The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

Helping retailers cut employee and customer theft


Every couple of days we seem to be helping one of our retailer customers resolve an employee or customer theft challenge. ¬†While we don’t have firm evidence, it feels like theft is on the rise.

Here are simple steps you can take to cut theft in any retail business based on years of experience in the area:

  1. Track everything you sell from ordering goods to the shop floor to the sales counter to returns. You can only manage what you track.
  2. Scan every item sold. Do not use department keys – allowing staff to enter the value of an item purchased.
  3. Track all sales by employee: using a code or barcode. This will cut mistakes.
  4. Undertake regular spot stock takes. In more than half incidents of employee theft this action would have revlaled the theft sooner.
  5. Reorder stock using your software. It’s fast, accurate and stops poor buying decisions.
  6. Set an end of shift cash balance target of $5.00. Many retailers achieve this – it takes discipline.
  7. Change your system passwords regularly. Make it a condition of employment that these passwords are never shared.
  8. Do random, during the day, cash balance checks.
  9. Use your software to check and report on behavior which could indicate employee theft. Good software will reveal employee activity likely to indicate fraud / theft.
  10. Establish rules for discounts, returns and refunds and use your software to manage these.
  11. Integrate your EFTPOS with your Point of Sale and reduce fraud opportunities.
  12. Follow your suspicions regardless. Put your business ahead of friendships.
To many retailers are losing too much money due to theft.

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By Mark