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Shoplifting & Internal Theft Prevention

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Shoplifting & Internal Theft Prevention Computer fraud To fight the problem, institute strong policies against accepting gifts, make sure employees Many smaller companies are turning to computers require competitive bids, and rotate purchasing for checkout, billing, inventory records and agents and suppliers. Shoplifting & Internal payrolls. The technology may be new, but the crimes are the same – theft, larceny, embezzlement, Good business practices and fraud. Here are some tips to help protect your Theft Prevention business from computer crooks: good management will help avoid many of these problems. Make sure your computer is programmed to reveal unauthorized use or program Tighten your hiring practices alterations. Require job applicants to fill out a detailed application form. Then use it – contact all Separate computer programmer and operator references and former employers. functions. Minimize after-hours access to and use of the Separate functions computer. The bookkeeper should never handle cash. The Make sure programs contain a statement of person who makes purchases should not be the ownership. person who pays the bills. Your accounting system should enforce accountability through a series of Monitor and log all inputs and outputs. checks and balances. Each function should serve as a check on all the transactions that went before. Bribery & kickbacks Have an independent company audit your books The employee who lets a business every year. secret slip for a price … the loading supervisor who ignores a short Set a good personal example order for a little fee … the The boss who takes merchandise and office contracting officer who’ll supplies without paying encourages employees to speed things up for a small do the same. present … These are all examples of bribery. It may not seem like a big problem Keep employee morale high at first. After all, who cares if somebody does a Employees who are treated fairly and generously are far little favor for a business associate? But these little less likely to “rip off” their boss. So get to know your favors can mean big trouble. Watch out for these employees better. Ask for their opinions or suggestions- warning signs: and seriously consider them. Involve your employees in effective crime prevention practices. Consider starting Purchasing agents use one supplier despite a a profit-sharing program. Make sure your salary rates company policy of rotating suppliers. are competitive – an underpaid employee may feel that stealing from you merely “makes up the difference.” Employees frequently associate with vendors or suppliers. Employees receive free tickets for sports Concord Police Department events, shows, etc. For more information on Reputable businesses refuse to submit bids. crime prevention, contact: Concord Police Department One person has responsibility for issuing and (925) 671-3220 approving bids. M-50T AUG2011 Put a stop to shoplifting! Common shoplifting methods customers and pocket the difference or undercharge other employees and friends. Shoplifters assume they won’t get caught. So your Bulky cloth i ng-coats, pants, maternity strategy is to prove them wrong. The following tips outfitsare often used to hide merchandise. Embezzlement can go from simple overloading require forethought and ingenuity, but cost little. Packages, bats, knapsacks, and purses are of expense accounts, to payments made to non- Alert employees may be your best defense. good hiding places. Sometimes they have existent suppliers, to complicated juggling of the Have them greet customers when they false bottoms. company books. enter the store. Teach them to be attentive in a helping way. Make sure that all your Special props include hollowed out books, Watch out for these signals: employees are familiar with shoplifting laws fake casts, umbrellas, secret pockets, belts or in your state and establish procedures for hooks under coats. Records are rewritten so they’ll look “neater.” them to follow if they suspect shoplifting. Folded newspapers or magazines are used to Inventory shortages are increasing in size or Make sure you can see everything that goes hide small and/or flat items. frequency. on in your store. Keep counters low, no more Employees refuse vacations or promotions. than waist-high. Mount mirrors in corners so What to watch for Business patterns change when a certain there are no blind spots. Be aware of customer’s hands-and their employee is absent. Make it hard to leave your store without pockets, purses, handkerchiefs. Customers complain about errors in monthly paying. Place expensive items in the center Notice open packages, purses, shopping bags, statements. of the store away from exits. Arrange counters knapsacks. and display tables so there’s no direct route Collections decline. Watch for customers who are nervous, have to the exit. Some stores put turnstiles at Employees seem sensitive to routine questions wandering eyes, are loitering or lingering in entrances so the only way to get out is about procedures. through the checkout counter. hidden areas. Arrange your displays so that missing items Watch groups of people-especially if one Maintain strict inventory control attempts to keep you distracted. are easily noticed. Place small items in neat You’d be surprised at how many ways dishonest rows or clearly defined patterns. If you must, employees can cheat their employers. fasten expensive merchandise and attach Employees are not exempt A cashier in a grocery store “accidentally” alarms. Reverse alternate hangers of hanging Some experts believe that businesses lose more damages boxes and cans so she can buy them garments to prevent “grab and runs.” to employee theft than to burglary, robbery and at reduced prices. Announce and observe a policy to prosecute shoplifting combined. Examine your management shoplifters. The threat of being caught, practices. Make your employees feel that they’ve A maintenance worker stashes office supplies questioned by police, put on trial and maybe got a stake in your business. Then they won’t be like calculators and typewriters in trash bins. even put in jail, may be enough to run most tempted to steal it away! A stock clerk saves discarded customer shoplifters away. If someone ignores your receipts and uses them to show that stolen warning, follow through. An empty threat is Embezzlement & pilferage goods were “paid for.” meaningless. Sometimes employees only take a few items, like office supplies. Or they use company equipment, Your best defense is frequent and thorough inventory like cars or copying machines, for personal purposes. control. Limit employees’ access to stock and But embezzlement and pilferage can get a lot bigger. inventory records. Check trash bins and nooks Cashiers may use “short ring and crannies now and then. Conduct periodic, ups”–ringing up a lower price unexpected inventory checks so dishonest employees on the sales register to cover know they run the risk of being caught by surprise. money they’ve taken from the till. Or they may overcharge .
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