Have you caught an employee stealing? Chances are, they were involved in one of these scams.
By Garett Seivold
What is the latest employee theft scam putting a dent in the profits of your retail organization? Think about any recent changes. Maybe you’ve implemented a new cash management protocol, or a new loyalty program, or a new tabletop payment system. Regardless of what your stores have recently done to boost revenue, it’s likely that some employees are figuring out a way to personally enrich themselves with it.
The hottest employee theft schemes are, by nature, very personal. They are specific to each retailer depending on its business and existing security measures, such as whether or not it’s using inventory management software, as well as a host of other unique factors. That’s why a universal best practice for countering employee theft schemes is to identify, track, and analyze incidents of internal theft across the organization. Implementing targeted theft-deterrent strategies depends on consistent recordkeeping, organization, and pattern recognition. A data-driven incident management process is the only way to keep pace with an extremely adaptable foe.
That is all to say that the employee theft scams listed here may not currently be a significant cause of loss in your retail organization. However, when we ask retailers about the ways in which employees are trying to steal from them right now, these five methods keep coming up… Read the full article.
Servers use these common scams and tactics to engage in restaurant theft.
By Nick Arenas
Restaurant employees can hurt profitability in a variety of different ways. Rarely is restaurant theft as simple as taking money from the cash register. Given that restaurants operate on incredibly narrow margins, it is important to identify and reduce the opportunities for employee theft. Here are five common ways in which dishonest employees steal from restaurant owners and customers… Read the full article.
Preventing employee theft of high-value assets starts with these best-practice security measures.
By Garett Seivold
The harm from employee theft grows as the value of property increases. For example, the FBI says a vice president of product development at Tiffany & Co. systematically stole $1.3 million worth of jewelry from the company, checking out jewelry to show to potential buyers or for other marketing purposes and never returning the items.
That case pales in comparison with a theft that came to light in 2009. A vault manager at Jacmel Jewelry in Queens, NY, stole $12 million in gold over six years—500 pounds worth, one piece at a time—by hiding it in the lining of her pocketbook.
To the extent possible, it’s good to keep high-value assets and critical material separate from employees, but that’s not always practical… Read the full article.
WZ / IAI Interviewing Tip of the Week
By Wicklander-Zulawski and Associates
This week’s International Association of Interviewers interview and interrogation training tip provided by Wicklander-Zulawski, has Dave Thompson, CFI discussing identifying the appropriate rationalization during the interview.
When we rationalize with a subject, what we do is allow the subject to save face. We show understanding by realizing that sometimes good people make bad decisions because of outside pressures. But there’s a lot of different pressures that people can have in their life. It could be a financial pressure. It could be peer pressure. It could be that they made an impulsive decision when the opportunity was placed in front of them. Or maybe it’s because they’re a disgruntled employee.
When we allow the subject to transfer guilt to one of these areas, it’s important we do our research to make sure that we’re using the right rationalization. For example, if we continue to talk about a financial rationalization with a subject who has plenty of money and no financial needs, that subject is going to realize that we didn’t do a thorough investigation. That rationalization won’t work, and in turn it’s going to encourage denials from the subject…. Read the full article and watch the video.
To reduce loss from theft, retailers need employees to be more honest. Could Target’s minimum wage bump help?
By Garett Seivold
Employee theft is a source of loss simply too costly to ignore, which is why loss prevention practitioners are always on the lookout for novel ways to prevent it. But what if the best theft-prevention tool wasn’t a security measure at all? What if you just paid your store associates a little more money? Would that make a difference? To what extent can wages act as a loss prevention tool?
On Sept. 25, Target announced its plan to boost staff pay. “This October, we’re raising our minimum hourly wage to $11—and we plan to increase the minimum hourly wage for all team members over the next few years to reach $15 by the end of 2020,” the company said in an announcement. According to the consensus of research, Target may experience a range of benefits for its investment, including an increase in worker productivity and decline in turnover and sick days.
But what does social science research say about theft? Might Target’s minimum wage shift lead to less internal theft from a more loyal, content workforce? A study from a few years ago may provide a clue… Read the full article.