Staff Editor — Page 345

Clothing security needed now more than ever

August 19, 2010 by Staff Editor

Retailers are facing an alarming rise in organized retail crime which is reason enough to install a clothing security system.

The National Retail Federation (NRF) recently reported in their annual Organized Retail Crime (ORC) survey that 85% of retailers said their company has been a victim of organized retail crime within the 12 months. The fourth annual survey also uncovered that 66% of retailers have noticed an increase in organized retail theft activity in the past 12 months.

These organized retail crime rings sell the stolen merchandise at flea markets or online. According to the NRF survey 68% of retailers in the study identified or recovered stolen merchandise and/or gift cards from a fence location. And 63% also say they’ve identified or recovered stolen merchandise from an e-fencing operation.

114 retailers representing all sectors of the industry including drug, supermarket, general merchandise, home improvement, apparel, department and specialty stores participated in the survey.

The most commonly used clothing security among large retailers is an EAS or electronic article surveillance system. Checkpoint Security Systems has 57% of the market in this area utilizing the latest RF or radio frequency technology. The system involves antennas installed in entry/ exit points that pick up protected merchandise which is tagged with Checkpoint tags or checkpoint labels.

To learn more go to clothing security or visit Checkpoint Security Systems

Filed Under: Uncategorized Tagged With: Clothing Security

Don’t confuse security and loss prevention

August 19, 2010 by Staff Editor Leave a Comment

Many smaller to midsized retailers often confuse their definition of security and loss prevention. Just ask them what they are doing for loss prevention and they will tell you they have a security system. (Bear with me this is not a bashing article.)

Let’s define a couple things. First what most call their “security” system is technically a “burglar” system because it is only turned on after hours and will alarm if a burglar breaks in. It does nothing during business hours which is when losses occur. So with that being stated, the words security and loss prevention are in two different ball fields.

In fact, burglary doesn’t even hit the radar when measuring inventory shrinkage in the US. What does hit the radar according to the holy grail of studies in the industry, the National Retail Security Survey by The University of Florida: #1 employee theft, #2 shoplifting #3 Administrative errors, #4 Unknown, and #5 Vendor fraud.

So what is true loss prevention? Let’s look at what Wikipedia says:

Retail loss prevention (in some retailers known as asset protection) is a form of private investigation into larceny or theft. The focus of such investigations generally includes shoplifting, package pilferage, embezzlement, credit fraud and check fraud. Loss prevention” or “LP” is used to describe a number of methods used to reduce the amount of all losses and shrinkage often related to retail trade.

In other words loss prevention involves specific people using specific methods to discover sources of loss and solutions to reduce those losses. Only larger retailers employ these individuals as staff and many that have done so in the past have cut them from the payroll to cut overhead in these rough economic times.

What makes sense is to consult a loss prevention professional to review your specific issues, your current security and loss prevention methods. The next step will be to develop a custom program that will improve your operational effectiveness and reduces your losses whether shoplifting, employee theft or other.

For more info go to: security and loss prevention

Paperwork and Retail Loss

August 19, 2010 by Staff Editor Leave a Comment

Three of the major contributing factors to retail loss are internal and external theft, and paperwork errors. Paperwork errors are frequently the easiest to control and just require some thought and care to prevent. Although this type of shrink would seem to be harmless – since the merchandise is not stolen – it is still a serious problem and a drain on profits.

One of the major contributors to the large overall problem of inventory shortage – retail shrinkage – is carelessness and a lack of control over paperwork.

What causes paper shrink and how can you help to control it?

Receiving. The receiving paperwork says you should receive 30 items, which you sign for, and you only receive 28. Detailed receiving counts will avoid the loss of 2 items.
Breakage, spoilage, items for company use, and other inventory adjustments. Sometimes, physical items are removed from stock for legitimate purposes, only some of which are named here, with the intention of completing the adjusting paperwork later. If we forget, the result is inventory shortage. Complete the paperwork and process it immediately to prevent unnecessary retail loss.
Mispriced merchandise. An item is carried in inventory at $10.00 and priced at $9.00. Every time a sale is made, $1.00 is lost to shrink. Any mistake when marking, changing, or recording prices can mean increased shortage, which means less profit.
Inaccurate counts. At inventory time, when making price changes, or when transferring merchandise, incorrect counts mean unbalanced inventories, which contribute to shrink, which result in unexpected losses to the company.

These are a few of the ways inaccurate, incomplete, or an absence of supporting paperwork can affect inventory. There are many other ways, and you can probably think of more of them yourself.

The way to solid inventory control is to assign jobs correctly; take time to avoid errors; and accurately complete the paperwork in order to complete the job.

Retail loss caused by paperwork errors is preventable.

For ideas on implementing an effective loss prevention program, go to retail loss

Filed Under: Uncategorized Tagged With: retail loss, retail shrinkage

Prevent Shoplifting! It’s Not Getting Better

August 18, 2010 by Staff Editor Leave a Comment

If you are not actively working to prevent shoplifting your business is going to suffer. Shoplifting is not going away. As the economy remains unstable and un-employment is high more people will turn to theft to get what they want. Studies also show that shoplifters shift to unprotected retailers.

I know that from experience that once shoplifters know that you are an easy mark they will return time and time again. They will also tell their friends who also shoplift. You slowly become a magnet and with out realizing it your profits drop.

What measures do you take to prevent shoplifting?

Training!!! Anti-shoplifting training. You can’t do it just once you have to refresh and train new people.

Checkpoint Electronic Article Surveillance (EAS) systems. Tag and label your merchandise. This will act as a labor multiplier. This means less labor dollars to watch the same amount of sales floor. A shoplifter tries to steal and they are caught at the door.

Do not be afraid to approach a suspected shoplifter. They want to remain anonymous. Give them the feeling that you know, see and are helping them. Customer service! Shoplifters hate it.

Don’t wait prevent shoplifting now before you loose any more profit.

Filed Under: Uncategorized Tagged With: Prevent Shoplifting

The number one biggest surprise found in a corporate fraud investigation

August 16, 2010 by Staff Editor Leave a Comment

There are a few common surprises our clients experience when conducting a corporate fraud investigation and it happens like clockwork.

First just to state the obvious, we are contracted to help businesses figure out what has been going on in their business… what they have not been able to identify. That alone is a hurdle many business owners and or managers never get over. Admitting to an outside source that there is something out of control is a very difficult process for many. Usually this happens only after a very long period of losses occurs and the pain is so great that facing the truth of what is happening hurts less than the pain the issue is inflicting onto the bottom line.

The number one suprise in a corporate fraud investigation is that usually the person stealing is never the person that is suspected of stealing. Quite often it is the last person anyone suspects. Thieves can be very good at their con of winning favor and influence within an organization. This is the trust they use to steal. Usually this person is in some form of management that gives them the freedom they need to steal.

If the person stealing is the suspect, at that time it has likely been going on for so long that they got sloppy and left a trail that was obvious. At this point the case could easily be into the seven figures.

If you suspect you are a victim of corporate fraud you owe it to yourself to consult a professional regarding a corporate fraud investigation .

The leadership of Loss Prevention Systems has conducted thousands of cases, recovered and prevented millions in damages and has a 100% conviction rate for those clients who pursue that end.

Visit here for more information: corporate fraud investigation

Filed Under: Uncategorized Tagged With: corporate fraud, corporate fraud investigation

Use of Clothing Alarm Tags

August 14, 2010 by Staff Editor

One of the best inventions to protect retail merchandise is the clothing alarm tag. These tags come in many forms but the basic concept is that a hard plastic tag is placed on a piece of clothing. The tag can only be removed by store personal at checkout.

Clothing alarm tags are normally used with an Electronic Article Surveillance System (EAS). If a shoplifter attempts to take the item out of the store it trips the alarm on the EAS system alerting store personnel.

There are also clothing alarm tags that contain vials of permanent ink or dye. This type of tag is called product denial. If the shoplifter attempts to remove the tag forcefully the pressurized vials break and spread ink on the item ruining it. These tags can be used with an EAS system.

Other clothing alarm tags have built in alarm sounders. They have an aircraft cable that can be looped through leather jackets or other expensive coats. If the shoplifter attempts to cut the cable or force the tag open the internal siren goes off. These tags can also be used with an EAS system.

For more information contact us or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: clothing alarm

The Police & Employee Fraud

August 14, 2010 by Staff Editor Leave a Comment

Many business owners are under the impression that the Police will conduct investigations into employee fraud. While this may be correct in a few situations. The fact is that most law enforcement agencies are busy. Their caseload is overwhelming, and as a former Police Officer I can tell you that most crimes reported do not get investigated. There is simply not enough officers and budget money to handle it all.

Therefore, if you go to them with a mostly unsolved situation of employee fraud they will take a report but in most situations nothing more will be done. Even if they do take the case on the fact is that very few Detectives know how to investigate employee fraud and theft. That is why the retail industry has Loss Prevention Departments. LP professionals are specialists in this type of investigation. A good LP investigator can conduct the average employee fraud or theft investigation in just a day or two.

After the facts are gathered a good LP investigator will interview the subjects and generally obtain a written admission. After putting the necessary elements of the investigation together a presentation can be made to the Police or Prosecutor.

More about employee fraud investigations, contact us or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: employee fraud

CCTV, Retail Theft & The Solutions

August 13, 2010 by Staff Editor Leave a Comment

So you have a CCTV system. That is not the end of your retail theft problems. CCTV like any other tool is ineffective unless used properly. To deter retail theft consider the following:

Employee Theft – To make the CCTV system more of an active system rather than passive try bringing in an employee every few weeks and discuss with them something you observed. For example, bring in a cashier, show them a short video of them checking out several customers. Complement them on their work. Not only the speed at which they processed the customers through the line but also that they are friendly and appear to be engaging. Make it ALL about complements. When they go back out to the sales floor what will they be thinking and telling others? “Wow, that felt good but they understand that they are being observed”.

Shoplifting – Having a signs that tell customers and shoplifters that you have a CCTV system or that it is live and being watched are fine but not the main way to make the system appear to be active. Try waiting until a customer or a suspicious person is in a concealed area or acting odd and then approach them. Say, “I noticed on our camera system that you seem to need some help. Can I help you with….”? Do this enough and word get around.

Vendor’s – This can be handled by combining the techniques for employee theft and shoplifting above. Bring the vendor or delivery person into your office and with that camera or clip of video playing where they can see it ask them about a discrepancy or issue with a delivery. You should also consider a positive comment such as “I noticed you working carefully and paying close attention to what you delivered. Thank you.” You could even e-mail a short video clip to their supervisor or upper management and complement them on the work this person is doing. That information will spread.

CCTV is a great tool to prevent retail theft if you use it fully in “active mode”!

Filed Under: antishoplifting Tagged With: retail theft, shoplifting

Vendor Fraud and Retail Loss?

August 13, 2010 by Staff Editor Leave a Comment

Yes, vendors the very people that supply you with merchandise have stolen from retailers. We are not saying that every vendor will do this. Most suppliers are hard working and trying to earn and keep your business. But vendor fraud accounts for approximately 5% of a retailers losses.

However, They are a business just like you. If they have employees that are stealing this could affect you. How? Say you are supposed to get 24 items in a carton. But a thief in the vendors facility only packs 23 to a carton in your shipment. They take the lost one out of each and put it in the trash then come back later and get them out of the trash.

Sound outrageous? We have done hundreds of these retail loss investigations in our experience. If you are only checking in the cartons and not piece counting you are putting money in that piggy bank of the vendors thief.

I some cases the vendor them self will short a shipment. If you do not catch it then they get paid in full at your expense. We have caught several very large, well known companies doing this.

How do you stop this? We have proven methods to protect you from this type of retail loss and fraud.

Filed Under: Uncategorized Tagged With: retail loss

Hire a Corporate Fraud Investigator to get the truth and build a rock solid case

August 13, 2010 by Staff Editor Leave a Comment

Serious employee theft issues require the use of a corporate fraud investigator to get the best results.

Let’s look at how the FBI defines corporate fraud :

Corporate fraud investigations involve the following activities:

(1) Falsification of financial information, including:

(a) False accounting entries;
(b) Bogus trades designed to inflate profit or hide losses; and,
(c) False transactions designed to evade regulatory oversight.

(2) Self-dealing by corporate insiders, including:

(a) Insider trading;
(b) Kickbacks;
(c) Backdating of executive stock options;
(d) Misuse of corporate property for personal gain; and,
(e) Individual tax violations related to self-dealing.

(3) Obstruction of justice designed to conceal any of the above-noted types of criminal conduct, particularly when the obstruction impedes the inquiries of the SEC, other regulatory agencies, and/or law enforcement agencies.

Sometimes there is only one employee that commits the corporate fraud and other times there are more involved. Uncovering these issues and building a rock solid case in order to get the truth, a criminal conviction (if desired) and quite possibly even recovering losses are not something corporations are set up to do themselves.

Typically a corporate fraud investigator will work as part of a team. This team will also consist of one or more attorneys and one or more Certified Forensic Examiners (CPA with fraud investigation training).

Go to corporate fraud investigator to learn more.

Filed Under: Uncategorized Tagged With: corporate fraud, corporate fraud investigation, corporate fraud investigator, employee theft