Sample Management Paper on Loss Prevention Tools and Techniques

Loss Prevention Tools and Techniques

Various technologies have been used in securing different areas. This is because of the associated capabilities of the technologies in protecting the areas. It is believed that their presence works to deter criminal acts and help in preventing loss. To deter means to discourage someone from performing a criminal act. These technologies instill fear of being caught by people with ill motives. It is believed that a security system will act to deter about 85% of cases that involve intrusion attempts (Julian, 2012). This is known to prevent loss from theft, in cases where security systems are known to capture an image of people being involved in criminal acts. In the United States, these systems are deployed and controlled to help deter criminal acts in the neighborhoods, roads, and other areas of social gatherings. On the other hand, these systems minimize criminal acts in such areas since people find it difficult to get involved while their images are being caught on camera or other security monitoring systems.

This is because it is established that crimes in such areas are known to reduce due to the presence of such systems. In the retail business, these deterrents are widely used to deter the theft of goods or acts of mugging. There are technologies that deter such cases and are widely employed in the retail industry.

Security Personnel
This consists of armed security personnel and plain clothes police guards. It is an effective way majorly used to deter criminal acts that involve logistics or transportation of retail goods from manufacturer enterprises to warehouses and distribution centers within a company. They act to prevent cargo theft that is being transported to various regions.

The use of security personnel is an effective method that has been used in the Bermuda crime triangle, Memphis, and areas in Chicago due to the presence of major distribution nodes of multinationals preventing truck hijackings (Russel & Hays, 2000).

Closed Circuit Television
Closed circuit television is the most common technology used in most retail enterprises to deter criminal acts. This is a technology that is integrated into the enterprise. It uses a powerful lens fitted with the latest technology in facial recognition to capture the facial and motion aspects of criminals in a retail establishment. In the developed world, which consists of large multinationals like Wal-Mart, a complex version of the system known as the high pixel rate video is used to capture images of criminals who engage in unethical acts such as shoplifting products without making payments for such goods.

Exception Based Reporting
Exception reporting is a process that is widely used in the retail industry to prevent fraud-related cases involving point of sale systems (POS), at the cash register, and on the World Wide Web in cases involving credit card number fraud. It is an analytic method that uses some reporting system, which screens financial information of credit card-related transactions, against some business rules with the aim of detecting some data that do not match, with prescribed business rules of credit card transactions. It is a loss prevention method that detects the individual range of transactions and identifies suspicious ones when certain transactions exceed limits based on a given credit card profile.
Electronic Article Surveillance
This technology is used to deter shoplifting activities in retail stores. Most retail stores use the technology that employs the use of special tags that are fixed on merchandise, such as books or clothes. It acts to deter theft in retail stores by activating an alarm system when a good has not been paid for. This is because it is connected to the barcode, which deactivates the tags when the particular good is paid for at the counter hence not initiating the alarm system at the point of exit. It controls shoplifting because a thief may not be able to identify of spot the tag appended on a cloth or goods (Siegel, 2008). In other cases, manufacturers embed small tags known as source tags. This prevents cases of shoplifting since criminals cannot remove the embedded tags.

Merchandise lock up
Merchandise lockups are special cabinets placed within the retail business, that house goods in a locked-up cabinet. Goods are placed inside special transparent cabinets and locked up to prevent shoplifting. This prevents theft because thieves cannot break or access the cabinet since it is locked. On the other hand, cable locks are used to deter criminals from picking goods from the shelves.

DispenSafe Intelligent Displays also act to prevent shoplifting. This is because goods are placed indispensable units that accept money and guide one in the process of buying a product through a series of buttons.

Mirrors are found in almost every retail establishment. For instance, convex mirrors fitted along corners and hidden areas in a retail establishment are used to deter employee theft (Purpura, 2008). They display the real action through a reflection mechanism, which displays the person performing the action from a distance. Mirrors are used to deter and prevent instances of shoplifting since criminals tend to isolate themselves from areas that are known to have such mirrors.

On the other hand, such mirrors are ever present in small establishments, which display the walking paths and every activity that occurs hence deterring such criminal acts.

Point of Sale Activation
This acts to prevent theft by ensuring that certain tags are unlocked upon being checked at the point of sale system. The system connects to the inventory system, which invokes a un clocking procedure in order to free up a particular good upon being bought. It is an effective method of deterring theft at the shelves, since criminals may change the pricing details of goods picked from the shelves.

This refers to Radiofrequency Identification. It is an effective technique used in deterring theft in the retail business. It is regularly used by multinationals that engage in the retail business to track goods along their supply chain processes. It is a successful technology that uses tags on goods that are aimed at tracking every step in the supply chain process. This prevents lapses by establishing the current position of goods, as they are distributed from warehouses to companies’ distribution centers. It provides accurate information and prevents theft (United States Federal Trade Commission, 2005), through the scanning capabilities enhanced through the barcode scanners.

Posting Signs

Posting signs are majorly used as a situational crime prevention method. A posting sign acts as a warning sign that informs a potential criminal of the presence of some form of the monitoring system, such as a camera, which monitors the areas that are most vulnerable and prone to shoplifters within the retail house.

The different methods of controlling, preventing, and deterring theft have been in use and are known to be effective in preventing criminal activities. They use technology to perform activities for the betterment of the industry. Most companies use a couple of techniques to safeguard their goods. It is imperative that companies deploy either of the technologies in order to guard and reduce instances of theft.


Julian, T. (2012). Deter & Minimize: The Facts You Need To Know About Home Security. 1st ed. Pittsburg: Dorrance Publishing.

Purpura, P. P. (2008). Security and Loss Prevention: An Introduction. Amsterdam: Elsevier/Butterworth-Heinemann.

Radio Frequency Identification: Applications and Implications for Consumers. (2005) Washington, DC: U.S. FTC.

Russell, S. H. (2000). “Logistics Crime.” Air Force Journal Of Logistics 24(1), 16. Academic Search Premier. Web. 23 Apr. 2014.

Siegel, L. J. (2008). Criminology: The Core. Belmont, CA: Thomson/Wadsworth.