Loss Prevention Handbook - CA Lottery · California Lottery® Loss Prevention Handbook Table of...

Retailer

Loss Prevention

Handbook Property of the California Lottery

Security/Law Enforcement Division

California Lottery®

Loss Prevention Handbook

Table of Contents

Inside the front cover of this handbook is a laminated sheet. The front side lists all of the Retailer Validation Code letters for winning Scratchers® under $600.00. The opposite side has the instructions for Reporting Lottery-Related Crimes during normal or after business hours.

• California Lottery Security/Law Enforcement Division District Offices…………… page 1

• Scratchers® Delivery Invoice………………………………………………….……… page 2

• Scratchers® Pack Information 9 $1.00 Scratchers® Information (250 tickets per pack)……………………….… page 3 9 $2.00 Scratchers® Information (200 tickets per pack)……………………….… page 4 9 $3.00 Scratchers® Information (100 tickets per pack)………………….……… page 5

• Scratchers® Identifiers………..….…………………………………………….………..page 6

Crime Prevention Information

• Draw Games……………...……………………………………………………………..page 7

• Fraudulent / Stolen Scratchers®………………………………………………………... page 8

• Burglary Prevention……………………………………………………………………. page 9-10

• Robbery Prevention……………………………………………………………………..page 11-12

• Shoplifting & Internal Theft Prevention……………………………………………….. page 13-15

• Vandalism & Arson Prevention………………………………………………………... page 16

• Check, Credit Card & Refund Fraud…………………………………………………....page 17-18

• Lottery-Related Crimes…………………………………………………………………page 19

Forms

• Daily Scratchers® Tracking………(Use to keep track of your Scratchers® on sale at closing time) Use for “in-counter” displays or “stackable” dispensers

• Vending Machine Inventory……………(Use to keep track of packs placed into vending machines)

• ITVM Closing Inventory…..(Use to keep track of Scratchers® in the vending machine at closing time)

• Suspect Description…………...(Use if a crime occurs, particularly a robbery – give it to officers)


3 Loss Prevention Handbook

Lottery Headquarters 600 N. 10th Street

Sacramento, California 95814

Security/Law Enforcement Division District Offices

Northern California

Central Valley East Bay 750 W. Pinedale Avenue 2489 Industrial Pkwy. West Fresno, CA 93711 Hayward, CA 94545

Sacramento San Francisco 598 N. 10th Street 820 Dubuque Avenue Sacramento, CA 95814 S. San Francisco, CA 94080

Southern California

Rancho Cucamonga Riverside 9430 Lucas Ranch Road 1485 Spruce Street Rancho Cucamonga, CA 91730 Riverside, CA 92507

San Diego Santa Ana 5656 Ruffin Road 3400 W. Warner Avenue, Suite FSan Diego, CA 92123 Santa Ana, CA 92704

Santa Fe Springs Van Nuys 9814 Norwalk Blvd. Suite 1 16525 Sherman Way, #C-10 Santa Fe Springs, CA 90670 Van Nuys, CA 91406

Telephone Numbers

California Lottery……………………1- 800-LOTTERY (1-800-568-8379)

GTech Hotline……………………….1-800-666-6695

Problem Gambling Hotline…………..1-888-277-3115



VERIFY YOUR ORDER

IN VOICE INFORMATION

C A L I F O R N I A L O T T E R Y PAGE 1 OF 1 Retailer Copy

Invoice Number : 011017-50-0098 1 Date: 1/17/03 Chain ID: 095814

095814 THE CSL STORE 600 N. 10th STREET SACRAMENTO, CA 95814

WHS: 119 SACRAMENTO DSR: 021079 JIM WOOD

TRM 033 DAY 4 STP 033

ORDER DETAIL

GAME PACKCOST

# OF PACKS AMOUNT

299 DESERT GOLD $2302 SUPER 7’S 306 100 GRAND 308 TRIPLE LUCK310 THE BIG SPIN

$2 $3

$2 $1

376.00376.00282.00376.00235.00

1 1 1 1 2

376.00 376.00 282.00 376.00 470.00

SUBTOTAL PACKS ON PAGE SUBTOTAL AMOUNT OF PAGE TOTAL PACKS SHIPPED TOTAL AMOUNT OF ORDER

6 1880.00

6 1880.00

INVENTORY SHIPPED

299-231976 302-261677 306-247837 308-190012 310-263016 310-263317

Message: INDIVIDUAL PACKS IN THIS DELIVERY ARE SWEPT: 1) WHEN 80% OF LOW-TIER PRIZES ARE VALIDATED OR 2) 50 DAYS AFTER YOU ACTIVATE THE PACK OR 3) 170 DAYS FROM THE DATE OF CONFIRMATION OF DELIVERY – IF NOT ACTIVATED IN THAT PERIOD.

INVOICE NUMBER 011017-50-00981

|||| |||||||||||||| |||||| |||||||||| |||||| |||||| || ||

VERIFY RETAILER IDENTIFICATION

VERIFY # OF PACKS

VERIFY PACK #’s

Game Numbers, Game Names & Price Per Ticket

Special Messages

CONFIRM YOUR ORDER UPON DELIVERYIf your order is incorrect, contact your DSR

or call 1 -800-LOTTERY (1-800-568-8379)



$1.00 SCRATCHERS® PACKS 250 Tickets - Numbered 000 to 249

If tickets in the pack have become separated, verify that none of the tickets have been removed.




Back of Ticket Front of Ticket

Pack Ends With

Ticket #199






Pack Starts With Ticket #000

Pack Ends WithTicket #099

Front of Ticket



SCRATCHERS® IDENTIFIERS

Pack Number

UPC Bar Code

Must be 18 Years Old

to Play

Benday Lines

(One Color)

Three Validation

Code Letters(W,Z,B)

Locations and Letters

Vary Per Ticket

Validation Bar Code

FRONT OF TICKET



Secur i ty /Law

Enforcement D iv i s ion

Draw Games

Fraudulent / Stolen Scratchers®

Burglary Prevention

Robbery Prevention

Shoplifting & Internal Theft Prevention

Vandalism & Arson Prevention

Check, Credit Card & Refund Fraud

Lottery-Related Crimes



Secur i ty /Law


Draw Games

The California Lottery® currently has five draw games. They include Super LOTTO PLUS®, Fantasy 5, DAILY DERBY®, DAILY 3 and HOT SPOT®. Draw game tickets may be purchased between 6:00 AM - 1:15 AM the next day. Super LOTTO PLUS® draws are conducted every Wednesday and Saturday. The DAILY DERBY®, DAILY 3 and Fantasy 5 draws are conducted daily. HOT SPOT® draws are conducted daily, with a new game every five minutes from 6:05 AM – 1:00 AM the next day. Draw game tickets purchased between 1:05 AM – 1:15 AM will be for draws after 6:00 AM.

SIGNED ON Slips / Sign Off Terminal

Retailers should retain all Lottery terminal SIGNED ON slips for at least fourteen (14) days. The SIGNED ON slip is needed by the Lottery’s Security/Law Enforcement Division to authenticate any Super LOTTO PLUS® ticket sold at your place of business that matches the six numbers drawn. The SIGNEDON slip may also be needed to authenticate other large high-tier prizes.

The Lottery terminal should be signed off whenever the Lottery terminal is left unattended or at the close of business. Any person accessing a Lottery terminal that is NOT signed off while unattended, or after yourbusiness is closed, could obtain a vast number of stolen draw game tickets.

ADVANCE PLAY®

ADVANCE PLAY® allows players to purchase draw game tickets for more than one draw. Every draw game ticket identifies the total value of the ticket and how many draws were purchased. The Lottery terminal screen will advise you of any HOT SPOT® purchase valued at $50 or more before printing the ticket. Retailers should always VERIFY the VALUE of a draw game ticket BEFORE releasing it to the customer. By verifying the value of a draw game ticket you will be assured your customers have paid theproper price for their draw game ticket. Don’t assume the customer is paying the proper price for a draw game ticket. The Lottery does not reimburse retailers for stolen draw game tickets.

Example: A customer gives a cashier $1.00 and a playslip marked for 100 draws (a $100 value) to purchasea Hot Spot® ticket. The cashier prints the Hot Spot® ticket and hands it to the customer who then leaves the store. The cashier did not check the Lottery terminal screen or ticket toverify the value of the Hot Spot® ticket. The customer left the retail location with the $100Hot Spot® ticket resulting in a net loss of $99 to the retailer. The cashier should haveverified the ticket's value was $100, and not assume it was for $1.00.

Security Information

Do an “Inquiry” report prior to paying any apparent winning ticket. This will let you know if it is a winning ticket and the proper prize amount. Retailers can pay prizes up to $599 per line on a draw ticket. It will also let you know if the ticket had been previously paid or if it is not a winner. The ticket will not validate if it isfraudulent. Destroy all redeemed winning tickets by mutilating, tearing, shredding, or marking them as“paid” to prevent them from being recycled for duplicate payment.



Secur i ty /Law


Validating Lottery Tickets

It is imperative that California Lottery retailers validate all Lottery tickets BEFORE paying a prize to a customer. Retailers are authorized to redeem all winning Lottery tickets for prizes under $600. When aLottery ticket is validated, the terminal will produce a validation slip verifying the prize amount to be paid or a validation slip with other relevant information. The information will provide the retailer with the currentstatus of the Lottery ticket. The Lottery will not reimburse the retailer for any money paid to a customer for a Lottery ticket that has not been authorized. Scratchers® may not validate to authorize payment for any of the following reasons:

• The retailer who sold the ticket has not activated the Scratchers® pack for sale. • The ticket has been previously paid at your store or by another retailer. • The ticket is not a winner. • The ticket has been altered and is fraudulent. • The ticket has been reported stolen.

Fraudulent / Stolen Scratchers®

Any Scratchers® that have been altered to represent winning tickets will not be validated by the Lottery terminal when presented for prize payment. Non-winning Scratchers® can be altered to represent winning tickets by cutting out and replacing the play spots and/or the play captions from other non-winning Scratchers® and pasting them onto the altered Scratchers®. Suspects have been known to replace the entire play area of an ALREADY PAID winning ticket to a non-winning ticket. This is known as a “cut and paste” alteration. (See Scratchers® Identifiers on page 6.) Winning Scratchers® that have been “flagged” as stolen will NOT validate for a prize when scanned. Validate ALL Scratchers® BEFORE making any prize payments.

Novelty / Joke Tickets - Scams Official California Lottery Scratchers® have the words California Lottery® printed on the FRONT and BACK. Novelty-type tickets are NOT printed by the California Lottery®. They’re sold at novelty stores (not California Lottery retailers), and are used as a joke or gag with a bogus prize, usually for $10,000.Occasionally, suspects have taken the back of an official Scratchers® and pasted it to the back of a novelty ticket. They then try to sell the altered Scratchers® to an unsuspecting retailer or private citizen for a reduced prize (of $1 ,000-$2,000). DON’T buy these tickets.

Security Information

Do an “Inquiry” report prior to validating and cashing an apparent winning Scratchers®. The inquiry report will advise you if it is a winning ticket and the amount of the prize. It will also advise you if theScratchers® has been previously paid or if it is not a winner. Payment will not be authorized if the ticket isfraudulent, stolen, or lost. Destroy all redeemed winning tickets by mutilating, tearing, shredding, ormarking them as “paid” to prevent them from being recycled for a duplicate payment.



Secur i ty /Law Enforcement D iv i s ion

Business Security

If you own or operate a business, make sure it is a safe and secure facility. Your customers wantto feel safe when they visit, and they are likely to return if their visit is positive. Burglaries, for the most part, occur after your business has closed for the evening and before you open in themorning. There are several things you can do to prevent or reduce the likelihood of beingburglarized.

• Locate checkout counters near the front of the store, clearly visible from the outside so those employees can better watch activities.

• Clearly mark public paths. • Make private areas harder for non-employees to access (particularly offices). • Prevent easy access to the roof or fire escape from the ground. Trim trees adjacent to the

building. Secure roof access and fire escape ladders with locking covers. • Do not cover up windows with advertising or display material. • Maintain clear visibility to the street, sidewalk, parking areas, and passing vehicles. • Use interior shelving and displays no higher than five feet, and lower in front of windows. • Fully illuminate the exterior of the building and grounds at night. • Loading areas should not have hiding places for people and/or merchandise. • Consider installing an alarm system. • Place entrances under visual surveillance.

Maintaining your property

This is an important part of your over-all security. A run-down business can attract criminals. • Keep buildings and walks clean and repaired. • Maintain parking areas to a high standard without potholes or trash. • Remove faded posters, broken signs and other displays that are no longer useful. • Keep plants and all landscaping in good condition.

Consider the “nuts and bolts” of security

The following are suggestions to provide a burglar-resistant environment for you and your employees:



• Utilize deadbolt locks with a minimum 1-inch throw bolt containing a hardened, saw resistant steel insert on all exterior doors. If you choose double cylinder deadbolts, check with yourlocal building inspector or fire department to see if these locks are permitted.

• Pin the hinges on any exterior doors that swing out. Simply remove the center screw from each side of the hinge and insert a metal pin or headless screw on one side. This will prevent the door from being removed.

Replace hollow-core doors with solid-core doors. Remove weak door frames or reinforce them with steel or concrete.

Protect glass in doors with mesh or a polycarbonate sheet. Consider adding clear polycarbonate sheets to secure windows. If this is too expensive,

consider roll down covers, grates or bars. Remember to check with your local building inspector or fire department about these additions.

• If you are considering purchasing an alarm system, contact several reputable companies and get a full assessment of your needs. Consider adding the following features: • Panic buttons in case of a robbery. • Fire/smoke detectors. • A monitored system that contacts law enforcement if it is activated.

Burglary Prevention

Your best protection against a burglar is visibility: well- lit open spaces, low counters and large uncluttered display windows. Put your cash register up front so that the burglar’s activity will be visible from outside. When closing the business, empty the cash drawers and leave them open so a burglar won’t be tempted to break them open. Anchor safes in concrete.

Additionally, you should: • Contact your local law enforcement agency’s crime prevention unit for a free security survey

of your business, or you can contact the Lottery Agent in your district for assistance. • Request additional information on Business Watch and Operation Identification. • Keep a complete, up-to-date inventory of your merchandise and property (by serial number if

available): office machinery, personal belongings, etc. Keep a copy in a safety deposit box at a location away from your business site.

• Keep accurate records of your unopened packs of Scratchers®, and of those on display for sale. You can use the Lottery’s Daily Scratchers® Tracking form to keep track of the tickets on display for sale. Remember, the most important information needed to report stolen Scratchers® are the game number, pack number and ticket number range (for example, the stolen Scratchers® ranged from number 074 to 249).

If you suspect your business has been burglarized: • Call 9-1-1 and make a police or sheriff's crime report (required for reimbursement of any

stolen Scratchers®. • Don’t go inside – the burglar might still be inside. • Don’t open for business – your employees or customers might unknowingly destroy or alter

valuable evidence. • Call the Lottery Security/Law Enforcement Division at 1-800-LOTTERY (1-800-568-8379)

to report stolen Scratchers®.



Secur i ty /Law Enforcement Division

Robbery

Robbery is a crime that can be a frightening experience and is accomplished by means of force or fear. In protecting your business from a robbery, it is important to take preventive measures and make it obvious that those measures have been taken.

How to discourage a robbery

• Avoid having employees working alone. If needed, turn on a hidden radio or TV so robbers will think more than one person is in the store.

• Avoid placing signs or displays near windows that block visibility from the street. • Make sure your cash register is clearly visible to passers-by. Arrange the counter so that the

customer or robber is visible from the street. • Display signs at entrances and exits indicating that safes require secondary keys not in the

possession of employees. • Advertise your security alarm system with signs in visible locations. Make sure your

employees know how to operate a panic button if one is included with your alarm system. • If your business runs an exceptionally high robbery risk, you might want to invest in a

bulletproof cashier screen or other preventive measures equally as effective at a lower cost. • Develop a mutual aid system among stores on your block. Agree to keep an eye on each

other’s buildings and watch for any suspicious activities. Install “buddy buzzer” alarms so you can signal your neighbor if you are being robbed.

• Record the serial number of the bottom bill in each bin of the cash drawer, and instruct employees not to use these bills in making change.

• Place colored tape markers at exits. Mark at interval heights of 5 feet 6 inches, and at 6 feet. • NEVER count your cash receipts in your office while the office door is opened to the public,

or closed but unlocked! Require employees to notify you of any visitors (customers or sales personnel) before opening the office door during a money count. It is much better for you to meet them at the front counter than have them casually enter your office.

• Maintain clear visibility to the street, sidewalk, parking areas, and passing vehicles. • Fully illuminate the exterior of the building and grounds at night. • Place entrances under visual surveillance.



Stolen Property and Lottery Scratchers®

• Keep a complete, up-to-date inventory of your merchandise and property (by serial number ifavailable): office machinery, personal belongings, etc. Keep a copy in a safety deposit box at a location away from your business site.

• Keep accurate records of your unopened packs of Scratchers® and of those on display for sale. You can use the Lottery’s Daily Scratchers® Tracking form to keep track of the tickets on display for sale. Remember, the most important information needed to report stolenScratchers® are the game number, pack number and ticket number range (for example, the stolen tickets ranged from number 074 to 249).

If a robbery occurs

What should you do if a robber demands goods or money? Give the robber what they want. Never refuse the robber. Consider your personal safety first and foremost!

If you have a silent alarm and can reach it unnoticed, use it. Otherwise, wait until the robberleaves. (Use the alarm with care. Excessive false alarms can cause problems for law enforcementand you.)

If possible, signal other employees - have a prearranged signal for such emergencies. Again, if the robber might see you, WAIT. Many robbers are just as nervous as you are.

The MOST important thing to do if you’re robbed is to “OBSERVE”. The description of the suspect you give to law enforcement might be the only information they have to go on in theirinvestigation.

After a robbery • Call 9-1-1 and make a police or sheriff's crime report (required for reimbursement of any

stolen Scratchers® • Write down everything that you can remember about the robber and crime itself: the robber’s

physical description (including tattoos, accent, scars or anything unusual), clothing, wordsused, mannerism, weapon, vehicle description, and direction of travel. The Lottery has included a “Suspect Description ” form for your use if needed.

• Keep everyone away from the crime scene to prevent them from contaminating any evidence (surfaces or objects the robber might have touched).

• Cooperate fully with law enforcement and prosecutors. Your help is crucial. • Call the Lottery Security/Law Enforcement Division at 1-800-LOTTERY (1-800-568-8379)

to report stolen Scratchers®.



Secur i ty /Law


Put a stop to shoplifting!

Shoplifters assume they won’t get caught. Your strategy is to prove them wrong. The following tips require thought and ingenuity, but cost very little.

• Alert employees are your best defense. Establish procedures for them to follow if they suspect shoplifting. Make sure they are familiar with shoplifting laws.

• Make sure you can see everything that goes on in your store. Keep counters low, no more than waist high.

• Arrange counters and tables so there is no direct route to exit. Place expensive items in the center of the store away from exits.

• Arrange displays so that missing items are easily noticed. Place small items in neat rows or in clearly defined patterns.

• Attach inventory alarm tags to expensive merchandise. • Reverse alternate hangers of hanging garments to prevent “grab and run”. • Mount mirrors in corners so there are no blind spots. • Post a notice that shoplifters will be prosecuted. • Maintain clear visibility to the street, sidewalk, parking areas and passing vehicles. • Consider installing a security video surveillance system. Maintain a monitor at or near the

front counter that can be viewed by staff. • Place entrances/exits under visual surveillance.

What shoplifters use

Shoplifters use the following to conceal items: • Bulky clothing: coats, pants, and maternity outfits. • Packages, bags, backpacks, and purses are hiding places. Sometimes they have false bottoms. • Special props include hollowed-out books, fake casts, umbrellas, secret pockets, belts, or

hooks under their coats. • Folded newspapers or magazines to hide small or flat items.

What to look for

• Be aware of the customer’s hands – and their pockets, purses and handkerchiefs. • Notice open packages, purses, shopping bags and backpacks. • Watch groups of people, especially if a person tries to distract you.



Employees are not exempt

Some experts believe businesses lose more to employee theft than to burglary, robbery, andshoplifting combined. Examine your management practices. Make your employees feel that theyhave a stake in your business, then they won’t be tempted to steal from it.

Embezzlement and pilferage

Some employees only take a few items, such as office supplies, or use company equipment forpersonal use, but embezzlement and pilferage can get bigger and bigger. Cashiers may use “short ring-ups” – that is ringing up a lower price on the sales register to cover money taken from the till. They might also overcharge customers and pocket the difference or undercharge other employeesand friends. Embezzlement can go from simple overloading of expense accounts to paymentsmade to non-existent companies.

Watch for the following:

• Records are rewritten so they’ll look neater. • Stock shortages increase in frequency or size. • Employees refuse vacations or promotions. • Business patterns change when a certain employee is absent. • Customers complain about errors in monthly statements. • Collections decline. • Employees seem sensitive to routine questions about procedures. • Excuses are made for continually not following procedures.

Maintain strict inventory control

The best defense is frequent and thorough INVENTORY CONTROL. Limit employee access to stock and inventory needs. Periodically check outside trash bins/dumpsters, nooks and crannies.Conduct unexpected checks so dishonest employees know they run the risk of being caught by surprise.

There are many ways for dishonest employees to cheat their employers: • Keep complete and accurate up to date records of your unopened packs of Scratchers® and of

those on display for sale. You can use the Lottery’s Daily Scratchers® Tracking form to keep track of the tickets on display for sale. Remember, the most important information needed toreport stolen Scratchers® tickets are the game number, pack number and ticket number range (for example, the stolen Scratchers® ranged from number 074 to 249).

• An employee often “accidentally” damages boxes and cans so they can buy them at a reduced rate.

• An employee might place pilfered items in the outside trash bins/dumpsters during working hours and retrieve them after work.



· An employee may retain a customer’s discarded sales receipt and then use it later to show that stolen goods were “paid for”.

Good business management

Keep a complete, up-to-date inventory of your merchandise and personal property (by serial number, if available): office machinery, personal belongings, etc. Keep a copy in a safety deposit box at a location away from your business site.

Employees should be discouraged from playing Lottery games while working. Any purchase made by an employee should be from another clerk or cashier, including Lottery purchases.

Require job applicants to fill out a detailed application. Contact all references and former employers.

Set the example. The boss who takes merchandise and office supplies without paying only encourages employees to do the same. Employees who are treated fairly are less likely to steal. Get to know your employees. Ask for their suggestions and seriously consider them. Involve employees in crime prevention practices.


Securi ty /Law

Enforcement Div is ion

Vandalism and arson can have devastating financial and emotional effects on a business. Owners and employees need to be on alert. Most vandalism, including graffiti and arson attacks, occur at night and on weekends when businesses are vacant. Run-down businesses can attract criminals.

What you can do

Many of the same precautions taken to discourage burglars may also discourage arsonists and vandals. By taking a few preventive steps, you can help curb these crimes against your business.

Improve general security

• Train employees to secure all doors, windows and skylights – especially at entrances. • Install and use an alarm system. Make sure all employees know how to activate the system. • Don’t allow landscaping to provide camouflage or hiding places. • Maintain clear visibility to the street, sidewalk, parking areas and passing vehicles. • Train employees to be watchful of strangers and to immediately report suspicious actions. • Fully illuminate the exterior of your building, parking lot and grounds at night. • Ask your business neighbors to keep watch over your business while you are away.

Vandalism prevention

• Schedule custodial crews at night. • Provide incentives for reporting vandalism and any information to catch suspects. • Always report acts of vandalism to your law enforcement agency immediately. • The sooner you repair any vandalism, the less chance for more will occur.

Add fire protection

• Install smoke detectors and other fire safety equipment. Check all smoke detector batteries at regular intervals. (A good time to do so would be when time changes in the spring and fall.)

• Clear your premises of fuel sources (newspapers, leftover paint, old rags, and other trash). • Secure all flammables in a locked fire-resistant cabinet. Dispose of flammable waste

material as quickly as possible. (Check with local authorities for approved methods of disposal.)

• Maintain an efficient emergency plan. • Educate employees about arson prevention.


Secur i ty /Law

Enforcement Division

False Identification

False identification contributes to losses from bad checks and credit cards. To minimize thisproblem, require at least one primary form of identification when making business transactions.False identification cards are easy to obtain and inexpensive to purchase. If you are not certain that the identification is valid, terminate the transaction.

Primary forms of identification • Valid California driver's license • Valid California identification card • Employee’s identification card with a laminated photo (check for possible alterations)

Never accept the following cards as identification: • Membership cards • Library cards • Social Security cards • Any card or form of identification that appears to be altered

Credit Card Fraud

When accepting credit cards, it is good practice to ask for a valid form of picture identification. This may assist you in determining if the credit card belongs to the individual making thepurchase. Train employees to follow each credit card company’s authorization procedures. If thecredit card company indicates the credit card is stolen, explain to the customer that there is aproblem getting authorization and that you need to keep the card. Depending on the situation, youmight need to contact law enforcement.

Make sure you establish internal procedures for this kind of incident. Be consistent with enforcing your procedures. Watch for suspicious signs that might indicate credit card fraud: • The credit card has been altered, expired or is not valid. • Signature on the back of the credit card does not match the signature on the sales slip. • The customer makes several purchases, all under the amount that requires an authorization call

to the card issuer or management approval.




Special Notes

• When suspicious, call for an authorization from the credit card issuer, indicate your suspicion and follow instructions.

• REMEMBER that your safety is important. If the customer becomes abusive, call law enforcement immediately.

• ALWAYS destroy carbon copies from credit card invoices or offer the carbon copies to the customer so that the credit card numbers and names do not fall into the wrong hands. If you have a credit card invoice printer, make sure that you destroy the merchant roll when you complete the bookkeeping transactions.

Check Fraud

There are a number of ways that fraudulent or stolen checks can “bounce” into your business. Stolen checks can be forged and legitimate checks can be altered to show much higher amounts. Fraudulent checks generated on home computers are becoming more prevalent in the business community. If you are unsure, call the bank to verify that the account number matches the name on the check.

Set up check cashing guidelines – and follow them

• All checks should follow company guidelines regardless of the amount. • Require valid identification to cash a check – make no exceptions. • Require management approval for out-of-area checks. • Accept only checks imprinted with the customer’s name, address and bank account number. • Consider limiting the check to the amount of the purchase. • Consider requiring a thumb print on the check for positive identification. • DO NOT accept two or more party checks. • DO NOT accept postdated checks. • DO NOT accept checks with alterations.

Refund Policy

To minimize losses on fraudulent refunds, consider the following: • Issue cash refunds only to persons who have a receipt verifying the purchase. • Establish and post a policy for returning non-defective merchandise without a receipt. • Refund by check. • Consider a “no refund” policy – exchanges only. • Always require valid identification and maintain files of returns.



LOTTERY-RELATED CRIMES

The California Lottery® Security/Law Enforcement Division will investigate any crime involving Lottery products at a Lottery retail location. The investigating Lottery Agent will contact the retailer to determine what has occurred and verify any Lottery-related loss incurred by the retailer. The Lottery Agent will investigate the following crimes:

Burglary A burglary usually occurs at night and after a business is closed. This would apply to a suspect who enters a business location with the intent to commit grand or pettytheft (such as stealing Lottery tickets and other items). (459 PC Felony)

Robbery A robbery occurs when a perpetrator takes personal property in the possession of another person against their will by means of force or fear. The stolen property could include cash, Lottery tickets and other items. (211 PC Felony)

Grand Theft Grand theft involves stealing property valued over $400. This would include Lottery tickets stolen during normal business hours. (487 PC Felony)

Petty Theft Petty theft involves stealing property valued at $400 or less. This would include Lottery tickets stolen during normal business hours. (488 PC Misdemeanor)

Attempts An attempted theft (and other crimes) is an unsuccessful act of stealing property thatwas not obtained by the perpetrator. A suspect might have tried to steal Lotterytickets but was prevented from completing the act when detected by the victim or by other means. It would also apply to a suspect attempting to redeem stolen Lottery tickets. (664 PC Misdemeanor or Felony)

Embezzlement Embezzlement is the fraudulent appropriation of property by a person to whom ithas been entrusted. It would apply to an employee who, during the course of theiremployment, takes Lottery tickets without paying for them. (503 PC Felony)

Forgery Forgery applies to any person who alters or is in possession of an altered CaliforniaLottery® ticket with the intent to defraud. This applies to any suspect

who presents an altered Lottery ticket for a prize. (470 PC, 475 PC Felony)

Receiving Stolen Property Draw Game Tickets

Receiving stolen property applies to any person who buys or receives any stolen property (including Lottery tickets), knowing that the property was stolen.

(496 PC Felony)

Retailers are not reimbursed for stolen draw game tickets. All draw game tickets are printed with the value of each ticket (example: $1.00, $5.00, $10.00, $50.00, $100.00). Before releasing a draw game ticket to a customer, VERIFY the value of the ticket. The Lottery terminal screen will advise the cashier of all HOT SPOT® sales valued at $50.00 or more prior to printing the ticket. (Avoid the risk of being paid only $1.00 for a $100.00 Hot Spot® ticket (valid for 100 draws).

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