11 Effective Hacks to Stop Liquor Store Theft Using Your POS

Lost bottles, suspicious discounts, and "missing" cash. Liquor store theft is no joke. Whether it's customers slipping pricey whiskey into their bags or employees manipulating transactions, liquor store theft is a major profit drain. Why? Because alcohol is small, valuable, and ridiculously easy to resell. But you can stop it!

A well-optimized POS system can help you monitor inventory, track suspicious transactions, and prevent both internal and external liquor store theft. Let’s break down how smart POS features can help you.

Why Theft and Fraud are Rampant in Liquor Stores

Let’s first understand why liquor stores are particularly vulnerable to theft:

Liquor is a High-Value Product

Premium whiskey and tequila can cost hundreds of dollars, making them prime targets for theft and resale on the black market. Also, some customers may even attempt “refund fraud.” They steal a bottle and later return to the store claiming they purchased it.

Small Size, High Price

Unlike electronics or luxury handbags, liquor is compact. So, it is easier to hide alcohol bottles under clothing, in bags, or even in pockets. A thief can easily grab a bottle and walk out without raising suspicion.

Internal Theft Risks

Employees may commit fraud by voiding sales, issuing fake refunds, or undercharging friends. Some may even steal bottles themselves, especially in stores that don’t have proper employee tracking.

Weak Tracking Systems

Many small liquor stores still rely on manual inventory counts or outdated cash registers. Without automated tracking, it’s hard to detect when stock goes missing.

High Cash Transactions

The more cash you handle, the easier it is for employees or even an outsider to pocket money without being caught. Without strong cash-handling policies, liquor store burglary becomes a daily risk.

11 Ways to Reduce Theft and Fraud with POS Tracking

Let’s dive into the best ways to prevent liquor store theft using a liquor store POS system that tracks everything, from suspicious patterns in sales to staff activities:

1. Track Sales & Inventory in Real-Time

A POS system automatically tracks every sale and updates your inventory in real time. This serves as your first line of defense against liquor store theft, instantly identifying missing stock before losses add up. It also reduces the risk of employee or vendor theft. 

To prevent liquor store theft, use your POS system to:

• Track your alcohol inventory in real time. 
• Train your staff to identify stock mismatches. 
• Conduct weekly or bi-weekly audits to verify system accuracy.

For example, if your POS reports show 10 bottles of Jack Daniel’s sold, but only eight remain on the shelf, you can immediately investigate the missing two.

2. Employee Login Tracking

Every cashier should have a unique login ID for the POS system. This ensures every transaction is linked to a specific employee. So, you can hold employees accountable for suspicious transactions. Consequently, it prevents fraudulent refunds and unauthorized discounts.  

So, to stop theft before it starts, use your POS system to:

• Assign individual login credentials to each employee.
• Restrict permission levels based on roles, such as cashier, manager, and more.
• Set up a log that records every voided sale, refund, and discount.

For example, if voided sales only happen during a certain employee’s shift, that’s a red flag. 

3. Track Voids, Discounts & Refunds

Some employees might give unauthorized discounts to friends or themselves. So, make sure you keep track of voids, discounts & refunds to flag unusual activity before losses pile up.  

Here's how to do It:

• Decide a certain threshold and be cautious when you manage returns, refunds, voids, or discounts exceeding that level.
• Require manager approval for any discount above a specific percentage.

For example, if an employee voids multiple transactions right before closing, your POS system should flag it for review.

4. Monitor High-Risk Items

Some liquor brands are prime targets for theft due to their small size, high resale value, or popularity. Apart from that, the following items disappear off shelves more often than you’d think:  

• High-end cigars
• Vapes and e-cigarettes
• Energy drinks
• Snack packs of nuts and chocolates
• High-end mixers, like tonic water and syrups
• Glassware
• Lottery tickets
• Lighters and cigarette accessories
• Bar tools, like cocktail shakers and bottle openers

When you're aware of high-risk items in your store, you can place them under surveillance. Plus, if you know that a bottle of something as expensive as Macallan 18 has gone missing, your POS can help you confirm whether it was actually sold.  

5. Enable Age Verification Scanning

Selling liquor to minors is illegal. Age verification is a must. While manual ID checks are an option, they increase the risk of accepting fake IDs.

So, use a POS system with built-in age verification before finalizing a sale. Here's how it works:

• The system scans a customer’s government-issued ID. 
• It automatically checks the date of birth.
• It checks if the customer meets legal age requirements and then completes the sale.

6. Limit Cash Handling

Cash transactions could be a risk factor for liquor store burglary and fraud. An outsider may just break into the cash drawer. On the other hand, some employees may skim cash from the register, fake transactions, or fail to record sales properly.  

To limit handling cash, you should:

• Encourage contactless payments, like credit cards and QR codes. 
• Implement POS cash reconciliation reports that track discrepancies. 

So, if an employee says there was $500 in the register but your POS report shows there should be $600, you immediately know there’s a problem.  

7. Check Automated Reports Daily

Most modern POS systems generate automated reports to track refunds and voids. These reports help identify suspicious discounts or underreported cash sales.

Here's how you can decrease liquor store theft and fraud using your POS analytics:

• Check your daily POS reports that summarize sales, refunds, and voided transactions.  
• Compare analytics reports from different shifts to see if any employees stand out.  
• Monitor peak sales hours to prevent employee theft during busy times.  

For example, if refunds only happen late at night when one specific employee is on shift, that’s a clear red flag.  

8. Enforce a Strict No-Sale Policy for Unscanned Items

Some employees or customers may walk out with bottles that were never scanned at checkout. So, require barcode scanning for every sale. Nothing should leave without being logged. With automated scanning, you can also optimize checkout speed in your store.

For example, if a customer walks out with a bottle of vodka that doesn’t appear in the system, your POS should flag the transaction as incomplete.

9. Rotate Employee Shifts

Theft often occurs when employees get too comfortable in a certain role or shift. Frequent shift rotations can help you decrease the chance of collusion between employees. They also help prevent employees from figuring out loopholes in the system. Consequently, you're more likely to notice fraudulent activities. 

So, use your POS system to automate employee scheduling. Set up your employees’ shift rotations in a way that:

• Cashiers are frequently changed to reduce the risk of repeated liquor store theft patterns.  
• Closing and opening duties are rotated so the same employees don’t always handle the cash drawer.  

For example, if an employee always works the closing shift and there’s a recurring cash shortage, rotating shifts may expose the issue.  

10. Verify Vendor Deliveries

Liquor stores don’t just face theft from employees and customers. Sometimes, suppliers can shortchange your stock. But if you comprehensively check vendor deliveries, you can prevent fake invoices and missing stock issues and flag inconsistent supplier behavior.  

So, here's how you can use your POS to decrease the chances of the shortchange:

• Always cross-check deliveries against your POS purchase records.  
• Use barcode scanning to confirm the exact number of bottles delivered.  
• Set up vendor performance reports to track discrepancies over time.  

For example, if your invoice says you paid for 20 cases of beer, but your POS count only reflects 18 cases, you know there’s a problem.  

11. Digital Receipts & Record-Keeping

Paper receipts are easy to lose, fake, or manipulate. Digital receipts prevent fake refund scams where customers claim a refund without proof of purchase. Also, thanks to having clear transaction records, you can have fast audits and fewer disputes.

Here's how to do it using a handheld POS system:

• Enable email or SMS receipts in your POS system.  
• Require digital receipts for all refunds. No paper receipts allowed.  
• Store transaction records securely in the cloud for easy access.  

Suppose a customer claims they bought a $200 bottle of whiskey. But they lost the receipt. Then, your POS should have a digital record of the purchase. If it doesn’t exist, the refund request is fake.  

Protect Your Profits with Smart POS Tracking  

Liquor store theft and fraud don’t have to be a cost of doing business. Smart POS tracking, employee monitoring, and inventory management can help you decrease revenue leaks and run a more secure, profitable liquor store.  

Ready to stop liquor store theft for good? OneHubPOS gives you real-time tracking, employee monitoring, and unbeatable security features. Protect your profits—Book a demo today!