Chapter 16 Retail Security

1
Chapter 16Retail Security
2
Retail Establishment Crimes

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

3
Legal Definition of Shoplifting

• Shoplifting is the theft of retail merchandise by
  a person lawfully on the premises.
• Concealment of merchandise is prima facie
  evidence of intent to shoplift.
• In many states price changing is also considered
  shoplifting.

4
Types of Shoplifters

• Amateurs
• Students.
• Housewives.
• Vagrants.
• Alcoholics.
• Drug addicts.
• Kleptomaniacs.
• Professionals Those who steal for resale of
  merchandise.

5
Shoplifting Methods

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

6
Curtailing Shoplifting

• Single most effective deterrent is surveillance
  by an alert, trained sales force.
• This may be supplemented by security officers or
  floorwalkers.
• Security officers are prevention oriented,
  seeking to deter crime by their presence.
• Floorwalkers are apprehension oriented, seeking
  to arrest and prosecute shoplifters.

7
Merchandising Techniques to Deter Shoplifting

• Keeping displays orderly and not stacking
  merchandise too high.
• Returning to the display any item looked at and
  not bought.
• Keeping small, valuable items locked in display
  cases.
• Placing identifying tags on all merchandise.
• Displaying only one of a pair.
• Not displaying expensive merchandise near exits.
• Having small, easily stolen items located by the
  checkout.

8
Deterrent Procedures for Shoplifting

• Keeping unused checkout lanes closed.
• Locking the back door.
• Having package checks.
• Carefully checking price tags and bar codes.
• Maintaining tight controls on fitting rooms and
  restrooms.
• Issuing receipts.
• Controlling refunds.
• Establishing a communication system.

9
Physical Controls for Shoplifting

• Changing the actual store layout.
• Posting signs.
• Installing locks and alarms.
• Installing surveillance equipment such as convex
  mirrors and/or CCTV.

10
Apprehension of Shoplifters

• Someone must actually see item being taken and
  concealed or be reasonably certain item has been
  taken.
• Suspect must be kept under continuous observation
  until apprehension is made.
• This may occur on the premises or outside the
  premises depending on state statute.
• Must have reasonable or probable cause.

11
Prosecution of Shoplifters

• Establish reasonable guidelines for prosecuting
  shoplifters.
• Consider the value of the article, along with the
  persons age, number of offenses and attitude.
• Guard against illegal detention, malicious
  prosecution and slander suits.

12
Deterring Bad Checks

• Teach personnel to recognize the different types
  of checks and the common types of bad checks.
• Establish a check-cashing policy and adhere to
  it.
• Train personnel to examine checks and
  identification.
• Record relevant information on the backs of all
  checks cashed.
• Reconcile identity documents with check passers
  characteristics.

13
High-Risk Checks

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

14
Types of Bad Checks

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

15
Check Examination

• Look at the printed name and address.
• Check number, date, payee, numerical and written
  amount, bank and address and signature (for
  endorsement).
• Accept no checks that are illegible, that are not
  written in ink or that contain erasures or
  written-over dates or amounts.

16
Check Identification

• Persons presenting checks to cash should be
  required to produce identification containing a
  physical description (preferably a photograph)
  and a signature.
• The description should be compared with the
  person.
• The signature should be compared with the
  signature on the check.

17
Credit Card Loss

• Compare the signature on the card with that on
  the sales slip.
• Check the cards expiration date.
• Establishing a reasonable floor release limit.

18
Special Employee Security Problems

• Access to merchandise and cash.
• Specific pricing procedures, cash-handling
  procedures and refund procedures are essential.
• Personnel should be rotated periodically.
• Responsibilities should be separated.

19
Deter Employee Theft by Price Alterations

• Allow only authorized employees to set prices and
  mark merchandise.
• Mark merchandise by machine or rubber stamp,
  never pencil.
• Conduct periodic audits of prices recorded and
  prices changed.
• Check on the popular salesperson.

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Reduce Losses of Cash

• Establish strict cash-handling procedures.
• Use a tamper-proof recording system.
• Have each clerk responsible for his/her own
  receipts.
• Have cash receipts balanced by someone else.
• Perform unannounced audits.
• Use honesty shoppers.

21
Honesty Shopping

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

22
Refunds

• Require all employees to comply with the
  return/refund policy.
• Keep tight control of all credit documents, and
  match items to the return vouchers.
• Conduct periodic audits of return vouchers.

23
Shopping Center Security

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

24
Summary Questions

• What are the most frequent crimes committed
  against retail?
• What legally constitutes shoplifting?
• How are shoplifters classified?
• What methods are commonly used to shoplift?
• What preventive methods can be used to curtail
  shoplifting?

25
Summary Questions

• What basic difference exists between security
  officers and floorwalkers?
• What merchandising techniques, procedures and
  physical controls can be used to deter
  shoplifting?
• When and how should people suspected of
  shoplifting be apprehended?
• What factors influence when prosecution is
  advisable?

26
Summary Questions

• How can losses from bad checks be deterred?
• What types of checks are considered high-risk?
• What are the most common types of bad checks?
• How should checks be examined?
• What identification should be required?

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Summary Questions

• How can credit card loss be deterred?
• What types of employee theft frequently occur in
  retail and what preventive measures can be taken?
• What is honesty shopping?
• What are the two primary objectives of shopping
  center security?