PCI Risk Assessment & Loss Prevention Flashcards

What is internal theft in the context of corporate loss prevention?

Answer: Theft committed by employees or other insiders against their employer

Internal theft is committed by employees, contractors, or other insiders who exploit their trusted access to steal assets, data, or funds from their employer.

What does pre-employment screening help prevent in an organizational context?

Answer: Hiring individuals with histories of dishonesty or misconduct who pose risks

Pre-employment screening identifies candidates with disqualifying histories of theft, fraud, or misconduct, reducing the risk of internal crime before it occurs.

What is an anonymous tip line or hotline in the context of loss prevention?

Answer: A confidential reporting mechanism for employees to report suspected misconduct

Anonymous hotlines allow employees to report suspected fraud or misconduct without fear of retaliation, making them a key tool in fraud detection and loss prevention programs.

What is exception reporting in retail loss prevention?

Answer: Automated flagging of unusual transactions or activities that deviate from normal patterns

Exception reporting uses software to automatically flag transactions that fall outside normal parameters, helping identify potentially fraudulent activity for review.

What is the fraud triangle model?

Answer: A theory that fraud requires opportunity, pressure, and rationalization

The fraud triangle, developed by criminologist Donald Cressey, posits that fraud occurs when a person has opportunity, faces financial pressure, and can rationalize their actions.

What is a due diligence investigation in the context of business risk management?

Answer: A comprehensive investigation of a company or individual before a business transaction

Due diligence investigations thoroughly examine a company's or individual's background, finances, and reputation to identify risks before entering into business relationships.