Signals that indicate possible internal theft – Part 1 – Atlanta Georgia

October 20, 2010 by Leave a Comment

Signals that indicate possible internal theft or employee theft with goods or money

1. Demonstrable shortages without administrative accounting, often described, for ease, as shrinkage.
2. Internal or external checks show stock differences or procedural errors.
3. Anonymous reports to management that may be from the home front, personnel or others.
4. Considerable shortages relating to certain personnel for which they may have taken the initiative or been asked for favours by others in exchange for reductions.
5. A sale of goods by certain sales persons need not lead to a till receipt.
6. Easy exchange, without a receipt, is possible.
7. Clients exchange or return goods with receipts or invoices that are unknown to the company.
8. The discovery of unknown (part used) receipts books near a sales point or in delivery vans. The carbon copy may be missing.
9. Repairs carried out by some employees on the basis of  “Oh, just give me …”
10. Self-loading by customers without any control at the exit.
11. Personnel arrange ‘special offers’ and make customers aware of them, unasked.
12. Personnel deliver ‘special offers’ to customers at home after working hours. Cash payment is demanded.
13. Personnel carry out repairs or installations for clients at home without invoice or receipt.
14. Goods are brought in for repair according to an agreement or guarantee when these goods, according to the administration, do not appear to have been sold by the company.
15. Goods for which the customer shows an unknown receipt or invoice are brought in for repair.
16. Deliver of goods at unusual times.

Many times several of these signals are seen in one employee. One item by itself may not be internal theft but a mistake. Look for one or more in a person. Remember, internal theft or employee theft should always prompt an employee theft investigation . Do not bury your head in the sand, employee theft will not go away on its own. It WILL get worse. Many times employers are afraid to have an employee theft investigation conducted because it will “offend” good employees. What offends good employees is to see unchecked theft going on around them.

Watch for more parts to come in future blogs!

For more information about internal theft or employee theft contact us at employee theft investigation or call 1.770.426.0547 Atlanta Georgia

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Retail Theft In Europe

October 19, 2010 by Leave a Comment

From the amount of retail theft controls I saw in a recent visit to France and Germany retail theft must be alive and well there.  I saw extensive use of Checkpoint security systems and some CCTV.  In major department stores there are Checkpoint security systems at every customer entrance and exit.

What I also found very interesting is that they had Checkpoint systems at the escalator on each floor. This seems to be an attempt to keep the shoplifting public from taking merchandise to areas that may provide more concealment.

Retail theft there has as much impact if not more in Europe than in the U.S. Prices there are very high and are set to go higher with the addition of more taxes assessed by the governments. Does this sound familiar of what?

Over all anti shoplifting awareness seems to be extensive in Europe. I saw a considerable amount of signage that talked about what legal actions would be take with a person caught shoplifting . The signs were all in one language. Because those countries have an official language they did not seem to feel compelled to print them in other languages even though there are a considerable amount of people from all over the world living and working there.

In one case several years ago on another visit to Germany I saw a person who had been caught shoplifting being handled very sternly by the German Police. I have a lot of respect for the German Police and have worked with them on a number of occasions. They are not to be toyed with. The average citizen there avoids contact with them as the laws are very strict and they treat criminals like a criminal. How refreshing and what better anti shoplifting program could you ask for?

For more information on shoplifting ,  checkpoint security systems or retail theft contact us at anti shoplifting or call 1.770.426.0547

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A Worthwhile Investment: Clothing alarms

October 19, 2010 by

Having a clothing alarm is a smart business move for businesses wishing to protect their assets.  Clothing is supposed to be for sale…not free for the taking.

The theft of clothing in a retail environment is unfortunately simple and very common.  Clothes can be folded up, or wadded up, and slipped easily inside of a large purse or backpack.  They can also be worn out of the store by simply putting them on under clothing.  Another shoplifting theft I’ve witnessed is a customer entering a store without a coat, and then wearing one out.  If your employees are busy helping other customers, even this brazen a theft can go unnoticed.

Businesses cannot afford to do nothing to help prevent this type of theft.  A clothing alarm can be beneficial in deterring the theft of the clothing you sell.  A potential shoplifter will come into your business, see that you have this security measure…and then they will move on to the next business.

Shoplifters want to have to spend only a very short amount of time prepping merchandise in order to steal it.  They also do not want to draw attention to themselves.  Taking the time to try to remove a clothing alarm is not something most shoplifters are willing to do.  Risking an audible alarm if they leave with the clothing is also a chance many shoplifters will not take.

Shoplifters are not the types of customers you want to have in your store.  And higher prices to recoup the loss from shoplifting are not what you or your customers would like either. A clothing alarm helps keep the shoplifters away and profits where you’d like them to be.

For more information about clothing security or clothing security tags contact us about clothing alarm or call 1.770.426.0547.

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The Difference Between Security and Loss Prevention – Atlanta Georgia

October 19, 2010 by Leave a Comment

The key difference between security and loss prevention is in the roles each one plays within any given organization. For instance, a security guard is someone, normally in uniform, who guards a post and/ or patrols an area. His/ her charge is to provide for the general safety and security of the establishment, its workers and patrons; and to establish physical deterrence to any would-be criminals. A loss prevention detective (or agent, as they are often referred to) is charged with the task of identifying and investigating shrinkage, whether it is from shoplifters, internal theft or paperwork errors. They normally operate covertly, and their goal is to maximize the profits of the company.

Security and loss prevention are similar in some areas as well. Both may be called upon to detain suspects, coordinate and interact with police and other law enforcement entities, taking witness statements, observing the questioning of a suspect and testifying in a court of law. However, in addition to these things, loss prevention also investigates numerous kinds of check and credit card fraud, identity theft, corporate fraud and white collar crimes. They investigate internal theft, interview or interrogate employees as necessary, training and make recommendations on improving the physical security of an establishment.

 There is a time, a place and a use for both security and loss prevention . However, if you want my opinion (and who doesn’t?), hiring a security guard to watch your business is like buying a German shepherd to guard your home. Sure, he’ll be loyal as long as you keep him fed, but you won’t know anything is wrong until it’s too late. Loss prevention is a proactive approach to shrink reduction. In the end the difference between security and loss prevention is scope; so ask yourself, do you want to save a little bit of your profit or all of it?

For more information about loss prevention or retail loss prevention contact us: security and loss prevention or call: 1.770.426.0547

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U.S. Shoplifting Statistics – Atlanta

October 19, 2010 by Leave a Comment

To prevent shoplifting you must first understand the problem. Take a look at these shoplifting statistics as compiled by the good folks at the NASP.

  • More than $13 billion worth of goods are stolen from retailers each year. That’s more than $35 million per day.
  • There are approximately 27 million shoplifters (or 1 in 11 people) in our nation today. More than 10 million people have been caught shoplifting in the last five years.
  • Shoplifting affects more than the offender. It overburdens the police and the courts, adds to a store’s security expenses, costs consumers more for goods, costs communities lost dollars in sales taxes and hurts children and families.
  • Shoplifters steal from all types of stores including department stores, specialty shops, supermarkets, drug stores, discounters, music stores, convenience stores and thrift shops.
  • There is no profile of a typical shoplifter. Men and women shoplift about equally as often.
  • Approximately 25 percent of shoplifters are kids, 75 percent are adults. 55 percent of adult shoplifters say they started shoplifting in their teens.
  • Many shoplifters buy and steal merchandise in the same visit. Shoplifters commonly steal from $2 to $200 per incident depending upon the type of store and item(s) chosen.
  • Shoplifting is often not a premeditated crime. 73 percent of adult and 72 percent of juvenile shoplifters don’t plan to steal in advance.
  • 89 percent of kids say they know other kids who shoplift. 66 percent say they hang out with those kids.
  • Shoplifters say they are caught an average of only once in every 48 times they steal. They are turned over to the police 50 percent of the time.
  • Approximately 3 percent of shoplifters are “professionals” who steal solely for resale or profit as a business. These include drug addicts who steal to feed their habit, hardened professionals who steal as a life-style and international shoplifting gangs who steal for profit as a business. “Professional” shoplifters are responsible for 10 percent of the total dollar losses.
  • The vast majority of shoplifters are “non-professionals” who steal, not out of criminal intent, financial need or greed but as a response to social and personal pressures in their life.
  • The excitement generated from “getting away with it” produces a chemical reaction resulting in what shoplifters describe as an incredible “rush” or “high” feeling. Many shoplifters will tell you that this high is their “true reward,” rather than the merchandise itself.
  • Drug addicts, who have become addicted to shoplifting, describe shoplifting as equally addicting as drugs.
  • 57 percent of adults and 33 percent of juveniles say it is hard for them to stop shoplifting even after getting caught.
  • Most non-professional shoplifters don’t commit other types of crimes. They’ll never steal an ashtray from your house and will return to you a $20 bill you may have dropped. Their criminal activity is restricted to shoplifting and therefore, any rehabilitation program should be “offense-specific” for this crime.
  • Habitual shoplifters steal an average of 1.6 times per week.

For you to prevent shoplifting you need more than a hope and then trust to luck. Shoplifters will clean you out if you are not proactive. Training and knowledge of how to spot and approach is key.

For more information contact us at prevent shoplifting or call 1.770.426.0547

Information and statistics provided by the National Association for Shoplifting Prevention (NASP), a non-profit organization; www.shopliftingprevention.org.

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Does your business need a Corporate Fraud Investigator? – Atlanta

October 19, 2010 by Leave a Comment

A corporate fraud investigator is a seasoned professional trained in the art of detecting fraud at the corporate office and the executive level. These investigators spend large amounts of their time looking through ledgers and performing forensic accounting.

A business having issues with accounts payable, accounts receivable, merchandise flow and at times, merchandise at the distribution centers or other areas can be indicators of corporate fraud . Although there are numerous other ways for fraudsters to “do work”, the IRS believes the negative impact of corporate fraud depends on the complexity and magnitude of the schemes.

A simple look at corporate fraud takes us to the basics. Let’s say an Executive within an organization and two other of his coworkers decide to take advantage of the company they work for. The main executive makes several purchases on his corporate credit card. These purchases include repairs to his personal home, clothing and jewelry for his wife/girlfriend. Additionally, this executive hires his two coworkers as “consultants”. The “consultants” are paid hundreds of thousands of dollars for work that is never performed. Altogether, these fraudsters are bilking the company for serious amounts of money.

To truly understand the inter-workings of these schemes, the corporate fraud investigator will spend time digging, building, reviewing and identifying the trends and activities of the suspected employees. This is not an easy task. The investigator has to stay sharp and know the signs of fraud.

In another example, a business partner starting a new sales division needed money from investors. He falsely claims to have contracts with other large “brand name” businesses and tells investors the return on their investment will gain them a 15% return. The investors, seeing the potential for profits gave out millions. The fraudster took the monies and opened bank accounts overseas and trusts in the name of family members. The corporate fraud investigator working this case quickly saw the concerns on the investors when the returns never came in.

For more information about corporate fraud, contact us at corporate fraud investigator or call 1.770.426.0547 – Atlanta

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Pre Employment Screening and Temporary Agencies

October 18, 2010 by

Pre Employment Screening and Staffing Companies

Pre employment screening poses quite a puzzle for temporary agency recruiters and those placing contract workers.  Economically, it would seem to make sense to do as little as possible in this area, and still be able to claim that a background check has been done.  Economics aside, providing a less than suitable candidate to a client can have far reaching consequences to the agency’s reputation and future business.  If an agency places a candidate that erupts in an episode of workplace violence or commits some criminal act such as theft or fraud, the agency’s reputation will certainly suffer.  Bad enough if it happens, but worse if the agency should have known by past behavior of the candidate that such actions might occur.  Conducting an adequate pre employment screening would go a long way in preventing illicit activity, as well as demonstrating due diligence in the placement of candidates.

Frequently, however, the client dictates to the agency the depth and scope of the background investigation, and some are far more stringent in their requirements than others.  When that happens, where does the agency go?  Hopefully, they have developed a relationship with a knowledgeable background check company that will partner with them to provide an acceptable program for the client company.

A background check company should provide advice and direction in developing the pre employment screening program for every position from laborers to CEO’s, without forcing a cookie cutter, same for everybody background report.

For help and advice with your pre employment screening program, call 770-426-0547 or click here.

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Implications of Internal Theft & A Loss Prevention Investigator – Atlanta

October 18, 2010 by

Do you know what internal theft looks like? Is there a certain way internal theft is supposed to look?

Well, not really. Theft is theft. It looks the same no matter what environment you work in. When an employee or employees are involved in the act of theft, it doesn’t look good.

Retailers have been wrestling with the dishonest employee since the beginning of the retail world. Looking back to ancient times, street vendors had to deal with employee theft. Although a much harsher punishment was given, the outcome was the same, lost profits.

Now the million dollar question, does your business have employee theft? It’d be a safe bet to say YES. I can’t count the number of times I’ve heard managers or business owners say they have no dishonest employees or that their business does not suffer from internal theft. Yet looking at their books, they are losing thousands if not millions of dollars yearly.

Look at the key indicators of theft. Statistically, the under 21 years of age, part time male employee is most likely to be involved in acts of theft and dishonesty. Yet, those with tenure seem to cause the most loss. What kind of merchandise do you sell? Is your business a cash business?

Having a set standard or policy and procedures in place can help deter the possibility of internal theft but it won’t eliminate it.

The best solution would be to put in a loss prevention investigator to truly identify where your dishonest employees are.  A loss prevention investigator will be able to quickly recognize losses and offer the best solution based on the needs of the business.

Specializing in internal investigations, the loss prevention investigator will conduct surveillance, interview witness employees, perform covert CCTV work, and build a strong investigation. Upon identifying a suspected employee, the investigator will interrogate the employee, aiming for a positive outcome… the admission of theft.

For more information contact us at loss prevention investigator or call 1.770.426.0547

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Checkpoint Systems In Europe

October 15, 2010 by Leave a Comment

I have just finished up a very much-needed vacation to France and Germany. Of course it is a bit difficult to shut off completely. Especially when I saw Checkpoint systems in a vast amount of retail stores in both countries. Shoplifting is alive and well in Europe.

Anti theft devices devices abound. However, I did not see as much CCTV as one would think compared to U.S. standards. European retailers have figured it out. CCTV although an important tool is not the first line of defense as anti theft devices goes. Who has time or labor dollars to “watch” CCTV for shoplifting ? This coupled with the fact that covering an average store there or in The U.S. would involve quite a number of cameras. Cameras as anti theft devices are reactive or for after the fact. The person that is shoplifting is long gone before anyone would know. Unless you pay someone to watch CCTV all the time. Checkpoint systems are on duty 24/7.

This seems to apply to both large and small retailers. Even in the larger department stores in major cities I saw limited use of CCTV. What shocked me most was that I did not see CCTV used as anti theft devices at the POS for employee theft issues. In this situation I strongly believe that CCTV is a must. Each POS must have a camera that views the cash register, employee and customer. This camera is then fed into a DVR that overlays the cash register detail right onto the picture. This allows a retailer to view exactly what the cashier is doing. Are they ringing up a pack of gum but bagging up a DVD?

As far as the use of Checkpoint labels and Checkpoint tags the application in Europe and the U.S. seem to be the same. The one difference is that European retailers tend to use Checkpoint tags and Checkpoint labels on merchandise that has a lower price point than U.S. retailers. In many cases I saw hard tags on items priced as low as $2.00. The over all feeling was that if you have the system, use it.

For more information on anti theft devices , checkpoint labels or  checkpoint tags contact us at checkpoint systems or call 1.770.426.0547

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The Background Check – What Does it Cost?

October 15, 2010 by

The Background Check – What Does it Cost?

“How much is a background check?” is one of the first questions asked of most providers by a company looking to start or change its employee screening process.

This is a somewhat complicated question to answer because a lot of the cost depends on how reliable the company wants its information to be.

There are web sites where users can go online, sign up, and get a “National Background Check” for as little as $9.99.  The results obtained from this type of check are going to be unreliable at best and damaging at worst.  The information contained in this type of report is generally available instantly, so no recent activity could possible be on it, and it is prone to missing legitimate records while posting false positives on others.  But many companies use them, thinking they are protecting themselves from thieves and violent offenders.  Never depend on information found in an “Instant National Criminal Database”, or you are likely be disappointed.

So why should a company pay $20 and up for a simple criminal history check?  First, at the county level, someone has to actually go to at least one courthouse and sometimes more, to check the name index for the applicant and retrieve the record if it exists.  In addition to compensation for this individual, some clerks and courts charge fees just to access the information, and some, known as “Clerk Search Courts” charge for the time the clerk spends retrieving the record, sometimes by appointment only.  Currently, the most extreme example of an add-on fee is in the state of New York, which charges $62.00 to access their court records.

Other jurisdictions are discovering that this can be a good source of income in a down economy.

A good number of states that offer access to the statewide repository of criminal information (some are better and more accurate that others) also charge varying amounts to those who access the records.

Then, the records are reviewed for accuracy of identifiers and any restricted information.

Most background check providers charge a fair price and pass on court fees to the end user.  Be sure you are aware up front of any potential fees that you may be charged.

The question is, are you comfortable that the results you receive from your background company accurate and reliable, or are you receiving a commodity, information bought and sold without regard to its content?

To discuss your background check program, call 770-426-0547 or click here.

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