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 person’s 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 card’s 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.

20. 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?

27. 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?