Tuesday, August 23, 2005

Shoplifting - boosting, lifting - The five-fingered discount

In a recent article concerning a study on retail theft, Dr. Richard Hollinger of the University of Florida makes points that are no doubt interesting; however if you've ever worked in retail security it shouldn't be news.

Roughly 8% of people that enter a store will steal something. Sounds alarming, but there has long been an accepted honesty continuum in the retail loss prevention (LP). It's commonly called the 80/20 rule but it does not resemble Pareto's law very much. It goes something like this: 10% of your employees will steal, 80% may steal, and 10% will never steal. It is generally applied to any population. The purpose of the concept is to reinforce the need for internal controls. The consequence for a lack of internal controls can be found by searching news sources for 'embezzlement.' Controls provide an opportunity to encourage the fenceriders (the 80% that may steal) not to take assets without permission.

Getting back to shoplifters... They come in all shapes and sizes and profiling them is best done based on behavior rather than some cultural feature. From my own experience as an LP Officer over just three years I apprehended persons as young as 10 years old and as old as, yes I'm serious, 74 years old. What did they steal? Whatever they wanted from clothes to linen to pillows to lingerie to the silliest little knickknacks you can imagine (like refrigerator magnets). Some fought (and fought hard) but most just come back to the store when asked. Why do they steal? Now that is a question that draws much debate, but it's not generally because they lack the funds. By far the vast majority of those I apprehended had enough money on their person to pay for the items they had stolen. "They just forgot," you say? Some may have, but those I did not apprehend. Why? Because we had a policy of following those that had not concealed the merchandise (indicating their knowledge that they possessed the merchandise) until they did conceal it. Did some realize their mistake and go back to pay, yes, and they probably never knew we were behind them all the way back. Why apprehend when you can make a sale? The fact they returned without encouragement would indicate to me that they were sufficiently embarrassed by their own conscience.

As I said, all shapes and sizes - and so were the amounts of their thefts. Some take only one item and are quite difficult to catch, while others take considerable amounts for resale. Consider another continuum with amateur on one side and professional on the other. The pro's live off their thefts and the amateurs do not. Everyone in the middle supplement their lifestyles to differing degrees with stolen items.

What do shoplifters do? Well, first this is not to be construed as legal advice to go out and start putting your hands on people or accusing anyone of wrongdoing, but here are a few thoughts. Most SL's get nervous before their actual theft. The theft technically occurs (in many states within the U.S.) at the time of concealment. The SL must look around to ensure they are not being watched, or head to a very concealed place (like a fitting room or bathroom). Other times their nervousness causes them to act somewhat erratically - going from lingerie to tools, or women's dresses to men's jeans - as they try to determine if they are being followed. So the eyes give it away and the hands make the move. Those that are part of an organized theft team will typically steal in large quantities using bags, boxes or other "tools." What do they want - the good stuff - of course. They may be selling them to a fence (pawn shop or other illegal buyer) or they may be delivering them to re-pack houses for shipment to legitimate customers that are unknowingly buying stolen goods.

I can go on forever about shoplifters... Call it a perennial thorn in my side since my earliest days in security. Heck, we didn't mention refund-artists or credit fraud at all. One day we'll get to those as well.

Rob
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