Bar frauds: Beverage Control

Another possibility, which has occurred frequently, is for customers to indicate that their food contained some foreign matter, such as glass or china, or even an insect (perhaps even brought in by the complaining customers).

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.

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 avoid 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.

Occasionally customers will attempt, either intentionally or unintentionally, to give to cashier counterfeit currency. In most cases, this currency will be easy to detect if proper cash handling procedure is followed. All bills should quickly be examined on both sides and placed on the ledger 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 taken.

Items are omitted from the bill in order to establish a rapport with customers, to increase tips, or perhaps to give free merchandise to friends or fellow employees. This type of fraud occurs when inadequate dupe system or validating systems are utilized. A full control system in organizations having full services is impractical since accounting for items with a retail sales value of less than $1 is too costly. Bookkeeping costs would be excessive in relation to income.
In some cases, the items that are to be sold are already under the control of the service staff, as in the case of milk in individual containers or a 6-gallon refrigerated carton in the service area. No records are is maintained when a waitress or waiter pours a glass of milk. Should this charge be omitted from the check, it would be impossible to track down the guilty party, since a number of personnel may have access to the milk supply.

 It is often possible to reproduce the checks that are used by an establishment. Certainly, if stock checks(not specially imprinted ones) are being used, they may be readily be purchased by anyone form dealers. It is also possible when checks are not numbered or recorded (and in those cases where the numbers are recorded but not audited) for a waiter or waitress simply to pocket the check and the cash received, if other control systems are not utilized.
Checks can be counted automatically by the utilization of a check numbering system similar to UPC(universal product code) or those system s being used by banks. Each check is imprinted with a number that can be read by a machine. If a number is omitted or the check not closed out, the machine will report this omission. These systems are readily available that have been made in electronic technology.

 This practice may occur when staff members are allowed to make corrections on the checks without supervision. The customers may be charged for merchandise not received. Or higher prices may be entered on the check. After the customer has paid the staff member, the correct prices and amounts are entered, the check is re-totalled, and the difference is pocketed by the server.
Incorrect addition- intentionally adding a dollar to each check and pocketing the money when the check is properly totalled can readily be performed, particularly if amounts are handwritten on the checks. Should the error be discovered by the customer it is normally excused, since an error is over adding can be quickly explained away as poor arithmetic.

In some establishments with a fairly tight system of control, it may be impossible for a waitress or waiter to supply friends with free merchandise. However, substitution can be made by ordering higher priced items from the kitchen and charging for lower priced ones. The server orders a higher priced item but records a lower priced item on the check. The friend is presented with a check for the smaller amount.

In some areas of the country, where many foods and beverage sales are complimentary, other incidents occur where a dinner is a bing paid for by someone other than the guest. The extra amount of beverages or food may be placed on the checks to increase the value of the sale. This extra food can be sold to other guests and the cash received pocketed by the waiter or waitress. This padding of the bill may also be done whenever the tip may be a fixed proportion of the total bill. If the sales are increased by 1000rs the tip may go up to 100rs or more. When given a free dinner the guest does not closely inspect the items on the bill. Instead, he or she merely gives a brief inspection, signs for the full amount, and leaves a tip based on the total value listed on the check.

Shortchanging of the customer is possible no matter what system is used. It cannot be prevented without s shopper system, which may or may not be able to detect the fraud. Certainly, if repeated complaints by customers occur, immediate action must be taken.
A shopper system is one in which a person unknown to the regular employees is hired to come into the store and posing as a customer, checks on the efficiency of the operation and various segments of the system.

 When a waiter or waitress also handles the cash registers, split rings may occur this situation arises when for example, a check for 1000rs is rung up 500rs and 400rs. The owner has lost 100rs which the waiter or waitress pockets.
By ringing the second time, the waiter or waitress prevents the customer from seeing the actual amount of the first ring-up. The customer usually presumes there was a simple error. Should anyone question the two rings for one check, the waiter or waitress merely states that he or she made an error on the first ring and rang 900rs by mistake. Using a cash register with a tape and giving guests receipt will help to alleviate this type of fraud.

A bartender who handles cash(using a register) has the same opportunity of theft as a waiter or a waitress- and the same chance of error.

The possibility of theft for the 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 the check after collection.
3.    Cashier bunches sales, split-rings, or under rings.
4.    The cashier gives incorrect change.
5.    Cashier performs incorrect addition.
6.    Cashier falsifies payout or adds items to complimentary checks and removes them from other checks.