Loss Prevention – Read More…
For many organisations the method of detecting and preventing fraud is an arduous process. It is often a tedious and time-consuming task for the Loss Prevention Manager (LPM) just to get the facts about a case, let alone to be able to detect suspicious activities or ideally to be automatically alerted when anomalies occur. Typically for many LPM’s the process is largely manual and abundantly mundane, in the first instance the method of alert is either via;
- a tip off from someone about something suspicious they think might be happening or it could be
- a customer ringing up to complain about an incident
- a stock take variance
- a store audit (cyclic)
- a call to a Fraud Hotline
Once an LPM is made aware of potential fraud, the next step in the process for many is to go straight to CCTV footage and sift through hours of tape or undertake the more tedious task of manually working through volumes of sales transactions to identify suspicious dealings. However as often happens, when anomalous transactions are identified it is difficult to ascertain the extent of suspicion without being able to compare this information to other stores so as to be able to confirm suspicions.
To address the inefficiencies and the constraints associated with fraud detection, Bistech has developed a repeatable and proven Loss Prevention system that will SAVE your business TIME & MONEY and help you manage RISK around this process.
The following provides an example of key scenarios that are included in the deployment of Bistech’s Loss Prevention System. Please note that the solution is fully customisable and can incorporate additional tests and scenarios specific to each organisations requirements;
The Employee Impersonation scenario is designed to highlight where employees that are not working are either performing transactions or approving discounts or refunds.
Any transaction performed by an employee who according to their timesheet is not logged on.
There is no threshold for this report. All employee impersonation transactions are considered suspicious and reported on.
MULTIPLE IDENTICAL TRANSACTIONS
The Multiple Identical Transactions scenario identifies where multiple identical transactions are occurring on a single docket. This can indicate that an employee is re-using the same docket and cancelling items.
The key criteria for this scenario is where a total quantity of any PLU is above the threshold quantity. This scenario excludes training sales but includes voided items.
The threshold for this scenario is the number of identical transactions on the docket.
TRANSACTIONS UNDER $10
The Transactions under $10 scenario identifies employees that are excessively processing low value sales.
The key criterion for this scenario is the total amount for the sale. This scenario excludes training and voided sales.
The threshold for this scenario is the total dollar value of the transaction. This will be set to $10 in the first instance but can be altered as required.
The Refunds scenario is designed to identify employees providing an irregular number of refunds.
Refunds are identified based on the Sale Type of a transaction.
The threshold for this report is the total refund amount as a percentage of the total sales amount for the employee. Refunds occurring at various times are also of importance (e.g. refunds 1 hour after open or 1 hour before close).
The Training mode scenario is designed to identify situations where a register has been placed into training mode at an inappropriate time.
This scenario will look at all training sales being performed.
The Threshold for this scenario is the periods of the day where Training transactions are being performed. All training transactions performed within these period ranges will be considered suspicious.
The Irregular cash-outs scenario identifies any potential cash-out that is not considered to be a “round” figure (e.g. $20.55 instead of $20).
The key criteria are to identify EFT withdrawals that are not rounded to the nearest dollar, where the total for the docket is also not a round number. For example, it is not considered to be unusual for somebody to spend $25.50 and then EFT $14.50 to make the total transaction a round number. These transactions are not considered suspicious. This scenario excludes voided or training transactions.
There is no threshold for this report. All irregular cash-outs will be considered suspicious and are reported.
The Deletions scenario identifies cashiers that are performing excessive deletions including Deletions to zero, Deletions before total, Deletions after total and Deletions of specific high-end product types. Deletion information is reported at both the Sale level and at the item level. There are two thresholds for this scenario: Deletions to zero and Deletion of high-end product types. Additionally, there is a threshold for this scenario looking at the total deletion amount as a percentage of the total sales amount for the employee.
The Discount scenario is designed to identify any potential cashiers that are providing high levels of various discounts including Staff discounts, Seniors discounts, Specific percentage discounts and Free/promo items. The key criteria is to identify the total number of discounts as a percentage of total sales for a cashier/store. When getting a total number of discounts, a count of each discount is taken. This scenario excludes any voided or training sales. The threshold for this scenario is the total discount amount as a percentage of the total sales amount for the employee.
The Cash shortage scenario is designed to identify any potential occurrences where cashiers are consistently coming up short when balancing their register. The key criteria are to identify where cash shortage for a shift is greater than a prescribed threshold. The threshold for this report is the cash shortage amount for the shift. Certain low levels of shortages are considered to be normal and these are not flagged as suspicious.