Crime Prevention Part I BUSINESS CRIME PREVENTION © ©TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS

Crime Prevention Part ICrime Prevention Part IBUSINESS CRIME BUSINESS CRIME

PREVENTIONPREVENTION

©TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS (2009)

Institute for Criminal Justice Studies (ICJS)

BUSINESS CRIME PREVENTIONBUSINESS CRIME PREVENTION

ROBBERY AWARENESSROBBERY AWARENESS




Of the crimes that businesses face, robberyrobbery involves the least loss of money or other assets. Unlike other crimes, however; robbery puts the employees in physical dangerphysical danger. A business can take some simple preventative measures to reduce their risk of being a robbery victim. The way a business is managed, and the physical conditions of the building can help prevent robberies.

ROBBERY AWARENESSROBBERY AWARENESS


Have at least two employees open and close the businessDo not release personal information to strangersKeep purses and personal valuables locked in desks or lockersInstall a robbery alarm

ROBBERY AWARENESSROBBERY AWARENESSPrevention TipsPrevention Tips


Place a surveillance camerasurveillance camera behind the cash register facing the front counter. Replace videotapes regularly Don't use marked "moneybags" that make it obvious to would-be robbers you are carrying money for deposit

ROBBERY AWARENESSROBBERY AWARENESSPrevention Tips – Cont’dPrevention Tips – Cont’d



Keep a low balance in the cash register

Place excess money in a safe or deposit it as soon as possible


Handle cash carefully. Avoid making your business a tempting target for robbers. Keep the amount of cash in registers low. Drop all large bills right away. If a customer tries to pay with a large bill, politely ask if he or she has a smaller one. Explain that you keep very little cash on hand.



Use only one register at night. Leave other registers empty and open. Tilt the register drawer to show there is no money in it




Cooperate with the robber for your own safety and the safety of others. Comply with a robber's demands. Remain calmRemain calm and thinkthink clearly. Make mental notesmental notes of the robber's physical descriptionphysical description and other observationsobservations important to law enforcement officers




If you have a silent alarm and can reach it without being noticed, use it. Otherwise, wait until the robber leaves

Be careful, most robbers are just as nervous as you are



ARMED ROBBERYARMED ROBBERY


Keep your business well-lit, inside and outside. Employees should report any burned-out lights to the business owner or manager. Keep trees and bushes trimmed, so they don't block any outdoor lights.



Make sure the sales counter can be seen clearly. Don't put up advertisements, flyers, displays, signs, posters or other items on windows or doors that might obstruct the view of the register from inside or outside your business. The police cruising by your store need to see in.



Stay alert! Know who is in your business and where they are. Watch for people who hang around without buying anything. Also, be aware of suspicious activity outside your place of business. Write down license numbers of suspicious vehicles if visible from the inside of your business



Try to greet customers as they enter your business. Look them in Look them in the eyethe eye, and ask them if they need help. Your attentionattention can discourage a robberdiscourage a robber

If you see something suspicious, call the police. Never try to handle it yourself. It could cost you your life



Use care after dark. Be cautious when cleaning the parking lot or taking out the trash at night. Make sure another employee inside the business keeps you within eye contact while you are involved in work details outside of your building



Make sure important signs stay posted. For example, the front door should bear signs that say, "Clerk Cannot Open the Time Lock Safe."

If your business is robbed put your safety first. Your personal safety is more important than money or merchandise.



Don't talk except to answer the robber's questions

Don't stare directly at the robber

Don't make any sudden moves.

Prevent surprises, keep your hands in sight at all times



Tell the robber if someone is coming out of the back room or vault or working in another area of your business.

Don't chase or follow the robber out of your place of business.

Leave the job of catching the robber to the police.


Remind business owners of theirRemind business owners of theirliability for shooting an innocent!liability for shooting an innocent!



INTERNAL THEFTINTERNAL THEFT



INTERNAL THEFTINTERNAL THEFT – Cost – Cost Association of Loss PreventionAssociation of Loss Prevention

PREVENTIONPREVENTION

COSTCOSTDO THE MATH IT IS FAR CHEAPER TO PREVENTPREVENT!

LOSS ASSOCIATED LOSS ASSOCIATED COSTCOST

LOSS ASSOCIATED LOSS ASSOCIATED COSTCOST

SALES LOSSESSALES LOSSES due to shrinkage – due to shrinkage – whether employee, customer, or whether employee, customer, or vender theft are a constant plague vender theft are a constant plague and drain upon retailersand drain upon retailers..

• Company is more vulnerable to Company is more vulnerable to employee theft than shopliftingemployee theft than shoplifting

• ““A man’s enemies are men of his A man’s enemies are men of his own house”…Biblical sayingown house”…Biblical saying



Dishonest employees can steal Dishonest employees can steal several items at one time or several items at one time or several items throughout the dayseveral items throughout the day

Employees steal from their employers for opportunity, desire, and/or excitementexcitement.



Some steal for retaliation, no raise or boss did not give them day off the employee ask for. A myriad of reasons exist

Security experts generally agree that loss to employee theft is greatergreater than loss to shoplifters



Series of systems that guide Series of systems that guide employee activities. Procedural employee activities. Procedural controls that are beneficial and controls that are beneficial and can be cost effective and easily can be cost effective and easily implementedimplemented

Designed for prevention not Designed for prevention not detectiondetection

PROCEDURAL CONTROLSPROCEDURAL CONTROLS


Attitude of management towards Attitude of management towards their employees their employees

Is cost and effort proportionate Is cost and effort proportionate to the problem?to the problem?

If employee theft is discovered If employee theft is discovered employer should prosecute or employer should prosecute or thief just moves around.thief just moves around.

PROCEDURAL CONTROLSPROCEDURAL CONTROLS


Manipulate process for spending Manipulate process for spending company’s moneycompany’s moneyCommonly fall prey to Commonly fall prey to unscrupulous vendorsunscrupulous vendorsGratuity policy will help preventGratuity policy will help preventManagement, purchasing agents Management, purchasing agents and vendors need to all know the and vendors need to all know the rules or company policiesrules or company policies

PURCHASING CONTROLSPURCHASING CONTROLS


FRAUD practiced in purchasing FRAUD practiced in purchasing consist of vendors kicking back consist of vendors kicking back part of the sales price to the part of the sales price to the buyer or other employees who buyer or other employees who authorize purchasesauthorize purchasesPurchasing agent vendor Purchasing agent vendor selection feeselection feeReceive & File competitive bidsReceive & File competitive bids



Vendor return a percentage of Vendor return a percentage of the gross order to the buyerthe gross order to the buyerAdded cost for the kick back is Added cost for the kick back is borne by the ownerborne by the ownerOwner receives shoddy service Owner receives shoddy service or inferior goods (merchandise)or inferior goods (merchandise)Rotation of vendorsRotation of vendors



Written notification to all biding Written notification to all biding that contracts are not awarded to that contracts are not awarded to vendors who offer giftsvendors who offer giftsPeriodic expense analysis Periodic expense analysis performed by outside auditing performed by outside auditing firmfirmCompany policy that spells out Company policy that spells out no gratuities and sanctions that no gratuities and sanctions that will be taken against violatorswill be taken against violators



RECEIVING IN A PROTECTED AREARECEIVING IN A PROTECTED AREA

• Best to receive goods and Best to receive goods and material within a fenced in area material within a fenced in area where only suppliers (delivery) where only suppliers (delivery) vehicles and company vehicles vehicles and company vehicles are authorizedare authorized

• Do not allow employee parking Do not allow employee parking within 50 feet of receiving door. within 50 feet of receiving door.



RECEIVING IN A RECEIVING IN A PROTECTEDPROTECTED AREA AREA

• Layout arranged to eliminate Layout arranged to eliminate blind spotsblind spots

• Prohibit leaving merchandise on Prohibit leaving merchandise on receiving dock, keep doors receiving dock, keep doors locked. locked.



SHRINKAGE CONTROL METHODS SHRINKAGE CONTROL METHODS MOST FREQUENTLY USEDMOST FREQUENTLY USED

• Training ProgramsTraining Programs• HS Lock and chain devicesHS Lock and chain devices• Guards/DetectivesGuards/Detectives• Observation Booths - mirrorsObservation Booths - mirrors• Fitting room attendantsFitting room attendants• Visible and concealed camerasVisible and concealed cameras• Secure storage cages, Etc.Secure storage cages, Etc.

SECURITY ENHANCEMENTSSECURITY ENHANCEMENTS



SHOPLIFTING AWARENESSSHOPLIFTING AWARENESS



StealingStealing a coke from a local convenience store (STOP n ROBSTOP n ROB) or a pen from a stationary store may not seem like a major crime to the casual observer, but to the small businessperson fighting for survival, it can be disastrous!

SHOPLIFTINGSHOPLIFTING

TYPES of SHOPLIFTERSTYPES of SHOPLIFTERS• ““The AMATUREThe AMATURE” steals on impulse

because he/she desires an item.• “The ProfessionalThe Professional” in the business of

stealing as a way of life. Highly skilled - steals items that can be quickly sold. They concentrate on high demand items, TV’s, Stereos, small appliances. Cases or scopes out (Recons) his/her target.

SHOPLIFTING (THEFT)SHOPLIFTING (THEFT)


METHODS of OPERATION METHODS of OPERATION

Make work alone or in groups.

One member starts argument with employee/management other steals.

Large bags, packages, coats, newspapers, or wear clothing under their own clothes, Etc.



METHODS of OPERATION – METHODS of OPERATION – Cont’dCont’d

Juveniles and professionals tend to work in groups.

Impulse shoplifters work alone



Train employees to:

Be alert to shoplifters early warning signals.

Watch the way people walk

Count number of items customer takes into fitting room Look Look

SHOPLIFTINGSHOPLIFTINGEMPLOYEE TRAININGEMPLOYEE TRAINING


Train employees - Continued:Shoplifters do not want any attention

Customers lingering in one area

Look for switched labelsLook for switched labels

Look for person with “DUCK Look for person with “DUCK TAPE” around their wrist.TAPE” around their wrist.

SHOPLIFTINGSHOPLIFTINGEMPLOYEE TRAININGEMPLOYEE TRAINING


“PLAN STORE LAYOUT WITH PLAN STORE LAYOUT WITH DETERRANCE IN MINDDETERRANCE IN MIND”.

Maintain adequate lightingKeep protruding wings and end displays lowKeep high value pilferable items behind counter.

SHOPLIFTINGSHOPLIFTINGSECURITY RECOMMENDATIONSSECURITY RECOMMENDATIONS


“PLAN STORE LAYOUT WITH PLAN STORE LAYOUT WITH DETERRANCE IN MINDDETERRANCE IN MIND” – Cont’d.

Noise alarms on un-locked exit doors.

Merchandise alarms



“USE PROTECTIVE PERSONNEL & USE PROTECTIVE PERSONNEL & EQUIPMENTEQUIPMENT” – Continued:

Two-way mirrors

Convex Wall Mirrors

Closed-circuit television©TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS (2009)


“USE PROTECTIVE PERSONNEL & USE PROTECTIVE PERSONNEL & EQUIPMENTEQUIPMENT” – Continued:

Detectives posing as customers

Uniformed off-duty Police Officers

Uniformed Security Officers



ARREST & PROSECUTIONARREST & PROSECUTION”.

As a “Crime Prevention” practitioner be prepared to offer advice to store owners or managers concerning the arrest and prosecution of shoplifters detectives posing as customers

SHOPLIFTINGSHOPLIFTINGARREST & PROSECUTIONARREST & PROSECUTION


http://www.retailprotectionspecialists.com/images/shoplift_fight_k5cb.jpg

http://www.retailprotectionspecialists.com/images/shoplifting.jpg

ARREST & PROSECUTIONARREST & PROSECUTION”.

““Be prepared as many will be Be prepared as many will be opposed to this form of opposed to this form of prevention. Many corporate prevention. Many corporate offices will not allow their store offices will not allow their store managers do this – due to managers do this – due to perception of bad publicityperception of bad publicity””

SHOPLIFTINGSHOPLIFTINGARREST & PROSECUTIONARREST & PROSECUTION



CHECKS & CREDIT CARDSCHECKS & CREDIT CARDS




Most businesses cash checks for convenience to customers to encourage new or continued patronage.



Laxity on the part of business people, combined with their desire to increase sales, makes fraudulent checks and fraudulent use of credit cards (Theft of Service) make them a significant problem.




For every careful merchant who refuses to accept a check there is another down the street who will accept it.

The criminal need only find his mark.

As you do your commercial surveys today you will see for yourself that many businesses do not havedo not have an established check cashing procedure or policy



THIS IS NOT A GOODTHIS IS NOT A GOODWAY TO STIMULATEWAY TO STIMULATETHE ECONOMY!THE ECONOMY!

Lose business (#1 Reason)Lose business (#1 Reason)

Customer convenienceCustomer convenience

Competition does itCompetition does it

Encourages impulse buyingEncourages impulse buying

Reduces cash handlingReduces cash handling


Why do business people feel that they Why do business people feel that they have to accept Checks and Credit Cards?have to accept Checks and Credit Cards?



http://www.americanexpress.com/apply/cgi-bin/page.cgi?24/21030/B/218

http://www.americanexpress.com/apply/cgi-bin/page.cgi?76/21246/b/222

http://requestcredit.com/apply.php?page_no=8374945&prd_id=2244

http://www.creditcard321.com/go/chsfreedom.htm

Alienate customersAlienate customers & Lose business Lose business

Lack of training on how to thoroughly examine examine checks

Time training employeesTime training employees

Time and expense of prosecutionTime and expense of prosecution

CHECKS & CREDIT CARDSCHECKS & CREDIT CARDSWhy are many business people reluctant Why are many business people reluctant to have strict policies and enforcement to have strict policies and enforcement when accepting checks and credit cards? when accepting checks and credit cards?


Checks and Credit CardsChecks and Credit CardsList the main causes of loss from List the main causes of loss from fraudulent checks and credit cards.fraudulent checks and credit cards.

LaxityLaxity

Failure to thoroughly examineexamine check

Failure to electronically verify check

Failure to require proper ID

Fraudulent ID©TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS (2009)

Checks and Credit CardsChecks and Credit CardsAcceptable forms of IDAcceptable forms of ID

Primary

Valid Valid driver’sdriver’s licenselicense or DPS ID or DPS ID with picturewith picture

MilitaryMilitary ID with picture ID with picture

PassportPassport

Secondary.Most valid form of identification for checkMost valid form of identification for checkcashing is VALID DRIVERS LICENSE! cashing is VALID DRIVERS LICENSE!

VILIGANCE CAN MAKE A VILIGANCE CAN MAKE A DIFFERENCE!DIFFERENCE!

Sound policies and procedures for check Sound policies and procedures for check cashing and credit card use.cashing and credit card use.

•Employee trainingEmployee training

•Strict enforcement of policyStrict enforcement of policy

•Post policyPost policy

•Electronic verificationElectronic verification

•Don’t return card and DL until verified.Don’t return card and DL until verified.

•Patron signs check in front of clerkPatron signs check in front of clerk

SECURITY RECOMMENDATIONSSECURITY RECOMMENDATIONS


Do not accept out-of-state or to a 3rd Do not accept out-of-state or to a 3rd party check starting with low number, party check starting with low number, made out to cashmade out to cash

Limit amount of purchaseLimit amount of purchase

Management approval for over amountManagement approval for over amount

Thoroughly examine check and IDThoroughly examine check and ID

Compare signatures, and photo, age, etcCompare signatures, and photo, age, etc

Compare written and numerical amountCompare written and numerical amount

Do not accept pre or post dated checksDo not accept pre or post dated checks

SECURITY RECOMMENDATIONSSECURITY RECOMMENDATIONSContinuedContinued

Check Tampering IndicatorsCheck Tampering IndicatorsThe different characteristics of a check, The different characteristics of a check, including the information contained on the including the information contained on the front of a check.front of a check.

Complete legible, accurate, no write-over'sComplete legible, accurate, no write-over's

Look for signs of tamperingLook for signs of tampering

Name and address printedName and address printed

American Banker’s Association numbersAmerican Banker’s Association numbers

Bank name and locationBank name and location

All printing should be qualityAll printing should be quality

Payee signature.Payee signature.

American Banker’s American Banker’s Association numbersAssociation numbers

Bank’s Bank’s NameName

Account Owners Account Owners Name & AddressName & Address

George D. Little Memorial RET FundGeorge D. Little Memorial RET Fund $10,000,000.00$10,000,000.00

Ten million dollars and/no sense for writing this checkTen million dollars and/no sense for writing this check

David H. WilliamsDavid H. Williams


The different characteristics of a The different characteristics of a check, including the information check, including the information contained on the front of a check.contained on the front of a check.

Magnetic Ink Character Magnetic Ink Character Recognition numbers, dull Recognition numbers, dull finish, slightly raisedfinish, slightly raised

MICR numbers always begin MICR numbers always begin 5+5/8” from right edge5+5/8” from right edge

At least 1, butAt least 1, but as many as 3as many as 3 perforated edges.perforated edges.


Checks and Credit CardsChecks and Credit Cards

What info should clerk record on front of What info should clerk record on front of check?check?

Record on front of check:Record on front of check:

DL #DL #

DOBDOB

Supporting IDSupporting ID

PhonePhone

Employee ID.Employee ID.

Less than 60 Less than 60 secondsseconds

0110005601100056

10-13-7510-13-75


SOURCESSOURCES

Handbook of Loss Prevention and Crime Prevention (Fourth Edition) Lawrence J. Fennelly.


Presenter Contact Information

Institute for Criminal Justice Studies (ICJS)350 N. Guadalupe, Suite 140, PMB 164

San Marcos, Texas 78666.

877-304-2727 www.cscs.txstate.edu ©TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS (2009)

http://www.cscs.txstate.edu/

PREPARATION FOR BUSINESS PREPARATION FOR BUSINESS CRIME PREVENTION SURVEYSCRIME PREVENTION SURVEYS

Does everyone know their team assignment? Does everyone have directions to site where you

will conduct your survey? Reminder you must do afternoon and evening

observation. Work as a TEAM Arrange a location where you can all sit together

and review findings – exchange notes. Complete your individual survey reportindividual survey report using

your sample as a reference; in addition to the training your have received this week. Report due tomorrow morning – first thing!

PREPARATION FOR BUSINESS PREPARATION FOR BUSINESS CRIME PREVENTION SURVEYSCRIME PREVENTION SURVEYS

This is almost like the slogan from “Outback Steakhouse”, with slight modification No Excuses just “RIGHT”.

No student in the history of ICJS has ever failed this assignment…..don’t be the first.

If you hit a snag or have a question…..its like who wants to be a millionaire….phone a mentor!

This is your first…..no one is going to expect perfection, just stay focused, think, follow your examples and use this as a “POSITIVEPOSITIVE” learning experience.

QQUUEESSTTIIOONNSS

Documents

Crime Prevention Part I BUSINESS CRIME PREVENTION © ©TCLEOSE Course #2101 Crime Prevention Part I Curriculum is the intellectual property of CSCS-ICJS