1. Internal Audit & Restaurant Guard
Galina Seliounina, Internal Auditor, Landry’s Inc.
Scott Walton, Product Manager – Restaurant Guard, NCR
Wednesday February 5, 2014
February 2014

2. AGENDA
Introduction
Why people commit fraud
What is Restaurant Guard
Restaurant Guard Mobile
Restaurant Guard Audit
Employees misappropriation and its effect on the restaurant
Internal controls checklist (SIP)
Questions

3. 4/1/2017
Source: UC Merced.edu

4. Motivation, Rationalization, and Opportunity - the Fraud Triangle.
4/1/2017   
The Fraud Triangle:
Most people who commit fraud at work are often trusted staff with no criminal history. The are three factors that must be present for an ordinary person to commit fraud:
Motivation, Rationalization, and Opportunity - the Fraud Triangle.
Motivation or pressure may include financial problems, addictions like gambling, shopping or drugs, pressure to show good performance or results, or just the thrill of being able to get away with something.  
Rationalization is when individuals think they are justified because they are underpaid, or it's for their family, or they need it now but they'll pay it back before anyone notices.
Opportunity is created when there are weaknesses in controls.  Individuals think they won't get caught because nobody is looking, or reviewing, or performing reconciliations and reviews. 
Source: UC Merced.edu

5. WHAT IS NCR RESTAURANT GUARD?
A loss prevention tool that uses pattern matching and statistical analysis to identify suspicious events within restaurants. Restaurant Guard:
Monitors POS transactions in real time and identifies known theft patterns via exception alerts
Performs sophisticated statistical analysis against POS historical data to find suspicious trends and outlier transactions
Restaurant Guard accomplishes these goals with two complimentary modules:
Restaurant Guard Mobile and Restaurant Guard Audit

6. RESTAURANT GUARD MOBILE
4/1/2017
RESTAURANT GUARD MOBILE
Part of the Pulse Platform
Site client sends POS transactional data to NCR data center for real-time analysis.
Alerts sent to phone within seconds of suspicious activity
Leverages Insight security
Two days of data maintained on mobile device
Available on both iOS and Android
<<DEMO>>

7. ANALYSIS / THEFT DETECTION
RESTAURANT GUARD AUDIT
DATA CENTER
Daily summary data (dated subs) polled from sites after end of day for thorough analysis.
Summary alert reports generated / posted to the Restaurant Guard portal on a weekly basis
400 days of transactional data and 180 days of exception alerts maintained on portal
DATA STORAGE
ANALYSIS / THEFT DETECTION
ALERT GENERATION
DATED SUB
ALOHA POS

8. RESTAURANT GUARD AUDIT SUSPICIOUS ACTIVITY ALERTS
Post Close Comps/ Post Close Voids
Landry’s Select Club card (LSC) abuse
Suspicious transfers
Spill checks

9. POST CLOSE COMP AND POST CLOSE VOID
EMPLOYEES MISAPPROPRIATION and
THE EFFECT on the RESTAURANT
Scenario 1:
POST CLOSE COMP AND POST CLOSE VOID
“Manager reopens cash check and applies discount or void for personal gain”
P1 – P4

10. Scenario 2:
LSC fraud
“Employee fraudulently acquires LSC card and applies rewards on cash checks”
L1 – L4

11. “Employee transfers an item before closing check to cash”
Scenario 3
TRANSFER
“Employee transfers an item before closing check to cash”
T1 – T5

12. “Transferred item is moved to spill check”
Scenario 4
SPILL CHECK
“Transferred item is moved to spill check”
S1 – S3

13. INTERNAL CONTROLS CHECKLIST
L2, T1

14. Motivation, Rationalization, and Opportunity - the Fraud Triangle.
4/1/2017   
The Fraud Triangle:
Most people who commit fraud at work are often trusted staff with no criminal history. The are three factors that must be present for an ordinary person to commit fraud:
Motivation, Rationalization, and Opportunity - the Fraud Triangle.
Motivation or pressure may include financial problems, addictions like gambling, shopping or drugs, pressure to show good performance or results, or just the thrill of being able to get away with something.  
Rationalization is when individuals think they are justified because they are underpaid, or it's for their family, or they need it now but they'll pay it back before anyone notices.
Opportunity is created when there are weaknesses in controls.  Individuals think they won't get caught because nobody is looking, or reviewing, or performing reconciliations and reviews. 
Source: UC Merced.edu

15. QUESTIONS?