Retail Theft: The Scourge Of Business

September 10, 2010 by Leave a Comment

Shoplifters and employees that steal are about the lowest forms of life. They cause retail businesses billions of dollars in retail theft. There are several entire industries devoted to anti shoplifting and employee theft. Still these people cause us headaches. As a former Director of Loss Prevention for several major companies I have found that much of the problem of anti shoplifting and employee theft falls with the retailers themselves.

Theses types of retail theft must be attacked daily. You cannot let your guard down. You must have loss prevention program than focuses on prevention. Take shoplifting as an example. Anti shoplifting programs such as Checkpoint security tags do little if the employees are not supporting the program. Seek out employees that are enthusiastic about prevention and their jobs. Use incentives such as bonuses or contests. Make those employees the core of your retail theft prevention effort. If they are into it then others will come along.

One of the key issues that retailers must keep in the forefront of their over all plan is training. Training that is focused on prevention pays dividends beyond just shoplifting prevention. One of the key prevention tactics in anti shoplifting is customer service. Shoplifters hate customer service. They want to blend into your “normal” customer base. They do not want to stand out in any way. If your employees emphasize customer contact and follow up this in itself will shut off a portion of your retail theft. This in turn benefits your overall sales because your good customers like the attention. To stop more hard-core shoplifters you need to practice stronger  anti shoplifting techniques.

Another area that is often overlooked is the use of a tag alarm system such as Checkpoint security tags. Again, it goes back to training and management’s enforcement. How many times have you see a tag alarm go off at the front door and the employee simply waves the customer through? Do you think that this is company policy? Very unlikely. The employee is thinking that they just rang up the customer. They know that they got everything the customer put on the POS. So it must just be the Checkpoint security tags that did not get deactivated right? Wrong, what the employee did not think about is the item that the “customer” had concealed on their person. The tag alarm caught it, the employee didn’t. Training, training and more training. Then hold employees to the standard!

For more information: shoplifting or call 1.770.426.0547

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So You Think You Are Hiring A Good Employee?

September 10, 2010 by

Bet you didn’t know some folks don’t realize when they fill out a job application that they may have committed a crime sometime in their life that could show up on background checks . Yes, they will sit there with the blank face, open mouth stare when you tell them, “Sorry, we have to let you go, you have a police record”. They checked no on the application where it asks if they have been convicted of a crime. They listed their pastor as their reference. Shoot, they even worked as a baby sitter! How much better does it get than this? A few days later, cash is missing. You have never had a problem before.

In these days of privacy, getting accurate and informative references is becoming more and more difficult. How many phones calls have you made to be only given the dates of employment and the job title the candidate held? Shoot, most major companies are outsourcing employment history. Unless it is a personal reference, there is no reference and how informative are those? Think about it, these are folks are hand selected to give positive information about the candidate. Chances are; everything is going to be rosy!

So you are starting out not really knowing what their attendance record looks like none the less why they really left their previous employer. Every bit of information you have about them comes from the interview, their great chance to sell themselves to you. Can you spot the con artist? Along comes …The Background Checks! This can be an employers silver bullet. No, it will not give you all the answers but, it will eliminate the folks that have had sticky fingers in the past, got caught and prosecuted! Be it money, merchandise or time. People steal from their employers in different ways. You will not know unless you run background checks on them if they are guilty of any of the above. Do not get burnt too badly before becoming a believer in background checks.

For more information contact us at background checks or call 1.770.426.0547

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Loss Prevention Consultants offer a fresh view of your business

September 10, 2010 by

Hiring loss prevention consultants can be a real eye opener for businesses looking for opportunities to tighten up operations and boost profits. The old saying that you can’t see the forest for the trees as well as the reverse can be true.  Often there are big picture issues that business owners and managers overlook because of the daily routine getting in the way…but more often that that it can be a small detail that is overlooked and costing profits.

For example a “no sale”…a common employee theft we see is fraudulent voids or refunds.  A detail we look for that usually precedes and follows the fraudulent act is a no sale.  The preceding no sale is where the employee gets an idea of what is in the cash till and this info guides the fraud.  Then the fraudulent refund or void is conducted but the cash is typically not taken out at that time because the time involved to do all of that is too long and it is more easily noticed.  So later that day or even right before close there will be another no sale and that is when the cash is stolen from the till.

We recommend all our clients set up a policy that for no reason should there be a no sale.  If a customer want change send them elsewhere.  Some POS systems even offer the feature to not allow no sales or require a printed “no sale” ticket that would need to be completed and accounted for.

For more information contact Loss Preventoin Systems in Atlanta or go to: loss prevention consultants

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Employee Background Checks… What is the Applicant Hiding?

September 9, 2010 by

Most employers who conduct  employee background checks look first to determine if their applicant has a criminal history.  While this is important, there are other factors to consider when performing an employee screening.

Today, we’ll look at previous employment references, and what the employer should consider.

First determine if the previous employer is legitimate.  A reputable background screening company won’t depend on the contact information provided by the applicant, but will contact an actual human resources representative or other record keeper to verify employment information.  While this information may be limited by company policy, chances are the records are accurate as to dates of employment and position.  Some companies will provide more information such as eligibility for rehire or the reason for termination.

Which brings us to the question of inaccurate dates of employment provided by the applicant.  Frequently, date stretching is done deliberately to cover periods of unemployment, a negative job experience, or even incarceration, and should not be overlooked during a background check.

Overstating the job title is also a red flag.  An applicant may attempt to enhance his prospects by inflating his responsibilities and abilities to obtain a position for which he or she is unqualified and lacks the skills; a fact the employer may only discover when it is time for a performance review.  A hiring mistake based on this misinformation can be annoying and costly.

Pay attention to any gaps in employment history and periods of “Self Employment”.  Have the applicant adequately explain these periods to determine the validity of the claims and the reasons for them.

The ultimate question is this:  Has the applicant represented himself truthfully regarding his previous employment or has he misstated his responsibilities, time on the job, or reason for leaving?

The employee background check is a valuable tool to assist employers in making optimum hiring decisions.

For further information on employment background checks, contact us at 1-770-426-0547 or click here.

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Subcontracting a loss prevention agent in Atlanta a great value at $399 per month

September 9, 2010 by

 

Many businesses are considering subcontracting a loss prevention agent as a solution to problems with short staffing.  The down economy has just about all businesses looking at lowering overhead costs.  Payroll is at the top of the list and often one of the first areas business leaders look at to get costs down.

Companies who have loss prevention staff have most likely not only let go of in store personnel but cut back on regional staff as well.  This means the loss prevention program is not being worked regularly at the store level.  Unfortunately since 43% of all inventory shrinkage is due to employee theft, and the em[ployees know when there are staffing cuts, they can see this as an opportunity to steal more and more often.

A loss prevention agent will start by simply observing the current daily practices, procedures and facility.  A loss prevention audit should then be performed to organize findings and develop a loss prevention plan.  This plan is then put into practice through employee training, supervision and reinforcement.

Loss Prevention Systems, Inc. of Atlanta offers an outsourced loss prevention agent plan for as little as $399 per month.  This will include the initial audit as well as random unannounced audits throughout the year.  An allowance for employee theft investigations is included as well as regular reports, loss prevention posters for employee areas and more.

To learn more go to: loss prevention agent 

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Shoplifting And Pond Scum – Both can be controlled!

September 8, 2010 by Leave a Comment

Shoplifting is just a fact of retail life, kind of like the “worlds oldest profession”. It is not going to go away. And if you are naïve enough to think that it will not happen to you then don’t read any further since you won’t be in business much longer.  But if you are a retailer you understand that shoplifters are like pond scum, it stinks and is a distraction from the beautiful environment you have created.

The key to preventing shoplifting is no different than any other business problem. You have to control it and minimize the distraction so you can stay focused on what is really important, selling and making a profit. This can be achieved by using an Electronic Article Surveillance (EAS) system. And as huge coincidence we happen to be able to sell you a checkpoint security system.

But getting back to the issue. An EAS system is a proactive system. Many retailers are under the impression that if they put a camera system (OK, we sell those also) in that this will deter shoplifters. Camera systems are passive. Unless you are watching it live all the time it will not be effective. In addition the cost to cover every place in the store where a shoplifter may hit you is in most cases cost prohibitive.

Merchandise is tagged or labeled when the shoplifter attempts to steal the item they trip the sensors at the front of the store alerting store staff. The product stays tagged at all times until your people remove or deactivate it. Its proactive, 24/7. No video to watch or review. Shoplifters know what the systems look like and how they work. In most cases they just simply go elsewhere (like your competitor who isn’t protected).

Again, the key is to do this in the most profitable way possible. You have enough to do every day. I guess you can sum it up this way; a checkpoint security system is like having shoplifting prevention on autopilot.

For more information: checkpoint security system or call 1.770.426.0547

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Loss Prevention in Atlanta…Do You Have a Plan?

September 8, 2010 by Leave a Comment

Most large retailers in Atlanta and elsewhere suffer “shrinkage” of less than 2% of their revenue, but did you know that small business retailers often suffer “shrinkage” of up to 20% month over month?  If your business does not have a loss prevention plan, get one, NOW.

Loss prevention involves all types of retail item loss.  According to Wikipedia, the following outline losses of inventory percentages and their causes:

  • 46.8% from employee theft
  • 31.6% from shoplifting
  • 14.4% from administrative error
  • 3.75% from vendor error
  • 2.86% from unknown error.

The above listed reasons are not the only culprits for loses.  Credit card fraud, check fraud, and skimming can also be considered causes of “shrinkage”.  So what can a small business do to prevent these types of problems from occurring?

Have procedures in place such as the method a cashier checks out a customer? Have them check the bottom of the basket first.  “Bottom of basket” loss occurs when either a customer does not indicate other items are below where the employee can’t see or they are forgotten.  This can be prevented with proper training of employees.

I’ve noticed many retail outlets have anti-shoplifting alarm systems on articles, such as clothing.  However, when the article passes through the alarm and it goes off, no one responds.  Have a loss prevention employee that is responsible for checking the bags and receipts of existing customers.

By having a plan in place, you can decrease the “mysterious disappearance” of items in your retail outlet. 

Need additional advice on loss prevention?  Contact us at loss prevention   or call 1.770.426.0547.

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Employee Fraud….Cash is King in Atlanta

September 8, 2010 by Leave a Comment

A study done by the Association of Certified Fraud Examiners titled the 2008 Report to the Nation on Occupational Fraud and Abuse reported that companies with less than 100 workers are “the most vulnerable to fraud and abuse” by employees. Employee fraud is rampant and the number one fraud scheme is embezzlement. This also applies to businesses in Atlanta.

More than 80% of all employee fraud investigations involve some type of embezzlement.  Embezzlement is defined as an employee taking company assets.  What is targeted over 90% of the time? COLD HARD CASH!

The theft of cash is considered direct fraud.  This type of employee fraud is called a cash theft scheme.  Direct fraud means the employee has stolen cash, tools or other assets.  This can also include falsifying purchase orders or invoices and pocketing company funds. This is commonly called fraudulent disbursement of cash.

Indirect fraud can include an employee taking payments from vendors or customers to allow for some sort of advantage, such as lower sales prices.

Many types of fraud schemes can continue for years without detection and cost small businesses millions of dollars.  Unfortunately the report also showed that occupational frauds are much more likely to be detected by a tip from an employee or insider than by audits or any other controls. This is most likely because many companies do not put enough emphasis on auditing as a prevention tool.

If you feel your company or small business is threatened by employee fraud, contact us at employee fraud call 770.426.0547.

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Newer small option for Checkpoint tags

September 7, 2010 by Leave a Comment

Checkpoint systems is now offering a small option in its line of  checkpoint tags.  The “pencil tag” is  checkpoint systems smallest anti theft tag measuring .5″ x 2.2″.   Shown below with optional lanyard:

Also available in grey:

These checkpoint tags are small enough for very small merchandise such as bikinis, shoes, hats and accessories.  They offer security without being obtrusive allowing for better merchandise visibility and display-ability.

These and other checkpoint security tags are held in place with pins

Inside of the  checkpoint tags are clutches that grab the pin locking it into place and they can not be pulled out.  To detach the pins a special detacher must be used.  This detacher is mounted to the cash wrap and allows the cashier to quickly and easily remove the security tags to be re used on other merchandise.

There are several checkpoint tags available that come in many shapes and sizes and colors.  They can be used with pins only or also with a lanyard of varying lengths for looping the security tag through or onto merchandise that can not be pinned.

If you have a checkpoint security system the key is to always use genuine checkpoint tags and labels.  There are cheaper copies out there mostly from Asia and there are several issues with the copy cat products.  The copies can be easily broken open at the seams due to cheap manufacturing, the have a high failure to alarm rate and the copycat labels will both not deactivate but also reactivate at a 15% to 25% rate.  This is a huge hassle since failed labels will cause staff to stop and address the alarms that are not shoplifting issues.

For more information visit: checkpoint tags

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Checkpoint labels available in printable price tag form

September 7, 2010 by Leave a Comment

Retailers looking to cut labor time and increase loss prevention measures are moving towards printable checkpoint labels.  If you are a retailer using checkpoint systems to stop shoplifting problems and you are currently labeling your merchandise you should take a look at your options with checkpoint labels.  Checkpoint systems offers a variety of printable labels both in thermal transfer and direct transfer media.

A thermal transfer label will receive ink from a ribbon in the printer.  This method is preferable due to a couple factors.  The print shows up much better and the labels do not discolor like the direct transfer labels.  Direct transfer labels are coated with a material that reacts through a static electricity type process to make the coating generate an image.  There are no ink ribbons in this type which may seem to be a benefit; however without the ink the image produced is less prominent and the labels can fade as well as discolor due to their nature.

Aside from thermal transfer or direct transfer checkpoint labels you can choose size of label.  There are two that are most popular, the checkpoint 410 and the checkpoint 615.  The 410 is 1.5″ X 1.5″ and the 615 is 1.125″ X 2.25″.

The labels can also be purchased pre printed with your choice of printing on them.  This offers a great disguise such as “Great Buy” or “Sale” etc…  You can even get your logo printed on them.

For more information go to:  checkpoint labels

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