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.

1. Proven Fraud
Prevention Strategies
Kris Rogers and Megan Slinn

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. 9.6 to $14.8
$
Billion
are lost in the retail industry to fraud each year.

4. Motivation
Fraud Risk
Opportunity
Rationalization

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. Of all retail theft
37%
is manager theft.

7. Areas of Opportunity within RQ
Weak Internal Controls
Separation of Duties
Indifferent Management

8. Complex Passwords
and Timed Password Reset

9. Less than
1%
enforce complex passwords.

12. Lock Screen
and Time Out

16. Transaction
Authentication

21. Biometrics

24. Employee Time Theft

25. 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

26. 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

27. Story
Boxes Being
Tampered With

28. Story

29. Story

30. Shipping Fraud

31. You have noticed
Unauthorized Shipping
Expenses and/or an
increase in shipping
charges on your company
FED/EX or UPS account.

32. Monitor your shipping expense account.

33. The Tale of
1% and 99%
for Commissions

36. Refund Fraud

37. $$$
(SUMMIT RETURN STATS GO HERE)
$$$

38. Quick Sales
Potential Issue

39. Quick Sales since the last Summit
3,769,790

40. Last year Quick Sales
???

41. Refunding a Quick Sale

42. This can happen if you do not have security
set to block Quick Sales

43. Quick Sales

44. Prompt for a customer to be selected

45. Block the Quick Sale

46. Do I allow
Quick Sales?
…I think I do!
Oh dear.

47. You need to look at any refund invoice that is
linked to a Quick Sale customer.
Where do
I find that?

48. Refund Summary Report
Filter by Quick Sale in
the Customer field and
sort by Refund Amount.

49. Refund Codes

53. Refund Quantity Report

54. Refund Override Required
After
Days

56. 30 Day Refund Policy

58. 0 Days Refund

62. 68%
of 2013 Summit attendees
use non-sellable products.

63. 55%
do not count that inventory.

65. High Cash Sales

67. Payment Method Setup
Limit $ Amount

69. POS Restriction to Prevent Fraud

72. 12%
of RQ users
use blind cashouts.

73. Add in a buffer,
variance limit.

74. Manual Addition of SKU’s
Double check
manual addition of PAW skus
Double check
promotion SKU’s

77. Epin/Real Time
Replenishment

83. Login Audit Report

84. 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?

85. Login Details

86. Last Login

87. No Logins

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