Give Away The Answers- Employee Theft

September 25, 2014 by
I was having a conversation with a peer of mine that runs his own business. He was telling me that he was not convinced that he should do employee theft training with his employees. He felt that if he did formalized loss prevention training on employee theft, he would be giving away the answers and ways for his employees to turn around and steal from him.
I had to stop and think about it for a minute. Yes. It is possible that an employee might get ideas on how to defraud his employer after going through that sort of loss prevention workshop. What my peer didn’t think about is that the employee was probably already toying with the idea of theft, or had already tested the waters in their own way.
The flip side is that when you take your team of employees to a loss prevention workshop, you are actually showing them why they should not steal. These seminars are designed to create more eyes that will be aware of what is going on at the store level.
If an employee is thinking about stealing, they know that there are more people aware of methods and red flags- making it more likely to be caught. By sending your employees to training also sends a message that you are raising awareness of all facets of your business and that employee theft will not be tolerated.
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.

I was having a conversation with a peer of mine that runs his own business. He was telling me that he was not convinced that he should do employee theft training with his employees. He felt that if he did formalized loss prevention training on employee theft, he would be giving away the answers and ways for his employees to turn around and steal from him.

I had to stop and think about it for a minute. Yes. It is possible that an employee might get ideas on how to defraud his employer after going through that sort of loss prevention workshop. What my peer didn’t think about is that the employee was probably already toying with the idea of theft, or had already tested the waters in their own way.

The flip side is that when you take your team of employees to a loss prevention workshop, you are actually showing them why they should not steal. These seminars are designed to create more eyes that will be aware of what is going on at the store level.

If an employee is thinking about stealing, they know that there are more people aware of methods and red flags- making it more likely to be caught. By sending your employees to training also sends a message that you are raising awareness of all facets of your business and that employee theft will not be tolerated.

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 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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Loss Prevention and Solutions

September 23, 2014 by Leave a Comment

shoplifting1The Holiday season does not start for some weeks yet, but if you are in the retail industry preparations for the busiest time of year begins months in advance. The retail industry loses billions a year due to shoplifting and employee theft making prevention all the more significant and solutions to decrease shrinkage pivotal in the profits and loss of a store. Read more about loss prevention by following the links below

Taking the Bite Out of Organized Retail Crime   

“Store robbers…always work in gangs of two, three, or four in number, in order that their operations may be quickly conducted… The first thing to be done upon locating in a large town or city is to select the place upon which they design to work… When they finally decide upon a store to be robbed, they are fully posted with regard to everything that pertains to the business…”

A hundred and fifteen years ago, Allan Pinkerton, America’s “first detective” and founder of the Pinkerton National Detective Agency, penned those words in his book “Thirty Years a Detective: A Thorough and Comprehensive Exposé of Criminal Practice of All Grades and Classes”. In 2014, the tenth year that the National Retail Federation (NRF) conducted its Organized Retail Crime Survey, ORC has remained a staple of criminal enterprise in the United States, accounting for known losses in the neighborhood of $30 billion annually.

The Tactics of ORC

Organized Retail Crime (ORC) has been the bane of retailers for years and was first addressed by merchants in the late 1980s. Since then, ORC has grown into a yearly multi-billion dollar business that not only injures the retailer, but also the consumer, who has to pay higher prices. There is another loss — the one to communities in the form of lost tax revenue, which has a direct effect on state and local governments and school budgets causing a direct impact on the quality of life.

Since the early days, when ORC was first recognized, retailers have taken great steps to combat the crime. The most important step was the education of lawmakers who have passed laws across the nation combating Organized Retail Crime. Many of today’s retail trade organizations such as the National Retail Federation (NRF), the Food Marking Institute (FMI), Retail Industry Leaders Association (RILA), along with many other organizations have taken up the fight.

BearCom Informs Retailers on How to Use Two-Way Radios for Loss Prevention

BearCom, a nationwide provider of wireless communications equipment and solutions, offered suggestions on how two-way radios can help reduce loss during the busy holiday shopping season and all year round.

Loss, also called shrink, consists of shoplifting, employee or supply fraud, organized retail crime and administrative errors. According to Marianne Wilson at Chain Storage Age, “Growing shrink concerns have put loss prevention high on the agenda of retailers.”

“More than $100 billion worth of merchandise is stolen from retailers every year. That’s about 1.5 percent of retail sales, just in the United States,” said Hugh Johnston, Product & Purchasing Manager at BearCom. “The most effective way to prevent loss is to have a vigilant and visible staff in constant communication.”

Johnston gives some suggestions for basic shrink prevention that are especially important during the hectic holiday retail season:

Inconspicuous communications – When an employee needs to contact a manager or security personnel, they should do it in a way that doesn’t bring attention to the situation. Two-way radios with earpiece accessories enable quiet and discreet communication.

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Shoplifting News

September 18, 2014 by Leave a Comment

shoplifting2The people and the methods shoplifters use nowadays should not come as a surprise for any of us. From the elderly to the handicapped shoplifting is a crime that seems to have no age nor race attached to it. For a retail store, prevention seems the solution that makes sense, and can keep the store from losing its profits.

To read more about this follow the links below.

Shoplifting Suspect Shirley Mason Used Wheelchair Cart For Getaway: Cops

FRUITPORT TOWNSHIP, Mich. (AP) — Police in Michigan say they arrested a shoplifting suspect following her slow-speed getaway in a $1,200 motorized wheelchair shopping cart taken from a Wal-Mart.

The Muskegon Chronicle (http://bit.ly/1wgjeQT ) says police located 46-year-old Shirley Mason about 2 miles away, riding the cart with $600 in clothing.

A customer called police Monday night to report someone riding a shopping cart from the lot at the store in Muskegon County’s Fruitport Township.

Police say Mason told them she couldn’t find anyone to pick her up from the store and took the wheelchair cart “because she didn’t feel like walking.”

Authorities say Mason told officers she planned to sell the clothing.

Mason is charged with organized retail crime and has a probable cause hearing Sept. 23.

Mason doesn’t have a listed phone number.

Police: Mom and DAughter caught shoplifting

HOOSICK — State Police say a mother and her 23-year-old daughter were caught shoplifting from a supermarket. Vicki Meyers, 43, and her daughter Toni were allegedly seen by employees taking items at a TOPS supermarket and hiding them in their purses. According to authorities, they left the store with more than $70.00 worth of merchandise. The pair have both been charged with petit larceny.

Teacher accused of shoplifting using child

Wesley Chapel, Florida — A Pasco County teacher has resigned from her position, accused of shoplifting and using her young daughter to hide the stolen electronics.

Friday, parents are in shock that a trusted middle school science teacher sits behind bars.

Investigators say Amanda Hammon took her three-year-old on the shoplifting spree and had the child carry her backpack stuffed with the stolen goods from a Walmart in Wesley Chapel.

Hammon was a teacher at John Long Middle School in Wesley Chapel, and now, she’s a Pasco inmate without a job.

Investigators say this wasn’t just a one-time crime. In the past week, the middle school science teacher is accused of stealing electronics from Walmart four times with her daughter in tow.

Arrest records show Hammon confessed she’s been shoplifting to support her drug habit.

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Shrinking Margins? Internal Controls Can Help

September 18, 2014 by Leave a Comment

shoplifting4Occupational fraud is a problem for most businesses, both large and small. Fraud is committed when an employee, through a deliberate and usually illegal process, misuses or misappropriates the resources or assets of a business for their own benefit. It’s willful and deliberate worker misconduct, which causes the business to suffer financially due to theft of time, services, inventory or money.

This type of fraud is such a widespread and injurious problem that approximately 1/3 of small businesses close due to it, mostly because it goes undetected. This is a regrettable situation, because it’s largely preventable if properly monitored internal controls are in place. It’s usually uncovered only by accident or through a whistleblower.

Actively managed internal controls can prevent or detect most types of misappropriation of assets and fraudulent financial reporting. They’re processes created to track and achieve goals in specific categories (i.e. operations, time keeping, inventory, financial reporting and compliance with applicable laws and regulations). While most of these processes are universal, specific ones may need to be added to address unusual situations or particular fraud concerns.

These controls should include operations and finances. They’re designed to create a system which protects assets through prevention and timely detection of unauthorized or illegal employee behavior. Some of these processes include: monitoring the flow of paperwork; reading, understanding and acting on financial reports; noticing and acting on the behaviors and attitudes of employees; listening to and acting on employee tips and hints about problems.

To start creating internal control measures a business can review past and current procedures, events and concerns – the company’s strengths and weaknesses, investigate and evaluate employee complaints, acknowledge and list all of the problems/symptoms, etc. This is done in a methodical timely way. It’s important to note that the controls are fluid and will need to be reviewed and changed over time.

Well managed, easy to use and structured internal controls are considered to be one of the most effective deterrents to occupational fraud. However, these controls are only paper work if management doesn’t take action. No program, by itself, will keep employees from stealing. Supervisors must be responsible and take action if it’s to be effective.

Opportunity (lack of controls) and ineffective or no consequences are 2 of the main reasons employees commit fraud. It’s unreasonable and naïve for mangers to expect their workers to be atypical. Yet they do, only to be taken advantage of. Unfortunately, many have learned this lesson the hard way.

Nicole Abbott – writer, educator and psycho-therapist

 

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What Works Best- Loss Prevention Training

September 18, 2014 by
There are many different kinds of loss prevention training. Some are focused on shoplifting identification and shoplifting prevention. Other loss prevention training is centered on employee theft. Still others revolve around general store safety and operational best practices. Each focus can be the cause of major financial staring on small retailers.
When you understand what your store specific concerns are, it is easier to find a loss prevention workshop that will fit your needs. Why would you and your employees want to waste your time in loss prevention seminars that are too generalized or do not focus enough on your particular problems or worries?
The smart decision is to work with the training facilitators to make sure they understand exactly what your expectations are. There is no point in spending your time and your hard earned money on loss prevention training that will not produce a return on your investment later on.
One of the most commonly sought after loss prevention seminars are ones that focus on shoplifting. Regardless of your location, client base and product assortment, shoplifting can happen to you. Because of the frequency, these seminars are best suited for a wide array of retailers. Most shoplifters exhibit the same basic strategies and methods. The prevention tactics therefore are equally as universal as the crimes they are deterring and eliminating.
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.

There are many different kinds of loss prevention training. Some are focused on shoplifting identification and shoplifting prevention. Other loss prevention training is centered on employee theft. Still others revolve around general store safety and operational best practices. Each focus can be the cause of major financial strain on small retailers.

When you understand what your store specific concerns are, it is easier to find a loss prevention workshop that will fit your needs. Why would you and your employees want to waste your time in loss prevention seminars that are too generalized or do not focus enough on your particular problems or worries?

The smart decision is to work with the training facilitators to make sure they understand exactly what your expectations are. There is no point in spending your time and your hard earned money on loss prevention training that will not produce a return on your investment later on.

One of the most commonly sought after loss prevention seminars are ones that focus on shoplifting. Regardless of your location, client base and product assortment, shoplifting can happen to you. Because of the frequency, these seminars are best suited for a wide array of retailers. Most shoplifters exhibit the same basic strategies and methods. The prevention tactics therefore are equally as universal as the crimes they are deterring and eliminating.

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 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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Beyond an EAS System- Loss Prevention Workshop

September 11, 2014 by
If you have a shoplifting problem in your store the obvious solution is to run out and invest in an EAS system, or similar retail theft prevention. EAS systems are a significant financial investment, one that will pay off over time, but may cause an immediate strain on some small business finances.
EAS systems are also not an immediate fix. You have to decide which system you want, have it installed and then EAS tag or label your inventory. Again, an extremely effective and worthwhile investment, but what do you do in the mean time?
Look into taking a loss prevention workshop for additional loss prevention training.
Sometimes the best solution is the most obvious solution. A loss prevention workshop can give you tips and tricks to mitigate some of your losses (for free) while you coordinate your efforts to install an EAS system.
One of the tips to stop shoplifting is to look at remerchandising some of the more desirable products within your store. Do you have small, high theft items on a shelf location in the middle of your store? Why not move them closer to the POS system? These items will have a better chance of being continually monitored, and anyone who picks one up can easily and immediately pay for it.
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 you have a shoplifting problem in your store the obvious solution is to run out and invest in an EAS system, or similar retail theft prevention. EAS systems are a significant financial investment, one that will pay off over time, but may cause an immediate strain on some small business finances.

EAS systems are also not an immediate fix. You have to decide which system you want, have it installed and then EAS tag or label your inventory. Again, an extremely effective and worthwhile investment, but what do you do in the mean time?

Look into taking a loss prevention workshop for additional loss prevention training.

Sometimes the best solution is the most obvious solution. A loss prevention workshop can give you tips and tricks to mitigate some of your losses (for free) while you coordinate your efforts to install an EAS system.

One of the tips to stop shoplifting is to look at remerchandising some of the more desirable products within your store. Do you have small, high theft items on a shelf location in the middle of your store? Why not move them closer to the POS system? These items will have a better chance of being continually monitored, and anyone who picks one up can easily and immediately pay for it.

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 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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Security and Operational Compliance

September 9, 2014 by Leave a Comment

theft (4)According to the most recent articles from Loss Prevention Magazine, the three major areas where the management or owners have to be vigilant about are internal theft, external theft and operational compliance. These three security areas have to be implemented correctly and to adhere to procedures the management or security team have dictated to be successful. For more information about this and other topics follow the links below.

Security Breaches Trigger Retail’s Big Players to Call for Major Tech Changes

The possible credit card breach at Home Depot Inc. prompted the retailer to speed up its implementation of chip-reading credit card terminals. Major credit card companies, too, have announced they will accelerate efforts to bolster electronic payments security and protect sensitive customer data. These moves could have a large impact on consumer confidence, which has suffered as a spate of cyberattacks hit major companies. But for retailers especially, the implementation of the new systems will take time, and are not a panacea for a company’s security risks.

Home Depot CEO Frank Blake told investors Thursday that the retailer would activate chip-reading technology on its new credit-card terminals by the end of this year. He said the company is “working around the clock” to find a breach linked to stolen credit and debit cards,” the WSJ’s Shelly Banjo writes, but stopped short of confirming an actual breach occurred.

Building A New Defense Team

As technology draws us deeper into a new age of business enterprise, we are continuously bombarded with waves of challenges and opportunities involving those with malicious intentions. These attacks come at us from every direction as the ingenuity of these criminal minds seek new and creative ways to infiltrate our information resources and engage in cyber warfare against our businesses.

In order to survive these reprehensible intrusions, retailers must fight back. We have to defend our ground and take the necessary steps to combat the threat. This requires that we build and recruit the resources that will help us win the battles. We must become cyber warriors in our own right; defending our computer and information systems against those seeking to seize and exploit the lifeline of our business.

Operational Compliance: Inspecting What You Expect (Part 1)

The evolution of the loss prevention profession has required a change in the way that we view what we do and the way that we approach the retail environment.  First and foremost, we have come to recognize that shrink is a much more complicated problem than merely looking at the theft of merchandise.  Shrink is a very complex issue that must take in to consideration a variety of different issues that can lead to losses.  Shrink reduction is clearly seen as a vehicle of profit enhancement, and an integral part of the retail model.  Additionally, we have perspective on how we can influence company profitability in other ways as well, which has allowed us to set our sights on the bigger retail picture.  As a result our shrink management strategies require a multifaceted and broad-based approach in order to successfully design and administer the process.

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How Do My Employees Steal From Me?

September 5, 2014 by Leave a Comment

theft (13)A better way to look at this may be to talk about what they steal and break it down from there. Employees can steal four types of things: cash, merchandise/product, supplies (& tools, equipment…) and time.

Cash in a retail environment is king. But we tend to put the youngest, most in-mature and least trained person in charge of it. Cashiers tend to fit that description. That is a fact of retail life. But we can manage through that. We have to put procedures in place to deter theft. It has to start at the time of hire. A clear message both verbally and in writing needs to be established. After that follow up is key. Many times we let multiple employees ring up transactions on one drawer so there is no accountability. One way to counter this is through random cash drawer audits. These unannounced audits will show if a shortage has occurred. Action can then be taken. Many times employees stealing cash will accumulate it in the cash drawer before removing it. If your cash audit reveals an overage that maybe what you are dealing with.

Merchandise or Product regardless of what it is, is worth something to someone; that is why you are in business. So if an employee can steal it, they could take it for their own personal use or for resale. Again we have to set up an environment where it is known that this will not be tolerated. Many times when employees are caught stealing, the business owner keeps them employed and has them pay it back. OMG, thinking about this, pay you back with what? They were stealing in the first place. Most likely they will do so again to “pay you back”. Remember, this person has proved that they are the worst of the worst. Oh yes, there may be a sob story. But they stole your assets, the reason does not matter.

Supplies, your equipment or tools are often over looked. I once conducted an investigation for a major resort that had a problem with a few thefts from guests only. It turned out that hundreds of thousands of dollars were stolen in cleaning supplies, furniture, toilet paper, fuel, etc.

We tend to overlook this area because we think it could not add up to much. You have to get your head around that. A roll of toilet paper and a can of cleaning solution every few days add up. Multiply this by a number of people and the situation is quickly a serious loss. Audit your supplies. Investigate when tools or equipment come up missing. Hold people accountable. You should assign or make certain employees accountable for these items. They can and should control them.

Both merchandise and supplies can be removed from your business on the employee’s person, discarded in the trash to be recovered later, out with a friend that is visiting or in collusion with a vendor.

Time is often never thought of in employee theft situations but can be one of the largest losses. Employees steal time by simply falsifying time cards or sheets. For example, a co-worker friend clocks them in but they are not there yet. Even 10 minutes, two or three times a week adds up to big dollars. From personal experience in the over 2300 employee theft investigations I have conducted, it has never just been 10 minutes here and there. This type of theft becomes addictive quickly and will grow to large amounts unless checked.

Time can also be stolen by managers who have control of payroll. I once had a manager set up a fake employee with a bank account. He submitted payroll information and deposited the checks. He embezzled around $20,000 before we investigated him.

All of these types of theft can be prevented. Policy and procedure that is followed and enforced is your very first line of defense but there are other techniques. You can learn more about them in our live- in- person or webinar training sessions. Contact us if you would like more information at 770-426-7593.

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The Curb Rule

September 5, 2014 by Leave a Comment

theft (12)If you talk to anyone who works in retail security, they are probably familiar with something called the Curb Rule. It is a limitation made by many large retailers as to how far employees literally can go when they are making a shoplifting apprehension.

The Curb Rule usually states that when making a shoplifting apprehension, if the shoplifter attempts to flee, employees can pursue the subject as far as the edge of the curb of the store’s location. Generally, most stores have a sidewalk in front of them, and the employees should not go past the edge of the sidewalk in pursuit.

The ultimate goal of the rule is to keep everyone involved safe. The further away from the store employees go, the more likely it is that someone will get hurt. It’s not just about an altercation with a shoplifter either, even though a chased subject can be more pressured into trying to fight their way out of the situation.

In one particular incident, I stopped a shoplifter with a cart full of merchandise. The subject turned around and ran, almost getting hit by a car in the process. Had my witness and I gave chase, we most surely would have been hit ourselves. Remember, even shoplifters can sue a store/ company for personal damages if they are hurt during an apprehension.

One of my mentors used to tell stories of how he got a massive scar on his arm. He had been chasing a shoplifter who had climbed a chain link fence. My mentor, slipped while going over the fence, and the top barbs cut his arm. The shoplifter ended up jumping down an embankment and broke his leg. Needless to say, it was quite an expensive mess to clean up. Did I mention that all the shoplifter took was a twenty-dollar shirt?

The Curb Rule has its place as a safety feature as well as for maintaining profits. Often store and parking lot layouts dictate where the boundaries need to be made. Some stores who do not have a front sidewalk need to clearly inform employees of how and where to handle shoplifters, compared to stores with generous sidewalk areas.

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When There Are Children Involved

September 5, 2014 by Leave a Comment

theft (10)When we think about shoplifters and creating policies on what how to apprehend them, and what to do with them during and after the initial confrontation, we are doing so with a general image in mind. We are acting on an image of an adult shoplifter, who may or may not become physically aggressive. What many owners and managers frequently overlook is what to do when there are children involved during the shoplifting incident.

There is a sad reality that many shoplifting situations do involve children. Sometimes it is actually the children (or minors under the age of 18) that are the ones stealing. Sometimes it is adults- parents, caregivers, relatives- that bring children along while the adult is stealing. In some very unfortunate examples, the adults might actually be teaching and encouraging the children to steal for them.

As a result, policies and procedures should be in place to account for these situations. If you are trying to figure out what to do while the incident is already underway, you can end up in serious trouble if you make the wrong judgment call. So here is a quick overview of how to handle some of these situations.

What to do if a shoplifter is a child/ minor under 18 years of age? Start by determining if there is a responsible party somewhere in the store. This needs to be someone over the age of 18 that can oversee custody of the child. It should be a parent or guardian of some sort. A minor babysitter, older sibling, or friend is not who you want.

Next step is to use your best judgment for the shoplifter’s intent. A four year old taking a candy bar has less criminal intent than a seventeen year old stealing a pair of jeans. Determine from there if you are calling the police to prosecute. Ideally any juvenile in your custody should be released to either a parent or guardian, or the police within thirty minutes or less. Always have a witness present when you have a child in your custody. Never release a child out on their own, as you can be held liable if they are hurt, etc after leaving your store.

If the shoplifter is an adult, and they have children present, decide if you are calling the police or not. If you are prosecuting the adult, make sure the local law enforcement are aware that there are children present. They will need to make special arrangements for those children. While the adult shoplifter is in your custody, under no circumstances should the children be separated from that adult.

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