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Loss Prevention for frontline staff

Workbook & ASSESSMENT


Contents The sections are:

Page

Introduction .........................................................................................................................................

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Section 1: Theft ...................................................................................................................................

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What is theft? ....................................................................................................................

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Identifying suspicious customer behaviour ....................................................................

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Removing the opportunity for theft ...............................................................................

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Theft by Staff .....................................................................................................................

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Checklist .............................................................................................................................

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Section 2: Policies and procedures ................................................................................................

39

What do you do if you see theft occurring ....................................................................

39

Difficult situations .............................................................................................................

46

Checklist .............................................................................................................................

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Section 3: Fraud ..................................................................................................................................

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What is fraud? ...................................................................................................................

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Customer fraud .................................................................................................................

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Staff fraud ..........................................................................................................................

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The consequences of committing theft and fraud ........................................................

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Checklist .............................................................................................................................

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Section 4: Theft and fraud by external customers ...................................................................

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Procedures for visitors .......................................................................................................

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Suppliers and delivery people ..........................................................................................

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Checklist .............................................................................................................................

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Section 5: Process loss ......................................................................................................................

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What is process loss? ........................................................................................................

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Reducing process loss through record keeping ..............................................................

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Process loss caused by stock damage .............................................................................

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Process loss caused by wastage ......................................................................................

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The impact of process loss on a business .......................................................................

92

Checklist ............................................................................................................................

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Reference list ......................................................................................................................................

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Photos for describing customers activity ...................................................................................

100

Photos for describing shoplifting activity ..................................................................................

103

Glossary ...............................................................................................................................................

105

Loss Prevention for Frontline Staff

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RIRL 2.LOSSP Sept ‘ 10

Assessment


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Copyright Š 2010 Retail Institute


Introduction Congratulations on your decision to become qualified in retail loss prevention. This workbook will help you: 1 develop your understanding of loss prevention 1 assist with loss prevention in your store 1 apply your learning in your workplace. When you successfully complete this workbook you will receive a certificate in Loss Prevention for Frontline Staff (Level 2). Talk to your workplace trainer about using this achievement as a step towards gaining a National Certificate in Retail (Loss Prevention) (Level 2). The Unit Standards covered in this resource

Unit

Title

24996

Explain the legal definitions and consequences of theft and fraud in a retail or distribution environment

24997

Demonstrate knowledge of theft and fraud in a retail or distribution environment

24998

Identify and monitor suspicious behaviour by customers and deter theft and fraud in a retail or distribution environment

25795

Demonstrate knowledge of process loss in a retail or distribution environment

25796

Demonstrate knowledge of policies and procedures to prevent process loss in a retail or distribution environment

This workbook is designed to help you complete the requirements for these unit standards while you are working in retail. The purpose of this introduction is to get you thinking about what is actually involved in working through this programme. You will have a better chance of success, and will enjoy the process more if you take some time now to work through the planning activities included here.

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Contents of Loss Prevention Level 2 Loss Prevention for Frontline Staff consists of a workbook that contains: 1 activities – these activities are designed to prepare you for your assessment. 1 examples and case studies – these are relevant to loss prevention situations in the retail industry. They provide real life examples of loss prevention. 1 an assessment – this is used to assess your overall achievement after you have completed your learning. You will find it on the coloured pages at the back of this workbook. Make sure you read this before you start working though the rest of the workbook. 1 glossary – here you will find some specialised terms and phrases about loss prevention. These terms are highlighted in blue and defined in a hanging glossary on the right hand side of the page. There is also a full glossary at the back of the workbook.

Icons The following icons have been used in this training resource. Outlined below is an explanation of what the icons mean. This icon identifies an example.

This icon gives you a hot tip.

This icon tells you there is a key point to remember.

This icon lets you know there is more information on this subject in another section or training resource.

This icon indicates an activity for you to do. The activities do not form part of the assessment but will help to reinforce your learning

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Copyright © 2010 Retail Institute


Section 1

Theft When you complete this section you will be able to: 1 explain what theft is 1 describe how people steal and why they steal 1 identify suspicious customer behaviour

Suspicious behaviour

1 remove opportunities for theft

strange or unusual

1 identify and give examples of how staff commit theft

behaviour which

1 describe the procedures you have to follow in your store to prevent and report staff theft

attracts the attention of other people

1 identify the consequences of staff theft.

Facts you should know about theft Did you know that in retail: 1 the most common form of theft is ‘shoplifting’ 1 most shoplifters don’t get caught 1 most shoplifters who do get caught are caught by sales staff on the shop floor.

An Australian study showed that only 2.5% of theft in retail stores is witnessed. This means that most retailers don’t know who steals from them, when they do it, and how they do it. What a difference it would make if retail staff had the opportunity to learn how to detect and deal with shop theft. New Zealand retailers lose more than $650 million a year as a result of theft and fraud, and over $325 million from other types of losses. That’s almost $1 billion a year in lost income! Source: Nelson, D.& Perrone, S. (2000)

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What is theft? The term ‘theft’ is defined by law in the Crimes Act 1961 Part 10: Section 219, as: (1) Theft or stealing is the act of— (a) dishonestly and without claim of right, taking any property with intent to deprive any owner permanently of that property or of any interest in that property; or (b) dishonestly and without claim of right, using or dealing with any property with intent to deprive any owner permanently of that property or of any interest in that property after obtaining possession of, or control over, the property in whatever manner. Legal definition the way a word is

We can summarise this legal definition by saying that theft or stealing is taking another person’s money or property and not giving it back.

used in law

Three key points about theft. 1. Theft is taking something that doesn’t belong to you. 2. Theft is a criminal offence. 3. Theft is often called stealing.

Why do people steal? All sorts of people steal – customers, staff and people who visit your store to do business such as suppliers and sales representatives. Many of these people can afford the items they steal. The main reasons people steal include: 1 for the thrill – some people get their ‘kicks’ from doing the wrong thing and breaking the law 1 due to peer pressure – friends tease or dare someone to steal 1 to support a drug habit – some people steal goods, sell them to others, and use the money to buy drugs 1 to satisfy a want – a person may want something but cannot pay for it 1 it is a habit – some people get into the habit of stealing 1 they are professional shoplifters– some people sell the goods they steal (on-sell) and make money. They may be part of an organised crime ring. 1 they give into temptation and opportunity - some people steal because they think no one will find out.

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Copyright © 2010 Retail Institute


How do customers steal? You need to know how customers might steal so that you can quickly recognise when it is happening. Here is a list of some of the many ways customers steal from retail stores. 1 palming – hiding an item in the palm of the hand 1 concealing – hiding an item in something else, such as in an umbrella, pram, bag, briefcase, or coat 1 grazing – eating or drinking products in the store without paying for them. Customers eat sweets, fruit, or bakery products. Others use items like sunscreen, body lotion, and mouth wash in the store 1 switching price tags – changing price tags on articles, to pay a lower price 1 switching packaging – putting an expensive item in the box that contained a cheaper model 1 putting on items – putting on clothes, sunglasses, jewellery, or shoes in the shop and leaving without paying 1 hiding one product inside another (some thieves buy one item, such as a backpack or a rubbish bin, and hide other things inside) 1 using hooks sewn inside a coat, jacket, or baggy trousers 1 working with other shoplifters – one distracts the staff while the other takes the items 1 using children – some people use children to steal because if the child is under 15 they will not be prosecuted 1 blocking – using someone else to prevent staff from seeing products being stolen 1 grabbing and running – taking items or money from the till and running away 1 using a ‘booster’ bag or box – using a bag or box lined with tin foil to carry stolen tagged items. The tin foil lining blocks the signal between the tag and the sensor at the door.

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How do people steal from your store? List below some of the methods that customers use or could use to steal from your store. You may want to ask some of your workmates to add to the list. ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... .......................................................................................................................................

Deception

Retailers can also lose products or money through fraud. Fraud is when someone deliberately lies or cheats to gain something of personal value. Fraud usually involves deception.

a trick or deliberate act of deceit. For example, using someone else’s credit card to pay for goods or services

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For more information about fraud see sections 3 and 4.

Copyright Š 2010 Retail Institute


Identifying suspicious customer behaviour

Shop floor staff are key to reducing theft. The 2003 New Zealand Survey of Retail Theft and Security found that of all the people who were caught shoplifting: 1 71% were detected by shop floor sales staff 1 5% by security staff 1 10% by closed circuit television cameras (CCTV) 1 9% by electronic article surveillance (EAS) and other means 1 4% by other customers

Looking out for suspicious customer behaviour helps prevent shoplifting. You need to watch for customers who: 1 hang around in one area of the store 1 wander around looking as if they don’t know what they are looking for 1 stand close to products 1 place bags at their feet or keep a buggy or stroller nearby while shopping 1 wear loose clothing that could be used to hide items 1 seem nervous in the way they: 3 pace up and down 3 adjust their clothing 3 look around at staff and customers 1 rush through the store to force you to give them quick service so that you might miss the products they are hiding 1 come into the store in groups and: 3 huddle together near displays 3 block your view of others in the group 3 split up but stay within eye contact of each other 1 seem uncomfortable when approached by store staff.

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Identifying suspicious customer behaviour You are a sales assistant observing customers in a store. All of these customers are showing signs of suspicious behaviour. 1.

2.

3.

Briefly describe why these three customers look suspicious. 1. ................................................................................................................................... 2. ................................................................................................................................... 3. ...................................................................................................................................

Shoplifters may also try to build your trust by buying some items, but stealing others as well.

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Copyright Š 2010 Retail Institute


Watching for suspicious behaviour in your store Watch customers in your store. See if you can find three who show signs of suspicious behaviour. If your store has CCTV, ask your trainer if you can watch customers in the store with their guidance. Write a brief description of the three types of suspicious behaviour you observed in the table below. Discuss your descriptions with your trainer, your workmates or your manager. Ask them to tell you about any different suspicious behaviours they have observed.

Suspicious behaviour

What I saw

Date and time

1.

2.

3.

Other types of suspicious behaviour:

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Not all shoplifters look suspicious, and not all suspicious-looking people are shoplifters.

Removing the opportunity for theft The best way to reduce shop theft is by removing any opportunities that are available for people to steal. Positive customer service is a very important approach to use to help reduce shop theft. There are other ways to remove the opportunity to steal. These include knowing: 1 your products so that thieves cannot deceive you 1 how to use your stores’ security systems 1 how to use your store layout to watch customers 1 how to use signs to tell customers about the risks of being caught 1 how to provide positive customer service.

Positive customer service Positive customer service is one of the best ways you can put someone off stealing. This includes: 1 giving customers prompt attention by greeting them as soon as they come into the store, even if you can’t serve them immediately. This tells people who might be thinking about stealing that you know they are there. 1 offering to help, and renewing your offer to help while the customer is still in the store 1 keeping regular eye contact Efficient without wasting time or energy

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1 providing efficient service to reduce the opportunity for theft.

Copyright Š 2010 Retail Institute


Copyright 2010 Š Retail Institute All rights reserved. No part of this publication may be reproduced in any form without prior written permission. Enquiries should be made to the Retail Institute, PO Box 24341, Wellington.

RIRL 2.LOSSP Sept ‘ 10

0800 486 738 www.retailinstitute.org.nz

Loss Prevention for Frontline Staff  

Loss Prevention for Frontline Staff