Background Checks and Employer Liability

shoplifting7Seems like every time I turn on the news, I hear about another person who walks into their office and starts hurting people. Is this happening more and more, or do we just hear about it more? Do you ever think about those companies and wonder what goes on after something like that happens, or even before? Even more perplexing is a recent airliner crash that seemed to be caused by one of the pilots. Every day, employers around the country have the potential risk for a disgruntled, or mentally unstable employee to cause harm to their staff, or customers. Can you prevent this and if not, how can you limit your liability?

My personal opinion on random acts of violence is that you can never prevent every occurrence. You can definitely limit your exposure to the risk by barring firearms in your workplace, having a no tolerance violence policy and running background checks on all of your employees. This however, will not stop someone that is hell bent against causing harm. Again, my opinion here is that if someone wants to “go postal,” nothing on Earth will stop them. That’s a fact of the world we live in. There are ways to limit liability on your end (as a business owner). 

Take for example the other day. I terminated an employee for performance related behavior. Hours later, another employee came to me with a screen shot of the terminated employee’s social media page. There, was a threat of violence towards the store and myself personally. I immediately contacted the local police. Did I really thing this person was capable of what they were posting on social media? No. Did I see it as a way to blow off steam from being terminated from a job? Absolutely. Then why did I contact law enforcement? The idea that a threat was made forces me to take that approach. Had I shrugged the threat off as “blowing off ;steam” and then 3 hours later I had that former employee burst through the front doors with a firearm, I, and my company could be potentially liable for any injuries due to failure to appropriately react to a known threat; sounds completely crazy, but it’s the truth. 

You can relate this to running background checks on your employees. Let’s say you don’t perform a background check on a new hire and with 2 weeks he loses his temper with a fellow employee and severely injures that employee. Worst case scenario is that employee is no longer able to work. You find out after the incident that your new hire has 15 arrests for domestic violence and other crimes against persons. You could be potentially held liable for creating a violent workplace due to a failure to properly screen applicants. Again, it sounds completely crazy but this has happened and will continue to happen. Background checks are standard practice and every single big box retailer across the country and they should be for you as well. 


How Are You Preventing Shoplifting?

shoplifting5There is always so much debate about how to fight shoplifting in the retail industry.  There are loss prevention teams in all the major retail stores, and the management team at any other store is, if not trained at least aware of what to do when facing a shoplifting accident.  Millions of dollars are lost due to shoplifting, and the matter seems to get bigger every day.  New government policies are making sure shoplifting is punishable accordingly, and retail stores are spending millions of dollars in security and personnel to fight this crime, but why is that not enough?  Follow the links to read more about this and other stories. 


Shoplifting & Loss Prevention: Do We Need A Fresh Look?

Traditional Loss Prevention is not working. If it was working, the retail world would not still be suffering $35 million or more a day in losses. If it was working, retail owners and store directors would not be going through security and loss prevention officers or the security companies they represent like the free samples they often hand out to customers. Security experts and loss prevention companies would not be constantly scrambling for new accounts, or be in conflict with the accounts they service.

Shoplifting is one of the least detected and most unreported crimes. Stock control in many stores is so deficient that few retailers know how many goods they are losing to shoplifters or their own staff. Statistically, so long as shrinkage does not exceed 2-3% of goods sold, retailers pay little attention to shoplifting. There are also financial incentives for managers to increase the bottom line profits. The bonuses they receive are often based on profit margins, and paying for security services can be a drag on profits. Managers are under constant pressure to justify expenses in a corporate world driven by profit.


Shoplifting Prevention: Top 5 Tips

Shoplifting is of major concern to vendors, so much so that it’s considered normal to budget 10-15% in losses due to store theft. This means each honest customer is paying 10-15% more due to the sins of his fellow shoppers. This budget figure can be reduced by one of your company’s most important assets: Your employees. Real, live, people. While we recommend security cameras, computerized security tagging, door security guards, and even undercover security personnel, this article will address how your employees – often the most involved people with your customers – can also be involved in shoplifting prevention. Here is a Top 5 list of suspicious behavior often exhibited by shoplifters, all of which are easily spotted by employees.

      1. Baggy or oversized clothing. There’s reason it’s called “baggy” – shoplifters are using their clothes as veritable bags, stuffing their stolen ware on their person as if it’s part of their wardrobe.
      2. Hands in pockets, or hidden otherwise. A regular shopper has nothing to hide. In contrast, a shoplifter has everything to hide.
      3. Teaming Up. Shoplifters might hang together when planning or passing along stolen items. If you see two or more people in a group speaking in low tones, looking over their shoulders, diverting their eyes, or of course, stuffing their or others’ pockets, it’s a sound suspicion of illicit activity. Regular shoppers, on the other hand, will likely happily chat away at full volume, and keep their non-purchased items in full view.

Japanese organization considers shared biometric database to combat shoplifting     

The National Shoplifting Prevention Organization (NSPO), a nonprofit organization of major Japanese retail businesses, is considering developing a biometric database to share facial recognition data in order to combat shoplifting across Japan, according to a report by The Japan News.

The NSPO said it would consider allowing retail stores to share the facial data with other stores in the same industry or other establishments in the region.

The organization proposes to set up a shared biometric database, and store managers can enter the facial data of shoplifting suspects into said database to continually monitor the suspects as he or she visits other stores.

Many retail stores have been using biometric technology in the past five years, however, the majority establishments that use facial recognition do so without publicly notifying any of their customers.


Controlling Retail Shrinkage by the Numbers

theft (11)The margins in a retail business can be slim.  It doesn’t take much shrinkage for a store to go from the black to the red.  One of the primary roles of a successful store manager is to develop, follow and then tweak a comprehensive security plan.  The creation of an effective plan takes a large investment of time, money and effort.

Managers often have gut feelings about where their losses are, and may even have a good idea about how to control them.  However, few of them understand — and therefore can’t effectively address — the full scope of the problems.  A successful plan starts with knowing the numbers, not indistinct feelings or incomplete ideas.  

The yearly National Retail Security Survey (University of Florida) started in 1991and is considered to be the most accurate and comprehensive in the industry.  The 2014 report estimates that the total shrinkage amount for retail businesses is $44.25 billion.  This is broken down into 5 categories.  The numbers have been rounded and don’t add to 100%.

Employee Theft (41%) – Many managers believe shoplifting is their number 1 shrinkage problem and make the mistake of overlooking this statistic, to their detriment.  Employees will steal time, money and merchandise.  This is regardless of how nice or punitive their supervisor is, good guys get stolen from as much as bad ones do.

Shoplifting (33%) – People steal for a variety of reasons.  With the advent of the Internet (which makes it easier to sell stolen items) and the difficult financial times of the last several years it has been steadily on the increase.  But, it remains consistently second to employee theft, which has also been rising.

Administrative (15%) – This category represents common human error involving administrative tasks, not deliberate fraud.  It includes things such as: miscounting or misplacing stock, money/cash register mistakes, lack of follow through on paperwork and poor record/receipt keeping.

Unknown (7%) – Some researchers view this category as a miscellaneous or catch-all one, where odd or seldom seen circumstances, which don’t fit any other classification, are located.

Vendor Fraud (6%) This is another area of shrinkage that many managers overlook.  They trust their supplier or its representative and ignore all the places (i.e. warehouse, delivery driver, invoices, order forms) where their shipment is shorted “just a few things”.

Before developing a loss prevention security plan it’s vital to understand where the loss is happening.  Then valuable resources, time and money, won’t be wasted on ineffectual systems, training and equipment.  Good managers know their employees, customers and suppliers, and have a feeling about where the problems are.  Great managers know all that too, but they back up their subjective feelings with objective numbers.


Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction.  She’s an educator, consultant, lecturer, trainer and facilitator, who’s conducted over 200 workshops, trainings, presentations, college classes and seminars.  

The Tricks of the Shoplifter

shoplifting4Managing or owning a retail store is not easy.  Shoplifters and employee theft are in some instances a daily occurrence, and the profits you were thinking you were getting have disappear.  The digital age has brought information to the young mind easily and instantaneously, and although some use it for the benefit of their mind, others use it to cause harm and to commit crimes.  Have you checked the videos on Youtube about how to shoplift?  From how to shoplift and not get caught, to instructions on how to prepare before shoplifting.  Yes, your shoplifting prevention team has to be aware of these tactics to be effective apprehending shoplifters.

Follow the links below for more information.


Video:

How To Shoplift Without Getting Caught Using a “Thief Book”


Female shoplifters caught on camera

Several supermarkets have complained that social customs enable women to steal with impunity.

Muhammad Hamouda, sales manager at an electrical accessories company, said 70 percent of thefts in his shop are made by females, primarily stealing women’s accessories.

Most thefts are monitored on closed-circuit TVs, which have also revealed various tricks of these thieves, particularly women with large handbags into which laptops, devices for hair and body care can be concealed. Only female security staff at supermarkets can deal with women thieves.

Hamouda said: “Mostly shops do not complain to police, but demand a written confession with a copy of her identity card, and then let her go free. But there are also shops that make her pay double the price of the article she shoplifted and she is prohibited against stepping inside the shop in future,” he said, adding that some ladies deny the charges and threaten to call the Haia as a means of defense.

Muhammad Asiri, a salesman in Asir, said there were suspicious disappearances of women’s accessories such perfumes, vanity bags and rings, discovered at the end of the month. Guards do not notice anything because the missing articles were mostly light and can be easily hidden. Occasionally there are gangs of women involved in these thefts, Asiri said.


 Confessions of a teenage shoplifter


The Costs of “Wardrobing”

theft (10)According to the National Retail Federation’s annual survey, it is estimated the industry loses approximately $9.1 billion yearly in return fraud.  This includes refunds on merchandising that has been stolen and a practice like “wardrobing” that is costing retailers this incredible amount. Those incidents are done by employees as well as shoppers and shoplifters.  To read more about this topic follow the links below for more information.


NOT-SO-HAPPY RETURNS: RETAIL FEDERATION HIGHLIGHTS “WARDROBING” COSTS

In a new survey, the National Retail Federation says that holiday-return fraud could end up costing stores billions this year. The worst part? This scam is more organized than ever.

The holidays are over, but stores big and small will be dealing with more than the memories.

That’s according to the National Retail Federation (NRF), which reported late last month that during the holiday season alone, retailers could face as much as $3.8 billion in lost revenue from fraudulent returns, an increase from $3.4 billion in 2013 and a big chunk of the estimated $10.9 billion in return fraud in 2014 as a whole.

The organization’s 2014 Return Fraud Survey [PDF], which gathered responses from loss-prevention executives at 60 retailers, shows that retailers suspect that 5.5 percent of holiday returns are fraudulent. And while technology has helped curb illegitimate returns, NRF said, there’s only so much companies can do about retail fraud, which is often suspected to be the work of crime rings.


Eliminate the Practice of Wardrobing in Your Store

Well here’s a new one to me.  The art of wardrobing.  It’s a term coined for shoppers who buy merchandise with the full intent of using it, then returning it for a full refund.  Take a read of the article as the insight is fascinating.

I was astounded to learn that “nearly two-thirds of merchants had items wardrobed in 2007, up from 56 percent the year before, the first year the National Retail Federation (NRF) started tracking the trend,” according to the article.

The term wardrobing was chosen (I’m guessing) because it stems from clothing that’s been purchased, worn and then returned.  But the article points out that wardrobing has taken on a broader meaning and is now applied to any merchandise that’s been used and then returned.

So how big is wardrobing?  The article points out that “Wardrobers want to rent the things they want or need for free, which amounts to fraud, said Richard Hollinger, a criminology professor at the University of Florida who specializes in retail theft. He said return fraud, which includes wardrobing, fake receipts, and other practices, cost retailers an estimated $10.8 billion last year, up from $9.6 billion in 2006.”


RETURN FRAUD COST 9.1 BILLION IN 2013

Criminals trying to get refunds on stolen merchandise and customers engaged in practices like “wardrobing” cost retailers an estimated $9.1 billion in return fraud last year, according to NRF’s annual survey.

“While coverage of this issue paints return fraud as one of the less severe retail crimes, the fact of the matter is that returning used or stolen merchandise — or even using false tender to purchase items — is fraud, period,” NRF vice president for loss prevention Rich Mellor said in a release accompanying the survey. “Efforts to combat fraudulent activity are slowly starting to work, but criminals are becoming more savvy and technologically advanced in their methods.”

The dollar amount of fraud was up 2.8 percent from 2012, but the proportion of returns believed to be fraudulent (3.4 percent) remained the same. During the just-finished holiday season, fraud totaled an estimated $3.4 billion.

Fraud was experienced by virtually all retailers, with stolen merchandise involved in 95 percent of cases. Employee fraud accounted for 93 percent of incidents; 69 percent were returns of items purchased with fraudulent payment like stolen or counterfeit gift cards. Wardrobing — where customers typically purchase a dress for a party or a big-screen television for the Super Bowl and return the item after it has been used — accounted for 62 percent.


Wardrobing & Returns

Shark Tag DressThere is a new term in the retail dictionary. “Wardrobing” is the process where a customer purchases a piece of your merchandise, uses it one time, then returns it claiming a small flaw or just taking advantage of  your liberal return policy.

We see this especially in clothing such as expensive dresses, prom dresses, shoes and suits. But tools, electronics, beach wear and more can be a target. The problem is hardly new. However, it has always been frustrating. Not only has the retailer experienced a loss  since the merchandise is no longer new but chances are that you or your staff put a considerable amount of time into the initial sales process. Couple that with tight margins and expenses and the problem gets expensive quickly.

Add to this that word will spread. If your store is known as an easy mark for wardrobing, then this kind of shopper will flock to you like metal to a magnet.

The problem is also not just a brick and mortar store problem. In many ways it is worse for online stores. Because it is a faceless transaction, the shopper is more likely to feel comfortable about doing this.

Whether it is right/wrong or illegal, is a side issue. Wardrobing causes Retailers significant losses.

LPSI Shark Tag8  Shark Tag with Return PolicySo how do we fix the wardrobing problem that leads to your returns being higher than they should be? First look at your return policy. Have you dusted it off lately and updated it? Look at the circumstances of accepting returns. Look at the time limits. Is there a restocking fee? Is the customer responsible for shipping on certain items? Look at your competition’s return policies both in store and on-line. Maybe they have solved the problem and the wardrobers are now coming to you. If you would like, I can also be an LP sounding board (at no charge) for your return policy. Just call me, Bill Bregar, at 770-426-7593 x101.

We also offer an excellent fix for wardrobing. The “Shark Tag” by Alpha High Theft solutions basically puts an end to wardrobing. Shark tags are bright tags that mount directly to the merchandise or can be attached via a lanyard. An example could be that the Alpha Shark Tag is placed in a very obvious area such as the bust line (as a guy I would notice it!) of a prom dress. The Shark tag can be removed easily by the customer at home with a pair of ordinary scissors. Once the Shark Tag is removed, your stores policy kicks in. Without the Shark Tag attached, a return is no longer possible.

Also, Shark Tags are VERY inexpensive! If you would like a sample, please contact us.

Remember, you and your staff put a lot of time, effort and expense into your sales efforts. Do not let the thieves or even the wardrobers, rob you of your margins or even your business!


Why You Should Always Prosecute a Thief

law-3Throughout the last few years, I’ve encountered and had the chance to network with several small business owners in my community. Most of these encounters were a part of a retail/law enforcement partnership. It always seems that these smaller stores have the same shoplifting problems as the big box retailers, but with one key difference. Those small stores don’t have the sales figures to cushion them from losses. If I compared my store (a large national retailer) to a smaller store in the same shopping center, and that smaller store has even ¼ the loss I see, that could be devastating to their ongoing success. Part of the problem is that smaller stores are less likely to prosecute a shoplifter, which makes them a very soft target.

The case for prosecuting every shoplifter is strong. You can look at every major retailer across the country and they all have large Loss Prevention departments with the goal of prosecuting everyone that steals from them to the fullest extent of the law. Why do they do this, and better yet, why should you? First, it sends a very clear message. You will not tolerate stealing your hard-earned money, and if you come in my store and steal, you will go to jail. Second, it keeps prices low for your customers, and shrink low for you. Finally, if someone steals from you and damages your product, even if you recover it, you’re still at a loss. By prosecuting that shoplifter, you are entitled to recover what has been lost during that particular incident.

It’s important to send a message to shoplifters. Believe me when I tell you that shoplifters share trade secrets. Not only does word travel on the new item to boost, but where the easiest place to steal it is. Shoplifters are like water, they travel the path of least resistance. If they know that the small store up the road won’t call the cops if they are caught, then that’s where they are going. It’s basically a win-win for the thief. They can either come into your store, steal and get away, or they can get caught with no real consequence and be released only to try again. You have to take a stand against their criminal acts and show them that you will not be victimized by their actions. Money:
We all like to boast our low prices. You can’t have a successful business if your prices are significantly higher than your competitors. Well, shoplifting affects your ability to keep prices low. If you are logging loss month, after month, you’re going to have to raise your prices in order to make up for the losses. This may help in the short term, but over time, customers will seek out the best deal for their dollar. Prosecuting a shoplifter keeps that merchandise in your store, it keeps the product available for your customer and it ensures that you stay in the black.

Money: You’re in business to make money. When a shoplifter steals from you, they are taking money out of your pocket, and food off of your family’s table. Let’s imagine a shoplifter steals a pack of steaks from you. Maybe they put the food down their pants, but you catch them at the door and get your steak back. Would you really put that food back out for sale? Probably not. If you didn’t file charges against that shoplifter, he was able to still cause a loss to your store. By prosecuting this individual, you will be able to collect, through the court system, what is rightfully owed to you. You wouldn’t allow someone to come into your home and steal your TV with no consequence, so why let them do it to your business?

Every time I have the chance, I bring up these points to whomever will listen to me. What I see the most is small business owners being afraid to prosecute a thief for various reasons. The most common is the reluctance to go through the judicial process. I know… the wheels of justice turn very slowly these days, but that’s no excuse to let a thief go un-punished. Your business is your life blood, it’s how you feed and provide for your family, so next time you catch that shoplifter stealing your hard earned money, make sure that they are prosecuted to the fullest extent of the law.


E-Commerce Fraud:What You Need to Know

theft (13)With the digital age came different types of fraud retailers were not used to encounter in their daily operations.  Shoplifters came to the store and the loss prevention team knew the policies and procedures to follow to apprehend the shoplifter.  Now, retailers fear online fraud and debate on how to keep customers information safe.  The most prevalent fraud retailers are to be aware of is card fraud. Keeping cardholder’s information safe is a top priority for online retailers, and monitor suspicious transactions has become a top priority for them.

To learn or read more about e-commerce fraud follow the links below.


e-Commerce Fraud: The Rapidly Growing Challenge for Retail Investigations

Just as the word “e-commerce” has come to refer to a menagerie of different specialized markets, so e-commerce fraud comes in many different guises. And as the great pace of retail evolution dictates that retailers’ transaction processes are constantly changing, so the frauds change with them.

In a bid to stand on the top of the heap competitively, retailers are offering as many options to consumers as possible when it comes to ways to buy. You can place an online order at an in-store kiosk to be shipped to your house. You can place an order from your mobile device to be picked up at a local store. You don’t like the color of the new curtains you ordered through the online customer rewards program? You can return them to the nearest brick-and-mortar store to save on shipping.

There are multitudes of different ways for customers to shop in the modern omni-channel retailing world. But this proliferation of transaction processes can leave behind more and more holes that malicious actors can exploit. “You have this almost complete melding of digital and physical worlds now, and the primary challenge is keeping pace with that evolution,” said Jerett Sauer, director of loss prevention at Gap Inc. “Awareness of risk has always been a core part of any great LP program, and historically, digital space was outside that sphere of awareness; the focus was on people touching a POS or physical merchandise.


Kount and Ethoca Join Forces to Help Ecommerce Merchants Eliminate More Fraud, Accept More Orders

Kount, a leading provider of fraud detection and sales boosting technology, and Ethoca, the industry standard for collaboration-based technology solutions that help card issuers and online merchants increase transaction acceptance and stop ecommerce fraud, today announced a strategic partnership to help ecommerce merchants increase their overall acceptance levels.

Ecommerce merchants aim to strike a delicate balance: eliminating as much fraud as possible, while maximizing the acceptance of good orders. With the increasing frequency of data breaches and online security threats, many ecommerce merchants are tightening their fraud tools to stop as much fraud as possible, but that often results in too many good orders that are wrongly rejected and result in lost revenue.

Through its partnership with Ethoca, Kount now offers merchant customers worldwide an additional, complementary service with Ethoca Alerts. These alerts provide a safeguard to catch fraud that has already been confirmed between the card issuing bank and the cardholder.


Smart Card Technology Will Affect Your Fraud Prevention Strategy

With large retail chains like Target, Neiman Marcus and Michaels experiencing massive data breaches, U.S. banks and brick-and-mortar merchants face serious pressure to increase credit card security measures by implementing smart card technology.

This shift to more secure card-present transactions at physical, smart-card ready terminals will impact ecommerce sites as fraudsters are stymied at brick-and-mortar stores and turn their attentions to card-not-present (CNP) transactions online.

As smart cards become standard in the U.S., forward thinking ecommerce merchants must prepare for the coming increase in online fraud. Now is the time for software companies to ensure that their fraud prevention system is ready.

Brick-and-Mortar Merchants Face Serious Pressure


The 3 Essentials for a First-rate Loss Prevention Program

shoplifting6It’s never been more profitable to be a shoplifter.  In the past it was difficult to make money from stolen merchandise.  A thief commonly used a third party or “fence” to offload the product.  Fencing was a secretive, high risk job and “average” shoplifters had no way to establish a connection with one.  If they did have one he got a share of the profits, often the biggest cut.

 But, the internet has dramatically changed this process.  It allows shoplifters to function as their own fence.  They’re able to eliminate the middleman and sell directly to, usually, unsuspecting people.  Selling stolen goods is easier, safer and more profitable than ever before.  Therefore, shoplifting is on the rise and, to stay in business, stores have to be diligent when creating a loss prevention program.

There are 3 main essentials needed for a successful loss prevention program.  The 1st and most important is proper store management.  This topic is thoroughly discussed in other articles on this site.  But, while vital, good management goes only so far.  Ultimately, an effective plan also includes 2 other essentials – towers coupled with security labels and hard tags.  

Towers are the 2nd essential piece of a successful security plan.  Checkpoint System is the leading provider of towers.  Checkpoint’s towers are plastic or metal structures and are positioned on both sides of an entrance.  They sound an alarm when an active Checkpoint tag or label, which is attached to the merchandise, passes through them.  Many shoplifters will by-pass a store with towers and, instead, target one without them.

A 3rd essential is hard tags and labels – Checkpoint has many types of each.  Tags are applied to items such as clothing, shoes, and purses; they need a special tool to be removed.  Some tags are filled with ink and will open if not properly removed.  Labels are attached to things like books, DVDs, cosmetics and are deactivated at the point of sale.  When shoplifters see a label or tag, they’ll often move on to merchandise that’s not so well protected.

Making a store a difficult target can keep thieves out of it, which creates a more pleasant, safer environment for employees and shoppers.  Just as importantly, Checkpoint can be the difference between staying in business or closing the doors.  Checkpoint System, coupled with security savvy management, can go a long way towards producing a profitable store.


Nicole Abbott is a writer and psycho-therapist with over 20 years of experience in the fields of mental health and addiction.  She’s an educator, consultant, lecturer, trainer and facilitator, who has conducted over 200 workshops, trainings, presentations, college classes and seminars.

Video Surveillance In Your Store

shoplifting2Surveillance in your store can be a big deterrent for shoplifting and employee theft.  The knowledge that your store is protected, or at least that there are cameras capturing images of employees and customers, can help you save thousand of dollars yearly.  Employee theft is costing the retail industry millions of dollars every year and installing a type of security in your store can help you reduce the shrinkage you are experiencing.

For more about shoplifting, follow the links below.


Surveillance best cure for shoplifting

Aside from the holiday seasons where people aimlessly weave through cart-to-cart traffic down aisles in department or convenience stores, it’s difficult to predict when there will be spike in theft.

Particularly, shoplifting.

As of Friday, the Hutchinson Police Department has worked two cases of shoplifting this month. Granted, only nine unpredictably cold and not-so cold days have scooted by in March. But January and February were hot months for shoplifting with officers responding to 61 combined reported cases of shoplifting, according to Hutchinson Police bulletin archives.

There were 24 reports of shoplifting in December. Numbers from the archive bulletin suggests the shoplifting occurs at three of the most recognizable stores in the city: Wal-Mart, Dillons and various Kwik Shops.

Hastings, Target, J.C. Penney and Kohl’s are also sprinkled on the list of popularly shoplifted stores.

But why the heart-monitor like spike in thefts recently? Police Lt. Martin Robertson isn’t sure of the answer himself.


US based company allows shoplifters to avoid the police by charging them for an online course

IN THE game of Monopoly, there’s nothing better (apart from maybe winning free parking) than turning over that community chest card to see the words “get out of jail free.”

Now imagine that someone hands you that card after you’ve committed a criminal act in real life.

That is essentially what one company based in the United States is doing.

The Corrective Education Company (CEC) is a start-up, and works with businesses to offer shoplifters an alternative path to reform other than the boring old legal system.

Founded by a pair of Harvard graduates, it offers the chance for apprehended shoplifters to pay $411 ($US320) in order to avoid a phone call to the boys in blue.

That money goes towards the cost of attending an online course which is run by CEC that claims to reduce the likelihood of recidivism for the individual.

The obliging shop owners who refer the shoplifters get a cut of about $US40 per offender, and according to Slate around 20,000 offenders have so far coughed up for the program.

That works out to be $7.2 million that CEC has profited by blatantly circumventing the established judicial system.


Walgreens Shoplifting Duo Captured On Surveillance