Do Shoplifters have Rights?

Shoplifting and shoplifters have been a constant reliable problem the retail industry has had for many years.  The billions of dollars lost due to shoplifting is not a laughing matter.  The millions of dollars the retail industry suffers daily due to shoplifting, cripples local economies and leaves them unable to fund social programs that benefit those communities.  The tax loss from stolen merchandise affects those communities as well.

It is very hard to empathize with a shoplifter. Shoplifting is a crime after all but, we must remember that shoplifters have rights and whether security personnel likes it or not they must follow the law.  The procedures a security employee must take when apprehending a shoplifter are very clear.  Law enforcement personnel must follow procedures as well. Shoplifters have rights, and as a security employee you must follow them.

For more about this and other topics, follow the links below.


LP Interrogation Techniques Can Work as Negotiation Tactics

Negotiation tactics are synonymous with terms ranging from compromise and mediation to haggle and interrogation. It is not difficult to argue the fact that interrogations represent the hardest form of negotiating. When people enter into negotiations or mediations, they understand they may need to sacrifice some of their interests in order to reach a mutual agreement because both parties, at some level, have shared interests.

On the contrary, when subjects enter into loss prevention interrogation, they have no intentions of sacrificing any of their interests. Interrogation subjects are typically motivated to stake themselves to a position of innocence and to vehemently defend that position. Skilled interrogators overcome these obstacles by creating shared interests, reducing their subject’s resistance, and creating perceived benefits for confessing.

Many corporate executives view negotiating tactics and skills as both critical to their success and professional development.


Court rules company extorts money from accused shoplifters

 – A State Superior Court judge has ruled that a “corrective education” scheme for accused shoplifters is considered “extortion.”

San Francisco City Attorney Dennis Herrera filed the lawsuit against Corrective Education Company, which partners with retailers like Walmart, Bloomingdale’s, Burlington Coat Factory, Abercrombie & Fitch, Ralph’s grocery chain and Kroger’s.

Suspected shoplifters at those retailers don’t get handcuffed by police, instead, Herrera says they answer to a private business called CEC or Corrective Education Company.

“They basically would intimidate and get someone they suspected of being a shoplifter and say uh, unless you sign this form and and pay us money, we’re gonna report you to the police,” said Herrera.

The problem with that, Herrera says… it’s illegal.

“The law is clear. This is a textbook case of extortion and false imprisonment,” said Herrera who filed the lawsuit back in November of 2015.

This week, California’s State Superior court agreed.


Burlington Coat Factory Security Guard Arrested After Shooting

A security guard who shot a man Tuesday during a confrontation over an alleged shoplifting incident in San Francisco has been arrested, police said today.

The shooting occurred shortly after 2:30pm in the area of Fifth and Howard streets at a Burlington Coat Factory store where the guard, a 42-year-old man, confronted a suspected shoplifter, according to Officer Robert Rueca.

A struggle ensued that moved outside of the store, and the guard shot the 33-year-old man in the leg, Rueca said.

The victim was taken to a hospital with injuries that are not considered life-threatening.

The guard, whose identity has not yet been released, was arrested on suspicion of assault with a firearm and shooting at an inhabited dwelling.


 

Can You Hear Me Now? Active Listening is Important To Great Customer Service

How often does it happen? You are in front of your television watching your favorite college football team playing a game and your spouse starts talking to you about their day or what you need from the grocery store. Then suddenly the conversation takes a nasty turn and you are asked for input about the conversation you weren’t really engaged in. The textbook reply, “Yes Dear” or “Sounds good Honey” are the first line of defense but your spouse is suspicious of your response and asks, “What did I say?”  Oops, you’re caught, you weren’t listening and you really have no idea what was said. The same thing can happen in retail but with a much different outcome and one that can cost you money. With your spouse you may be in the doghouse and it can be uncomfortable for a bit but usually things have a way of working out in the end. For a retailer,  it may end up with an  exasperated customer who won’t shop at your store any more.

Actively listening is critical for ALL retail associates. It requires paying attention to what your customer is saying and sometimes keeping an ear out for what is not being said. It is a skill that often has to be taught because we do not always give our full attention to what others say to us as I gave in my example of above. How does one really actively listen? By asking clarifying questions and repeating back what the customer has said to you. Here are some examples:

  • A customer is returning a shirt. A simple situation right? Do the refund and give the customer their money back and everything should be good. Not necessarily. What was the reason for the return? Was the merchandise defective? Did it not fit the way the customer thought it would? Did someone fail to give them proper assistance when they were looking for the shirt in the first place? By asking the right questions you may turn a bad experience into better one. If the merchandise was defective, what was the defect? Is it possible to prevent a bad experience for others by pulling that shirt brand and style from the floor and requesting a credit from the vendor? What appears to be a simple problem may have underlying issues that you would not know if you aren’t listening and asking customers questions about their returns.  Doing so let’s the customer know you do care about them.
  • Perhaps you are selling jewelry to a customer. Showing your shopper merchandise is fine but learning about the customer and what they need the jewelry for can build an invaluable rapport with your clients. Is the jewelry for a special occasion? What style and color of outfit is being worn? How about inquiring if the client is allergic to any metals? You may need to look for hypoallergenic jewelry. It is possible by asking the right questions you might be able to accessorize the sale or better yet sell the entire outfit.

A key part of active listening is the inquiry process and asking the probing questions that lead to a clear picture of what a patron wants.

In addition to the probing questions another essential part of active listening is repeating what the customer has said to you. Sometimes when we are listening to someone we hear one thing but what the customer meant was something totally different. Here is a good example from a social media post I saw the other day:

  • I want to eat Grandma
  • I want to eat, Grandma

Both have the same words but two TOTALLY different meanings. When we repeat back what we have heard in the form of a question we ensure we truly understand what our customer is asking for. We can ask our customer, “So, if I understand you correctly you want to eat your grandmother, would you like that with or without ketchup?” Our customer can then make it clear they do not want to eat grandma at all, that wouldn’t be very nice. The patron can rephrase the question and give more details on what they want. Giving our full attention helps us give our clients exactly what they want and need as we make recommendations based on what they have told us.

Focus on customer service by listening to your customers and make them the center of your attention. They will return the favor by coming back to shop time after time and spreading the word to their friends.    


Employee Retention Is Made Easier When You Conduct Speedy, Accurate Background Checks

Turnover for many businesses can be a real headache. You take the time to post job ads, review job applications, set up interviews and then conduct the interviews. Your new hire starts and within a couple of weeks they quit. It happens far too many times and it is a pain. Why did the person quit? Did they have a propensity for job hopping already and you missed it on the job application? Did they start stealing from you and got enough money or merchandise and quit before you caught on to their schemes? Perhaps it was a young employee on their first job and they wanted more weekends and night shifts off so they could “hang out” with their friends. All of these are reasons for high turnover in retail stores especially. Lose too many people at once and it can cripple your business, stretch the staff you currently have and it may potentially lead to more employees quitting.

On the other end of the spectrum there are the businesses that are very careful, almost to the extreme. They go through the same hiring procedures, posting the ad, contacting applicants and conducting interviews but they add an additional step. They conduct a background check before making a job offer. Sounds good right? Making sure you aren’t hiring someone who will steal from you or threaten others in the workplace. Here’s the catch, hire the wrong background check company and you may be losing great employees because pre-employment screening is taking too long to conduct. Thoroughly vetting a prospective new hire is fine, but if that candidate has to wait too long for results they may decide to go somewhere else.

I know of one retailer that conducts pre-employment screenings but in some of their stores they have a problem with retention rates. In one instance the management team was reduced to the store manager and an assistant. The assistant left the company and only the manager and a skeleton crew were running the building. The store manager was trying to get new managers on board as soon as he could. He was working 7 days a week and personnel from other stores were going up and helping to fill in as managers on duty so the store manager could get a break.

Reportedly the store manager had a department manager candidate to hire and attempted to get the background check expedited to give him some help. The request was denied and it took several additional weeks for the positions to begin to be filled. I heard through a third party that the manager was close to quitting due to the staffing problems at this store and the failure to get critical jobs filled. Several weeks later the person the manager wanted to fast track was cleared and hired for the store. While this was an extreme situation, consider how close the manager came to leaving the company.

What about the chance the district level manager or higher took with the candidate. The position was not an extremely high paying job and there are plenty of other opportunities with similar or even better pay. It would have been easy for the candidate to just find another place to work with the length of time the background check was taking.

Not having a pre-employment screening on candidates is foolish. You are gambling with your business and profitability if you bring on the wrong person for your staff. Hire the wrong Background Check Company that doesn’t recognize the value of timeliness when conducting your checks for you and you risk the loss of potentially very strong candidates. It is important to find a company that understands the challenges retail owners and managers face every day. From taking steps to grow profits, combating theft and fraud, to retaining the best people to work in their stores it can be overwhelming. Give Loss Prevention Systems a call to discuss background check options with people who understand the challenges of the retail industry. Proper hiring and operating profitable stores go hand in hand.


How Loss Prevention Managers Can Help Store Managers Improve Store Sales

Loss Prevention Officers and Managers catch shoplifters and dishonest employees. That is a common perception and in some stores it may be a true picture of what Loss Prevention departments do, with the additional caveat that they may have uniformed people who conduct receipt checks. If this is all that the department does it can be hard to sell store managers on the value of having them on staff if the budget for them comes directly from the store. It is even more difficult for small, independent retailers to justify hiring a Loss Prevention Officer although if the store is in a high crime area they may contract a security guard. There was a time when there was an “us versus them” mindset between store managers and Loss Prevention teams. Over time some larger companies have focused their Loss Prevention teams more on operational issues. For example, I worked for a company that had Loss Prevention conduct food product out of date audits. Their position was that this was a safety issue so it fell to the Loss Prevention team. I had no problem doing the audits, but as I looked at the amount of out of date items I was finding I had to question what the freight team was doing when they were stocking. Who was auditing their work because there were a lot of FIFO (First In First Out) issues I was identifying that were causing out of date problems.

     The solution is for a partnership where Loss Prevention can help store managers and owners improve sales and operations and store management provides administrative support for L.P. What is it that Loss Prevention can offer a store in addition to improved profitability by stopping employee theft or preventing shoplifting? As a Loss Prevention Manager I assisted the store managers in conducting prospective employee interviews. I was already interviewing my own applicants when I had job openings so helping the store fill their positions was not a big deal. L.P. can audit out of stock spaces on shelves. Certainly the focus of the L.P. Officer is on empty shelf space due to theft but if it is determined that merchandise is not being pushed properly by a stocking team then that information can be shared with management. The impact of not properly stocking merchandise results in missed sales and negatively affects profits.

     Loss Prevention departments can also support stores by applying electronic article surveillance anti-theft devices to merchandise. I have personally spent significant amounts of my time placing Checkpoint tags on CD’s, DVD’s, and electronics merchandise. I have also placed security tags on clothes, thwarting would-be shoplifters and keeping shortage down. You may be thinking that this should be a Loss Prevention job anyway but that isn’t necessarily the case. There are stores where tagging is left to a freight unload team or even delegated taggers. It saves the store money in these situations when L.P. jumps in and assists in tagging allowing the hours saved to be put to use somewhere else.

     Is it important to maintain some delineation between L.P. and stores? I believe there should be some dividing line and it may not always be clear. I have seen some managers give direction to L.P. Officers which began to interfere with their primary responsibility of catching shoplifters. I have also seen department managers start entering the Loss Prevention office when no one from L.P. was present and move cameras to watch their cashiers or employees to see if they were being productive. This potentially causes issues with ongoing investigations when cameras are not where they are expected to be. A partnership between L.P. and stores requires a mutual respect for areas of responsibility.  Likewise I have seen instances of L.P. Managers telling store employees were not doing a job properly rather than acting in partnership and mentioning an observation to the department manager.

     In a partnership, store managers may provide a store employee as a witness for L.P. when a shoplifting suspect is in the office. They may also provide a witness for a L.P. Manager when they are going to conduct a dishonest employee interview. Managers may also offer to purchase additional security equipment such as cameras when L.P. teams have been strong partners and have helped to keep merchandise on the floor and prevented shoplifting.

     There are many ways that stores and L.P. can be partners in making a store profitable. All it takes is thinking outside the box and building a relationship based on respect. Strong partners make a winning combination.


     

     

Policies and Procedures: Do You Have Them in Place?

In the United States alone, there are over half a million shoplifting incidents everyday. The losses are in the billions and the deaths associated to shoplifting incidents are numerous. Whether you have a store policy where every shoplifter is prosecuted, or whether your store prosecutes only if the amount stolen is over a hundred dollars, the policies and procedures have to be crystal clear for every employee that works in your store.

A store employee has to be knowledgeable about the store policy concerning a shoplifting incident.  Can any employee stop a shoplifter using any means necessary? Can they follow them even outside the store? Can they forcefully attempt to stop them before they leave the premises? Do they even know what to do and how to respond if they are witness to a shoplifting incident?

Training and informing your employees of the policies they must follow when working for you and your store can save lives and lawsuits. Safety should be your primary concern when dealing with shoplifters, and should be voiced to all your employees.

Training can be reinforced as a reminder of the policies the store follows regarding shoplifters during a brief hustle in the morning before customers arrive.The capital you invest in the training of your loss prevention team and other management employees can save you expensive lawsuits later on. 

Employees at stores like Walmart  have been involved in incidents where a shoplifter has lost his life because the employees did not follow the procedures set by the store. An employee at Home Depot has been terminated because he did not follow the strict policy set forth by the store concerning shoplifters. Who is at fault?  The lawsuits because of these incidents can come to the stores from the shoplifter and the employee that was terminated.  Could training have prevented these incidents?  It couldn’t have hurt.

A customers cannot be afraid to come of your store because of what they might have seen when a shoplifter was detained. They have to believe that you will do the best to protect them from being harassed or from getting hurt in case a shoplifting incident occurs when they are at your store.


The Costs Associated With Poor Hiring Decisions

We make decisions each and every day that have consequences. We set our alarm clocks and when they go off we choose to do the right thing and get up so we have time to prepare for work properly, showering, grabbing a bite to eat, sipping a cup of coffee or two and saying good-byes to our family. It is possible we may choose to do the wrong thing, hit the snooze button and get that 5 extra minutes of sleep but there is a cost associated with it. That five minutes easily turns to fifteen minutes, showers go by the wayside, we grab the first thing we can find in the closet (or hamper), our socks wind up not matching and if we are fortunate we grab a cup of coffee in a travel cup and hope it doesn’t spill on us as we jog/stumble to the car.

Employers can make poor decisions too when they don’t take the time to hire the right person. Some of you may be familiar with a cost/benefit analysis. You probably use it when you are deciding how to run your store(s). Do you allow your inventory shortage numbers to sit at 1.5% or do you invest in a Checkpoint Security System, spending money now but reaping the benefits later in significantly reduced shrink due to theft?

Do you keep investing all of your money into one store hoping to find the formula that will increase your foot traffic or do you take the risk and open a second store in a new market and try to attract a new batch of loyal customers? Is the cost of the investment going to benefit you over time with increased sales? The same thing holds true for your hiring decisions.

When you hire the right person, all kinds of good things can happen. You may bring on a future department supervisor or assistant store manager. You might be adding that person who seems to make everyone around them smile co-workers and customers alike. Sometimes your hiring decisions result in a home run and that new employee is just a self-motivated go-getter who learns quickly and doesn’t wait around to be told what to do next. The right person offers new ideas and suggestions to help a business get better and wants to see the company succeed. Those people exist it’s just a matter of finding them by not rushing to fill positions and hiring the first person you interview.

But did you know there are hidden costs to making a bad hiring decision? Suppose the applicant doesn’t work out for you for one reason or another and you have to end his or her employment, now you have to go through the hiring process again. What does it cost to advertise the job? How much time will you spend reviewing applications, making phone calls to check on references and setting up interviews? Let’s not forget the time it takes to conduct the interviews. Once you make a hiring decision, guess what? Now you have to train your employee, investing more time and pay for the time training is taking place. Oh, and did I mention that there is a chance that the person you fired will file for unemployment? You may have grounds for termination but even if you do, you need to spend time at the unemployment office fighting the claim. The larger retailers often have a Human Resources Manager to take care of this, unfortunately smaller business owners don’t have this person and so the owner or store manager has to go to the hearing.

What are some of the other costs associated with making a bad hiring decision? A poor performer can have a negative impact on the morale of other team members. Who wants to pick up the slack for someone else? You may have hired a thief and then your cost is amplified in the shortage they are causing in stolen money or merchandise. You may find you pay for a poor hiring choice in terms of spending time on disciplinary action and all the steps you have to take to get rid of the employee.

What’s the answer for a small retailer? We can help you with pre-employment screening as a background check company who can thoroughly investigate a prospective employee doing the legwork of checking out who the applicant really is. Next, take your time in reviewing applications. It’s better to be short-handed for a while and get a quality candidate than just filling a spot out of desperation. Building a strong, reliable team may feel like it takes longer but it will pay for itself in the long run. 


     

Smaller Retailers Retaining Talented Employees In An Improving Economy

I remember the days when I needed to fill a position on my Loss Prevention Team and we could post an advertisement and I could easily get a dozen applications or more. Some of these applicants were talented and had extensive Loss Prevention experience and some had very little work experience at all but were looking for a job. The same thing happened when our Human Resources Manager would post job ads for cashiers, flow team or just about any position in the store, people needed work and took the time to sit at our application kiosks and apply on the spot. I’m not implying it was easy to conduct all of the interviews and sometimes the pool of prospective employees did not seem very appealing but they wanted the work and we could be somewhat choosey. The upside to this was that from a disciplinary and retention perspective, if an employee was not doing the job expected of them or they had attendance issues it was easy to go through the corrective action process and correct them right out the door. We knew we had people chomping at the bit for those positions.

     Another benefit for the store in a struggling economy was that good employees were fairly easy to retain. There wasn’t a lot of competition looking to hire new area or department managers. Talented employees also knew that they were probably going to get the maximum available hours and were sure of their position within the store. Going to another business had risk associated with it since there was no guarantee they would be getting the same hours or enjoy the management. While the employee may not have cared for all of the managers in our store, the managers’ styles were a known quality to the employee.

     Today the economy is improving and it is getting harder to hire and retain talented staff. Many national retail chains are now starting their employees out at $9 and $10 an hour. It is difficult to compete with these kinds of wages for entry level positions and for a small retailer, the choice could be hire at the rate but the cost of doing so is a reduction in the total number of employees you can keep on your team. If you are successful at bringing on an employee at minimum wage, how do you retain the talented employee who may be drawn to greener pastures on the other side of the fence? What can the small, independent store owner do? Let us offer some tips that can help you keep the great employees you can’t afford to lose:

  • Show your appreciation. It may seem silly but people want to know they are pleasing their manager/boss. Your store may be too small to have an employee of the month, it doesn’t work well when you only have a small number of people working for you. That recognition loses its value fairly quickly. Buying a drink for someone from a soft drink machine or bringing in pizza or snacks is always well received. It shows you’re thinking of them.
  • Get to know your employees and even learn something about their family. If something happens with their family member that they are proud of, like a child graduating from high school, give them an opportunity to tell you about it. If they have a sick family member or even a pet express your sympathy, maybe even suggest they take a day or two off to care for that person or pet.
  • Consider buying a small gift card of $10 or $20 every once in a while to a fast food place or a movie theater. Don’t necessarily make it in conjunction with any specific activity the employee did for you or any special sale they made. Do it at randomly and maybe place it in a “thank you” card with a note letting them know you appreciate their hard work.
  • Speaking of “Thank You” cards, there aren’t a whole lot of things that mean more than a hand written note mailed to someone’s home expressing gratitude for the service they provide to a company.

If a monetary bonus is in the budget following a successful inventory or prior to a holiday, like a Christmas bonus, it can go a long way to employee retention. A small bonus for someone making minimum wage can make a big difference for them.

It is hard for a small retailer to compete against the big companies, especially in retaining talent. That doesn’t mean it’s impossible. Demonstrate loyalty and appreciation for the people who make your company successful and they will return the favor.


Do You Know What a Shoplifter Looks Like?

 

  1.  A French Historian is accused of stealing American war heroes’ dog tags to sell on eBay. 
  2. Colorado publisher accused of stealing money from authors

  3.  Store clerk accused of stealing thousands in lottery tickets

The retail industry is not the only one dealing with theft in the United States.  The retail industry looses more than $35 million dollars  to shoplifting every day in the United States. But, theft does not seem to restrict itself to retailers, theft occurs in every place where the opportunity arises.  The shoplifter can be a member of a shoplifting ring, or a regular shopper who has a job, a family, or even financial stability.

There is not a profile of a typical shoplifter.  The shoplifter can be a government representative or a store clerk, a policeman or a French Historian, a shoplifter can be a member of your family or a neighbor.  Many of these people often times feel ashamed or are unable to talk about this issue with other people and are unable to seek help, but the problem does not go away, and everyone looses.

If you are in the retail industry and believe what a shoplifter looks like as they enter the store, then you have already lost against shoplifting. Training the management and employees of a store to combat shoplifting is an important aspect of any store that wants to be profitable.

Read more about this and other issues by clicking the links below.


Exactly What Is a Shoplifter and How Much Do You Know?

Industry veterans may find it odd to ask ‘What is a shoplifter?’ after years of experience. But it’s always good to revisit the fundamentals.

When asked “What is a shoplifter?”, most readers of the LPM Insider probably have a pretty good idea of how to respond. I do too, but it’s interesting what you learn (or re-learn) when you actually do some research on the subject. If you look up the definition of shoplifting, you will find different variations in wording. Some reference larceny, some concealment, and others talk about intent. But the basic definition boils down to this: shoplifting is the “theft of merchandise from a store or place of business.”

The terms “shoplifting” or “shoplifter” are not usually defined by law. The crime of shoplifting generally falls under the legal classification of larceny and can be a misdemeanor or felony, depending on the dollar amount stolen. State by state, larceny laws vary greatly.

For the average person, shoplifting is sometimes confused with burglary or robbery. However, all three are different. Burglary refers to unlawful entry into a building with the intent to commit a crime, especially theft. If a burglar is successful, they will not come in contact with another person.


Shoplifting girl sparks compassion from Atlanta police officer

Atlanta (CNN)In a rough part of this city’s northwest side, the call about a shoplifter at a discount store should have been straightforward.

For Officer Che Milton, it was the first call of his shift — on his fourth day on the job.
Inside the store, Milton met a sobbing 12-year-old named Heaven Staples.
“She’s crying, bawling. Tears everywhere,” Milton told CNN. “She was upset she was caught stealing.”
Heaven told him that she was stealing shoes because her 5-year-old sister needed them.
“I couldn’t put her in the system, being 12 years old, for stealing some $5 shoes,” Milton recalled. “I’d rather just take her home and see what’s going on.”
The ride was short. Heaven cried. Then, they walked in the door.
“That’s when I saw the conditions — how the conditions were in the house,” Milton said: five children and their big sister, Heaven, without much food or furniture.


 

Alpha High Theft Solutions Blending With The Checkpoint Label

As many of you know Alpha High Theft Solutions was acquired by Checkpoint Systems many years ago. Checkpoint has encouraged Alpha’s brand growth and innovation. Alpha has produced the best high theft solutions, hands down in the industry. Innovations like Spider Wrap, Keepers, Bottle Locks, Cable Locks, Shark Tags, specialized hard tags literally protect billions of retail products worldwide.

As the largest nationwide Checkpoint Dealer we have watched and even helped with the research and development of some of these products.

It comes as no surprise to Loss Prevention Systems and many of you, that the Alpha High Theft Solutions name is being blended into Checkpoint High Theft Solutions. From the inside, the accounting and management functions have been the same for some time. But this has been accomplished slowly and carefully over time. The Alpha DNA is still there, stronger than ever.

When we at Loss Prevention Systems met recently with Checkpoint High Theft Solutions, we clearly saw the Alpha DNA. In fact to us it seems that it is even stronger than ever. We were shown new products, some we cannot discuss yet, as they are still in development with R&D and will be real game changers. The scientists and product specialists at Checkpoint overwhelmed us with the new items they are working on.

These are concepts that are becoming reality other companies have never even thought of. The application of science is, well, amazing. As soon as they give us the green light we will begin rolling them out to you. Maybe even a few lucky LPSI Retailers will get to test and evaluate some of these new game changers.

Checkpoint has evolved into inventory control solutions not just shoplifting electronic article surveillance solutions. When we couple that with Loss Prevention Systems actual loss prevention experience in both the shoplifting and employee theft arenas, you have a powerful partner to help you achieve the profitability you want and deserve. Our real world live training is included on every system we sell, as often as you need it, for the life of your Checkpoint System, FREE of charge.

Loss Prevention Systems includes even more. We are there to help protect you from the bad guys. Shoplifters, employee theft, robbery, burglary, pre-employment investigations, pre-employment interviewing, vendor fraud are threats to your very livelihood. We have personally dealt with all of these for large and small companies alike. A single store owner can have the same loss prevention programs that the big box stores have with Loss Prevention Systems and Checkpoint Systems High Theft solutions.

But rest assured the Alpha brand is alive and well and living in Checkpoint High Theft Solutions. It courses through everything we do and stand ready to help you with. There are exciting times ahead for retail loss prevention and security so stay tuned for more information.  

And remember that if you hate shoplifters and theft as much as we at Loss Prevention Systems, please share this with your retail friends.


Credit Card Fraud, Bad Checks And Counterfeit Money: Tips To Combat All Three

 I live in a resort area so we get all types of fraud activity. Stolen credit cards, stolen and counterfeit checks and counterfeit cash, in addition to the day to day shoplifting and employee theft cases keep us busy. For L.P. departments in our area this can become overwhelming from an investigation standpoint. Employee training and awareness is crucial to effectively combat this activity, L.P. Managers can’t be in a store 7 days a week and even if we could be we can’t see everything. Store associates and managers are the first line of defense in preventing fraud at the point of sale. Here are some tips to identify and deter financial transaction fraud.

     Let’s start with credit card fraud. I used to harp on cashiers to look for signatures on the back of cards and if a card wasn’t signed or had “See I.D.” written on it, they were expected to ask for ID. When proper ID was not produced a transaction was declined, no exceptions. With today’s technology, people swipe their cards or hold smartphones up to the card reader and the information is transferred to the Point of Sale (POS). Chip cards are also considered a more secure means of payment than the older self-swipe. With chip technology every transaction has a unique code attached to it, whereas the old mag stripe cards had unchanging data that could be replicated and transferred to another card (source creditcard.com). Because chip enabled cards still have mag stripes and not all companies have changed to chip reader technology, fraud is still an opportunity. To minimize risk, if a small transaction for a few dollars is followed by a large dollar transaction be cautious, there is a strong possibility a stolen card is being used. The small transaction acts as a test to be sure the card is going to work. Second, if you have chip readers, don’t bypass them. Ask for a different form of payment if necessary but let the system work for you. You are always free to ask for an ID to compare to the card, and turn down a sale if the customer doesn’t have one.

     Check fraud is becoming less common. The advent of Apple Pay, Pay Pal, and pay apps for various companies, has resulted in fewer checks being written. Still, business checks are pretty common and a personal check is tendered from time to time. Check creation kits are easy to purchase and with a routing and account number it is a piece of cake to create a fraudulent check with any name, address or phone number you want on it. The good thieves will also have fake ID’s to match the information on the check. A few actions you can take to reduce the chance of check fraud in your store include, requiring a government issued ID for check transactions and recording the ID number on the check. If your POS system can electronically process a check let it. Don’t override the system if a check is declined. Look for high dollar checks being written in the later evening hours and on weekends when banks tend to be closed. The bad guys are counting on you not being able to verify account information.

     Counterfeit money is a problem and with high quality printers available on today’s market it is easier for criminals to create currency that at first glance appears very convincing. Without going into specifics, counterfeiters have found ways to get paper that can pass muster with regular people like you and me, though trained bankers would notice the difference in quality. They spread their money around a town for a few days and then leave before authorities can start following a trail. The only thing I can suggest to combat these thieves is to watch for the small purchases, such as a pack of gum or soft drink being purchased with a $50 or $100 bill. The criminals are getting real money in change at the cost of no more than a couple of bucks.  Along the same lines, watch for the $1 bills that have been altered by pasting higher denominations on two of the corners, usually $50’s and $100’s although sometimes $20’s are used. These bills will be mixed in with several other bills with the dollar corners concealed in the stack.

   One last word of caution, if you use the words “In Training” on your name badges, stop! Criminals look for people they think are new and easier to con. Identifying your new people is an invitation for trouble.  Financial transaction fraud can be expensive and cost you a lot of money. Properly training cashiers and monitoring transactions can help you deter the crime from happening in the first place.