Tackling Internal Fraud: How Technology Protects Your Bottom Line
The Retail Risk London and the UK Retail Fraud Survey 2016 state that "employee theft is considered to be the single biggest cause of crime; 68 per cent of retailers cite it as their top area of loss."
For any small business owner, the value of staff honesty cannot be underestimated. This attribute is even more important in retail and hospitality environments, where workers are constantly operating tills and handling cash. While no one wants to believe their workers are behaving dishonestly, there is often an underlying concern. Every owner and manager needs to remain confident that all takings stay firmly in the business.
Using Data to Identify Patterns
Modern point-of-sale technology arms hospitality providers and retailers with information they may not have otherwise had. Managers are now able to:
- Track individual staff performance.
- Monitor the frequency and timing of cash drawer openings by specific employees.
- Identify emerging patterns that deviate from standard operating procedures.
A Real-World Case Study
It was this specific technology that enabled a new client to uncover fraud within their business. By analyzing till data, they identified two members of staff conducting "pretend sales" and pocketing the cash. By cross-referencing till opening timestamps with CCTV footage, they found the final piece of the puzzle. Their investment in technology not only eradicated the current fraud but created a deterrent to prevent it from happening again.
The "Perfect" Report: A Red Flag?
End-of-day declarations let you know exactly what is in the drawer, but the data requires careful interpretation. Interestingly, if a report is regularly "spot on" to the penny, it should actually ring alarm bells. In a busy trading environment, you would almost always expect a drawer to be out by a few pence due to human error. Conversely, a significantly higher sum in the till than reported should also arouse suspicion.
Transparency, Not "Big Brother"
No one wants to act like "Big Brother," but at the end of the day, an owner or manager deserves complete transparency regarding how their business is being handled. Utilizing these tools is a management prerogative that helps businesses stay one step ahead and remain profitable.
