The Cost Of Shoplifting In Your Store

October 9, 2015 by Leave a Comment

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Training your security personnel how to handle shoplifters, and the security and safety measures they need to take before stopping anyone believed to be shoplifting cannot be stressed enough. Lawsuits are predominant in our culture, and safeguarding yourself and your business from possible lawsuits and loss of money is imperative if you want to make a profit.  Well trained security personnel can be an asset to your store, the money you spend training them and educating them is well worth it. Follow the links to read more about this and other topics.

Shoplifter who suffered skull fractures, brain damage wins $750,000 in lawsuit against store

He was convicted of stealing two pairs of miniature scissors from Shopko.

But his punishment came long before his court case ended.

In November 2008, Richard “Dave” Moore suffered several skull fractures and a brain injury when he was thrown to the ground by a Shopko loss-prevention officer outside the retailer’s store at 90th and Fort Streets.

Friday afternoon, a jury of 12 Douglas County residents ordered Shopko to pay $750,000 to Moore in a civil lawsuit Moore brought alleging that Shopko employees used excessive force.

Moore, 59, was overwhelmed by the verdict, said his attorney, Richard Schicker of Omaha.

“He started to cry,” Schicker said. “He said, ‘Thank you so much — you saved my life. I would have never made it if we didn’t win this case.’”

An attorney for Shopko couldn’t be reached for comment. It is unclear whether the retailer will appeal.

Over the past week, jurors heard testimony of an ordeal that began Nov. 23, 2008.

Store’s Facebook video post of accused bikini shoplifter goes viral

AN ACCUSED shoplifter has been shamed on social media over the brazen theft of bikinis caught on camera at a surf wear store in Fannie Bay.

Fed-up owner of Beach Bums, Mary Meyer, posted CCTV footage of the alleged thief pocketing more than $200 worth of bikinis on the store’s Facebook page.

The post has gone viral, with more than 45,000 views and 1800 shares along with messages of support from business owners since Sunday.

The minute-long clip captured the thief — wearing a black singlet-type top and sunglasses on her head — putting bikinis in her bag as other shoppers browsed beside her for a pair of swimmers.

Ms Meyer said she checked the CCTV after discovering empty hangers on the rack.

She posted the clip with the intention of publicly shaming the alleged thief.

“I put it up to shame her because it shouldn’t be happening. I was very surprised (by the reaction), I just didn’t think it would go like it did. I guess people don’t like it either,” she said.

Lead in $2.5 million shoplifting heist sentenced to prison, Walnut Creek man among those involved in the ring

The lead defendant in a shoplifting ring that stole more than $2.5 million in retail goods and resold them on eBay was sentenced Tuesday to seven years in prison, announced United States Attorney Benjamin B. Wagner in press release.

A restitution hearing is set for Dec. 1.

Jason Samuel Schroeder, 36, of Sacramento, is the sixth defendant sentenced to prison in this case. Kirk Arthell Sanderson, 37, of Walnut Creek, was previously sentenced to four years in prison; John Judah Young, 34, of Sacramento, was sentence to two and one half years in prison; and David Reed, 29, of Vacaville, was sentenced to one year in prison. Two others, Andrea Lynn Turner, 34, of Roseville, and Joshua Roy Payne, 30, of Vacaville, also were sentenced to two months in prison. Jason Nathaniel Reed, 36, of Portland, Ore., is scheduled for sentencing later this year.

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THE SHOPLIFTING NETWORK

October 8, 2015 by Leave a Comment

shoplifting7We live in a world where technology helps us with everything. From the mundane, to sending a rocket to the edge of our solar system to beam back pictures of Pluto. Without the rampant growth of technology and the way we communicate today, none of this would be possible. In the Loss Prevention World, our technology helps us to detect anomalies that could be indicators of fraud. We have the latest high definition camera systems (that we can also access on our smart phones) to view those anomalies with the push of a button. I often think about our industry 20 -30 years ago and wonder how we ever got by. Could you imagine prosecuting an internal fraud case with absolutely no video? I’m sure there’s a lot of you out there that remember those days.

One thing we, as a society, probably take for granted the most is ease of communication. With the touch of a button you can communicate with anyone, from anywhere, so long as there is an internet connection. So what has that done for the LP industry? It’s allowed us to connect and share ideas with our peers across the country and across the globe. We can share information with our law enforcement partners anywhere, at any time. If there’s a big ORC group, we can identify them, track them, share information with others and ultimately have them arrested. The greatest advancement in the LP world, in my opinion, is how well we network with one another.

Networking is key to our survival. I want to know what’s happening somewhere else before it begins to affect my stores. Likewise, I want to share new ideas and tools to help my peers, even if we work for competing retailers. No matter who we work for, our main goal is the same; reduce losses caused by theft, fraud and other forms.

What if I told you criminals operate in the same manner?

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This is a screen shot from a popular blog website. If you know where to look, you can find a treasure trove of shoplifting “how to” guides. What we see above is someone who wants to boost some alcohol. Simply ask the “community” and someone (usually multiple someones) will be more than happy to provide you with tips, tricks and even specific methods to steal from whatever store your heart may desire.

Not only are these individuals concerned about what’s the best way to shoplift, some (if not most) are concerned with potential consequences of actually getting caught. There exists here, a somewhat underground community of shoplifters who are more than eager to share thshoplifting2eir knowledge to others who may be new to the game. Much like a tenured LP manager taking a green agent under their wings.

I must admit that is very easy to distinguish the “rookies”. This community is very well versed on all the latest EAS devices that we use to (try) stop them. I’ve even seen links posted to different websites where one can purchase magnetic detachers and
other tools that would make the most seasoned LP professional cringe at the thought.shoplifting3

Of course, it doesn’t just stop at shoplifting. Take this one for example. This member is boasting about a new computer and monitor he “walked out” with. This was your classic “sweetheart deal” with a dishonest associate. Note how they state the dishonest employee was able to fake a transaction because “everyone trusts him and no one pays attention.”

Does that sound like your store?

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I could sit back here and post screenshot after screenshot. The one common theme amongst all these posters is that stealing from big box retailers is a victimless crime. They see what they do as something that is not “a big deal” as they perceive that our insurance will cover our losses. What they fail to see is the actual damage they are doing to our stores. Lost product = lost payroll = lost wages. They, like every shoplifter and dishonest employee, are taking money right out of the pockets of our employees (including us!).

I hope by reading through this today, you will have a little better understanding of how the 21st century shoplifter operates. No longer is shoplifting a shameful thing. Tto people like this, it is something to be celebrated. By “saving” money, they may very well put each and every one of us out of business.

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TAKING CARE OF THE PEOPLE WHO TAKE CARE OF YOU – HOW TO MOTIVATE YOUR LP TEAM

October 7, 2015 by Leave a Comment

image3-NEOBIZMAGI’ve had the pleasure of running the most productive team of LP agents in our company for quite some time. My team of 10, who cover markets across the Southeast, consistently make solid cases day in, and day out. Not too long ago, my peers put me on the spot at a regional meeting and asked what makes my team so successful. We have the same number of people in markets like Houston and Atlanta, who don’t have the number of cases that we do. So what’s the secret to success?

Hire the right person

From the time I have an opening, I look for the perfect candidate. I actively go out and recruit when time permits. I’ll reach out to my industry peers and find out who their top performers are… and not so shamelessly try to lure them away. I have never once settled for a “warm body” hire, as I see all too often in our stores. I not only need someone who can catch a thief and build cases, I need someone who can work alone, who has a strong work ethic and can build partnerships with stores teams, managers and local law enforcement.

Pay for performance

When you find that right person, don’t let a few dollars come in the way of a great hire. Money is a great motivator and in this field, you get what you pay for. Spending that extra payroll can pay off for you in the long run. This assures that you are getting someone who will be dedicated to their job in addition to being less likely to go rogue and cause you a potential lawsuit. Remember, you can get a job flipping burgers for $10/Hr. is that the quality person you want on your team?

Training

I don’t care how much experience someone has. When they come to my team, they all get the same amount of training. I often hear store managers say that “they don’t have time to train new store employees.” That makes me cringe. Without proper training, you are setting a new hire up to fail. I personally provide the first 2 weeks of training to all my new hires. Yep, I scrub down to a t-shirt and shorts and work the floor, just like the old glory days. After that 2 weeks, I have them shadow 2 of my top performers for another 2 weeks each. 6 weeks of training altogether before they are ever released on their own. There is always time to train.

Set expectations

Time and attendance. Cases. Personal code of conduct. Interaction with managers/law enforcement. All these areas need to have certain expectations set in stone. I expect my team to arrive to work on time each day. I expect them to make solid cases each week and I expect them to conduct themselves in a professional manner at all times when interacting with anyone on behalf of the company. This also includes shoplifting suspects. When someone on my team fails to meet those standards, you can bet your paycheck they will be called out on it. I don’t accept sub-par performance in any job category; neither should you.

Motivate, Motivate, Motivate

I can’t stress that enough. A productive team is a motivated one. Find ways to get your team motivated. For me, the simplest, yet most effective method I’ve found is free food. My top performer each month gets a $30 gift card to the restaurant of their choice. I also find the time to spend at least a few hours each month with my team and when possible, buy them lunch. Twice a year we’ll do a cookout as well. I’m telling you, free food is a motivator. Try it out.

Aside from free food☺, I find that calling out great performance motivates everyone. Just last week, one of my agents made a $1,500 shoplifting stop. I publicly recognized him for his work and 2 more of my agents made $1k stops that week. Would they have made those stops anyway? Maybe? What I can tell you is that there exists this atmosphere of friendly competition amongst my team. Seeing their peer get recognized undoubtedly made them more focused in order to gain that notoriety as well. Just as you call out the bad, always call out the good.

Communication

This is my “cliché” for a successful LP team, but it holds water. Each week we all get on a conference call and talk about the previous week. I’ll let each one of them talk about their apprehensions and what they could’ve done better during each case. This is also an opportunity for me to bring up any concerns I have, company initiatives coming out, or any other house cleaning that I need to speak to. This is also a great time to discuss new trends and big time boosters that we need to focus on. If you’re not speaking with your team regularly, then you’re leaving valuable information on the table.

Weekends/scheduling

We’re retail. We’re busier after 4 and on the weekends. Does that mean you have to work your team a closing shift every night and every single weekend? No. (I heard the collective gasp.) Remember I told you my team is the most productive in our company. Guess what? They only work 1 ½ weekends a month. That’s right. I schedule them to work one weekend and one additional weekend day. During the busier holiday times, we might increase that a little bit, but it’s important to keep those in there to prevent burn out. I give them a free extra weekends off, they give me plenty of shoplifters. I have no complaints. I also don’t schedule them the same mid/closing shifts every day. I vary from  openings, mids and at least one close per week. Again, I try to prevent the burnout of working a close every Friday, or all day every Saturday.

You’ve more than likely heard plenty of these before, however applying them to your LP team can be highly beneficial. We have to remember that those we employ are put in incredibly stressful and often potentially violent situations each and every day. The idea that they get up and are happy to come to work each day is a true testament to their character. I had a boss a long time ago tell me that employees are people first and employees second. You take care of the people who take care of you. Those two lines are how I run my team and it’s never let me down.

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ANNUAL INVENTORY BEST-PRACTICES

October 7, 2015 by Leave a Comment

theft (11)For a large portion of retailers, this time of year means one thing, inventory. I personally hate this time of year. I’m getting a little older and I just can’t hang with overnight shifts. It doesn’t make it any better that my bosses what us (RLPMs) to attend as many inventories as our schedules allow… I’ve done three this month so far and my sleep schedule still isn’t back to normal. With all that inventory on my brain, I thought I’d share some best practices for my peers out there.

First, let me say that my company doesn’t contract any third party to conduct our physical count. We do it ourselves. While there are some great companies out there who service some of the world’s leading retailers, we’ve found that our inventory management is much better when left to the people who it matters most to.

Second, we take the majority of our store inventories overnight during September-October as opposed to the end of the 4th quarter in the January time frame. We do this because for several reasons. One, our stores are slower in regard to foot traffic right now. Second, we are light on inventory as we gear up for the holiday. Lastly, we want to catch all those “out of stocks” that we have through the store prior to the big rush. This allows to be in a far better stock position going into the holiday shopping season. You can’t sell pegboard, right?

In my years of supporting the inventory process, I’ve seen what works, what doesn’t and what is just a waste of time. Here are just a few of my inventory best practices:

Count overnight – No customers. That’ all that needs to be said ☺

Apparel – Key here is making sure that all garments have a barcode. Missing tags can really hold up a count for hours. Starting about 1 week out from inventory, begin assigning key associates to go rack, to rack, to rack looking for missing tags and replacing as they find them. We use a sticker on each rack with the associates initial once it has been cleaned up. This gives us accuracy and some level of accountability.

Footwear – if you sell footwear, you have mismates. Now is the time to purge them.

Hiding spots – As a manager, you are fully aware of all the hiding spots in your store. Find them, as well as all the merchandise hidden within. Think warehouse racks, offices, storage cabinets, and basedecks.

Basedecks – I’m going to give them their own bullet point here. A basedeck is the bottom shelf on a gondola. They can be lifted up and merchandise can be hidden under them. I make it a point to lift up every single basedeck in the store prior to inventory. I always find thousands of dollars of merchandise.

Gift cards — if these are replenished like any other product, make it easy on yourself and pre-count them. You don’t want to be stuck scanning/counting 10,000 gift cards on inventory night.

Warehouses/storage containers – Pre-count these the day before your inventory. This will again save plenty of time during the night.

Top-stock/Risers – either pre-count your back-stock ahead of time, or assign one or two people to count this during inventory night. I’ve always had success with a “top-stock team”.

Single Scan areas Vs. Multi Scan areas – To this day, I have managers make some pretty bad decisions on area tickets. Yes, Single scan takes a bit longer (since you have to scan each item), but your accuracy will be far greater. Obviously, your single scans will be in your soft lines (shoes, clothes) but they can have a benefit in hardline areas as well. Areas such as ammunition, fishing poles, sleeping bags and tents, and any other area where an associate may get confused (or lazy) with multiple colors and sizes.

Have a team in place as well as a plan – What area will be the most difficult? Once you figure that out, start there. The rest of the night will be a cake walk.

Warehouse shipments — make sure to suspend any warehouse shipments a day before your count. Additionally, if you do get a truck before your inventory, make certain it is not received in until after your count. If not, you could potentially see a significant loss on paper due to all that missed product sitting in the loading dock.

Use DNI markers on all that product you pre-counted. This will ensure that your counters won’t count the same product twice.

While this list is far from being all inclusive, it does give you a baseline for what you should be looking for. Often times, we get caught up in making sure our shrink isn’t too high, we forget that accuracy is as just important. For example: if you have 200 lawn chairs, but there are 5 different colors, (red, blue, yellow, green and black). Each of these chairs has its own sku, but they are all $5. If an employee scans and counts all 200 under only one sku, you will have no shrink, but your inventory counts will still be off. Your books will show 200 red chair and zero of the 4 other colors. Most likely, you’re now going to be overstocked on the additional colors. Proper inventory management starts with an accurate inventory count.

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Shoplifting Problems Today

October 5, 2015 by Leave a Comment

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Shoplifting is a problem that affects retailers worldwide. In the United States shoplifting is a problem that affects the retail industry tremendously. Millions of dollars are lost daily due to this problem, and although legislation about this problem continues to change to punish the perpetrator accordingly, the problem is far from disappearing.  The rules and regulations about shoplifting that are to be observed by the management and employees of your store should be reviewed regularly to ensure they reflect the times and views of the owners of the retail store.

For more about this and other news follow the links below.

Indianapolis shoplifting suspect dies in police custody after breathing problems

Indianapolis police said they were investigating the death of a shoplifting suspect who complained of breathing problems.

The man died in the back of an ambulance on Saturday afternoon after being arrested by the Indianapolis metropolitan police department (IMPD) and Cumberland police department, the IMPD said in a news release.

The man told officers he was having trouble breathing and an ambulance was summoned. The medical crew assessed the man and determined he could be transported to the city’s arrestee processing center, but while in the back of a jail wagon the man again complained of breathing problems.

A second ambulance was called, but the man’s condition quickly deteriorated and he died despite attempts to save his life, police said.

Walmart employees in hot water over video of suspected shoplifter

ARLINGTON, Texas — Walmart employees who confronted a suspected shoplifter in a Dallas suburb may now be in trouble themselves, reports CBS DFW.

A cashier recorded the incident in North Arlington, which was posted on a Facebook page for Walmart employees. It appears to show a woman shoplifting and employees taunting her and grabbing her bag on her way out of the store.

The video then shows an unidentified woman walking up to the suspected shoplifter outside the store and and starting to fight with her.

One of the employees involved has resigned and an investigation is underway, CBS DFW reports.

Retailers call for legislation amid rise in shoplifting in Dublin

Retailers are lobbying the Government to introduce tougher penalties for repeat shoplifters as gardaí reported a 40 per cent increase in the activity in inner city Dublin.

A Dublin central Joint Policing Committee was told this week that overall property crime, such as burglaries, car thefts and shoplifting, was up by 8 per cent in the division.

Chief Supt Pat Leahy told the meeting that burglaries and car thefts were down this year but a sharp increase in recorded shoplifting had brought up the total.

He said the apparent increase in shoplifting coincided with a change in the way the crime was recorded.

“Every single incident of shoplifting now is recorded as a crime. Whether it is a lipstick or it is a €400 jacket, it goes in as a crime,” he said.

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Using Technology To Prevent Shoplifting

September 16, 2015 by Leave a Comment

theft (12)Shoplifting is an issue with lots of bad ramifications.  The shoplifting that many businesses experience is financially devastating for the business, local and US economies. The financial burden that small business owners experience due to shoplifting can be hard to overcome.  Profits are slim in some cases and the shoplifting and employee theft can make a small retail business close its doors for good. For more about this and other topics, follow the links below.

Why Inventory Tracking Software Is a Critical Investment

Running a small business often means making tough decisions about how to spend and where to invest your limited capital. From inventory shrinkage to supply and forecasting challenges, an effective inventory tracking system and software is a critical company investment.

If you don’t track your inventory, you have no way of preventing employee theft, and trying to create your own inventory system using a spreadsheet program like Excel is time-consuming, error-prone, and rarely effective.

These days, it is relatively inexpensive for a small to medium-sized business to get its own inventory tracking system with the latest software. When you consider the potential costs of not tracking your inventory, it’s a no-brainer.

Beating Inventory Shrink

In 2014, inventory shrink resulted in over $44 billion in losses for retailers, over 50% of it the result of internal theft, administrative errors, and unknown causes. Internal theft alone accounts for 34.5% of inventory shrink. Administrative errors make up another 16.5% of shrink. These can be significantly reduced through the implementation of effective inventory software and systems.

Owner: Shoplifting ‘not a victimless crime’

Owner’s experience shows the toll that shoplifting takes on small businesses.

BY SPENCER PARTS RALEIGH NEWS & OBSERVER

CARY, N.C. — In early July, designer dresses, slacks and jackets valued at $3,000 were stolen from ADORE Designer Resale Boutique in this Raleigh suburb, one of Nancy Alinovi’s two consignment shops in the area. She still feels sick about it.

“It’s just this feeling in your chest,” she said. “It’s not a victimless crime.”

Alinovi said it will be months before everything returns to normal at the family-owned boutiques, which cut prices in order to stay afloat after the theft. Her experience shows the toll shoplifting takes on small businesses, where margins are small and business is personal.

According to a National Retail Federation’s security survey, shoplifting accounted for 38 percent of the $44 billion in retail inventory loss due to crime in 2014.

Large capital losses from theft are especially hard on small businesses, said Jennifer Martin, executive director of Shop Local Raleigh, an organization that advocates for and supports small companies. Many smaller firms are tight on time and money, and an unexpected event can push them to the breaking point.

Security systems know all the self-scan tricks

MOUNT DORA — Last August, a 58-year-old woman, using a self-checkout station at Wal-Mart in Leesburg, allegedly was seen placing two items in her hand before scanning them so the scanner could not record the barcode and charge her for the blocked item.

Assuming she was being watched from afar, she also allegedly waved items too far away from the scanner for it to record a sale but made it look like she was using the equipment as intended.

On Saturday, a 30-year-old woman allegedly tried a couple of other ways to beat the system at Wal-Mart in Mount Dora, concealing items inside a sweatshirt and even a backpack she self-scanned.

Neither got away with it and face theft charges because retailers know all the tricks and have self-check security systems in place to detect them, according to the website retailtouchpoints.com.

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Using Policies and Procedures as a Shoplifting Deterrent

September 11, 2015 by Leave a Comment

law-3The policies and procedures about shoplifting and detaining shoplifters should be known  by every person in your store or business to ensure the safety of your employees.  The importance of the policies can help with employee theft in your store.  If a zero tolerance procedure is known by everyone, it can serve as a deterrent for future or possible theft. For more about this and other stories, follow the links below.

Adidas turns to a new data collection system to pinpoint problems and reduce shrinkage.

When he came home to Germany after the First World War, Adolf “Adi” Dassler went into the athletic shoe business, creating a company that was eventually named for its founder: Adidas. (His brother Rudi moved across the river and founded Puma. Shoes run in the family.)Today the Adidas Group, still headquartered in the small Bavarian town of Herzogenaurach, is a global leader in the sporting goods industry, with 2014 sales of just under $16 billion. Its brands include Adidas, Reebok, TaylorMade, Ashworth, CCM and Five Ten. Earlier this year, the company sold its Rockport unit to a new entity formed by Berkshire Partners and New Balance.

“Adidas is not a natural retailer,” says Ken Bohnert, the company’s profit protection manager. “We came into the retail world on the back of our manufacturing arm — 10 percent of our income stream comes from retail, 90 percent from manufacturing.”

Wisconsin College Admin: Police Shouldn’t Prosecute Shoplifters [VIDEO]

An administrator at the University of Wisconsin-Madison suggested at a recent roundtable conversation that, in order to combat “overpolicing” in the community, police should no longer respond to shoplifting claims at large stores such as Wal-Mart, and shouldn’t agree to prosecute people caught stealing.

“I just don’t think that they should be prosecuting cases … for people who steal from Wal-Mart. I just don’t think that, right?” said UW-Madison director of community relations Everett Mitchell. “I don’t think [with] Target or all them other places, them big box stores that have insurance, they should be using justification, the fact that people steal from there as justification to start engaging in aggressive police practices, right?”

 Everett’s remarks were made Tuesday as part of a UW-Madison panel on the topic of “Best Policing Practices.” Everett argued that community police shouldn’t prioritize enforcing the law, but instead should focus on achieving “safety” as it is defined by a local community, even if that definition includes allowing some stores to be robbed with impunity.

Can You Sue an Employee for Stealing?

Dealing with customer theft is one thing, but what happens when it’s your own employees stealing from your store? Of course there are criminal laws against theft, but that may not get you the full value of what was stolen.

So can you file a lawsuit against an employee for theft? And, if so, what kinds of theft are covered?

Paycheck Penalties

If your state allows, and if you’ve decided not to fire the employee, you could consider deducting the amount of the theft from his or her paycheck. Just be careful: some states (like California) prohibit this entirely, and some states have certain restrictions on when employers can deduct wages and how much they may deduct. You don’t want your attempt to deal with theft to end up in a lawsuit against you.

 

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Public Shaming and Shoplifting

September 8, 2015 by Leave a Comment

shoplifting5The public shaming of criminals has been around for centuries.  For a good part of the world’s legal history (and some still today) the punishment for crimes happened in public: pillories, pelting offenders in the stockades with rotten food and feces, hanging, ear nailing, branding, sandwich boards which proclaimed the crime, dunking stools, shunning, whipping posts, maiming, etc.

There’s a natural human desire for others to be recognized and brought to justice for their crimes.  The emergence of public shaming via social media is a continuation of that desire and heritage.  Social media is just a new, albeit broader reaching, component of a very old method of controlling crime and providing justice. 

Retail has a centuries old history of public shaming, because up until recently most stores were mom and pop operations.  Owners personally knew which customers weren’t paying their bills and who was stealing, and they had ways of letting others know too.  Not long ago, owners posted bounced checks near the cash register, so everyone saw which neighbors were deadbeats.

Now store owners and managers are turning to public shaming again for their on-going, ever increasing problem with shoplifters.  They’re frustrated, burnt out and angry, and are increasingly using social media to combat the issue.  They’re posting pictures and video of alleged shoplifters and some caught in the act.

The motivations behind posting this information are varied — it’ll shame the criminal into stopping or at least staying out of the store; someone will identify the thief and they can be charged; it’ll shame law enforcement into “doing something” about the crime; other shoplifters will see the store is serious about crime and stay away; it gives the owner a feeling of control and not like a victim.

But, these new tactics have triggered a very old question, “Does it work?”.  The answer is the same as it has always been, “Yes” and “No”.  Both answers are correct, because it depends on the situation.  The spectrum runs from — the shoplifter was mortified and didn’t do it again to the shoplifter became a celebrity in their social group and increased their stealing.

This strategy has always had mixed results, which is why store owners and managers should be thoughtful and cautious about using social media for public shaming or crime fighting.  In addition, the legalities of it are murky at best and must be considered before posting pictures or video.  Be sure to evaluate each situation on an individual basis before taking any action.

Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction.  She’s an educator, consultant, lecturer, trainer and facilitator, who’s conducted over 200 workshops, trainings, presentations, college classes and seminars.

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Company Policies and Shoplifting

August 29, 2015 by Leave a Comment

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Many retail stores spend a lot of time and money combating shoplifting.  From loss prevention teams to anti-theft devices, security systems and many more, retailers always look for the best way to prevent shoplifting in their business.  Having your company’s policies visible and implementing them well can help your business and your management team deter shoplifting and employee theft. Communicating your company’s policies and procedures to your employees regarding employee theft and shoplifting from outsiders can protect your employees from harm and your business from lawsuits.  To read more about this topic follow the links below.

Retail Management: Policy Violations

The dynamic retail industry requires flexibility from loss prevention professionals.

Building a successful career in loss prevention has always been predicated on the commitment to professional growth and development. Working in a business as dynamic as retail, it is essential that we remain flexible in our methods and progressive in our approach to a global retail market. As the business moves forward, change comes quickly, and our retail management skills and abilities must evolve to meet the needs and expectations of a new professional standard.
But true growth must be built on a solid foundation. Especially when we consider the pace of change, we find that success is largely based on the refinement of the fundamental principles that anchor our skills and our decision-making. By expanding on our foundation of knowledge, we give ourselves a stronger and more stable base to build upon. We reinforce our futures by broadening our opportunities.

CD Shop Owner Accused in $2M Scheme With Shoplifting Addicts

​A record store owner is charged with using heroin addicts to shoplift more than $2 million worth of books, videos, and other products that he then resold online.

Anthony Cicero, 50, of East Pittsburgh, has been charged with running a corrupt organization out of his Slipped Disc record store in Oakland, a trendy Pittsburgh neighborhood home to The University of Pittsburgh and Carnegie Mellon University.

The investigation stretches back to 2008, when a Barnes & Noble investigator began tracing about $30,000 a week in stolen items to the addicts allegedly employed by Cicero, according to a grand jury presentment included with charges filed Wednesday. Cicero is also charged with theft, receiving stolen property, retail theft and conspiracy.

The state attorney general’s office said Cicero clearly knew his shoplifters — known as “boosters” — were addicts.

Cyber shoplifting costing retailers billions, driving up prices

STATEN ISLAND, N.Y. — A thief looking to scam a credit lender goes on an online shopping spree, ordering thousands of dollars worth of goods. When the bill comes, he calls the credit card company and claims they are fraudulent charges.

In good faith, the lender issues a “chargeback,” or credit, to the customer’s card, and the thief gets away with cyber shoplifting.

This crime is costing retailers up to $16 billion per year, and it’s making online shopping more expensive for consumers, as retailers pass along the costs associated with cyber shoplifting, said Monica Eaton-Cardone, co-founder and chief operating officer of Chargebacks911.

“Banks aim to keep their cardholders happy and typically assume ‘the customer is always correct.’ … [This] often leads to automatic chargeback refunds without further investigation or analysis,” she said, noting that cyber shoplifting falls under the larger category of “friendly fraud.”

“Chargebacks give consumers a loophole where they can call their bank or the merchant for an online transaction where they claim they didn’t receive the product or they could say, ‘I don’t recognize the transaction’,” Eaton-Cardone added.

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How To Combat Employee Theft In Your Business

August 21, 2015 by Leave a Comment

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A store no matter the size cannot avoid theft.  Employee theft and shoplifting are major issues for the retail industry around the globe.  Billions of dollars are lost due to this crime, and everybody is somehow affected.

The small business cannot weather the storm as well as the big retailers and could close their doors due to this issue, the honest buyer pays more their merchandise, everyone pays regardless of who commits the crime.  So, what can you do to protect your business from shoplifting and employee theft.

Owners should set good example to help combat employee theft

Q. How can a small business avoid employee theft?

A. That’s a timely question because employee theft is more likely during a recession.

The risk is illustrated by a recent news story of a chief financial officer who embezzled $9.9 million over six years. Most employees are honest and loyal but a single dishonest employee can cause large losses.

The average loss when major employee financial theft occurs is about $190,000, enough to bankrupt a small business. Small businesses are more susceptible to employee theft. Owners tend to be too trusting and either are not skilled in financial management to catch theft or don’t have time to monitor financial transactions to avoid theft. Employee staffs are small and that makes it difficult to separate financial functions among employees to avoid theft and have financial controls. Owners need to strike the right balance between employee trust, which is essential for employee loyalty, and maintaining controls to avoid theft.

Walmart’s Shrinkage Problem Is Causing Earnings Headaches And A Lot Of Excuses

Thieves are creating a massive headache for Walmart’s bottom line and the company is now regularly blaming shrinkage for much of its earnings issues.

During the retail giant’s quarterly results call on Tuesday morning, the company spoke about shrinkage throughout the conversation. Shrinkage was mentioned 13 times on the call, as the company’s team quickly blamed theft for much of its lower than expected earnings.

The company says much of its writedowns occurred for inventory that just disappeared. Walmart employees claim that customers steal everything from meat to electronics.

According to Walmart’s chief financial officer, Charles Holley, the problem isn’t about to go away anytime soon. Walmart is restarting a program to teach employees how to spot thieves and the company is auditing its entire supply chain to “close gaps” while it adds staff to parts of store’s in which items tend to vanish. In many locations, new “receipt” checkers will even make sure items are not being snuck out after someone leaves the register.

Newport Grand employee arrested, fired for alleged theft at slots parlor

​A Newport Grand employee has been arrested and fired from her cashier’s job for allegedly trying to steal $1,300 from the slots parlor.

Kimberley Albro, of 6 Union St., Warren, was arrested in April by Rhode Island State Police after Newport Grand alerted them to the theft. Albro subsequently was fired from her slots parlor cashier’s job and the R.I. Department of Business Regulation later revoked the state-required “operations employee license” needed to handle money at Rhode Island gambling venues, according to records of the two state agencies.

Albro apparently tried to get away with pilfering the money from her cashier’s drawer, but other employees noticed that her transactions were off, according to State Police Capt. Matthew C. Moynihan. A review of video recordings by Newport Grand security showed Albro taking the money.

“Security there is very tight,” Moynihan said.

Newport Grand alerted state police, who arrested Albro, Moynihan said. She was arraigned April 3 in Newport District Court on a felony charge of embezzlement of more than $100. The case remains open.

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