Fraud and Theft from Retail Horror Stories

[MarkMandel]

Hi,

I have worked in Retail IT for 25 years and currently researching fraud and theft in UK retail.

I would be very interested in your horror stories and am happy to give any advice on appropriate solutions.

 

[poundcoin]

Don't need any advice as I no longer have a shop but just thought I would relate one of my favourite staff swindles that went on in a store that I once worked in .

I worked for ASDA on Non Foods , well over 30 years ago .
You can judge how long ago because not only did the store close on Sundays but we were also closed to the public on a Monday too !
Seems incredible now !

Monday was used for price changing ( peeling off old tickets and re-pricing each item ! ) and re-merchandising the shelves .

On the clothing section , Monday was also spent returning faulty goods to manufacturers and one of the supervisors would parcel up clothes and trot over to the Post Office to send them back .

Another member of staff realised that a suit that she had seen hanging up on a rail in the morning wasn't there on the Monday afternoon , so an investigation began as there were no members of the public to blame for the disappearance .

Turns out that the supervisor responsible for faulty returns was taking garments that she fancied off the shelf , parceled them up , wrote her own name on the parcel and Royal Mail delivered them to her home address .
Absolutely brilliant ! Not only did ASDA provide her clothes for free , they also paid the postage !!

 

[LiamC]

I've worked in places before where members of staff have been caught either applying dodgy refunds on the tills and pocketing the cash, or not ringing customer's items into the till and pocketing the cash.

Generally, the more modern the system, the less likely this is. If you design systems where members of staff cannot physically open the till without an item being scanned through, it certainly helps alot. You really have to watch some people unfortunately.

 

[MarkMandel]

Good stories, thanks guys.

A good summary, staff take two things, goods and cash and you need to have processes to protect both.

Cheers

 

[MarkMandel]

There is a story/urban legend about a EPOS rollout in the early days of EPOS.

A shop phone the helpdesk with a query on the new EPOS sytem, you only sent us kit for 6 checkouts... OK lets check, you only have 6 checkouts! ... Yes but what about the Managers Till? ...The Managers Till... Yes the Managers till, when we get very busy, the Manger takes out his own cash register and puts through sales on that. ... Really? Yes he is very helpful like that.... MMmmmm well perhaps we need to check out this Managers till... and whether or not those sales have been banked or not!

 

[SamStones]

When I worked for Dominos as a delivery driver many moons ago there was another driver there sacked for taking deliveries, taking the money off the customer and then marking the order as void on the system when she got back to store.

She was caught as each manager had their own password, and the password she was using one night belonged to a manager who was on holiday that week. Stood out like a sore thumb on the end of day!

Whoops!

 

[IE152]

Not a retail story, but I had used to work for a firm that had a team of travelling salesmen who were out on the road 4.5 days a week.

This was many years ago, and it was common for many customers to pay cash. He enterprisingly got a load of order forms printed where the prices were more than the 'actual' price. If he realised that customer was going to pay cash, he would use one of his order forms, and then later complete one of the proper order forms, which would be sent back to head office with the money and he would pocket the difference!

He only got busted when he was at the office and his car got called in for a random check, and a load of the fake order forms were discovered in the boot!

 

[deniser]

Many years ago I worked for a large high street chain where staff used to throw stock out of the stock room window onto the flat roof below then come back at night time and climb onto the flat roof to retrieve it.

 

[GeorgeStrait]

Many years ago I worked for a large high street chain where staff used to throw stock out of the stock room window onto the flat roof below then come back at night time and climb onto the flat roof to retrieve it.

Sorry Deniser you forgot to add this:-

.........and from that little acorn my business grew

 

[deniser]

Sorry Deniser you forgot to add this:-

.........and from that little acorn my business grew

Not me I might add!

 

[MarkMandel]

Re goods on the flat roof, also seen stories of goods, out the toilet window or even stored in the skip for later retrieval!

They also show the problem with paper processes, but also IT, IT is no more secure unless you keep your password and security policy up to date and cruically, enforced.

 

[MarkMandel]

Many years ago I worked for a large high street chain where staff used to throw stock out of the stock room window onto the flat roof below then come back at night time and climb onto the flat roof to retrieve it.

Also seen reports of items from grocery shops where staff stored goods for claiming later: in the skip/bins, out the toilet window or even in the toilet cistern (yuk!) which is why you should never buy steaks from a bloke in the pub!

 

[Forum Retail]

One of the easiest fiddles to stop is a simple pricing issue, weatherspoons have there prices end in 2,3,4, 6,7,8 to make sure each sale has to have cahnge, if you sell a drink at 2.50 dont be surprised if the cashier when asked for two, then given a fiver does not bother to ring it into the till. Customer is happy, tills all balance, is just the stock and the profit that is missing.
You should encourage customers to expect a receipt, even though this can be annoying at times it will save you money

 

[GeorgeStrait]

One of the easiest fiddles to stop is a simple pricing issue, weatherspoons have there prices end in 2,3,4, 6,7,8 to make sure each sale has to have cahnge, if you sell a drink at 2.50 dont be surprised if the cashier when asked for two, then given a fiver does not bother to ring it into the till. Customer is happy, tills all balance, is just the stock and the profit that is missing.
You should encourage customers to expect a receipt, even though this can be annoying at times it will save you money

And this is why prices ending in 99p were originally brought in

Saying that, some of the Weatherspoons staff I have met would have trouble doing the maths on 2 x £2.50 anyway

 

[FaerieB]

When I worked at Kendals in Manchester many moons ago ... a white van turned up at the loading bay and two guys in uniform got out and quite calmly removed several rails of designer clothing (that had just be delivered) into the back of their van and drove off ... no one batted an eyelid x

 

[GeorgeStrait]

When I worked at Kendals in Manchester many moons ago ... a white van turned up at the loading bay and two guys in uniform got out and quite calmly removed several rails of designer clothing (that had just be delivered) into the back of their van and drove off ... no one batted an eyelid ....and that was how I started my business

......................................

 

[MH1]

I was asked to become manager of a local wholesaler many years ago, which I agreed to on the basis I had every invoice sent to myself, and I priced all outgoing invoices.

They had 15 staff when I joined them, three weeks later only two honest ones were left, all the other's were stealing the equipment as fast as it was being ordered.

It ranged from a van driver filling up petrol in all his mates cars when he only had a diesel card for the garage, to simple changes of quantities on invoices to clients to try and cover their theft.

How they had managed to get away with it for three years minimum was beyond myself, some people have no idea on checking such basic things. None of the scams were particularly clever.

 

[Pap_sak]

Staff steal, it's a fact of retail. Low wages, nice products. You will never stop it, at the most all you can do is contain it. IMO.

 

[internetspaceships]

Staff steal, it's a fact of retail. Low wages, nice products. You will never stop it, at the most all you can do is contain it. IMO.

Rubbish. I don't have thieves working for me. That's a gross overgeneralisation.

 

[kulture]

We used to run a bar. We used to pay for taxis for the late shift staff to get home (no public transport). Going through the receipts I found a set timed at 3am (bar closed at midnight). Last till entry was before midnight. It seems that they had a lock in, did not ring in any money, and then were stupid enough to bill me for the taxi home which proved them being there well after closing. The takings went up and the alcohol purchases went down after that particular shift were no longer employed.

 

[internetspaceships]

Aye there's absolutely no excuse for thievery in this day and age. It's not like a father has to steal to feed his kids now.

People who don't have jobs often have more money than those who do work.

 

[MarkMandel]

None of the scams were particularly clever.

I agree with that, most of the people who commit fraud are not Einstein thinking up complex scenarios. Simple processes and controls go a long way to detection and prevention.

Re the person who said he dosen't employ thieves, hopefully you are right but how many fraud cases have the victims saying "We really trusted that person"?!

My advice is trust, but also check!

 

[mhall]

My favourite/most annoying thing caught on camera was two men in high vis jackets wheeling a full 12ft flower display from directly in front of the Retail Unit, out of the building (service station) and into their van while two Retail staff chatted 3 foot away. What made it worse was that one of the cleaners even picked up a couple of missed flowers and took them to the guys who were loading it all on their van. If only YouTube had been around then, it would have been a massive hit !

 

[IE152]

Again not a specific retail problem , but the earlier poster about the bar and taxis reminded me of a one time colleague who bought a book of taxi receipts from a 'helpful' driver - with almost all taxi receipts being hand written, whenener he wanted a couple of quid he would just submit an expenses claim with one or two receipts he had issued himself

 

[and180y]

Wise gaffer once say;

"There is no such thing as thieves, merely opportunity takers".

 

[Parthelan]

Not specifically retail, but many years ago, one of our centres was broken into. The call centre we used alerted me, and the caretaker number they had.

The caretaker - an agency guy - got there before me, and didnt know who I was.

Bizarrely, he didnt ask either. We walked around the premises, checking damage, but couldnt find anything missing.

Then I noticed a pile of computers stacked up by one of the rear doors.

Ah hah I said, looks like they were planning on coming back for this lot before they were disturbed.

Naw says the guy, Ive got my car out back, I was going to lob them in the boot before the police get here, and then you came in.
No one will know and the police and owners will think it was down to the theft.

I then showed him my ID

Fark he wailed, I thought you were just another agency caretaker

5 minutes later the police showed up

 

[MarkMandel]

I was asked to become manager of a local wholesaler many years ago, which I agreed to on the basis I had every invoice sent to myself, and I priced all outgoing invoices.

They had 15 staff when I joined them, three weeks later only two honest ones were left, all the other's were stealing the equipment as fast as it was being ordered.
.

Great story thanks, I would be very interested to know how you handled the staff dismissals? Did you present them with evidence and ask them to resign or did you get the police involved? Or did you think the police would not care?

Ta

 

[MarkMandel]

Yeah High Vis jacket, it almost always proves you are important/honest/genuine/from head office and don't need to be questioned!

 

[JohnnyCash]

One of the easiest fiddles to stop is a simple pricing issue, weatherspoons have there prices end in 2,3,4, 6,7,8 to make sure each sale has to have cahnge, if you sell a drink at 2.50 dont be surprised if the cashier when asked for two, then given a fiver does not bother to ring it into the till. Customer is happy, tills all balance, is just the stock and the profit that is missing.
You should encourage customers to expect a receipt, even though this can be annoying at times it will save you money

A lot of the restaurants around here have signs up saying if you don't get a receipt, the meal is free. Though with the way restaurant owners treat staff, on top of only paying them £2 an hour, its no wonder staff are dipping the tills at every opportunity...

 

[kulture]

I think you will find that staff are paid more than £2 an hour.

 

[JohnnyCash]

I think you will find that staff are paid more than £2 an hour.

Depends where you live!

Here (Czech Rep) 60kc an hour is pretty common for working in a restaurant. Should have made it clear that I wasn't referring to UK, but I guess the only thing that changes is the hourly rate - not the fact that a lot of restaurant owners treat their staff poorly.

If anyone thinks they are badly treated in their job they should come work here for a while My girlfriend walked out of one job as the owner wanted the waitresses to pay for the rubbish collection out of their tips jar. Left another after working a shift for free because a table ran away without paying and the owner deducted their full bill from the waiting staffs pay. She's currently unemployed again as her more recent boss kept asking waiting staff to come to work, then sending them home half an hour later (without pay) as they didn't have enough bookings.

 

[kulture]

In the UK, where you find many Czech people working in restaurants, the staff have to be paid minimum wage, which is nearly £6 an hour. Also there is LESS abuse of the type you describe. Many waiters/waitresses earn in excess of £10 an hour when you include tips. Done properly, you can earn a very good living.

 

[JohnnyCash]

In the UK, where you find many Czech people working in restaurants, the staff have to be paid minimum wage, which is nearly £6 an hour. Also there is LESS abuse of the type you describe. Many waiters/waitresses earn in excess of £10 an hour when you include tips. Done properly, you can earn a very good living.

I wouldn't call earning £10-12 an hour in central London a very good living...

I'm all for market forces setting the wage levels rather than the government setting it like back home, but some of the other stuff that goes on here is ridiculous.

 

[kulture]

I wouldn't call earning £10-12 an hour in central London a very good living...

Nor would I, nor did I. The UK is not just London.

In my local small market town they earn £10 + an hour. In London, the potential earnings are higher. For example one restaurant in which I regularly go the waiters get 50% of all tips (tips are pre-set to 12.5% of the bill) the average charge per head is about £25 and a waiter will do about 15-30 people an hour. This equates to £30+ an hour.

 

[kelvin1950]

I wouldn't call earning £10-12 an hour in central London a very good living...

That;s undoubtedly true but there are a large number of people working in central London earning this sort of wage and travelling up to 2 hours each way to get to work. It doesn't make it right, nor does it make it good but it's a fact. £10-12 an hour is £20k plus per year based on a 40 hour week. There are lots of people who would welcome a salary of that magnitude.

 

[JohnnyCash]

Nor would I, nor did I. The UK is not just London.

In my local small market town they earn £10 + an hour. In London, the potential earnings are higher. For example one restaurant in which I regularly go the waiters get 50% of all tips (tips are pre-set to 12.5% of the bill) the average charge per head is about £25 and a waiter will do about 15-30 people an hour. This equates to £30+ an hour.

A waiter on £30 an hour would certainly be in the minority... moreso when it comes to foreign staff. If "tips" are preset on the bill as a "service charge" there is not even any requirement for the restaurant to share them with the staff at all, as tips and service charge are two totally separate things, but most customers won't realise this

That;s undoubtedly true but there are a large number of people working in central London earning this sort of wage and travelling up to 2 hours each way to get to work. It doesn't make it right, nor does it make it good but it's a fact. £10-12 an hour is £20k plus per year based on a 40 hour week. There are lots of people who would welcome a salary of that magnitude.

Sure, but I was just making the point that most waiters/waitresses don't make a "very good living" - they make crap money for doing an unskilled job.

From speaking to my girlfriend, I don't think any of the Czechs she knows that are doing low level jobs in London are earning more than £10 an hour.

 

[kulture]

The examples I gave were real ones based on real 1st hand experience. Not assumed. Anyway I think we have hijacked this thread enough.

There is never any excuse for staff to steal, but alas some staff think it their right or perk. I bet office based staff think nothing of stealing stationary.

 

[MarkMandel]

If you don't mind saying.... do your type of goods attract a lot of fraudsters, or are they too hard to resell for them to bother with you?

Appreciate if you cannot say, just thought I'd ask