Over the holidays I watched “A Christmas Story” for the gazillionth time.  One of the scenes in the movie is Ralphie getting his secret decoder ring to unlock the mysteries of the universe.  His ring consisted of all the tools that when utilized would transform his world.  He waits anxiously for the secrets to be revealed.  He would have vast knowledge at his fingertips.  In Ralphie’s case it was a series of letters and numbers – the secret code.  He is thoroughly disappointed when the first message he interprets with his super secret decoder ring is “be sure to drink your Ovaltine.”

We may have too much faith that it cannot happen, or won’t happen or we’re simply naïve.  Perhaps we don’t seek, therefore we don’t find.  Maybe it’s assumptions, perhaps laziness, or even poor work ethic.  It can breed and morph in a culture where accuracy is considered unimportant.   It is commonly known as – pencil whipping, or faking information on documents.

The restaurant industry is rife with ways to lose profitability.  Just when you think you have things buttoned up, a new twist comes along that can threaten your business and you may not even know about it.  Last year the restaurant industry lost an estimated $200 million to a theft scheme called “skimming”.  The cashier or server is equipped with a portable electronic device commonly known as a “skimmer” that can be easily be hidden in a pants pocket.  When handling customer credit cards the employee swipes the card through the POS system to capture the sale and while still in possession of the customer’s card, swipes the card through the skimmer as well.  The customer’s information contained on the magnetic stripe on the back of the card is captured in the device.  The information is then typically sold or transferred to organized rings that produce counterfeit cards and rack up fraudulent charges.  

The adventure usually begins with a notice from the bank that a deposit was either short or is missing.  It triggers questions of who was supposed to have taken it to the bank and when.  When the accountability for the deposit is determined, the employee in question undoubtedly swears that they followed deposit protocols to the letter and denounces the bank records.  Requests are made to the bank to inspect their night depository including the chute and all deposit records.  If applicable, recorded video may be viewed to determine when the particular deposit in question was prepared and removed from the store.  It’s a long, arduous process.  Trust levels are threatened, feeling can be hurt and false accusations could lead to civil action.

An employee was working at a chain donut shop by herself at 3 AM on a Saturday morning in Johnston, R.I.  She was standing behind the counter when she heard a noise and saw a man climbing the drive-thru window.  According to police, the man grabbed the employee by the arm while a second suspect climbed through the window holding a crowbar.  The pair robbers demanded the employee show where the safe was located. 

The following is a guest blog article from Steve Degener. Steve has a long and varied career in retail loss prevention for such companies as Target, T.J. Maxx, Office Depot, and was the VP of Loss Prevention for Ross Stores. He is the owner of several businesses catering to the loss prevention efforts in the retail industry:

It has nothing to do with concrete blocks and mortar. Cranes and bulldozers are not involved, and it has no reference to the facility where you make your deposits or take out a loan.  The first time you encounter it, you may think you’re ahead of the game.  What it may all mean is the foundation for a scam to steal hard earned cash from the register.  Building a bank, also known as “padding the register” is part of a theft scheme and you may never know it without a keen sense and knowledge of how it’s done and the skills to do something about it.

The assistant manager was in charge of inputting hours worked by employees into the back office system.  She was very diligent in making sure employees were paid accurately and that the employees were punching in and out correctly.  She applied correct discipline to those that forgot to punch in or out.  Her supervisor was proud of her that she took such care in the accuracy and discipline of their payroll.  He was so confident in her competency that he left it all in her hands.

The order was placed from an unsavory part of town in Newport, RI.   The eyes of the driver delivering the pizza were sweeping from side to side as he drove down the dark street, his knuckles gripping the wheel a bit tighter than usual.  The roof of his car was adorned with the pizza company’s roof topper.  He knew it made his car stand out.  He was very aware that several deliveries to this particular area resulted in armed robberies, the latest in which the driver was assaulted.  He quickly glanced at the house address, then in the mirror, and again side to side.  The house was just ahead.