Theft by employees, of both stock and cash, is now among retailers’ top three areas of concern, according to the US Retail Fraud Survey 2015.
The Survey reveals that alongside online fraud and return fraud, internal theft is a major area of concern for retailers and the biggest area of store loss. Concern about employee theft of stock has risen from 18% in 2012 to 38% in 2015. While recognising that cash theft is a problem, the study reveals that it has only increased from 24% to 26% this year and comes in second, administrative third with 23% and shoplifting fourth with 11%.
Published by Retail Knowledge and sponsored by intelligent cash handling experts Volumatic, the US Retail Fraud Survey 2015, now in its third year, is the most extensive report into the systems, processes and strategies of the US’s top retailers.
Paul Bessant, Founder of Retail Knowledge who commissioned the Survey, said: “North Americans are more up front about insider fraud than their retail colleagues in the UK.” Its UK sister publication noted that internal loss in the UK ‘may be under reported’ and comes in second as a concern, after outsider shoplifting.
James Harris, Commercial Director of Volumatic, Survey sponsor, added: “Cash and merchandise losses caused by internal fraud are only part of the story. When you factor in the costs and time spent in investigations and disciplinary procedures, not to mention the damage done to internal morale and external reputation – the cost of insider fraud can be up to three times as much as the original losses incurred.”
