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
Internal Theft
Insurance Fraud
Counterfeit Money
Identity Theft
Bad Checks
Credit Card Theft
Armed Robbery
Vendor Fraud
???
OBJECTIVE
• Be able to describe the “cost”
of shrinkage to you!!:
Raises
Trust
Discounts
Promotions
Benefits
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
Between Legs
Packages
Pockets
Umbrellas
Newspaper Slings
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