Chapter 16Chapter 16Retail SecurityRetail Security

Retail Establishment CrimesRetail Establishment Crimes

Shoplifting.Shoplifting. Burglary.Burglary. Vandalism.Vandalism. Bad checks.Bad checks. Fraudulent credit cards.Fraudulent credit cards. Employee theft.Employee theft. Robbery.Robbery.

Legal Definition of ShopliftingLegal Definition of Shoplifting

Shoplifting is the theft of retail Shoplifting is the theft of retail merchandise by a person lawfully on the merchandise by a person lawfully on the premises.premises.

Concealment of merchandise is prima Concealment of merchandise is prima facie evidence of intent to shoplift.facie evidence of intent to shoplift.

In many states price changing is also In many states price changing is also considered shoplifting.considered shoplifting.

Types of ShopliftersTypes of Shoplifters

Amateurs:Amateurs: Students.Students. Housewives.Housewives. Vagrants.Vagrants. Alcoholics.Alcoholics. Drug addicts.Drug addicts. Kleptomaniacs.Kleptomaniacs.

Professionals: Those who steal for resale Professionals: Those who steal for resale of merchandise.of merchandise.

Shoplifting MethodsShoplifting Methods

Palming objects.Palming objects. Dropping articles into a receptacle.Dropping articles into a receptacle. Placing items inside clothing.Placing items inside clothing. Wearing items out of the store.Wearing items out of the store. Switching price tags.Switching price tags.

Curtailing ShopliftingCurtailing Shoplifting

Single most effective deterrent is surveillance by Single most effective deterrent is surveillance by an alert, trained sales force.an alert, trained sales force.

This may be supplemented by security officers This may be supplemented by security officers or floorwalkers.or floorwalkers.

Security officers are prevention oriented, Security officers are prevention oriented, seeking to deter crime by their presence.seeking to deter crime by their presence.

Floorwalkers are apprehension oriented, Floorwalkers are apprehension oriented, seeking to arrest and prosecute shoplifters.seeking to arrest and prosecute shoplifters.

Merchandising Techniques to Deter Merchandising Techniques to Deter ShopliftingShoplifting

Keeping displays orderly and not stacking merchandise Keeping displays orderly and not stacking merchandise too high.too high.

Returning to the display any item looked at and not Returning to the display any item looked at and not bought.bought.

Keeping small, valuable items locked in display cases.Keeping small, valuable items locked in display cases. Placing identifying tags on all merchandise.Placing identifying tags on all merchandise. Displaying only one of a pair.Displaying only one of a pair. Not displaying expensive merchandise near exits.Not displaying expensive merchandise near exits. Having small, easily stolen items located by the Having small, easily stolen items located by the

checkout.checkout.

Deterrent Procedures for Deterrent Procedures for ShopliftingShoplifting

Keeping unused checkout lanes closed.Keeping unused checkout lanes closed. Locking the back door.Locking the back door. Having package checks.Having package checks. Carefully checking price tags and bar codes.Carefully checking price tags and bar codes. Maintaining tight controls on fitting rooms and Maintaining tight controls on fitting rooms and

restrooms.restrooms. Issuing receipts.Issuing receipts. Controlling refunds.Controlling refunds. Establishing a communication system.Establishing a communication system.

Physical Controls for ShopliftingPhysical Controls for Shoplifting

Changing the actual store layout.Changing the actual store layout. Posting signs.Posting signs. Installing locks and alarms.Installing locks and alarms. Installing surveillance equipment such as Installing surveillance equipment such as

convex mirrors and/or CCTV.convex mirrors and/or CCTV.

Apprehension of ShopliftersApprehension of Shoplifters

Someone must actually see item being Someone must actually see item being taken and concealed or be reasonably taken and concealed or be reasonably certain item has been taken.certain item has been taken.

Suspect must be kept under continuous Suspect must be kept under continuous observation until apprehension is made.observation until apprehension is made.

This may occur on the premises or outside This may occur on the premises or outside the premises depending on state statute.the premises depending on state statute.

Must have reasonable or probable cause.Must have reasonable or probable cause.

Prosecution of ShopliftersProsecution of Shoplifters

Establish reasonable guidelines for Establish reasonable guidelines for prosecuting shoplifters.prosecuting shoplifters.

Consider the value of the article, along Consider the value of the article, along with the person’s age, number of offenses with the person’s age, number of offenses and attitude.and attitude.

Guard against illegal detention, malicious Guard against illegal detention, malicious prosecution and slander suits.prosecution and slander suits.

Deterring Bad ChecksDeterring Bad Checks Teach personnel to recognize the different types Teach personnel to recognize the different types

of checks and the common types of bad checks.of checks and the common types of bad checks. Establish a check-cashing policy and adhere to Establish a check-cashing policy and adhere to

it.it. Train personnel to examine checks and Train personnel to examine checks and

identification.identification. Record relevant information on the backs of all Record relevant information on the backs of all

checks cashed.checks cashed. Reconcile identity documents with check Reconcile identity documents with check

passers’ characteristics.passers’ characteristics.

High-Risk ChecksHigh-Risk Checks

Second-party checks.Second-party checks. Counter checks.Counter checks. Illegible checks.Illegible checks. Post-dated checks.Post-dated checks. Out-of-town checks.Out-of-town checks.

Types of Bad ChecksTypes of Bad Checks

Forged or altered checks.Forged or altered checks. No-account checks.No-account checks. Nonsufficient funds checks.Nonsufficient funds checks.

Check ExaminationCheck Examination

Look at the printed name and address.Look at the printed name and address. Check number, date, payee, numerical Check number, date, payee, numerical

and written amount, bank and address and and written amount, bank and address and signature (for endorsement).signature (for endorsement).

Accept no checks that are illegible, that Accept no checks that are illegible, that are not written in ink or that contain are not written in ink or that contain erasures or written-over dates or amounts.erasures or written-over dates or amounts.

Check IdentificationCheck Identification

Persons presenting checks to cash should Persons presenting checks to cash should be required to produce identification be required to produce identification containing a physical description containing a physical description (preferably a photograph) and a signature.(preferably a photograph) and a signature.

The description should be compared with The description should be compared with the person.the person.

The signature should be compared with The signature should be compared with the signature on the check.the signature on the check.

Credit Card LossCredit Card Loss

Compare the signature on the card with Compare the signature on the card with that on the sales slip.that on the sales slip.

Check the card’s expiration date.Check the card’s expiration date. Establishing a reasonable floor release Establishing a reasonable floor release

limit.limit.

Special Employee Security Special Employee Security ProblemsProblems

Access to merchandise and cash.Access to merchandise and cash. Specific pricing procedures, cash-handling Specific pricing procedures, cash-handling

procedures and refund procedures are procedures and refund procedures are essential.essential.

Personnel should be rotated periodically.Personnel should be rotated periodically. Responsibilities should be separated.Responsibilities should be separated.

Deter Employee Theft by Price Deter Employee Theft by Price AlterationsAlterations

Allow only authorized employees to set Allow only authorized employees to set prices and mark merchandise.prices and mark merchandise.

Mark merchandise by machine or rubber Mark merchandise by machine or rubber stamp, never pencil.stamp, never pencil.

Conduct periodic audits of prices recorded Conduct periodic audits of prices recorded and prices changed.and prices changed.

Check on the “popular” salesperson.Check on the “popular” salesperson.

Reduce Losses of CashReduce Losses of Cash

Establish strict cash-handling procedures.Establish strict cash-handling procedures. Use a tamper-proof recording system.Use a tamper-proof recording system. Have each clerk responsible for his/her Have each clerk responsible for his/her

own receipts.own receipts. Have cash receipts balanced by someone Have cash receipts balanced by someone

else.else. Perform unannounced audits.Perform unannounced audits. Use honesty shoppers.Use honesty shoppers.

Honesty ShoppingHonesty Shopping

Honesty shopping, or a shopping service, Honesty shopping, or a shopping service, tests the honesty of sales personnel who tests the honesty of sales personnel who handle cash.handle cash.

RefundsRefunds

Require all employees to comply with the Require all employees to comply with the return/refund policy.return/refund policy.

Keep tight control of all credit documents, Keep tight control of all credit documents, and match items to the return vouchers.and match items to the return vouchers.

Conduct periodic audits of return Conduct periodic audits of return vouchers.vouchers.

Shopping Center SecurityShopping Center Security

The primary objectives of shopping center The primary objectives of shopping center security are loss prevention and public security are loss prevention and public relations.relations.

Summary QuestionsSummary Questions

What are the most frequent crimes What are the most frequent crimes committed against retail?committed against retail?

What legally constitutes shoplifting?What legally constitutes shoplifting? How are shoplifters classified?How are shoplifters classified? What methods are commonly used to What methods are commonly used to

shoplift?shoplift? What preventive methods can be used to What preventive methods can be used to

curtail shoplifting?curtail shoplifting?

Summary QuestionsSummary Questions What basic difference exists between What basic difference exists between

security officers and floorwalkers?security officers and floorwalkers? What merchandising techniques, What merchandising techniques,

procedures and physical controls can be procedures and physical controls can be used to deter shoplifting?used to deter shoplifting?

When and how should people suspected When and how should people suspected of shoplifting be apprehended?of shoplifting be apprehended?

What factors influence when prosecution What factors influence when prosecution is advisable?is advisable?

Summary QuestionsSummary Questions

How can losses from bad checks be How can losses from bad checks be deterred?deterred?

What types of checks are considered high-What types of checks are considered high-risk?risk?

What are the most common types of bad What are the most common types of bad checks?checks?

How should checks be examined?How should checks be examined? What identification should be required?What identification should be required?

Summary QuestionsSummary Questions

How can credit card loss be deterred?How can credit card loss be deterred? What types of employee theft frequently What types of employee theft frequently

occur in retail and what preventive occur in retail and what preventive measures can be taken?measures can be taken?

What is honesty shopping?What is honesty shopping? What are the two primary objectives of What are the two primary objectives of

shopping center security?shopping center security?