| First let's start by the different ways that | | | | difficult to detect. This scenario is most prevalent |
| employees can steal: | | | | where there are not enough checks and balances |
| - Skimming off the top | | | | in the system. For example, if the employee |
| - Gaming the system | | | | making the loans are also collecting on loans that |
| - Making fake loans / Identity theft | | | | go bad, it's almost impossible to catch this person. |
| - Robbing a store | | | | 4. Robbing a store. A store robbery is a terrible |
| Let's attack these one at at time. | | | | thing. Not only does it scare employees and cost |
| | | | the company time and money, but it also hurts |
| 1. Skimming off the top: Pulling money out of a | | | | company morale. Many robberies are either inside |
| cash drawer and putting it in their pocket. This is | | | | jobs or robberies that result from employees |
| the easiest type of theft to catch. This is a result | | | | talking about store security and procedures to |
| of weak internal controls by the company. For | | | | friends and acquaintances. Never allowing |
| example, telling your employee how much money | | | | customers behind the counter is a good idea. |
| they should have, gives them something to work | | | | Some customers will try and use your bathroom, |
| with. With this in mind, balancing the cash on a | | | | so they can see if there is a safe or alarm |
| *daily basis* is the best way to prevent skimming | | | | system in place. |
| from the top. | | | | Let's face it, most theft comes from inside an |
| 2. Gaming the system: Using non-cash | | | | organization. Having the right internal controls and |
| transactions, like discounts, non-cash payments | | | | software is a good start. |
| like ACH or Deposits or writing off an account, as | | | | After not getting customers through the door, |
| a substitute for a cash payment. This is an easy | | | | preventing theft should be the second highest |
| method for catching people because it should be | | | | priority on an owners mind. Don't obsess, just put |
| obvious in the reports. Again, theft via this | | | | some time in and more importantly follow up. |
| method can usually be attributed to someone not | | | | If you want to attract robbers, the biggest |
| doing their job and looking through reports. Some | | | | mistake is handing out large amounts of cash to a |
| software systems do not allow discount | | | | borrower. Once customer learn that there are |
| transactions and force the store personnel to call | | | | large amounts of physical cash on the premises, it |
| a higher level user to perform the discount. Since | | | | makes your company a target. By not keeping |
| most payday loan software systems id and time | | | | large amounts of money you lower the chances |
| stamp each transaction, this is a risky method for | | | | of a store being robbed. |
| the thief to use. Which payday loan software | | | | Writing checks to customers or an ACH for large |
| does the best job is debatable. | | | | amounts of borrowed money is a good |
| 3. Identity theft: Making fake loans. Imagine the | | | | alternative. Other ideas is to give part of the loan |
| scenario, your store is performing great and | | | | as cash and the remaining as a check ($100 cash |
| numbers are up across the board. This is a red | | | | and a $400 check). Also, the use of stickers and |
| flag that most owners want to ignore. Fake loans | | | | signs describing these policies on the door and |
| are probably the most costly and common fraud | | | | windows is helpful. |
| because there is no limit to how much an | | | | I've seen signs stating that the safe is time |
| employee can steal before they're caught. It can | | | | locked. I think even talking about safes is a bad |
| also be difficult to prove sometimes. Fake loans | | | | idea because it creates the idea that there is lots |
| are typically discovered via an audit or when the | | | | of money inside the store. This situation can lead |
| file gets handed over to a collections person who | | | | to armed robbers holding up a store after closing |
| speaks to a confused person claiming to never | | | | time. Robbers will wait 25 minutes, if they know |
| have taken a loan. Sometimes, there are multiple | | | | there is a big score involved. |
| employees involved, which makes it even more | | | | |