RQ Retail Management: Proven Fraud Prevention Strategies

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An unfortunate reality in today’s retail world is the growing increase in fraud. In the rapidly changing wireless industry, new phones, new commission plans, new discounts and bundles, the potential for fraud in a wireless store is huge. Fraud, of course, isn’t just lost or stolen items – we’ll also look at things like commission fraud, for example. In this session, we’ll examine industry stats, RQ4 client stats and identify things we’ve seen – and how you can prevent and monitor these things. Every lost or stolen item counts, and knowing what to look for operationally will affect your bottom line.

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RQ Retail Management: Proven Fraud Prevention Strategies

  1. 1. Proven Fraud Prevention Strategies Kris Rogers and Megan Slinn
  2. 2. Fraud /frôd/ n. the intentional use of deceit, a trick or some dishonest means to deprive another of his/her/its money, property or a legal right.
  3. 3. 9.6 to $14.8 $ Billion are lost in the retail industry to fraud each year.
  4. 4. Motivation Fraud Risk Opportunity Rationalization
  5. 5. How Retail Fraud was Discovered 26.3% à Reported By Employee 18.8%à à Internal Audit 18.8% Accidental 18.8% à Internal Audit 15.4%à à Internal Control 15.4% Internal Control
  6. 6. Of all retail theft 37% is manager theft.
  7. 7. Areas of Opportunity within RQ Weak Internal Controls Separation of Duties Indifferent Management
  8. 8. Complex Passwords and Timed Password Reset
  9. 9. Less than 1% enforce complex passwords.
  10. 10. Lock Screen and Time Out
  11. 11. Transaction Authentication
  12. 12. Biometrics
  13. 13. Employee Time Theft
  14. 14. According to studies by the Robert Half Agency and the American Payroll Association (APA), employee "time theft" – when employees clock in/ out early or late or take long lunches or breaks – exceeds 10 minutes per day, per employee. 2 2010 Global Payroll Performance Study, by Felicia Cheek, APA, http://legacy.americanpayroll.org/pdfs/pt11e/e1111.PDF
  15. 15. Example Employee Time Theft + 5 employees $10 = 10 minutes a day each 250 minutes per week / hour that’s $40 a week in over pay Over $2000 per year, for just 1 location
  16. 16. Story Boxes Being Tampered With
  17. 17. Story
  18. 18. Story
  19. 19. Shipping Fraud
  20. 20. You have noticed Unauthorized Shipping Expenses and/or an increase in shipping charges on your company FED/EX or UPS account.
  21. 21. Monitor your shipping expense account.
  22. 22. The Tale of 1% and 99% for Commissions
  23. 23. Refund Fraud
  24. 24. $$$ (SUMMIT RETURN STATS GO HERE) $$$
  25. 25. Quick Sales Potential Issue
  26. 26. Quick Sales since the last Summit 3,769,790
  27. 27. Last year Quick Sales ???
  28. 28. Refunding a Quick Sale
  29. 29. This can happen if you do not have security set to block Quick Sales
  30. 30. Quick Sales
  31. 31. Prompt for a customer to be selected
  32. 32. Block the Quick Sale
  33. 33. Do I allow Quick Sales? …I think I do! Oh dear.
  34. 34. You need to look at any refund invoice that is linked to a Quick Sale customer. Where do I find that?
  35. 35. Refund Summary Report Filter by Quick Sale in the Customer field and sort by Refund Amount.
  36. 36. Refund Codes
  37. 37. Refund Quantity Report
  38. 38. Refund Override Required After Days
  39. 39. 30 Day Refund Policy
  40. 40. 0 Days Refund
  41. 41. 68% of 2013 Summit attendees use non-sellable products.
  42. 42. 55% do not count that inventory.
  43. 43. High Cash Sales
  44. 44. Payment Method Setup Limit $ Amount
  45. 45. POS Restriction to Prevent Fraud
  46. 46. 12% of RQ users use blind cashouts.
  47. 47. Add in a buffer, variance limit.
  48. 48. Manual Addition of SKU’s Double check manual addition of PAW skus Double check promotion SKU’s
  49. 49. Epin/Real Time Replenishment
  50. 50. Login Audit Report
  51. 51. Login Audit Report Information on: Who was logged in at a certain time? What location & workstation were they at? When was their last login? Which RQ environment were they in?
  52. 52. Login Details
  53. 53. Last Login
  54. 54. No Logins
  55. 55. iQmetrix.com | 1.866.iQmetrix © 2011 iQmetrix. All right reserved. iQmetrix, the iQmetrix logo, RQ4 and other trademarks, service marks, and designs referenced in this material are the exclusive property of iQmetrix Software Development Corp. and/or its subsidiaries.

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