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Page 1: Loss Prevention

Loss PreventionLoss PreventionFor the College BookstoreFor the College Bookstore

Page 2: Loss Prevention

PresenterPresenter:: Chet A. CohenChet A. Cohen Corporate Loss Prevention Manager, Associated Corporate Loss Prevention Manager, Associated

Students UCLAStudents UCLA Fourteen (14) years at UCLAFourteen (14) years at UCLA Previously worked for Gap Inc. and Target Corp.Previously worked for Gap Inc. and Target Corp. Member of ASIS (American Society of Industrial Member of ASIS (American Society of Industrial

Security)Security) Member of LAAORCA (Los Angeles Area Member of LAAORCA (Los Angeles Area

Organized Retail Crime Association)Organized Retail Crime Association) Member of NACP (National Association of Chiefs Member of NACP (National Association of Chiefs

of Police)of Police)

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Major IssuesMajor IssuesAn OverviewAn Overview

ShrinkShrink Textbook TheftTextbook Theft Textbook Refund FraudTextbook Refund Fraud Physical Security/EASPhysical Security/EAS Uniformed Security vs. Plainclothes Uniformed Security vs. Plainclothes

StaffStaff ORCORC Civil DemandCivil Demand SafetySafety

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ShrinkShrink Defined as inventory losses, either by theft Defined as inventory losses, either by theft

(internal and external), administrative errors and (internal and external), administrative errors and accounting errorsaccounting errors

$37 billion in 2011$37 billion in 2011 50% internal (employees)50% internal (employees) 40% external (customers and vendors)40% external (customers and vendors) 10% other10% other Direct threat to store revenue and profitabilityDirect threat to store revenue and profitability Combated by strong deterrent policies, Combated by strong deterrent policies,

organizational standards and leadershiporganizational standards and leadership Zero toleranceZero tolerance

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Textbook TheftTextbook Theft

The #1 theft threat to college bookstoresThe #1 theft threat to college bookstores Textbooks are equal to cash – fastest turnaround Textbooks are equal to cash – fastest turnaround

of any commodity sold (or) stolen at a college of any commodity sold (or) stolen at a college bookstorebookstore

Preventing these types of theft is paramountPreventing these types of theft is paramount There are a number of ways this can be There are a number of ways this can be

accomplished: EAS (electronic article accomplished: EAS (electronic article surveillance) systems, bag checks, clerk services surveillance) systems, bag checks, clerk services and aggressive customer service are all ways to and aggressive customer service are all ways to combat and deter textbook theftcombat and deter textbook theft

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Textbook Refund FraudTextbook Refund Fraud

Stolen textbooks are easily sold back for cashStolen textbooks are easily sold back for cash Retailers that do not ID book buyback sellers are Retailers that do not ID book buyback sellers are

making it easy for the criminals to get away with making it easy for the criminals to get away with itit

Requiring a valid (government issued ID) DL or Requiring a valid (government issued ID) DL or Student ID will deter instances of fraudulent Student ID will deter instances of fraudulent returnsreturns

Limiting quantities of the same title and capping Limiting quantities of the same title and capping the return eligible dollars are additional ways to the return eligible dollars are additional ways to combat refund fraudcombat refund fraud

Advisories, working with your association partnersAdvisories, working with your association partners

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Physical Security/EASPhysical Security/EAS

Visible CCTV (closed circuit television) camerasVisible CCTV (closed circuit television) cameras Cable-locking high-end productsCable-locking high-end products Reverse positioning of hangars on displays Reverse positioning of hangars on displays

adjacent to exitsadjacent to exits Staffing appropriately through out the store and Staffing appropriately through out the store and

offering customer service to all guestsoffering customer service to all guests Loss-control signage in fitting roomsLoss-control signage in fitting rooms EAS (Electronic Article Surveillance) systemsEAS (Electronic Article Surveillance) systems EAS antennas can be floating at the exit doors or EAS antennas can be floating at the exit doors or

attached to the door framesattached to the door frames All merchandise products can be tagged (soft or All merchandise products can be tagged (soft or

hard tags)hard tags)

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Uniformed vs. Plainclothes StaffUniformed vs. Plainclothes Staff

Uniformed security officers patrolling the storeUniformed security officers patrolling the store Being visible and able to offer customer serviceBeing visible and able to offer customer service Can respond to EAS alarm activationsCan respond to EAS alarm activations Deters the folks Deters the folks ““on the fenceon the fence”” about shoplifting about shoplifting Plainclothes staff are able to quietly investigate Plainclothes staff are able to quietly investigate

theft and make apprehensionstheft and make apprehensions With the uniformed staff on general patrol in the With the uniformed staff on general patrol in the

store, plainclothes personnel can focus store, plainclothes personnel can focus investigations on high-end products and/or investigations on high-end products and/or internal issuesinternal issues

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ORCORC

ORC (Organized Retail Crime)ORC (Organized Retail Crime) Not your grandfathers Not your grandfathers ““mobmob”” Well-organized, well-funded groups paid to steal Well-organized, well-funded groups paid to steal

significant amounts of merchandise in a short timesignificant amounts of merchandise in a short time Move from store to store in groups of bandits and Move from store to store in groups of bandits and

look-outslook-outs Sold on the black market, swap meets and even Sold on the black market, swap meets and even

back to primary sellersback to primary sellers Estimated $20 billion in ORC crime in 2011, will be Estimated $20 billion in ORC crime in 2011, will be

even higher in 2012even higher in 2012 Not flash-mobsNot flash-mobs

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Civil DemandCivil Demand Legal term used by state legislatures that allow Legal term used by state legislatures that allow

retailers to assess a civil fine unto a person retailers to assess a civil fine unto a person caught shopliftingcaught shoplifting

In California, Penal Code 490.5 allows retailers In California, Penal Code 490.5 allows retailers and libraries to charge up to $500 per incident for and libraries to charge up to $500 per incident for acts of theftacts of theft

A conviction in court is not requiredA conviction in court is not required Its up to the retailer to set the fine amountIts up to the retailer to set the fine amount The amount does not have to be based on the The amount does not have to be based on the

value of the item stolenvalue of the item stolen The fine is guided by the principle that allows the The fine is guided by the principle that allows the

retailer to recover some monies from losses retailer to recover some monies from losses and/or the cost of employing a loss prevention and/or the cost of employing a loss prevention department and maintaining lp systemsdepartment and maintaining lp systems

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Civil Demand Civil Demand CONTCONT’’DD

Nevada state law – Code 597.860 allows for Nevada state law – Code 597.860 allows for retailers to assess a civil fine from $100 up to retailers to assess a civil fine from $100 up to $250 per incident plus the value of the non-$250 per incident plus the value of the non-sellable goods.sellable goods.

Oregon state law – Statute 30.875 allows for civil Oregon state law – Statute 30.875 allows for civil remedy again between $100-$250 plus the cost remedy again between $100-$250 plus the cost of the non-sellable goods, not to exceed $500.of the non-sellable goods, not to exceed $500.

Washington state law – allows retailers to assess Washington state law – allows retailers to assess a civil fine up to $200 after attempting (twice) to a civil fine up to $200 after attempting (twice) to have the thief pay for the stolen items.have the thief pay for the stolen items.

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SafetySafety This is a major component of any loss prevention This is a major component of any loss prevention

or asset protection functionor asset protection function Maintaining a safe work environment for Maintaining a safe work environment for

employees and customers will cut down on employees and customers will cut down on accidents and claims accidents and claims

This will reduce your workersThis will reduce your workers’’ compensation rates compensation rates Lost-time accidents can run into the hundreds of Lost-time accidents can run into the hundreds of

thousands of dollars for an organizationthousands of dollars for an organization All businesses must have an IIPP (injury and All businesses must have an IIPP (injury and

illness prevention program)illness prevention program) Training, inspections and documentationTraining, inspections and documentation

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Wrap-UpWrap-Up

What questions do you have???What questions do you have??? II’’m free after to answer any m free after to answer any

questions privatelyquestions privately Thank You!Thank You!


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