Senior Citizen Shoplifting

July 16, 2015 by Leave a Comment

shoplifting3

There is truly no profile of a shoplifter.  Men and women shoplift as equally, and juveniles made up 25% of the shoplifting around this country.  The other 75% of shoplifters comprised the men and women and the senior citizens as well.  Shoplifting is a crime, so why do senior citizens do it?  There are many reason and many studies  why people shoplift, and in the case of the senior citizens those reason are many.

To read more about this topic follow the links below for more information.

Local 4 Defenders: senior citizen serial shoplifter

The Defenders investigate the case of a repeat-offender senior citizen shoplifter, and why she might have a good reason for doing it.

We Help People Who Have
Nowhere Else To Turn

If you are dealing with a shoplifting issue or are seeking to understand why you shoplifted and are looking for confidential help and support to overcome the problem, you’ve come to the right place.

“For 45 years, I work hard, provided for my family and raised my children with good values. Then I retired. Suddenly, my life lacked purpose. The man I was just didn’t exist anymore. Why does filling my pockets with items from the food store fill the empty space? Its wrong and goes against everything I believe in but the pull to do it is so strong. If my wife were alive, she’d be so ashamed of me” Hank

Shoplifting becomes an increasingly difficult problem for Japanese officers

According to Japan’s National Police Agency, the number of shoplifting cases on record has been at a steady high for the past 10 years or so. In 2012 there were a total of 135,000 documented cases nation-wide. Granted, Japan’s crime rate is less than one-fourth that of the United States according to some sources, but it still ranks in as having the sixth highest crime rate in the world. For shoplifting in particular, the problem appears to lie less with the will of the law enforcement and more with the attitudes of society. Many individuals will become angry and defensive on behalf of the thieving criminals, as though having beat the shop’s security system makes it acceptable to have stolen something in the first place! This has caused quite a few problems for security officials.

One example of small-scale theft comes from a certain large-scale shopping center in Japan. People take carts containing rice or liquor out into the parking lot under the guise of having forgotten their wallets in the car.

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What To Do To Reduce Shrinkage In Your Store

July 10, 2015 by Leave a Comment

shoplifting1There are many articles out there with tips about how to spot a shoplifter, and while their advice is well intended, it obviously does not translate well.  The retail industry loses billions of dollars every year, and it seems to be getting worse not better.  Knowing your store, educating your management team, employees, and investing in systems to prevent shoplifting can help you minimize your loses, but will definitely not end it.   Profiling a shoplifter is not only bad for business, but can definitely get you in trouble.  Educate your employees and make sure they know what to do if an incident occurs in your store.

Read more for more information about this topic.

New Study Finds Loss Prevention Priorities Fall Short For Large Retailers

Disconnect between IT and LP revealed in budgets of retailers.

New research from the IHL Group examines industry perspectives on loss prevention technologies in retail and the very different ways business groups including IT, LP and the C-Suite, valuate and allocate investment, staffing, and more in those technologies, based on their individual roles and priorities. The study, “The Great Disconnect Between LP and IT,” finds that there is a huge disconnect between IT and loss prevention.

A separate 2015 Retail Theft Survey found that dishonest employees steal more than six times the amount stolen by shoplifters ($825.36 vs $133.80), and yet the findings in the IHL research suggest that the gravity of those numbers don’t line up with the importance executives are placing on the problem.

The study found that retailers with greater than $1B in revenue spend only 8.3 percent of their IT budget on LP priorities (not including PCI and data breach protection efforts); and while 100 percent of LP professionals say cashier monitoring is a priority use of CCTV, IT and other business units de-prioritize it at 56 and 57 percent, respectively.

Retailers Lost $44.02 Billion In Shrink In 2014

​The 24th annual National Retail Secury Survey (NRSS) administered by the National Retail Federation (NRF) shows retail and security providers exactly how much shrink affected retailers in 2014. The national study looks at a variety of topics including employee integrity, inventory shrink and other concerns. The study is the result of a partnership between the University of Florida, with the report sponsored by The Retail Equation. NRF shared excerpts from the report in a press release. The study, with responses from 100 senior loss prevention executives, was conducted in March and April. The findings should illuminate topics of concern for retailers, and examine what issues they need to consider for preventing high levels of shrink.

“Retail loss prevention professionals have one of the hardest jobs in the industry – protecting their customers, employees and merchandise from the threat of harm and fraud, and the results of this survey prove the enormity of their task,” says NRF President and CEO Matthew Shay. “Retailers will continue to review best practices and work to better educate decision makers in Washington about the burdens these crimes place on consumers, retail companies, their employees and the economy.”

Reducing Retail Shrinkage: How to Beef Up Security and Prevent Loss in Your Store

Shrinkage (aka: Public Enemy #1 for most retailers), can eat up a significant amount of your profits. According to the National Retail Federation, retail shrinkage amounted to $34.5 billion in 2011, and a big chunk of that was due to theft or fraud.

That’s why it’s critical to constantly stay on top of protecting your store. Keep your systems up-to-date, be vigilant about spotting fishy behavior, and see to it that your staff is adequately trained to deal with security issues.

To help you do all that, below are some of the most common causes of retail shrinkage along with security tips to help you prevent them.

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Warning Signals of Theft by Outsiders

July 2, 2015 by Leave a Comment

theft (2)Last month I discussed the Warning Signals of Employee Theft. Employees account for an average of 45% of a Retailer’s losses. However, shoplifters and vendors account for another 35% on average.

As business owners we work hard to run our business. We deal with a number of liabilities every day and people who have never owned a business rarely understand that. We have to keep a number of balls rolling on the table at the same time: Sales, inventory, ordering, human resources, payroll, insurance and expenses just to name a few of the more common ones.

Contrary to current reports and opinion we see in the news more and more, we business owners are not the evil, money hording ogres that is sometimes portrayed. We work hard for our profits and many times we invest most of that back into the businesses.

So when someone steals from us regardless of the amount or type, it is a huge hit to our bottom line. What many Retailers do not understand is the impact. Theft of toilet paper or cleaning supplies from our restroom has the same impact as the theft of merchandise. It still costs us money and we have to replace it.

Many Retailers do not understand the true impact of shrink or loss. For example: If your store’s shrinkage this year is $100,000, that’s $273.97 in shrinkage every day.  Is that the total impact on the bottom line?

Consider this: For your organization to simply recover or break even on a $100,000 shrink or loss, you would have to sell an additional $13,698.50 every day!  ($273.97 divided by .02% profit margin) This is on top of your normal sales.      

Think about this…how many more items would you have to order, receive, count, mark, prepare paperwork for, stock, and finally sell just to produce these extra sales?

Add to this the fact that shrinkage really cannot be recovered. You then begin to understand why one-third of US business failures are blamed on theft.

The obvious solution is to prevent the theft, errors and abuse that cause loss in the first place. To that end here is a list of early warning signals of theft by shoplifters and outsiders to our business:

1. Unusually large or frequent refunds to a particular customer for returned merchandise.

2. Anonymous phone calls or letters concerning theft.

3. Unusually friendly relationships among employees and outsiders such as truck drivers, repairmen and trash collectors.

4. Frequent contact among employees and visitors (that do not appear to be customers), especially those visitors who carry shopping bags or other containers.

5. Contact by employees with gamblers, drug dealers, gang members, loan sharks, etc.

6. Many customers that always deal with one employee and refuse to buy from anyone else.

7. Your stock being sold in outlets, e-bay…. That never buy from the company.

8. Gifts or favors to accounts payable employees from suppliers or to accounts receivable employees from customers.

9. Reduced purchases by customers who deal closely with warehouse or shipping personnel.

10. Presence of outside personnel (telephone repair, building service, salesmen, etc.) in areas where they have no legitimate business, or in un-business like communication with employees.

11. Newly received items being sold in flea markets, e-bay, on-line….

12. Complaints received from other businesses or retailers.

13. Shoplifters are always blamed for the theft.

14. Gifts or favors from other retailers accepted by your employees.

Remember – It is of greater benefit to us to anticipate losses, procedural defects or lax enforcement of controls, then to concentrate only on resolving losses that should have never occurred.

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DETECTING FAKES – COUNTERFEIT MONEY

July 2, 2015 by Leave a Comment

Money1If you hadn’t noticed, every couple of years, the US Treasury completely redesigns the American currency. Just compare a few Ben Franklins from today and just a few years ago. They are radically different. Just in the last decade, the US has added different colors, designs, watermarks and other highly sophisticated elements into its currency to help reduce the prevalence of counterfeit dollars.

Just today, I was called by one of my stores about some funny money. It seems as if one of our new cashiers had accepted 5 crisp, new and ultimately fake, $100 bills. To say I was a bit frustrated was an understatement. For all the technology out there, it all still comes down to a cashier simply paying attention. You may say to yourself that it’s impossible for a fake bill to pass through your store. Maybe you think this because you have that fancy counterfeit detector pen. Would you be surprised if I told you that some of the better fakes can pass that test with flying colors? Yep, it’s true. I’ve personally seen some exceptionally made $20’s that, when marked, appear to be legit. So if the markers don’t work, how can you stop the madness?

Training. Training. More training. Your cashier is you last line of defense. They are taking in money all day long, so it’s only common sense that they be able to detect a fake quickly. I have friends in the banking industry and there are people out there that can spot a fake blind folded (based solely on the feel of the paper). So what’s your first step? The US Secret Service has a website dedicated to the detection of counterfeit currency. (http://www.secretservice.gov/know_your_money.shtml and http://www.newmoney.gov/). I constantly reference these resources when I’m conducting new store training, or manager training in my stores. You can’t get any better training material out there and the best part is that it’s all free!

Just as any other fraud scheme, the fraudsters will compete with new technology to defeat the controls and new controls will be implemented to fight the fraudsters. Counterfeiting is no different and as technology improves, you can bet that our dollars will get smarter. By staying on top of the latest changes and trends though, you can do your part to save your business the embarrassment of accepting phony tender.

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TIPS FOR PRE-EMPLOYMENT SCREENINGS

July 2, 2015 by Leave a Comment

image3-NEOBIZMAGDid you know that turnover and shrink play hand in hand? Stores that have less turnover, generally speaking, have lower shrink than their counterparts with higher turnover. So what can you do as managers and owners to reduce turnover? There are the standard answers you can easily find like “improve morale,” or “offer a generous salary and benefits package”. Reducing turnover starts with hiring the best candidate for the job. That starts with a solid hiring process.

I can’t begin to tell you just how many times I’ve cringed at the way I’ve seen managers’ interview candidates. They range from the “cookie-cutter” manager who simply asks the questions on the interview guide, to the manager who does all the talking. (Seriously, I’ve been in the office for several of these types. The manager literally will talk for 15 minutes and without so much as peep from the candidate, offer a job). Someone has to train the manager on proper hiring techniques, for starters. This protects you legally (there are some questions you can’t ask)! And it helps shield you from a bad apple (employees never steal from their employer, right)? Here’s a few suggestions of what your managers should be asking.

Can you tell me a little about your work ethic and how it separates you from other candidates?

If your candidate doesn’t know what work ethic is, then chances are, they are not the candidate for you. Take this time to listen to what they are saying. Anyone can show up to work on time and coast through the day. It’s hard to find someone with a strong work ethic these days. It’s not something that can be learned in school.

If hired, how would you sell yourself to the rest of the team?

How will your candidate establish credibility in your organization? Will then lead with an iron fist, or will they be a true leader and gain the respect of the rank and file?

What do you think is worse; a cashier who steals $20k to support her mother’s cancer treatment, or an electronics associate stealing computers to fuel a drug addiction?

Does your candidate possess a bit of empathy? While both scenarios illustrate internal theft, the first can be reasoned some (a little). It’s good to see what your candidate says about employee theft in a general sense here as well. The last thing you want is to hire someone that will steal from you.

How important is confidentiality?

This is a very important question, especially if you are hiring a supervisor, or a manager. Not only are we talking about keeping employee issues confidential, but also your company sales figures, market position and other proprietary information. A good candidate will understand just how important staying tight-lipped is to your business.

Can you tell me about your greatest failure?

This is my personal favorite. I close out every interview with this question. I need to see that my candidate is human. Nobody is perfect and everyone will make mistakes. Find out the biggest mistake your candidate made and then how they reacted to it and moved forward. You’ll be surprised at what you may hear with this one.

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Shoplifting Prevention and other News

May 29, 2015 by Leave a Comment

shoplifting1Preventing or taking measures to prevent a crime is much easier for a company than dealing with the results and the cost associated with dealing with it. Preventing shoplifting deals with a lot of situations that are unique to a particular store or situation, and the measures to dealing with them is different every time.  If you are dealing with shoplifting or employee theft, follow the links below for more information about this topic and some measures you can take to prevent theft in your store.

Shoplifting arrests at Eagan Outlet Mall raise question of bias

A majority of those cited or charged with shoplifting at Eagan’s new outlet mall have been people of color. 

As soon as developers broke ground at the Twin Cities Premium Outlets in Eagan, police began preparing for an uptick in traffic and activity in the area.

Nearly 85 percent of those arrested or cited in connection with shoplifting calls at Eagan’s new outlet mall were people of color, according to a Star Tribune analysis of nearly 1,000 calls to police in the first eight months the center was open.

The percentage of blacks and other minorities arrested or charged with shoplifting offenses at Eagan’s Twin Cities Premium Outlet was higher than at nearby Burnsville Center, in all of Minneapolis or at a similar outlet mall in Albertville.

6 Low-Tech Ways to Reduce Shoplifting

It’s our instinct to turn to technology first when solving a problem. However, when it comes to preventing theft in your store, low-tech solutions can also be very effective. Using low-cost and free solutions can sometimes even require less employee training and troubleshooting than some high-tech tools.

Here are 6 low-tech ways to prevent theft in your store:

1. Put out the welcome mat. Shoplifters want to be anonymous and make as little contact with store employees as possible. One of the most effective ways to deter shoplifters is to greet every customer that walks into the store. “Don’t just shout “Good morning” over your shoulder, but make eye contact and greet the customer like you are happy to see them,” says Chris McGoey, security expert and founder ofCrime Doctor, a security firm. “Not only is it good customer service, a simple greeting can make potential shoplifters change their mind about stealing from your store because they know you can identify them.”

SHOPLIFTING PREVENTION TIPS

ANDERSON, SC – The City of Anderson Police Department offers the following shoplifting prevention tips. Shoplifting can cost your business thousands of dollars each year. Shoplifters may be any age, sex, economic, or ethnic background. There is no “typical” shoplifter. Often they work in pairs or groups to divert the clerk’s attention while they steal. Certain times of the day when employees are apt to be less alert are critical: Store opening and closing, during the lunch hour, dinner, or shift changes. Shoplifters learn to take advantage of crowded stores during peak hours.Effective prevention begins with an aware and alert staff.

Protective Measures

• Make the shoplifters feel watched. Elevate the cashier’s platform. Install mirrors that enable cashiers and sales people to see over and around displays. Install one-way glass in offices to enable employees to see into the store without being seen from the floor. Install video surveillance cameras.

• Post signs warning against shoplifting. Emphasize that you will prosecute. The best way to discourage shoplifters and keep your business from being tagged as an easy mark is to take a get- tough attitude and prosecute on the first offense.

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Organized Employee Theft

May 29, 2015 by Leave a Comment

theft (12)I seriously try not to be surprised anymore. During any given day, there is no telling what will come across my desk. As an investigator for my company’s Asset Protection department, there are no two days the same. I have two main focuses. One being organized retail theft and the other is employee theft. Ten years in and I haven’t figured out which one I love more. The external cases keep me on my toes, but the employees really do come up with some very clever ways to steal from me. Sometimes the two worlds collide for a case that is truly amazing.

Take one of my stores for example. It was time for their inventory and two days later we get the final numbers. The appliance department shows that it’s in the negative almost $200K. This is impossible. Every piece of equipment delivered to the store gets checked in, so there’s no chance of shipping errors. It’s pretty hard for a customer to stuff a dryer down their pants, so external theft is out. The only other option out there is employee theft. Again though, you would think it would be obvious if an employee was stealing a large bulk item. Unless of course, half the store is in on the theft.

It didn’t take much research after that inventory to find out what was happening. The basic fraud scheme was this. A customer. A legitimate customer would come into the store looking to purchase a new home appliance. After speaking with one of the sales consultants (dishonest employee), the customer would be duped into thinking there is a special clearance item that meets their needs that just happens to be heavily reduced in price. The sales person would then tell the customer that the system was down and that his register was only accepting cash, and that the store was also short on change, so it had to be the exact dollar amount. In all, several steps, but all believable to an honest customer who just thinks they are getting a deal.

Once the sales person would collect the cash (normally about ½ the retail value of the item), they would call an accomplice in the warehouse. A phony pick label would be generated in order for it to be pulled from the warehouse. An AP associate is required to sign off whenever bulk merchandise is loaded, however the majority of this store’s AP staff was unfortunately, in on the scheme. At the end of the night, the cash would be split. For a busy store such as this one, the associates were splitting thousands of dollars a week. This organized employee theft scheme went on, unchecked, for nearly a year.

During our investigation, we found the ring leader of the bunch, who happened to be an AP supervisor for the location. He stated that it happened once for a friend and he saw just how easy it was to make some extra cash on the side. Before he knew it, things had snowballed into a very elaborate, sophisticated and organized scheme. Never before had I prosecuted an employee theft case so large and organized. So organized that the District Attorney charged all involved with Organized Retail Theft, a statute that I had never seen used with employee theft. In total, these 10 or so employees had cost the store nearly $200K in losses. Each one of the employees were found guilty of their charge and due to the dollar values, some of them actually did a few weeks in a state prison.

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Warning Signals Of Employee Theft

May 29, 2015 by Leave a Comment

theft (2)As Business Owners we are “hit” with something that we did not or could not see coming. A piece of equipment breaks, a key employee is in an accident and gone for an extended period of time, etc.  Many times this also applies to employee theft: We simply did not see it coming.

However, there is a difference with employee theft and the first two examples. Employee theft is usually preceded by warning signals. Many Business Owners and Managers simply do not know what they are or do not see the forest for the trees.

When you look at this list, keep something in mind. One of these things, all by themselves probably mean nothing but in my 35 years of dealing personally with 2300+ employee theft investigations, I have found that most of the time two or more of these factors are present in enough time that a responsible party should have seen the warning signals. 

Personal behavior is the key area to watch:

1.Double talk or inconsistencies by an employee who is explaining discrepancies or “errors”.

2.Borrowing, particularly from loan sharks, but also habitual borrowing of any kind.

3.Symptoms of a drug user.

4.Admission of theft from prior employer.

5.Violent temper or other unpleasant behavior, which tends to discourage people from asking questions.

6.Expensive habits such as heavy drinking, drugs, extra-marital affairs.

7.Having more money or spending more than earnings could support:

–  Flashes big roll of money

–  Buys expensive items–jewelry, car, house, boat

–  Has expensive hobby

–  Always picks up check at restaurant

–  Dresses expensively

8.Disgruntled, dislikes boss or company and complains about being underpaid or overworked.

9.Heavy gambling on horses, cards, numbers, sports, etc.

10.Abnormal fear of, or antagonism toward, security or management personnel.

11.Possession of knife, gun or other weapon.

12.Terrorization of one employee by another.

13.Advocating violence as a way to resolve routine problems.

14.Never takes time off or vacation, comes in during vacation or day off.

15.Concealed family relationships among associates.

16.Chronic employee conversations that cease when management approaches.

17.Employees who never make purchases.

18.Employees who are “wary” of members of management.

19.Constant complainers.

Too often, signals pointing to internal theft, even when noticed, are mistakenly ascribed to chance, error, coincidence, or some other benign circumstance…and the signals are ignored.

Remember, a thief, like a magician, depends on you misinterpreting the obvious…or on his or her ability to confuse you.  Don’t be deceived, distracted or misled.

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Take a Bite out of Shoplifting – Literally

May 29, 2015 by Leave a Comment

shoplifting5Shoplifters are great. Well, not great for business, but great for laughs sometimes. Most of the times, shoplifting incidents are pretty serious business. You’re confronting someone who has just committed a crime. You don’t know their state of mind and you definitely don’t know what they are capable of. I’ve personally been pepper sprayed by a shoplifter as they tried to escape, along with seeing countless managers suffer the same fate. Often suspects immediately want to become physical and more simply will flee the store. Every now and then karma and a little luck is on your side.

I was training a new LP agent last summer in a very active market. It was day four of our training and she had already thrown a half dozen folks in jail. So far, no problems, this particular agent was an attractive young female who didn’t take lip from ANYONE! It was amazing how many shoplifters hit on her… but we’ll save those stories for another time. The clock was ticking away and it was just about time to call it a night when one of our frequent flyers entered the store. I had busted this guy on no less than three previous thefts and he was definitely a runner. I had my new agent begin observation while I contacted the police. At the very least, I was going to charge him with trespassing. 

About 15 minutes goes by and like always, the shoplifter starts loading his pants up with electronics. About this time, the police were arriving, so I went outside to inform them of the situation and wait for the thief and my agent to exit the store. Well, she didn’t disappoint. Our thief exits, but completely ignores the agent and takes off running. The next thing I know he’s gone. He’s hiding around the vehicles in the parking lot, but we can’t seem to find him. The officer gets on his loudspeaker and announces that he’s going to let the K-9 unit loose if he doesn’t turn himself in. No answer. 

Standing a full 3.5 feet tall and weighing in at about 120 pounds, K-9 Officer Scout is ready for action. This is a game for the pooch and I can tell he’s ready to play. Within seconds of jumping out of the patrol car, he and his handler are on the scent. Like a scene from a movie, out of nowhere, the shoplifter emerges. Only… he doesn’t surrender. In true idiot fashion, he starts sprinting across the parking lot. I don’t care how fast you think you are; you will never outrun a German shepherd whose sole purpose in life is to take you down. And take him down he did. When the handler finally reached the scene the shoplifter had a knife he was trying to stab the K-9 officer with. Not only did this shoplifter go to jail with some pretty serious bite wounds, he also got to feel what 100,000 volts of electricity from a Taser felt like. 

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Who is really running my store? A Strong Case for Employee Background Checks

May 29, 2015 by Leave a Comment

shoplifting4Coming from big box retail, I never realized just how uncommon employee background checks are in terms of smaller businesses, until I worked for one. While it’s standard practice for major retailers to run a pre-employment screening, there are plenty of stores and business out there that simply don’t. This could be a problem. It could be a problem for you, your business, your other employees and your customers. Knowing who you employ shouldn’t be a luxury. It is and should be, a necessity.

One of my first LP jobs was a district manager position for a very small chain of hardware stores. If I recall, they only have about 50 stores. When I first came on, they were building up their LP program and lacked several basic control measures in place. Think EAS, CCTV, exception based reporting and basic physical security measures. Heck, the stores weren’t even equipped with alarm panels. Part of my job was to help build their LP department to better assist the stores in becoming more profitable, assist in inventory reductions as well as limiting a very high turnover rate. After my first couple of weeks, it was clear that in order to help all of those categories, store managers needed to make better hiring decisions and that all starts with a thorough background check. 

It didn’t take much convincing and the company eventually found a company to process the screenings for us for a very competitive rate. Part of our new policy was to run the background checks on all of our current store managers. What we found was very disturbing. Out of 50 store managers, nearly 20 of them had extensive criminal records. Records that including prison time, drug and weapons charges, assaults, counterfeiting, forgery, fraud and even murder. These were our store managers! Not surprising, these 20 or so managers all had some of the worst performing stores. Literally, every one of those stores had shrink, turnover and moral issues. Coincidence? I think not. 

It took almost two years to fully implement and turnover some of those managers, but eventually the company was able to start with a clean slate. Now, every employee, prior to being offered a position with that company is required to submit to a background check. Anything other than simple misdemeanor traffic violations results in a disqualification of employment. I can tell you that those stores operate more efficiently, there is less shrink and turnover and employee morale high. If your company is not reviewing the backgrounds of your employees, ask yourself, “Who is really running my store?”

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