Who’s Really Stealing
Your Stuff?
By
Kevin G. Smith, CPP
Insight Security &
Investigations, LLC
For years the conventional
wisdom has been that your employees are stealing you blind. What if I tell you
that they are responsible for some of your merchandise losses and most of your
cash losses but not a majority? Does it really seem that impossible that
shoplifters and professional thieves are stealing from you?
Most experts in the Loss
Prevention and Security industry believe that anywhere from 70% to 90% of a
retailer’s losses are caused by their employees. I don’t agree that this is
always true. Do I think that employees steal? ABSOLUTELY! I have caught and
prosecuted a multitude of them during my career and am fully aware that they
are responsible for many of the losses that occur in your stores. What I am
suggesting though is that managers and owners need to look at external reasons
for their losses in addition to
their employees.
One of the fastest growing
crimes in retail over the last few years is Organized Retail Crime (ORC). In
essence, this crime is committed by organized groups of professional thieves
who steal large quantities of merchandise such as cigarettes, health and beauty
aids, etc. This stolen merchandise is then sold to a distributor who will then repackage/resell
it to consumers at independent retailers, swap meets, and on the internet at
websites such as E-Bay. It is estimated that losses from ORC exceeds $30
billion a year. In 2006 federal legislation was passed making Organized Retail
Theft a federal crime. Due to the large amount of losses that retailers are
experiencing, companies such as Wal-Mart, Target, and others have implemented
ORC departments to combat this problem. These departments have helped to
recover millions of dollars worth of merchandise.
What can you do to protect
your merchandise? The first thing is to think PREVENTION. If
you can prevent it from occurring, you will not only keep your assets from
being stolen, you will save the time and expense of having to report the theft
to the police, your insurance company, potential associated legal costs and
having to replace the stolen merchandise which could affect your sales.
A simple procedure and the
most important priority must be customer service. In some environments this is
not always easy. Limited staff and large customer counts can make this
difficult for some stores. Difficult, but not impossible. The average
shoplifter steals because of opportunity. They see that your staff is busy and
they feel that they won’t get caught and seize the moment. If you can acknowledge every customer in some
way, you will prevent a majority of external thefts in your store. Not only
will you see a decrease in losses, you will possibly gain an increase in your
sales. The honest customers will feel welcome and comfortable. The dishonest
ones will be discouraged and be prevented from feeling that will be able to
steal without being caught.
In essence, as a general rule
some of your employees do steal and will continue to be the biggest
contributors to theft, but there are other factors and reasons why you
experience loss. Look at all of the areas within your store or business and
make sure that you consult a security professional to help you reduce your
vulnerability to theft, thereby helping to increase your profits.
How to Save Money By
Improving Your Business Security
By
Kevin G. Smith, CPP
Insight Security & Investigations, LLC
- Think prevention, not reaction. It’s always cheaper
and easier to prevent an incident from happening than it is to deal with
something that has already occurred.
- Train and inform your employees. They are your first
line of defense. The more informed they are of their role and
responsibilities regarding security, the better they will be at preventing
something from happening and also in reacting to events if/when they
happen.
- Use anti-virus software on all of your computers and
keep it updated.
- Have an emergency plan in place and update it
regularly. Things to consider are what will you do if you or your business
experiences an emergency such as fire, earthquake, tornado or a hurricane?
How will your employees, clients, and vendors be notified? What type of
communications will take place? How often will you communicate with them? Do
you have the information and resources in place to deal with any emergency
that may arise? Make sure it is written and everyone in your organization
has an updated copy. As the saying goes, if you fail to plan, you plan to
fail.
- Take advantage of technology such as Closed Circuit
TV systems, locks, safes, alarms, etc. These provide a huge amount of
prevention and can be very cost-effective.
- Document everything. In today’s business environment,
anything and everything can be grounds for litigation. The more you have
documented could possible save you and your company a lot of money. There
may be times when it seems inconsequential and monotonous, but the reality
is that is it necessary. Always consult your attorney for specific items
to document and their retention period.
- When in doubt always get professional help through
the use of a security consultant. These are professionals who have
experience and are usually certified in their expertise. They can save you
not only money in the long term, but more importantly, they will bring you
peace of mind when it comes to your company’s security.
This video is not related to any Loss Prevention or Security issue but is a wonderful story that needs to be shared. Please enjoy and feel free to pass it on!
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