Retail fraud is a common challenge in the industry and can be difficult to detect and prevent. Here we outline various scenarios and suggest solutions to mitigate these risks.

 Scenario 1: Insider Trades Barcodes To Get A Lower Price

In this situation, an insider manipulates the barcode for personal gain. To prevent this, you should consider the following measures:

Encode relevant information such as brand and product type into the barcode. Ensure claimants have extensive product knowledge to identify fraudulent activity.

Scenario 2: Abuse Of Employee Discounts 

It is important to prevent the abuse of employee discounts. How to solve the problem:

Assign a unique employee code to each employee for discount verification. Establish clear discount procedures and policies to differentiate between employee and non-employee discounts. 

Scenario 3: Hide Loyalty Points From Customers

To prevent your employees from abusing loyalty points, follow these steps:

Print loyalty points on customer receipts and send them as a message. Implement OTP validation for loyalty point redemption. Inform customers about loyalty point details, redemption, and terms. 

Scenario 4: Packing Unscanned Items

Packing products that have not been scanned can hinder your sales. Please consider the following safety precautions.

Assign separate staff for scanning and cash collection. Promote digital payments and RFID technology. Increase security with video surveillance. 

Scenario 5: Packing Unscanned Items For Sale To Employees

To prevent this issue, specific measures are required:

Perform an employee search. Prohibit employees from using bags in the sales room. 

Scenario 6: Theft Of Real Estate Exhibits

Minimize stationary exhibits and increase security.

Use CCTV and RFID systems to improve inventory management. 

Scenario 7: Employee Viewing Is Skipped

Be sure to screen your employees using the following steps:

Implement a single route in and out for employees. Create separate entrances for employees and customers. 

Scenario 8: Theft Of Free Or Complimentary Items

Protect your free items with the following strategies:

Keep your free or complimentary items safe. Apply permission restrictions. 

Scenario 9: Illegal Discount 

Effectively prevent fraudulent discounts. 

Restrict access to discount benefits. Set the discount limit. 

Scenario 10: Reluctance To Invoice Customers

Prevent excessive pricing and manipulation.

Promote a “no bill, no payment” policy. Make sure your provider provides a valid bill. 

Scenario 11: Excess Cash Is Not Returned To The Customer

Avoid this scenario by:

Display cash balance on screen. Make sure both the seller and the customer can see the exact amount that needs to be returned. 

Scenario 12: Unreported Cash Surplus

Avoid unreported cash surpluses by:

Introduction of the appropriate reporting system. Regular monitoring of cash balances. Management involvement in day-to-day financial statements. 

Scenario 13: Cancel System Bill

How to prevent invoice cancellation due to theft:

Restrict access to invoice cancellation. Record the reason for cancellation. 

Scenario 14: Manual Sales Entry

Prevent unrecorded manual sales by:

Ensure all manual sales entries are recorded in the system by the end of the day. 

Scenario 15: Accept Online Payments To Employee Accounts

Create a protocol to prevent this scenario.

Develop clear payment policies. Prominently display valid bank account information. By implementing these solutions, retailers can better protect their businesses from various fraud scenarios and maintain trust among both employees and customers.