What is Loss Prevention?
Loss prevention is a form of investigation into larceny or the theft of items of value, such as money, physical goods, information, data, or services, usually from a business. The purpose of a formal loss prevention program is, at its most basic level, to “prevent losses.” This is accomplished by understanding where problems, theft, or “leakage” occur and implementing policies, procedures, and controls to prevent further loss. This is sometimes called reducing “shrinkage” (not to be confused with the Seinfeld definition). Retailers also refer to the process as asset protection.
The primary focus of loss prevention investigations usually includes investigating losses related to:
- Shoplifting by customers or clients
- Package pilferage
- Credit and check fraud
- Employee theft or internal theft
- Employees providing excessive discounts or free items to family or friends
- Corporate fraud schemes
- Stealing personal information from customers
Managing Loss Prevention
In most situations, a company designs, implements, and executes its loss prevention strategy. Company executives are usually responsible for developing the overall strategy, and management at all levels is responsible for the day-to-day execution. Often, companies have dedicated departments, such as risk management or corporate security, focusing on preventing losses.
Outside consultants specializing in asset protection are sometimes hired to help develop the strategy and implementation plan and may even provide the service as an outsourced service.
In situations where losses occur, the company then conducts its internal investigation. This investigation is critical to gather evidence for proof of loss, which may be necessary for insurance claims. In more severe situations, law enforcement may be called in to investigate further and possibly to make an arrest.
The following books provide additional information on preventing corporate theft, embezzlement, employee stealing, and crime prevention. The books will help you:
- Understand how people steal from businesses
- How to identify loss patterns
- Learn how to implement procedures and protocols to prevent or minimize losses.
- Learn the appropriate theories, techniques, and equipment to solve theft, embezzlement, and shoplifting crimes.
- Build a professional library of reference books that will help guide you through the intricacies of investigations.
View other books for private investigators.
Resources for More Information
Following is a collection of resources for those who are interested in learning more:
LPJobs.com – This website is an excellent resource for those interested in starting a career or finding a new job. LPjobs.com is the leading retail loss prevention employment site that offers job seekers comprehensive resources for finding a job online.
Hire a Private Investigator / Loss Prevention Specialist
Private investigators are sometimes called to investigate corporate crimes such as internal theft or corporate espionage. Hire a Private Investigator in your local area to evaluate your situation.
Questions and Comments
If you have any questions about loss prevention, please post a message below.