In retail, theft doesn’t always come from outside the business. While shoplifters might be the first culprits that spring to mind, the reality is that employee theft—including theft by cashiers—can be just as damaging, if not more. In this blog post, we’ll explore how both types of theft occur, what’s commonly stolen, and which tends to result in the greatest losses.

Understanding Customer Theft

1. Concealment
   The classic form of shoplifting involves hiding merchandise in clothing, bags, purses, or strollers. Thieves typically target items that are small but valuable, such as cosmetics or electronic accessories.
   
   

2. Price Tag Switching
   Some shoplifters swap labels on expensive products with those from cheaper items. This can trick the checkout system into charging a lower price than intended.
   
   

3. Organized Retail Theft
   In more coordinated scenarios, a group may work together: one or two members distract employees while the rest quickly grab items. This can result in high-value theft in a short span of time.
   
   

4. Return & Receipt Fraud
   Certain thieves bring stolen merchandise to the returns counter without proof of purchase, or they use counterfeit receipts to claim refunds or store credits.

Understanding Cashier Theft

1. Sweethearting
   A cashier “helps” friends or family by not scanning certain items or heavily discounting them—often off the record.
   
   

2. Cash Skimming
   This subtle form of theft involves pocketing small amounts of money from the register. Over time, these small sums can accumulate into large losses.
   
   

3. Fake Returns or Refunds
   A cashier might issue refunds for items that were never actually sold or returned, then keep the refunded cash or store credits.
   
   

4. Underringing
   In this scenario, the cashier rings up items at lower prices than they actually cost or charges for fewer items than the customer is taking, pocketing the difference or favoring someone they know.

Which Causes Greater Losses?

Ultimately, theft can come from multiple angles—cashiers exploiting the system from within or opportunistic customers pilfering goods. While both erode profits, insider theft often has the potential for larger, more sustained losses. Understanding the specific methods used by each group can help retailers better recognize where the biggest vulnerabilities lie. Armed with that knowledge, businesses can prioritize their efforts and resources to address the type of theft that poses the greatest risk to their bottom line.