Richards International Group provides comprehensive security solutions, cost-effective loss prevention & management consultancy and clinical cleaning services.

Making effective use of our well-trained and experienced loss prevention consultants, fully trained/vetted security & cleaning personnel, we are able to provide you with services that are tailor-made to your individual requirements.

OUR SERVICES:

• Training & Consultancy
• Security Services
• Forthcoming Events
• Resource Centre

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Do you know that only 21% of all retail shrinkage is the direct result of customer-related theft while 79% is caused by employee theft, error and intentional damage.

Do you also know that with suitable training and the implementation of a loss prevention strategy, 68% of your shrinkage can be controlled?

Do you know that employees provided with shoplifting awareness training is the most effective weapon in your arsenal against shrinkage?

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Training report

Our Training Modules

Research shows that retailers spend less than £65 per employee on training annually. In the current retail environment of high tech, high speed rapid change, it is imperative that retailers understand that the quality of their employees will be the deciding factor that will determine success or failure. This is the Google, Facebook, YouTube and EBay century the quality of your employees can be a huge competitive advantage.

Our training modules include:

Retail Executive Training Programme

Retail Managers Training Programme: Combined , Perishable , Non-Perishable

Retail Store Associates Training Programme: Combined , Perishable , Non-Perishable

MODULES EXPLANATION:

1.Understanding Shrinkage

Shrinkage is the difference between the value of the goods received and the amount they are sold for at the point of sale. The factors that are responsible for the reduction in the value of goods at the time of sale -- is at the heart of this section.

2. Employee Deviance

Employee theft accounts for between 41% -- 55% of retail shrinkage. Even though employee theft is less frequent than customer related theft the value is substantially higher. One incident of employee theft is equivalent to eleven incidents of shoplifting. This section will show you how to prevent or minimise  incidents of employee theft.

3. Employee Error

Employee errors in pricing, accounting & receiving accounts for an estimated 18% of retail shrinkage. Cashier error alone accounts for an estimated 4-5% of total store shrinkage. In this section you will learn the various types of employee errors and how to avoid them

4. Shoplifting

In today’s retail environment where competition is fierce & consumer demands are constantly changing, retailers are faced with the challenge of creating a relaxed & friendly shopping environment, where goods are easily displayed but well protected.

This is a tall order in an era where shoplifting has moved from teenage leisure activities, the necessity of addicts & the homeless to Organised Retail Theft (ORT).

The advent of EBay and other such sites; where goods are freely traded without the need for a store has created a whole new dynamic in retail shoplifting.

ORT criminal gangs specifically target retail organisations perceived as soft targets. In this training section, you will learn the various aspects of shoplifting and how with the implementation of simple strategies they can be prevented.

5. Back Door Receiving

Most retail organisations fail to give the required level of importance to the receiving process. Backroom receiving shrinkage accounts for approximately 10% of annual retail shrinkage.

50% of receiving shrinkage is attributed to receiving errors and the other 50% is caused by vendor & employees dishonesty. Our receiving training modules identifies the causes of receiving shrinkage and provides ways of reducing them.

6.Robbery & Burglary

Incidents of robbery and burglary constitute a serious & potential costly challenge to retailers. Even though the rate of their occurrence is minimal the impact can be long lasting therefore it is essential that retailer are aware of all the risks associated with them in order to take the necessary precautions.

A retail employee caught up in an incident of robbery could be traumatised for a long time, resulting in additional labour costs or a potential law suit. This section gives an overview of these incidents in the UK and present ways of ensuring that retailers are not victims of either.

7. Creating A Culture of Loss Prevention

The thinking in the retail industry is: “We must increase sales, we must increase sales!” Increasing sales covers all transgressions, as long as sales are up the rest does not matter.

But the key questions that retailers need to ask themselves are:

Does an increase in sales lead to an increase in profit?

Yes they rang the till but did they hear any sound?

As a retailer when you increase sales, you also increase the possibility for shrinkage.

The only way to make profit in retail, (you can take this statement to the bank) is to increase sales & reduce shrinkage.

How do you increase sales and reduce shrinkage? You do that by creating a culture of loss prevention. In this section, you will learn how to create that culture of loss prevention within your organisation.

Training Timetable

Service Deliverables

Package Platform

Richards International Group provides comprehensive security solutions, cost-effective loss prevention & management consultancy and clinical cleaning services.

Making effective use of our well-trained and experienced loss prevention consultants, fully trained/vetted security & cleaning personnel, we are able to provide you with services that are tailor-made to your individual requirements

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• Guide
• Links to external sector sites

Our resource page contains free whitepapers, best practices and articles that were written to help retailers achieve their best ever results.  In the resources page you will also find a list of the best business books ever written that every entrepreneur must read. Leaders are readers. In the 21st century those with more information will lead the field for others to follow.  Do you want to be a leader or follower? Start.

Articles

How to Prevent Shoplifting

How to Allocate Retail Loss Prevention Funding

How to Prevent Robbery and Burglary

How to Make Profit in Retail

How To Succeed In Retail Business

How to Prevent and Reduce Backroom Receiving Shrinkage

How to Reduce or Prevent Retail Employee Error

How to Reduce & Prevent Retail Employee Theft

How to Reduce Non-Perishable Shrinkage

How to Prevent Perishable Shrinkage

How to sell security

Whitepaper

Preventing &  Reducing Shoplifting

Preventing and Reducing Backroom Receiving Shrinkage

Reducing Employee Error

Reducing & Preventing Employee Theft

Retail Loss Prevention

Reducing Non-Perishable Shrinkage

Preventing Robbery and Burglary

Best Business books

Our mission is to:

• Show respect and understanding for the values of our host communities and contribute to raising the standard of living of the less fortunate within those communities
• Provide solutions and answers to our customer’s queries
• Minimise loss to life and property
• Provide value for money
• Offer uncompromising commitment to customer satisfaction
• Encourage creativity and innovation amongst our staff and place their wellbeing above all things in our day to day operations
• Provide reasonable returns to our investors and shareholders

Richards Security aims to create a one-stop information reservoir where anyone requiring information from any security sector can receive such information without having to surf through the web for hours.

You can obtain current security information on the following sectors: retails security, corporate security, hospital security, school security, airport security, building security,

To download and read our latest white paper, click here

Calculating ROI is essential for helping management make the right decision on investment and expenditure. This is especially relevant in the retail environment where security has always been perceived as a grudge purchase. To use this calculator you need to:

Input your current turnover in Box One

Your current percentage of shrinkage in Box Two and the monetary value of that percentage will be automatically generated in Box Three.

It has been established by retail experts that 68% of retail shrinkage is controllable with the implementation of the appropriate shrinkage management system. Therefore, Box Four will automatically generate the controllable current shrinkage figure in monetary terms.

You need to insert your current security cost in Box Five and your ROI will be automatically generated and displayed in Box Six.

Retail Return on Investment Calculator

Since the introduction of the Private Security Industry Act 2001 and the Security Industry Authority (SIA) Approved Contractors Scheme, the security industry in the UK has experienced a huge transformation and is now a fully government regulated industry. Although the SIA itself will admit that there is still a long way to go before the industry acquires the desired professionalism the body hopes to achieve, it has significantly improved the image & perception of the security industry.

The licensing of security officers prohibits ex-cons and illegal workers gaining the necessary license for any security positions. Companies can now rest assured that security officers sent to their premises have had some form of training and background checks.

However, the act of purchasing security services and equipment can be a daunting task in terms of:

• Buyers knowledge of the security industry
• Type of security required
• Cost
• Service levels to be expected

This guide aims to give you a snapshot of what to look for when sourcing for security services.

Issues for Consideration

What is it you want to protect?

Buyers of security services must consider what is it that they want to protect and from whom? Do you intend on protecting staff, products or premises? Is the source of the threat from internal or external persons?

Why do they need protecting?

Whether in the retail or construction industry billions of pounds worth of products are stolen daily resulting in increased costs and reduced profits. All companies have a duty of care to ensure the safety of their employees especially when dealing with the public. Consequently, the answer to this question is imperative in order to put in place the most appropriate security measures.

What type of security is available?

• Electronic security
• Manned security officer
• In-House or private contractor

Which method of deterrent is most cost effective?

Consideration of the above questions will determine the level and type of security requirements: physical or electronic security as opposed to manned security officers. Each option has to be fully costed to determine the return on investment. Taking into accounts the following: security officer: uniform, NI, hours worked, holiday and sick pay & sickness cover, breaks & training and type of equipment.

Checklist

In-house security

The following must be taken into consideration when opting to use in-house security:

• The vetting process: does your organization possess the capacity to vet and screen applicants to the BS7858 standard?
• Experience: Does your security manager possess the requisite skill to recruit, train and manage the staff?
• Suitability: Has your organization conducted a security audit/assessment? Is in-house security suitable for your security needs?
• Training: what training programme do you have in place?
• Licensing: Are all your security staff SIA licensed?
• Cost: is it cost effective?

Checklist

Private Security provider:

The following must be taken into consideration when opting to use a private security provider:

• Company’s accreditation: Are they SIA Approved Contractors / ISO certificated?
• Vetting process: Do they comply with the BS7858 vetting standard?
• Quality Management System: Do they possess the following policies:

Health & Safety, Environmental, Quality manual, Equal Opportunities, Staff Development, Recruitment & Screening and Corporate Social responsibility?

• Trading history and reputation: How long has the company been established, what is the experience of the management team and what type of reputation do they have in the local community?
• Membership of Trade Organisation: What trade organizations do they belong to?
• Client base: recommendations and references?
• Resources: What are their specialties, i.e. retail, construction, corporate or residential and location & coverage?
• Mobile patrol and Alarm response: Response time
• Professional officers: Dress code, communication skills, knowledge and training
• Quality of equipment: Reliability of installed equipment
• Return on Investment: Does the proposal reflect your expectations and requirements?
• Contract: Fixed-term or flexible?

Adherence to British security standards: BS 7984:2008, BS 7960:2005, BS 7958:2005, BS 7939:1999, BS 7872:2002, BS 7858:2006, BS 7499:2007, BS 7112:1991, ISO 9160:1988, BS 5979:2007, BS 5544:1978, BS 5454:2000,

BS 5357:2007, BS 4783-1:1988, BS 4737-4.3:1988, BS 3621:2007

Ferndale Project

In December 08, the Operations Manager of Richards Security was on holiday and an incident occurred on our premises, he abandoned his holiday and return to handle it. This is the level of commitment and personalized service we have been receiving from Richards Security from the day we signed up with them. We can call the management team of Richards Security 24/7, 365 days a year and they will be available to attend to our needs.

Helen Kay
Ferndale Project
Facility Manager

Holiday Inn

Before we hired Richards Security, there was constant damage to guest vehicles at our hotel car park however, since Richards Security came onboard, break-ins at the car park have ceased.

Gianfranco Boccuzzi
General Manager
Express by Holiday Inn
Salford Quays
Manchester

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Copa cabana Nightclub

Whenever Richards Security introduce a new staff to our venue, a member of the management team accompany the new staff and ensure he is properly trained before he is left on his own. As a restaurant and club, our patrons are our most valuable asset, therefore ensuring staff are properly trained reduces the risk of conflicts and give our customers the level of customer service we pride ourselves on.

Christian Moran
Manager

An Overview of Shoplifting

In today’s dynamic retail environment where competition is fierce and consumer demands are constantly changing, retailers have to continually keep pace with these demands, provide a relaxed and friendly shopping environment whilst at the same time ensuring that their merchandise are discreetly protected. This is a tall order in an era where shoplifting has moved from teenage leisure activities, the necessity of addicts and homeless to Organised Retail Theft (ORT).

In the past the majority of shoplifters lived within a five mile radius of the stores they stole from. They were mostly petty criminals and opportunist thieves. However, with the emergence of ORT, criminals now move from one community to the other; travelling far greater distances. As a result of ORT and the professionalism with which it is executed, it is becoming increasingly difficult for loss prevention and law enforcement officers to profile and track known shoplifters.

Profiling Shoplifters

Shoplifters come from all walks of life… social, ethnic and economic groups. They may be young, old, poor, rich, employed or unemployed. This sometimes makes it difficult to piece together a comprehensive profile of a shoplifter. Nevertheless, there are times when loss prevention personnel are able to spot a potential shoplifter based on their demeanour, appearance and movement. For example someone dressed in a winter jacket in the middle of summer, carrying an empty bag into the shop or entering an exclusive shop but not dressed to match the profile of customers that would ordinarily visit that shop are more likely to be looked upon as a suspect. However, professional shoplifters are aware of these facts and try to blend in with the crowd.

Traditionally men shoplift more than women and those under the age of 21 have a slightly higher tendency to shoplift.

The Motive For Shoplifting:

The reasons for shoplifting can be attributed to the following:

1) Personal benefit

2) Peer pressure

3) Economic need

4) Physiological need

5) Mental illness

Categorising Shoplifters

Shoplifters are generally categorised as follows:

Amateur Shoplifter:

An amateur shoplifter may not plan or intend on stealing. They might react to the opportunity or from peer pressure. Amateurs often appear nervous and uneasy.

Professional Shoplifter:

Professional shoplifters are generally highly skilled and difficult to detect. They are usually polite, very cautious and well groomed. They will abandon a plan if they sense any element of detection. They tend to steal portable, compact, high value merchandise that are easy to sell on the internet,  to a fence (receiver of stolen goods) or on the street. A typical fencing operation may sell stolen merchandise to small retail operations or through a flea market network.

Juvenile Shoplifter:

Motivated by peer pressure or temptation juvenile shoplifters often shoplift luxury or trendy items for personal use. They are usually amateur and work in a group to create distraction. Juveniles are occasionally coached and directed by professionals and adults who exploit the fact that the penalty for a juvenile caught shoplifting is less severe.

Kleptomaniac:

Kleptomaniacs are motivated by a psychological compulsion to steal. They steal due to the buzz/ excitement or because they view it as a challenge.

Vagrant and Drug Addict:

Vagrants and addicts are driven by the desire to survive or feed their habits. They often display erratic behaviour and may employ snatch-and-run techniques.

This group of shoplifters present the most safety concern to Loss Prevention (LP) personnel because of the irrational responses they may exhibit when confronted, particularly when they are under the influence of drugs or alcohol. They are the most dangerous as their physical need for drugs at the time, might result in desperate or unpredictable behaviour.

Methods Of Shoplifting

Here are few of the ways in which shoplifters operate:

• Shoplifters operate alone or in a group. If operating as a group, one person is used to distract LP personnel. When LP personnel focus on the person who appears and behaves like a shoplifter, the accomplice is able to carry out his/her act unnoticed.
• They conceal  stolen merchandise in bags, newspapers, shopping bags, purses, clothes fitted with large/deep pockets, sewn inner lining of a coat, hooks sewn into coats or underneath clothing.
• In changing rooms – They change to stolen clothes or shoes and leave their own clothing or put it over the stolen outfit.
• Female shoplifters carry merchandise between tights, bras or hidden under long skirts, or  overcoats
• Some shoplifters wrap clothes around their legs, or tuck stolen items into socks
• Small items can be held in hands or gloves
• Boxes with fake bottoms or products stuffed into an emptied-out box
• In certain areas some shoplifters snatch merchandise and make a run for a waiting get-away vehicle.
• Pushchairs or car seats in the shopping trolley’s are also used to conceal stolen merchandise

Times of Shoplifting Occurrence

Psychologists say that 90% of the things we do are habitual. From the time we get out of bed, the way we wash, dress or eat is the same daily.  Shoplifting is also a habit, therefore, not an exception to this rule.

Individual shoplifters tend to steal at a particular time of the day / week. In general shoplifters do not like being noticed, therefore they tend to carry out their acts mainly when the store is full with shoppers, which is at lunch time, between 12:00 noon and 6.00pm and on weekends.

For stores that operate a 24/7 service, shoplifters steal late at night or early in the morning. They see these as times when there will be fewer LP personnel and in any case those on duty tend not to be as vigilant as they would be at other times.

Indicators of Shoplifting

• Inappropriate clothing i.e. overcoat on a hot day or a raincoat when it is sunny.
• Someone carrying empty bags, boxes or even umbrellas that can be used to conceal stolen merchandise
• Customer  taking merchandise to secluded areas of the store
• A nervous-looking person who constantly touches the back of his/her head, tugging at sleeves, or adjusting socks, breaks into cold sweat, is flushed and  constantly moistening lips
• Exceptionally fussy people who cannot seem to make up their mind about a purchase, or do not appear interested in purchasing an item they have been examining
• Someone who revisits the same area several times without making a purchase
• Constantly looking around instead of at merchandise on the shelf or in their hands
• Frequent visitor to a store but never making a purchase
• Lays a coat over merchandise in the trolley
• Walks into the stockrooms or behind counters or other places that are barred to the public
• An early or late night shopper
• Someone monitoring the movements of employees
• An empty shelf or hole in a shelf
• Appears startled when approached by employees and other customers
• Repeatedly sends employees away to look for products
• Someone who enters or leaves the store quickly
• Takes products into the toilet
• Someone looking up for security devices especially CCTV
• Removes product from packaging
• An unaccompanied juvenile during school hours

Ways of Preventing Shoplifting

Shoplifting, like any crime, is impossible to eliminate. For some people, shoplifting is a profession, this is how they make their living, therefore, whatsoever, the perceived danger or difficulties they may encounter at a particular time, it is not enough to dissuade them from committing the crime. There are also some who see shoplifting as literally their only means of survival.

For drug addicts wanting to feed their habits, shoplifting provides the only means of obtaining the necessary resources. With this in mind, how can retailers prevent their store from being used by a professional shoplifter who sees it as a job or drug addicts who consider it their cash dispenser?

The first step is to understand that shoplifters will operate in an environment they perceive as easy.

It is therefore essential to ensure that your store is not perceived as an easy target. In many instances when a shoplifter takes up residency in your store, they never leave until the final curtain is brought down.

These are some of the measures that can be used to help combat shoplifting:

Trained employees. Employees trained in shoplifting awareness are a more effective tool in combating shoplifting than any other tool a retailer can deploy.

CCTV . Let me tell you what shoplifters do to test whether your CCTV is being watched, they will steal things right under the camera. A small thing that they know if they are caught they can pay for and the store will not be willing to prosecute them for. If they get away with it the first time, they will do it the second time by the fourth time they will increase the value of the item they take. Because now they know that they are not being watched.

Electronic Article Surveillance (EAS)

EAS tagging systems provide both physical and psychological deterrents to shoplifters. Even though some shoplifters are beginning to find ways of neutralizing the system, it is still an effective tool particularly against amateur and juvenile shoplifters.

Strategic Merchandising is also an effective tool against shoplifting. Merchandise must be positioned in locations that make them difficult to remove from the store. Furthermore high value merchandises need to be better protected either tagged or placed in a secure display. Basically strategic merchandising is ensuring that merchandise is sufficiently secured without portraying a negative perception to legitimate customers.

Exceptional Customer Service is another indispensable tool for combating shoplifting. You can never go wrong with extraordinary customer service. When approached by a member of the staff, a legitimate customer feels valued and appreciated. On the other hand a shoplifter may feel nervous and appear uneasy. The last thing a shoplifter wants is to be noticed. Therefore instead of appreciating exceptional customer service; they will run away from it!

The Legal Pitfall For Dealing with Apprehended Shoplifters

As we have stated previously, shoplifters come from all walks of life. Many professional shoplifters by their very nature know the law better than many poorly trained LP personnel. Some have been in court many times and listened to arguments made by their solicitors that they already know the limit of the store LP department.

Therefore, it is essential that LP personnel have a solid understanding of their legal boundaries before apprehending a suspect.

The following steps need to be followed to the letter before attempts are made to apprehend a shoplifter:

Step 1:

The suspect must be seen to have entered an aisle and remove an item from the store display. There must be certainty that the suspect did not bring the item with them into the store.

Step2
The suspect must be seen to conceal the item – The LP personnel should know what item and exactly where it is concealed.

Step 3

The LP personnel must maintain a constant and uninterrupted surveillance of the suspect from the time the item is concealed to the time the arrest is made.

Step 4

The LP personnel must observe the suspect walking out of the store without making any attempt to pay for the item.

Apprehending Shoplifters:

Accusing someone of an offence is riddled with legal landmines that LP personnel needs to be wary of. False arrest in retail cost retailers millions every year in law suits and legal fees. That is why it is imperative that the above steps are followed to the letter before an attempt is made to arrest the suspect.

When the LP personnel or employee is satisfied that he/she has fulfilled the above criteria, before attempting to institute an arrest, the following have to be considered.

• Call for back up; never assume that you can handle the situation on your own, you might be surprised.
• The back-up is not only relevant for safety reasons. It is important for legal reasons in the event the suspect resists and things got out of hand.
• Observe the surroundings for any object that maybe used as weapon against you. If you have any reason to believe that a suspect is armed, do not attempt an arrest. It is better for the suspect to escape than to risk personal injury or injury to innocent bystanders. No amount of merchandise justifies sustaining an injury.
• Make sure you are certain that they have the merchandise before attempting an arrest. If in doubt; let them go.
• Introduce yourself and ensure you stand facing the suspect and you can see both hands.
• Try as much as possible to avoid any form of physical contact, if the need arises keep contact to a minimal. If you are not trained in physical intervention and it gets physical it is advisable to retreat. Injuries to you, the suspect or a customer could have far reaching consequences… even as far as in a court.
• If the suspect denies carrying any merchandise, be specific; name the item that was taken from the shelf and describe where it is hidden. Speak in a confident non-confrontational tone and do not intimidate, ridicule or embarrass the suspect.
• The main objective is to recover the stolen item. If it is not possible at that point, obtain an acknowledgement of guilt before walking the suspect to the holding room.
• If the suspect attempts to walk away, reposition yourself and attempt to minimise the incident and consequences and persuade him/her to corporate. Use non-confrontational hand gestures to guide the suspect in the direction you want him/her to go.
• If it seems it is getting out of your hand, remember the objective is to retrieve the stolen item, therefore if you can persuade the suspect to give you the item and leave, it might be the best option. If that does not work! Let them go.

The Reasons for Recording Shoplifting Incidents

It is possible that a shoplifting case might drag on for years at which time the employee involved might have left the organisation or their recollection of the incident might have faded. This renders it imperative that a report detailing each and every aspect of the incident is recorded right after an incident.

The report needs to contain the reason for the initial suspicion, the actual theft, the stop process, time, date, witnesses and processing activities. If the shoplifter can be persuaded to make a written statement without duress, it is all the while better as this will make for a strong case in the event the case is taken to court.

Merchandise Pass-through

Situation:

Cashier passes an item into the basket without scanning it through the till as a sale. (This can be done at standard tills, self check-out tills or the customer service desk).

Warning Signs

• Customer chooses  a  longer cashier line over  a shorter faster one
• Customer leaves if a certain cashier is not available
• Shorter sales receipts than the size of the order suggests
• Cashier who entertains a high number of visitors during working hours
• Customer singles out and holds out for a particular cashier to return to his/her till
• Scanned and un-scanned items are mixed-up on  the conveyor belt
• Shoppers who select unusually large amounts of high value items
• Cashier slowly scans items individually
• Signals or acknowledges accomplices in the queue
• Usually bubbly cashier becomes strict or loses sparkle with a specific customer
• Cash tendered appears less then amount required for the size of the purchase

Merchandise Theft

Situation:

An employee hides or takes merchandise without paying

Warning signs:

• A preference to park personal car behind the store or next to the outside bins
• Seldom takes breaks with colleagues. (This suggests a fear of arousing suspicion or that  others will learn of thefts)
• Bagged merchandise stacked  next to a till
• Stashing away goods in the store
• Shows a preference for inappropriate large work bags
• Always first in and last to leave
• Taking goods to and from toilets or changing room
• Product or packaging found in the vicinity of bins or compactors
• Discarded empty product packages found in backroom or workstation
• An eagerness to take out rubbish especially  just before a break or home time

Employee Stealing Cash

Situation:

An employee steals cash

Warning Signs

• Above normal  use of the ‘no-sales’ key
• Use of calculator or other counting aids to track cash removed.
• Frequent refunds
• Employee who regularly borrows money from colleagues
• Habitually closes till or cashing up early
• Unduly straightening or counting money in the till
• Leaving the till open for long periods after sale
• Keeping the cash drawer open from one customer sale to the next
• Cashier holds on to cash and puts it aside instead of in the till
• Regularly adding coupons into the till (May be removing equal amounts in cash)
• Employee who appears to live beyond their means

Aiding Shoplifters

Situation:

Employee colludes with shoplifters and alerts them of loss prevention activities

Warning Signs

• Employee who supplies customers with extra carrier bags
• Regular visits by family members and friends
• Employee who assist other dishonest employees or shoplifters
• Staying clear of management
• Always on guard against management, loss prevention personnel or other store employees
• Unjustified interaction with security officers or store detectives

Under-Ringing

Situation:

Cashier regularly marks down selling prices without authorisation

Warning Signs

• A price discrepancy as multiple items not scanned at the same price
• Cashier who manually enters instead of scans items
• Cashier who has access to spare SKU barcode at the till
• Cashier with a below average customer spend for all periods
• Items on till records that do not match the items covered in the transaction

Refund Fraud

Situation:

A customer service employee creates a fake customer refund and takes the equivalent in cash from the till.

Warning Signs

• Customer queries the lack  of a  receipt for a return and refund
• Valid customer receipts left on the customer service desk or found  in the bin
• Employee completes refunds under another employee’s till  ID number
• Employees completing a refund with no customer present
• Employee completes a refund for a customer without a return of merchandise
• Employee holds on to customer receipts after a sale
• Falsified customer details on refund records

Credit Card fraud

Situation(s):

a)      A cashier knowingly uses a stolen or unauthorised credit card as payment

b)      An employee fraudulently refunds to their own or an accomplice’s credit card

Warning Signs

• Recording a customer’s credit card number
• Holding  on to the customer’s copy of a credit card receipt
• Cash and credit totals do not balance
• Cards taken away from the presence of the customer
• Signals or acknowledges accomplices in the queue

Fudged Voids

Situation(s):

a) Cashier voids a valid cash sale and takes the equivalent amount in cash

b) Cashier conspires to void items after they are scanned to reduce the total sale; thus facilitating the passing of merchandise.

Warning Sings

• Voided transactions followed by no-sale
• Multiple negative transaction
• Supervisors input sales and sanction their own voids
• Same day customer receipt discovered at the register or in the bin
• From time to time a cashier registers sizable overcharges (could not remove a cash)
• Cashiers with unexplained low scanning percentages
• Cashiers holds on to customer receipts
• High cashier usage of counting aids (i.e. paper/pencil, calculator, paper clips)

Cash Office Theft & Fraud

Situation(s):

a) A cash office employee fakes accounting figures thus enabling the removal of cash

b) A cash office employee falsifies company payroll, attendance records or time sheets

Warning Signs

• Abnormally high or low cashier variance reports
• Ordinary audits of safe / petty cash reveals cash shortages
• Bank statements do not tally with deposits recorded at the store level
• Cash office totals are out of sync with deposit figures
• Bank finds and reports deposit short
• Differences in cashier statements are not trailed

Typical Warning Signs

Situation(s):

Managers should be mindful of and clued up to basic warning signs that might signal theft problems.

Warning Signs

• Employees who constantly monitors the movements of managers or loss prevention personnel
• Recurring variances match known debts periods
• An employee expresses concerns  about company policy or charges that managers do not follow set procedures
• Reluctance to take part in meetings about integrity or theft
• Noticeable increases in variances before employee holiday or bank holiday weekends
• An employee leaves without notice or calls in sick in the middle of a  routine oversight or natural audit process
• Discontentment with the job and/or supervisor
• Employees oppose re-examination or audit of financial data or records
• Unusual enquiries into loss prevention coverage hours

How to Reduce or Prevent Employee Theft

Minimizing employee theft requires the organisation to:

• Develop and follow through positive HR programs that are centered on reasonable compensation, good working environment as well as employee sponsored activities.
• Back a high profile security program strengthened by a  strict company policy of prosecution
• Devise and implement secure  procedures for handling merchandise and cash; that leave clear & concise transaction / audit trail
• Reinforce strong recruitment and selection procedures

Methods to deal with employee theft

• Pre-employment  screening
• Conduct  in-depth background and credit checks
• Undertake a detailed examination of employment history and ensure the references are thoroughly checked

Policies & Procedures

Any effective loss prevention policy should include:

Key/Perimeter Access Control

• Entry and exit access to store must be tightly controlled
• The organisation should reserve the right to search employees entering or leaving the store (Including sub-contractors, salesmen and company reps)
• Maintenance personnel and sub-contractors who have to work within business hours should always be accompanied by security
• Employees should use only designated entrances to the store
• Access to the drop-off door, front entry, and emergency exits must be monitored and regulated.
• Change key and lock combinations periodically (Known to authorised personnel only)
• Run key count regularly.

Scanning Policy

• Make the scanning policy part of cashier training
• Spell out and include essential points in procedures for the manual inputting of barcodes and scanning of items
• Scanning policies should also provide specific guidelines for using the multiple quantity key

Employee Honesty & Integrity Policy

• A clearly written statement of the organisations honesty policy should be distributed to all employees
• Employees  should acknowledge receipt of the policy by signing and returning a copy which will be kept on their personnel file
• Detailed explanation of the policy should form part of  all new recruits induction and should be periodically discussed to ensure that employees understand the organisation’s perspective on honesty

Employee Shopping Policy

• This section sets out the times employees are permitted to shop and limits their shopping to periods when they are not working. That is either before or after their scheduled shift or during break.
• The policy should also state that there will be no priority or preferential treatment for employees outside the normal courtesies offered to customers. Also that staff discount cards should not be used for friends/families shopping – it should only be used for the sole benefit of the employee and at the designated times
• The policy should also require that receipts be kept with the items at all times
• Employees should be barred from scanning their own, their friends or families’ shopping.

Void; Refund; No-Sale Policy

• It is incumbent upon management to explain the policy regarding the processing and approval of negative transactions including void, no-sale, or refund to all employees.
• As a best practice the organisations should authorize only trained supervisors to conduct this task. Those supervisors should never be allowed to scan their own void transactions, refunds or no-sale.

Hoarding Merchandise;

• Boxes, packages and discarded bundles of merchandise should be placed in designated locations and constantly monitored

Unofficial Markdown;

• In the event of a markdown various records must be adjusted to reflect the lower inventory value
• Discourage employees from creating their own discounts. This can be achieved with frequent inspection. (Employees who desire items at the height of the season and certainly before discounts sometimes create their own price by intentionally damaging products).

Receiving & Shipping Policy

• Ensure all incoming shipments are physically checked and verified against the accompanying invoice or delivery note.
• Receipts given to delivery people or receiver should confirm a shipment as complete or record and report shortages found.