Loss Prevention Strategies Flashcards
7 cards from real CSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Loss Prevention Strategies flashcards as text
Which metric is most commonly used to express a retail store's shrinkage as a performance indicator?
Answer: Shrinkage as a percentage of net sales
Shrinkage rate expressed as a percentage of net sales allows consistent comparison across stores of different sizes and sales volumes.
The 'booster bag' technique used by shoplifters is designed to:
Answer: Defeat electronic article surveillance (EAS) systems by blocking the RF signal
Booster bags are lined with aluminum foil or other metallic material that shields EAS tags from detection at exit pedestals.
Which of the following is an example of administrative or 'paperwork' shrinkage?
Answer: Inaccurate receiving records leading to phantom inventory
Administrative shrinkage results from errors in paperwork, data entry, or receiving processes—such as not accurately recording shortages at delivery—creating discrepancies between book and physical inventory.
Under the legal standard used in most U.S. states, a loss prevention officer may detain a shoplifting suspect when:
Answer: There is probable cause to believe the person has committed shoplifting
Most shopkeeper's privilege statutes require probable cause—reasonable grounds based on the officer's direct observation—before a lawful detention can be made.
Which loss prevention technology uses RF-based hard tags and pedestals to detect unpaid merchandise at store exits?
Answer: Electronic article surveillance (EAS)
EAS systems use radio-frequency (or acousto-magnetic) tags attached to merchandise that trigger an alarm at exit pedestals if not deactivated at purchase.
A 'refund fraud' scheme in which stolen merchandise is returned for cash without a receipt is most effectively countered by:
Answer: Requiring photo ID and limiting cash refunds without a receipt
Requiring ID for no-receipt returns creates an audit trail and deters fraud, while limiting cash refunds to store credit reduces the financial incentive.
In loss prevention, 'shrinkage visibility' refers to:
Answer: The ability of management to measure and track inventory losses accurately
Shrinkage visibility describes how well an organization can identify, quantify, and attribute inventory losses—enabling data-driven loss prevention decisions.