Is Your Store Equipped To Handle Shoppers and Shoplifters?

December 1, 2014 by Leave a Comment

shoplifting6Loss prevention personnel across the country are busy this holiday season.  Every year, shoplifters take advantage of this time of year to steal millions of dollars in stolen merchandise in the United States, making the retailer to lose profits and consumers like you and me to pay for the stolen goods by paying higher prices.  As a society, the loss of sales tax shoplifters take from communities are harmful to everyone. Read more by following the links below.

Tough penalties for shoplifting

Question: Is shoplifting a serious crime?

Answer: Yes. Every year, during the holiday season, shoplifting becomes a more common occurrence. In Louisiana, shoplifting is considered theft and does not require the item to be removed from the store, as explained by the statute itself.

According to LA R.S. 14:67.10, Theft of goods is the misappropriation or taking of anything of value which is held for sale by a merchant, either without the consent of the merchant to the misappropriation or taking, or by means of fraudulent conduct, practices, or representations. Intent to deprive the merchant permanently of whatever may be the subject of the misappropriation or taking is essential and may be inferred when a person:

•Intentionally conceals, on his person or otherwise, goods held for sale.

•Alters or transfers any price marking reflecting the actual retail price of the goods.

•Transfers goods from one container or package to another or places goods in any container, package, or wrapping in a manner to avoid detection.

•Willfully causes the cash register or other sales recording device to reflect less than the actual retail price of the goods.

•Removes any price marking with the intent to deceive the merchant as to the actual retail price of the goods.

How a Master Shoplifter Stole Thousands of Dollars’ Worth of Merchandise

As long as there have been shops, there have been shoplifters. Some are the grab-and-go types, others work in orchestrated teams, but few can compare to Michael Pollara.

Pollara is a Shakespeare of shoplifting, a maestro in the criminal art.

The 46-year-old has strolled out of hundreds of stores with at least $1 million dollars’ worth of merchandise over the course of his criminal career, according to Florida authorities. Easter Island, China, Africa—Pollara claims to have traveled around the world 25 times, but he says he paid for it all with travel points, not cash from stolen goods.

Pollara would hit toy stores, pharmaceutical stores, department stores, shopping mall specialty stores, just to name a few, according to police. He admitted to police that he worked with many “fences” — a name for criminals who traffic stolen goods, but he also sold some of what he stole on eBay, and he had shoplifting down to a science.

“There’s only five methods,” he said. “Either it’s on you, either, if you’re a female, it’s in the purse, either it’s in a bag or it’s in a shopping cart or it’s in a box.”

Pollara’s favorite shoplifting trick was to empty a box of its contents in a store and then refill the box with many expensive items. He would then purchase the box without the attendants realizing he was actually walking out with stolen merchandise inside the original box.

‘Shakespeare of Shoplifting’ Depicts His Many Retail Store Heists‘

This is a video link.  Follow it by clicking the link above.

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Negative On Hands

December 1, 2014 by Leave a Comment

shoplifting2When you are conducting perpetual inventories, you are constantly assessing your stock levels. By maintaining accurate stock levels, you are ensuring your customers will have access to the merchandise they are looking for. This creates consistent customer service and maximizes your store’s sales potential. Having an accurate on hand inventory also helps you to reduce your cost of goods by eliminating erroneous inventory orders, as well as identifies potential theft issues more readily.

To have an accurate on hand inventory, you need to have a system in place that captures your inventory movement at the SKU level. This system should recognize any time an item comes in or goes out of your store. This should include receipt of product from the vendor, sales, customer returns, returns to vendors, and miscellaneous usage like damages or store use. You should also have a way to manually make inventory adjustments through processes like cycle counts or inventory replenishment audits.

By maintaining these counts and processes, you should be able to look at any given product and know exactly how many of this item you have. This helps you prepare for sales and special promotions, or to satisfy a larger than normal quantity purchase by a customer. Cycle counts are an invaluable tool in ensuring these counts are up to date and accurate.

A cycle count is a manual count done by a store employee to determine if what the store’s computer system says you should have on hand matches with what you actually have on hand. For example, you are preparing an end cap to be filled with “Item A” for an upcoming sale this weekend. Your on hand inventory says you should have 20 of the item, so you go and look to find all 20 pieces. After searching the sales floor, you discover that you can only find 15 pieces. So you take those 15 to the end cap and enter a cycle count adjustment into the computer system to subtract the missing 5 pieces. Your computer now says that you only have 15 pieces, and you have a shortage of five pieces.

After the weekend is over, all of “Item A” was sold. Your inventory tracking system shows that you have -5 on hand. Negative 5? That indicates that you sold more than what you physically had on hand. Hmm. Something is very clearly off.

One very likely possibility is that when the employee was looking to fill the end cap, they did not look in the back stock room to see if there was any merchandise there. During the weekend, another employee found the missing 5 pieces and restocked the end cap for the sale. Because the employee had cycle counted and adjusted the items out of the inventory, a negative was created when the “missing” five pieces were sold.

This is one example of why it is important to maintain an accurate inventory, even when a manual adjustment is made. When the employee made the adjustment, there was the potential to accidentally order more product than what was needed. If the computer system thought that there was less than what you actually had, an order could have been generated to get the stock levels back to where your store should be. Because the product was physically still in the store, you could have been left with extra product that you didn’t need.

Having a negative on hand of an item means that a recount should be made quickly to determine what the error was and have it fixed. Adjusting your inventory back up to the actual stock levels will not create an overage.

This is not extra product that you didn’t have before. Think of it like loosing a five-dollar bill and not knowing where it went. Then the next winter, you pull out your coat, reach into the pocket and find a five-dollar bill. That money did not magically appear. It was your money that you misplaced and later found.

Fixing your negative on hands does not add extra to your inventory, or your bottom line. It fixes your inventory where a shortage was previously created in error.

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Prevent Shoplifting During This Holiday Season

November 21, 2014 by Leave a Comment

shoplifting2The security of your retail store during this holiday season is an important part of your business. Shoplifting prevention and employee theft are more critical during this time of year, and having your store prepared for this can be the difference between profits and losses. To read more about this follow the links below.

5 Quick and Low-Tech Tips To Prevent Shoplifting in Your Retail Store

As a small business retailer, it’s not always easy to just throw money at problems like shoplifting and take advantage of all the technology that big box retailers may be privy to. Whether it’s cameras, door scanners, or facial-recognition software, sometimes their big-ticket cost just doesn’t fit with your small business security budget.

But when you recognize facts like shoplifting costing retailers upwards of $13 billion each year, it’s important to identify it as a problem that needs to be dealt with.

So, what’s a boutique owner to do? In this post, I’ll be looking at cost-effective and low-tech tactics that you can start implementing right away.

Let’s dive in.

1. Keep Your Store Organized and Products Well-Placed

How easy should it be to identify whether something has gone “missing” from your store? Empty space on your shelves should be enough of a visual cue to signal something has gone wrong.

Holiday Shopping: More Shoppers, More Theft — Prepare Your Business

The holiday season can be a stressful time for most people, not to mention retailers. With the seasonal shopping season starting earlier and earlier each year, many small businesses are scrambling to order inventory, ensure their shelves are stocked, all the while decorating their storefront in a way that will entice customers to come in and shop local.

While some may complain about the commercialization of the holiday season, there is proof in the “figgy pudding.” According to the National Retail Federation, holiday sales represent approximately 19.2 percent of the retail industry’s annual sales of $3.2 trillion. And that’s not just for the big box stores and e-commerce giants, the upcoming holiday season is extremely important for small business owners. It’s the biggest revenue driver of the year, and can keep a business afloat or sink it. However, the increase in potential shoppers, brings an increase in potential theft. Seasonal shoplifting can be detrimental for small businesses owners, who are trying keep their doors open for another year.

Opiate epidemic

The message, delivered Thursday night to a standing-room-only crowd at the Wood County Educational Service Center, was clear: the opiate epidemic in Ohio, and Wood County, is a community problem.

And the problem must be solved by a community-wide effort.

The Opiate Epidemic Town Hall meeting, presented by the Wood County Opiate Task Force, featured a panel of experts on the subject from a variety of fields.

The issue of opiate addiction has ramped up in Wood County, and nationwide, in recent years. In the U.S., someone dies from an opiate-related overdose every 15 minutes. Some addicts begin with an addiction to prescription painkillers like Oxycontin and Vicodin, obtained legally or illegally, and then move on to heroin – which has become cheaper and easier to obtain.

Heidi Riggs, of the Ohio Attorney General’s Heroin Unit, shared the story of her daughter, Marin, who died in 2012 at age 20 of a heroin overdose. Marin, despite a variety of gifts, dealt with a self-esteem problem that led to her addiction.

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Gambling and Embezzlement – It’s That Time of Year

November 21, 2014 by Leave a Comment

theft (2)Anyone with a business knows the holidays bring a distinctive set of challenges. For many owners one of the biggest is the increased risk of loss and fraud through consumer theft. Other owners are relieved that they aren’t in those kinds of businesses and believe that they don’t need to “worry about all that stuff”. But, they forget about or ignore employee theft.

All businesses are subjected to the increased possibility of theft around this time of year. The holidays are exactly the time to monitor employees and financials for signs of embezzlement. There are a few reasons why incidents of embezzlement are more likely to start or increase now. One of them, that’s regularly overlooked, is gambling addiction.

The Marquet Report on Embezzlement is the culmination of a 5 year study which looked into employee misappropriation. It found that gambling addiction is one of the top 2 reasons people embezzle. Therefore, it’s important for an employer to be aware of this issue and to know what to look for, especially now.

For most people increased stress is a given in the months of November and December. Gambling addicts respond to stress by gambling more and when they gamble more they lose more. They then gamble more to try to cover their losses, get back to even, or hit the big score. This leads to more losing and the cycle continuing. Inevitably, they run out of money and accumulate debt they can’t repay.

Because of the season money irregularities can become more pronounced in their domestic situation, triggering more stress, lies and gambling. Gambling addicts will go to drastic measures to cover up their addiction. Now, feeling more pressure, they may embezzle for the first time or steal larger amounts.

But, this doesn’t happen in a vacuum, there’re always signs along the way that something is wrong. Some of the signs to look for include the following.

  • Giving flimsy excuses or lying about absences during the day. This can be more pronounced in areas where there’s a gambling venue.
  • Inappropriately defensive or dishonest when talking about spending habits or income.
  • Asking for advances on pay and/or frequently borrowing money from co-workers.
  • Excessively talking about and showing interest in gambling games, venues, beating the system, odds, etc.
  • Suspiciously guarded and controlling of the company’s financial records.
  • Taking financial work home, even though there’s time to do it during the business day.
  • Insisting on being in charge of bills, invoices, payments, receivables, dealing with vendors, etc.

Embezzlement can emotionally and financially devastate an organization. At best it‘s a violation of trust and at worst it can cause a business to go bankrupt. Nobody likes to think about or have trouble this time of the year, but a good manger doesn’t ignore problems no matter what the season.

Nicole Abbott – writer, educator and psycho-therapist

 

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What Makes You Vulnerable? – Shoplifting

November 20, 2014 by
Shoplifting happens to the best of us. No matter how many protections we place in and around our store, shoplifting is going to happen and there is nothing we can do about it… At least that’s how some business owners seem to think.
The reality is that most shoplifting can be prevented. Some of them might be easy fixes, and some of them might require a more complex system to keep the shrink losses at bay. 
The difference between the two thought processes is in the amount of loss prevention training you have. The more training and education you have, the better your chances of reducing your overall shrink losses.
The key is in knowing what your specific store vulnerabilities are and how they happen. Maybe you have inattentive employees on the weekends. Perhaps your high theft merchandise would benefit from being placed at the front of the store where employees can watch it better. Can you use EAS and other retail anti theft devices to keep your desirable products on the sales floor for customers, but deterring theft at the same time?
Loss prevention training isn’t just about how to apprehend a shoplifter. It is about identifying your store’s vulnerable areas and finding plausible, financially sound, and effective solutions for them. 
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.

Shoplifting happens to the best of us. No matter how many protections we place in and around our store, shoplifting is going to happen and there is nothing we can do about it… At least that’s how some business owners seem to think.

The reality is that most shoplifting can be prevented. Some of them might be easy fixes, and some of them might require a more complex system to keep the shrink losses at bay.

The difference between the two thought processes is in the amount of loss prevention training you have. The more training and education you have, the better your chances of reducing your overall shrink losses.

The key is in knowing what your specific store vulnerabilities are and how they happen. Maybe you have inattentive employees on the weekends. Perhaps your high theft merchandise would benefit from being placed at the front of the store where employees can watch it better. Can you use EAS and other retail anti theft devices to keep your desirable products on the sales floor for customers, but deterring theft at the same time?

Loss prevention training isn’t just about how to apprehend a shoplifter. It is about identifying your store’s vulnerable areas and finding plausible, financially sound, and effective solutions for them.

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 News

November 18, 2014 by Leave a Comment

shoplifting5These are some of the articles and news concerning shoplifting around the country. As the busiest shopping season begins, retailer stores and their management are more vigilant about shoplifters and how to deter them from entering their store and walking away with merchandise. To read more about shoplifting, follow the links below.

Burglar Returns After Veterans Day Break-In of Paratrooper’s Home. This Time The Soldier Is Waiting.

After a man recently broke into his house on the night of Veterans Day, Andrew Myers, a paratrooper from the 82nd Airborne, decided he would not become a victim again.

Meyers posted his story, along with video, to LiveLeak:

“‘I installed motion sensors and door chimes immediately and sat on edge… it only took 2 days for him to return but this time after finding the bottom door locked, he just made his way around my house to attempt to gain entry upstairs (where my GF and dog are).

Once I told him he wasn’t coming in, and wasn’t leaving till he talked to the police he struggled to get away and tried a huge haymaker on the porch and ate an uppercut for his troubles.(off camera)

He was just about “out” on the porch but I realized I wanted anything that happened to be on camera so I drug him down the stairs. The rest can be seen on camera…’”

Meyers also set his clip to music and posted it to his YouTube account Sunday. Fox and Friends then showed the video this morning and it’s gone viral as a result.

Shoplifting costs nothing……or does it?

(NBC) – A new study finds shoplifting costs US consumers hundreds of dollars a year.

According to the business website Checkpoint, shoplifting, along with employee theft, costs US businesses $42 billion per year.

That turns out to an annual average of about $403 per US household.

The most frequently stolen items include clothing, mobile phone accessories, power tools, wine and make-up products.

Woman Leaves Baby Behind Fleeing From Shoplifting Accusation

A Lexington woman is behind bars after police say she left her nine-month-old child in the lobby of a Walmart after she was confronted about shoplifting.

The arrest citation says 30-year-old Samantha Lyons went to the Walmart in Hamburg on Tuesday afternoon with her nine-month-old and the child’s father, and that surveillance video caught her putting store items inside a bag.

The citation, which also refers to Lyons as Samantha Baker, says as she tried to leave, she was confronted by loss prevention and that is when Lyons, along with the child’s father, ran, leaving the baby behind.

It’s unclear what happened after she fled, but she was arrested back at the Walmart around three hours later.

Documents say Lyons admitted to stealing the items from Walmart.

Lyons is charged with theft by unlawlful taking and abandoning a minor. She is expected to be in court Wednesday.

Police have not released the father’s name. It’s not clear if he faces any charges.

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What Is Your Return Policy This Holiday Season?

November 7, 2014 by Leave a Comment

theft (13)Many stores around the country accept returns without a receipt. Some have date restrictions, or a credit transaction look up if you do not have the receipt, but others let you exchange or return merchandise with only an id. Wal-marts’ policy time restriction is 90 days with some exceptions with electronics, otherwise you can get a cash refund for purchases under $25 dollars or store credit for purchases of over $25. Target, office Depot, Lowes, Kohl’s and other stores do not require a receipt, although they can look up the transaction with your membership or credit card transaction. Making your policy clear on purchases this holiday season can save your business money and avoid the confusion with your employees about the return policy of the store. For more information about shoplifting, follow the links below.

Shoplifting suspect arrested after running out of gas during chase

The Atlanta Journal-Constitution

Snellville police nabbed a suspected serial shoplifter earlier this week after a harrowing chase through five jurisdictions that ended when the suspect ran out of gas.

Carl Ashley Thompson, 30, of Ball Ground, was taken into custody Tuesday. He faces a slew of traffic violation charges, along with three counts of felony theft by shoplifting, fleeing or attempting to elude a police officer, criminal trespass and for possessing drug-related objects.

No one was injured during the chase, which began when an officer tried to stop Thompson around 3:40 a.m. for speeding – going 51 mph in a 35 mph zone. The officer also noticed that the car had no license plate.

Shoplifting leads to drug discovery

COOKEVILLE — A reported shoplifting led to more trouble for one Cookeville woman.

According to a police report filed by Cookeville Police Officer Kenneth Frye, it began with a reported shoplifting around 3 p.m. Friday at Kohl’s department store on Jackson. A female was reported to have left the location without paying for some items.

Dispatch gave him a description of the vehicle and the tag, which he located traveling south on South Willow Avenue. He stopped the vehicle in the area of 851 S. Willow Ave. and came into contact with the driver, identified as Fawn Price of Top Road, Cookeville.

“During a consent search of her person, I located a black “straw” with white residue,” Frye’s report states. “Price told me that she used it to ‘snort’ Hydrocodone.”

Addicts target Wal-Mart in shoplifting scheme

INDIANAPOLIS – Feeding a heroin addiction often means addicts resort to stealing – from friends, family and businesses.

For former heroin addict Ashley Milburn, it meant a shoplifting scheme involving a group of women earning hundreds of dollars a day illicitly by scamming Wal-Mart.

Milburn, now serving time behind bars, spoke to Call 6 Investigator Rafael Sanchez about how she used to steal from the big box retailer – and how she’s sure her fellow heroin users are still going about it.

The key to the scam: Wal-Mart’s no-receipt policy for returns.

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Tis The Season To Be……Robbed

November 6, 2014 by Leave a Comment

shoplifting1It is getting darker outside earlier. The season brings more than that to us. The pressure on everyone including the bad guy’s increases. This coupled with drug addictions, personal problems and more will make retailers a tempting target. After all you tend to have a lot of cash around or at least the perception of more cash in the drawer is there.

We really don’t care why it happens the real concern is how do we keep it from happening to us? You can reduce your risks with a few simple, cost effective and for the most part common sense measures:

  • Drain your Cash Drawer – Your drawers start out the day with a set amount usually in the neighborhood of $100+/- in cash. Set up a schedule and make it someone’s responsibility to drain the drawer of cash every few hours. An easy way to do this is to pull out the all the large bills such as $50’s and $100’s. Leave only enough of the others to make change. DO NOT think that by hiding them under the cash drawer that no one will notice. Everyone knows this. Pull the money out and seal it in an envelope. You do not even need to count it at this point. Put the sealed envelope in the safe. If you have more than one POS then write the POS number on the envelope. An even easier way to do this is to invest into a simple drop safe that costs around $100 (we can point you to a great vendor for this). You can install a drop safe yourself. It simply bolts under the POS in the Cash/Wrap. They have a slot that you can drop envelopes or just loose bills into. I think the best ones are the ones that use a padlock. Inexpensive and easy to keep up with. Then at the end of shift you simply pull that money out and take it to the back with the till. WHY are we doing this you ask? Most robbers come in and look at your drawer before they hit you that day or another. Having a drawer full of succulent cash is like waving tax money in front of a politician. They simply can resist.
  • Lighting – Get your lighting both inside and outside up to speed. Replace burned out bulbs and ballasts. If your landlord is responsible for any of this then now is a good time to send him an email (finish this article first though as I have a few other tidbits for you). Dark attracts the bad guys.
  • Observe and report – If you see someone suspicious then ask the police to drop by. Speaking of that, do you have a relationship with your local Police Department or are you just another store in the crowd? Granted this is sometimes easier in smaller communities. But large departments will also respond with the right incentives. Make it known that you like their presence there. Coffee and a warm place to write a report helps. Call and ask for a supervisor to drop by (non-emergency). Ask the Sargent what is going on in your area. What suggestions does he or she have for you? Their opinion counts to you, let them know that. Can they have an officer come by as your folks are closing to make sure that everyone is safe? Being a former Police Officer I know that the Police would rather do that then deal with a robbery.
  •   Deposits – I strongly recommend that you do not take deposits to the Bank at night or closing. All the bad guys need to do is see who is showing up at the night deposit. Again it is like candy to a baby. Instead lock your deposit in your safe and take it late morning or lunch time. That is a good reason for you to get away for a few minutes anyway. Instead of that frozen meal in the microwave you can actually recharge your brain battery for a few minutes. Speaking of deposits. Conceal them by putting the deposit envelope or bag into something else. Don’t be obvious.
  • Discuss with Staff – Your people need to be in the loop. Many people treat this as something that will never happen to them. And of course we hope it won’t. But although a nice thought that is like expecting that world peace will really happen someday. I have a list of simple discussion points that I will be happy to send you free of charge, obligation…. just send me an email or call. I also see Managers and Owners that think they will scare their employees by discussing it up front. People including that 18 year old first time employee are tougher than you think. Remember, this is really about their safety not the money.
  • Give Freely! – Last but not least, if someone presents you with the business end of a gun, knife, hand grenade, tank…. (You get the picture) then give them the money and get them on their way as soon as you can. Your duties are the protection of yourself, employees and customers. The money is a small mater when a robbery occurs. As soon as they leave lock the doors, THEN call the police. Robbers have been known to come back when they did not think that they got their fair share of your profits. Do not open the door for anyone except a uniformed police officer. You need to protect and keep your employees and customers there. This will also help to insure that these witnesses are there when to police are on site.

Again contact us if we can help.

Let’s have a profitable and safe holiday selling season!

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Court Room Drama

November 6, 2014 by Leave a Comment

law-3If you have never been in court before, it can be a very eye opening experience. There are similarities between TV courtroom proceedings and real life, but the overall experience is very different. If you are planning on prosecuting shoplifters or employees for theft, it is important to understand this step in the process.

Working within the court system is essential to ensure the employee or shoplifter has an official record of their wrongdoing. This criminal prosecution provides concrete evidence against an employee or shoplifter of their alleged acts. This record makes it easier for potential employers to understand an applicants past history, an indicator of their future reliability.

Here is how the process generally works. At the time of a shoplifter’s apprehension, or the completion of an employee theft interview, local law enforcement will be called in. This could be the city police, county police, or even the local sheriff’s department based on your individual store’s location and jurisdiction. If you have multiple locations, understand the jurisdiction might be different for each one. Specifically knowing which department to call ahead of time will simplify the process during an actual incident.

The responding law enforcement will ask a few questions from you. They will take a statement from both sides, and usually ask to see any video available. This is the initial opportunity to present your evidence against the suspect. This is not a time to hold back actual evidence you may have, or give unsubstantiated opinions as evidence.

Law enforcement will take the suspect into custody (if applicable) and file a police report. You may need to go down to their station to fill out additional paperwork depending upon the local protocol. From there papers will be filed with the court system. You should receive a subpoena stating the time, date and place of the court case for your suspect. Understand that it might take a few weeks to several months for this to happen. It is all based upon your local court’s current caseload.

During this downtime, you should ensure that you have created a case report with statements explaining each step of the shoplifting incident, any statements made by the suspect, any paper evidence, a detailed listing of merchandise stolen (size, style, UPC or SKU, color, quantity) photos taken of the suspect, their ID or the merchandise, employee ID, and any video evidence. This case report needs to be kept in a private, locked file cabinet or other place that eliminates contact or access by other employees. Any deviation may allow the defendant’s attorney to question the integrity of the chain of evidence and speculate that it has been tampered with.

When you are set to go to court on the specific time and date given, make sure you show up early and bring your case report with you. Law enforcement may have requested copies at the time of the arrest, but it is better for you to not rely on law enforcement to bring it with them. They have so many cases on a daily basis; they may not remember months later what they were given. It is your responsibility to prove the suspect guilty based upon your evidence. If you show up with nothing, the suspect may be found innocent. Bring the report and file with you.

When you show up, find the prosecuting attorney. They are the ones presenting the case on your behalf. Show them your file, your video, and answer their questions. They are not trying to pick your case apart; they just need to have a full understanding of what they can present to the defense attorney and the judge. Arriving early allows you enough time to best prepare your case with the attorney and have better end results.

While you cannot dictate that a suspect is charged with a specific crime (felony theft vs. misdemeanor theft) you are allowed to let the attorney know that the suspect is not to return to any of your store locations. If so, they will be charged with trespassing.

At this point the attorney will confer with the defense attorney. They will try to work out a plea bargain, which the suspect hopefully will take. They may not stick with the original charges, but a plea bargain will save you countless hours and trips back and forth to the courthouse for an actual trial.

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What You Should Be Auditing

November 5, 2014 by Leave a Comment

theft (11)When you work for yourself, you often spend a lot of time inventing the wheel. There is no corporate policy already in place for your stores to adapt. No one is there looking over your shoulder and telling you what records to keep and for how long. Sure, you probably have an accountant somewhere helping you with some record retention requirements. There are other IRS and tax records that you keep for a certain period of time. Overall, it is up to you to make these decisions and have a standard in place.

One area that can be difficult to make your own standard is having an internal audit. While it is a chore to come up with the questions and audit points, the payoff of having a better standardization and in store accountability will far exceed the trouble you put into to establish an audit.

One of the best places to start is by researching Sarbanes- Oxley. The Sarbanes- Oxley act of 2002 is a set of legal requirements that all organizations, regardless of size, must comply with. It basically regulates financial practices, after several companies were found guilty of falsifying their own financial records. The company’s biggest fallout was that they ended up devastating thousands of their own employees financially.

The ultimate point of the act is that companies are required to provide accurate and truthful information as to the company’s financial status. Over inflating sales, inventory, amongst other practices, to give a deceitful impression of a company’s success is now illegal. Companies must retain records of their financial status to ensure accuracy at all levels.

The easiest way to do this is to perform self-audits in key areas. These audits should be done daily, weekly, monthly and yearly, depending upon the task. Hiring a consultant can provide you with the legal specifics to keep your company on the up and up. Understanding the basics ahead of time can help you decrease those consultation costs, as you will already have some practices in place.

The first place to start is with your inventory. Understanding a cradle to grave approach to your product will not only help you with accuracy in your auditing, but keeping a closer eye on your product will help you decrease your shrink over the long term. Your starting point is with your receipt of goods.

Each shipment of inventory you receive should be documented and a bill of lading retained and filed by month. On each BOL should be the signature of who received the items, the date and time received, and a check mark or tally of what was received- either by piece, box or pallet.

Next, you should maintain listings and reports of items that are taken out of your inventory for a specific reason. If they are damaged and thrown out, sent back to a vendor for credit, used in the store, stolen, etc. There needs to be a paper trail attached to where these items have gone and why. A signature, or employee ID or who reallocated the products disposition should be included with these document (also retained and filed by month).

If you are still using paper sales receipts, including paper journal tapes, those records need to be filed by date, and then month. This is your listing of what merchandise has left your stores and is your proof that these sales actually happened and were not fraudulently contrived. If you have an electronic sales tracking system, you still need to have paper documentation of these sales retained somewhere in case of a computer glitch, etc.

Finally, all returns must be retained and spot-checked for accuracy. Since returns are another way for inventory to come back into the store, it is an important process to verify that these returns are accurate. Look for multiple transactions of the same item, or significantly larger dollar transactions. These are the returns that are most likely to have been done in error (over inflating your actual inventory) or can point to an employee’s dishonest activities.

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