A survey detailing loss prevention in North American retailers has highlighted that stores’ own staff accounts for the top three areas of loss. The Volumatic Kount US Retail Fraud Survey 2013, which interviewed 100 retailers in the US, revealed that employee fraud comes out top with 37 per cent of retailers reporting inventory theft by employees.
Coming in second were administrative and bookkeeping errors reported by 23 per cent of retailers. Third place was direct cash theft by employees at 20 per cent and fourth place was staff shoplifting at 13 per cent.
Paul Bessant, MD of Retail Knowledge who commissioned the Survey, said: “North Americans are more up front about insider fraud than their retail colleagues in the UK.” Its UK sister publication noted that internal loss in the UK ‘may be under reported’ and comes in second as a concern, after outsider shoplifting.
James Harris, Commercial Director of Volumatic, one of the Survey sponsors, added: “Cash and merchandise losses caused by internal fraud are only part of the story. When you factor in the costs and time spent in investigations and disciplinary procedures, not to mention the damage done to internal morale and external reputation – the cost of insider fraud can be up to three times as much as the original losses incurred.”
The Volumatic Kount US Retail Fraud Survey 2013 was sponsored by cash handling product firm Volumatic and payments product company Kount. The 100 North American retailers represent over a fifth of the North American retail market.
Access to the Survey results – for retailers only: the full survey, including detailed profiles of the retailers that took part, is available to retailers who commit to participate in next year’s Volumatic Kount US Retail Fraud Survey. Contact [email protected] to find out more.
The full survey, including detailed profiles of the retailers that took part, is otherwise available for purchase at www.retailfraud.com <http://www.retailfraud.com> or you can contact [email protected]
The Volumatic Kount US Retail Fraud Survey 2013 was carried out by retail research firm Martec.
