Loss Prevention & Asset Protection Flashcards

What is 'sweethearting' in the context of retail loss prevention?

Answer: An employee giving unauthorized discounts or failing to scan items for friends or accomplices at checkout

Sweethearting occurs when a cashier provides unauthorized discounts or skips scanning items for an accomplice or friend, resulting in theft facilitated by the employee.

What is 'wardrobing' in retail loss prevention?

Answer: Purchasing items, using them, and then returning them as if unused

Wardrobing, also called 'renting,' involves purchasing items like clothing or electronics, using them temporarily, then returning them for a full refund.

Which type of fraud involves an employee manipulating register transactions, such as issuing false refunds to accounts they control?

Answer: Refund fraud or refund scheme

Employee refund fraud or a refund scheme involves manipulating POS transactions to generate refunds to accounts controlled by the employee without a legitimate customer return.

In a CCTV layout plan for a retail loss prevention program, which areas should be prioritized for camera coverage?

Answer: High-value merchandise displays, cash registers, exits, and fitting rooms (where legally permitted)

Effective CCTV placement targets high-theft risk areas such as high-value merchandise areas, POS terminals, store exits, and fitting rooms to detect and deter theft.

What is the primary purpose of a civil demand letter in a retail loss prevention investigation?

Answer: To seek civil monetary recovery from a shoplifter for losses and administrative costs

Civil demand letters allow retailers to seek restitution and administrative costs from shoplifters under civil recovery laws, separate from any criminal prosecution.

When investigating an organized retail crime (ORC) group, what distinguishes ORC activity from typical shoplifting?

Answer: ORC involves coordinated groups systematically stealing large quantities of merchandise for resale

Organized retail crime involves coordinated criminal networks that systematically steal large volumes of merchandise, often across multiple locations, with the intent to resell for profit.

Which analytical method is used in loss prevention to categorize inventory by value to prioritize security resources?

Answer: ABC analysis

ABC analysis categorizes inventory into A (high-value, low-quantity), B (moderate value/quantity), and C (low-value, high-quantity) tiers, helping direct security resources toward the most valuable items.