For laundry and dry-cleaning businesses, a reliable and secure point-of-sale (POS) system is essential to maintain operational efficiency and prevent revenue loss. However, point-of-sale fraud is a significant threat that can compromise your business’s financial health. One particularly deceptive tactic is POS Void Fraud, where fraudulent employees manipulate voided transactions to pocket cash, leaving no trace of their wrongdoing.

Clean Touch EPOS by Axcess IT is specifically designed for laundry and dry-cleaning businesses, with advanced features to detect and prevent void scams. In this blog, we’ll delve into what void fraud is, how it works, red flags to watch out for, and practical steps you can take to protect your business.

What Is POS Void Fraud?

POS void fraud occurs when an employee processes a sale, takes the customer’s money, and then voids the transaction in the POS system. This fraud can be challenging to detect because the end-of-day cash and sales records often appear balanced.

How Void Fraud Works?

The mechanics of void fraud are straightforward but insidious:

1. Legitimate Sale: The employee processes a legitimate transaction and collects payment from the customer.
2. Voiding the Transaction: After the customer leaves, the employee voids the transaction in the POS system.
3. Pocketing the Cash: The voided sale allows the employee to take the cash without raising immediate suspicion.
4. Balanced Records: At the end of the day, the sales reports and cash balances appear normal, making it difficult to identify discrepancies.

The fraud is often discovered only when customers return with questions about purchases that don’t appear in the system.

Red Flags for Voided Transactions

Certain patterns can signal the possibility of void fraud:

• Frequent Voids: An unusually high number of voided or no-sale transactions.
• Employee-Specific Trends: Voids frequently processed by the same employee or during their shifts.
• Odd Timing: Transactions are voided at suspicious times, such as just before closing.
• High-Value Items: Repeated voids involving expensive items.

In addition to these trends, employee behaviour may raise suspicion, such as refusing to let others use their register, wanting to work alone, or being overly protective of their workstation.

Point of Sale Fraud Prevention Strategies

To safeguard your business, implement these POS fraud prevention measures:

1. Strengthen Your Void Policies

• Limit Permissions: Restrict voiding rights to senior or trusted employees.
• Manager Approvals: Configure your POS system to require manager authorization for voided transactions.
• Detailed Documentation: Ensure every voided transaction includes a reason, logged in the system.

2. Leverage Technology

Modern POS systems like Clean Touch EPOS offer robust tools to deter fraud:

• Real-Time Alerts: Get instant notifications of unusual void activity.
• Integrated CCTV: Link transactions to video footage for clear evidence.
• Customizable Reports: Identify suspicious void patterns with detailed reporting features.

3. Conduct Regular Audits

• Perform unannounced reviews of voided transactions to catch irregularities.
• Use camera footage to verify whether voids correspond to legitimate errors.
• Rotate staff assignments to prevent employees from becoming overly comfortable with their registers.

How fraud is protected by Clean Touch EPOS?

With Clean Touch EPOS, it is easier to protect against fraud. The manager or the owner has the master rights to access the system data. In case of fraud, the system sends an email stating the order number, date-time stamp, and user information. As the admin/owner is notified, they can take immediate action to void that particular fraud.

Let’s take another instance. Say the order is more than one day old. In such a scenario, only the administrators can void those orders and this cannot be done by staff members in any situation which adds an extra layer of security.

Clean Touch EPOS Features & Benefits

• User-Specific Logins: Enables tracking of individual users performing each transaction, ensuring accountability.
• Tiered Accessibility: Restricts void permissions to trusted personnel, enhancing security.
• Detailed Void Reports: Assists in identifying and analysing suspicious activity patterns.
• CCTV Integration: Connects transactions to corresponding video footage, providing robust evidence.

A Real-World Example

One laundry business using Clean Touch EPOS discovered an employee was voiding transactions after customers left and pocketing the cash. Thanks to our system’s detailed reporting and CCTV integration, the owner identified the suspicious activity, collected evidence, and prevented further losses.

Take Action Against Void Fraud

Void fraud is a growing concern, but with the right tools and practices, you can protect your laundry or dry-cleaning business. Implement strict void policies, conduct regular audits, and leverage technology to catch and prevent fraudulent activities before they impact your bottom line.

At Axcess IT, we’re committed to helping businesses like yours succeed. Our Clean Touch EPOS ensures you can focus on delivering excellent customer service while staying protected from void fraud.

Protect your business today—reach out to Axcess IT and learn how Clean Touch EPOS can provide the security and peace of mind you need to thrive.