Alpha Shark Tags – 5 WC blog 05
Return fraud – 4
Taking A Bite Out Of Return Fraud With Alpha Shark Tags
Retail theft is a major headache for any retailer. It may be an opportunist who takes a drink from a cooler and consumes it while shopping then drops it somewhere in the store and fails to pay for it. It could be a booster stealing thousands of dollars of merchandise then selling it on the street. Whatever the cause, all of it affects the profitability of the store. Retail theft prevention programs often focus on efforts to stop shoplifting, but neglect Return Fraud and the costly impact it has on businesses. While there are a myriad of tools available for deterring and preventing theft, preventing return fraud can be a daunting task. Using Alpha Shark Tags is one effective tool retailers may use to combat this activity.
Once upon a time I worked for a department store that sold higher end clothing lines. We had dye tags and electronic article surveillance tags on merchandise that assisted in theft deterrence, but were of little value in preventing return fraud. Since the merchandise was purchased through the point of sale the tags were properly removed or deactivated. I wish we had the Alpha Shark Tag available to us at that time. The Alpha Shark Tag is a small, brightly colored, plastic tag that is placed on clothing by the retailer. It is the purchaser who is required to remove it by cutting it off once they leave the store. It is a one-time use product and by forcing the customer to cut off the device after purchase the possibility of replacing it on the clothing and returning it is removed. The buyer can take it home, and try the merchandise on again or give it as a gift with the tag still intact. If the buyer or the gift recipient wants to return the item the tag should be required to be in place. Since the Alpha Shark Tag is so bright and visible, when properly attached to a garment, the attire cannot be worn with the intent of returning it later.
I recall the complaints of the sales associates and area managers who were responsible for processing returns of soft lines items. Often they suspected a dress or an outfit had been worn once or twice, but due to return policies of the company they were required to take the merchandise back. Now the issue was not that the item had been worn, it goes without saying there will be legitimate returns of clothing that may not fit, or simply are not a style someone prefers. The merchandise returns that angered the associates were the pieces of merchandise that smelled of perfume, cigarette smoke or other odors. The associates were well aware of items that had been purchased and worn to a party then refunded. My future wife worked in this store and educated me on what the perpetrators of the return fraud were doing. Depending on the placement of the merchandise tags, those committing the fraud would tuck the tag back in the clothing and tape it up inside the item. They might also carefully slide the tags off of the plastic attachment and when they were done wearing the item they would slip the tags back on, bring in the garment with the receipt and get their money back. I learned a lot from my wife and the other sales associates, but my hands were tied. As long as the “customer” followed the store policies, they were going to get their refund.
It is a fact that many who commit return fraud do not see themselves as doing anything wrong. They believe they are working within the guidelines established by the stores and therefore they think they are playing by the rules. The fact is, these “customers” are damaging merchandise and it is the retailer who is required to take a loss through a significant markdown or by being forced to defect the merchandise out of stock. It is a profit loss to the store either way. Companies large and small could minimize losses by implementing a strong fraud prevention program. Using Alpha Shark Tags and ensuring they are placed in a highly visible location on merchandise coupled with a clearly stated and enforced return policy will add to a store’s profit margin.
For more information about Alpha Shark Tags contact us or call 1.770.426.0547
Retail theft is a major headache for any retailer. It may be an opportunist who takes a drink from a cooler and consumes it while shopping then drops it somewhere in the store and fails to pay for it. It could be a booster stealing thousands of dollars of merchandise then selling it on the street. Whatever the cause, all of it affects the profitability of the store. Retail theft prevention programs often focus on efforts to stop shoplifting, but neglect return fraud and the costly impact it has on businesses. While there are a myriad of tools available for deterring and preventing theft, preventing return fraud can be a daunting task. Using Alpha Shark Tags is one effective tool retailers may use to combat this activity.
Once upon a time I worked for a department store that sold higher end clothing lines. We had dye tags and electronic article surveillance tags on merchandise that assisted in theft deterrence, but were of little value in preventing return fraud. Since the merchandise was purchased through the point of sale the tags were properly removed or deactivated. I wish we had the Alpha Shark Tag available to us at that time. The Alpha Shark Tag is a small, brightly colored, plastic tag that is placed on clothing by the retailer. It is the purchaser who is required to remove it by cutting it off once they leave the store. It is a one-time use product and by forcing the customer to cut off the device after purchase the possibility of replacing it on the clothing and returning it is removed. The buyer can take it home, and try the merchandise on again or give it as a gift with the tag still intact. If the buyer or the gift recipient wants to return the item the tag should be required to be in place. Since the Alpha Shark Tag is so bright and visible, when properly attached to a garment, the attire cannot be worn with the intent of returning it later.
I recall the complaints of the sales associates and area managers who were responsible for processing returns of soft lines items. Often they suspected a dress or an outfit had been worn once or twice, but due to return policies of the company they were required to take the merchandise back. Now the issue was not that the item had been worn, it goes without saying there will be legitimate returns of clothing that may not fit, or simply are not a style someone prefers. The merchandise returns that angered the associates were the pieces of merchandise that smelled of perfume, cigarette smoke or other odors. The associates were well aware of items that had been purchased and worn to a party then refunded. My future wife worked in this store and educated me on what the perpetrators of the return fraud were doing. Depending on the placement of the merchandise tags, those committing the fraud would tuck the tag back in the clothing and tape it up inside the item. They might also carefully slide the tags off of the plastic attachment and when they were done wearing the item they would slip the tags back on, bring in the garment with the receipt and get their money back. I learned a lot from my wife and the other sales associates, but my hands were tied. As long as the “customer” followed the store policies, they were going to get their refund.
It is a fact that many who commit return fraud do not see themselves as doing anything wrong. They believe they are working within the guidelines established by the stores and therefore they think they are playing by the rules. The fact is, these “customers” are damaging merchandise and it is the retailer who is required to take a loss through a significant markdown or by being forced to defect the merchandise out of stock. It is a profit loss to the store either way. Companies large and small could minimize losses by implementing a strong fraud prevention program. Using Alpha Shark Tags and ensuring they are placed in a highly visible location on merchandise coupled with a clearly stated and enforced return policy will add to a store’s profit margin.
For more information about Alpha Shark Tags contact us or call 1.770.426.0547
Does you bar or nightclub offer bottle service with the addition of the EASy Bottle? If not, let me venture to describe how an average night goes at your place. First of all, your bottle service tables may or may not get booked up. People have heard the rumors about your business and they aren’t comfortable coming there. Nothing ruins a good night out like gunfire. Bottle service is supposed to offer the patrons an upscale experience, but the drinks are poured a little too freely there too, and there are a lot of fights that get reported. The members of the party are generally expected to split the cost of those top shelf liquors they are required to buy, but there’s the one guy that keeps making his drinks a lot stronger than the others. He is feeling ten foot tall and bulletproof, and of course, he’s got a big mouth to go with that feeling. And of course, this doesn’t even account for the times that minors have been a part of the group and gotten drinks there. Of course, so far those are just rumors, but this will definitely keep away some valuable business. I would never go to a bar where they had got caught serving drinks to people under the legal age.
That’s all a lot of hypothetical problems, but when you have a group of people that have several bottles of the strong stuff, you are asking for it if you have no control of the situation. With the EASy bottle system in use at your bar or nightclub, you are putting your business back in control. The bottle locks keep the bottles secured until the hostess opens them. She can easily and quickly open the bottles with one hand, and never keep the customers waiting. All the drinks will be poured consistently and evenly so you don’t have that one guy with super strong mixes, and the other people being forced to settle for weak ones. If they are all there to have a good time, and split the cost, then they all have the right to enjoy themselves. This can significantly reduce the threat of fights out on the dance floor and out in the parking lot. If the hostess sees that someone has had too much, she can cut them off. And it takes the threat of having a minor come in undetected right off the table. If the hostess sees someone new come into the party, she can immediately card him or her and ensure your business is following the law. If you were in the latter situation, you could be held responsible for any damages caused if they get into a wreck or any other trouble.
Bottle service with EASy bottle has another perk you may not have thought about. If you have bottle locks in place, you reduce the risk of losing bottles to dishonest employees as well. Attach them to all your bottles in your storage room, and you’ve got a winning situation back there. It’s like you’ve hired a whole extra security crew without having to pay them or give them benefits. You get all the benefits instead. You see, if your bottles are locked shut, they are useless to a thief. The bottle will break before that bottle lock comes off. Keep the magnet keys protected at all times, and you won’t have to worry about the free booze parties that happen way too often after a nightclub closes and the manager has gone home. Bottle locks keep your valuable extra inventory on the shelves until you need them, and there’s no way for someone to just sneak in and have a drink on the house during their break. This also stops dishonest bartenders from watering down your bottles.
Keep the trust of your community, give them a good safe time, and protect your inventory. You can’t lose with bottle service and the EASy bottle.
For more information on Bottle Service, contact us or call 1.770.426.0547 or Bottle-services.net
CHECKPOINT TAGS HELP BUST ORC RING
I’ve said it once and I’ll say it again now; return fraud is one of the biggest fraud schemes affecting retailers right now. This fraud can occur in so many different ways, it’s almost overwhelming to the stores. Individuals can simply walk into the store and grab merchandise; if a cashier isn’t paying attention, a refund can be given to that individual. Thieves will also steal from one store, then immediately drive to the next closest store to return the stolen goods for store credit. Even more brazen thieves will steal the product from the store, go out to their car and then immediately return to that very same store and get a refund for the merchandise THEY JUST STOLE!. It’s a huge issue in my stores that we combat every single day. The only thing that slows down the thieves is our Checkpoint Tags; and that’s been challenged lately as well.
My stores carry a plethora of high end apparel items, so making sure we have security tags on clothes is of the utmost importance. For a long time, this was helping us battle the shoplifters. I once had a large group making fraudulent refunds. It seemed like every day a different person was returning merchandise to one of my stores. It was frustrating as the product that they were targeting was secured with Checkpoint tags. I couldn’t figure out where they were getting the product from and I didn’t understand how my physical security measures weren’t being more effective. Until a very attentive cashier broke the case for me.
At this point, I had identified 10 individuals whom were making large dollar returns on a specific pair of athletic pants. Since it takes almost no effort to place security tags on clothes, I made sure to instruct all my stores to tag these pants. They were a bit under the normal threshold for tagging, but we were getting slammed with theft. Weeks went by and I kept seeing return after return from this same group. It would always be a different suspect, but they would all get out of the same, very distinctive vehicle (think small car with 37” rims), so I knew they were all connected. What I didn’t know was how they were connected and how they were beating me.
One afternoon, I received a phone call from a cashier at one of my stores. This cashier had just processed another return for someone from this group and she noticed something was amiss. After the suspect left the store, the cashier very carefully inspected the clothing. She noticed that there was a small hole in the fabric where the Checkpoint tag should’ve been. Since the fabric was stretch-fit, it was very difficult to see. Without realizing it, this cashier helped me to bust this case wide open!
After that phone call, I started calling managers at every store that had recently been targeted. I made them pull any recent returns and inspect them for damage. Sure enough there were holes in every pair in the exact position where the hard tags were once placed. This group had been cutting a very small hole in the stretchy fabric. They were then able to stretch the hole over the hard tag, causing only minimal damage. It was almost impossible to see, but the evidence was there. Sometimes, putting security tags on clothes simply isn’t enough.
After a few more weeks, the long arm of the law finally caught up with this group. We found out that the ring leader was a heroin dealer, and the owner of that classy looking car. He would get users to steal and make the refunds for him in order to pay for the drug. He would then sell the store credits to local pawnshops. Detectives were able to make a very strong case against him by using testimony from several of those caught. Not only did he go down for conspiracy, organized retail crime and felony shoplifting, when he was apprehended, he had a large amount of heroin in his possession. He was eventually sentenced to life in prison. (At the time, my state had a mandatory life sentence for anyone convicted of distributing heroin). All of that from something as simple as a cashier noticing a hole where a Checkpoint Tag should’ve been.
For more information Clothing Security, contact us or call 1.770.426.0547
I’ve said it once and I’ll say it again now; return fraud is one of the biggest fraud schemes affecting retailers right now. This fraud can occur in so many different ways, it’s almost overwhelming to the stores. Individuals can simply walk into the store and grab merchandise; if a cashier isn’t paying attention, a refund can be given to that individual. Thieves will also steal from one store, then immediately drive to the next closest store to return the stolen goods for store credit. Even more brazen thieves will steal the product from the store, go out to their car and then immediately return to that very same store and get a refund for the merchandise THEY JUST STOLE!. It’s a huge issue in my stores that we combat every single day. The only thing that slows down the thieves is our Checkpoint Tags; and that’s been challenged lately as well.
My stores carry a plethora of high end apparel items, so making sure we have security tags on clothes is of the utmost importance. For a long time, this was helping us battle the shoplifters. I once had a large group making fraudulent refunds. It seemed like every day a different person was returning merchandise to one of my stores. It was frustrating as the product that they were targeting was secured with Checkpoint tags. I couldn’t figure out where they were getting the product from and I didn’t understand how my physical security measures weren’t being more effective. Until a very attentive cashier broke the case for me.
At this point, I had identified 10 individuals whom were making large dollar returns on a specific pair of athletic pants. Since it takes almost no effort to place security tags on clothes, I made sure to instruct all my stores to tag these pants. They were a bit under the normal threshold for tagging, but we were getting slammed with theft. Weeks went by and I kept seeing return after return from this same group. It would always be a different suspect, but they would all get out of the same, very distinctive vehicle (think small car with 37” rims), so I knew they were all connected. What I didn’t know was how they were connected and how they were beating me.
One afternoon, I received a phone call from a cashier at one of my stores. This cashier had just processed another return for someone from this group and she noticed something was amiss. After the suspect left the store, the cashier very carefully inspected the clothing. She noticed that there was a small hole in the fabric where the Checkpoint tag should’ve been. Since the fabric was stretch-fit, it was very difficult to see. Without realizing it, this cashier helped me to bust this case wide open!
After that phone call, I started calling managers at every store that had recently been targeted. I made them pull any recent returns and inspect them for damage. Sure enough there were holes in every pair in the exact position where the hard tags were once placed. This group had been cutting a very small hole in the stretchy fabric. They were then able to stretch the hole over the hard tag, causing only minimal damage. It was almost impossible to see, but the evidence was there. Sometimes, putting security tags on clothes simply isn’t enough.
After a few more weeks, the long arm of the law finally caught up with this group. We found out that the ring leader was a heroin dealer, and the owner of that classy looking car. He would get users to steal and make the refunds for him in order to pay for the drug. He would then sell the store credits to local pawnshops. Detectives were able to make a very strong case against him by using testimony from several of those caught. Not only did he go down for conspiracy, organized retail crime and felony shoplifting, when he was apprehended, he had a large amount of heroin in his possession. He was eventually sentenced to life in prison. (At the time, my state had a mandatory life sentence for anyone convicted of distributing heroin). All of that from something as simple as a cashier noticing a hole where a Checkpoint Tag should’ve been.
For more information Clothing Security, contact us or call 1.770.426.0547
