Even if you run your business successfully, you can’t negate the possibility of a situation like theft and fraud. Sometimes, you may face a situation like retail fraud, shoplifting, internal theft, or a similar situation. It not only makes an adverse impact on the growth of your business but also lets you bear the heavy financial loss. According to the latest report, 21% of employee fraud cases registered in the year 2021 cause a heavy financial loss of over $1 million.
To prevent it, you need to have a point of sale (POS) software. Today, a POS system is much more than just being a digital cash register. Designed with advanced technologies and cutting-edge features, this software lets businesses have expeditious security and thus, it improves their customer service.
Let’s find out how POS software ensures the higher security of your business by minimizing fraud cases.
- Protect Inventory Theft
While talking about how POS software helps prevent fraud, it’s good to start from its capability of letting you keep a close eye on your inventory. It not only gives you details about the available products in your inventory but also the items that you sell or purchase. In case, any products you employees or others steal, it gives you the exact details.
Apart from this, automated inventory uses bar-coded items in the store. With the help of a central database, you get details about every item stored and also the numbers of products that also exist in the store. So, it helps minimize internal theft cases.
All you need to do is to check your business inventory regularly with the use of POS reports. You need to compare your actual inventory report with automated reports and make sure they both match up.
- Analyze Return Data
It’s another way how you can use your point of sale system for fraud prevention. With POS software, you can get insight into return data to get information regarding the possibility of fraud trends. It lets you analyze if the fraud trends are increasing in your store.
While analyzing return stats, if you find your return rate witnessed within a couple of years and it’s tough to resell those of returned merchandise, it’s a clear indication that you may have to face difficulty.
- Prevent Credit Card Fraud
As mentioned, we all are aware of the growing cases of credit card fraud that take place every day. It not only affects your company’s market reputation but also impacts your credibility. As a result, you may lose your existing customer base that further impacts your sales and revenue generation.
To tackle credit card fraud prevention and earn the confidence of customers, you need to use EVM compliant POS system. You might be familiar with EVM, which is a chip that facilitates transactions through cards while ensuring higher security.
Based on modern technology, it prevents the possibility of cloning the information related to credit or debit cards, and thus, it minimizes the cases of fraud transactions. So, getting a POS system that supports the EVM chip is good for your business and ensures its fast growth.
- Prevent Internal Theft
According to the latest data, 95% of businesses already witnessed employee theft and suffered a heavy loss of approximately $5.4 million. It reflects that how internal theft creates an obstacle in a company’s growth. A good entrepreneur never compromises with it and takes appropriate measures to avert the situation like internal theft.
If you find any situation like this, it’s crucial to create a full-proof strategy to avert it. You can organize an internal audit that enables you to combat the theft in your retail store. It’s indeed the best idea to leverage the power of point of sale softwares that enables you to get a complete report periodically. It helps you analyze the sales that your staff makes.
It gives you a wonderful opportunity when it comes to determining those transactions that are suspected. Going through these helps you find out every detail about the suspected transaction in terms of who made it, when the transaction was done, a period of transaction, etc.