Your say
MASTER THE ETIQUETTE OF many challenges facing retailers when they arrive and leave and
GREAT LOSS PREVENTION none more so than in retail identify who is managing each
All good retailers practice environments which are largely transaction.
professional etiquette throughout cash-based. This is a key area If tills are connected to the
their stores, and few are as where effective use of the EPoS internet, retailers should make
important as at the point of sale can help retailers to reduce the sure that they are secure and
(POS). As this is the place where opportunity for theft. locked down so that staff cannot
the sale is made or lost, it’s It’s important that EPoS systems access the internet through this
essential that the environment is prevents staff trading with the till connection. The tills need to be
fine-tuned to service the customer open, instead only allowing a sale connected to transmit sales data,
effectively and ensure that money to be rung up when the drawer is but make sure that this is all that
can be taken securely. This closed. Retailer systems should also they do. Don’t forget that this is a
etiquette involves the electronic be capable of tracking till and is the most important piece
POS equipment (EPoS) as well as adjustments such as price overrides of equipment in the store. It takes
the actual physical environment. and other opportunities for staff the money and this is the reason
To service customers effectively, to commit fraud. Retailers should that you are there – so make it
it’s important that retailers learn set up their own systems to secure.
to utilise EPoS to allow staff and recognise these transactions and
the brand to communicate make them stand out. Such Richard Dorf
effectively with customers. systems can also offer the Managing Director
Employee fraud is one of the opportunity to track staff and see PXtech
WHY DO STAFF STEAL? hard-earned profits elsewhere. are generally dealing with stupid
Retailers are well aware of the Understanding why staff steal is criminals; unfortunately this is a
issues associated with shrinkage. It essential to tackling the problem, complete myth. The ones that do
is not a 21st century problem, but you also have to be able to the real damage are often very
store owners have been involved adapt quickly. Fraudsters are smart, know exactly how the
in an ongoing battle for many always thinking of alternative systems work and conceal their
years, installing sophisticated measures, constantly learning new activities in the complex world
surveillance, tagging and alarm ways to beat the system and so that is modern retail. A more
equipment to try and defeat before you know it you're back to worrying trend on the increase is
thieves. However, one area of square one again. that retail is becoming the focus
shrink that has been on the rise in The retail environment has of very sophisticated organised
recent years, despite efforts to become hugely complicated over criminal gangs who are
minimise the effects, is theft from the years and the opportunities infiltrating the retail sector by
employees. This has become one and temptations to commit theft working in unsuspecting stores,
of the largest threats to the retail and fraud are everywhere. Most obtaining security information
industry, costing Europe's stores retailers know that around 10-20 and collaborating with outside
almost £6.7 billion and accounting per cent of staff will never steal thieves.
for around 30.7 per cent of all and 10-20 percent will always Of course, there is a certain
stock losses in 2008. steal, leaving 60-80 per cent of proportion of this loss that is
With the continued strain of staff who may, at some point, try unavoidable, but minimising the
recession, retailers are and steal from their employer. effect of internal losses will be key
undoubtedly beginning to take Whether they actually go through to success in this turbulent time.
notice of the impact of internal with it is determined by a number This year is undoubtedly going to
fraud. At a time when we of factors including their morale, be a challenging one for the retail
regularly hear stories about commitment to the job and the sector. It has always been
retailers hitting turbulent times, it perceived risk of getting caught. important for any business to
makes worrying reading that What’s more, it is a people protect its profits, but as the
when combined with the losses problem, making it highly nation begins to feel the full force
caused by employee error and unpredictable, dynamic and of the recession it has become
process weakness/abuse, the continually evolving. even more crucial.
impact of internal loss can be Most LP departments are Those who pay attention to the
considerable; sometimes generally at full stretch and even less obvious areas that contribute
representing up to three per cent though there are huge volumes of to the bottom line, such as margin
of turnover and more importantly data available actionable erosion, will be best placed for
up to 25 per cent of profits. information is hard to distil. All when the economy does recover.
However, internal loss and fraud this combined makes it inevitable
LETTERS
by their very nature are tough that there will be margin erosion
nuts to crack. Just as you get to either during the supply chain, on
the root of one problem other the shop floor, at point of sale or Khuram Kirmani
potentially more damaging in the back office. CEO
threats are silently eroding your There is also a belief that you IDM Software
36 • RETAIL FRAUD
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42