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How an Interface Stops Theft
The cash register interface as an overt security system can deter theft by the fear of being caught along with a permanent record—this happens when clerks and customers know the interface is in place and how it works. Using the system as a covert (hidden system) will not prevent the theft, but will record the event for later prosecution.
In either case, the register interface system will allow the recording of all transactions for later review for such thefts as sweet-hearting, substitute scanning, no rings, short changing, short rings, and pilfering. Read below for the definitions of some common POS thefts.
Types of POS Theft
Sweet-hearting:
This requires an accomplice or “sweetheart” that loads up expensive items for check out. The clerk then either does not ring up certain items or rings up the items at a lower price than marked. This type of loss shows up later as inventory shrink.
Substitute Scanning:
This is usually a type of sweet-hearting that is done in stores that have scanning systems. The clerk fixes a scan tag of a low-value item on their palm. When an item is scanned, the palm tag is read instead of the actual item. Substitute scanning can also be done without a sweetheart. The correct value of the sale is collected from the customer and later pulled from the register near the end of the shift. This type of theft, if viewed by a conventional camera system, looks like the clerk rang up the sale correctly, but with the text overlay, the manager can instantly see the substitute scan.
No Rings:
This is where a clerk rings nothing up and makes change from an open cash drawer or from the top of the change drawer.
Short Changing:
This is where the clerk is actually cheating the customer by giving incorrect change.
Short Rings:
This is where a clerk rings up an item at a price that is much lower than the actual value and either immediately pockets the extra money or pulls it from the register later. Usually the clerk does not complete the sale until the customer leaves. This is because if the customer asks for a receipt or challenges the price, the clerk can cancel the entry and ring up the correction.
Pilfering:
Is taking money directly from the register and leaving the register short. This usually occurs when more than one clerk uses the same cash drawer.
No Sales:
This is the most common exception. Some legitimate uses are making change or correcting change mistakes. The no sale is always a questionable transaction. Towards the end of a shift, whether the clerk was doing short rings or any kind of pilfering will have to remove the accumulated money for that shift. All No Sales should be exceptions, and all in the last hour of a shift should be reviewed.
Voids:
The void is used after the customer has left and the same transaction has been voided. The money is still in the register and will have to be removed either then or towards the end of the shift.
Returns/Refunds:
This is usually questionable when no exchange is being made and cash is paid out. Items are pulled from inventory and fictitious refunds are given to the clerk or a sweetheart.
Cancels:
This is where a transaction is partially rung up. The clerk asks the customer for the money and if the customer does not ask for a receipt and leaves, the clerk cancels the sale. If the customer wants a receipt then the clerk finishes the transactions and gives the receipt.
Purchases or Payouts:
This is usually in small convenience stores when they receive papers, or other non account deliveries. The clerk rings a payout and gives the vendor cash. The clerk can be in cahoots with the vendor and overpay and later collect or simply make the pay out for more and keep the difference.
Exception Reporting
As described above, most of these theft practices require the ringing up of substitute or low value items or opening the drawer without a normal sale. These types of register transactions are called exceptions. A cash register interface can electronically watch for these types of questionable transactions and give a signal when detected. This signal can be in the form of an on-screen flag or alarm a VCR for later search or automatically turn on the cameras watching that register and clerk. The most common type of exceptions monitored are no sale, voids, returns, refunds, cancels, purchases, payouts, low-value sales, and high-value sales.
Pre-Exceptions or Post-Exceptions
There are two schools of thought on exception monitoring. The pre-exception technique is usually for low-cost situations and is most common. This is where the exception is programmed into the text inserter and it gives an alarm when the exception is detected.
The post-exception systems record all the data from all registers in an electronic file. They also will store either only the exceptions when using Pan/Tilt cameras or all the video data with fixed cameras and multiplexers from all the registers. At a later date the store owner can search the database for any type of exception he may think of later. He will then have to go to the tape at the time and watch the exception. Some sophisticated POS systems actually match this database with the correct piece of video automatically.
How Cash Register Interfacing Works
The cash register business is a unique industry in itself. There are no industry standards. In fact, cash register companies go out of their way to make hardware different. This is even true within a company so older equipment and accessories are not compatible with the newer models. It is this fundamental fact that makes cash register interfacing such a complicated issue. One interface box can only connect to an extremely limited number of registers. Converter boxes are needed to translate from one format to another. Every model register has unique features that enhance the interface or cause major problems when dealing with loss prevention
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