If you’re a retailer, you’ll understand the very real consequences of theft and fraud all too well.
When it comes to getting what you’re owed for your products, you’re likely to be facing unique challenges, not least because your items are both highly desirable and, in many cases, relatively easy to conceal.
Recent research has also unearthed a worrying trend for false claims here in the UK. According to a survey from Onepoll/Signifyd (analysed here), nearly a third of internet shoppers admitted to making false damage and/or refund claims in order to retain an item without having to pay for it. And, as this article from The Daily Mail outlines, scammers are pulling similar tricks in-store – and as many as one in seven returns online or offline can be considered fraudulent!
So, whether you’re running a small boutique or a larger chain, you’ll need to implement a series of measures to keep thefts and fake returns to a minimum and stop fraudulent behaviour from eating into your profits.
Physical measures you can take to protect your stock, your store, and your staff
There are several things you can do in-store to reduce instances of theft and fraud:
- Set up a robust CCTV network. Modern surveillance systems with high-definition cameras that are carefully placed throughout your premises can help to deter thieves and provide evidence if they do get caught. Make sure there’s adequate coverage in high-risk areas like entrances, exits, fitting rooms and areas where you host your most valuable stock.
- Design your shop’s layout to minimise blind spots and ensure clear sightlines. Maintaining an uncluttered environment allows staff to monitor the store more efficiently, and mirrors can be placed to make typically hard-to-see areas more accessible. High-value items should be placed in areas with high visibility – or, even better, behind counters.
- EAS tags can be added to merchandise quite easily. These tags trigger alarms if someone tries to leave the shop without deactivating them at the checkout. Regularly updating and maintaining these systems is crucial to ensure their effectiveness, though.
- Staff should be trained to recognise suspicious behaviour and engage with customers effectively. Education is definitely key. This training should cover how to approach suspected shoplifters safely; the importance of maintaining a visible presence on the sales floor; and techniques for preventing theft without alienating legitimate customers who have been wrongly accused or simply caught up in the chaos.
- Engaging customers can make a difference. Thieves are less likely to steal if they feel they are being watched and attended to, so a simple ‘how can I help you today?’ from your staff members can go a long way to preventing a theft from taking place! Being friendly and proactive will also enhance the overall shopping experience, so it’s a double win.
Protecting your business online
It can be harder to introduce similarly robust measures on the web – but here’s what you need to consider:
- Make sure that your online payment gateway is secure. Implementing SSL certificates, two-factor authentication, and employing reputable payment processors can help prevent online fraud. You should also regularly update your security protocols to guard against new threats – this will need looking at every few weeks or months, but your website provider will be able to provide you with more guidance here.
- Establish a failsafe order verification process to help identify potentially fraudulent transactions. This includes flagging orders with discrepancies, such as mismatched billing and shipping addresses or unusually large purchases. Automated systems can be set up to review these orders, but you might need to review orders manually in higher-risk cases.
- Implement stringent return policies to combat fake returns. This might include requiring proof of purchase, limiting the return window, and inspecting returned items rigorously. Using anti-return tags on products and applying serial numbers or RFID tags to products can help verify the authenticity of returned items.
Anti-return ribbons: a vital part of your arsenal
To stop theft and fraud from having a significant impact on your bottom line, you’re going to need to take a comprehensive and dynamic approach to loss prevention.
This means following the advice above, but also looking at new and innovative ways to better protect your products.
For example, anti-return ribbons are becoming increasingly popular among retailers when it comes to stopping fraud in its tracks – particularly in the fashion industry, which arguably suffers the most in this respect.
These ribbons are attached to clothing and other items in such a way that they cannot be removed without obvious damage to the item, so it’s impossible for the product to be returned fraudulently (particularly in cases where the tag has been removed so the clothing can be worn, then the customer has tried to get a refund on their purchase by claiming that they’ve never left the house in it!)
Anti-return ribbons are such a fantastic tool for retailers because, more than anything, they are a visible deterrent. Customers know that removing the ribbon will render the item non-returnable, so they will be less likely to wear it and try to return it. This is a practice known as ‘wardrobing’, which is unfortunately becoming all too commonplace in the industry.
Staff can see straightaway whether the anti-return ribbon has been tampered with, so they don’t need to spend a long time checking each item over. And if the anti-return ribbon is clearly not intact, the customer has no case for a dispute when they are trying to return a garment or accessory.
Learn more about why investing in anti-return ribbons is important, and how they can even be used to showcase your brand identity. Bear in mind that these ribbons are completely customisable and are available in single or doubled sided formats. They are also made from recycled materials, so they’re a sustainable option for businesses that are doing everything they can to reduce wastage.
At Hallmark, we also offer special security stickers that make these printed ribbons even more effective. We use a special metal cutter to slice the sticker, so it breaks into four pieces when a customer tries to remove it from the ribbon. There’s no way to reattach it without it being super obvious that the item has been tampered with.
Fewer fraudulent returns mean higher profits – and we’re all after those, aren’t we?
To order your bespoke, fully branded anti-return ribbons from our team, or discover how our wider range of labels and packaging can assist with your loss prevention strategy, contact us today!