1. CJ-180 Private Security Seminar Unit 6

2. Overview of Unit 6  Internal Theft  Personnel Issues 2

3. Internal Theft 1 in every 27 employees is apprehended for theft from their employer. Internal theft in the retail business outstrips the loss from shoplifting by approximately 7.9 times. (Fischer, Green, Halibozek, 2008, p. 215). The key is accessibility! 3

4. Source: National Retail Federation. Inventory Shrinkage. Sources of Inventory Shrinkage (2006). Retrieved June 5, 2010, from http://www.nrf.com/modules.php?name=Pages&sp_id=1261#Use 4

5. Theft Source: National Retail Federation. Inventory Shrinkage. Sources of Inventory Shrinkage (2006). Retrieved June 5, 2010, from http://www.nrf.com/modules.php?name=Pages&sp_id=1260 5

6. Honesty Moral honesty is a feeling of responsibility and respect that develops during an individual’s formative years Conditioned honesty results from fearing the consequences of being caught (Fischer, Green, Halibozek, 2008, p. 288). 6

7. Dishonesty Reasons Get back at Management I deserve it Keeping up with the Jones’ No one cares Everyone is doing it Excitement 7

8. Theft Triangle 8

9. Danger Signs  Living beyond one’s means  Financial Irresponsible  Bad Debt  Genuine financial problems  Gambling  Drugs or Alcohol 9

10. What Employees Steal Personal use items Cash Resale Office Equipment Furnishings Other Employee’s Personal Property 10

11. Methods of Theft Outright Steal Merchandise Padding overtime Mailroom theft Trash Check Forgery Collusion with vendors or other employees 11

12. Controlling Theft Security Survey Management’s Responsibility Management’s Support Communicating the Changes Don’t expect what you don’t inspect! 12

13. Prevention Screening process of applicants References Employment History 1. Show signs of instability in personal relations 2. Lack job stability: a job hopper does not make a good job candidate 3. Show a declining salary history or are taking a cut in pay from the previous job 4. Show unexplained gaps in employment history 5. Are clearly overqualified 6. Are unable to recall or are hazy about names of supervisors in the recent past or who forget their addresses in the recent past 13

14. Federal Regulations Confining and regulating questions Pregnancy Discrimination Act of 1978 Executive Order 11246 (affirmative action) Age Discrimination in Employment Act EEOC Sexual Harassment Guidelines Americans with Disabilities Act 14

15. Pre-Employment Screening  Let’s take a closer look at the pre- employment screening process and what is legal or illegal to ask of a potential employee. 15

16. Is this Question Legal? Do you own or rent your home? 16

17. Is this Question Legal? Do you own or rent your home? NO Acceptable What is your place of residence? How long have you resided in this state or city? 17

18. Is this Question Legal? Are you 18 years of age or older? If not, state your age. 18

19. Is this Question Legal? Are you 18 years of age or older? If not, state your age. Yes Unacceptable What is your birth date? 19

20. Resume How hard would it be to manipulate references on a job application? 20

21. Red Flags References with the same phone number or address Unexplained gaps in jobs Financial problem in credit report Different answers to same questions on different forms/resume. 21

22. Backgrounding A discrete and more complete background investigation Integrity Tests Polygraph Exam Psychological Stress Evaluator (PSE) Personal Security Inventory (PSI) 22

23. Stress Indicators The polygraph, PSE, MRI scan, and infrared face scan operate on the premise that lying creates conflict, which in turn causes anxiety leading to stress reactions. Stress reactions typically include increased respiration, increased pulse rate, higher blood pressure, digestive disorders, perspiration, temperature change, muscle tension, and pupil dilation. (Fischer, Green, Halibozek, 2008, p. 305). 23

24. Americans w/Disabilities Act The Americans with Disabilities Act (ADA) is a federal statute requiring employers to focus on the abilities of applicants rather than on their disabilities. (Fischer, Green, Halibozek, 2008, p. 308). 24

25. Screening Drug Test Credit Reports Motor Vehicle Records Civil Litigation Records 25

26. Wrap Up Internal controls such as security surveys, spot checks, inventory, backgrounding, etc can have a great impact on the amount of shrinkage a company experiences. Better to prevent the possibility of internal theft than to react to it once it has occurred. 26

27. Questions 27

28. Key to Success! Please remember to contact me if you have any questions or if you need help with anything. Tbashore@kaplan.edu Protect2357 – AIM I am looking forward to working with you to unlock your future! 28

29. References Fischer, R.J, Green, G., & Halibozek (2008). Introduction to Security. (8 th ed.). Burlington, MA: Butterworth and Heinemann 29