You are the Loss Prevention Manager of the store you discussed in previous weeks. Your last three inventory reports showed that you have a serious problem with shrink due to internal theft. You need to write a report for your loss prevention agents to keep them aware of the greatest internal threats and countermeasures.
First, describe the 4 types of offenders and indicate various offender motivations (Use 2 of these 3: Martin, Hollinger, Laskey, Smith, & Deyle, 2015; Meerts, 2019; Shapiro, 2019).
Second, you need to use an incident to help your agents understand the issues they will be dealing with on the job. Select ONE of the following internal theft incidents — then, cut/paste it into your answer.
Employee fraud through collusion totaling $70,000 in the following 3 ways: a.) employees prepare packages for shipment to online buyers pack extra (unpaid for) items; b.) employees when emptying stock from boxes leave some of the merchandise inside, then take the box to the recycle bin outside where it is collected by an accomplice; and c.) cashiers ring up only a portion of the order, predominantly inexpensive items.
Employees issue pre-paid gift cards to friends and family without paying for them by voiding the cash transaction used to load the cards, totaling $25,000 for the year.
Three cashiers have been taking cash by voiding sales and overcharging customers for merchandise over the past 6 months, totaling $6,000.
Employees engage in “sweethearting” by offering customers ‘freebies’ and reductions in the cost of merchandise as a way of keeping customers interested in using them as retailers over others, totaling $1500 per month each year.
For your selected incident, explain which of the five types of criminal offenses it is (Use 2 of these 3: Martin et al., 2015; Seivold, 2018; Shapiro, 2019).
Third, indicate how the internal theft incident you reviewed and its investigation affects you, the retailer, in terms of financial loss, damage to reputation when reported to law enforcement, and employee morality (Use: Meerts, 2019). Explain whether, in this case, it is worth bringing criminal and/or civil charges (Use: Shapiro, 2019).
Fourth, develop an effective employee security policy that includes specific training and technology to prevent and mitigate future incidents and builds on either a.) Risk Vs. Gain theory or b.) Routine Activity theory (use 3 of these 5: Alexandrou, 2019; Fry, Rice, Peacock, Pernice, Pepperney, & Lee, 2017; Laskey, 2018; Martin et al., 2015; Shapiro, 2019).
Alexandrou, A. (2019) Physical Security: Interior Applications – Doors, Access Control. In: Shapiro L.R., Maras MH. (eds) Encyclopedia of Security and Emergency Management. Springer, Cham
Fry, N., Rice, R., Peacock, C., Pernice,L., Pepperney, J., & Lee, J. (2017). Retail safety and security: CCTV surveillance systems, retail alarm systems, and security training. Accessed at: https://losspreventionmedia.com/free-reports/retail-safety-and-security-cctv-surveillance-systems-retail-alarm-systems-and-security-training/ (2.6.2019).
Meerts C. (2019) Investigations: Employee Theft of Employer Property. In: Shapiro L.R, Maras MH. (eds) Encyclopedia of Security and Emergency Management. Springer, Cham.
Shapiro, L.R. (2019). Retail Shrink: Employee theft. In: Shapiro L.R., Maras MH. (eds) Encyclopedia of Security and Emergency Management. Springer, Cham
3. Lessons [see folder in preparation for Thursday’s class ]
FEMA course: IS-915 Protecting Critical Infrastructure
Laskey, Jr., H. (2018). Employee theft consequences: Risk vs. Gain theory. Accessed at: https://losspreventionmedia.com/insider/employee-theft/risk-vs-gain-theory/
Martin, T., Hollinger, R. Laskey, Jr., H.O., Smith, A., & Deyle, E. (2015). Employee theft: Statistics, interviewing techniques, and tips to optimize your employee theft policy. Accessed at: https://losspreventionmedia.com/get-download/download/?dtd=2393 (2.25.2019)
Seivold, G. (2018). 5 ways employees are stealing from your stores right now. Accessed at: https://losspreventionmedia.com/insider/employee-theft/5-ways-employees-are-stealing-from-your-stores-right-now/ (2.25.2019)