Retailers often deal with large amounts of cash. But, in today’s economic climate, handling large quantities of cash can also mean facing growing security risks. From diversion to smash-and-grab attacks, criminals are deploying a range of tactics to illegally obtain cash where they deem it most vulnerable.
Fortunately, retailers can take proactive measures to safeguard their money and protect employees. In this article, we’ll explore the rising retail cash theft trends and actionable loss prevention strategies.
Retail cash theft is spiking nationwide. Security experts pin this trend on the rising value of cash during the current inflationary period affecting the entire U.S. With cash worth more, criminals are aggressively targeting retailers’ nightly deposits, in-store safes, registers, transport vehicles, and employees.
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Tactics like “diversion theft” and “smash-and-grab” attacks are on the uptick. Diversion tactics aim to distract employees before stealthily stealing cash – typically outside the store on the way to or from a bank drop. Diversions can take any number of forms including a friendly chat, asking for directions, or even a physical diversion such as tripping or having some other accident. The idea is to keep the employee from locking car doors or to pull employee's attention away from the cash.
Smash-and-grabs are far more brutal and usually wait for a store to be closed or a car with cash to be left unattended. Then, the criminals will use brute force, breaching windows or doors to gain entry and retrieve their reward.
Another tactic growing in popularity is playing the “good Samaritan.” Criminals will use devices to poke slow leaking holes in tires, then pose as a kind citizen who offers to help. Meanwhile, an accomplice steals cash out of the incapacitated vehicle. In other instances, criminals will return lost cash to employees with the aim of scoping out security practices and gaining trust for future thefts.
Retailers can take proactive measures to safeguard their cash from rising theft. Steps like increasing in-store security presence and installing reinforced doors and windows to fortify stores against smash-and-grab attacks.
Top-quality safes, regular cash pickups, and robust cash recycling are critical for reducing in-store cash volumes. Utilizing data-driven cash management platforms like Cash Depot’s BANK IN A BOX enables retailers to quickly and easily deposit and track store funds while recycling money out-of-store to decrease at-risk cash volumes.
In-store deposited money is automatically counted, verified, and recorded in a real-time, web-based backend reporting system. Funds are then direct-deposited same-day/next-day into store bank accounts – effectively eliminating theft risks from register to bank.
Retailers that aren’t looking to employ new cash recycling technologies like BANK IN A BOX need to regularly evaluate the safety of their cash transportation processes. Safely transporting cash from stores to banks or cash processing centers requires vigilant security measures. Criminals often hijack or ambush retailer cash transit vehicles, making secure transportation critical.
This is why armored carriers operate reinforced vehicles for added physical security while also employing GPS tracking to enable real-time route monitoring. However, varying collection times and routes further reduces any predictability that criminals can exploit.
With diversion theft, retailers must vet transport personnel and implement robust chain-of-custody protocols around cash handling. New tactics, such as dual custody (requiring two employees to handle cash at the same time) helps keep staff accountable and prevent internal fraud.
Well-trained employees are a powerful theft deterrent. Retailers should establish protocols like verifying IDs for cash pickups and reporting suspicious activities. This creates an environment hostile to criminal activity.
Other smart steps include prohibiting cash drawer access codes from being shared between employees and enforcing dual custody for register cash counts. Cash management analytics and reporting can also help identify suspicious cash transaction patterns indicative of employee theft.
The surge in retail cash theft necessitates proactive prevention tactics. While no solution is 100% foolproof, layers of physical and cyber security fortify stores, transport, and employees. With diversion, smash-and-grab, and internal fraud risks on the rise, retailers must remain vigilant in securing their cash.