How to Use your POS Software to Prevent Hidden Fraudulent Activities
Hidden fraudulent activities can take many forms, but they all share one common goal: to steal your money. Whether a thief slips a bogus bill into your wallet while you are shopping or a cyber criminal who hacks into your bank account and withdraws your funds without your permission, these criminals are determined to rob you of your hard-earned money. To protect yourself from these hidden thieves, use POS software that can help you identify and prevent fraudulent transactions.
When preventing fraudulent activities, your point-of-sale (POS) software is an important tool. POS software can help reduce the chances of card skimming and other fraudulent activity by providing logs that track every transaction and alert you if any irregularities arise. You can keep your business safe and secure from fraudsters using POS software.
A wise, one-time investment like POS can significantly increase your revenue. The National Survey Security Report states that retail fraud causes a 40% loss in overall revenues. The truth is that prevention is always preferable to treatment. Recognize the warning signs before they affect your company negatively. To learn more about how a POS helps reduce fraudulent transactions and activities, read this blog till the end.
Here are some ways to prevent hidden fraudulent activities through your POS system:
1. Limiting sales of void products
Void sales are common in the retail sector. They occur for various reasons, including purchasing the incorrect goods, selecting the wrong size, and needing more money. Customers typically ask cashiers to reverse their purchases in these circumstances. This allows cashiers to steal. They scam out the cancelled items rather than putting them back on the shelf. Even worse, retailers are unaware of these thefts happening right before them.
These transactions appear to be legal, yet they are not. To prevent employee fraud and theft, your company should deploy high-performing POS software. The cashier must barcode the void purchases and punch in their corresponding codes according to the POS programme. The consumer will get their money back when this is finished. Even who can access these void sales is restricted by the software.
2. Tracking Cash Capability
Cash still accounts for the vast majority of financial transactions, notwithstanding the increasing use of digital payments. Additionally, because of this, organizations are more susceptible to theft and misuse of funds. Your money will be as secure as homes if you use POS software. Only once a transaction has occurred may the employee open the cash drawer. Things like money laundering and fraudulent payments will soon be history.
3. Monitoring cash outlays
The cashiers or other people could use cash left in the register to make up bogus expenses. Implementing petty cash tracking will help to prevent this by ensuring that every payment is tracked in the system and checked before cash reimbursement is granted.
4. Keeping Discount Abuse at Bay
Discounts, loyalty programmes, and gift cards provide customers with unique experiences. However, cashiers frequently provide workers, customers, and relatives unofficial discounts and freebies. In retail lingo, this tactic is referred to as sweethearting.
How does the POS software prevent this, then?
When tampering with discounts and vouchers, the POS software sends an immediate alert through OTP (one-time passwords) to retail managers. Additionally, it gives them in-depth analyses of the reductions offered.
5. Use marketing engines
Have you ever questioned why big-box retailers don’t provide discounts, preferring to hold sales instead, during which all prices are dropped? This is a crucial tactic to restrict random discounts to chosen clients. Additionally, since more people walk in during every sale period, this also increases sales.
6. Increasing the Efficiency of Inventory Management
Did you realize that 35% of annual losses are attributable to inventory theft, according to a Shopify report? This necessitates improved inventory control. Utilize the strength of well-made POS software for sophisticated inventory tracking. It keeps track of the business’s incoming and outgoing inventory. These platforms also display the location and storage history of the stock.
Most crucially, such POS software or retail applications will automatically lock inventory movement during a stock audit; as a result, you may be confident in the base value of inventory when performing the physical audit. Businesses need to use such inventory management techniques to manage their lists better.
The POS software is much better because it provides real-time inventory tracking and information about your best-selling and cold-weather products. You receive a sneak glance at the most recent market trends, which aids in your ability to make wise sales selections.
7. Digital transaction security
An important fact that every business should be aware of is this: Your POS system is readily hackable. According to Business Standard research, India is ranked second worldwide for ransomware attacks and POS frauds.
You will be surprised to learn that an average firm can be subject to more than 15 POS malware assaults. And that’s not all. POS software that integrates with the POS systems used to collect credit card payments, debit card payments, and more is, therefore, what your business requires.
As a result, the cashier cannot directly input the transaction value into the credit card swipe device. Due to the rising popularity of UPI and mobile wallets, POS software and applications that interact with payment apps like Paytm, GPay, and PhonePe are essential.
The accounting team must perform a daily auto reconciliation of these figures to close any gaps in these companies’ payments to the bank.
8. Regularly conducting audits
How can you say that your business is doing well? Are there any obvious holes or inconsistencies? Is there anything that could use a lot of work? An audit trail will provide you with all of this information and more. You need a strong POS platform to conduct frequent audit trials. To:
- Keep track of all commercial dealings
- Get information on what’s occurring on the property
- Additionally, here are some other crucial areas that the POS software may help you monitor.
How SWIL POS Software helps businesses to Prevent Hidden Fraudulent Activities
SWIL POS Software is a powerful fraud prevention software that can help businesses to identify and prevent fraudulent activities. It provides users with a comprehensive view of their business, allowing them to detect and avoid any potential fraudulent activity.
One of the main benefits of using SWIL POS Software is that it allows businesses to quickly and easily identify suspicious transactions. This makes it easier for them to take action, such as contacting the customer or issuing a refund if necessary. SWIL POS Software can also help businesses monitor their finances more effectively to ensure they are spending money wisely. This helps reduce the risk of financial instability or bankruptcy in the future.
Conclusion
It is important to have POS software that can identify and prevent fraudulent activities. Using the right tools, you can keep your business safe and ensure that your customers receive the best possible experience.
By doing so, you can also protect your business and customers from various scams. Make sure to regularly scan your transactions for anything out of the ordinary, and keep an eye out for fraud alerts that your POS software may generate.
FAQs
1. Is the POS system safe?
When it comes to point-of-sale (POS) systems, for example, many people worry about safety issues related to data entry and theft. But some measures can be taken to ensure your POS system is as safe as possible.
2. What is the full form of POS?
POS refers to the Point of Sale, a system that allows merchants to accept credit and debit cards, checks and other forms of payment. POS can be used in physical stores or online. The three primary types of POS systems are stand-alone, integrated and mobile.
3. What is the use of a POS system?
A point of sale (POS) system is a computerized cash register and associated software used in retail stores. POS systems are used to process transactions, keep track of inventory, and generate sales reports. POS systems can be used in small businesses, large corporations, and government agencies.
4. What are the vulnerabilities in POS?
POS systems are vulnerable to several different types of attacks. These include physical attacks, cyberattacks, and social engineering incidents. These vulnerabilities can lead to financial losses for businesses and could ultimately be devastating if not detected and addressed quickly.
