CSP Loss Prevention Strategies 2

Question 1

Which inventory shrinkage source typically accounts for the largest percentage of retail loss in the United States?

Accepted Answer

Employee theft

Answer

Employee theft (internal theft) consistently ranks as the leading cause of retail shrinkage, exceeding shoplifting in most industry surveys.

Question 2

A loss prevention strategy that focuses on making theft more difficult through store layout changes is best described as:

Accepted Answer

Target hardening

Answer

Target hardening involves physical and environmental modifications—such as display placement and sight-line improvements—that increase the difficulty of committing theft.

Question 3

What is the primary purpose of exception-based reporting (EBR) systems in loss prevention?

Accepted Answer

Flagging anomalous POS transactions for review

Answer

EBR systems analyze point-of-sale data to automatically flag transactions that deviate from normal patterns, helping LP teams identify potential internal theft or fraud.

Question 4

In the context of loss prevention, 'sweethearting' refers to:

Accepted Answer

A cashier under-ringing or not scanning items for a friend or accomplice

Answer

Sweethearting is an internal theft method where a cashier deliberately fails to ring up items for an acquaintance, resulting in merchandise leaving without full payment.

Question 5

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

Accepted Answer

Coordinated theft by groups who resell stolen merchandise through secondary markets

Answer

ORC involves groups of individuals working together to steal merchandise in large quantities and convert it into cash through fencing operations or online resale.

(CSP) Certified Surveillance Professional Practice Test

(CSP) Certified Surveillance Professional Practice Test

CSP Loss Prevention Strategies 2