Business SecurityBusiness Security

Marketing IIMarketing IIUnit IIUnit II

I. Why Businesses Need SecurityI. Why Businesses Need SecurityProtect BuildingsProtect BuildingsEquipmentEquipmentFixturesFixturesRecordsRecordsGoodsGoodsProtect against theft of money or Protect against theft of money or valuablesvaluablesLoss of lifeLoss of lifeProtect against business failureProtect against business failure

II. Employee’s Role in Business II. Employee’s Role in Business SecuritySecurity

Recognizing the importance Recognizing the importance of business securityof business securityFollow employer’s Follow employer’s recommended safeguardsrecommended safeguards

III. Identify and Explain Areas III. Identify and Explain Areas of Security Problemsof Security Problems

ShopliftingShopliftingPilferagePilferageBurglaryBurglaryRobberyRobberyFraudFraud

ShopliftingShoplifting – Theft of goods – Theft of goods by customersby customers

PilferagePilferage – Theft of small – Theft of small sums of money or sums of money or

inexpensive items from the inexpensive items from the businessbusiness

BurglaryBurglary – Any illegal entry – Any illegal entry into a building to commit theftinto a building to commit theft

Robbery Robbery – Theft that – Theft that involves the use of force, involves the use of force,

violence or fearviolence or fear

FraudFraud – Deceiving or – Deceiving or cheating a business out of cheating a business out of

money or propertymoney or property  

IV. Distinguish Among The IV. Distinguish Among The Common Types Of FraudCommon Types Of Fraud

Common Types of FraudCommon Types of Fraud

Price ticket switchingPrice ticket switchingInternal theft (Embezzlement)Internal theft (Embezzlement)Point-of-sale fraud (bad checks)Point-of-sale fraud (bad checks)Point-of-sale fraud (credit cards)Point-of-sale fraud (credit cards)Point-of-sale fraud (cash)Point-of-sale fraud (cash)

Types of Cash Fraud By Types of Cash Fraud By CustomersCustomers

Customer distractionsCustomer distractionsSplit billsSplit billsMarked billsMarked billsCounterfeit billsCounterfeit bills

By EmployeesBy Employees

Pocketing cash from a customer’s Pocketing cash from a customer’s salesaleOvercharging customersOvercharging customersStealing money from the registerStealing money from the registerUndercharging family and friendsUndercharging family and friendsAbusing discount privilegesAbusing discount privileges

Record Keeping and Record Keeping and Payroll FraudPayroll Fraud

Issuing padded payroll checksIssuing padded payroll checksIncreasing wage rates and number of Increasing wage rates and number of hours worked on time sheetshours worked on time sheetsMaking out unauthorized checksMaking out unauthorized checksEntering false payments in the Entering false payments in the company books to hide stolen fundscompany books to hide stolen fundsCreating false credit card accounts for Creating false credit card accounts for their own usetheir own use

Computer FraudComputer Fraud

Gaining access to product Gaining access to product development plans, market research development plans, market research data, etc.data, etc.Gaining access to and revealing Gaining access to and revealing personnel informationpersonnel informationStealing moneyStealing moneyAltering computerized business Altering computerized business operations recordsoperations records  

V. Various Security Devices V. Various Security Devices to Prevent Business to Prevent Business Security ProblemsSecurity Problems

I. Devices That Help To I. Devices That Help To Prevent ShopliftingPrevent Shoplifting

Electronic SensorsElectronic SensorsInk TagsInk TagsClosed-Circuit TelevisionClosed-Circuit TelevisionLocked Display CasesLocked Display CasesChains And LocksChains And LocksConvex, One-Way, And Two-Way Convex, One-Way, And Two-Way MirrorsMirrorsSecurity GuardsSecurity Guards

II. Methods Used to Prevent II. Methods Used to Prevent Security ProblemsSecurity Problems

ShopliftingShopliftingGreet Customers Entering The Business.Greet Customers Entering The Business.Keep A Watchful Eye On Customers.Keep A Watchful Eye On Customers.Monitor Dressing Rooms And Hard-To-See Monitor Dressing Rooms And Hard-To-See Areas On The Sales Floor.Areas On The Sales Floor.Observe Customers As They Leave To Observe Customers As They Leave To Make Sure They Aren’t Wearing Or Hiding Make Sure They Aren’t Wearing Or Hiding Goods They Didn’t Purchase.Goods They Didn’t Purchase.Be Familiar With Security Devices.Be Familiar With Security Devices.

Preventing PilferagePreventing Pilferage

Be Alert And Attentive.Be Alert And Attentive.Be Honest, And Follow Company Rules.Be Honest, And Follow Company Rules.Don’t Take Excess Goods And Supplies Don’t Take Excess Goods And Supplies Home Unless You Are Told To Do So.Home Unless You Are Told To Do So.Ask Your Supervisor About Rules Of Ask Your Supervisor About Rules Of Which You Are Unsure.Which You Are Unsure.

Preventing BurglaryPreventing BurglaryKnow The Proper Procedures For Closing A Know The Proper Procedures For Closing A Business At The End Of The Day.Business At The End Of The Day.Never Leave Cash In The Register Overnight.Never Leave Cash In The Register Overnight.Don’t Keep Large Amount Of Cash Anywhere On Don’t Keep Large Amount Of Cash Anywhere On The Business Premises.The Business Premises.Check Every Room In The Business Before Check Every Room In The Business Before Closing.Closing.Turn Lights On Inside And Outside The Business Turn Lights On Inside And Outside The Business At Closing Time, Or Have Them Set To Come On At Closing Time, Or Have Them Set To Come On Later In Order To Reduce The Risk Of Burglary.Later In Order To Reduce The Risk Of Burglary.Know How To Operate The Business’s Security Know How To Operate The Business’s Security System.System.

Preventing RobberyPreventing RobberyHandle Cash In A Systematic, Cautious Handle Cash In A Systematic, Cautious Manner.Manner.Turn In The Contents Of Cash Drawers Every Turn In The Contents Of Cash Drawers Every Hour Or Whenever The Cash Level Reaches Hour Or Whenever The Cash Level Reaches A Specified Amount.A Specified Amount.Use Drop Boxes.Use Drop Boxes.Vary Routes And Times When Making Bank Vary Routes And Times When Making Bank Deposits.Deposits.Don’t Travel To The Bank Alone When Don’t Travel To The Bank Alone When Making Deposits.Making Deposits.Avoid Discussing The Business’s Cash Avoid Discussing The Business’s Cash Procedures In Public Places.Procedures In Public Places.

Preventing FraudPreventing FraudPrice-Ticket SwitchingPrice-Ticket Switching– Be Familiar With The Prices Of Items Sold Be Familiar With The Prices Of Items Sold

By The Business.By The Business.– Check Prices When They Don’t Seem Check Prices When They Don’t Seem

Correct.Correct.

Internal TheftInternal Theft– Follow Policies And Procedures Established Follow Policies And Procedures Established

By The Business.By The Business.– Know What Steps To Take In Order To Know What Steps To Take In Order To

Report A Dishonest Employee.Report A Dishonest Employee.  

Point-Of-Sale FraudPoint-Of-Sale Fraud  

Remember There Are 3 Types Of Fraud, Remember There Are 3 Types Of Fraud, Which Deal With Credit Cards, Checks, Which Deal With Credit Cards, Checks, And Cash.And Cash.

For ChecksFor Checks

Make Sure That The Check Is Filled Out Completely, Make Sure That The Check Is Filled Out Completely, The Amount And Date Are Accurate, The Signature The Amount And Date Are Accurate, The Signature Matches That Are On A Driver’s License Or Other Matches That Are On A Driver’s License Or Other Acceptable Form Of Identification, And That Another Acceptable Form Of Identification, And That Another Form Of Identification Is Recorded On The Back Of Form Of Identification Is Recorded On The Back Of The Check.The Check.

Have A Manager Approve TheHave A Manager Approve The Check If The Amount Check If The Amount Of The Check Is Higher Than A Specified Amount.Of The Check Is Higher Than A Specified Amount.  

For Credit CardsFor Credit Cards

Check The Status Of The Card, The Card’s Check The Status Of The Card, The Card’s Expiration Date, And The Signature On The Expiration Date, And The Signature On The Back Of The Credit Card.Back Of The Credit Card.

Obtain An Approval Code From The Credit Card Obtain An Approval Code From The Credit Card Company By Telephone Or By Passing The Company By Telephone Or By Passing The Card Through A Machine Designed For That Card Through A Machine Designed For That Purpose If The Amount Of The Purchase Is Purpose If The Amount Of The Purchase Is Higher Than The Floor Limit.Higher Than The Floor Limit.  

For CashFor CashBe Aware Of Various Bill Tricks Used By Con Artists.Be Aware Of Various Bill Tricks Used By Con Artists.Follow The Procedures You Were Given By Your Supervisor In A Follow The Procedures You Were Given By Your Supervisor In A Consistent, Step-By-Step Manner.Consistent, Step-By-Step Manner.– Unfold All Bills And Straighten Edges.Unfold All Bills And Straighten Edges.– Examine Every Bill On Each Side.Examine Every Bill On Each Side.– Place Bills In The Cash Drawer Facing The Same Direction.Place Bills In The Cash Drawer Facing The Same Direction.

Know How To Detect Counterfeit Bills.Know How To Detect Counterfeit Bills.Never Turn Your Back On An Open Cash Drawer.Never Turn Your Back On An Open Cash Drawer.Lock Your Register If You Need To Leave The Sales Counter.Lock Your Register If You Need To Leave The Sales Counter.Wait Until You Have Completed Making Change Before Talking Wait Until You Have Completed Making Change Before Talking With A Customer.With A Customer.  

For EmbezzlementFor Embezzlement

Adopt a policy of Adopt a policy of mandatory vacations and mandatory vacations and mandatory duty rotationsmandatory duty rotations. . Establish a Establish a hotline for whistleblowershotline for whistleblowers and and train employees how and when to use it. train employees how and when to use it. Don’t hire thievesDon’t hire thieves. Always check references. Always check referencesConduct periodic Conduct periodic surprise internal auditssurprise internal audits. . 

Record Keeping And Record Keeping And PayrollPayroll

  Be Honest.Be Honest.

Follow The Steps Learned For Follow The Steps Learned For Record Keeping And Payroll Record Keeping And Payroll When You Are Trained.When You Are Trained.  

ComputerComputerUnderstand How To Operate Understand How To Operate Your Hardware And Software.Your Hardware And Software.Use And Protect Your Own Use And Protect Your Own Identification Codes And Identification Codes And PasswordPasswordRegularly Copy Your Computer Regularly Copy Your Computer Work So That It Will Always Be Work So That It Will Always Be Accessible To The Business.Accessible To The Business.

Report Any Suspicious Computer Report Any Suspicious Computer Conditions to a Supervisor.Conditions to a Supervisor.Protect the Business’s Sensitive Computer Protect the Business’s Sensitive Computer Data.Data.– Do Not Allow Unauthorized Individuals, Do Not Allow Unauthorized Individuals,

Such as Customers, to See The Such as Customers, to See The Computer Screen. Computer Screen.

– Exit a Confidential File Or Turn The Exit a Confidential File Or Turn The Computer Off If You Need To Leave Computer Off If You Need To Leave Your Terminal.Your Terminal.  

Analyze Current Laws Analyze Current Laws Regarding All Areas of Regarding All Areas of

Business SecurityBusiness Security

Guest SpeakerGuest Speaker