Signals that indicate employee theft – Part 7 of 10 – Atlanta Georgia

December 1, 2010 by Leave a Comment

Signals that will expose possible employee theft or internal theft with goods or money.

  • Certain salespersons who, with a certain regularity, certainly higher than average, are found to have accepted false or stolen credit cards or other false documents. This often indicates collusion. In exchange for accepting the false card or document the salesperson may add an extra amount to the invoice. The difference is subsequently taken from the till without a loss showing.
  • The discovery of non-branch products on the premises can indicate the presence of a private-shop-within-a-shop. For their own account, one or more employees buy products for cash and sell them on. Barmen/maids may also bring their privately bought bottles and sell them at bar prices, pocketing the income.
  • A employee that is involved in internal theft is often recognised by his or her own deviant behaviour. Exaggerated preparedness to do extra or work overtime have already been mentioned, but note also a reticence to delegate, or not to take holidays or only take short ones. Delegation or absence could lead to discovery.  Someone keeping everything locked up when other employees would not, or breaking off telephone conversations when someone approaches may be indications of fraud.
  • If a company closes for an annual holiday period, the amount the fraudster has ‘lost’ during the enforced holiday period will often be made up during the days after a return to work. The result is a sharp increase in the company’s losses during this period.
  • If a sudden rise in telephone or Internet costs is noted, it may be a good idea to ask for a specification or check the computer log. This may reveal visit to pornographic sites or telephone numbers, or surfing the net at the company’s expense.
  • Sometimes physical characteristics play a role. The most frequently seen in perpetrators whose motive is prestige is the possession of company keys or a key-card with general authorisation. Such a person derives status with every jangle of their key ring or use of the card.

All types of employees can be involved in employee theft or internal theft . Do not over look someone who does not have access to cash. Could they be submitting falsified expense reports, or stealing your customers credit card numbers. Employee theft and internal theft can also show up in the relationships your employees have with Vendors and Delivery People.

I know I keep saying this but remember it is less expensive to have an over all prevention program in place and conduct an occasional employee theft investigation than the other way around. Most of the time an employee theft investigation only takes a day or two but prevention is still the key.

Watch for more parts to come in future blogs!

For more information about internal theft or employee theft contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia

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Understanding differences in security and loss prevention

November 30, 2010 by Leave a Comment

As a loss prevention professional I run into retailers and business owners on a regular basis who get a little confused about the differences between security and loss prevention.  These two areas work together and are typically different systems, and sometimes are the same thing.

Wiki defines loss prevention this way: “loss prevention (in some retailers known as asset protection) is a form of private investigation into larceny 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.

Usually when I introduce myself to a retailer they say “we have a security system”.  See the disconnect in the wiki definition and the response?  Security personnel or burglar alarms are tools used in a loss prevention plan to accomplish the goal of preventing theft.  You could say that these tools are the tactical side and the program is the strategic side.

Left alone with no one actively using these tactical tools, like a camera system, results are often minimal at best.  Camera systems do not deter amateur thieves because they know no one is constantly watching them, if they are even turned on.  Burglar alarms are not armed during business hours when shoplifters are active.  Employees know the systems from the inside and known how to defeat them.

Consider consulting a loss prevention security professional to get an assesment of your current situation and recommendations of how to position yourself to prevent theft both internal and external.

For more information visit:  security and loss prevention 

 

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Clothing Security Tags Prevent Theft

November 30, 2010 by

Checkpoint Systems clothing security tags  are great tools in the arsenal of retail theft prevention.  These clothing security tags are available in different colors, sizes and options for tagging high end / boutique clothing that you do not want to puncture with the typical pin attachment.

How the checkpoint clothing security tags work is via RF (radio frequency) circuitry built into them that will react to the checkpoint security systems antennas installed at entry and exit points for the purpose of retail theft prevention.  The  clothing security tags will generate a signal when they are positioned in range of the checkpoint antennas and set off the alarm.  This will alert staff of the potential theft occurring and also alert the shoplifter that they are in trouble.

Less retail loss due to theft means more product available for sale and studies show that equates to a boost in sales.  Price Waterhouse Coopers recently found just under 10% increase in sales with one retailer who installed a checkpoint security system.

Less losses also mean boosted profits.  Loose one $10 item and it will take the average retailer an additional $500 in sales to earn enough profit to recover from the loss.  If you  stop shoplifting losses the effect on profit margins are easily 50% to sometimes 100% increase in net margins.

Using a checkpoint security system will also increase employee awareness of potential shoplifters keeping more eyes on your merchandise and processing issues more effectively.  Systems like this will send a message through the shoplifting community that the retailer is serious about retail theft prevention and the thieves will move on to other unprotected stores.

To learn more visit:  clothing security tags 

 

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Past Behavior Revealed in an Employee Background Check

November 30, 2010 by

Past Behavior Revealed in an Employee Background Check

How much do employers expect to find out from an employee background check?

Realistically, that depends on the depth and scope of the investigation, but the answer is that there is plenty that can be determined from even the most basic of background checks.

The first example is the information that can be obtained from a criminal background check.  Determine which jurisdictions are most likely to yield information and center your search there, whether it’s a county court search or a statewide repository.

The results will provide the employer with facts that will be useful in making the hiring decision.  No record found?  Great, the applicant has had no serious issues with the court.  Remember that juvenile records are generally not released to the public.

Misdemeanor conviction?  As a rule, these less serious violations probably won’t prevent an employer from hiring an applicant unless the charges are for theft or battery.  A felony conviction might preclude hiring someone as a matter of policy.

Also revealed might be tendencies toward violence (fighting, battery, assault); drug or alcohol abuse (possession, distributing, DUI, possession of alcohol under age, public intoxication); or other detrimental behavior (fleeing or obstructing police, disorderly conduct, trespass).

Although past behavior may be an indicator of future acts, it’s important to remember that the employee background check should be considered only as a part of a larger process in determining the suitability of a candidate.  Always look at the circumstances and relativity of any facet of the results when making the hiring decision.

Questions about employee background checks?  Call 770-426-0547 or click here for more information.

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Signals that indicate internal theft – Part 6 of 10 – Atlanta Georgia

November 29, 2010 by Leave a Comment

Signals that may point to possible employee theft or internal theft with goods or money. Do not forget you must train your employees what to look for. They will help you prior to an employee theft investigation .

  • An increased frequency of reports of faults in delivered goods.
  • Faults noted by the same employee despite other personnel carrying out the same checks.
  • Personnel repeatedly fail to follow instructions such as daily bank deposits of cash.
  • The seeming forgetting of important daily tasks such as switching on the alarm, closing doors, or storage of expensive property in special cupboards being followed by a break in or ram-raid.
  • Branch employees ‘forget’ to report losses or other unusual events or are repeatedly the ‘victim’ of an unfortunate incident or circumstance.
  • Checks or opening and closing times show deviations such as extremely early or late times, whether or not on the same day every week.
  • Opening the premises during closing times to show round family and friends etc.
  • Ringing up packed goods of various quality and cost for the same price.
  • Giving the customer various goods but only passing the cheapest article past the scanner. Security measures are removed and all articles are bagged as normal.
  • Allowing theft by acquaintances and when the alarm at the exit sounds has a ‘friendly’ (security) colleague carry out the bag check.
  • The salesperson attaches a bar code for a cheap article to their wrist and scans this but acquaintances take dearer articles. Also in this case the till display window is often covered or turned away.
  • The giving of reductions by the salesperson to the purchaser without this reduction being registered and the article subsequently being returned for the full amount.
  • Third parties such as suppliers, collect-clients and drivers are discovered at business locations where they should not be, promptly followed by a report of shortages that are put down to the unregistered visitor.

Employees that steal will not wave a flag that says here I am. You have to watch and be on the lookout at all times. Internal theft or employee theft will be hidden from your view. It will also be made to look like something else such as a mistake. Do not be mislead look for employee theft or internal theft beyond the “facts” you are given. Do not be afraid to ask questions and demand answers. In most cases what you find will then require a quick employee theft investigation to dig the reat out.

Watch for more parts to come in future blogs!

For more information about internal theft or employee theft contact us at employee theft investigation or call 1.770.426.0547 – Atlanta Georgia

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Problems with Retail Shrinkage? Try Checkpoint Security Systems

November 29, 2010 by Leave a Comment

Retail shrinkage is a growing problem around the world today. Retailers are always looking for the best solution to protect assets and boost profits. One of easy and most obvious is adding anti shoplifting equipment like Checkpoint Security Systems.

A growing chain of supermarkets in the south learned the value of a Checkpoint Security System after recently opening a new store and experiencing retail loss as high as 10%. The store management had no clue how or why these numbers were so high, but the corporate office wanted, needed, demanded answers.

Loss Prevention Consultants worked with the store team to develop shrink reduction efforts in store and recommended several tools to help combat the retail loss . Of those solutions, the Loss Prevention Consultants recommended the first step to control loss was to install a Checkpoint Security System. Shoplifting was a large portion of the overall store’s retail loss and had a huge impact on the morale of the store.

Daily the store management team was told of customers that come into the store and “shelf sweep” entire sections of the store, then get out of the store almost completely unnoticed. Checkpoint Security Systems are designed to prevent customer theft by being an obvious, audible and conspicuous deterrent to reducing acts of shoplifting.

The store decided to go with a Checkpoint Security System. The program was rolled out and Checkpoint labels were placed on merchandise deemed high loss. Additional anti theft devices were placed on areas like liquor and some electronics. The Loss Prevention Consultants also recommended using a loss prevention agent to help monitor customer theft activity as well.

As time went on, the loss prevention program created by this team of Store Management and Loss Prevention Consultants should a dramatic return on investment. Within the next inventory cycle, retail shrinkage was cut down to 3.3%, a dramatic decrease in one year. A large portion of this reduction was directly related to the installation of a Checkpoint Security System.

For more information about retail shrinkage visit us at retail loss or call 1.770.426.0547 – Atlanta Georgia

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Prevent Shoplifting NOW!

November 26, 2010 by Leave a Comment

Shoplifters, which amount to one in every ten people that walk in your door, are stealing from you. Why are you allowing it? It is so simple to prevent shoplifting . Do not wait any longer and let even more of your hard earned money slip out the door. To stop shoplifting you need to address the following points:

  • Your Attitude! If you believe that you can’t prevent shoplifting then you won’t. Shoplifters are criminals that steal if YOU give them the opportunity. You will never stop every single shoplifter. But you can create an environment where your good customers like being in your store, visiting with your employees and purchasing your merchandise. At the same time shoplifters will find that the environment is very hostile to them. This is true even if both a good customer and a shoplifter are standing next to each other.

 

  • Your Environment – Customer service is the key. Customer service is the foundation weapon you use to prevent shoplifting . Customers love it, like it can’t get enough of it. Shoplifters hate it and will actually avoid customer service. A good customer that has entered your store is looking for help. That’s why they are there. They enjoy being noticed and paid attention to. In many cases that is why they are in your store as opposed to a large retailer where customer service is basically non-existent. Shoplifters need privacy to steal, don’t give it to them.

 

  • Tools To Help – We know that even with the best customer service provided by trained highly motivated employees that you cannot be everywhere at once. The shoplifter knows that to. So if they can create a distraction or slip away then they have you. Not unless you have an Electronic Article Surveillance (EAS) system. Your more vulnerable merchandise is tagged or labeled. If the shoplifter is able to conceal the product it will trip the sensors at the doors when they try to leave.  But this will ONLY work with a combination of good customer service and EAS.

Don’t let your hard earned sales or merchandise walk out the door with out payment just because of your attitude or lack of preparedness!

For more information about Electronic Article Surveillance, shoplifting or shoplifting training contact us at prevent shoplifting or call 1.770.426.0547

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Retail Loss Prevention and Check Fraud – Atlanta Georgia

November 26, 2010 by Leave a Comment

The scope of retail loss prevention can often be far reaching. Not only does it include preventing shoplifting and internal theft but, in an attempt to continually reduce shrink it often includes prevention of several kinds of fraud. One of the most common kinds of fraud out there today is check fraud. Advancements in technology and desktop publishing software have made it possible for would-be criminals to print their own checks or manipulate legitimate checks to their benefit.

There are several different kinds of check fraud. Those of us in retail loss prevention need to be aware of the different kinds so that we know what to look for. The first kind is forgery; this usually happens when a criminal steals a check, signs it, and then presents it for payment at a retail establishment. These individuals will usually use some sort of bogus identification or try to get away without showing any ID at all. The second kind of check fraud is counterfeiting; this is when a criminal uses desktop publishing equipment, scanners, high-speed printers, etc. to fabricate a completely false check.

Alteration is when an individual uses chemicals and solvents to remove or modify information on a legitimate check. This can be done to specific information on a check or to the entire document. The term ‘check kiting’ refers to the practice of opening accounts at two or more institutions and using “the float time” of available funds to create fraudulent balances. This type of fraud has become increasingly popular in recent years. Your retail loss prevention team should make themselves aware of all the types of fraud and stay abreast of new developments in order to properly combat the criminal element.

For more informationabout security and loss prevention or loss prevention security  contact us: retail loss prevention or call 1.770.426.0547 Atlanta Georgia

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Protecting profits with the help of a Loss Prevention Investigator – Atlanta Georgia

November 26, 2010 by

A loss prevention investigator works to drive sales by proactively investigating many types of losses. As a retailer in the United States, you face many sales killing challenges including internal or employee theft and the brutalizing affect of Organized Retail Crime outfits.

Working a variety of stores from grocery to high end beauty products, I have seen the negative impacts of these types of losses. It is not a pretty site when a store closes because it simply cannot sustain the losses incurred as a result of poor inventory controls, employee theft and external factors. At times, these losses could have been mitigated simply by bringing loss prevention consultants and spending the money to counter these losses.

If a business is losing money, it is crucial to act fast and acknowledge the “hows” and “whys”. As loss prevention investigator , I was brought in to investigate a store experiencing shrink as high as 25%. This was a chain of about 50 stores, which were small boutique type no larger than 3000 sqft. Looking at other stores in the company, this was not the only one with high shrink, just the highest. I looked into everything starting with their receiving practices. I followed the delivery truck several times; I watched trucks being unloaded and audited the store’s receipts. Matching what I could, I found no issue that would lead to explain the losses.

Further, I conducted night surveillances, watching the closing crews and management. Now, any loss prevention investigator worth his salt could tell you that what I saw was cause for alarm. Management on at least 4 nights was in the store several hours past closing, alone. Not only is this a safety issue but offers ethical challenges. As a result of these poor controls, management took advantage.

Several nights of my surveillance, I witnessed the manager put box after box of merchandise outside the back door, near the emergency exit. As she left the building, she would simply drive around back and pick up here “prizes”.

In the next few days, as the loss prevention investigator , I interviewed the manager. She admitted to taking merchandise daily for the last year and a half. However, my investigation showed losses for more the 2 years, in fact, the same amount of time the manager had been with the company.

Work by loss prevention consultants would have stoped this problem before it started.

For more information about loss prevention consultants visit us at loss prevention investigator or call 1.770.426.0547 – Atlanta Georgia

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Using a Background Check Company is Smart

November 26, 2010 by

Using a Background Check Company is Smart

Companies do what companies do.  By that I mean that a company whose business is manufacturing clothespins probably does a great job at producing quality clothespins, but would not do so well if asked to make a wristwatch.  For that, a purchaser would fine a watch manufacturing company.

There are employers using other types of companies rather than a dedicated  background check company to provide various levels of background checks used in the hiring process.  Other types of companies include payroll processors, HR consultants, and private detectives.  All or these companies are great at what they do, but their main business is not background checks.

A background check company will keep its clients up to date on issues of compliance, be available to the client, and belong to a national professional organization such as the NAPSB, the National Association of Background Screeners.

A professional background check company will make available to its clients realistic turn around times because they know their providers and have good working relationships with them.

Your background check company will be dedicated to providing you with the best possible quality product and the best value because background checks are their business.

The background check company, because of the nature of its business, will be close to the source of the information employers need to make smart hiring decisions, and will deliver it quickly and economically.

Need a background check company?  Call 770-426-0547 or click here for information.

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