According to the 2016 National Retail Security Survey (NRSS), inventory shrink accounted for 1.38% of retail sales, or $45.2 billion, in 2015. Retailers that participated in the 2016 NRSS say that employee/internal theft amounted to 35.8% of this inventory shrink.
Did you know? On average, if 1 iPhone 7 gets stolen from you, you would need to sell a minimum of 6 to break even!
That’s a lot of effort to make up for one lost item. What do you feel is your most common fraud hole? It’s important to understand where your sources of loss are coming from so you can prevent it in the future. Unfortunately, it’s most often from your own employees and processes.
Here are the top 3 fraud holes in the wireless industry as well as tips and tricks on avoiding them:1. Employee Theft
Refund fraud, the most common type of fraud, occurs when employees refund items that were not actually returned by the customer and pocket the money for themselves.Solution:
3. Time Card Theft
Employees can commit time card theft by exaggerating hours on their time sheets, punching in extra time, or getting their co-worker to punch-in for them (buddy punching). For example, if 5 employees clock 10 extra minutes each day, this adds up to 250 minutes per week. At $10/hour, that’s $40/week over pay and over $2,000 per year for just one location.
Fact! 43% of hourly workers admit to time theft.
A powerful retail management system can help with reporting and implementation of these loss prevention best practices.
For more tips on fraud prevention, check out the Fraud Session at Prepaid Expo and don’t forget to come say ‘hi!’ at the iQmetrix booth (#122)!