BUSINESS CRIME

How to Stop!!!

OBJECTIVE

• Be able to define “Shrinkage”

Anything that leads to an unexplained loss of money to the business

OBJECTIVE

• Be able to identify the different types of business crime:

Shoplifting Bad Checks

Internal Theft Credit Card Theft

Insurance Fraud Armed Robbery

Counterfeit Money Vendor Fraud

Identity Theft ???

OBJECTIVE

• Be able to describe the “cost”

of shrinkage to you!!:

Raises Promotions

Trust Benefits

Discounts YOUR JOB

OBJECTIVE

• Be able to describe the “cost” of shrinkage to you:

– Higher Prices

– Higher Taxes

– Less trustworthy society

EXAMPLE

• Supermarket w/ $2,000,000 in sales & a profit margin of 1.8%

• Suffers a $16,000 loss due to shrinkage (< 1%)

• How much must they sell to break even?

EXAMPLE• Divide $16,000 by 1.8% to

get $888,888.89 (or almost 50% of sales!!!)

• To confirm, multiply $888,888.89 by 1.8% to get $16,000

• Meaning the store must sell for 5 months & make ZERO profit

OBJECTIVE (ACTIVITY)

• Be able to describe your role in stopping business crime as:– a citizen

– an employee

– a customer service rep.

– an individual

SHOPLIFTING

OBJECTIVE

• Be able to identify at least five signs that someone might be a shoplifter

Shoplifting Signs

• Nervous Habits

– ?

– ?

– ?

– ?

Shoplifting Signs

• Nervous Habits?

– Quick movements

– Handling merchandise w/out looking at it

– Poor eye contact

– Eyes darting

Shoplifting Signs

• Bulky Clothing

• Attempts to Distract

• Loitering

• Out of place merchandise

Shoplifting Signs

Shoplifting “Types” ?

– ?

– ?

– ?

– ?

Shoplifting Signs

Shoplifting “Types”

NONE!!!

Shoplifting Signs

Except

• Shoplifting Professionals

vs. Amateurs

OBJECTIVE

• Be able to identify the most common methods used to shoplift:

– ?

– ?

– ?

– ?

OBJECTIVE

• Be able to identify the most common methods used to shoplift:

– Concealment:

Purses Pockets Umbrellas

Between Legs Newspaper Slings

Packages Carriages Bags

– “The Kick”

– “Trash Collection”

OBJECTIVE

• Be able to identify the methods used in business to prevent shoplifting:

– ?????

OBJECTIVE

• Be able to identify the methods used in business to prevent shoplifting:– Electronic tags

– Exposed TV/Video Monitors

– Concealed TV/Video Monitors

– Fitting Room Attendants

– Locks & Chains

OBJECTIVE

• Be able to identify the methods used in business to prevent shoplifting:– Convex mirrors

– Security personnel

– Elevated office

– Two-way mirrors

– ???

OBJECTIVE

• Be able to identify strategies used by people like you to prevent shoplifting:

– ?

– ?

– ?

– ?

– ?

OBJECTIVE

• Be able to identify strategies used by people like you to prevent shoplifting:

– Meet & greet every customer!!!

– Check back w/ customers often– Know your merchandise:

Prices Location Items Stolen Often

– Never leave your dept. unattended

OBJECTIVE

• Be able to identify strategies used by people like you to prevent shoplifting:

– Always close your cash drawer

– Know the tips to ID shoplifters

– Don’t create blind spots in the store

– (Other ideas from student training?)

OBJECTIVE

• Be able to describe the steps to follow when you suspect someone has shoplifted from your store:

– Do not lose sight of suspect

– Call for security/mgt. personnel

– Wait until the suspect leaves store?

– DO NOT physically try to stop

OBJECTIVE

• Be able to describe the steps to follow when you suspect someone has shoplifted from your store:

– Get a description of the suspect and watch how he/she leaves the area

– Hold suspect for up to one hour if you can

INTERNAL THEFT

OBJECTIVE

• Be able to explain why “honest” employees steal from their employers:

????

OBJECTIVE• Be able to explain why “honest” employees steal from

their employers:– Low expectation of being caught/prosecuted– High levels of frustration:

Low pay Difficult Cust. Long Hours

– Alibis:“Company Owes Me”

“Everyone Else is doing it”

“Boss doesn’t appreciate me”

OBJECITVE

• Be able to identify high-risk employees for employee theft:

– Those living beyond their means

– Employees who regularly violate company rules & regulations

– Employees w/ serious debt problems

OBJECTIVE

• Be able to identify high-risk employees for employee theft:

– Heavy users of drugs or gamblers

– Chronic liars

– Teens?

OBJECTIVE

• Be able to identify the most common methods used by employees to steal:– ?

– ?

– ?

– ?

OBJECTIVE

• Be able to identify the most common methods used by employees to steal:– Selling below retail price (to friends)

– Stealing cash from the register

– Altering register receipts

– Giving away free stuff

OBJECTIVE

• Be able to identify the most common methods used by employees to steal:

– Not recording customer payments

– Fraudulent refunds

– Stealing merchandise

– Taking supplies

– Stealing Time!?

OBJECITVE

• Be able to describe the methods used to prevent employee theft:

– Silent Witness Program

– (See Handout)

OBJECTIVE• Be able to identify in a short essay what

your options are for dealing with an employee you know to be a thief and the pros & cons of each option:– ?

???

OBJECTIVE• Be able to identify in a short essay

what your options are for dealing with an employee you know to be a thief and the pros & cons of each option:

– Doing Nothing

– Talking w/ thief personally/privately

– Talking w/ the thief w/ a partner

– Reporting the thief to management

ACTIVITY OPTION

- Doing Nothing

- Talking w/ the thief personally/privately

- Talking w/ the thief w/ partner

- Reporting the thief to management

PRO CON

CHECK FRAUD

OBJECTIVE

• Be able to describe the various types of checks:

One Party Checks Two Party Checks

Business Checks Payroll Checks

Traveler”s Checks Money Order

Treasury Checks

CHECK TYPES

One Party Checks

Two Party Checks

Business Checks

Payroll Checks

CHECK TYPES

Traveler”s Checks

Money Order

Treasury Checks

OBJECTIVE

• Be able to describe the rules for identifying “Bad”Checks:

– Look at the check’s paper & printing

– Look at the date & for any alterations

– Compare the amt. written w/ #ed amt.

– Compare the signature on the check w/ the signature on a picture ID

Objective: Be able to describe the rules for identifying “Bad”Checks: (Cont.)

– Do not accept two-party, treasury, or payroll checks w/out an OK from Mgt.

– Check the # of the check (age of account).

– Look for relevant information - address, phone, SS #, etc. & compare w/ ID

– Not in pencil please!!!

– Use tele-check or other electronic verification system available

– Don’t accept starter checks

OBJECTIVE

• Be able to identify suspicious behaviors associated w/ “Hot Cards”:

– Customer knows their # but forgot their card!?

– Customers who try to hurry or distract you

– Producing a card from their pocket vs. a wallet or purse

Objective: Be able to identify suspicious behaviors associated w/ “Hot Cards” (cont.)

– Unsigned cards– Poor quality cards (embossing, black strip,

hologram, etc.)

– Cards that won’t scan

OBJECTIVE

• Be able to follow the proper procedure for accepting a credit card

– Use the electronic verification system

– Maintain control of the card

– If your are concerned about the card, ask for an ID

– Compare the signature on the receipt w/ the signature on the back of the card

OBJECTIVE

• Be able to follow the proper procedure for accepting a credit card (Cont.)

– Check the quality of the card’s hologram, embossing, & strip

– Check the expiration date

OBJECTIVE

• Be able to stop the “Fast Change Artist by knowing the one rule to follow:

OBJECTIVE

• Be able to stop the “Fast Change Artist by knowing the one rule to follow:

– Always Get Their Money First!!!

OBJECTIVE

• Be able to take actions that will reduce the chances of being robbed and increase the chance of catching the thief if a robbery occurs

– See Handout