Zero tolerance of internal crime can include talking with the benefits and immigration agencies about staff caught stealing, a retail speaker told the IFSEC conference in May.
Dean Jenkins, security manager for the Westfield group of shopping malls, began with the point that security and certainly loss prevention are vulnerable to cuts and rationalisation; so value for money is important when you are downstairs [that is, on the retail floor], speccing your latest security requirements. ‘It’s important to understand from a retail perspective that you understand the threats; and one of the major threats to business is insider crime.’ He went on to speak of ‘developing a zero tolerance approach culture’. Punishment versus reward (for wrong-doing) is a sensitive subject with some companies, that some just will not talk about, he said. He stressed the use of everything possible in your security strategy, and co-ordinated use of resources. ‘That’s what I am a big advocate of, being an end user, a procurer of services, I am all about fully integrating what we do, and within a retail environment, whether a shopping centre, or a town centre, or an out of town shopping centre, if you aren’t doing that you really are missing a trick.’
While he was giving his speech and the audience were listening, as he said, somebody, somewhere, is planning or thinking about or has already done a crime. The theft can be of stock; cash; information; or company time, ‘a myriad of things that can be stolen’. Insider, or employee, theft, will damage the foundations of a business, particularly a smaller business. ‘However, the bigger the environment, the wider the opportunity. The larger the business, the higher the risk.’ The reasons for internal crime remain constant, he went on. ‘They all boil down to one thing; and that is the opportunity. It’s opportunity that will create temptation; we don’t know what goes on in the lives of most of our employees; we don’t know what pressures they are under an d what they are involved in.’
He stressed the size of the retail sector and the importance of a regional mall such as Merry Hill in the West Midlands to the surrounding economy. Someone in their first job who short-changes a customer or walks out with stock can be on the first rung of crime; or millions can be siphoned off. Common problems include fraudulent cash or credit card refunds, particularly done in collusion with others. He suggested that some regard such internal crime as taboo. Much is never reported. Some in retail even believe that if you don’t know about it, it’s not a problem. That is, as Dean Jenkins added, until a retailer does an audit and then it’s a problem; but by then it’s too late. He quoted from a British Retail Consortium survey where 40 per cent of businesses said they did not know what proportion of crime against them went unreported. And in a recession, the opportunity may be there, and more people may be prepared to take a chance. Dean Jenkins discussed some ‘trigger profiles’ for loss prevention people to consider. Low morale in a workplace; disgruntled and underpaid, unpromoted staff feeling disloyal. And if there are fewer internal controls, staff will feel that no-one is looking; and Dean Jenkins suggested, those staff tempted to steal may see minimal consequences if they are caught.
What to do? For one thing, vetting and screening of staff. Do not tolerate any crime – that is, do more than simple spend on guarding and CCTV. ‘Security is not rocket science; but you have to set out your strategy. Build relations with neighbourhood police. Do you involve Benefits Agency, or immigration, who may help your risk profiling.
A retailer may tolerate shrinkage before it even allows any commitment to capital spending on a particular security problem. ‘You have got to fight your corner.’ Heads of security and loss prevention may be lucky, or unlucky, enough to be in an organisation with a procurements director. That is, you have to pass that head of procurement before you can approach the board for spending. A shrinkage level may almost legitimise a level of crime, in retail and in society. He urged retailers to do more to the internal criminal than show the person the back door. Is there a case for a register for such people? He asked. One way to break down secrecy about retail staff crime, and breaking down the rivalry between retailers on the high street, is to work in crime reduction partnerships – Dean Jenkins is director of a Midlands crime partnership himself. There are many such partnerships, but they tend to talk about shoplifters, rather than internal crime. That said, Westfield will fund such partnerships, and reaps benefits.
