Pretty basic list...

1. Install visible security
2. Minimise access
3. Consider anti-theft technology
4. Train staff
5. Keep an accurate inventory
6. Consider civil recovery

Videos

1. Employee theft
2. Positive pay
3. Exclusive credit card use
4. Counterfeit money
5. Shredder
6. Check fraud

Christian, a store employee, was responsible for daily deposits of earnings for the grocery store. Christian is alleged to have added up the totals of the daily deposit then transfer those totals onto a deposit slip. However, police say she would write a lesser amount on the deposit and pocket the difference.

How a company can let this happen is unbelieveable. Employee theft is one of the primary reasons small businesses fail. (1/3 of new businesses fail due to employee theft.) She took advantage of management failing to put in place the most basic of accounting practices and loss prevention techniques.

Here are just a few ways to have avoided this problem:
1. Double verification of deposits. Require two employees to verify receipts and deposits.
2. Reconcile accounts. Another person should reconcile the previous days receipts and confirm deposit amounts.
3. Random audits or a structured internal auditing process.

One interesting charge (and one becoming more and more common) was "Filing a False Tax Return for the State of Delaware".

Lisa A. Christian, 42, of Dagsboro, Delaware, was charged with 17 counts of theft and 1 count of Filing a False Tax Return for the State of Delaware.

One thing available to businesses is filing a 1099 for the money stolen by the employee. They by law have to declare all income, and pays taxes on all income (even illegal). Here is a short videofrom Frank Abagnale (video #2).

Original news story here.

Fergus Falls K-mart Requests Theft Charges Against Second Employee Within Year

The 19-year-old employee may have been caught after another man, Jason Draak, was found in Fargo with a master key to the K-mart in Fergus Falls. Officials believe the 19-year-old sold Draak that key.

Key control is a basic requirement to loss prevention.

Off the top of my head, when I think of key control I think of...
1. Change locks when you change anyone who has access to keys.
2. Multiple "levels" of keys. The master key needs to be in the GM's hands, and other people need keys that only access what they need to access in the course of their job.
3. Keys should be tracked to whom they are issued to...
4. Keys should be locked in a safe or key cabinet when not used.
5. If a set of keys are lost, it should be treated like a 911 emergency.

1. Review of exception reports.
2. Walk the salefloor.
3. Look for unsecured merchandise (no tags, not locked, etc.)
4. Ask employees for receipts on all items (especially consumables).
5. Responding to cash over and short reports every day.

Disclaimer: I don't think the above are the complete answer to controlling shrink (I wish it were that easy!). I do think these 5 items go a long way to reduce the immediate causes of shrink.

Discuss this blog post on LPDiscussions.com.

Using customer service to limit shoplifting:
-Train your staff to be friendly and outgoing. They need to approach every customer on the sales floor. They should never walk past someone without making eye contact and asking if they need assistance.
-Try to greet everyone coming through the door. This let's people know from the time they walk in the door that you are aware of them.
-Train your staff to know the visual indicator of a person likely to shoplift. Then make sure they contact the appropriate person immediately (LP or manager).
-Schedule to your business. Have the right number of people working at the right time. Tight labor budgets mean you need to effectively deploy your staff.

• Parking lot is in good repair.
• Curbs are flush with sidewalks.
• Sidewalks are level and obstruction free.
• Water drains away from sidewalks/parking areas.
• Sidewalks and parking areas are well illuminated.
• Changes in exterior surface levels/elevations are marked.
• Snow and ice removed; surfaces treated (seasonal only).
• Stairsteps have a non-slip surface.
• Stairwells are illuminated, clean, and unobstructed.
• Handrails are present, tight, and in good condition.

Interior

• Public areas are clean, well illuminated, and unobstructed.
• Carpeting is tight, smooth, and free of tears and rips.
• Doormats are flat, slip-resistant, and clean.
• Mats absorb tracked-in moisture.
• Stairwells are illuminated, clean, and unobstructed.
• Handrails are present, tight, and in good condition.
• Changes in interior floor level elevation are marked.
• Emergency lighting is operational.
• Emergency phone numbers clearly are posted.
• Trash is regularly removed.

General

• Make regular surveys of the property.
• Follow up promptly on items needing corrective action.
• Record completed work.
• Train staff to identify, mark, and report potential hazards for prompt follow up.
• Train staff to contact emergency phone numbers and to assist injured parties.

While the goal of any loss-prevention program must be to prevent loss, a well-crafted program will be designed to minimize the risk of collateral litigation, which can arise under both state and federal law.

One line in particular is interesting:

On a broader level, stores should emphasize preventing the loss over making the apprehension. Detentions and recovery quotas should be de-emphasized.

Full article can be found at BlankRome.com.

I think this is very important. One bad stop can result in major problems for a retailer. Each shoplifter stopped is an unknown variable. You don't know what they will do to avoid being detained. (Read news stories about shoplifting stops that went bad at LPDiscussions.com) This doesn't mean you never stop a shoplifter, but you need to take extra care to ensure the safety of your staff and minimize exposure to the business.

That's the limit. We can spend less, we can spend it all, but we can never over spend. I can't use an extra 20 hours this week, and only have 148 hours in some future week. I can't save 10 hours this week, and apply it towards next week.

Each week we have to consciously decide how each of the 168 will be spent. X hours on work. Y hours on family. Z hours on sleep. No matter the number of variables, the total will always be 168.

I proactively schedule all my time. My calendar is filled with blocks of color denoting. Work, drive time, family time, sleep, free time(yeah right!), and everything else are neatly blocked off. Yet I find it too easy to commit to new projects. I'm actively reducing extraneous activities until I spend what's in my budget of 168 hours.

168.