Managing Fraud in a Retail Pharmacy Presented by Odukoya Kawthar Bolajoko (Mrs) Co Founder Vanguard Pharmacy Ltd @ Panel 7 Sheraton Hotels & Towers Ikeja
Retail Pharmacy & Fraud-Definition Fraud is deliberate deception to secure unfair or unlawful gain Fraud Swindle, deceit, cheating, forgery, embezzlement and so on
Retail Pharmacy & Fraud Fraud occurs in retail store (including pharmacies) in every part of the globe
Retail Pharmacy & Fraud -US Data The US Chamber of commerce reports that about 50Billion Dollars is lost annually to employee theft and fraud. Employee theft is the fastest growing in the USA. 75% of all employee steal at least once, Half of the 75% (37.5%) steal more than once Source: Association of Certified Fraud Examiners, Easy Small Business HR, Institute for Corporate Productivity, Jack L. Hayes International, Inc. Research Date: 9.18.2012
Retail Crime in the UK 2012-2013 Customer theft Employee theft and Fraud 2,206 M 1,681 M Supplier/warehouse fraud 246M Card fraud Robbery/burglary Criminal Damage 85 M 120 M 81 M Cyberfraud 280M Crime Subtotal Security and loss prevention Crime-related Costs Total 4,699M 995 M 5,694M
Retail Pharmacy & Fraud
Retail Pharmacy & Fraud Retail stores, independent of size or location can easily have their products wiped out by retail fraud. Many of these activities are small fraudulent transactions that are easy to overlook, but they add up to cumulative loses.
Retail Pharmacy & Fraud - Customers Pilferage (shop lifting) Return receipt fraud Credit facility leading to bad loan Counterfeit money POS transaction swindle
Retail Pharmacy & Fraud- Suppliers Supply of Counterfeit products Supply of incomplete products Deliberate calculation error on invoice Deliberate supply of short dated products without information
Retail Pharmacy & Fraud- Staff The most threat to retail business all over the world comes from within (poorly paid sales assistants and the most ambition ridden supervisors to the rather smart purchasing officers Pilferage of stocks Pilferage of money Fraudulent coupons/vouchers Inflating prices of stock purchased Bringing in stocks to sell instead of owners stock
Retail Pharmacy & Fraud- Prevention of Customers Limit /avoid credit sales Use of CCTV camera Destroy counterfeit money Empowering the staff Arrest / prosecute shoplifter
Retail Pharmacy & Fraud- Prevention of Supplier Buy from reputable companies, distributors, wholesalers Proper checking of invoices for product quantities, expiry date, batch number etc Proper posting / documentation of received invoice
Retail Pharmacy & Fraud- Prevention of Staff 1 Proper orientation/induction of staff at the point of entry Availability of lower denominations of change Sustainable processes of operations must be in place (trust is good but control is better) Invest in technology (Technology magnifies either efficiency or inefficiency Bill Gate ) Have someone at the door to check people as they leave
Retail Pharmacy & Fraud- Prevention of Staff 2 Think like a thief Review / update processes constantly or as situation arise Maintain good working relationship with your staff Invest heavily in the staff (Human resource) they are the greatest asset Involve the police even if you don t want to prosecute in case of fraud Unconditional dismissal of an employee for the slightest may deter others
Practical case study Share your most devastating experience and explain what your company did to prevent future occurrence Take at least 1 Example from the participant
Retail Pharmacy & Fraud- Conclusion 1 There is no fool proof way to prevent fraud from a Retail Store (pharmacy), even major outlets in the most advance nations can t eliminate as evidence by the data given earlier it but can be managed to a bearable limit
Retail Pharmacy & Fraud- Conclusion Final If Entrepreneurs and Owner Managers work judiciously on the business (not in the business ) and not see Retail Pharmacy as a part time job or a place to pass time That can mark the beginning of curtailing Retail Pharmacy Fraud