One of the biggest problems that bricks-and-mortar shops face is in-house theft, and worryingly statistics show that 34% of theft and fraud is actually committed by employees. Cash skimming and larceny are the main ways cash is stolen by staff. Though both acts result in the loss of takings, cash skimming is defined as the stealing of unrecorded cash receipts (which is more difficult to detect because there is no audit trail), while larceny is stealing cash that has already been recorded in the books. As opposed to external theft which can be more difficult to detect and prevent, these types of internal theft can be prevented by taking some simple steps, including having a robust surveillance system and setting up sound operational procedures. In this post, we will look at 5 ways to eliminate in-store cash skimming and larceny which are relatively quick, easy and cost-effective to implement.
Setting up a surveillance system is the first step to eliminate in-store cash skimming and larceny. CCTV installed in areas where cash is being handled, such as at cash registers and where cash is counted, will not only act as a strong deterrent for any would-be thieves, the CCTV footage can also be reviewed and used as evidence during any investigation. When installing a surveillance system, it is always best to consult a respected security company such as Guardforce Hong Kong, who can offer the best advice on the most suitable cameras to use, where to place them, and where not to place them for privacy reasons.
Implementing a procedure where cash is reconciled at every shift change is a simple but effective way to identify any loss before the next shift begins. This method has proven to be a good deterrent and, if an incident does occur, will help to narrow down the suspects if theft is suspected. Random cash counts performed by supervisors can also be considered as another preventative measure.
Another simple and effective way to prevent theft is to segregate duties during the cash handling process. Wherever possible, different people should be responsible for cash receipts, cash counts, banking in, etc. By segregating duties in this way, it ensures no single person has control over the entire accounting process.
In stores where cash payments are common, it would be prudent to invest in a modern POS (Point of Sale) system. Being a computerised system which tracks how much should be in the register compared to what has been sold, it would expose any potential theft instantly. Also, if you do choose to perform random cash counts at various points during the day, a POS system will make this a lot quicker and easier.
These days, stores can enjoy the security and convenience of their own cash deposit machine which will certainly help prevent not only theft, but also human errors. Guardforce Hong Kong, for instance, offers a wireless and compact smart cash deposit machine boasting a number of features such as:
Take a look at the machine in action here:
Guardforce Hong Kong offers not only surveillance systems and cash deposit machine solutions to help prevent internal (and external theft), it also provides full end-to-end secure logistics, including cash collection, counting and banking in. To learn more, click here.
