subject: 4 Ways Your Point Of Sale Software Can Help You To Reduce Fraud [print this page] Fraud presents a challenge to every business owner and you need to be continually on your guard against fraudsters and scam artists. Fortunately, having a point of sale software system installed can give you added protection and minimise the likelihood of your business suffering any unnecessary loss.
The larger your business, the more it is likely to become a target for fraudulent activity, but if you have the right systems in place you can make the job of the fraudster that much more difficult.
Whilst you may never be able to completely eliminate the possibility of loss from fraud, there are a few things you can do to tighten up your security.
Limit the Spread of Information. Your point of sale software system allows you to centralise the control of pricing and you can eliminate the capacity of individual staff to negotiate or change prices at the checkout. Putting these controls in place eliminates the likelihood of staff fraud.
Make sure the inventory orders are authorised by the business owner or manager. Your point of sale software system can automatically generate an order when stock levels reach certain levels at the signing of purchase orders or cheques should only be allowed by senior staff after checking with the software system for accuracy.
Control Product Returns. In some instances of fraud, customers purchase items and then return them for a full refund soon after. In some cases the customers have used the item and returned it claiming it is faulty; whereas they never had any intention of keeping the item in the first place. One extreme example is where a food processor was used to prepare some food items for party and then returned two days later for a full refund claiming that the item was faulty. Although it is impossible to completely guard against this, some customers develop a track record for regular returns and you are completely within your rights to refuse future sales to these people. Your point of sale software can be set up to record instances of frequent returns so that customers can be identified accordingly.
The greatest control that a point of sale software system allows you to implement is instant checks on credit cards and bank account funds. Where there is insufficient funds you will be alerted instantly and the sale will not proceed. Credit card and direct debit accounts can be set up in this way so that instant approval from the bank is obtained prior to finalising the sale.
These four simple checkpoints can be implemented by any business owner to protect against the incidence of fraud. Although not an exhaustive protective mechanism, your POS software gives you an added advantage in protecting your business.
If you are experiencing an unusual amount of theft or other types of fraudulent activity, you may find it easier to pinpoint this once you have these systems in place and then consult with a security firm to add further security checks.
