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!! : RaisesPromotions TrustBenefits DiscountsYOUR 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, (or almost 50% of sales!!!) To confirm, multiply $888, 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: PursesPockets Umbrellas Between Legs Newspaper Slings PackagesCarriages 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