are you ensuring that your employees are not making mistakes in their work and then not correcting them? You also need to set the standard that you are watching and reviewing. For example, if an employee is checking-in a shipment and they are to piece count every item, then follow through by picking up the manifest that they just did and spot check their counts on a few items. When they get it right, complement them. If they made mistakes, show them their errors and let them know how the job is to be done and the standard. By the way there are vendors that will try to short your shipment hoping that you don’t check.  Vendors and shippers also have employee theft issues and you do not want to be left holding the bag for their issues. I have caught major shipping company employees cutting open the bottom of boxes removing merchandise and then taping the box back up. All of this is done on the truck before they arrive at your business.

I realize that much of this is common sense.  However, in many cases we are so busy trying to make money that we forget to keep the money we have on the bottom line. Remember, we are here for you. If you have any questions or issues, we are simply a phone call or email away.

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Cycle Counts

January 9, 2015 by Leave a Comment

shoplifting2With only a distant memory of the holiday shopping season in our minds and spring business just on the horizon, it’s a good time to start focusing on inventory control and accuracy. With the hustle and bustle of the holidays, retailers sometimes lose focus on what’s really important, their inventory. It should be second nature for you to take an annual inventory of your store. The best time to do this is soon after the holiday. Think about it, your store is most likely at a low inventory point, so counting is normally easier, and you have a little extra in the payroll budget due to that month of increased sales. It only makes since. Often though, this annual inventory is the only time some retailers verify their on hand accuracy, however, cycle counts can be of great benefit to any store environment, any time of year.

If you are unfamiliar with cycle counts, just think of them as a mini-inventory focused on a small section of your store. In my experience, conducting a count on high value, or high theft merchandise at least quarterly (monthly is better), can actually help boost sales. For example, let’s say that you sell several styles of pocket knives. Your sales are good in this category, but your shrink is always high. You know you lose knives daily due to theft, so your on hand counts are always a little off. If you are replenished based on those counts, then you may not be getting the product you need, which will then hurt your ability to sell that product. Not only is the theft creating a loss, but now you are losing sales because your customers can’t purchase a knife you don’t have. If you waited an entire year to conduct an inventory, you would lose those sales for the entire year. This can easily be corrected through consistent and well planned cycle counts.

Once you have the areas of the store selected that would benefit from a cycle count, plan to do them on a day that is historically a low sales day, like early on a Monday morning. This gives you a chance to get it done with minimal interference from customers, and it won’t mess with your counts if a customer purchases an item you are counting. Take a small section, once a month. Don’t try and count an entire department. Keep it simple and focus on a small area that is normally high shrink. Print out what you should have on the books, and compare it to what you physically have. Simply make any adjustment to your inventory as needed. It’s really that simple and it’s a great way to stay in stock for your customers.

As in the example above, as a manager, or store owner, you know what areas of the store have the most shrink. In order to combat theft and remain in a good stock position throughout the year, you have to have accurate on hand counts. If you implement any inventory adjustments, always ensure that they are conducted by a manager, or one of your most trusted employees. Having an inaccurate count can cause a loss on paper, and/or keep you out of stock even longer. Additionally, this can also help you to identify areas of employee theft as well. If you have items that are shipped to your store that are stored in areas only accessible to employees, you shouldn’t have any losses. For instance, if you have high end sunglasses that are kept locked in a case and you find you are missing hundreds of dollars’ worth of those glasses, chances are you may have an internal theft issue. If you would wait until the end of the year to find that during your annual inventory, you may never be able to uncover the source of the loss.

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What’s Trending in the World of Shoplifting?

January 8, 2015 by Leave a Comment

shoplifting1Wouldn’t it be nice if the criminal world was as easy as Twitter? You could just go online and look at what’s trending and then take proactive steps to stem any potential losses. That would be great! Unfortunately, criminals, especially thieves rarely broadcast their intentions. It’s up to the loss prevention community and local law enforcement to share these trends amongst each other in order to combat shoplifting.

You may or may not be aware, but shoplifting is much more than just putting one item in your purse, or pockets. I routinely see individuals and groups operating some very sophisticated fraud schemes in order to remove product from the store. One of those trends that have become more and more prevalent over the past year has involved refund fraud. I had a very complex case that spanned several months that was more sophisticated than anything I had every come across in all my years conducting Loss Prevention Investigations.

The basic storyline is that a brick and mortar store front was employing individuals to target stores for small, high dollar merchandise. Once the product was stolen from one store, it would then be brought to a second store where a refund was given for the product in the form of store credit. That individual would then utilize that credit in order to purchase a high end electronic item. The item, along with the receipt was sold to the store front. This is where it takes a more complex turn.

The store owners would then arrive back at the store with the receipt and electronic item and ask to exchange it for other product. This was routinely conducted with footwear or apparel items. The store owners would conduct the exchange and, on most occasions, pay a difference in cash of anywhere between $10 and $20.

Over several days, the store owners would return to my store and refund each item that was purchased during that exchange transaction. Since the receipt showed they paid a cash balance, inattentive store personnel would always give them a full cash refund. Did I lose you?

Essentially, I was at a loss 5 times for the same product. First it was stolen. Second, I gave them a store credit for stolen goods. Third, the store credit was then spent. Fourth, the product the credit was spent on was exchanged for additional merchandise. Fifth, we gave them cash. It was incredible once it was all uncovered. This group has figured out a way to essentially launder stolen goods and with a few steps and some patience, get cash. All while keeping the appearance of a legitimate transaction. All told, our stores lost well over $100k to this scam.

It was an expensive lesson to learn, but it goes to show just how creative people can be when it comes to fraud. While this was the first time I had ever seen something of this complexity, I can assure you that in the next year, someone will come up with an even more complex method to defraud retailers.

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Post Christmas Blues

January 5, 2015 by Leave a Comment

theft (10)Well, the 2014 Holiday Season is over; now we are dealing with the post-Christmas issues, returns, inventory and tallying up how we did! Even without official numbers you probably have an idea. Are returns higher than what you expected? Did shoplifters get more than what you were prepared to lose? One of the problems, we as business owners face, is that we get ramped up for sales but we tend to put off preparing for loses. We tell ourselves that we will get to it later. Then when that B or C priority rises to the level of serious loss, it is too late. But we all do that, with many things. It is part of running a business.

Eventually we get tired of dealing with something over and over again and decide to break the cycle. What is the saying? “Doing the same thing over and over but expecting a different result, is the definition of insanity”. Thieves will not go away, in fact they will only get worse unless you deal with them head on with real business solutions. Shoplifting and employee theft are actually very simple issues to address. You will never eliminate them completely, however, you can reduce them to an expected level balancing the cost and effect.

Many retailers do not realize that they can and should attack both issues internally first. Take a look at your procedures. Step back and look at them – I mean truly LOOK at them, hard. Why are you doing something the way it is done? Is that the reason for your losses? A good example may be your cash handling procedures.  Is your till generally short? How much? Why? If your policy is that you do not make an issue out of a drawer that is $15 or less short, then you have sent the message to your employees that they can steal or be careless up to $15. Fifteen dollars multiplied by 365 days a year is A LOT of money to any retailer, large or small. All of this because of your “procedure” or attitude.

How about shoplifters? Do you really know how to prevent and stop them? Do you teach this to your employees? If you don’t you can never expect to be as profitable as you can and should be. Shoplifters will react to your efforts by going elsewhere. That is what you want. This allows you to spend more of your resources and human capital on your paying customers. Sell more, lose less should be your motto!

If you want help, we are here for you. If you do not, that is OK also. But you can fix your losses.

We wish you a great and prosperous 2015!

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The 80/20 Rule

January 5, 2015 by Leave a Comment

shoplifting2The 80/ 20 rule for retail is actually a series of rules, or guidelines to how and where your inventory shrink comes from. Once you drill down to see what is actually driving your shrink, you have the ability to implement much more efficient anti theft and anti shrink strategies.

The first part of evaluating the 80/ 20 rule is to determine a generalization of how your store is incurring losses. There are three main areas of shrink loss that all shrink can be categorized as. They are Internal, External and Operational shrink. As a rule of thumb, internal shrink is explained as asset losses intentionally carried out by an employee of the store. Employees who are stealing merchandise drive internal shrink.

Operational shrink, on the other hand, is merchandise losses carried out by an employee unintentionally. These are the store’s operational errors that end up causing losses. Did an employee accidentally miss an item when they checked a customer out? Did an employee pull some glass cleaner from the shelf to clean their workstation, but not record it on a store use log? Did an employee break an item of merchandise beyond repair and threw it in the trash without letting anyone know?

These are all everyday examples of how an employee can unintentionally cause losses. These are not theft related actions that we would arrest and prosecute and employee for, but the end result is still the same. We are now showing missing merchandise and our bottom line has suffered from the shrink loss. Unidentified items missing from freight shipments also fall into this category.

External shrink losses are created by anyone outside of the company. These are non-employees who steal our products- the shoplifters. The average shoplifter steals much less per incident than an employee does. Even if you have a higher frequency of shoplifters in your store, employee theft will still outweigh the losses caused by shoplifters over time.

While it is really up to you to determine the actual breakdown in your store, most retailers average about 40% of their losses from internal theft, 40% from operational errors, leaving only 20% to external theft. Obviously these numbers can change based upon your location, kinds of goods sold, and staffing sizes. Overall, these numbers equate to about 80% of your shrink is derived in house (by your employees), and 20% comes form external sources.

Next you want to drill down even further into your losses by looking at departments, and the individual items that are being stolen. Ideally you want to have an inventory system that allows you SKU level accuracy. By drilling down to the actual item number that is shrinking out, you can create an action plan suited specifically to that item. At the very least, you should know which departments and product assortments are the highest losses.

Once you determine your highest shrink items, you should know the quantity and/ or dollar amount lost. You can then put your efforts into where the biggest losses are. You might be loosing 100 packs of gum that cost $1.00 each, or you could loose one handbag worth $200. Frequency versus actual dollar amount lost might dictate a closer eye on your handbags, than the multiple losses in packs of gum.

By taking a look at the highest dollar losses, you should see that about 80% of your total shrink losses are coming from only about the top 20% of your shrink items. This drill down approach further streamlines your anti shrink strategies. Now, instead of focusing on every little loss that occurs in your store, you can focus on only the top items. By creating feasible reduction strategies on only those items, you can create a significant reduction in your store’s overall shrink losses.

 

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Building Partnerships

January 5, 2015 by Leave a Comment

law-3Every store should have a way to build reliable partnerships with local law enforcement. For some jurisdictions, that could mean the sheriff’s department, city or county police. In some rural areas, that might even mean the state police department. There are many was to build these partnerships, and your store’s safety and security will benefit greatly from those partnerships.

What you are looking for is to have periodic visits from these law enforcement officers. Ever wonder why you see police at a donut shop? For one, the shop owners frequently give free or reduced prices on coffee to these officers. It is a nice gesture to these officers, but also an incentive to get them to frequent the shop. The more often police are in the shop chatting, drinking coffee etc, the less likely the shop is to be robbed.

Coffee and donut shops are often open late, and have only one or two people working. This makes them prime targets for robberies. Having an increased police presence helps to reduce the risk. If something were to happen, the police would quickly respond not just because that is their job, but also because they are probably on a first name basis with that shop owner and its employees. For these businesses, a cup of free coffee is a small price to pay for that kind of security and peace of mind.

Depending on the kind of store you have, giving product out for free or at a discount may not be feasible. That doesn’t mean you can’t make it worth it for local law enforcement to stop by periodically. Even though most departments shy away from case quotas, officers who do produce cases are given raises and promotions over those who don’t. By building partnerships with officers you can get some extra help with your suspected shoplifters, reduce losses, and help out your local community by giving local law enforcement tips on suspected criminal activity in your store.

Most law enforcement agencies have a community resource officer. They would be one of the first points contact to start building a relationship with. Asking if they would be willing to do a safety or security presentation for an employee meeting is a good way to break the ice. It is the first step in letting the local police know they are welcome in your store.

One of the next ways is to see if there is a retail anti theft task force set up. If so, ask if they would be interested in putting your store on their list. These task forces go into local businesses, in particular around busy holiday shopping seasons, and look for shoplifters, credit fraud, and other criminal scams. The task force will send officers into stores, generally in plainclothes, to watch cameras or do floor surveillance to spot any criminal activity.

These task forces are a free service to their retail community. While these officers are in your store, you can talk to them about what kinds of thefts you are experiencing. It also gives you an opportunity to connect with the officers and get to know who they are. These officers can become invaluable resources even after the task force is done for the season.

You now have specific officers that you can call if you have a shoplifter in your custody, or experienced a high dollar theft. The officers might be more willing to do some investigative legwork on your case, if you have built a partnership with them. Of course, part of the partnership is showing restraint and professionalism to these officers.

It is not suggested that you call them for every low dollar shortage that walk out your door, or for people who “seem suspicious” but you have no corroborating evidence. There are still laws that must be upheld regarding liable and slander. If you consistently show poor decisions about which cases to call on, you will tarnish your reputation negating any usefulness of your partnership. Remember, there is a difference between offering viable leads to confirmed inventory losses, and crying wolf over every gut feeling you have.

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Is Shoplifting Becoming More Violent?

December 30, 2014 by Leave a Comment

shoplifting5The detrimental effect that shoplifting has on profitability in a retail business is monumental. While businesses compete by keeping prices low, shoplifting makes it difficult for those businesses to compete at any level. Retail businesses struggle to survive in any economy, and adding shoplifting issues into their struggle make it almost impossible to be profitable. Spending millions of dollars in security cuts into their profits as well and they do not get rid of shoplifting or employee theft by doing this. All these issues make it impossible for retail stores to offers prices that can be competitive with other stores, or make sense to the consumer. Follow the stories below for more news about shoplifting.

Shoplifters caught on tape fleeing Macy’s

SARASOTA, FLA — Detectives with the Sarasota Police Department are attempting to identify two women who were caught on camera stealing merchandise from Macy’s at Westfield Southgate Mall in Sarasota.

Officers were dispatched to Macy’s on Dec. 20, 2014 in reference to two women shoplifting. The loss prevention officer for the store observed the two women taking items off shelves and concealing them in a purse and other shopping bags. The loss prevention officer called the Sarasota Police Department as soon as he noticed the two women from the office, on camera, all while keeping dispatchers on the phone updated.

When the two women attempted to leave Macy’s, the loss prevention officer asked them to come back into the store and they took off running. No subjects were located but the two women shoplifting were caught on camera. When one of the women started running, she dropped a bag of items worth nearly $1,100.

Anyone with information is encouraged to call Detective Kim Laster at 941-364-7327 or leave an anonymous tip with Crime Stoppers by calling 941-366-TIPS (8477) or online at www.sarasotacrimestoppers.com

1 suspect still at large after Christmas Eve robbery, assault

Eighteen-year-old Hunter Thompsin Ackerman and 19-year-old Eden Araque were booked into Metro Corrections Monday night after police said they were caught on surveillance video shoplifting at JC Penney.

LOUISVILLE, Ky. (WHAS11) — Two of three people wanted in connection with a robbery and beating at the Mall St. Matthews are now behind bars.

Eighteen-year-old Hunter Thompsin Ackerman and 19-year-old Eden Araque were booked into Metro Corrections Monday night after police said they were caught on surveillance video shoplifting at JC Penney.

Police said the trio stole nearly $400 worth of merchandise and assaulted a loss prevention officer when she tried to stop them Dec. 24. According to police records, the employee suffered a broken nose during the assault..

APD reports string of violent shoplifting cases

ALBUQUERQUE, N.M. —As the holiday shopping season comes to a close, Albuquerque police say they’ve seen a substantial increase in shoplifting cases this December with offenders brandishing deadly weapons.

Officer Tanner Tixier couldn’t provide specific numbers, but says shoplifting cases where an offender threatens a store employee with a weapon have become all too common this holiday season.

“These attacks are becoming more and more prevalent,” Tixier said. During these attacks, Tixier says loss prevention officers who are trained to spot and confront shoplifters are being threatened.

“These criminals have the ability to escalate their violence very rapidly,” Tixier said.

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Loss Prevention

December 18, 2014 by Leave a Comment

shoplifting3During this time of year the number of shoplifters visiting your store is more than at any other time of the year. Stores across our nation invest millions of dollars in loss prevention, and still billions of dollars are lost due to this crime. Some of the measures retail stores use to prevent shoplifting are the use of video surveillance, security guards, and special tags that are attached to the merchandise and are set off when leaving the store without paying. These are some of the many other prevention measures that help retailers deterred shoplifters from entering their stores. Are your loss prevention measures adequate? Do you need to do more to prevent loses? Read the articles below for more news about shoplifting.

Police conduct holiday shoplifting operation, 19 arrests

ST. PETERSBURG, FLA. —

Yesterday plain clothed detectives with the Department’s Economic Crimes and

C.O.T.A. Units conducted a one day operation with loss prevention officers at

the Wal-Mart Store located at 201 34th Street North.

The purpose of the operation was to address the problem of shoplifting that increases during the holiday season.

A total of 19 individuals were arrested, mostly on charges of retail theft although several had outstanding warrants and one juvenile was in violation of court ordered home detention for a previous burglary charge. Of those arrested, 9 were adults and 10 were juveniles.

Great Falls merchants go on guard against shoplifting

Downtown Great Falls’ Amazing Toys owner Dave Campbell said his staff noticed that a $350 Legos set was missing from its perch. They searched the store and found the valuable toy stashed near the front door where a thief planned to retrieve it later.

Dragonfly Dry Goods owner Alison Fried said her staff warmly greets customers, which most shoppers welcome. But some folks, possibly with bad intentions, turn around and walk out the door. She said she has a good camera system inside and outside the store that videotapes 24 hours a day. Fried lets other downtown merchants know who to look for if her store has been hit by a shoplifter.

“We use the team approach,” she said. “We’re a cooperative community downtown.”

“Shrink,” a business concept that includes shoplifting, employee or supplier fraud and administrative errors, cost the retail industry around $42 billion in sales in the United States last year, according to the latest Global Retail Theft Barometer. Worldwide, those factors cost businesses $128 billion.

Man Accused Of Abandoning Child While Shoplifting Speaks Out

A Lexington couple who allegedly abandoned their child while fleeing from loss prevention officers at Walmart say that the police have it all wrong.

Eric Powell and his girlfriend Samantha Barker are accused of shoplifting and taking off leaving behind their 9-month-old child.

Powell says that is not at all what happened.

“We was at Walmart shopping she was at the store shopping and I was by myself looking at magazines and stuff,” says Powell.
He says when they went to check out, he realized he couldn’t pay for the diapers they were trying to buy.

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Conceptualize Dishonesty Using the Fraud Triangle

December 16, 2014 by Leave a Comment

shoplifting7Honest people can have a hard time perceiving and understanding dishonesty in others. Because they have a difficult time conceptualizing it they have a difficult time detecting it. A common lament among managers who have discovered fraud among their employees, vendors and clients is, “I don’t understand how he could do this to me. I had no idea it was happening. I’m just too trusting.”

People too often identify themselves as being trusting, when they’re really being naive. Don’t be naive, protecting your business is vital, many small businesses have been closed due to the fraudulent behavior of their employees, venders or clients. If you don’t want to be taken advantage of it’s important to understand the 3 key factors of the Fraud Triangle.

Before discussing these factors it’s helpful to define fraud, people often have misconceptions about it. According to “Black’s Law Dictionary” fraud is “a generic term, embracing all multifarious means, which human ingenuity can devise, and which are resorted to by one individual to get advantage over another by false suggestions or by suppression of truth, and includes all surprise, trickery, cunning, dissembling, and any unfair way by which another is cheated.”

The 3 factors, which make up the Triangle, are typically present when someone commits fraud. Understanding these elements will help a manager spot dishonesty easier and earlier, because a person who exhibits these thoughts and characteristics is at great risk for deceitfulness.

1. The perceived pressures the person believes they are under.

2. The perceived opportunity the person has to commit fraud.

3. The person’s rationalizations for committing the fraud counter-act their innate integrity.

Here’s an example of how the Fraud Triangle works. Mrs. K has never stolen from her employer and is indigent when others do. She wants to take her immediate family to an expensive reunion. She can’t afford it, but all of her extended family are attending. Mrs. K perceives this as a personal and financial crisis (1st side). She’s the company’s bookkeeper and there are no fiscal controls in place (2nd side). Mrs. K rationalizes that she’ll “only borrow” the money for the trip and then pay it back (3rd side).

She embezzles the money, gets away with it and keeps on stealing. Because usually, once all 3 components are present, when people commit and get away with fraudulent acts they continue the behavior. Also, they may continue behaving dishonestly if they get caught but have no or too few consequences. This is why many managers have found that giving someone “a break” usually backfires on them.

When you understand the Fraud Triangle, and use it as a touchstone for conceptualizing people’s dishonesty, it becomes easier to formulate a defense against deceit. There are many ways to mitigate each of the 3 factors, which can greatly reduce or eliminate the possibility of being taken advantage of. After all, your honesty should be an asset to your business not a liability.

Nicole Abbott – writer, educator and psycho-therapist

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