CPI Asset Protection & Loss Prevention 2

Question 1

What is 'sweethearting' in retail loss prevention?

Accepted Answer

Employees giving unauthorized discounts or free merchandise to friends or family

Answer

The practice of hiding stolen merchandise inside clothing

Answer

A vendor scheme to overcharge for delivered goods

Answer

Refund fraud involving returned merchandise

Question 2

A loss prevention professional discovers a significant discrepancy between perpetual inventory records and a physical count. The FIRST step should be to:

Accepted Answer

Investigate all possible causes including receiving errors, administrative mistakes, and theft

Answer

Immediately terminate employees with access to that inventory

Answer

File a police report for theft

Answer

Conduct a polygraph test on all staff

Question 3

Which of the following best describes organized retail crime (ORC)?

Accepted Answer

Coordinated criminal groups that steal merchandise in large quantities to resell for profit

Answer

Individual shoplifters who systematically target a single store

Answer

Employee theft rings operating within a retail organization

Answer

Fraud schemes targeting retail customers rather than the retailer

Question 4

What is the purpose of 'target hardening' as an asset protection strategy?

Accepted Answer

Making specific assets more difficult to steal by increasing the effort or risk required

Answer

Training loss prevention officers in physical fitness

Answer

Increasing surveillance camera resolution

Answer

Implementing stricter employee background checks

Question 5

Which metric is most commonly used to measure the overall effectiveness of a retail loss prevention program?

Accepted Answer

Shrink rate expressed as a percentage of total sales

Answer

Customer satisfaction scores

Answer

Employee turnover rate

Answer

Number of apprehensions made per year

Question 6

In loss prevention, a 'booster bag' refers to:

Accepted Answer

A specially lined bag designed to defeat Electronic Article Surveillance (EAS) systems

Answer

A bag used by LP officers to collect and preserve evidence

Answer

A container for storing recovered stolen merchandise

Answer

A reinforced cash transport bag used by armored carriers

Question 7

'Return fraud' or 'wardrobing' most commonly involves:

Accepted Answer

Purchasing merchandise, using it temporarily, and then returning it for a full refund

Answer

Stealing merchandise and returning it for cash at a different store location

Answer

Using counterfeit receipts to return stolen merchandise

Answer

Employees processing fake returns to steal cash from the register