Corporate fraud schemes can fall into all types of categories. With hundreds of different fraud schemes out there it’s hard to determine the exact cost to companies across the nation. It is believed that these corporate fraud schemes cost insurance business billions of dollars every year. Believe it or not there are two specific types of corporate fraud involving insurance companies that all these schemes fit into…very simply hard versus Soft fraud.
Hard corporate fraud schemes are meticulously planned out. As an example of a “hard” fraud scheme, setting an arson fire to collect insurance money on a building. Most organized crime rings have some sort of hard fraud scheme game they are into. It can be setting up auto accidents or even as intricate as an auto theft ring.
Soft corporate fraud is much more common in the scheme of the general world population. Soft fraud is committed when an individual has an “opportunity” to exploit what might actually be a legitimate insurance claim.
Let’s look at an example of soft fraud. An employee falls at work, shatters their knee and has lots of medical claims to deal with. Some of these medical claims revolve around physical therapy. Well, if the employee thinks about it, they can drag out physical therapy for months, collecting monies for treatments they didn’t really need. The original knee injury claim is legitimate; however the additional costs are not.
Do you think that corporate fraud is occurring in your business? Contact us or call 1.770.426.0547.
Why would an armed robber choose your retail location? Because you have money or the perception that money is available.
Loss prevention security where there is a possibility of a robbery must be treated in a serious manner. Your security and loss prevention program should always include training for a robbery.
In most cases robberies only take one to two minutes from start to finish.
WHEN A ROBBERY OCCURS IN YOUR STORE OR AT THE NIGHT DEPOSIT, CONCENTRATE ON THE FOLLOWING:
* The safety of customers, employees and you is always top priority.
* Be cooperative.
* Be observant.
DO’S AND DON’TS DURING THE ROBBERY
* Heroics are uncalled for – Do not resist.
* The sooner it’s over, the better – Do keep it short.
* Do give up the money when the robber demands it.
* Do not argue.
* Do not try to grab the weapon or call out for help.
* Do not over react
* Do make every effort to remain calm. Set the example for other employees.
* Do pay attention. Listen to the robber and do exactly what you are asked.
* Do not make sudden movements. Try to warn the robber of any surprises or unexpected noises.
* Do expect strong/foul language.
* Do expect to be told to lay on the floor or ground.
* Be alert. Try to remember details of the robber’s appearance, clothing and/or speech.
* Do keep any holdup note, but do not allow people to handle it.
* If you can, watch the robber’s direction and method of escape.
* Do not go with the robber!
TAKE THE FOLLOWING STEPS AFTER THE ROBBERY:
* Immediately lock the front door or gate. Robbers have been known to return to the store.
* Call the police immediately!
* Close off the area where the robbery took place.
* Write down everything you can recall about the robbery. Provide this information to the police upon their arrival.
* Do not give the police an exact count of the money stolen. Tell them you will make an exact count and get back to them. You do not want this amount to show up in a police report, then the newspaper.
* Give the police any holdup note.
* Notify your supervisor or corporate office immediately.
* Fill out a company security and loss prevention report. Forward a copy to your supervisor.
* Refer any media questions to your corporate office or loss prevention security department.
For more information about robbery or loss prevention security contact us at security and loss prevention or call 1.770.426.0547 – Atlanta
The Fine Print – DISCLAIMER OF LIABILITY
The information provided is for informational purposes only. It is important that you follow your company’s policies and procedures. The techniques presented although conservative should still be compared with individual state and local laws before proceeding. You should consult your own legal counsel before adopting or using any of the recommendations made. Loss Prevention Systems, Inc. expressly disclaims any liability whatsoever, which may arise as a result of adhering to or failing to implement procedures discussed in this material.
Have you ever wondered how you can turn the tables on a shoplifter and turn the chore to “Prevent Shoplifting” into an activity which is actually fun? How could that possibly be accomplished you wonder?
Shoplifters require private time in your store to pursue their task of shoplifting. By providing excellent customer service you will be easily able to deter a shoplifter from his/her activities. Believe me, when I say that customer service is a prime tool to reduce or eliminate shoplifting.
To explain how to do this I will give you a real example. Previously I conducted a shoplifting prevention training session at a hardware store. I taught them the skills to deal with shoplifters. Two weeks later I received an excited call from the store manager, “it works!” He was surprised but I was not!
A person had gone to the electrical department and picked up a circuit breaker worth about $70. He stuffed it in the front of his pants. An employee saw him do this from behind. The employee proceeded to get on the PA and make an announcement in “code” that only other employees would understand. This code let store staff know that he had a shoplifter and needed help.
A total of 4 employees then followed the shoplifter through the store. They acted like they were counting items or doing other work trying to be inconspicuous. They stayed back about 20 feet but kept following him. Every time the shoplifter would stop and look at something an employee would approach him and ask if the person needed help.
The shoplifter got the message he pulled the circuit breaker out of his pants (disinfectant anyone?), put it on a shelf and walked out of the store.
The employees tracked down the shoplifter and pursued him with customer service as their weapon and the shoplifter left in frustration. No criminal charges, no reports just great customer service that worked to prevent shoplifting loss! You and your staff can do this as well.
Please contact us by calling 1.770.426.0547 for assistance to prevent shoplifting in the Atlanta area
After having noticed irregularities during an audit, the owner of a convenience store in the Metro Atlanta area contacted us indicating being suspicious of employees involved in lottery theft.
Where would you start when assigned a task like this? First we needed to gather additional information which the loss prevention investigator did with the use of two covert closed circuit TV cameras installed to view the cashiers’ area and the lottery machine. Video confirmed that the store manager, who had been employed for several years, was routinely stealing large quantities of lottery scratch off tickets.
Another employee would pocket the cash from cash sales after having given customers their change back from the register.
Once the loss prevention investigator had gathered this information, the convenience store manager could be interviewed. The Atlanta area convenience store manager admitted stealing lottery tickets totaling $111,150.00 and cash in the amount of $6,500.00. The store manager had a gambling problem and stealing lottery tickets satisfied that problem. The cash had been stolen to pay for some bills.
The second employee admitted to stealing approximately $3,400 in cash by ringing up sales and pocketing the cash. The loss prevention manager was able to obtain a confession from this second employee as well who admitted to stealing “spending money”. This employee also indicated knowledge of the manager’s lottery ticket activities. This individual who needed spending money had been employed for a year and a half at the convenience store.
In Atlanta please call us at 770.426.7593.
After having noticed irregularities during an audit, the owner of a convenience store in the Metro Atlanta area contacted us indicating being suspicious of employees involved in lottery theft.
Where would you start when assigned a task like this? First we needed to gather additional information which the loss prevention investigator did with the use of two covert closed circuit TV cameras installed to view the cashiers’ area and the lottery machine. Video confirmed that the store manager, who had been employed for several years, was routinely stealing large quantities of lottery scratch off tickets.
Another employee would pocket the cash from cash sales after having given customers their change back from the register.
Once the loss prevention investigator had gathered this information, the convenience store manager could be interviewed. The Atlanta area convenience store manager admitted stealing lottery tickets totaling $111,150.00 and cash in the amount of $6,500.00. The store manager had a gambling problem and stealing lottery tickets satisfied that problem. The cash had been stolen to pay for some bills.
The second employee admitted to stealing approximately $3,400 in cash by ringing up sales and pocketing the cash. The loss prevention manager was able to obtain a confession from this second employee as well who admitted to stealing “spending money”. This employee also indicated knowledge of the manager’s lottery ticket activities. This individual who needed spending money had been employed for a year and a half at the convenience store.
In Atlanta please call us at 770.426.7593.
