Retail Loss Prevention and the use of CCTV (Closed Circuit Camera system)

October 5, 2010 by Leave a Comment

How can retail loss prevention boost your profits? Use CCTV.

Retailers worldwide benefit daily thru the use of CCTV to protect assets, increase safety and give a piece of mind. In the world of Retail Loss Prevention, CCTV is a staple. From Investigations of dishonest employees to reviews of customer alleged slip, trip and fall instances and other potential risks and liabilities.

A retailer in a metropolitan market found a return on their investment when the use of CCTV equipment helped the local police department recover thousands of dollars in stolen merchandise. An undercover loss prevention agent working the particular store, observed a team of suspects enter the health and beauty aisle. The suspects, working in teams of 4, quickly cleared off several bottles of shampoos, baby formula and men’s razorblades. The people worked so efficiently, they were sometimes in and out of the store before the loss prevention agent could get out to the salesfloor.  After the last 3 times these suspect had “hit” this store in the last week, the loss prevention agent quickly notified the local police department of the suspect’s presence. Working the store’s CCTV system, the agent kept uninterrupted surveillance on the suspects. While on the phone with the local police department, the loss prevention agent was able to position the responding police officers outside of the store. As the suspects exited, the agent maintained surveillance as the local police department apprehended all four of them.

The loss prevention agent was subpoenaed to court and was able to provide the local prosecuting agency with video evidence of the multiple instance of theft this group had conducted. As a result of the proper use of the CCTV equipment, the store was able to recover a large amount of its losses after the local police department recovered thousands of dollars in stolen merchandise from the suspects.

Retail loss prevention  can create, write and execute loss prevention policies for most companies that can dramatically improve their overall profitability.

For more information visit: retail loss prevention or call 1.770.426.0547

 

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The How-to on Employee Theft Investigations

October 5, 2010 by Leave a Comment

An unfortunate reality for businesses is the need to conduct an  employee theft investigation.  Your business NEEDS these investigations to be profitable.  While we can conduct background investigations when hiring employees, there will always be the potential for an employee to steal from his or her employer.  For a business owner, not much is more frustrating than when an employee commits theft.

An  employee theft investigation is a necessary part of retail loss prevention.  There are a variety of factors that are taken into consideration when conducting an investigation involving employees.  Your organization should have a policy in place to follow when conducting investigations.  This allows for consistency within the process.

Once a loss has been identified, a suspect or person of interest needs to be identified.  Often another employee may learn of a theft and name a suspect when reporting the theft to management.  Losses are also discovered during routine review of business reports (i.e. cash register shortages) and the losses must be analyzed to identify which employee(s) had the opportunity to create the loss.

Evidence must also be collected during an investigation.  Evidence can include register receipts, CCTV footage, and other reports and documents.  It is important to maintain the documentation in an organized manner so that it is accessible during the investigation and possible prosecution.  If witnesses are interviewed, notes from the interviewer should be added to the case file, along with a written statement from the witness.

Once your investigation is complete, review the collected information and determine if there is enough evidence to interview your suspect.  There should be enough evidence collected from your employee theft investigation that the matter can be turned over to the police regardless of what the employee says in an interview.

For more information contact us about employee theft investigation  or call 1.770.426.0547

By Teresa Greenwood

Teresa Greenwood is a former law enforcement officer currently working in retail loss prevention/asset protection for a major retailer.

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Employment Screening and the Keys to Your House

October 4, 2010 by

Would you go up to a random stranger and hand over the keys to your house, telling him that you are going to be out of town for a while and would he please keep an eye on things?  Probably not, but if you hire new employees without an adequate employment screening program in place, that is essentially what you are doing with your business.

You want to have some degree of trust in the person you hire to perform any function in your business from the lowest to the highest.  Think about the assets you have in your business:  Merchandise, supplies, cash, electronics, vehicles, customer lists and proprietary information, for a start.  There’s also your reputation and the good will of your customers.  Each time you bring in a new employee, you potentially put some portion of your business at risk.

The thought of that is frightening enough, but to bring in a new person without checking on his past performance or character is really scary.  A background check as part of your employment screening program is designed to mitigate your risk.  A background check will not prevent a person from becoming a thief or an opportunist; but it will help prevent you from hiring one.  Most employers feel that it’s better to know all they can about their future employees than to blindly turn over their assets to an unknown entity.

Trust is developed over time, but starting out with an employee who is honest and trustworthy certainly will take some of the uncertainty out of the road to trust.

As a manager or business owner, you have enough on your mind without worrying if your own employees are going to undermine your business through theft or carelessness.  Just as you wouldn’t turn over the keys to your house to just anyone, always start with the best possible employee you can hire by checking the past through employment screening.

We are ready to help with your employment screening questions.  Call 770-426-0547 or click here.

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Employee background checks critical to success

October 4, 2010 by

A comprehensive background check is the first step in hiring quality, character employees. The 2010 University of Florida National Retail Security Survey documents that the majority of retail shrinkage last year was due to employee theft ($14.4 billion). Employee theft accounted for 43 percent of total retail losses in 2009. An estimated 1.7 million people are victims annually of violent crime while working in the United States, according to a report published by the Bureau of Justice Statistics (BJS). 1.3 million (75%) of these incidents were simple assaults while 19% were aggravated assaults. The American DataBank has also documented that up to 30% of job applications and 40% of resumes contain false information. Due to a large number of employers not conducting effective employee background checks, 72% of employers lose negligent hiring suits.   

An effective employee background check should include, at a minimum, the following:

Criminal Background Check: To include Federal, State and County criminal background checks.

Employment Background Check: Confirm dates of employment, Positions held and eligibility for rehire.

Social Security Background Check: Verify Social Security number, identify other names used and residence history.

Motor Vehicle Report / Driving Records Background Check: Identify citations and suspensions.

Protect your business today. Conduct employee background checks to increase profits and reduce the potential for violent crime in your workplace.

For more information on Employee Background Checks call us at 1.770.426.0547.

 

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Making the decision on Loss Prevention Consultants

October 4, 2010 by

Considering hiring loss prevention consultants? Here are a few good reasons why doing your research could make all the difference in the world.

Retailers and businesses alike face many of the same obstacles to making a profit. Employee theft, white collar crimes, physical security issues and many other avenues of loss are all factors in determining your business needs.

Here are a couple of things to consider when looking for Loss Prevention Consultants. In this example, we’ll use Company “A”.  Company A has identified merchandise loss during their inventory process. They are an emerging business with a growing customer base. After their inventory, the management was at a loss. They kept looking at all the wrong places for answers that were right in front of their faces. Merchandise in the liquor department and merchandise in the electronics section were missing in large numbers. The items are controlled stock on the salesfloor and are maintained in employee only area in the back of the store. At this point, it’d be well advised to bring in professionals, Loss Prevention Consultants. 

Company A hired a loss prevention consultation firm and the investigations begun. Advisors arrived to the location and examined everything from forensic accounting to external theft investigations. Looking into the receiving practices proved the merchandise was received when it should have been. An even further look showed the possibility of a couple of associates taking merchandise out of the back roll-up door just after being received. The Loss Prevention Consultants brought in a  loss prevention investigator who gathered the investigation materials and arranged the interview/interrogation of the suspected employees.

The interrogations were performed, and the two employees admitted to the theft. Additionally, the Loss Prevention Investigator was able to get the two employees to agree to a search of their private homes. The local police department was contacted and a search of the employees’ home recovered over $100,000 in merchandise.

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

 

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What can a Loss Prevention Agent do for your business?

October 4, 2010 by

A loss prevention agent can offer a wide variety of services for any business. Their main role or typical job duties involve the apprehension of shoplifters.

Apprehending shoplifters is an important function of the retail environment, especially in areas where instances of customer theft is high. Metro areas, low income high crime areas and the type of retailer can all indicate customer theft trends. Identifying the best fit for your business can make the difference.

As an example, when I worked as a loss prevention agent many years ago, a particular retailer was having a problem with shoplifters. Daily, the employees witnessed customers entering the store, selecting merchandise and simply walking out. The managers were too busy with their tasks, and the other associates were intimidated to approach these customers.

I was assigned to the store with the task of impacting customer theft. Immediately, I identified the “hot spots” or areas where customers left empty packages. I would then take notice the types of merchandise being taken and plot my day out from there. Usually, I would spend the greatest amount of time in the health and beauty section. Just like a customer, I’d dress the part and play the part. I read the backs of product packaging and at the same time I’d glance over and watch the various customers’ habits.

As a Loss Prevention Agent, working this store was fun. It took no time at all to identify the first shoplifter. As time went on, I was apprehending a lot of shoplifters and in a brief amount of time, the shoplift activity slowed.

A good Loss Prevention Agent can dramatically impact the shoplift activity in your stores and businesses. My recommendations for anyone looking to hire a loss prevention agent… do your research and find one that best suits your business needs.

For more information visit us at:  loss prevention agent or call us at 1.770.426.0547

 

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Increase your profits by reducing retail shrinkage

October 4, 2010 by Leave a Comment

According to the website About.com,  retail shrinkage  is a reduction in inventory due to shoplifting, employee theft, paperwork errors, and supplier fraud. A business owner can be proactive in reducing shrinkage by having loss prevention policies and strategies implemented within their store.

Shrink costs retailers an estimated $31 billion a year, according to the National Retail Security Survey report on retail theft.  Retail shrinkage  is an unfortunate part of operating a business, but it does not have to be tolerated. A business owner can help reduce his or her losses significantly in a variety of different ways.

A business needs to have loss prevention procedures in place in order to have consistency when trying to control retail shrinkage. The advice of a professional loss prevention organization is often beneficial in helping a business set up these policies and procedures. All current and new employees must then be taught about theft, shoplifting, and the policies that are in place to reduce these losses.

Businesses often do not recognize that employee theft costs retailers more every year than external (customer) theft. A business owner and managers must be alert to the signs of employee theft within their business. Register shortages, unaccounted for merchandise and empty packages in “employee only” locations can all point to an employee theft issue. Controls such as locked back doors with limited access, accountability with keys to locked cases such as a key log, and CCTV for random video research of employees are all important to help prevent retail shrinkage, and to perform an investigation if there is an employee choosing to steal.

For more information contact us: retail shrinkage or call 1.770.426.0547.

 

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Gaining profits through controlling Internal Theft

October 4, 2010 by Leave a Comment

Controlling internal theft is a daunting task at times.  Retailers and businesses alike are not immune to this “disease”, however there are solutions.

Take a former sporting goods company I worked for. A remote location offered the perfect setting for internal theft. The infrequent district, regional and corporate visits gave the dishonest employees the feeling of being at home with “mom and dad”. The new store manager was in over his head. A high sales volume store, he just couldn’t keep up with the demands of his customers and the company alike. As a result, his store suffered high shrink numbers and deep cuts into the store’s profits.

I took the district over and immediately looked into the root cause of shrink in the store. I talked with associates, reviewed the receiving practices, and conducted external store surveillance and random audits via CCTV of employee only areas. What was the biggest common denominator?  Internal theft!
That’s right, dishonest employees. The manager, who was new to the position, had actually been with the company for a few years. When I approached him to discuss the issues, and what I needed to do, he just could not believe that a couple of his trusted employees, including a supervisor could be contributing to the losses in his store. None-the-less, I scheduled interviews with 5 suspected employees. The first two interviews I considered to be easy. I had video of each of them on 5 separate occasions, taking merchandise from the stockroom and out of the store, passing merchandise off at the point of sale to friends and family and under ringing. The other 3 were a little more challenging. They were well educated, had been with the company for awhile and somewhat aware of what I was doing in the store.

Upon successfully completing the interviews, each admitted to thousands of dollars in merchandise theft and two (including the supervisor) admitted to a couple of thousands of dollars in cash theft. Internal theft can be controlled by ensuring we have the best leadership in place, proper execution of the company programs and a solid loss prevention program.

For more information, contact us at internal theft or call 1.770.426.0547

 

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The truth about Employee Theft

October 4, 2010 by Leave a Comment

It’s no secret, Employee Theft ruins business. It’s a growing and scary trend, and can some times leave a business feeling defenseless, helpless.

There are solutions to employee theft, but the retailer needs to act quickly. Take a look around and truly assess what the business needs. Get a professional to make suggestions. Are there signs of employee dishonesty? Any empty packages in areas only accessible by employees? Is cash missing from safes, registers or deposits?

Understanding the signs of dishonesty can be a big help. As a business owner, these issues, once observed, should be dealt with immediately and without hesitation.

Never forget, a solid investigation will always be needed. Investigations aren’t solely done to nab the dishonest employee; they are done to protect your business. To show the true intent and evidence of the employee or employees involved, and to possibly recover some or all of your losses a detailed investigation of the suspected employee, including evidence gathering and interviewing potential witnesses is very important.

Employee theft is a nuisance. No question about it. However, it is the reality of many retailers and businesses. How you go about dealing with, and preventing the re-occurrence can and will make all the difference when we talk about profitability. Nothing crushes profits more than a dishonest employee.

If profitability is a goal in your company, you must have a plan in place to deal with Employee Theft. It is inevitable. It is part of the business. Be proactive and don’t wait for issues to spin out of control. Have a plan in place, so when a dishonest employee arrives, the concern is immediately address, losses are cut and profitability is protected.

Delivering the desired results is the responsibility of any solid loss prevention program, remaining profitable, driving sales, safety and service should be the outcome.

For more information visit us at employee theft or call us at 1.770.426.0547

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Checkpoint Security System Service Checklist

October 2, 2010 by Leave a Comment

Prior to placing a Checkpoint security system service call to Loss Prevention Systems (LPSI) please check the following:

Check system with a test tag. (Should be done daily). If you do not have a test tag contact us and we will send you one free of charge.

PHANTOMS – (no one near the system)

1. Check for tagged merchandise within 3 feet of the system. This could also be a tag that has been kicked under the Checkpoint security system antennas.

Also look for changes in the environment such as Christmas trees and holiday decorations. Has your display footprint changed? Is a display with checkpoint tags or labels on the merchandise to close?

2. Turn the system off and wait 5 minutes and turn the system on.  If the problem continues, turn the system off and place a service call.

POOR OR NO DETECTION

1. Check the green light on the power supply. Is it on? If not contact Loss Prevention Systems right away. The power supply is probably working.

2. Turn the system off and wait 5 minutes and turn the system on.  If the problem continues, turn the system off and place a service call.

DEACTIVATION UNITS

Check deactivation units with the test tag or DV-1000. (Should be done daily)

1. If one pad is not properly deactivating tags.

A. Check the chassis power supply and make sure it is plugged in and green indicator light is on. (Located under check stand)

2. If everything is on and the pad is still not deactivating shut down that particular register and call LPSI for service.

A. Do not put a cashier on that register until service has been completed.

Your Checkpoint security system is a commercial grade system. It is built for many years of service. However, like your car it needs attention from time to time. Please use common sense when working around a Checkpoint security system. Do not allow water or other liquids to get on it. Keep the antennas and deactivation units clean and free of debris. Do not allow anyone to climb or lean on the antennas.

If you need to order more checkpoint labels or checkpoint tags. Remember we have a “hot line” to order checkpoint tags and labels. 1.770.426.0547 x105.

For more information contact us at: checkpoint security system or call 1.770.426.0547

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