Business Crime Prevention

North Carolina

Governor's Crime Commission

a division of the North Carolina

Department of Crime Control and Public Safety

BUSINESS CRIME PREVENTION Logo: Crime Prevention is Everybody's Business

Bad Checks
A check is not cash, but an "IOU" or promise that cash will be paid upon presentation of the check at the writer's bank. A check is bad when it cannot be redeemed for cash.

Establish a firm check-cashing policy and post it where it can be easily read by customers and referred to by employees. This policy should specify your acceptance criteria concerning the following information:

Amount of Check Limit the amount for which a check may be written or limit it to the amount of purchase; require management approval for any check written in excess of a set dollar amount.
Two-Party Checks Two-party checks have a higher incidence of unreliability and can be more difficult to collect.
Local vs. Out-of-State Checks Local check writers are easier to contact for collection. North Carolina courts cannot prosecute out-of-state check writers unless they can be contacted within our state.
Identification The primary identification for collection purposes is a driver's license or special identification card issued by the state.
Other Limits Specify any other limits so they will be clearly understood by customers and employees.
Returned Check Fee Collect a returned check processing fee of up to $20.00. All checks should accurately reflect the name, address (mailing & physical), driver's license or valid identification number, and home and work phone numbers of the check writer. If this information is not accurately recorded on the check, the employee should write it clearly on the check. The following items should also be considered when accepting a check:
Make sure name, picture (or description), and signature match the check writer's identification;
written and numerical amounts agree;
correct date (not postdated);
any erasures, alterations, or abnormalities;
low check number (new accounts can be less reliable);
local vs. Out-of-state (use extra caution when accepting an out-of-state check. The writer should be a NC resident in case he needs to be contacted for collection).

Counterfeit Bills
The three basic types of counterfeit bills are:

Low denomination bills altered to appear higher (corners of large bills glued to small bills)
Photocopies of authentic bills , and
Printed counterfeit bills.

Inspect all bills, especially larger ones, for appropriate portraits.

Compare them to known bills of the same denomination.
Look for differences, not similarities.
Counterfeits will be less detailed
have a flat appearance appear washed out
Authentic bills are always printed on safety paper with fine red and blue hair-like fibers imbedded in them Do not be fooled by colored lines printed on paper.

Credit Card Fraud
Many people use credit cards as their preferred method of payment. Unfortunately, the use of stolen or forged credit cards is also a popular tactic among crooks. You and your employees should follow the strict acceptance procedures set by each credit card company. Keep the following points in mind to further reduce your chances for loss.

Keep a copy of credit card agreements on file so they can be easily retrieved.
Post a procedural guide for credit card transactions next to the register.
Install a telephone at the register; post authorization numbers nearby.
If uneasy about a transaction, call the credit card company and ask their security personnel for advice before completing the transaction.
Do not return the card until they instruct you to do so.
Have employees initial credit transactions in the event of a discrepancy.
Protect yourself and your customers by keeping credit card transactions confidential. Give charge slip carbons directly to the customer or have them destroyed immediately by personnel. Thieves can obtain names and numbers from the trash and use them for fraudulent mail or phone order scams.
Charge-backs can occur if a cardholder disputes any charges, especially in mail or phone orders.

Special precautionary guidelines are available from each credit card company. Stay on the alert for merchants, typically telemarketers, who ask you to deposit their sales drafts. When a licensed business owner or employee runs the sales drafts for another business, the process is known as "factoring." Factoring is strictly prohibited in North Carolina. Chances are you will never be approached with such a proposition. If you are, contact your bank immediately. If you become involved in factoring, you will be held responsible for all financial losses, and if fraud is involved you will face criminal prosecution.

Employee Theft
is an illegal act (i.e. stealing cash, goods, equipment, supplies, time, services, etc.) committed by a business employee against his employer. About 80 percent of all crime-related losses are due to employee theft. The following guidelines may reduce the risk of your business.

Monitor cash register activities to ensure proper operation. Do not allow employees to handle any transactions or sales to themselves, close friends, or family.
Monitor business activity and income patterns over time to see if income has dropped during any particular situation.
Use a shopping service or a trusted outside person to pose as a customer to find weaknesses in your operation.
Separate operations from accounting; double check all transactions.
Keep an accurate inventory system and have it checked regularly by someone other than the person responsible for it.
Keep accurate records on movements of cash and goods from the time they enter your business until they leave.
Establish a very clear employee discount and fringe benefit policy.
Limit access to valuables; use strict key control for access to business premises, store rooms, and display areas. Employees' personal belongings should be stored in a safe place with limited access, away from concealable merchandise.
Search trash regularly to prevent goods from being carried out with it; flatten boxes to eliminate possible hiding places for merchandise.
Limit the number of exits and monitor employees to make it difficult to carry merchandise out without your knowledge.
Lock screens over outside openings through which goods can be passed.
Have employees park away from the building to reduce access to personal vehicles where goods may be hidden.
Sign all tools and equipment in and out.
Reward employees who discover and report security problems.
Deal with dishonesty swiftly, firmly, and visibly: rules mean little if not enforced!
Install security cameras

Fraud and Con Games
have been around for many years; they constantly change their tactics to deceive individuals who are attracted by what sounds like a good deal. Every year hundreds of North Carolinians are swindled out of their hard earned money by falling for the seemingly innocent ploys of these con artists. The Crime Prevention Division offers a program that describes the most common schemes to look out for, and offers steps that individuals can take to avoid being victimized.

Popular fraud schemes are described in a brochure entitled "Fraud Hurts, Think Smart - Use Your Head Not Your Heart." Other con games are described in "The 20 Most Insidious Cons Operating" flyer. Both publications may be obtained from the Crime Prevention Division.

Protect yourself and your money from con-artists by using common sense and by taking a few simple precautions while handling money or bank cards in public:

Police and bank personnel should never ask you to take money out of your account or ask you to give them your secret ATM code. If they do, tell the bank manager or a police officer you know.
Never allow anyone to watch while you use your ATM card or code.
Do not be intimidated by a salesman or allow him to talk you into anything.
If a deal or money-making plan cannot wait for you to check it out, pass it up.
Read and understand any contract before you sign it.
Verify door-to-door salesmen with law enforcement or the Better Business Bureau.
Deal only with local businesses you know.
Do not enter a contest or accept free gifts or prizes unless you clearly understand all of your obligations.
Never pay for something you did not order or do not want. Simply refuse to accept delivery or make payment.
Buy insurance from someone you know and trust, preferably someone who is local and has an excellent reputation. Buy only what you need and can afford.
Never give credit card numbers over the telephone unless you initiate the action with a reputable company. In the wrong hands, your credit card number can be used fraudulently against you.

No one is immune to the schemes of the sophisticated con artist. Your best defense is to be suspicious of anyone offering you a "great" deal and to deal only with local businesses you know well. Always remember "If it sounds too good to be true, it probably is!" (Technical assistance and materials available.)

Robbery Prevention
Robbery occurs less often than other business crimes, but the potential for loss, injury, and death is much greater from a single incident.

Employees should be trained to protect themselves and the business by reporting any suspicious person or activity immediately, and by making notes for future reference.
Security-related training should be on a need to know basis only.
Caution employees against divulging security information to anyone who has not been cleared by you.
Keep employees away from the register when not in use.
They should stay busy keeping your business neat and clean.
Every person who enters the store should be acknowledged and greeted in a friendly manner. The presence of alert, efficient, and capable employees will discourage a thief.
Maximize visibility into and out of transaction areas by keeping windows clear, keep your business interior and exterior well-lit, and install security cameras at all exits
Keep a small amount of cash on hand and use a drop safe (which cannot be opened by employees on duty) for large bills and excess cash. Place notice of this fact, along with a robbery awareness poster, where any would-be robber will see them.
Make deposits at the bank often each day, and at different times. Carry deposits inconspicuously inside your clothing. Ask about a police escort
Use a staggered method of opening and closing
While one employee enters the premises and determines it is safe, a second monitors from a safe distance outside. When signaled, the second employee is let in by the first. A similar procedure should be used at closing.
Control entry to your business at all times. Everyone, including delivery men and employees, should enter through a monitored entrance. Keep all other doors locked.
Do not allow customers or non-employees inside after hours. Be especially wary of anyone seeking entry before opening or after closing. Beware of emergency calls or attempts to get you to your business outside of regular hours.
Do not work alone. Leave a radio or television playing in a back room to give the impression that someone else is present.
Put height markers on door trim to aid in descriptions.
Make your address easily visible to emergency units.
Ask local law enforcement what actions you should take as they respond to your location for a robbery in progress.
If You Are Robbed -- REMEMBER Do not resist Obey the robber's instructions. Observe the suspect for later description. Call local law enforcement as soon as possible.

Violence in the Workplace

How to Create a Safe Workplace
Is It a Serious Problem?
What Can Be Done to Prevent Workplace Violence?
What are the Warning Signs?
What are the Costs to Your and Your Employer?
Who Do You Contact?

There are five categories of workplace violence, each having its own unique set of motivating factors:

robbery and other commercial crimes;
domestic and misdirected affection cases;
employer-directed violence;
situations involving law enforcement or security officers;
terrorism or hate crimes

According to the Department of Justice, 1 in 6 violent crimes occur in the workplace. According to the Centers for Disease Control and Prevention, "murder" is the leading cause of death for women on the job - more than from any other source of occupational injury. In 1992, workplace homicides were the leading cause of job-related deaths.

What Can Be Done to Prevent Workplace Violence? The best deterrent to workplace violence is to conduct adequate screening and not hire employees with a history of violent behavior. Employers should establish a zero tolerance policy for threatening or engaging in violent behavior, providing for employee disciplinary action up to and including dismissal. Supervisors and employees should be trained to look for "red flags" or warning signs identifying emotionally upset workers. An employee assistance program should be provided for counseling and referral. A crisis management or threat assessment team should be developed to evaluate incidents and provide a mechanism for employees to report threatening situations. Access control should be exercised to limit the traffic flow and the number of non-employees in the workplace. A violence reaction plan should be developed that includes emergency aid and post-incident response measures.

What are the Warning Signs?
Overreaction by the employee or customer to changes in existing policies, or adoption of new one.

Burglary Prevention

Burglary Physical security constitutes 90 percent of burglary prevention. If your building is locked and unauthorized entry is made difficult, time consuming, and conspicuous, chances of a successful burglary are minimized.

Locks on all outside entrances and inside security doors should be double-cylinder deadbolts with movable collars.
They should be recessed into the door and should have at least a one-inch throw containing a hardened steel insert protected by a latch guard.
Padlocks should be made of hardened steel and mounted on bolted hasps. Keep them locked to prevent exchange. File off serial numbers to prevent new keys being made.
Entry doors should be of solid construction, metal-lined, and secured with heavy metal crossbars.
Door jams must be solid. Exposed hinges should be pinned to prevent removal.
Windows should have secure locks and burglar-resistant glass. Use heavy metal grates on all windows, except possibly display windows.
Good visibility should be maintained through windows; expensive items should be removed from displays before closing.
Lights must provide optimum visibility inside and out, with vandal-proof covers over the outside lights and power source.
The perimeter must be well-lit, especially around all entry points.
Alarm systems should be supplied by a licensed alarm company with a central monitoring station. Check the system on a daily basis. Advertise its presence to deter break-ins.
The cash register should be in plain view from outside so it can be easily monitored. Leave the drawer open when empty or not in use.
Safes should be fire-proof, burglar resistant, anchored securely, and in plain view. Leave them open when empty, and use them to lock up valuables when the business is closed.
Change combinations when anyone with safe access leaves your employment.
Maintain good visibility. Landscaping, boxes, and trash bins near the building can give a criminal cover or access to the roof.
Check your building exterior (roof, cellar, walls, etc.); secure all openings larger than 12x12.
Perimeter fences should keep intruders out and allow good visibility of your business by neighbors and police. Alarms on fences can give you additional protection. Guard dogs inside fences are also effective in deterring unauthorized entry.
Your NCDL or Social Security number should be engraved, and Operation ID stickers displayed, on enticing objects.
Keep accurate records of serial numbers on all items to help in recovery.
Tightly anchor all equipment/merchandise to a secure base to delay the efforts of a burglar.
A closing security check should include the entire interior of your business so you do not lock an aspiring burglar inside. Check the exterior to make sure that there have been no security breaches.