They streamline business processes and increase efficiency — but they can also help you prevent theft. Here are some of the ways that point of sale solutions can help prevent employee theft:. By being vigilant, implementing the right measures, and using a point of sale solution, you can prevent employee theft and create a secure environment for your business.

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Skip to content. Table of Contents Types of Employee Theft Detecting Employee Theft Preventing Employee Theft How Your Grocery POS Can Help You Spot And Stop Employee Theft Get Started With a POS System Made For Your Industry.

Types of Employee Theft Detecting Employee Theft Preventing Employee Theft How Your Grocery POS Can Help You Spot And Stop Employee Theft Get Started With a POS System Made For Your Industry. Industry Insights. Types of Employee Theft Employee theft can take many forms, from small to large scale theft.

Here are some of the most common types grocery store owners should be aware of: Cash theft: This is the most common type of employee theft. Employees steal cash from the register, safe, or petty cash box. Product theft: Employees steal products from the store and sell them on the black market, or use them for personal consumption.

Discount abuse: This happens when employees give discounts to their friends or family members without permission. False refunds: Employees process fake refunds and pocket the money. Detecting Employee Theft As a grocery store owner, you need to be vigilant and keep an eye out for any signs of employee theft.

Here are some signs that you should look out for: Cash shortages: If there is a consistent shortage of cash in the register or safe, it may be a sign that someone is stealing.

Excessive voids and refunds: If you notice that there are excessive voids and refunds, it may be a sign that someone is processing false refunds.

Low productivity: If you notice that certain employees are consistently unproductive, it may be a sign that they are stealing time.

Preventing Employee Theft Preventing employee theft requires a number of measures that work together to create a secure environment.

QR codes are similar to a bar scan code but contain more detailed information. When scanned, systems can retrieve information about individual products or payment methods. Fraudsters are overcoming mobile payment challenges. Once they have obtained personal data or credit card information, fraudsters are most likely to open a new credit card account.

They can then use this data for card-not-present purchases, including mobile payment apps. In this situation, the mobile app belongs to the fraudster, but the payment information belongs to someone else, leaving the merchant to pay the price.

With an increase in mobile payments, the lack of protection puts merchants in the precarious position of incurring more chargebacks but having a limited dispute success rate.

Without a clear means of chargeback resolution, merchants have been left to foot the bill, losing revenue and often the inventory that generated the sale. Small businesses are most frequently at risk, operating with already slim margins and competing with larger merchants.

This type of skimming occurs when an employee completes a transaction without ever ringing it into the POS system. The employee takes the cash from the customer and gives the customer merchandise but there is no record of the sale in any system, the customer does not receive a receipt and the inventory is unaccounted for.

Employees may also only ring up a portion of the sale and pocket the remainder of the payment. Declining inventory levels without a corresponding rise in sales may indicate that one or more of your associates is using unrecorded sales to steal cash from the business.

Managers can often catch this type of skimming by comparing daily cash reports, looking for unusual cash shortages. Another way that employees can skim cash is by entering false voids or discounts into transactions and pocketing the difference.

For example, a customer may pay full price for a product, but the employee applies their employee discount to the order and pockets the difference.

Likewise, employees may simply void the transaction after receiving the cash from the customer and pocket the cash for the entire order. This type of skimming can often be detected by a sudden rise in voids or discounts in the POS. Voids for non-cash items. As POS systems become more sophisticated, employees become more creative in manipulating that system.

Above-average auto-gratuities may signify that employee are attempting to defraud the system. A significant number of voids, cancels, and discounts can point to an employee trying to manipulate the system.

For example, cashiers sometimes void large transactions but still place merchandise in shopping bags for customers. Others ring up only portions of an order to let accomplices walk away with stolen merchandise. In certain cases, even supervisors have been caught helping to cover up employee theft schemes for a portion of the stolen profits.

But the cash register should reflect a high percentage of payments. Instead of a void, items can be transferred from one customer bill to another without numerous voids that may cause an alert.

The Wagon Wheel scheme occurs when the customer is given the check at the end of the meal and pulls out cash to complete the transaction. But before closing the transaction, the waiter opens a new check, transfers the item often a beverage from the original check to the new one, and then closes out the tab and pockets the cost of the beverage.

With limited access to secured areas, managers may be one of the few people with access to food and supply inventory.

Fortunately, identifying these schemes is getting easier as restaurants use more automated systems to track inventory, integrate with vendor systems, and send alerts to security teams when a red flag is noted.

Advanced POS and analytics investments help restaurant owners protect their reputation and profits with an early-warning system that identifies potential managerial fraud.

Not entering received food and supplies into inventory creates an open door for managers to walk out the door with items. BOPIS fraud occurs when someone buys a product online through fraudulent means and returns it to the store in order to gain a gift card to sell online.

This scheme has become an increasing threat to businesses as many stores take on an online presence. Likewise, BOPIS fraud involves fraudulently purchasing a product online, often with a stolen credit card, and picking up the goods at a store.

INR fraud occurs when a customer says their item was never received with the intent of getting a refund or getting a new item. As fraud tactics expand, it becomes increasingly difficult to detect who might be the one harming your store. Even long-time customers can have ulterior motives.

These kinds of fraudsters target businesses with promotions for their customers and specialize in new ways to exploit these offers, especially with younger customers it has become common to abuse discount codes by posting them online and creating email addresses in order to receive new customer discounts.

Discount fraud occurs when an employee or customer purposefully and maliciously deceives or misrepresents fact to apply a discount for personal gain. For example, a customer may purposefully mislead a retailer and claim to qualify for an exclusive discount, like a military discount, even though they have never actually served in the military.

Then, the employee pockets the price difference for themselves. These fraudsters can potentially redeem a coupon more than once, copy coupons, create fake coupons, or use the coupon on unrelated products.

Discount abuse occurs when an employee or customer applies a discount inappropriately or in a way that falls outside of policy. Stacking discounts can be another form of discount abuse. These types of out-of-policy discounts stretch beyond the intended scope of use and will quickly erode margins if left unchecked.

Policy and training gaps can often cost retailers more than any thief, fraudster, or dishonest associate. Proper discount policy creation, distribution, implementation, and training can prevent many instances of fraud and abuse as well as operational issues that can cost retailers millions of dollars annually.

In addition to being abused, stacking discount issues ran also be caused by certain policy or technology gaps. For example, when applying multiple types of discounts to the same transaction, the order in which the discounts are applied can have an impact on the overall cost savings.

Weak return policies can be an easy place for fraudsters to strike. Whether it's "friendly fraud" of legitimate buyers requesting a refund but never returning the products or a more considerable effort to defraud a retailer with high-end returns consistently, chargebacks are a growing concern for retailers.

One popular third-party scheme involves purchasing expensive items but returning a cheap knockoff in its place for a full price refund, leaving the retailer on the hook for the merchandise and the payment. Returns of merchandise purchased on fraudulent or stolen tender: Returning goods purchased using falsified or stolen checks, credit cards, or gift cards to purchase 4.

Returns made by Organized Retail Crime ORC groups: Elaborate return schemes orchestrated by teams of professional criminals for profit 5. Reseller abuse happens when a customer buys an item in bulk with the goal of selling it themselves at an inflated price.

With the help of bots, fraudsters have been able to wipe out entire inventories taking away the opportunity for your business to gain any new, legitimate customers. The pandemic has caused an increase in contactless services in all markets.

This has provided an opportunity for self-checkout fraud to rise. A recent study showed that one and five shoppers have stolen from the self-checkout line.

Self-checkout fraud has been underestimated by many retailers and as a result, the self-checkout kiosk has been treated with minimal supervision. While attempting to reduce instances of shoplifting, one retailer discovered that they had sold more carrots than they had ever had in stock.

As the shoplifting debate heats up, one Whole Foods worker tells staff writer Ali Francis why she looks the other way when customers steal A good friend owns a grocery store and she will actually chase them if she sees them. Sometimes they drop the items, other times they get away boking.info › archive › /03 › stealing-from-self-checkout

Cheap grocery steals - 9 Most Popular Items People Steal from Grocery Stores ; 1. Meat. Natalia Lisovskaya/Adobe Black Angus Prime meat steaks ; 2. Makeup. ronstik/Adobe Assorted makeup As the shoplifting debate heats up, one Whole Foods worker tells staff writer Ali Francis why she looks the other way when customers steal A good friend owns a grocery store and she will actually chase them if she sees them. Sometimes they drop the items, other times they get away boking.info › archive › /03 › stealing-from-self-checkout

Retailers also are using technology to help combat theft. For instance, cameras and screens that show you as you scan your items at the self-checkout register are not there for your amusement.

They are there to remind you that someone is watching, Baker said. They can also come equipped with facial recognition, so retailers can track thieves across multiple stores, he said. Supermarkets also are using systems that can determine whether you are scanning the correct item at the self-checkout.

It may give you an opportunity to scan the correct item before alerting a store employee to help, Baker said. Nationwide, retailers are putting some items behind lock and key.

Others are closing stores. For instance, last month Target announced that as of Oct. Mystery revealed: Middletown getting its own Trader Joe's. They just walk out the door," said Foodtown's Scaduto.

Foodtown also has seen some customers steal the store's hand baskets, taking them out of the store and not bringing them back, Scaduto said. Once they are stolen, the baskets are not replaced, he said.

Foodtown has taken measures to deter thieves, Scaduto said. ShopRite has seen more customers who use their reusable bags to shop the store, ShopRite spokesperson Karen O'Shea wrote in a statement to What's Going There. I feel a lot of empathy towards people who are in need of food.

But if I see someone stealing a dozen eggs, I just choose to look the other way. You mentioned the lady with the grocery cart was older. Is there a general age range for people who are shoplifting at your store? Of course there are outliers, but the majority of shoplifters I see are between their lates and earlys.

How do your co-workers feel about shoplifting? We are not supposed to confront the person or anything out of fear of retaliation. I know that the coworkers who are closer to my age have very similar opinions on it.

Have you personally ever shoplifted? I definitely would consider myself privileged. I grew up in an upper middle class home with my parents, and we were always able to do things and buy whatever we needed.

Have your opinions around shoplifting changed, before and after working at Whole Foods? Growing up, I feel like my parents have always taught me that it was wrong to steal and never to do it—and that the people who are doing it are bad people.

I definitely feel like, just through studying sociology at college now and from my personal experiences, my mind has changed from that initial judgment around shoplifting. Cold and flu medicine are always popular, but the winter months send demand soaring. With high demand comes the potential for shoplifting and reselling.

Some grocery stores keep premium cold, flu, and headache medications behind the pharmacy counter to try to prevent as much theft as possible. Pro tip: Instead of stealing, turn to an old-fashioned way of reducing grocery costs : Clipping coupons.

Or try the modern version of coupon clipping by using cash-back apps such as Ibotta. Skin care is big business, so it makes sense that skin care and other personal care items are stolen regularly from grocery stores. This creates a problem on multiple levels.

These products are locked up in grocery stores for a reason. People will happily steal family planning products ranging from condoms to lubricants and gel contraceptives.

Not only do people steal them for personal needs, but they are often resold to others looking for a discount. Grocery stores try to strike a balance between providing shoppers with access to goods and preventing theft.

So, the next time you go to the store and see something locked up, be patient with the staff. Keep calm, carry on, and look for bargains that can reduce the rising cost of groceries. More from FinanceBuzz:. You will receive emails from FinanceBuzz.

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Cheap grocery steals - 9 Most Popular Items People Steal from Grocery Stores ; 1. Meat. Natalia Lisovskaya/Adobe Black Angus Prime meat steaks ; 2. Makeup. ronstik/Adobe Assorted makeup As the shoplifting debate heats up, one Whole Foods worker tells staff writer Ali Francis why she looks the other way when customers steal A good friend owns a grocery store and she will actually chase them if she sees them. Sometimes they drop the items, other times they get away boking.info › archive › /03 › stealing-from-self-checkout

Toronto Canadian Tire customer Simpson said stores grappling with self-checkout theft should consider pulling their machines. But Beck suggests retailers will keep offering self-checkout, as long as the money they save from reduced labour costs is higher than what they lose due to theft and scanning mistakes.

Receipt checks may also be here to stay. Despite the backlash, Canadian Tire, Loblaw and Walmart gave no indication that they're reconsidering the practice. According to legal experts , retailers can't enforce receipt checks unless they witnessed a shopper stealing, or their customers have signed up for a store membership, such as at Costco, where they agreed to the checks.

Based in Toronto, Sophia Harris covers consumer and business for CBC News web, radio and TV. She previously worked as a CBC videojournalist in the Maritimes where she won an Atlantic Journalism Award for her work. Contact: sophia. harris cbc. Senior business correspondent Peter Armstrong untangles what it means for you, in your inbox Monday mornings.

The next issue of the Mind your Business will soon be in your inbox. Discover all CBC newsletters in the Subscription Centre. Self-checkout theft causing problems for retailers — and shoppers who despise receipt checks CBC News Loaded. Business Self-checkout theft causing problems for retailers — and shoppers who despise receipt checks Some shoppers feel they're being unfairly targeted for receipt checks due to theft at self-checkouts.

A criminologist who studies the topic says this type of theft is growing as retailers add more self-checkouts and shoppers feel emboldened to steal. Sophia Harris · CBC News · Posted: Jul 10, AM EDT Last Updated: July 16, Self-checkout theft has more stores asking for receipts.

Duration Social Sharing. Loblaw customers protest receipt-check policy introduced at select stores. More Shoppers Drug Mart customers complain they were pushed to use self-checkout.

WATCH Loblaw customers protest receipt check signs in stores:. Loblaw customers angry about receipt checks. Your rights explained.

ABOUT THE AUTHOR. Sophia Harris Business reporter. CBC's Journalistic Standards and Practices About CBC News. Related Stories Loblaw customers protest receipt-check policy introduced at select stores More Shoppers Drug Mart customers complain they were pushed to use self-checkout 'Treated as a criminal': Walmart receipt and bag checks anger customers.

Email address:. What kinds of foods are stolen most often? So, that one instance where it was the older woman with the shopping cart, she pretty much got her groceries for two weeks.

Those single-serve yogurts. Really, anything. In the area I live in, we have a really underserved community nearby. I feel a lot of empathy towards people who are in need of food. But if I see someone stealing a dozen eggs, I just choose to look the other way.

You mentioned the lady with the grocery cart was older. Is there a general age range for people who are shoplifting at your store? Of course there are outliers, but the majority of shoplifters I see are between their lates and earlys.

How do your co-workers feel about shoplifting? We are not supposed to confront the person or anything out of fear of retaliation.

I know that the coworkers who are closer to my age have very similar opinions on it. Have you personally ever shoplifted? I definitely would consider myself privileged. I grew up in an upper middle class home with my parents, and we were always able to do things and buy whatever we needed.

Have your opinions around shoplifting changed, before and after working at Whole Foods? Growing up, I feel like my parents have always taught me that it was wrong to steal and never to do it—and that the people who are doing it are bad people. I definitely feel like, just through studying sociology at college now and from my personal experiences, my mind has changed from that initial judgment around shoplifting.

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