Commentary

Key control holds key to controlling vending theft

A common denominator across the industry is the total lack of structured and disciplined key audit, documentation and control. "It's the keys stupid!"

Photo provided by iStock.

June 14, 2021 by Mark Manney — Founder/CEO, Loss Prevention Results Inc.

Shortly after I began investigating vending theft, it became obvious that much of the theft was being committed by people who had managed to gain vending machine keys.

I quickly recognized the need for a covert camera that could fit inside a vending machine. I turned to a covert camera expert who had worked for me in my former role as a retail security consultant and instructed him to build a motion activated covert camera to fit into a vending machine, which he was able to do.

The camera, called the VendingCam, was easy to install in vending machines or changers, as well as in store rooms or warehouses.

The VendingCam had a pinhole lens the size of the tip of a ballpoint pen, and if carefully installed was almost impossible to know where it was hidden or in which machine or changer. It only recorded when the machine/changer was opened, and stopped recording when it was closed. The camera continued to record if it was in a glassfront machine and you wanted to expose vandalism or shaking.

Once this VendingCam became available to the vending market, dozens of clients started emailing me video clips of cash or product theft or vandalism/shaking incidents captured on video. As the thieves were identified, I would put the evidence together into a concise "case jacket" for the cops and the courts. I would then drive or fly in to conduct the closing interrogation.

It is amazing what you can find out from an exposed, trapped, cornered and desperate videotaped thief.

In one instance, the video showed that a former technician, who had been terminated, was stealing from machines. The video was turned over to the police who arrested the man.

During the interrogation he admitted the theft captured on video as well as theft at two other company locations. He also admitted having four stolen company keys at home, all of which were recovered by the police.

The company adopted my "Loss Prevention Results Key Control" program and gained complete key control.

I compiled a depository of videotaped clips from dozens of vending companies from all over the country, and even made a video from some of them titled: "Ripping the Mask Off Internal Theft" which I used in training seminars to educate vending company employees on the capability their employer now had with the VendingCam.

I am convinced that the number one thief of cash in the vending industry is present or former employees or family or friends of present or former employees who possess keys given to them by present or former employees. In many cases, company management does not know the present or former employee was given the key because it was never recorded in a key audit. In some cases, the present or former employee simply stole the key because the vast majority of vending companies have no form of key control.

Sometimes entire rings of keys or master keys go missing and no one in management knows it.

In some cases, the former employee knew the route well and simply continued to skim cash long after they left the company. I had a couple of cases where the skimming that had gone on for years was exposed by the VendingCam.

In many cases, the thieves did not clean out the machine because they didn't want to kill their host…just bleed them like hidden leeches. They wanted their former employer to think it was the present route man, technician, money room counter, etc. who was skimming.

A lot of hands touch the cash, and all but one pair are usually innocent.

I do not know how many route personnel have been "managed out" because management was convinced they were stealing because of stolen or untracked keys being used by someone else. Or a corrupt employee made it look like the route person was stealing, then stopped stealing when the route person was replaced. But I suspect it is a countless number and goes on daily in the industry.

A common denominator across the industry is the total lack of structured and disciplined key audit, documentation and control.

Remember the famous political truism "It's the economy stupid"? In the vending industry, "It's the keys stupid!"

Fortunately, the problem is not expensive or hard to fix. It just takes a sense of urgency, an eye for detail, followup and a manager who has all three.

VendingCam is no longer available, but, there are many great covert cameras available, as the technology never stops advancing.

Vending