A US survey suggests that theft of cash from US retailers has soared by a fifth at the same time as the number of stores using secure storage at POS (point of sale) dropped by 35pc.
Published by Retail Knowledge and sponsored by Volumatic and Kount, the US Retail Fraud Survey 2014, now in its second year, covers the retail fraud and loss prevention systems, processes and strategies employed by of 100 of the US’s top retailers. The latest survey shows that cash theft, one of the top areas of store loss for retailers, has moved up a position and now represents the second biggest area of store loss at 24pc of shrink. This is a 20pc increase since last year’s Survey, where it was positioned as the third biggest loss.
The survey also suggests that, during the same period, the number of stores using secure cash storage systems at the POS dropped by almost 35pc.
James Harris of Volumatic, one of the US Retail Fraud Survey sponsors, says: “On a per transaction basis, cash remains the cheapest, fastest and most popular way for retailers to accept payment, representing an important opportunity for retailers. Those retailers wishing to take advantage of this opportunity are increasingly employing intelligent cash handling systems to substantially reduce cash shrink, enhance security, streamline cash handling processes and deliver significant operational efficiencies. Whilst to suggest that the reduction in use of secure POS is directly responsible for the dramatic increase in cash shrink would be to oversimplify a complex issue, those retailers affected may well wish to review their cash handling systems, in the light of this information, and re-examine how they store, validate, count and move their cash; both around their stores and to their bank.”
Other areas of store loss in the survey include:
· Employee theft is identified as the biggest area of store loss at 38 per cent of shrink, up 3pc on last year
· Administrative and bookkeeping errors account for the third biggest area of loss at 21pc; a 9pc decrease
· Shoplifting is the fourth biggest area of loss in stores at 11pc; a 15pc decrease.
Volumatic adds that it offers a free cash handling audit to retailers wishing to evaluate how they might streamline their cash handling processes and secure other operational benefits at the same time.
