Security experts estimate that employee theft is responsible for at least 50 percent of merchandise shrinkage in the retail industry. Many employees can be persuaded or prevented from stealing. Positive programs of employee relations built around fair compensation, proper surrounding, and employer-sponsored activities can improve morale and concern for the success of a company. The only way to reach some employees, however, is through a highly visible security program and a rigid company policy of prosecuting any employee caught stealing. Theft prevention requires simple but sophisticated systems for handling merchandise and currency which not only deter but also leave a trail of documents when any theft occurs. One important preventive step is preemployment screening, using thorough background checks and lie-detection devices and tests. Steps to prevent shoplifting include the use of uniformed security guards and plainclothes detectives, fitting-room attendants, security involvement by staff, awards and bonuses for employees who contribute to the apprehension of shoplifters, and the use of security hardware. Special procedures should be developed for processing checks, credit cards, and refunds so as to reduce the likelihood of fraud and improve the chances of a successful investigation should fraud occur.