With last year’s Target, Neiman Marcus and Michaels, credit card breach, online security is becoming increasingly more important. Hopefully if banks and credit cards make the 8 Billion dollar investment, we too will have microchips embedded in our credit cards. That said, as we are becoming a cashless society and as retailers who take credit cards, fraud is up and it’s time to take preventive measures. Experts say that with online purchasing going up, so will credit card fraud. At the NRF Loss Prevention Conference and Expo, the second annual U.S. Retail Fraud Survey 2014 reported a 11% increase in credit card fraud. They also reported that online sales are an average of 6% and believe that number will grow to 15% of sales. Of course, how do you pay for product online: VISA, MasterCard, PayPal or Debit Card.
Key Facts of the Survey:
- $57 billion loss due to credit card fraud.
- .7% to 2.5% of sales are due to shrinkage. Shrinkage rates vary by type of retailer.
- 38% of loss is due to employee theft. (See post Employee Theft and Employee Embezzlement)
- 24% of loss is due to cash theft
- 21% of loss due to administration and bookkeeping errors.
- 59% of loss due to fraudulent use of credit cards.
- .25% of fraud is return fraud
- 61% of the average loss prevention team works in stores and 39% in headquarters.
Fraud effects each of us, even if your credit card company covers you. Increased cost of goods is the direct results of any type of theft. What can you do?
- Follow Procedures: Make sure that each employee know the procedures and put the procedures in the employee handbook. Be suspicious of the card does not swipe.
- Check signature and picture if there is one.
- Check expiration date
- Be wary and learn the signs of fraudulent behavior.
- Double check your bookkeeping.
- If not sure, call and get an authorization over the phone.
- Err on the part of safety.