Curious on opinions on what to do. I do occasionally still run across this employee in person in the area. This employee did quit about a year ago and was not let go, they also did have good peer and management reviews which makes this really surprising. They had a high level of trust given to them.

Why they were found. During an annual review of loyalty card usage and data mining, a loyalty card was used 950 times (150 of those times was buying something, 800 of those times was adding the loyalty card # to a a purchase). The next most used was 50, an actual regular. So you simply look up who owns the card and it’s the ex employee.

It’s clear during their shifts as a cashier they would scan their loyalty card to acquire points (loyalty members get a percentage back in points and those points can be redeemed during a future transaction as cash) and then they use those points to buy inventory with the employee discount. We verified no internal errors with the POS data company and they agree it looks like fraud.

The total cash amount redeemed is around $1250, however we still need to audit receipts for more pricing antics. We did track employee discount codes used, they used that 150 times, while the average is about 15-20. The total value of inventory then could be $1500-1600 before employee discount codes. However, after a receipt audit, the total could be even higher. A manager would have checked out this person and verified item pricing so I don’t think I’ll see anything, however after asking the manager their response was “they always seemed to have a few points to spend”. Which isn’t abnormal, but now we know why.

This amount is significant to us and also throws off the data we’ve looked at all year. Not only that but a cashier’s job is to offer the free loyalty program to customers and this employee worked on our most busiest days. Which means about 750-800 transactions resulted in no sign ups (this is about 50% of all transaction they handled). Indirectly damaging us further.

The system does warn us automatically if we give away too many loyalty points in a day but it does not warn us of too many daily transactions on the same card. Don’t ask me why.

My plan of action is to simply email the employee after the receipt audit and see about a repayment plan. Because in our state, the amount stolen is considered grand larceny. This person is young, but an adult. I do believe they knew what they were doing at the scale they were doing it at.