Internal Theft – An employees guide to misappropriation? Atlanta

September 30, 2010 by Leave a Comment

I know what you’re thinking? internal theft ? What the heck is that? Boy, if a retailer could really have the luxury of wondering.

Do this, imagine a nice beautiful airplane. You spent lots of money on building her up, beautifying her and are ready to get your customers going. The maiden voyage comes. It’s great. You have a solid customer base, you take on extra airplanes. You’re kicking back, enjoying the fruits of your hard labor when all of a sudden, you get a call. An airplane of yours is falling from the sky. You have a seasoned pilot at the wheel but he can’t control it without immediate and urgent help. You need to react quickly before it’s too late.

That’s kind of an example of what internal theft can do to your business if left unchecked. Employee theft and employee fraud claim millions of dollars each year from retailers and business owners across the country.

A former company I worked for had just that issue. This employee was a well liked and trusted individual. They had worked for this company for 20 + years, had keys to the store and manager level access to all alarms, and access control points.  They could do no wrong.  Merchandise went missing. Thousands of dollars worth. Where was it going? We investigated every single employee in the building. We looked at the receiving process, interviewed vendors. NOTHING! Only one answer, the employee everyone thought was above this. The trusted one.

We went completely black. Spoke with no one other than our immediate supervisors. We conducted surveillance on the long term employee, just 1 day and 1 night. Got him!

I can’t tell you what a relief it was to speak with the store management and corporate staff about the investigation we had just conducted and completed. The disbelief.

I interviewed the suspected employee, who subsequently admitted to over $135,000 in merchandise theft. Internal theft certainly was the case.

Internal theft can come quickly when controls are loosened or lax, be prepared. Never underestimate anyone and always perform due diligence on any investigation to truly uncover the causes of employee theft and employee fraud in your business.

For more information on employee theft or employee fraud in Atlanta please contact us at internal theft or call 1.770.426.0547

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Anti Shoplifting And Weird Shoplifters

September 29, 2010 by Leave a Comment

I have recently been thinking back on the anti shoplifting programs I have either designed or worked under. I have apprehended quite a few people shoplifting over the years. In most of these I did not have checkpoint security systems to support me. I had to locate and stop the shoplifting “customer” without any help. A few of the more weird ones:

I apprehended a woman shoplifting that was a Nun at the time. I told the court that I thought, “It might be a hard habit to break for her”. The judge even liked my bit of humor.

Another involved a person who shoplifted a framed picture of Christ (no religion does not play into this over all). I really could have used checkpoint tags on that merchandise, as I did not even think someone would steal one of those.  I guess I thought somewhere in the back of my mind from my Catholic background that lighting might strike him or something.

A co-worker of mine caught a County Court Clerk shoplifting. Wow. Wouldn’t you hate going into work after that? I bet the Judge she worked for was not happy.

Checkpoint security systems did play into the one guy that decided to run out the door with an armload of merchandise with checkpoint tags on them. The system going into alarm distracted him and he ran into the door-frame. You guessed it, out cold on the floor. That particular store chain did not even conceal the checkpoint tags. What did he think would happen?

Actually I like shoplifters for the entertainment they provide. If it were not such a serious problem it would be funnier. I really like the ones that when the checkpoint security systems catches them at the door, they profess sternly that they do not have any unpaid merchandise on them. But when we are escorting them to the office they are pulling stolen items out and dropping them on the floor… OMG, some of these people should not be out on the street without adult supervision!

Shoplifting is not a laughing matter. You have to have a serious anti shoplifting program in place or you will not survive the jokers out there that have no moral problem with cleaning you out.

For more information on an anti shoplifting program contact us: checkpoint tags or call 1.770.426.0547

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Background Checks (2 Quick + 2 Cheap = Not 2 Good)

September 29, 2010 by

If you’re shopping for a background check company for your company for the first time or to see what’s out there, be advised that there are a lot of companies and claims out there.

Some will claim “instant” results for a criminal check.  Others will tell you that their check is “Nationwide”, or a national criminal record check.  Some will offer to conduct your employee background check for a dollar or two.  A reputable company will discuss your requirements and let you know honestly what to expect in the way of results and costs, as well as what your obligations are as an employer to your applicant.

You didn’t get where you are in business by believing everything you hear, so be sure you are going to get your money’s worth before deciding which background check company to use.

If your results are back to you instantly, you have probably received them from a company that utilizes a commercial database.  The results may be for your applicant or it may be for someone with a similar name.  It’s generally left up to the employer to determine the true identity.  Most databases upload information from public data providers no more frequently than monthly.  Some are more infrequent than that, which leads to more recent and current criminal activity being unreported.

If your cost is ultra cheap for each criminal search, will you truly be able to rely on the expertise of your provider to explain results when necessary.

Remember that each background check is different from another, and the cookie cutter approach to background checking may not be the best value for you.

Use care when selecting a background check company and be sure that you select a company that will partner with you to deliver an excellent value and a product you can trust.

Call 770-426-0547 for assistance in setting up you background screening program or click here for further information.

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Pre Employment Screening as a Deterrent

September 29, 2010 by

How much time could an employer save if undesirable or unqualified applicants just didn’t apply for open positions in the first place?

Letting all applicants know – up front – that your company conducts a pre employment background check on everyone as part of the applicant screening process is often enough to discourage potential applicants who have something to hide from applying.  Let them know that you do check relevant claims on the resume, such as previous employers, education and address verifications, as well as the information contained on the application, and that you do conduct these checks early in the hiring process.  If an applicant seeking a position with your company is aware that he will be facing scrutiny through a comprehensive background check, he may either decide to not pursue the position at all or to be more open and honest when describing his past and abilities, allowing a decision to reached more expeditiously.

The earlier in the process an applicant reveals any potentially adverse information, the more likely the potential employer will be to consider the relativity of the information to the position offered.  The attitude of the applicant is often, “If I can just talk to the hiring manager, I can explain this issue”, but this approach will usually not work if information has been withheld, falsified or embellished by the applicant.  However, if the applicant is honest up front, the chances are greater that the message will be heard.

The bottom line is that the sooner an under qualified candidate removes himself from the pool of potential hires, the more time that can be spent qualifying candidates who are   would truly be good fits for the open positions.  Similarly, the sooner a lesser qualified individual is removed from the process by a pre employment screening process, the better for all concerned.

For information on a personalized pre employment screening program for your company, call 770-426-0547 or click here.

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What can a Loss Prevention Agent do for my business?

September 28, 2010 by

A loss prevention agent is an expert at reducing loss and increasing profits for a business owner. Any type of business can be the victim of theft from customers or employees: to what extent depends on what the business owner does to prevent and deter this activity.

For example, a business owner may not notice that a certain area of his store may attract shoplifters but a loss prevention agent is trained to spot these theft “hot spots.” Shoplifters tend to identify these comfort zones better than the employees themselves. A business does not want to help provide the opportunity for shoplifters to steal!

Businesses can also teach employees how to react to suspicious customers by having a consultant provide training. Employees can be taught how to identify a potential thief, and what to do to deter theft. Employees that do not receive such training when they are hired may not have any idea how to react should they notice that a theft is occurring or is about to occur. The resulting loss can be extremely frustrating for the business owner or manager.

Businesses might choose to bring in a loss prevention agent when they have a potential employee theft issue. Employee theft costs businesses more on average than customer thefts, and when this occurs it is an excellent time to bring in an expert. These experts are trained in retail fraud and conducting these types of investigations. Experts can also write or advise about policies and controls that should be implemented in order to help prevent future employee theft.

The possibilities are endless on how businesses can benefit from the expert advice of a loss prevention agent.

For more information contact us: loss prevention agent or call 1.770.426.0547.

 

 

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Security and Loss Prevention similar but not the same

September 28, 2010 by Leave a Comment

If you are or work for a small to medium sized retailer with less than ten locations you may be thinking security and loss prevention are one in the same.  Most retailers that size do not have a loss prevention staff or even a program in place.  Many that I run into will respond, “I have a security system” when I ask about their loss prevention situation.  What they mean to say is “I have a burglar alarm.” 

A burglar alarm, known as a security system, is armed when the facility is closed and no one is in the location.  Just stating the obvious, when a protected point such as a door or window is breached it sets of the burglar alarm which triggers a string of events that will result in the police being dispatched to the location. 

Retail loss prevention will include a burglar alarm to protect assests when the facility is closed; however, most retail losses accur when the store is open.  Taking a look at other security and loss prevention solutions are CCTV (surveillance cameras).  CCTV systems are great for recording events where loss occurs so that you can retrieve the evidence for use in court etc…

An active loss prevention security solution is an EAS (Electronic Article Security) system such as Checkpoint Systems.  Checkpoint systems involve installing antennas at doors that detect anti theft devices that are placed on merchandise.  These anti theft devices are either pinned on or are labels that are stuck on.  When a shoplifter approaches an exit with merchandise that has not been paid for the Checkpoint system will alarm alerting staff of the issue.  This catches the shoplifting in the act, thus a Checkpoint system is considered an active  loss prevention security method.

For more information and or to learn about your options for protecting your merchandise visit:  security and loss prevention 

 

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Employee Fraud – A sample of Loss Prevention in Atlanta

September 28, 2010 by Leave a Comment

Let’s talk a little about corporate fraud , a sometimes underestimated and misunderstood factor of internal theft.

Employee fraud is a very much relevant dishonest trend amongst all levels of employees. From corporate fraud , white collar crime to the store associates ringing on the registers for 8 hours a shift. All subject to it, some fall into it. Now corporate fraud and white collar crime are a true threat, the instances are not as common as the young full time employee ringing on the register. They are not faced with the same daily temptations. Both are equally destructive, yet one stands out as the true indicator of employee fraud.

As an example, we had a cashier. He was a young, part-time man…about 19 years old. He discovered a unique feature of our cash register systems. The system allowed him to use multiple coupons for items he wanted to purchase. On his lunch break, he took a handful of the store’s ads from the front display and went to the Break room. Over the next 45 minutes, he cut out various and multiple coupons of items he thought he could sell at his uncles’ shop in the downtown area.

Using his employee discount along with several coupons, the employee would ring the items for just about free, and at times would get some cash back. He scanned multiple coupons, multiple times. He had discovered competitors coupons with our company’s endorsement and in-house coupons (those created by our corporate office) were not flagged for multiple use in our stores register system. So an electronic toothbrush for $50 retail was sold to him using 5 $10 off coupons. What a deal.

After a loss prevention investigation, I was able to discover the trend of the employee fraud and identified several fraudulent transactions that later caused problems for him and his uncles’ side business.

The retailer subsequently made changes to their register system and advertisements to impose disclaimers on usage.

Employee fraud may not be the easiest to identify, but it is a regular occurrence amongst retailers.

For information on employee fraud or white collar crime in Atlanta please contact us at employee fraud or call 1.770.426.0547

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Don’t Pressure Wash Your Checkpoint Systems…No Really!

September 27, 2010 by Leave a Comment

Your Checkpoint security system is very robust commercial grade equipment. Checkpoint systems R & D has invested millions of dollars in design. It is not a cheap knock off system.

Checkpoint systems are installed by factory trained Technicians that understand not only how to bolt the system down but more importantly the radio frequency (RF) technology that surrounds it. Our Technicians use Checkpoint computer software or an oscilloscope to tune it.

So after all of that please use common sense when maintaining it. Here are a few stories from our files of customer “errors”:

One customer decided to move the system. When doing this they did not power the Checkpoint security system down properly. They simply cut the wiring! This resulted in blowing out two electronic boards that cost in excess of $500 each to replace. Oh and by the way even if he would have successfully powered the system down and moved it. The Checkpoint security system would have probably not worked right since it must be returned for the new location, even if it was only moved a few feet.

Another customer decided that they couldn’t get the anchor bolts loosened on the antennas so they just rocked it back and forth until the antenna snapped off.

Yet another did not see any problem with allowing children to climb on an antenna like a ladder. That Checkpoint systems antenna was a complete loss.

And yes, we had someone use a pressure washer on two antennas. Needless to say both Checkpoint security system antennas were a complete loss. Ouch!

Oh well I guess it is just money?!?

Wherever you are in the U.S. we can send one of our Technicians to take care of your Checkpoint systems.

For more information contact us at: checkpoint systems or call 1.770.426.0547

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The Criminal Background Check and the FCRA

September 27, 2010 by

A number of employers are unsure of the elements that comprise a criminal background check .

A background check company and the information it provides to the End User (the customer) is regulated by the Federal Trade Commission and the FCRA, the Fair Credit Reporting Act.  Under the FCRA, booth the background check company, also known as a Consumer Reporting Agency or CRA, and the customer have certain rules to follow.  Although many employers think the FCRA regulates only credit reporting, but that is far from the case.

As far as criminal records are concerned, the FCRA restricts reporting of any arrest that does not result in a conviction beyond seven years in the past.  Some examples of non-conviction are acquittals, nolle prossequi, withheld or deferred judgments, successfully completed first offender programs, dead dockets, and others.  Any arrest or disposition that occurs within the seven-year window may be reported to the end user.

Arrests that result in convictions, however, may be reported as far back as records are available.

But there are certain states that have reporting restrictions that are even more stringent than the Federal Government’s.  All End Users should check their local laws, or ask their background check company for the states that are more restrictive, and what restrictions apply.

A “rule of thumb” for many employment screening companies is to check the records back seven years only.  Be sure to ask your company what their policy is regarding years searched, and what you prefer for your pre employment background check program.

For further explanation and information regarding criminal background checks and the FCRA, click here, or call 770-426-0547.

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Is clothing security necessary for my business?

September 27, 2010 by

Retailers that sell clothing have to consider what type of clothing security they would like to use for their business.  There are many options out there for the business owner to choose from – from absolutely nothing to top of the line EAS systems.

Potential shoplifters look at such security measures when deciding whether or not to steal from your business.  They can be more alert and savvy than we give them credit for.  Clothing is an extremely common shoplifted item:  it can be easily concealed within a purse, in a coat pocket or even worn out of your store by the thief.  Utilizing clothing security is a smart business move that can substantially boost your business’s profits.

There are ways to remove or “beat” clothing security tags; ways that are easily found on the internet. This can be a challenging task for the thief, however, when he or she is within a retail environment with EAS alarms at the doors and employees just around the corner.  If a potential shoplifter notices that your items have a security device, they will move on to the next retailer that does not.  Clothing security is a win-win for minimal investment and it can have a tremendous impact on your net profit.

For more information visit:  clothing security or call 1.770.426.0547.

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