Skimming Some off the Top

Randy was a manager of a small sporting goods store that always turned a tidy profit. He was a perfect employee — a little too perfect. He thought no one would notice that he was skimming from the cash register. Learn how to catch a fraudster in this classic scheme and how to set up internal controls so it never has to happen.

Sam and Karen owned a small chain of about 20 sporting goods stores on the East Coast of the U.S. They acquired their latest store in a small suburban town of 40,000 residents. The market base of this successful little store grossed $750,000 yearly in total sales. Many of its customers included military personnel from a nearby base, so a major part of the store’s market continually changed. 

The manager of the newly acquired store, Randy, was a model, stable employee with a strong work ethic. His employment history was impeccable, he was dependable and generally pleasant, and he was knowledgeable about the products. 

Sam and Karen believed that the store would continue to be viable. However, after about a year, the store’s profit appeared to be slipping. Sales remained strong, but repair and/or installation of sporting goods were decreasing.