What is the largest source of business losses? Internal shrinkage, damages, or theft?

Most of us think that theft is the biggest concern when it comes to losses. If you think this, then consider this. Who has the most access to your inventory, money, cash register, tool, and is most comfortable in your store. The guy walking in. A good source of this is to look at major retailers and casinos. Where do they concentrate their sources (i.e. cameras) on? Such establishments focus at a ratio of 1 to 4 on their employees. In many major retailer, employees have separate entrances and exits. The security personal and apparatus spend most of their resources monitoring employees.
According to the Certified Fraud Examiners (CFEs) survey conducted between 2008 and 2009 found that the median loss to a US business from employee fraud is a whopping $105,000. That can mean the difference between and profitable and a negative business. The report was titled the 2010 Report to the Nations on Occupational Fraud & Abuse and studied over 1,800 organizations. The study reported that the majority of the fraud was committed by lower-level employees costing the company on average $50,000. You can read the entire 85-page for yourself.
In short, the largest source of shrinkage (loss of inventory/tools) or loss of funds are employees. Over 25 percent of employees steel and if not stopped become habitual. This is one of the main reasons POS & CCTV systems immediately increase your bottom line.  The three top source of losses include:

  1. Employee fraud, theft, and scams (Coming soon: What are the types of scams employees use with POS systems?)
  2. Theft from outside.
  3. Damages.

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