2 6 13 CCJ3644 Second Exam Material Chapter 3 Sales Related Crimes These offenses have four things in common o They occurred during the course of the offender s work o The offender was engaged in the role of a worker o In terms of setting the offenses occurred in a workplace setting o On one level or another each of them involved occupations where employees were selling goods or services Chapters 3 6 Organizational Chart Retail Crime and Service Fraud Occupational crime small businesses professionals employees medical crime legal crime academic crime religious crime Retail businesses like corporations engage in many deceptive and illegal activities o Fraudulent advertising o Illegal pricing practices o Sale of fraudulently representing merchandise o Purchase and resale of stolen goods Caveat Emptor let the buyer beware has traditionally regulated the relationship between buyers and sellers State of Florida Shoplifting o First offense 300 Misdemeanor charge Up to 1 year in jail The value of the theft will determine the severity of the punishment Diversion program upon first offense guaranteed dismissal 99 9 of the time CBC video the secret world of shoplifting The culture makes us want to spend even when we don t have money Shoplifters can be anyone it doesn t discriminate They steal for different reasons thrill seekers the poor feed an addiction professional boosters management and employees Employee Crime Employee theft unauthorized taking control or transfer of money and or property of the work organization by an employee during the course of employment Employee theft occurs on a number of different levels o Pilfering refers to petty theft o Chiseling refers to cheating or swindling o Fraud is theft through misrepresentation o Embezzlement refers to the destruction or fraudulent appropriation of another s money which has been entrusted to one s care CCJ3644 2 8 13 Employee Crime Internal Theft Theft By Employees is thought to make up over 50 of companies losses Alternative forms of employee crime o Not all employee crime against the employer takes the form of theft Employees may commit sabotage Conceal their own errors To gain time off To express their contempt and anger with their work and employer o Theft of ideas designs and formulas are another form of employee crime Some Factors in Employee Theft Company property refers mainly to basic bulky components and tools Property of uncertain ownership small inexpensive items like pens pencils nails bolts drill bits etc Personal property monogrammed clothing wallets jewelry personal modified tools etc Research has found o More likely to be young males and unmarried o More likely to steal from large organizations than small ones o Employees dissatisfaction higher rates of employee theft o Opportunity is a major determinant of employee theft Those with greater access to things worth stealing are the most likely to do so Employee Theft in Retail Crime Deceptive practices o Manipulation of products o Coupon stuffing o Sweetheart deals o Collection of taxes on nontaxable items e g labor o Wage theft from register goods or credit card information Employee Theft in the Retail System Retail system setting where customers purchase various types of products There are several varieties of employee theft in retail settings o Overcharging employees charge customers more than they should have o Shortchanging employees don t giver customers all of their change and pocket the difference o Coupon stuffing employees steal coupons and use them later o Credits for nonexistent returns employees give credit for returns to collaborators o Theft of production supplies and raw materials employees steal items used to produce goods in retail settings o Embezzlement employees steal money from an account to which they have access information o Over order supplies employees order more supplies than are needed and keep the supplies that were not needed o Theft of credit card information employees steal customers credit card o Theft of goods employees steal the items the retail setting is trying to sell o Theft of money from the cash register employees take money out of the register o Sweetheart deals employees give friends and family members unauthorized discounts Prevention Strategies for employee theft o Important strategies aim to import only the best types of employees who are less likely to engage in employee theft Background checks drug tests employee screening instruments and o Internal strategies include policies and practices performed within the retail setting in an effort to prevent employee theft Random inspections checking cash registers employee lockers and other locations for evidence of wrongdoing Audits strategies in which supervisors review cash distribution patterns of credit checks employees Developing rules that guide returns focus on ways to limit the possibility that employees misuse return policies Developing internal control policies set of policies and procedures that provide reasonable assurance that an organization s assets and information are protected o Technological strategies the use of various forms of technology to prevent employee theft in retail settings Video cameras Closed circuited television o Organizational culture strategies aim to promote a sense of organizational culture that would inhibit theft o Awareness strategies focus on increasing awareness among employees about various issues related to employee theft Want them to be exposed to Anonymous tip lines new hire orientation formal codes of conduct bulletin board posters related to theft prevention periodic lectures on theft and the consequences of theft loss prevention compensation programs Entertainment Services System Crimes Entertainment services system describes those settings where customers consume or purchase various forms of services designed at least partially for entertainment or pleasure Restaurant Industry 4 types of crimes committed by the restaurant industry o Food tampering o Violating health cleanliness codes o False advertising to describe foods o Short weighting Crimes by workers against the restaurant o Eating restaurants food without paying o Giving food drinks away for free o Selling food at a lower price o Taking items for personal use Strategies for reducing theft in restaurants o Inventory control o Controlled exits so managers know when workers are leaving o Inspections of employees belongings o Video cameras o Locks on goods and items o