The Costs of “Wardrobing”

March 31, 2015 by Leave a Comment

theft (10)According to the National Retail Federation’s annual survey, it is estimated the industry loses approximately $9.1 billion yearly in return fraud.  This includes refunds on merchandising that has been stolen and a practice like “wardrobing” that is costing retailers this incredible amount. Those incidents are done by employees as well as shoppers and shoplifters.  To read more about this topic follow the links below for more information.

NOT-SO-HAPPY RETURNS: RETAIL FEDERATION HIGHLIGHTS “WARDROBING” COSTS

In a new survey, the National Retail Federation says that holiday-return fraud could end up costing stores billions this year. The worst part? This scam is more organized than ever.

The holidays are over, but stores big and small will be dealing with more than the memories.

That’s according to the National Retail Federation (NRF), which reported late last month that during the holiday season alone, retailers could face as much as $3.8 billion in lost revenue from fraudulent returns, an increase from $3.4 billion in 2013 and a big chunk of the estimated $10.9 billion in return fraud in 2014 as a whole.

The organization’s 2014 Return Fraud Survey [PDF], which gathered responses from loss-prevention executives at 60 retailers, shows that retailers suspect that 5.5 percent of holiday returns are fraudulent. And while technology has helped curb illegitimate returns, NRF said, there’s only so much companies can do about retail fraud, which is often suspected to be the work of crime rings.

Eliminate the Practice of Wardrobing in Your Store

Well here’s a new one to me.  The art of wardrobing.  It’s a term coined for shoppers who buy merchandise with the full intent of using it, then returning it for a full refund.  Take a read of the article as the insight is fascinating.

I was astounded to learn that “nearly two-thirds of merchants had items wardrobed in 2007, up from 56 percent the year before, the first year the National Retail Federation (NRF) started tracking the trend,” according to the article.

The term wardrobing was chosen (I’m guessing) because it stems from clothing that’s been purchased, worn and then returned.  But the article points out that wardrobing has taken on a broader meaning and is now applied to any merchandise that’s been used and then returned.

So how big is wardrobing?  The article points out that “Wardrobers want to rent the things they want or need for free, which amounts to fraud, said Richard Hollinger, a criminology professor at the University of Florida who specializes in retail theft. He said return fraud, which includes wardrobing, fake receipts, and other practices, cost retailers an estimated $10.8 billion last year, up from $9.6 billion in 2006.”

RETURN FRAUD COST 9.1 BILLION IN 2013

​Criminals trying to get refunds on stolen merchandise and customers engaged in practices like “wardrobing” cost retailers an estimated $9.1 billion in return fraud last year, according to NRF’s annual survey.

“While coverage of this issue paints return fraud as one of the less severe retail crimes, the fact of the matter is that returning used or stolen merchandise — or even using false tender to purchase items — is fraud, period,” NRF vice president for loss prevention Rich Mellor said in a release accompanying the survey. “Efforts to combat fraudulent activity are slowly starting to work, but criminals are becoming more savvy and technologically advanced in their methods.”

The dollar amount of fraud was up 2.8 percent from 2012, but the proportion of returns believed to be fraudulent (3.4 percent) remained the same. During the just-finished holiday season, fraud totaled an estimated $3.4 billion.

Fraud was experienced by virtually all retailers, with stolen merchandise involved in 95 percent of cases. Employee fraud accounted for 93 percent of incidents; 69 percent were returns of items purchased with fraudulent payment like stolen or counterfeit gift cards. Wardrobing — where customers typically purchase a dress for a party or a big-screen television for the Super Bowl and return the item after it has been used — accounted for 62 percent.

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Wardrobing & Returns

March 30, 2015 by Leave a Comment

Shark Tag DressThere is a new term in the retail dictionary. “Wardrobing” is the process where a customer purchases a piece of your merchandise, uses it one time, then returns it claiming a small flaw or just taking advantage of  your liberal return policy.

We see this especially in clothing such as expensive dresses, prom dresses, shoes and suits. But tools, electronics, beach wear and more can be a target. The problem is hardly new. However, it has always been frustrating. Not only has the retailer experienced a loss  since the merchandise is no longer new but chances are that you or your staff put a considerable amount of time into the initial sales process. Couple that with tight margins and expenses and the problem gets expensive quickly.

Add to this that word will spread. If your store is known as an easy mark for wardrobing, then this kind of shopper will flock to you like metal to a magnet.

The problem is also not just a brick and mortar store problem. In many ways it is worse for online stores. Because it is a faceless transaction, the shopper is more likely to feel comfortable about doing this.

Whether it is right/wrong or illegal, is a side issue. Wardrobing causes Retailers significant losses.

LPSI Shark Tag8  Shark Tag with Return PolicySo how do we fix the wardrobing problem that leads to your returns being higher than they should be? First look at your return policy. Have you dusted it off lately and updated it? Look at the circumstances of accepting returns. Look at the time limits. Is there a restocking fee? Is the customer responsible for shipping on certain items? Look at your competition’s return policies both in store and on-line. Maybe they have solved the problem and the wardrobers are now coming to you. If you would like, I can also be an LP sounding board (at no charge) for your return policy. Just call me, Bill Bregar, at 770-426-7593 x101.

We also offer an excellent fix for wardrobing. The “Shark Tag” by Alpha High Theft solutions basically puts an end to wardrobing. Shark tags are bright tags that mount directly to the merchandise or can be attached via a lanyard. An example could be that the Alpha Shark Tag is placed in a very obvious area such as the bust line (as a guy I would notice it!) of a prom dress. The Shark tag can be removed easily by the customer at home with a pair of ordinary scissors. Once the Shark Tag is removed, your stores policy kicks in. Without the Shark Tag attached, a return is no longer possible.

Also, Shark Tags are VERY inexpensive! If you would like a sample, please contact us.

Remember, you and your staff put a lot of time, effort and expense into your sales efforts. Do not let the thieves or even the wardrobers, rob you of your margins or even your business!

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Social Media and Employee Theft

March 30, 2015 by Leave a Comment

theft (2)There isn’t anything I enjoy more than catching an employee stealing. Whether it be through a lengthy investigation, or through an anonymous tip, it’s very satisfying to me. The idea that you employ someone, put money in their pocket and a chance to succeed, but they steal from you, eats at the pit of my stomach. I can’t stand a thief and to me, it’s even worse when it’s an employee. Throughout my career in Loss Prevention, I’ve handling thousands of employee theft cases. Most don’t really stand out to me, but there are a handful of stories that I like to share when I have the chance.

Social media has really changed the way we communicate and share information. Personally, I rarely watch the 9 O’clock news anymore. I just log into Twitter, or Facebook and see if there is anything relevant to me. No more are our personal communications private. Using social media as a communication device gives the entire world visibility to everything you say, or do. So, if you’re a thief, you should probably know this. 

Recently I was having some issues with shoes in my store. I was constantly finding less expensive brands in the more expensive boxes. I started off finding one or two a month, so I chalked it up to a shipping error from the factory. As the weeks progressed, I began to find more and more, and I quickly realized I had a potential thief. I started running the sales for the cheaper shoes and noticed that one individual had purchased every single pair that I had found. Inside those boxes were no doubt the more expensive shoes, but who was this guy? I hadn’t a clue, and without any good leads, my case went cold. Until one of my employees helped me crack the case. 

I was closing the store one Saturday night and a few hours before closing time, I started making the rounds to make sure everyone was zoning and cleaning up so we could get out at a decent time. I noticed one of my footwear employees on the computer in the manager’s office, so I started walking that way. He noticed I was heading in his direction, so he quickly left the area. A little while later, I went to check sales on that same computer and noticed there was a window still open. It was that employee’s Facebook page. 

I maximized the screen, at first not realizing it was his page. What I saw shocked and amused me all at the same time. The window that opened was his private messages. Out of curiosity, I perused a bit. There, in the open, was a long conversation between my employee and a friend of his. The employee basically taking an order for shoes. My employee described how he would put the shoes in a cheaper pair, where to find them and even what cashier to check out with. I had found my shoe culprit, in the most awesome way possible. I printed out the page and a few days later, after letting his friend buy the stolen shoes, confronted the employee. He admitted to the several thousand dollars’ worth of theft and implicated several others in the store as doing the same. In total, I lost 5 employees. To this day, he has no idea that he led me to himself, and I have no plans on telling him!

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Organized Retail Crime and the Effects on Small Business

March 30, 2015 by Leave a Comment

shoplifting7Organized Retail Crime, or ORC is something you have probably heard very little about. ORC is, by definition, the organized and planned stealing of merchandise with the expressed intent to resell in order to make a profit. Plainly, it is a group of shoplifters whose full time job is to steal from you in order to make a profit for themselves. If you think that your small business isn’t a target, or hasn’t been targeted by an ORC group, you are wrong. These are not your average shoplifter stealing for personal use. These are well organized, well trained and equipped individuals who can take a single store for thousands of dollars in mere minutes.

I recently worked an ORC case dealing with the theft of a certain product. Over a two month period of time, I had a group of 5 individuals steal this product, then immediately sell them to a pawn shop. This handful of people were able to cause a $20k loss in a very short amount of time. They had a plan, stuck to a routine and committed the theft with near surgical precision. It was well organized, and it took months to uncover. $20k might not be a big deal for a national retailer, but if this were my own store, it very well may have put me out of business. This is the case for small businesses across the country. These groups often target the smaller stores as they feel they are a softer target. 

Smaller stores may not have the security measures larger retailers do. Something as simple as CCTV may not even be installed. The store may not have security devices on commonly shoplifted items. More importantly, those smaller stores most likely do not have a Loss Prevention team, and the owners may be unwillingly to prosecute individuals caught shoplifting.  This all makes the small retailer a prime target for ORC. 

The first step you should take to prevent your store from being a target is to minimize your exposure to the risk of shoplifting. CCTV systems are not big, bulky and expensive pieces of equipment anymore. You can most definitely find a solution for your store under a few hundred bucks. Next, you should be familiar with product security. While you may not have the capital for the newest trends in EAS, a simple checkpoint system will discourage ORC, especially if you are using tags that have your store’s name, or logo on them.

Organized retail crime has gotten the attention of the law enforcement community. In fact, several states now have ORC laws on the books, which carry heavier penalties for individuals convicted of this type of theft. The only way these individuals can be brought to justice is if they are held accountable for their actions. That starts with you and is why it’s always important to prosecute a shoplifter. That guy you just caught stealing all of your razor blades could be the tipping point for a much larger operation. Just because you have a small store, doesn’t mean you can’t lose big from these groups.

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E-Commerce Fraud:What You Need to Know

March 26, 2015 by Leave a Comment

theft (13)With the digital age came different types of fraud retailers were not used to encounter in their daily operations.  Shoplifters came to the store and the loss prevention team knew the policies and procedures to follow to apprehend the shoplifter.  Now, retailers fear online fraud and debate on how to keep customers information safe.  The most prevalent fraud retailers are to be aware of is card fraud. Keeping cardholder’s information safe is a top priority for online retailers, and monitor suspicious transactions has become a top priority for them.

To learn or read more about e-commerce fraud follow the links below.

e-Commerce Fraud: The Rapidly Growing Challenge for Retail Investigations

Just as the word “e-commerce” has come to refer to a menagerie of different specialized markets, so e-commerce fraud comes in many different guises. And as the great pace of retail evolution dictates that retailers’ transaction processes are constantly changing, so the frauds change with them.

In a bid to stand on the top of the heap competitively, retailers are offering as many options to consumers as possible when it comes to ways to buy. You can place an online order at an in-store kiosk to be shipped to your house. You can place an order from your mobile device to be picked up at a local store. You don’t like the color of the new curtains you ordered through the online customer rewards program? You can return them to the nearest brick-and-mortar store to save on shipping.

There are multitudes of different ways for customers to shop in the modern omni-channel retailing world. But this proliferation of transaction processes can leave behind more and more holes that malicious actors can exploit. “You have this almost complete melding of digital and physical worlds now, and the primary challenge is keeping pace with that evolution,” said Jerett Sauer, director of loss prevention at Gap Inc. “Awareness of risk has always been a core part of any great LP program, and historically, digital space was outside that sphere of awareness; the focus was on people touching a POS or physical merchandise.

Kount and Ethoca Join Forces to Help Ecommerce Merchants Eliminate More Fraud, Accept More Orders

Kount, a leading provider of fraud detection and sales boosting technology, and Ethoca, the industry standard for collaboration-based technology solutions that help card issuers and online merchants increase transaction acceptance and stop ecommerce fraud, today announced a strategic partnership to help ecommerce merchants increase their overall acceptance levels.

Ecommerce merchants aim to strike a delicate balance: eliminating as much fraud as possible, while maximizing the acceptance of good orders. With the increasing frequency of data breaches and online security threats, many ecommerce merchants are tightening their fraud tools to stop as much fraud as possible, but that often results in too many good orders that are wrongly rejected and result in lost revenue.

Through its partnership with Ethoca, Kount now offers merchant customers worldwide an additional, complementary service with Ethoca Alerts. These alerts provide a safeguard to catch fraud that has already been confirmed between the card issuing bank and the cardholder.

Smart Card Technology Will Affect Your Fraud Prevention Strategy

With large retail chains like Target, Neiman Marcus and Michaels experiencing massive data breaches, U.S. banks and brick-and-mortar merchants face serious pressure to increase credit card security measures by implementing smart card technology.

This shift to more secure card-present transactions at physical, smart-card ready terminals will impact ecommerce sites as fraudsters are stymied at brick-and-mortar stores and turn their attentions to card-not-present (CNP) transactions online.

As smart cards become standard in the U.S., forward thinking ecommerce merchants must prepare for the coming increase in online fraud. Now is the time for software companies to ensure that their fraud prevention system is ready.

Brick-and-Mortar Merchants Face Serious Pressure

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ShopliftingTricks You Should Be Aware of For Preventing Shrinkage

March 23, 2015 by Leave a Comment

shoplifting3

Haven’t you heard in police shows on TV how you have to think like a criminal to catch a criminal?  Well, in shoplifting prevention you have to know the methods these criminals are using to be able to protect your merchandise and your employees.  There are shoplifting rings that are professional and make their living stealing.  They may target a specific store or chain of stores, but they always have a plan and different people working to steal as much as they can without getting caught.  The shoplifting prevention team in your store may not be aware of some of these “methods,” and being aware of them may be the difference between a profitable store or one that is constantly loosing money.  For more news about this topic, follow the links below.

Suspects arrested after aluminum foil used in shoplifting

SNOHOMISH — Money-making schemes are a popular topic of conversation among the criminal community. One such scheme ended in three arrests earlier this month in Snohomish. A group of suspects was accused of working in tandem, using aluminum foil to defeat anti-shoplifting devices.

The trick is widely known among heroin addicts who pilfer goods to support their habit, Police Chief John Flood said. He credited the Nov. 2 bust at the Snohomish Station Kohl’s to increased anti-shoplifting patrols and proactive store security.
Snohomish police started seeing thieves trying the foil ruse about a year ago, Flood said. The crooks wrap bits of foil around the security tags.

Dubai shoplifters’ tricks: Cut magnetic tags

Two Egyptians, who allegedly fled with garments they stole from a shop after removing the magnetic tags, returned after 45 minutes to steal more, the Dubai Criminal Court heard.

AM, 27, truck driver and HS, 28, clerk were noticed roaming around in a well-known store by a security staff.

“I noticed two Arabs roaming around in the shop and kept an eye on them. They picked up a pair of shoes and a T-shirt and one of them entered the trial room while the other waited outside. Then the man came out of the room without the shoes and the garment.

“The two then stepped out of the shop and as the security device did not beep, I thought they had left the T-shirt and the shoes in the room,” the security staff told investigators.

However, the two returned to the shop after 45 minutes and picked up a pair of jeans, a wallet and two pair of shoes.

“One of them entered the dressing room and after they stepped out of the shop, the security gate did not beep this time too. I followed them and caught them near their car while calling police. When asked about the stolen items, they replied that they are in the car,” the security man said.

Retail Profiling Lawsuits: Businesses Would Rather Lose Merchandise Than Detain Potential Shoplifters

SAN FRANCISCO (KPIX 5) — Retailers lose $45 billion dollars annually to theft, about $10 billion of that to shoplifting.

Yet the last thing stores may want to do is catch a thief.

Chris Mcgoey knows all the tricks. He’s been in the loss prevention business for almost 40 years. On an undercover tour of a big box store he showed us how shoplifters stash things and how to pick out what he calls “likely candidates”, like women with big purses in shopping carts. Or shoppers with baby carriers.

Mcgoey admits it’s profiling. “It’s not based on race, religion, sex, age, any of those, it’s really based on behavior.  But he says these days some retailers would rather lose the merchandise than detain anyone. “America is  just shaking in their boots, they are scared. If you stop someone and they haven’t stolen anything you are sued.”

Earlier this year Barneys in New York paid half a million dollars to settle accusations it was singling out minority shoppers. The state launched an investigation after 19-year-old Trayon Christian sued the store for detaining him and questioning his ability to pay for an expensive belt.

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Bartenders Beware- Employee Theft

March 15, 2015 by
If your nightclub or restaurant is experiencing inventory losses with your alcohol, chances are you have a problem with employee theft. There is a multitude of ways that your bartenders can steal from you, but there is also a multitude of ways that you can prevent employee theft behind the bar.
One of the easiest ways is to ensure your bartenders and wait staff all go through some kind of loss prevention training. This can be either in house, or contracted out through a loss prevention workshop. During the training, you and your employees will become more aware of different ways that employees have been caught stealing. This is great way to let employees know not to try it, because it is a known method- and it doesn’t work. 
It is also a chance to define exactly what constitutes theft- from the obvious stealing bottles, to free drinks, and even a matter of over pouring their shots of liquor. When your employees have a clear set of expectations, definitions and consequences, they are less likely to take the risk of stealing from you.
This is a prefect time to explain what the consequences will be for any employee caught reducing the company’s profits or inventory- intentionally or otherwise. Some offenses may only require additional training, while others will constitute termination of employment and prosecution.
For more information on Loss Prevention Seminars, Loss Prevention Training, or Loss Prevention Workshop contact us or call 1.770.426.0547 – Atlanta Georgia
Visit the Loss Prevention Systems website for more information on Retail Employee Theft and Retail Shoplifting problems and view the Retail Loss Prevention Seminars, Retail Loss Prevention Training and Retail Loss Prevention Workshop we offer to help with your Employee Theft and Shoplifting problems.

If your nightclub or restaurant is experiencing inventory losses with your alcohol, chances are you have a problem with employee theft. There is a multitude of ways that your bartenders can steal from you, but there is also a multitude of ways that you can prevent employee theft behind the bar.

One of the easiest ways is to ensure your bartenders and wait staff all go through some kind of loss prevention training. This can be either in house, or contracted out through a loss prevention workshop. During the training, you and your employees will become more aware of different ways that employees have been caught stealing. This is great way to let employees know not to try it, because it is a known method- and it doesn’t work. 

It is also a chance to define exactly what constitutes theft- from the obvious stealing bottles, to free drinks, and even a matter of over pouring their shots of liquor. When your employees have a clear set of expectations, definitions and consequences, they are less likely to take the risk of stealing from you.

This is a prefect time to explain what the consequences will be for any employee caught reducing the company’s profits or inventory- intentionally or otherwise. Some offenses may only require additional training, while others will constitute termination of employment and prosecution.

For more information on Loss Prevention Seminars, Loss Prevention Training, or Loss Prevention Workshop contact us or call 1.770.426.0547 – Atlanta Georgia

Visit the Loss Prevention Systems website for more information on Retail Employee Theft and Retail Shoplifting problems and view the Retail Loss Prevention Seminars, Retail Loss Prevention Training and Retail Loss Prevention Workshop we offer to help with your Employee Theft and Shoplifting problems.

 

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Shoplifting Apprehension that Turn Violent

March 2, 2015 by Leave a Comment

shoplifting5Over the past two years or so, I’ve managed well over 1,000 shoplifting cases. Just like any other job, it starts to become a routine. You watch for selection, intent, pass the points of sale, exit. Approach, process, and on to the next one. It’s strange that in my line of work the daily routine is based solely on someone committing a crime. Well, what happens when the apprehensions is not so routine? What should you, or your team do if a shoplifter becomes confrontational, or even physically violent?

I’ve seen several instances of shoplifters becoming physically violent in the very recent past. Member of my team, including myself, have been physically assaulted and even pepper sprayed by shoplifting suspects. I’ve even see greater acts of violence at surrounding retailers. Is that really worth a $50 item? Absolutely not. We are seeing very often that drug addicts, who are stealing to support their habit are committing these crimes. Their minds are focused on their addiction and they will do whatever is necessary to avoid capture, even if that means harming you or a member of your team. The best defense is always a good offense, and the first step in remaining safe in this climate is to analyze the risk associated with each and every shoplifting detention.

I train my teams to analyze the inherent risk of a stop on two simple factors. 1) What is the item being stolen? Is it on its own a weapon? 2) The perceived state of mind of the suspect. Does your suspect appear to be under the influence of drugs, or alcohol? If you can answer yes to both, then there’s a higher chance of the risk of violence and it may be a better idea to allow law enforcement to intervene. I stress this every single day with my team. They all know that there is nothing in that entire store that is worth jeopardizing their safety. Sometimes, though, violence may come from the most unsuspecting source, and you should know how to react during these instances.

If you find yourself in a situation when confronted at the time of apprehension with violence, you should immediately terminate the apprehension and allow the suspect to leave… with or, without the merchandise. Never should you put yourself, your team or your customer’s safety in jeopardy over store merchandise. If you’re confronted and need to defend yourself, then do so in as safe a manner as possible. Training your LP staff in a basic self-defense course is a great tool that is being more widely adopted at more retailers.

In addition to those common sense steps, your company should also have clearly written and accessible policies regarding shoplifting apprehensions and the use of force. If you are in charge of these policies, you should set a clear expectation of how store personnel should contact a shoplifter, as well as details regarding the use of force. The last thing you want is for an employee to get severely injured while trying to protect assets come back with a lawsuit claiming they were subjected to an unsafe work environment. Without clear, written policies, that could be a reality.

Criminals will continue to steal, and a percentage will no doubt become violent in some way. In the LP filed, it is an occupational hazard. With the proper training and common sense policies, you can ensure the safety of your teams. Several states are also currently looking into passing new legislation that would enhance the charge for shoplifters who assault an LP agent. Some states also have laws on the books that turn a shoplifting into a strong arm robbery under these circumstances. If these were to become a nationwide standard, we may be able to start reversing this very disturbing trend.

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Vendor/Contractor Fraud

March 2, 2015 by Leave a Comment

theft (2)I want you to sit back and think about something for a minute. Other than your employees, how many other peopled have worked in your store last month? Drawing a blank? Think about those lights that needed replacing, or the compactor that needed repair, or even the new display cases that were installed overnight a few weeks back. While you may realize it, you more than likely have a great deal of contactors coming in and out of your store on a fairly frequent basis. These contractors and vendors have access to everything and employee has and sometimes more.

Not only do you have to consider product and equipment theft, what about data or intellectual property theft? Company sales figures, or closely guarded industry secrets? A single thumb drive and a bit of know-how can get a wealth of information into the wrong hands. Thinking about all of that, you probably want to repair your own sinks from now on…

Just as with any LP process, you have to implement a strategy that allows you to identify and react to theft, all while maintain the trust of the 99.9% of your customers that are honest. A few simple policies and best practices can protect your business from vendor/contractor theft.

First, you should establish a check in procedure. Vendors, or outside contractors should have to check in with the manager and then be taken to the area of the store that requires their services. If the area is a sensitive section of the store, or requires an exterior doors to be opened for an long period, a supervisor or key employee should remain in that area. In addition, a simple package inspection policy should be adopted and all employees, and outside vendor should be made to adhere to that policy. Basically, anyone exiting the store that works for you would have any bag, or box inspected by a store manager prior to them leaving the store.

An electronics policy should also be adopted around sensitive areas of the store. Vendors, as well as employees should be barred from using an external hard drive on any store computer system. Recording devices (cellphones) should not be allowed in sales offices, or anywhere that sensitive data is stored. You should also restrict any store Wi-Fi to store management only, and for the sole purpose of conducting company business.

While it may not be an area that you closely associate with shrink and loss, vendor compliance and control can become a major contributor to lost profits in your store. By implementing a few simple steps and practices, you can sure that you are doing all you can to prevent unnecessary loses to your store and company.

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Bad Stops are Bad for Business

March 2, 2015 by Leave a Comment

theft (1)If you’ve been in the LP profession for any length of time, chances are, you know someone who has had their career ended for making a “bad stop”. If you’ve never heard that term, great news for you. This is the term given when an LP agent makes a shoplifting apprehension outside of set guidelines and detains an individual, who in fact, did not partake in any illegal activities. Sounds like something that should NEVER happen, right? Unfortunately, it does and it can spell big legal trouble for your company. If you detain an individual who has not committed a crime, they have the legal right to file a lawsuit against you, your employee and your company. I’ve personally seen more than I would like in my tenure and they usually end with a large settlement and an employee or two in the unemployment line.

How does this happen? If you have an LP program, or policies relating to shoplifting apprehensions, you may ask how does an agent get to the point where they make such a bad decision. Just with any other job, no one is perfect. As a manager, or business owner, you need to have very strict rules and guidelines that are to be followed in regards to shoplifting apprehensions in order to protect not only the safety of your employees, but the very business you are running. Looking back at the incidents that I’ve personally dealt with, one common theme always stands out. An employee who will try to bend the rules as much as possible. When you develop and maintain adequate policies, you have to enforce them. Letting something slip by won’t do you any good. That employee does not have your company’s best interests in mind, and in your position, you have to make sure that your polices are followed to the letter.

One case that stands out happened a few years ago. One of my top performing agents saw a customer place something in her purse and walk out the store. He didn’t see exactly what the item was, but still made the apprehension. Once in the security office, he realized she had placed a shirt in her purse that she entered the store with. The customer had brought the item to compare colors to a new item she wanted to purchase. Understandably so, the customer was highly upset and sought legal action. After all was settled, my company had to pay a substantial settlement to keep the matter out of court and I had to release one of the best agents that ever had worked for me.

During the termination conversation, I asked him why he made the stop without knowing exactly what was concealed. His response was that he had done it several times in the past, and he was normally right. This was the one time he was wrong, and it cost him and my company in a big way. Due to that incident, we implemented more vigorous training programs and did a better job of documenting training with all LP agents in order to prove, it we needed, that all LP agents were trained according to a set policy and that anything done outside of that was the result of poor performance.

I would encourage anyone with a small business, or managers of small companies to adopt and implement a written policy regarding shoplifting apprehensions. If your store doesn’t have an LP department that has agents in store, your policies should state that only a salaried manager may initiate a shoplifting apprehension and only before going through some type of standardized training. This will protect your store not only from shoplifters, but it will go a very long way in keeping innocent customers from being detained by an ill-trained, or poor performing associate.

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