Loss prevention exam 2
Loss prevention exam 2 retl 330
Popular in Loss prevention
Popular in Retail
This 6 page Study Guide was uploaded by Sarah Albert on Friday January 29, 2016. The Study Guide belongs to retl 330 at University of South Carolina taught by karen edwards in Spring 2016. Since its upload, it has received 24 views. For similar materials see Loss prevention in Retail at University of South Carolina.
Reviews for Loss prevention exam 2
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 01/29/16
Apprehension: ● call for backup ● observe surroundings for any objects that could be used against you. if you have reason to believe suspect is armed, do not attempt an arrest ● make sure you are certain they have the merchandise, if in doubt let them go ● avoid any form of contact if possible. ● if suspect denies having merchandise. be specific ● the legal pitfall ○ step 1 suspect must be seen to have entered an aisle and removed an item. there must be certainty that the suspect did not bring the item with them in the store ○ step 2 suspect must be seen concealing the item ○ maintain a constant and uninterrupted surveillance of the suspect from the time the item is concealed to the time the arrest is made ○ must observe the suspect walking out of the store without making any attempt to pay for item ● avoid chasing excessive force or threatening ● ask suspected shoplifter to come in a private office for discussion ● use wicklanders or other method ● keep and tag stolen items Bad checks: ● NSF Check: nonsufficient funds ● writing check for closed account ● fake or stolen checks bad stop: stopping someone for stealing with lack of probable cause Behavioral indicators: ● shopping often rarely purchasing ● shopping very early/late ● many items in fitting room, few out ● disruption in store ● laying jacket in cart ● sending clerk away ● group enters store all at once Bomb threat: Booster: Person who shoplifts. Uses booster bag. Cargo theft: Chargeback: when a cardholder's card is stolen, the bank charges the retailer transaction value plus fees. Credit card fraud: ● skimming point of sale terminals and atms ● mailbox theft ● sc law ○ person uses another's financial info without permission of owner ○ own use or third party use Crisis Management: It is critical that the company be prepared ahead of time if it is to survive. ● The goal of developing your plan is to get your people thinking and talking about what might happen and how that can be effectively managed. CTPAT: ● primary goal to stop abuses of commercial trading lanes by terrorists and others who seek to corrupt the process ● if a company has wellconceived and appropriate internal controls in place, they enhance the likelihood that their products will arrive on time, intact, and without dangerous or unwanted goods substituted for the products they expected to receive Customs: when goods cross national borders, customs is responsible for controlling the flow of goods into and out of our country ● inspections can cause substantial delays, product damage, spoilage of perishable items, and compromised shiping integrity that may lead to other loss prevention concerns Fence: Pays shoplifter certain percent of price. Sells good to pawn shops, flea markets, street corners 30% of retail value Fraudulent returns: Return merchandise to retail stores 100% + tax of retail value Grab and run: Kick back: Merchant Protection Statute: ● shoppers accused of shoplifting sometimes turn around and sue the business ● South Carolina law has a builtin defense for merchants who stop a patron who is reasonably suspected of shoplifting. ● The merchant has a defense to his actions in court if the accused person was reasonably delayed for an appropriate amount of time and the merchant had probable cause to believe the accused person was shoplifting. Natural Disasters: ORC: professional shoplifti, cargo theft, retail crime rings and organized crimeoccurring in retail environments. Padding: stuffing extra items into packages they intend to purchase Probable cause: is good faith that a person committed a crime based on the grounds that would make a reasonable person think the same ○ you see a person select, conceal, or convert goods ○ don't lose sight of suspect ○ suspect does not pay for good ○ suspect demonstrates intent to leave Profiling: potential liability. suspecting someone of committing a crime just because of their race, group, etc. Purchase order: Return Fraud: ● False name on refund ● Returning goods "purchased" with stolen/fraudulent credit & gift cards ● Counterfeit Receipts ● Ticket Switching ● Wardrobing Robbery: Seal: Shoplifting: ● Transfer goods from store or area of store with intent ● Ticketswitching or alteration ● Concealing Short Packaging: Skimming: information on a credit card is copied, usually when the owner uses the card to make a purchase, and is then loaded onto a fake card to be used fraudulently. Supply chain Management: involves planning and processing orders; handling, transporting, and storing the products purchased, processed, and/or distributed, and managing the inventory of goods in an efficient and coordinated manner ● primary objective is to fulfil business demands through the most efficient use of resources Targeted Thieves: Third party act: Threat Assessment: Ticket switching: Buy expensive item with a cheaper ticket. Sometimes returned for real price. Vendor log: Wardrobing: the return of a used but nondefective item, such as clothing or electronics Explain how the retailers can prevent and control loss while merchandise is in the supply chain: ● The retailers that maintain their own transportation have a distinct advantage. They can screen and hire their own drivers, invest in security devices to add to their tractors and trailers, and establish intransit policies and procedures that your specific drivers use while transporting shipments ● more often than not, companies contract out their transportation services and do not have direct control over their transportation providers ● policies for third party providers ○ requiring background checks for all drivers and anyone who has visibility of your shipping info ○ policy and procedure manuals that include security requirements and can be randomly audited ○ requiring drivers to produce valid drivers license and vehicle registration ○ making drivers aware of your specific security requirements on each trip ○ drivers know how to contact you in an emergency ○ obtaining drivers contact info so you can contact them at any time ○ fully fueled vehicle so they minimize the number of stops they have to make ○ drivers route themselves directly to the route of delivery, safely and efficiently as possible within lawful bonds and a min number of stops ○ no stops made within first 200 miles of trip ○ installing gps on both tractors and trailers ○ drivers to lock any unattended tractor trailers with the engine turned off ○ trailers should be parked with their rear doors against a fixed object to prevent them from being opened whenever possible ○ loaded trailers are secured with a sufficient locking device at all times ○ store security right to inspect driver’s tractor and trailer for stolen merchandise before driver leaves ● drivers are more likely to steal on weekends and holidays when drivers are forced to leave trailers unattended for long periods of time. delayed detection ● resources available that provide citylevel risk mapping based on historical data that can be used to set up drivers particular route ● risk management can map out drivers trip, highlighting areas that have been prone to cargo theft in the past ● create “no stop zones” ● gps tracking capability is greatest asset that exists in investing and recovering stolen cargo, also helps identify potential acts of pilfering ● strict rotation of drivers through various delivery routes ● driver calls dispatcher and dispatcher contacts the store to notify them of his arrival. extra set of eyes when driver makes his way in with paperwork ● do not allow drivers to break seals no matter what the weather or circumstance, or to remain unattended in the receiving area ● your relationships with law enforcement around the country will be your last chance for a successful recovery. ○ drivers pass background checks ○ loaded trailers should be locked and sealed at all times ○ any area with loaded trailers should have secure fencing ○ facility entrances must have cctv systems ○ ask to see copies of training programs as it relates to the handling of your merchandise ○ drivers must never take a load home ○ several gps devices ● Don't react passively to loss ● After a theft has been committed, have it thoroughly investigated rather than simply filing a police report or insurance claim. ● establish security standards for you and your partners Describe the various ways in which shoplifting occurs, and how retailers can reduce the opportunities for such losses. Methods of shoplifting ● if operating as a group, one person distracts lp personnel, when lp focuses on person who appears to be a shoplifter, the accomplice is able to carry out their act unnoticed ● conceal stolen merchandise ● boxes with fake bottoms or products stuffed into an emptied out box ● grab and run to a waiting getaway vehicle ● push chairs or car seats in the shopping trolleys ways of preventing ● shoplifters will operate in an environment they perceive as easy. ensure your store is not an easy target ● trained employees- employees trained in shoplifting awareness are the most effective tool ● cctv- shoplifters test to see if it works ● eas tagging system ● strategic merchandising is ensuring that merchandise is sufficiently secured without portraying a negative perception to legitimate customers. ● exceptional customer service Describe how point-of-sale risks affect retailers and the counter-measures related to each. Return fraud ● Merchants expect about five percent of all holiday returns to be fraudulent ● "wardrobing" - the return of a used but non-defective item, such as clothing or electronics ● increasing percentage of return fraud is now being done with digital receipts, popular with many customers and being heavily promoted by retailers ● To combat this crime wave, many stores now require customers to show government-issued identification, such as a driver's license, to make a return. That information may be entered into a database to target "serial" returners. Giftard fraud ● the switch An employee receives a gift card as payment from a customer. The card after purchase still has a balance. The employee switches the card with a zero balance card lying by the register ● laundering An employee rings the purchase of a gift card on register #1 for $100. They complete the purchase, but do not put any money in the register (no customer is present). They go to register #2 and purchase two (2) $50 gift cards, using the gift card of $100 as tender. They then go back to register #1 and Post Void the original sale. ● Register shutdown An employee rings up a gift card and activates it at the point of purchase. Before tendering the transaction they unplug or conduct a hard shutdown of the register ● Stealing the numbers organized thieves will get their hands on the gift card numbers (collusion with employees) and replicate gift card "mag" stripes, thereby making a duplicate of the gift card. Using it or selling it quickly, the card gets into play and the first to use it is normally the thief. ● "customers" stealing blank cards off display, taking them out of the store, cloning the cards and then returning the original cards to the store. The "customer" then uses an IVR or Web system to continuously monitor the balance on the cloned card until a balance exists (someone legitimately purchased the cloned card off display). They (the fraudulent customer) can then use the card immediately after a balance exists. ● any retailers are finding out that their biggest gift card fraudsters are their employees. ● employees switching customer's gift cards with zero balance cards and using the customer card to purchase merchandise or sell is one of the known methods ● Make certain used gift cards are discarded properly and keep track of blank cards. ● Keeping gift cards in an area where they can be seen by employees will help to deter the theft of blank cards. Noticing missing sections of your gift card display is another indicator of concern. ● Encrypted magnetic strips can prevent card duplication. ● reverse shoplifting steal card, copy strip, return to sto k for reloading) ● bad checks ● do not ○ accept post dated check ○ agree to hold check at time of transaction ○ take check if you have reason to believe it was no good stolen or forged credit card fraud ○ ssuing bank charges retailer transaction-value plus fees (~30) when cardholder did not initiate transaction ○ Check signatures and verify DL picture ○ Check POS terminals ● Explain the types of crises that affect retailers and how to prepare for, handle, and recover from such occurrences
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'