What are the steps to prevent retail frauds/thefts?

Require store managers to review register transactions every day - look for excessive openings of the drawer, small cash refunds, returns, etc.

Make sure your employees can see you or a manager reviewing this information. Don't hide in the back room because just by letting them watch you can reduce more theft than anything.

Proper inverntory management softwares can be used along with efficient system of employee check in and check out. CCTV and other security measures can be installed inside the store to keep more vigilance. Prompt purchase and sales data entry and physical stock check at regular intervals will definitely help to reduce such thefts by employees. 

Make sure all employees give receipts. You could offer the customer something free such as $5, if the employee does not give a receipt. This makes it harder for an employee just to pocket the money. If your register keeps track of no sales, this could be a clue of a problem. Excessive no sales are either an education issue or a theft issue.

I believe one of the ways to counter this problem is to have a database for master inventries which should be validated on day to day or even shift to shift basis with individual inventries of employess - say show rooms - the responsibility of maintaining showroom inventries shall be with the show room managers or the highest authority therein who will be answerable for such thefts/shortages -However, due allowance has to be provided for damages/losses in transit and such other things suitably  which again, will be accounted for by each retail chain on shift to shift basis or day to day basis as the case may be.

Adequate monetary compensations by way of incentives etc should be considered for honest employees, which will make them more accountable and responsible - morally - Such incentives should be settled on weekly basis or daily basis.

Easy to identify process must be initiated by the companies at the point of redistribution to retail chains which will help in identifying the quantities of products sent/damages/losses etc - this has to be certified by the show room managers.

I do not think,Sunita,there is any fool proof way to prevent pilferage.The frauds tells upon the integrity of the insiders and theft of the outsiders.The only practical solution is  to close the shopping one or two hours before the working hours and check the balances.The security must be pruned to nab the  lifters or theft.

Can send SMS to customer immediately after receipt of money. Once customers gets used to this kind of msg, later if they are not geting SMS, they will inform the store manager