Employee TheftEmployee Theft

Jeff CadyJeff Cady

Tim AllenTim Allen

Sam MaurmannSam Maurmann

Where Inventory Shrinkage Where Inventory Shrinkage HappensHappens

Employee theft (44.5%)Employee theft (44.5%) Shoplifting (32.7%)Shoplifting (32.7%) Administrative error (17.5%)Administrative error (17.5%) Vendor fraud (5.1%)Vendor fraud (5.1%)

Employee TheftEmployee Theft

University of Florida studyUniversity of Florida study Up 2% from the previous yearUp 2% from the previous year Accounts for more than 44% of all retail Accounts for more than 44% of all retail

losses in the USlosses in the US Shortage of employees leads to Shortage of employees leads to

dishonest employeesdishonest employees

Employee Theft Employee Theft ContinuedContinued

Average annual loss per dishonest Average annual loss per dishonest employee= $1,023employee= $1,023

Dishonest employees work for the Dishonest employees work for the employer on an average of nine employer on an average of nine monthsmonths

Average value of stolen Average value of stolen merchandise= $128merchandise= $128

Identifying Dishonest Identifying Dishonest EmployeesEmployees

Nervous employeeNervous employee Employee Employee

purchasespurchases Merchandise Merchandise

around registeraround register Shoplifter catchesShoplifter catches Emptying of trashEmptying of trash

Auto tripsAuto trips LotteryLottery Lay-a-waysLay-a-ways Catalog storesCatalog stores Angry employeeAngry employee

Preventing TheftPreventing Theft

Background checksBackground checks New-hiresNew-hires Temporary workersTemporary workers Thieves know who Thieves know who

thieves arethieves are Cash incentives for Cash incentives for

reporting internal reporting internal thefttheft

Employee shoppingEmployee shopping Receipt checkersReceipt checkers

Merchandise Merchandise around registeraround register

Employee exitsEmployee exits Employee bagsEmployee bags Employee lockersEmployee lockers Pawn shops, yard Pawn shops, yard

sales, flea market, sales, flea market, newspaper newspaper classified adsclassified ads

VideoVideo

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SourcesSources

http://retailindustry.about.comhttp://retailindustry.about.com www.lotteryretailer.comwww.lotteryretailer.com