Fraud and compliance failures can cost hospitality businesses thousands in lost revenue, fines, and reputational damage. Without the right processes in place, businesses are at risk of theft, untracked losses, and inefficiencies that drain profitability.
At Capcon, we work with hospitality operators to tighten controls, improve compliance, and reduce the risks associated with fraud. This case study highlights how we helped a client identify vulnerabilities, implement stronger processes, and build a more secure, efficient business.
The Challenge: A Business Losing Money Due to Fraud and Poor Controls
Before working with Capcon, our client – a national hospitality operator – was struggling with:
- Unexplained stock discrepancies: High-value stock items were going missing, with no clear explanation.
- Cash handling issues: End-of-shift cash totals were frequently misaligned, causing losses.
- Lack of transaction oversight: No structured system to monitor voids, discounts, or staff transactions.
- Poor employee screening: Hiring processes didn’t include thorough background checks, leading to higher fraud risks.
Despite implementing general operational checks, gaps in security and oversight allowed fraud to slip through, creating financial losses and compliance concerns.
Our Approach: Strengthening Controls and Identifying Risks
Capcon stepped in with a structured fraud prevention strategy, focusing on:
- Conducting a Risk Assessment
We conducted a thorough review of all stock movements, financial transactions, and employee activities to identify weaknesses in existing controls.
- Implementing Real-Time Transaction Monitoring
By introducing a digital audit trail, we ensured that all voids, discounts, and cash transactions were properly logged and reviewed in real time.
- Enhancing Stock Security
We implemented tighter stock tracking, with clear accountability for stock movement and daily reconciliation checks to identify discrepancies early.
- Introducing Pre-Employment Screening
To reduce the risk of internal fraud, we introduced background screening for new hires, ensuring that all employees were vetted before handling stock or cash.
- Training Staff on Fraud Prevention
We provided hands-on fraud awareness training, helping employees recognise suspicious activity and encouraging a culture of accountability.
The Results: Improved Security, Compliance, and Profitability
Since implementing these changes, the client has seen significant improvements in fraud prevention and compliance:
- Reduced financial losses by 30% by tightening transaction controls
- Eliminated stock discrepancies through improved tracking and reporting
- Strengthened compliance with better cash-handling procedures and accountability
- Lowered internal fraud risk through comprehensive employee screening
- Increased staff confidence with better fraud awareness training
Conclusion: Proactive Measures Lead to Long-Term Security
This case study is just one example of how Capcon helps hospitality businesses reduce fraud, improve compliance, and protect their bottom line.
By taking proactive steps to identify risks, strengthen controls, and educate staff, businesses can significantly reduce fraud-related losses and ensure long-term stability.
If your business could benefit from a structured, data-driven approach to fraud prevention and compliance, contact the Capcon team. We help many well-known hospitality operators protect their operations, and we’re here to help you too.
