Chapter_14_int_theft

Chapter_14_int_theft - Chapter 14 Internal Theft Controls...

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Chapter 14 Internal Theft Controls
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Introduction to Internal Theft Controls (pg 253) Virtually every company will suffer losses from internal theft, and these losses can be enormous. Internal theft in the retail business outstrips the loss from shoplifting by approximately 7.9 times ! Employee theft costs businesses more than $40 billion annually. Security reports that in the retail business alone 1 in every 27 employees is apprehended for theft from their employer. Internal theft accounts for at least 2 times the loss from external sources (burglars, armed robbery, etc)
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The Theft Triangle (pg 255) A simplified answer to the question of why employees steal is depicted in the theft triangle. According to this concept, theft occurs when three elements are present: Motive, Desire and Opportunity. Desire and Motive are beyond the scope of the loss- prevention manager; Opportunity, however, is the responsibility of security. A high percentage of employee thefts begin with opportunities that are regularly presented to them. If security systems are lax or supervision is indifferent, the temptation to steal items that are improperly secured or unaccountable may be too much to resist by any but the most resolute employee.
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Danger Signs (pg. 255-256) Poor hiring decisions are at the root of many management problems. The root causes of theft are many and varied, but certain signs can indicate that a hazard exists: Employees who suddenly acquire expensive cars, etc. Those who appear to live beyond their means. Employees who show a pattern of financial irresponsibility. Employees caught in a genuine financial squeeze.
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This note was uploaded on 04/13/2008 for the course CJ 385 taught by Professor Nalla during the Spring '08 term at Michigan State University.

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Chapter_14_int_theft - Chapter 14 Internal Theft Controls...

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