BAR Frauds

BAR Frauds

Types of BAR Frauds

Customer making unnecessary complaints

Complaints are generally made to the waiter or waitress, who should in turn call the manager or host to solve the problem. Since there is always the possibility that the events did in truth occur, the normal policy is to grant free drinks or dinners to the guests to avoid embarrassment, to prevent possible lawsuits, and, of course, to encourage the customers to return. In most cases of fraud, the guests will not return to perform the same type of fraud nor will they return merely to buy a dinner.

In the case of falsified complaints, the establishment has no recourse except to treat the affair as a normal business expense. In cases of walkouts, the house may have legal recourse, and of course it can set up a control system that minimizes the chances of this type of theft.

Customers normally cannot perpetrate any other type of theft, since they do not have access food or beverages. Disputes may arise, however, as to the exact number of drinks that were served. In cases of parties where payment is  based on head counts, lower figures may be presented by the guests. However, verification can readily be made by staff members.

Only one or two systems of cash collection can eliminate the walkout fraud. Cash prepaid (for fast food) or collected either by a cashier stationed at the beginning of food service (single-price dinners or buffets) or a cashier at the end of the line in cafeteria eliminate customer fraud of this nature. A COD system comparable to those used for beverages is occasionally used in food service

In every other system there remains a possibility that the customer will walk out despite precautions by management and by employees. It is impossible for a waiter or waitress to watch a table continually. Even with team systems in which two servers work together—-one remaining in the dining room and the other placing orders and relaying food from the kitchen—the team cannot watch every customer continually. A team system, however, certainly is an. improvement over the individual server system. Likewise, a cashier cannot be expected to stop every customer to determine if the check was paid, particularly during busy meal hours.

Using false credit card-

Customers may also use credit cards that are worthless or attempt to pay with checks that are not honoured by banks. Unless customers are known, it is best to avoide cashing checks if possible. If a check must be cashed, adequate identification should be provided, and no check should be honoured for more than the value of the dinner.

Counterfeit currency-

Occasionally  customers will attempt, either intentionally or unintentionally, to give to cahier counterfeit currency. In most cases, this currency will be easy to detect if proper cash handling procedure are followed. All bills should quickly examined on both sides and placed on the ledge of the register. It is hoped that this cursory examination will detect most of the counterfeit money, although in some cases help of the expert can be take

Cashier theft or error

The possibility of theft for cashier is more restricted than with either bartender, waiters, or waitress, since they normally do not handle the products sold. If the cashier is responsible solely for cash collection, errors or theft may occur under any of the following categories;

1.    Cashier keeps the money and pockets or destroys a check.

2.    Cashier changes the total of check after collection.

3.    Cashier bunches sales, split-rings, or underrings.

4.    Cashier gives uncorrect change.

5.    Cashier performs incorrect addition.

6.    Cashier falsifies payout or adds items to complimentary checks and removes them from oother checks.