Credit Card Employee Fraud and Refund - PowerPoint by bhg10732


Credit Card Employee Fraud and Refund document sample

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									In Today’s Highly                                                                                                         Our Retail
Competitive Retail                                    Contact Hilco For An                                            Professionals
Market…..                                             Enterprise Exposure                                                Have Been
                                                          Check-Up.                                                  Protecting The
Can Your Company                                                                                                    Bottom Line For
Afford To Swallow                                                                                                    More Than 30
Any Of These Bitter                                    Click For a Sample                                                     Years!
Pills?                                                     Assessment
                                                     Poor      Fitting        Cashier
                                                                            Underringing          Vendor Theft            High Risk
                                                   Customer    Room                                                        Staffing
                             Identity    Refund     Service     Theft
                              Theft      Fraud                                                                                           Workplace
                                                                                                              Receiving                   Violence
                                                                                     IT Server                  Dock

                   Main                                                                                                                        Receiving
                 Entrance                                                                                                                      Controls
       Credit Card
         Fraud                                                                                                                                 Missing
                                                                                                                              Employee         Deposits
                                                                                                                                              Time Card
                                                                                                                             Cash Office
           Interruption                                                                                                     Power, Water &
                                                                                                                            HVAC Controls      Robbery

           Organized Theft
                               Errors               Low                                                              Accidents
                                         Shrink               Merchandise                        Compliance
                                                  Employee                  Post Voids
                                         Items                 Passouts                            Issues

Hilco Asset Protection, LLC • 5 Revere Dr. Northbrook, IL 60062 • Ph: 847-849-2940 • Fx: 847-897-0740 •
      Inventory Shortage and Loss Prevention Assessment
      Implementation of the following recommendations have the potential to immediately reduce current inventory
        shortage by 22% to 35% (at retail), drive sales, enhance customer service and elevate associate morale

Opportunities - Internal                                                      Opportunities - External
•   Key Internal Exposure Initiatives Include:                                •   Key External Exposure Initiatives Include:

        –    Redesign and Re-energize new hire, periodic training and                –    Promote real time training of external theft and inventory loss
             orientation loss prevention programs                                         scenarios
        –    Develop a collaborative approach with stores to identify                –    Enhance customer service and minimize shoplifting through
             opportunities to reduce inventory exposure                                   analysis and training of normal shopping behavior and
        –    Promote real time training of current internal theft and                     customers purchase patterns
             inventory loss scenarios                                                –    Evaluate expansion of UltraMax EAS Tags and Systems
        –    Establish store design enhancements of display, fitting                 –    Participation in LERP.NET. LERP.NET combines Federal,
             rooms, sight lines, etc to preempt shortage                                  State and Local law enforcement with retailers nationwide to
        –    Establish anonymous internal hotline and ensure                              track organized retail theft rings (ORC’s)
             aggressively promoted                                                   –    Consider Fence Investigations, Law Enforcement Liaison and
        –    Conduct comprehensive associate survey                                       a Legislative Strategy for ORC’s
        –    Establish target program for all high shrink locations                  –    Monitor and investigate internet sites (e-bay) for high shrink
        –    Consider employee background screening and employment                        items
             verification                                                            –    Review possible use Public View Monitors and adding
        –    Intensify of store audit program in high risk locations                      networked CCTV
        –    Expand exception reporting investigations                               –    Evaluate local “chain call networks” for groups of 5 to 10
                                                                                          stores to use to communicate movement of known shoplifter
        –    Integrate loss prevention audit results and inventory shortage               groups.
             performance to managements shortage incentive bonus                     –    Establish the use of name badges to identify store associates
        –    Evaluate existing refund policies impact on internal theft              –    Recognition programs for associates and locations whose
        –    Recognition and award programs for associates and                            shortage performance exceeds expectations
             locations whose shortage performance exceeds expectations
•     Immediate response to internal investigations at Target                 •    Review Existing Refund Policies
      locations                                                                      –    Feedback from field interviews was the existing policy was to
        –    Source additional investigative resources based on current
             loss prevention staffing                                                –    Refund policy is not consistent with competitors
        –    Increase prosecution rate                                               –    Existing refund policy may be affecting morale of associates
                                                                                          asked to protect store inventory
        –    Enhance zero tolerance to theft standard
                                                                              •    Communicate Key Loss Items
•     Consider the use of clear plastic employee lockers
                                                                                     –    Only one of eight executives interviewed knew the top three
        –    Difficult for employees to hide merchandise in these lockers                 classes of inventory shortage at their location
•     Establish integrity shopping service program from an                           –    Consider cycle count select key loss items in Target stores
      apprehension and deterrent perspective
        –    Aggressively promote the integrity shopping program
                For Further Information

Mike Gilligan • Ph: 847-849-2940 • email:

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