By Scott Kreisberg
CEO / Founder, One Step Retail Solutions
Every retailer has a unique set of security challenges and, in
the retail world, your security challenges never end.
More retailers are realizing that using perimeter and
anti-virus technologies alone are not enough. As someone once
said, it's like locking your doors but leaving your windows open.
Now retailers must take a lot more security measures.
Some vital strategies retailers need to take for preventative
measures against retail loss include:
- Security for your network
- Security against theft
- Protection of data
- Prevention of administrative errors
In today's competitive environment, a retailer's shrinkage
performance can mean the difference between a good year and one
that fails to meet expectations.
Recording what occurs in your store is also very important,
whether it be before, during or after an event. Digital video
surveillance and POS monitoring can deter common forms of
employee theft, register theft and fraud.
Going on for some time now is "sweet-hearting," as it's known
to retailers, which is when the cashier lets friends and family
walk out with more than they paid for. It is quite common in the
retail sector.
To prevent this, security software is necessary which uses a
motion analysis algorithm designed to spot each instance when an
employee may have bypassed the checkout price scanner with a
grocery item, or passed a barcode-side-up over the infrared lens.
It then checks with the store's point-of-sale system and
cross-references time stamps to confirm the missed scan.
This is from U.S. SBA on cashier surveillance:
The cashier's post is particularly vulnerable to theft. The
experienced cash handler with larceny on his or her mind can
rob a store blind in a hundred and one ways.
Case in Point: A store owner's sales were high, but profits
were dragging. The cause was traced to a cashier who rang up
only some of the items bought by "customers." In most cases,
the cashier didn't ring "put-downs" at all. (A "put-down" is
the right amount of cash which a customer leaves on the counter
then leaves without waiting for a receipt.)
- Keep a sharp eye open for signals, nods, winks, and so on
between cashiers and customers.
- Pay special attention to cashiers when they are
surrounded by clusters of people.
- Be alert to the use of over-ring slips to cover up
shortages.
- Watch for items bypassed when ringing up sales.
- Check personal checks to make sure they are not being
used to cover up shortages.
- Use a professional shopper to check for violations of
cash register and related procedures.
From camera surveillance systems, people-counting devices to
point-of-sale terminals and video surveillance systems, you can
easily collect store data and transmit it over the store's IT
network so that it can be analyzed and delivered in graphical,
easy-to-read exception reports.
Today security solutions go beyond just loss prevention and
can provide the tools for improved operational efficiencies.
Video surveillance, remote viewing, video analytics, intrusion
and fire monitoring, to more robust solutions encompassing
point-of-sale data mining and integrated technologies embrace the
operational measures a retailer should take.
Protecting information
Keeping data safe is another big challenge retailers face. It
is vital for a retailer to upgrade their security practices to
prevent big data breaches. Hackers create havoc, like they did on
the Heartland Payment Systems' credit card processing system
reported in January this year.
Achieving robust security, reliability and efficiency for
today's networks calls for a unified approach that protects from
all threats, regardless of where they originate, within both the
network and application layer.
Prevent malicious attacks, firewall-evasive applications, and
online information break through protection provided by outdated
inspection firewalls. Securing your networks today demands a new
approach, solutions that integrate without compromising
performance.
Preventing retail theft
As a retailer, you know the effect shoplifting has on your
inventory and profitability. Entire retail chains have gone out
of business due to their inability to control losses from
theft.
In today's retail technology, security is the main concern.
Reducing shrinkage is a profit growth strategy for retailers. It
requires utmost attention and care beyond retail discounts and
promotional tactics.
The good news is that the National Retail Security Survey
(NRSS) preliminary results showed the lowest rate of loss in the
17-year history of the survey and a continued six-year downward
trend. One likely reason for the decrease in retail theft is the
long-term investment by retailers in anti-shoplifting and
anti-theft technologies and training.
The study shows there is good evidence that anti-theft
technologies, properly implemented, are having a positive effect
on reducing crime in the retail environment.
To start, you'll need to remove the temptation to steal. There
is no substitute for well-implemented preventive measures.
Wal-Mart, for example, discovered that having greeters, those
friendly employees who meet you at the entrance, reduced
shoplifting by as much as 35%. So not only is greeting and making
eye contact with people who come in good business, it also deters
shoplifting.
Here are other ways to deter shoplifting:
- Design your store to reduce shoplifting. The easiest way
for retailers to discourage theft in a store is by taking away
opportunities to steal. A well-designed store layout will not
eliminate all shoplifting but will help reduce it.
- Place easy-to-shoplift items close to checkout
counter.
- Make your presence known throughout the store. Walk around
the store periodically and greet customers in a friendly
manner.
- Control pricing procedures. Price items by machine or
rubber stamp not by handwriting. Permit only authorized
employees to set prices and mark merchandise
- Implement refund and returns policy to deter dishonest
employees from marking down cost. Match items to the return
vouchers and then return the merchandise to stock as quickly as
possible.
- Apply anti-theft tags to consumer goods at the point of
manufacture, or source tagging, which is gaining further
popularity as a loss-prevention method.
- CCTV (Closed Circuit TV) filming all areas of the store is
the most successful way to prevent shoplifting. Installation of
physical obstacles such as alarm at the store exits, and
closing the back exit of the shop would also prove
beneficial.
Other tips from U.S. SBA on shoplifting:
- Keep tight checks and controls on washrooms and fitting
room.
- Keep unused checkout aisles closed. Schedule working hours
to assure adequate personnel coverage during peak periods.
- Keep doors that are used infrequently locked.
- Post anti-shoplifting signs.
- Display small inexpensive items behind the checkout
counters.
- Keep small expensive items in locked display cabinets.
- Use plainclothes patrols in larger stores.
- Make sure employees know what to do when they spot a
shoplifter.
- Turn over apprehended shoplifters to the police.
- During busy periods, station a uniformed guard at your
exit.
Preventing employee theft
The biggest threat facing store owners is employee theft,
which accounts for nearly half of inventory shrinkage--more than
shoplifters, more than administrative error and more than vendor
fraud.
Internal shrinkage is caused by the actions of the employees
of the store, such as pilfering merchandise, cash, provisions
etc. According to a study, employee theft and embezzlement of
accounts cause almost half of the total retail shrinkage.
Cashier-caused shrinkage occurs in ways of wrong recording of
transactions, forging receipts, misuse of the register or
computer etc.
CCTV monitoring, good store surveillance and maintaining good
relations with employees will help to restrict this.
Tips from U.S. SBA on preventing employee theft:
The best profit safeguard you can have in a store is the
employee whose integrity is beyond question. The trouble is
that too many retailers take integrity for granted. "Innocent
until proven guilty" is a meaningful and deep-rooted American
principle. But it doesn't preclude the need to install
effective theft deterrents and to track down dishonesty.
Case after case points to this need. All too often, the
biggest crook turns out to be the most trusted employee, the
hard worker who has been with the company "umpteen" years, the
one about whom you are most likely to exclaim, "Not Charley!
Anyone but Charley!"
The problem is that Charley, with his long experience, knows
store procedures backwards. Because Charley is so knowledgeable
and well trusted, he is in a better position to steal than
anyone else. And all it takes to get started is one weak
moment, one time of need, one dishonest friend, or one
temptation that is too hard to resist.
An example is a trusted store manager who was on the payroll
for years and had often been a guest in the owner's home.
Undercover investigation to determine the reason for inventory
shortages revealed the following: The store manager had altered
reports to indicate that the store received more goods than
were actually delivered. He was in collusion with a vendor who
split the extra payments with him. He also stole merchandise
and carried it away from the store in his automobile on
Sundays.
The store with the greatest proportion of honest employees
suffers the least from theft loss. The trick is to take every
precaution to ensure that the people you hire are honest to
begin with. Then, take pains to maintain the kind of store
climate that will encourage them to stay honest.
Upgrading the level of retail personnel is largely a matter
of careful personnel screening and selection, including careful
reference checks, credit checks, psychological tests, polygraph
lie-detector tests, and personal character examinations. Doing
these things and sticking to the basic tenets of employee
motivation can help you to generate a store atmosphere that
discourages employee theft.
In addition, owner-managers should use a continuing program
of investigation and training. They should train employees on
ways to eliminate stock shortage and shrinkage. One small
retailer, for example, trains employees to record items, such
as floor cleaner, which they take out of stock for use in the
store: "Otherwise, it's an inventory loss even though it's a
legitimate store expense." Above all, never stop letting your
people know that you are always aware and that you always
care.
Retail Security Products
Some time ago I wrote an article, "Video Security Systems" that talked about reducing theft using
video security technology. It's been around a long time and is
even more sophisticated since I wrote the article. It has grown
in intelligence and features.
Now retail security products are inclusive of a number of
things that amount to the whole scenario of a safe and secure
ambience.
Loss prevention software allows retailers to analyze
transactions and data, giving them a real picture of what is
happening in their overall operations at the store level and even
at the employee or sales associate level.
It is better for a retail store to buy the whole retail
security equipment from one source because tinkering with them
from different providers may end up in an utter mess. This is why
we carry all these security products in our product lines, in
addition to the POS software and hardware we provide.
Here are some retail security products I have reviewed,
tested, and recommend:
SonicWALL is an advanced network security system
designed to deliver the utmost security. SonicWall total security
solution integrates wireless management with best-in-class
Unified Threat Management (UTM) security and application firewall
to provide application based policy control. SonicWALL's line of
security appliances incorporates multiple security technologies
in a single platform to provide high-speed threat protection,
reliable communications, low TCO and flexible connectivity
options.
Quadrox Security System consists of Quadrox WebCCTV
network video surveillance system integrated with POS software
and Quadrox GuardNVR software to give you the defense you need to
run your retail business more securely. It captures POS
transaction records, supporting input from multiple POS terminals
simultaneously.
At One Step Retail Solutions, we make all these technologies
and more available.
