Kevin Ian Schmidt

Category: Loss Prevention

  • Factors to Consider in an Investigative Interview

    Factors to Consider in an Investigative Interview

    The interview element of a workplace investigative interview isn’t easy and it can be even more difficult when there are conflicting responses to investigative interview questions. The number of people interviewed can also affect the investigator’s ability to determine credibility. Too few (ie, just the complainant and the subject) and it becomes one person’s word against the other. Too many (ie, multiple witnesses) and some may have conflicting stories due to bias. The EEOC recommends weighing the credibility of each person interviewed in order to find out what actually took place during the incident.

    Factors to Consider:

    The EEOC has put together a list of 5 factors to consider when trying to determine the credibility of statements and responses made during the interview process. However, it is also important to note that these are “things to consider” and not the “be all, end all” for determining credibility.

    1. Inherent Plausibility:

    Watch for the presence and order of key facts presented by everyone interviewed.

    Is the testimony believable at face value? Does it make sense? Watch for the presence and order of key facts presented by everyone interviewed. You may also want to consult any materials in the workplace that could back up the facts of the story- security videos, whereabouts of the employees in the workplace, timing of events, etc.

    2. Demeanor:

    Did the person seem to be telling the truth or lying?

    Check Out: Effective Communication Skills – LISTENING

    3. Motive to Falsify:

    Did the person have a reason to lie? Does the person feel threatened for any reason? Bias and opinion can sometimes get in the way of telling the truth. Consider any connections that people have to the incident or to the complainant and the subject. Could these connections cause them to lie because they know their friend will get hurt? Do they fear retaliation from others for being involved in the interview? Address these issues and enforce your zero-tolerance policy when it comes to retaliation in the workplace.

    Learn about the PEACE Method of investigative interviewing for a better way to conduct interviews.

    4. Corroboration:

    Watch for commonalities or discrepancies in witness stories and the claims made by the complainant and the subject in order to get a better picture of what took place during the incident.

    Is there a witness (such as an eye-witnesses, people who saw the person soon after the alleged incidents, or people who discussed the incidents with him or her at around the time that they occurred) or physical evidence (such as written documentation) that validate the party’s testimony? The information gathered from these individuals needs to be weighed and considered for accuracy- if the witnesses have any bias towards either individual involved in the incident, chances are their story will reflect it. Watch for commonalities or discrepancies in witness stories and the claims made by the complainant and the subject in order to get a better picture of what took place during the incident.

    5. Past Record:

    Did the alleged subject have a history of similar behavior in the past? Many times, past behavior is predictive of future behavior, but is not always the case. It is beneficial to be aware of repeat offenders in the workplace and what conclusions and actions were taken in their previous cases.

     

  • Outsourcing Loss Prevention: is it worth it?

    loss preventionOutsourcing is not a new concept but one that is growing by leaps and bounds across all corporate environments. Originally, only large corporations engaged in the outsourcing of business units and tasks. Now the concept is invading the mid-sized market as a viable business strategy.

    According to the Outsourcing Institute, in 1996 outsourcing was viewed as a viable means to achieve cost control or economies of scale. Today outsourcing is an essential management tool for success in business innovation, global expansion and competitive advantage.

    Many companies, regardless of size or product, have found that outsourcing non-core competencies has allowed them to achieve greater financial success while gaining additional and previously unavailable resources.

    As an example, how does this affect the trucking industry? The core competencies of the trucking industry surround the timely movement of freight. The security of this freight and the potential for loss, a non-core competency, is a significant candidate for outsourcing. The management of transit and other liability claims is one example of outsourcing already familiar to many trucking operators.

    In today’s environment, freight loss poses a significant threat to profitability. The maintenance of a centralized security or loss prevention unit can so easily become a costly overhead with less than satisfactory return on investment. Frequently, overinflated management with layers of administration reduces productivity. At the other extreme, forcing a security department to become too lean to be a real value is also pointless. Real effectiveness comes from the ability to call upon additional expertise and resources when they are needed. An efficient security director is in a position to recognize and justify such needs.

    In some situations, the security function has been perverted by unnecessary and unproductive demands from senior managers. When the security department is viewed as a SNOW Department–”stuff no one else wants”, they are tasked with requirements that are contradictory to, and interfere with, their primary responsibility for security of corporate assets. Actual examples of such requirements being placed on the security department include:

    • Sharing their vehicles with other departments, causing delays in accomplishing security responsibilities due to lack of transportation.
    • Picking up the children of senior managers from their school and acting as babysitters because the manager’s wife wanted to go shopping without the children
    • Routinely delivering office supplies to other company locations.
    • Changing daytime work assignments to “chaperone” painters in the building at night, a normal Maintenance Department function.

    Reliance on law enforcement is no longer part of the protection plan. Law enforcement agencies, for a variety of reasons, respond to public demands to the frequent exclusion of your business interests. Business losses are frequently considered nothing more than “the cost of doing business”, even to the extent that investigators and prosecutors take the view that the business owner can afford it.

    Therefore, loss prevention and recovery rests almost entirely on your business strategies. A department store Vice President for distribution complained bitterly that his company was unable to persuade a district attorney to prosecute in a case involving high volume product theft in their distribution chain. Weaknesses in the company’s own security planning and resources were in part responsible. How to best meet your needs is utilization of all available security and loss prevention related resources.

    What Are the Advantages of Outsourcing Your Loss Prevention Function?

    • Distance Management of a loss prevention function with extended geographical responsibility is an expensive venture. As the geographical area expands, efficient control of loss prevention activities may be reduced by distance, international boundaries, and even time zone differences.
    • Cost-savings In-house management costs increase even as the slightest geographical and business responsibilities increase. Outsourcing budgets are much more focused on a return on investment rather than maintenance of in-house specialist costs. Why? One reason–visibility.
    • Visibility The daily inefficiencies, distractions and politics of the in-house function are replaced with a cost and time sensitive, performance driven service. Outsource vendors cannot afford the inefficiencies so easily tolerated by corporate employees and employers whose ability to discern a “busy” department from a “productive” department is limited.In-house loss prevention functions frequently, over time, result in empire-building. “I am a manager, therefore I need a secretary to handle my calls.” Sometimes even the secretary believes that an assistant is needed. Now we have to make some “busy work” to justify the salaries of the additional staff. This in most cases ends up with a “top heavy” organization with more bosses than workers. Costs rise and productivity remains constant in spite of additional staff members. More is not necessarily better–efficiency of effort is all important. “What is the return on investment for each additional staff member?” should be the manager’s constant question.
    • Focus Another advantage of an outsourced loss prevention and security function is that the essential day-to-day operations are delegated to the outsource vendor, allowing management to focus on their corporate goals. The outsource vendor does not operate in a vacuum–frequent, but cost-effective interaction with a management representative provides the collaborative exchanges necessary to meet corporate objectives. The outsource service vendor is a vital element of your management structure but without the many ancillary costs of an in-house department.
    • Capabilities Outsourcing can lead to expanded capabilities within the national and international marketplace. The outsource vendor may have international contacts and associations with which to serve the freight industry. This allows a freight company operating in or planning to enter the international arena to have access to qualified and knowledgeable loss prevention network throughout the world.Have you seen the proposed operating cost budgets for opening up a new area service? How often do you take big risks just to keep the startup costs down? The economies of scale available through the outsource vendor provide the business manager with resources without the residual costs of having an agent in place, just waiting for work to come his way.
    • Resources The major advantage of outsourcing freight industry needs is the diverse and valuable availability of resources not normally found within the business unit. Can you imagine the manpower costs of having to maintain all possible resources within your business–a loss prevention risk analyst, forensic accountant, security system integrator and design specialist, investigators, etc? Many of these individuals would be used on a very limited basis at high cost to your business. The outsource vendor provides these individuals on an as-needed basis through alliances with other similarly placed associates.
    Consider This While Pondering Outsourcing Los Prevention
    • Currently there is a considerable battle for talented staff.
    • Unless the individual can be fully utilized at the individual’s level of competence, the probability of recurring employee turnover exists.
    • With a multitude of requirements, the outsource vendor can financially justify employment of talented parties to service numerous clients without compromising client confidentiality.
    • The shortage of talent within the international market is particularly evident.
    • Due to different cultural and ethical considerations, an extended vetting period is required to identify qualified international staff members.
    • The outsource vendor’s experience, contacts and associations will serve your corporate objectives much faster.
    • The most productive and budget conscious Security Directors commonly use their outsource relationships to meet peaks in demand.

    Visibility Means Knowing Where You Are

    Through the outsourcing venture, business risks are shared. The outcomes expected from the vendor can be quantified to establish realistic benchmarks for program success. Goals are identified and remuneration is contingent upon goal accomplishments. If benchmarks are not met, a financial cost may accrue to the vendor through lost incentives or agreed penalties. If benchmarks are surpassed, financial gain is the reward. Profitability of both parties is influenced by goal setting and remuneration packages. With an in-house loss prevention function, the incentive of increased profit for the service provider is missing–therefore a frequent attitude is “I’m going to get paid my salary regardless of the outcome of my efforts.”

    Check Out: External Theft – Shoplifting

    The Rewards of Outsourcing Loss Prevention

    Outsourcing has evolved over the past few years from a purely tactical, cost-cutting move to a strategic business tool. For the buyer, outsourcing advances a “core competency” business strategy. By leveraging the outsourcer’s core abilities, the buyer can enter new markets and gain access to state-of-the-art technologies without investing directly in their development or exposing themselves to more risk than is necessary.

    Outsourcing also lets the buyer leverage the provider’s knowledge-repository of services and abilities, while providing access to individuals with specialized skills that might otherwise be both expensive and difficult to attract. Along with skills, the buyer gains access to the provider’s depth of experience performing the service, and the ability to perform at market rates. 2

    Caveat Emptor

    This discussion leaves one very important factor to mention. Successful selection of your security consulting and service vendor comes from the ability to create a continuing partnership based on trust and mutual respect for the other’s business. Above all, the vendor absolutely must identify with and support your business culture. For some security vendors that is a tricky and almost impossible task. Only those who observe and practice business priorities as a precursor to security priorities should be considered as your long-term outsource partners.

  • External Theft: Shoplifting

    External Theft: Shoplifting

    External theft is the stealing of merchandise, cash, goods, or fraud resulting in loss by shoplifters.  According to the Hayes International Theft Survey, there were 1,014,817 shoplifting apprehensions resulting in a recovery of over $111 Million from the participating 25 retailers in 2009.  This number is actually an increase of 1.0% from last year.

    woman in a supermarket stealing a bottle of champagne
    woman in a supermarket stealing a bottle of champagne

    There are two main classifications of shoplifters: amateurs and professionals.  Most shoplifters fall into the amateur category.  Meaning they usually do not enter a store with the intention to steal.  They see an opportunity to steal an item and take it.  This group is also comprised of the teens under peer pressure to steal, or desire certain items to fit into a group but cannot afford them.  These types of thieves will demonstrate a high level of nervousness and will often be looking over their shoulder or avoid eye contact with associates.  They may also be looking around for security cameras before performing the theft.  These types of shoplifters will most easily be stopped by having an employee presence in the area to offer customer service to them, or even simply applying security tags on items.

    The professionals are the one’s who steal for a living.  These thieves are often very confident, have specific items in mind before entering the store, and are fast at performing the theft.  In some cases they can be in and out with thousands of dollars worth of merchandise in under 5 minutes!  These thieves target merchandise that is small, has a high dollar value, and can be easily resold.  Some of the methods they use are box stuffing (placing high value items inside lower valued item box), barcode switching (placing less expensive UPC’s on high priced items), double shopping (purchasing a high dollar item then exiting and re-entering, selecting the same item and exiting a different door showing the original receipt as proof of purchase if questioned), refund fraud, or simply attempting to walk out of the store with the unpaid for merchandise unnoticed.

    Preventing External Theft

    One of the best ways to deter external theft is providing superior customer service and having departments fully staffed.  Most thieves don’t want to interact with store associates in any way, so offering them assistance will make many decide against it.  Some retailers lock up high theft merchandise and will have an associate unlock and bring the items to the register for a customer when they are ready to purchase.  This can hinder customer service objectives in some ways but is a strong control in preventing theft.  EAS (Electronic Article Surveillance) is also widely used in the retail industry.  This is a method of affixing tags or electronic devices to items which will sound an alarm if taken out of the store before being removed or deactivated at the register by a cashier.

    Check Out: Physical Security Program, Know the Process

    External theft will always be a problem but the goal is to identify where your losses are occurring and to determine ways to prevent further losses.  This could be by apprehending the suspects causing the loss, limiting quantities on the shelf, using EAS tags, dedicated surveillance on specific items, or increasing awareness in the store of high theft items.

     

    Shoplifting Methods

    • Working in groups in order to distract your employees while one person steals.
    • Waiting around for shift changes so that there are more distractions.
    • Putting merchandise into a purse or handbag and paying only for that item.
    • Tucking stolen goods into their jackets, pants, purses, or, as disgusting as it is, their child’s stroller or carrier.
    • Returning merchandise that was not purchased in your store.
    • Switching labels. I.E. Putting a.99 cents label for a candy bar on a $100 dollar item instead. (Yes, this is still considered shoplifting!)
    Check Out: Comprehensive Loss Prevention – Don’t just be reactive

    Here are a few steps that retailers can take to curb shoplifting in their stores.

    1) Greet Customers

    Acknowledging customers when they enter the store is much more than \good customer service. Sure, greeting customers makes them feel welcome, but it also tells potential shoplifters that staff can see them. That verbal and visual acknowledgement can sometimes be enough to scare potential shoplifters into rethinking their actions.

    2) Adequate Staffing

    As we mentioned earlier, one of the easiest ways for shoplifters to get away with stealing is when other customers or duties distract store staff. One of the most effective ways to prevent shoplifting is to make sure there are enough employees on the floor and that staff are spread out across departments or areas. Large stores often assign specific floor sections to employees so that they’re responsible for greeting and assisting all customers that enter that specific area.

    3) Store Layout

    The layout of a store can affect how easy it may be for shoplifters to succeed. Some things to keep in mind include:

    • Consider putting highly desirable items in one area, assign staff to closely watch the aisle or area, and design the area in a way so there’s only one entry/exit point.
    • Install mirrors in blind spots.
    • Hang anti-theft signage to deter shoplifting in unattended corners.
    • Keep store windows clear to aid visibility.
    • Place the checkout counter near the entrance to the store to require customers to pass by before leaving.

    4) Limit Changing Room Items

    In order to take account of which items enter and exit clothing changing rooms, implement a store policy that limits the number of items a customer can take inside the room at a time. Have staff count out the number of items and hang or fold them so that each item is visible inside the dressing room. Only when a customer is finished with one item can they swap it with another they’d like to try on.

    When the customer is done, ask them to bring all of the items out of the change room and have staff count them quickly so that the same number of items are returned.

    5) Train Staff

    Perhaps the most important tip is to educate any staff that interact with customers on loss prevention. Training employees on shoplifter traits and providing a store policy on how to handle these customers is a retailer’s most effective tool. Simply having a staff member approach a suspicious customer and ask, “Can I help you?” or “Can I ring that up for you?” can deter shoplifting without sounding accusatory or rude.

    It’s also important to let staff know that if they see a customer steal something, they should alert a manager immediately and not try to take action on their own or chase down the shoplifter.

    Enhancing current approaches to combat ORC

    • Environment — “We prosecute” signage, hard to remove “Sold only in (retailer name)” stickers on items, small store layout changes, and ORC-aware changes to fitting room policies/staffing and visible technologies like Electronic Article Surveillance (EAS) and video surveillance.
    • Personnel — “Loss Prevention Greeters” at store entrance monitor the exit and flag suspect behavior to help reduce shoplifting, whether opportunistic, habitual or organized.
    • Antifraud measures — Stricter policies governing cash receipts can have a big impact: marking “cash plus store credit” purchase receipts with cash amount blocks the most lucrative form of return fraud. And “this store only” return policies at high-risk stores significantly impair gift-card consolidation and online monetization.
    • Detection — Expanding established EAS and video surveillance programs based on patterns of organized crime raises the risk of detection, making stores far less attractive targets. Utilizing video surveillance to monitor suspicious or repeating ORC criminals and alerting store associates if theft occurs provides another opportunity to raise the risk of detection.

     

    Deploying new technologies
    Extensions of EAS technologies specifically targeting ORC include:

    • Jammer detectors that respond to signals thieves use to overwhelm the electronic resonances on which EAS detectors depend.
    • Booster-bag detectors that detect aluminum-foil-lined containers carried into stores.
    • Selective remote alarms that redirect data from jammer detectors and booster-bag detectors to notify staff that a thief has entered the store.

    New applications of video surveillance help combat shoplifting of all kinds, and ORC in particular:

    • Linking jammer and booster-bag detectors to digital video surveillance helps stores capture pictures of potential thieves entering and leaving the store. When item-level information from RFID tags are integrated into loss prevention, stores can link video evidence of theft events to goods recovered from thieves at storefront or in the parking lot.
    • Advanced technologies extend video surveillance to include facial recognition, monitoring of “exception behaviors” typical of gang theft, and storewide surveillance tracking likely thieves.
    • Pervasive video: shelf-level cameras linked to advanced detectors can provide an end-to-end record of theft events, together with filtering out activities of legitimate shoppers.

     

    Organized retail defense
    The final step in fighting ORC will come when retailers organize, turning the gangs’ most powerful method against them, with strategies including:

    • Predictive analytics — integrating information from EAS, jammer, booster-bag, and RFID detectors, video surveillance, human intelligence and more can identify theft patterns within and across stores, for efficient deterrent deployments, countermeasures and enforcement.
    • Real-time adaptive analytics — monitoring point-of-sale data, store traffic, and real-time inventory lift from both sales and theft will help stores align associate staffing to shopper behavior patterns to maximize sales and minimize theft.
    • Collaboration and enforcement — the retail industry, together with government and law-enforcement agencies, are beginning to organize against the ORC problem and extend through public-private partnerships all the way to national legislative initiatives and cross-border extradition agreements.

    Organized Retail Crime is emerging as a significant threat to retailers worldwide. Its growing incidence and sophistication, the high costs per incident, and advanced opportunities for monetization reveal a global problem requiring immediate, sustained attention.

  • Using Social Media in Investigations

    Using Social Media in Investigations

    As every moment of people’s lives—both inconsequential and monumental—have spread onto Facebook, Twitter, Instagram, LinkedIn, SnapChat, TikTok, and other platforms, a record has been created of comings and goings, personal opinions and piques, that can be a trove during investigations.

    First off, What is a Social Media Investigation?

    A social media investigation looks into the social media posts, status updates, photos, and conversations of an individual. You might require a social media investigation for a court case, custody battle, or as part of a background investigation. This can be used as evidence in court cases to support alibis and provide supplementary evidence, for risk assessment, and for active monitoring.

    What you’re searching for will depend on the investigation.

    For the average court case, social media can be searched to establish a foundation of character, verify, or disqualify an alibi, and find supporting evidence. This includes looking at the location tags for Facebook, Twitter, and Instagram posts, verifying that the posts were original, and identifying what other individuals associated with the case are involved. For some investigations, like for crimes against minors, alerts and searches can be set up for specific search terms, and it can be discovered what type and age of individuals the person is interacting with.

    For a domestic investigation, you might search for photos of your partner that support your suspicions of infidelity, or check the location data on posts on Twitter to verify he or she is where they say they are. Internet messaging, Facebook messages, and Twitter direct messages can also indicate whether or not the individual is staying faithful.

    A custody case can involve looking at photos posted across platforms to identify who the individual is associating with. Twitter posts could indicate whether the individual is suited and trustworthy for retaining custody, and a Tumblr investigation can reveal the individual’s priorities, thoughts, and intentions.

    Any case involving possible drug use can mean searching for photographs and posts across platforms that would indicate potential drug use, as well as a search for Tumblr posts of images or comments, reblogs, that support drug use. This type of investigation includes searching and setting up alerts for specific terms relating to drug use. In some cases, a sting can be set up to see if, through internet messaging services, the individual is dealing or affiliated with a dealer.

    Check Out: 5 Myths about Employee Theft

     

    When it comes to mining social media for potential evidence, content can broadly be divided into two categories:

    • Incriminating content that subjects inadvertently upload themselves: People are so used to sharing their activities on social media, that they’ll occasionally share something that incriminates them, or contradicts their legal claim, without thinking. For example, an insurance fraudster who claimed that a vehicle accident had left her severely debilitated was outed when investigators found photos of her snowboarding and scuba-diving on her social media accounts.
    • Incriminating content uploaded by third parties: Just because someone isn’t very active on social media—or their privacy settings don’t allow outsiders to see much on their accounts—doesn’t mean that you can’t use social media to find useful evidence. In the case of a major car crash, for instance, it’s very possible that a bystander uploaded footage of the accident to Twitter, Facebook, or YouTube. One great example is a 2015  case, during which a man claimed that he’d wrecked his $60,000 Corvette while driving on the Interstate. Unfortunately for him, investigators found YouTube footage of the sportscar being crashed into a barrier during a drag-racing event.

     

    So, now we have talked about WHAT a social media investigation consists of, let’s talk about if you SHOULD or CAN do a social media investigation.

    Social media postings may also constitute evidence or provide leads to potential witnesses. For example, many of the far-right agitators behind the 2017 Unite the Right rally in Charlottesville, Virginia openly coordinated their mayhem online. A number of their posts appear in the complaint against them and will likely be entered into evidence at trial.

    Social Media Investigation Findings as Evidence

    Wall posts, status updates, photos, check-ins and tweets have all been used as evidence in workplace investigations. In the Zimmerman v. Weis Markets Inc. case, Zimmerman was an employee of a subcontractor of Weis Markets and was seeking damages for an injury that occurred at work. Zimmerman claimed that an accident seriously and permanently impaired his health.  Weis Markets reviewed the public portions of Zimmerman’s Facebook and MySpace pages, and felt that there might be some additional information to refute the damage claims in the private sections of his profile.

    On the public portions of his profile, the company found photos of Zimmerman engaging in some of his favorite activities after the accident took place at work. They knew the photos were from after the accident because his scar from the accident was visible in the pictures.

    The court decided that Zimmerman had to hand over his passwords and login information to the counsel for Weis Markets so that they could access the private sections of his Facebook and MySpace accounts. The opinion released by the court said:

    Zimmerman voluntarily posted all of the pictures and information on his Facebook and MySpace sites to share with other users of these social network sites, and he cannot now claim he possesses any reasonable expectation of privacy to prevent Weis Markets from access to such information.

    Below are a few key cases involving social media as evidence.

    • State v. Eleck
    • Rene v. State
    • Bland v. Roberts
    • Thompson v. Autoliv Asp, Inc.
    • Richards v. Hertz
    • State v. Tienda
    • Tompkins v. Detroit Metropolitan Airport

     

    One of the biggest hurdles to social media becoming a staple in the courtroom has been provability. Most courts require metadata and MD5 hash values for evidentiary validation and to establish chain of custody, applying Rule 901(b)(4) of the U.S. Federal Rule of Evidence (see Lorraine v. Markel American Insurance Company or State v. Tienda).

    Metadata –

    Metadata can be a laundry list of items, including unified resource identifier, item type, parent item, thread id, recipients, created time, updated time, link, comments, and picture url, to name a few.

    MD5 Hash Value –

    MD5 hash value is a one-way cryptographic hash function that is used to verify data integrity. It is a 32 character hexadecimal string of numbers and letters that has a 1.7 undecillion (that’s 36 zeros) chance of being replicated . In layman terms, the chances of the MD5 hash being replicated are about the same as someone winning the powerball 32 times in a row.

    Courts have rejected simple printouts of social media posts, citing inadequate authentication (see State of Connecticut v. Eleck). As an extension of provability through MD5 hash values and metadata, we can also provide expert testimony to validate evidence.

     

    What Employers Need to Consider

    You won’t always be granted permission to obtain login information and passwords from an employee under investigation. Be aware of the Patterson v. Turner Construction Company to remind employers that their requests must be “made in the right kind of case, at the right stage of the case, and have the right scope.”

    Employers also have to be careful about how they access information posted on an employee’s social media profile. Attorneys and investigators cannot misrepresent who they are in order to get access to join their opposition’s private social media network. For example, you cannot create an account under an alias, “friend” the employee under investigation and then expect to use that information to support your case – the evidence won’t be admissible.

    Principle: an investigator is almost always prohibited from using misrepresentation or dissemblance to obtain information, and it is evident that this injunction applies to social media investigations. In New York, as in most states, conduct involving dishonesty, fraud, deceit, or misrepresentation is prohibited under NY Rules of Professional Conduct, Rule 8.4 (c). Further, it is axiomatic that lawyers may not violate the rights of third parties when obtaining evidence. Most jurisdictions have adopted ABA Model Rule 8.4(a), stating that an investigator’s unethical acts may be imputed to the attorney. Even in states that have not explicitly adopted it, there is “substantial case law that supports the proposition that the duty of an attorney. . . not to deceive extends beyond the courtroom.”

    Bar associations have also addressed the question of how investigators may contact people on social media. The New York City Bar Association says investigators may contact unrepresented parties without violating ethical rules provided that there are no overt misrepresentations. The San Diego County Bar Association takes a stricter view, requiring that even where contact or “friending” may be otherwise proper, an attorney should not make contact with an individual without disclosing that she is an attorney and the purpose of the contact. When investigating in different jurisdictions—and keeping in mind that most social media companies are headquartered in California—it is wise to adopt the more restrictive guidance.

    Advice for Using Social Media During a Fraud Investigation

    Of course, near-constant content creation has a major downside: because of the sheer amount of social media content out there, finding that crucial piece of evidence isn’t always easy. For this reason, social media investigation has become its own specialized field, and in order to use it effectively, you have to be systematic in your approach.

    With that in mind, here are five tactics to use when collecting social media content as evidence during a fraud investigation:

    • Consider all the platforms: When it comes to looking for online evidence, Facebook and Instagram tend to be the most useful platforms, but there are many others worth considering. In fact, there are around 200 widely-used social media sites at the moment, so if you’re limiting your investigation to the top two, or three, you could be missing out on crucial evidence. Just consider the December 2019 case, during which a claim of serious physical injury was proved false with posts of a 10-mile run and a 20-mile bike ride on the fitness-oriented social media platform Strava.
    • Use tools to find online profiles: A simple Google search remains a good way of finding a particular individual’s online profiles, but other excellent tools also exist. Search tools like Pipl, Peoplefinders, PeekYou, and Classmates can all be used to identify social media profiles. If you have an image and would like to see where it appears online, TinEye is another great tool.
    • Always obtain evidence ethically and legally: It’s important to stay on the right side of the law. While law enforcement might sometimes be able to create fake social media profiles to investigate suspects, law firms and fraud investigators don’t have that same freedom. And even API tools that were once very useful for collecting social media evidence are now creating severe preservation challenges thanks to privacy concerns. So, when collecting social media evidence, focus only on content that you can view and capture legally—and use a browser-based evidence tool to collect it.          
    • Consider someone’s social connections: While an individual being investigated might be clever enough to utilize strict social media privacy settings and refrain from posting incriminating content, they probably won’t be able to keep all their activities hidden. As mentioned earlier, a bystander might upload an incriminating video to YouTube. Similarly, someone’s friends, family, roommates, team mates, or colleagues might also post useful images and information. Because of this, it’s worth exploring the accounts of people in an individual’s social circle, as well as any pages belonging to an employer, association, sports team, etc.
    • Make sure evidence is defensible: Collecting incriminating evidence is only half the battle—legal teams also need to be able to convince other parties of the information’s authenticity. While taking a simple screenshot might seem like a quick and easy way of collecting evidence, it’s all too easy for the person under investigation (or their legal

    Five Tips for Effective Social Media Investigation

    1.  Google And Bing Are Your Friends

    Never underestimate the power of your favorite search engine. Many people don’t realize how much information is available about almost everyone via the internet. Simply searching your subjects name might uncover surprising results.

    Another easy search engine technique is reverse image search. Sometimes an image search reveals social media accounts, online dating profiles, employers, personal blogs, and a wealth of other resources. Use critical thinking when evaluating the results as some phishers, scammers, and catfishers steal people’s pictures to use to build false profiles.

    1. Look Your Subject Up On Social Media

    Social media offers hints to a subject’s location, lifestyle, and interests. According to Pew Research, 48% of social media users report finding each channels privacy settings difficult or confusing. As a result, many leave some or all of their information public. A public social media profile is one of the first visits for any investigator.

    Even when the subject uses privacy settings, there may still be publicly posted information on major channels like Facebook and Instagram. Facebook’s graph search may uncover unexpected gems as many people allow the public to see photographs they are tagged in. Insurance investigators, divorce attorneys, potential employers, and debt collectors have all uncovered valuable information and evidence of a subject’s lifestyle and character simply through casual, candid photographs posted on Facebook, Snapchat, or Instagram.

    Savvy investigators also look at less personal social media accounts such as Pinterest. Even though users are less likely to post telling, personal details, these channels can indicate location and interests.

    Check Out: External Theft – Shoplifting
    1. Look at Your Subject’s Friends’ Accounts

    Many people allow friends of their friends to see even private details. Also, sometimes friends with public profiles may comment on photographs, location check-ins, or status updates from friends with private accounts.

    A recent study uncovered that nearly 50% of all social media users accept friend requests from strangers. Be aware that many social networks forbid false profiles.

    1. Take Screenshots To Preserve The Evidence

    Since social media posts are ephemeral, your subject may remove embarrassing or incriminating content. Savvy investigators keep a record of these posts including a screenshot. Be sure to track important details about the posts you uncover and find a way to preserve and archive any valuable information.

    1. Try Social Listening Tools

    Social listening tools help businesses with marketing and customer service purposes. Some of these same social listening tools have investigative applications. It would be prohibitively time-consuming to constantly search Google, Bing, and each social network for new updates on your subject. However, you can automate some of this using social listening tools.

     

     

    As investigators, we spend a great deal of time on these platforms reviewing information posted by and about the subjects of our investigations. Modern social media platforms can be a tremendously useful resource. The reason for this is simple: a lot of us are active on social media these days—and we tend to share more than less. At the end of Q1 2020, Facebook reported 1.73 billion daily active users and 2.6 billion monthly active users, with around half of all social media site visits in the United States going to Facebook. Add Instagram’s 500-million daily active users—not to mention the 500 hours of video uploaded to YouTube every minute!—and you’re left with a lot of potential digital evidence.

  • Overview of the PEACE Method: investigative Interviews

    Overview of the PEACE Method: investigative Interviews

    The PEACE Method of investigative interviews is best suited for detailed employee investigations, and you need a strict understanding of the processes involved, so you can execute it properly. I am writing to provide you with a detailed overview of the PEACE Method, so you can decide if you are interested in trying it for your company. If you want to learn more, contact me and we can set up a consultation.

     

    1. The role of investigative interviewing

    eye metricsThe gathering of information from a well-prepared victim or witness interview will contribute significantly to any investigation. An effective interview of a suspect will commit them to an account of events that may include an admission or may provide information leading to further witnesses of benefit to an investigation. Conversely, failure to professionally undertake interviews can have adverse consequences in terms of failure to adhere to legislation, loss of critical material, lack of credibility and loss of confidence. For this reason our Investigators adopt the PEACE framework detailed below.

    1. Principles of investigative interviewing
    2. The aim of investigative interviewing is to obtain accurate and reliable accounts from
      victims, witnesses or suspects about matters under investigation.
      ii. Investigators must act fairly when questioning victims, witnesses or suspects.
      Vulnerable people must be treated with particular consideration at all times.
      iii. Investigative interviewing should be approached with an investigative mindset.
      Accounts obtained from the person who is being interviewed should always be tested
      against what the interviewer already knows or what can reasonably be established.
      iv. When conducting an interview, investigators are free to ask a wide range of questions
      in order to obtain material which may assist an investigation.
      v. Investigators should recognize the positive impact of fairly and considerably conducted interview
      vi. Investigators are not bound to accept the first answer given. Questioning is not unfair
      merely because it is persistent.
    3. The PEACE Interview Framework

    There are five phases to the PEACE framework:

    Planning and Preparation
    This includes what to consider when planning for an interview
    Engage and Explain
    This describes how to cope with the special features of getting an interview started and establishing the ground rules
    Account
    This deals with the central issue of obtaining the interviewee’s account, clarifying this and, where necessary, challenging it
    Closure
    This describes the considerations before closing an interview
    Evaluation
    This consists of asking questions about what was achieved during the interview and how it fits into the whole investigation. Evaluation also includes the development of an interviewer’s skill level, through assessment (self, peer and manager) and feedback

    P – Planning and Preparation

    Planning involves the thought processes in getting ready to interview; and Preparation involves getting the location, the environment and the administration ready. The planning process involves gathering information so as to allow the interviewer to remain in control of the interview, to ensure that it goes in the right direction and that sufficient time is available . The maxim – “Proper preparation prevents poor performance” or other colloquial versions are very relevant. In addition, the interviewer should understand the purpose of the interview, the previous background circumstances, and have a profile of the interviewee. Not every interview is well planned but the more significant the issue, the more likely time nay be invested in preparation. Preparation may involve simply defining the purpose of the interview but it can also involve the set up of the interview space. An assessment of available prior knowledge might also be carried out in advance in order to understand what information is required. Understanding what is required may go some way towards understanding how it can be obtained. The mechanics of the interview space may involve seating, logistics and venue, however they will also involve making any exhibits, if relevant, available for examination during questioning, Good interviewers are investigative whereas poor investigators are merely interviewers. Unless preparation takes place an interviewer may overlook important evidence or miss inconsistencies in the interview information. Unnecessary breaks may then be taken in order to ratify forthcoming information

    E – Engage and Explain

    The opening phase of an interview can be crucial to the interviewer’s success. If the interviewer can engage the interviewee for a few minutes, this can then “warm up” the interviewee and assist that person to engage with the interviewer in a relaxed relationship which may then be continued throughout the interview. Engaging the interviewee is sometimes described as the Rapport stage of the interview. Courtesy, politeness, and understanding cost nothing to the interviewer but can make all the difference between his/her success and failure as an interviewer. Successful interviewers may take time to find out what motivates the interviewees. Once these drivers are understood then it may be possible to take steps to use them. In addition, the formalities of the interview may need explanation. The tape recording, and other procedures, once understood, can help the interviewee to empathize with the interviewer. If this happens then the interviewer will have much greater success. The format of the interview may then be explained – in order to demystify the process and to give the interviewee the impression that he is not going to be tricked. This sense of security may later be challenged by an interviewer who wishes to ask supplementary questions, or to clarify an earlier account

    The interviewee may be asked to comment on matters which have not already been described in the interview or to repeat an earlier explanation in their own words. The interviewer is likely to use the interviewee’s words and repeat them back to him where he or she is checking for a correct interpretation Frequently interviewers will take a great deal of time and put themselves out in order to show consideration for the interviewee. Frequently the interviewee will be asked if he wants a drink or to use the toilet or how he or she wants to be addressed in the interview. Successful interviewers often ask whether there are any time restraints on the interviewee as these concerns may be used to increase the interviewee’s tension later on

    The Interviewer will set the scene by saying that the interview is very important and that everything the interviewee says is important. As a result they should not leave anything out, even if they believe it is of no relevance. The interviewee may even be given the impression that they will have to work hard because they have all the information. This creates the impression that there is something that the interviewee needs to say to the interviewer.

    At any stage of the interview, in order to ensure fairness, the interviewee may be encouraged to ask a question of the interviewer if there is something which they do not understand, if there is something they do not know or if they do not understand the interviewer

    It is unlikely that an interviewee will be encouraged to ask a question for clarification where there is more than one possible meaning for a question, or ask the interviewer to explain something which was inappropriate or leading or to say that they do not feel that it is appropriate for them to answer a question, or refuse to speculate or give their opinion as to hypothetical circumstances

    Once this engagement stage has passed, the witness will be asked to give his account. The interviewer may then ask questions to clarify the account or to interrupt where additional information is required

    The interviewer may also use the engagement stage as training for later in the interview. The interviewer will be establishing their control and getting the interviewee ready for the next stage of the interview. The interviewee will be encouraged to answer simpler questions (with yes or no answers) and the interviewer will be assessing the interviewee’s language and communication
    abilities

    A – Account

    At this stage an interviewer obtains the interviewee’s full account of events. The three main steps are:

    • obtaining the interviewee’s account of events
    • Expanding and clarifying that account
    • Challenging the interviewee’s account with information from other interviewees (if helpful)

    Good questioning and listening skills are required to produce an accurate and reliable account. During the Account process an interviewee may change from being cooperative to un-cooperative so it is important for the interviewer to be fully alert during the interview. The interviewer should be able to detect changes in the interviewee’s language and behavior. For cooperative interviewees such as victims and witnesses, the interviewer may use additional techniques of free recall to begin with and perhaps move on to cognitive interviewing for more advanced interviews. For uncooperative interviewees the interviewer will normally rely on conversation management as a technique. Interviewers are recommended to ask all their relevant questions – even in the face of a ‘No comment’ response. This is so as not to leave any gaps that the interviewee (or their organization) might later seek to fill in as part of a defense. After allowing the interviewee to begin to give their account of the facts, the interviewee may use questioning techniques such as summarizing, empathizing, repeating questions, leading questions, accusing questions, varying the questions to ask about the same circumstances, varying the interviewee’s previous responses to suggest that they have already said something or encouraging different ways or repeated attempts to recall the same or related facts

    The interviewer may need to clarify or challenge the interviewee’s account. This could be because the interviewer is unclear about something the interviewee has said, or because the information is inconsistent with other known information. This “Challenge Phase” of the Account may include challenges to inconsistencies in the Account or it may also include pre-planned challenges. Information may be held back in order to test what the person might say in the absence of certain key facts.

     

    C – Closure

    The Closure stage should ensure there is an understanding on the part of the interviewee as to what has happened during the interview and ensure that the interviewee is certain that the information they have given is accurate in all material respects or that any grey areas have been sufficiently highlighted. The interviewer should confirm that all aspects of the Account have been covered, allowing the interviewee to give any additional information which they think may be relevant and are willing to provide and allow them to be able to give further information in future. It is important to explain what will happen in the next phase of the interview process

    A positive close to the interview may mean an interviewee is able to give any new and relevant information in the future, either through recall or as new information comes to light. The closure may also assist in facilitating future interviews with other interviewees.

    E – Evaluation

    This stage concludes the PEACE interview but not necessarily the interviewing process. The interviewer will, in this section of the interview, often suggest a short break for them to re-review their notes to see if the aims and objectives for the interview have been achieved. In addition, the interviewer will also review the investigation in the light of information obtained during the interview and may reflect upon how well he or she conducted the interview

     

    When conducting an investigative interview, you also need to be aware of the non-verbal indicators.

    Understanding the PEACE Method is an important part of an investigative interview, but know the Factors to consider in an investigative interview is equally important in being successful when using the PEACE Method.

     

    I have gone ahead and made a simple flyer for you, so you can share the PEACE method on your blog, to help your readers.

  • 5 Common Ways Employees Steal

    5 Common Ways Employees Steal

    Small-business owners aim to hire trustworthy workers, but companies must be aware that theft will occur. Understanding common ways employees steal requires that you look at the type of items thieves go after and the methods used to take them. Theft can have a significant impact on a small business and can even result in your business failing. Knowing the five most common ways employees steal can help you develop methods to combat the problem.

    5 Common Ways Employees Steal

    Cash

    Unethical practices by employees that result in financial losses for a business can manifest in various ways. One common method involves the misappropriation of funds during sales transactions. Employees may discreetly transfer money from cash registers into their pockets, exploiting their position at the point of sale. This covert activity can lead to a direct and immediate impact on the company’s revenue.

    Furthermore, another avenue for potential theft is the unauthorized access to open or unsecured safes, petty cash drawers, or cash boxes. Employees may exploit vulnerabilities in the security system, taking advantage of lax protocols to pilfer funds. This type of theft can occur gradually over time, making it challenging to detect until substantial losses have accumulated.

    In addition to physical theft, there’s a subtler form of financial misconduct that involves quoting customers inflated purchase amounts. Employees may intentionally communicate a price higher than the actual cost of an item during a transaction, pocketing the excess funds. This manipulation can go unnoticed in the hustle and bustle of daily operations, making it a deceptive yet effective method of embezzlement.

    Once an employee has successfully obtained cash through these illicit means, they may exit the business premises at the end of their shift without raising suspicion. This method allows them to evade immediate detection, making it imperative for businesses to implement robust internal controls and monitoring mechanisms.

    Merchandise

    The challenge of inventory loss or shrinkage stemming from theft poses a significant concern within the merchandise distribution process. This issue is pervasive and manifests at various stages, affecting the overall integrity of a business’s inventory management.

    One prevalent scenario unfolds on the sales floor, where employees, unfortunately, engage in deceptive practices. This may involve the discreet concealment of merchandise within apron pockets or strategically placing items behind others on shelves. The intention is often to retrieve these hidden items at the conclusion of their shifts, contributing to a decline in available inventory and potential financial losses for the business.

    Beyond the sales floor, the issue extends to the pre-public availability phase. Employees, seeking to exploit vulnerabilities in the system, may pilfer items directly from warehouse shelves or intercept newly arrived merchandise before it is officially scanned into the inventory software. This early-stage theft not only impacts inventory accuracy but also disrupts the seamless flow of merchandise from distribution to retail.

    In more audacious instances, employees have been known to resort to grander schemes, such as stealing entire shipping trucks. These acts involve the unauthorized acquisition of vehicles laden with merchandise meant for their employer’s business. The repercussions of such actions extend beyond inventory loss, encompassing operational disruptions, financial ramifications, and potential damage to the business’s reputation.

    Addressing this multifaceted challenge requires a comprehensive approach. Businesses must invest in robust security measures, both on the sales floor and within distribution channels, to deter potential theft. Implementing advanced surveillance systems, access controls, and stringent inventory tracking protocols can fortify defenses against deceptive practices.

    Check Out: Using Social Media for Investigations

    Supplies

    Certain employees engage in pilfering small items, like pens, staples, or scissors, incrementally over time, exhibiting a pattern of repeated theft. Alternatively, individuals may opt for a bolder approach by taking such items on the day they decide to quit, often before formally submitting their resignation. On the other end of the spectrum, more audacious theft involves the pilferage of pricier items, including furniture or equipment. This type of theft tends to occur during after-hours periods when employees work unsupervised overtime or gain unauthorized access to the business premises after it has closed for the day. Both forms of theft, whether gradual or more immediate, necessitate vigilant oversight and security measures to safeguard a company’s assets.

    Payroll

    Instances of employee misconduct may involve the falsification of records or the execution of actions leading to payment for work that was not performed. In some cases, employees may engage in deceptive practices, seeking reimbursement for travel or other expenses unrelated to work. This can include submitting reimbursement requests for personal meals disguised as business lunches.

    Another form of deceit involves the manipulation of time-related records. Employees may submit falsified time sheets, claiming hours they did not work or neglecting to deduct time taken for extra breaks. This misrepresentation of work hours can contribute to financial losses for the employer.

    Furthermore, theft can manifest in less tangible ways, such as time theft. Employees may divert work hours by engaging in personal phone calls, extended conversations with co-workers, or spending excessive time surfing the Internet instead of fulfilling work responsibilities. These actions not only compromise productivity but also lead to an overall decrease in the quality and quantity of work completed.

    Informationemployee-stealing

    Instances of deliberate information theft by employees pose a serious threat to the confidentiality and intellectual property of their employers. Motivated by personal gain or, at times, by a desire to benefit competitors, these individuals engage in activities that compromise sensitive company data. The purloined information spans various categories, encompassing customer lists, internal memos, and proprietary details related to products, services, or other critical facets of the business.

    This illicit activity often takes shape through modern communication channels, with employees utilizing email as a conduit for transmitting sensitive information externally. In some cases, individuals employ more traditional methods, such as printing out confidential documents, copying them onto portable storage devices like flash drives or cellphones, and physically carrying the information away from the business premises. The ease with which information can be transferred in our interconnected world underscores the need for robust security measures and vigilant oversight.

    In the digital realm, information theft via email requires businesses to implement stringent access controls and monitoring systems. Proactive measures should include educating employees on the ethical and legal implications of misusing company information, emphasizing the importance of maintaining data confidentiality.

    Additionally, the more tangible act of physically removing printed documents or electronic storage devices demands a comprehensive approach to security within the workplace. Access control systems, surveillance measures, and employee training on the responsible handling of company information all play crucial roles in mitigating the risk of information theft.

    Read: Tips to Identify Internal Theft

    Mitigating Common Ways Employees Steal: Proactive Measures

    Countering the five most prevalent avenues of employee theft requires a strategic approach. Several preventive measures can significantly reduce the impact of such incidents on your business. One effective strategy is to regularly reconcile physical inventory with shipment and sales records, ensuring accuracy and promptly identifying any discrepancies. Conducting comprehensive audits, including cash, payroll, and computer usage assessments, serves as another valuable tool to detect irregularities and address potential areas of vulnerability.

    To enhance security measures, consider implementing sophisticated systems such as time-tracking devices and surveillance cameras. These technologies can help monitor employee activity, providing an additional layer of protection against theft. Regularly reviewing the data collected by these systems enables proactive identification and response to any suspicious behavior.

    Employee training plays a crucial role in preventing theft. Educate your staff on recognizing common behavior patterns exhibited by potential thieves. This may include repeated requests for outside breaks, unsupervised overtime, or expressing a desire to be transferred to a stockroom or cashier position. By fostering awareness and vigilance among employees, you create a more secure and vigilant work environment.

    By adopting a multifaceted approach that combines regular audits, advanced security technologies, and employee education, businesses can significantly reduce the risk of employee theft and safeguard their assets.

     

  • 5 Non-Verbal Indicators in Interviews

    5 Non-Verbal Indicators in Interviews

    When setting up a room for conducting an investigation interview, there are a few basic rules the investigator should keep in mind. Aside from making the interviewee feel as comfortable as possible, the interview room should also facilitate clear communication, including non-verbal. This means that there should be no physical barriers between the interviewee and subject that might block the interviewer’s view of the subject.

    There are good reasons for this. Firstly, a physical barrier, such as a table, can act as a psychological barrier. In a situation in which open communication is sought, putting up barriers obviously goes against the goal.

    Another reason to keep furniture out of the way is to provide the investigators with a full-body view of the subject. This is important when assessing the subject’s body language, or non-verbal clues, when he or she is answering questions and providing detail about the incident in question.

    There have been many articles, books, even television shows, written about how to detect deception in investigation interviews, and there are as many theories as there are theorists. But there are a few fairly well researched and generally acknowledged non-verbal indicators in interviews that may indicate that a speaker is being deceitful. As long as the investigator is experienced enough to know that one sign does not make the subject a liar, these clues can be considered as part of an overall strategy to assess the credibility of the interviewee.

    5 Non-Verbal Indicators

    Illustrators

    hand manipulatorThese are hand motions a person makes when talking. They are normal and often used to illustrate a point. During times of low stress, a person uses illustrators at one rate, but when the stress level increases the subject’s use of illustrators may increase or decrease. A change in the use of illustrators, therefore, may be taken as a possible clue to deception.

    Manipulators

    Like illustrators, manipulators are hand motions. But rather than illustrating a point, they are used to displace nervousness. Examples of manipulators are playing with jewelry, picking lint off clothing or clasping and unclasping the hands.

    Full-Body Positioning

    A person who is engaged in a conversation and being honest will often lean toward the person they are talking to as the questions get more serious. A dishonest person might lean away from the interviewer, changing his or her posture completely.

    Check Out: Guidelines for Investigation Interviews

    Fleeing the Interview

    Similarly, a subject who is being dishonest might actually arrange his or her body in a position that suggests fleeing the room. While the person’s upper body is facing the interviewer, his or her legs may be facing the door, as if in an unconscious effort to leave.

    Covering the Mouth

    And while it seems too symbolic to be true, liars will sometimes place their fingers or hands over their mouths, as if to contain the lies before they escape, just as they did as children.

     

     

    The Basics of Body Language:

    Your primary goal when reading body language is to determine their comfort level in their current situation. There is a process of combining verbal cues and body language to determine this.

    Positive body language:

    • Moving or leaning closer to you
    • Relaxed, uncrossed limbs
    • Long periods of eye contact
    • Looking down and away out of shyness
    • Genuine Smiles

    Negative body language:

    • Moving or leaning away from you
    • Crossed arms or legs
    • Looking away to the side
    • Feet pointed away from you, or towards an exit
    • Rubbing/scratching their nose, eyes, or the back of their neck

    A single cue can be misleading so it’s essential to pay attention to multiple behavioral cues.

    Check Out: Effective Communication Skills: LISTENING

    Reading the Non-verbal Clues

    One thing to keep in mind is that non-verbal clues mean nothing in isolation. Some people exhibit these characteristics when they are not stressed, and some people are stressed all the time, whether they are being deceptive or not. So it’s important for investigators to treat clues as insight into where to probe further, rather than as proof of deception.

    Investigators should also be careful to assess the state of mind of a subject as part of assessing credibility. Subjects who are mentally unstable or who are inebriated or under the influence of drugs do not exhibit reliable clues. In fact, it’s not a good idea to interview these people at all.

  • PEACE Method of Investigative Interviews- Overview

    PEACE Method of Investigative Interviews- Overview

    A number of police forces through the world are using a model of investigative interviews that is more information gathering as compared to obtaining a confession from a suspect. As we in the safety world are concerned with gathering information following an accident I thought the technique might be of interest to readers. The method incorporated is what I’ve been teaching for years, but the use of the mnemonic PEACE brings all the ideas together nicely.

    P – Preparation and planning
    E – Engage and explain
    A – Account
    C – Closure
    E – Evaluate

    I’ve deleted some police/legal concepts from the web based material and added a few comments of my own.

    P – Preparation & Planning

    Crucial elements of good planning and preparation for an interview situation include:

    • Understanding the purpose of the interview;
    • Defining the aims and objectives of the interview;
    • Understanding and recognizing the points to prove or to clarify;
    • Assessing what evidence is available and from where it can be obtained;
    • Assessing what evidence is needed and how it can be obtained;
    • Preparing the mechanics of the interview (stationery, exhibits, location etc).

    E – Engage & Explain

    PEACE interviewsThese two terms also known as ‘Interview Preamble’ refers to early phases within the actual interview and is defined as follows:

    The essential element of engagement is an introduction appropriate to the circumstances of the interview. It is desirable that a proper relationship is formed between the interviewer and interviewee. This requires, for example, that the interviewer develops an awareness of, and is able to respond to, the welfare needs of the interviewee and any particular fears and expectations.

    The engage phase is followed by the explanation phase in which the investigator should outline the reasons for the interview and explain what kinds of action will be followed during the interview, particularly the routines.

    Check Out: Effective Communication Skills – NONVERBAL

    A – Account

    This term describes the stage in which the interviewee’s recollection of the events of interest is obtained. This stage is directed at obtaining the fullest possible account from the suspect. There are two accepted approaches of inducing recollection known as:

    • The Cognitive approach;
    • Conversation management.

    Different techniques for assisting recollection are associated with each method. With the cognitive method, the interviewee is asked to think back and mentally relive the event, initially with minimal interference from the interviewing officer. The interviewer does not interrupt, makes effective use of pauses and avoids leading questions. The interviewee is then encouraged to recall the event again using a different chronological order, or from a different perspective.

    When the conversation management method is used, the interviewee is asked first to say what happened and the interviewer then subdivides the account into a number of individual parts which are enquired about in turn for further details.

    The cognitive method provides the interviewee with greater control over the way the interview develops, whereas conversation management attributes more authority to the interviewer. This basic difference between the two approaches broadly defines when each is most appropriately used. For example, conversation management may be more appropriate for reluctant interviewees than the cognitive method.

    C – Closure

    To avoid immediate or future problems with the relationship formed between the interviewer and interviewee, investigators should ensure that, at the end of an interview:

    • interviewees are thanked before leaving;
    • everyone understands what has happened during the interview;
    • everyone understands what will happen in the future.

    Closure should also include elements such as giving the interviewee the opportunity to ask any questions. It is crucial that the interviewer always ensures that there is a planned closure, rather than an impromptu end, to the interview. The interviewer should summarize and check back as to what the witness has said.

    E – Evaluate

    After each interview is completed, the event and the material that came from it should be evaluated fully. The first consideration is whether the objectives of the interview were achieved. Decisions must then be made about whether any further interview is required or whether other inquiries need to be made. Evaluation can also help interviewers to improve their interviewing skills. To this end, they should take the opportunity to reflect on their personal performance and identify areas for future development or improvement.

     

    When conducting an investigative interview, you also need to be aware of the non-verbal indicators.

    Understanding the PEACE Method is an important part of an investigative interview, but know the Factors to consider in an investigative interview is equally important in being successful when using the PEACE Method.

  • Tips to Identify Internal Theft

    Tips to Identify Internal Theft

    Retail theft Chart
    Retail Loss Chart

    Whether it’s downloading and sharing company confidential information (a hot topic these days), manipulating expense reports, or stealing merchandise- employee theft and fraud is a serious issue for business owners. In fact, studies show that occupational fraud now results in the loss of five percent of an organization’s annual revenue.

    Here are some tips for preventing and managing employee theft or occupational fraud.

    1. Use Pre-Employment Background Checks Wisely

    One of the first steps to preventing fraudulent employee behavior is to make the right hiring decision. Basic pre-employment background checks are a good business practice for any employer, especially for those employees who will be handling cash, high-value merchandise, or have access to sensitive customer or financial data.

    This Guide to Pre-Employment Background Checks outlines the types of information that you can consult as part of a pre-employment check, and the laws that govern their use. I’s worth noting, that the law varies from state to state on whether a private employer can consider an applicant’s criminal history in making hiring decisions. Check with your local EEOC office for the laws in your area before going down this path.

    1. Check Candidate References

    I’m always surprised how very few employers reach out to check candidate references’ often assuming that a reference will never be anything but glowing. However, it’s good practice to check references’ particularly those of former employers or supervisors. If your candidate has a history of fraudulent behavior’ then you’ll want to know about it, before you hand them a job offer.

    1. Proactively Communicate Conduct Guidelines

    Every business needs an employee code of ethics and conduct – while it won’t prevent criminal or fraudulent behavior, the standards it outlines will set a clear benchmark for employee behavior and guidelines on how to do business based on a series of principles that promote ethical and lawful conduct.

    Once developed, the code of conduct should be documented and agreed to by all new employees (and existing employees if you haven’t put a code in place yet). You can find many templates for basic codes of conduct on the Internet, but as a rule of thumb you should include policies that cover the protection of company data, the avoidance of conflict of interests, and of course, obeying the law.

    Use employee orientation as an opportunity to go over the code of conduct and explain any areas that are unclear.

    Then, revisit the code each year and be sure to add any new considerations that may have materialized – for example, if you do business with certain suppliers, contractors, or government agencies who require you and your employers to agree to new codes of conduct as part of your business relationship.

    1. Don’t be Afraid to Audit

    Auditing always has a big brother feel, and in a small business environment this is especially true. However, conducting regular audits can help you detect theft and fraud. Audits can also be a significant deterrent to fraud or criminal activity because many perpetrators of workplace fraud seize opportunity where weak internal controls exist.

    As a rule of thumb, identify high risk areas for your business and audit for violations on a 6-12 month basis – these could include business expense reports, cash and sales reconciliation, vacation and sick day reports, violations of email/social media or Web-use policies, and so on.

     

    1. Recognize the Signs

    Studies show that perpetrators of workplace crime or fraud do so because they are either under pressure, feel under-appreciated, or perceive that management behavior is unethical or unfair, and rationalize their behavior based on the fact that they feel they are owed something or deserve it.

    With this in mind, some of the potential red flags to look out for include:

    • Not taking vacations – many violations are discovered while the perpetrator is on vacation
    • Being overly-protective or exclusive about their workspace
    • Prefers to be unsupervised by working after hours or taking work home
    • Financial records sometimes disappearing
    • Unexplained debt
    • Unexpected change in behavior
    Have you read: 5 Common ways employees steal
    1. Set the Right Management Tone

    One of the best techniques for preventing and combating employee theft or fraud is to create and communicate a business climate that shows that you take it seriously . Here are some simple steps you can take to keep your finger on the pulse:

    • Reconcile statements on regular basis for fraudulent activity
    • Hold regular one-on-one review meetings with employees
    • Offer to assist employees who are experiencing stress or difficult times
    • Encourage open-door policies giving employees the opportunity to speak freely and share their concerns about potential violations
    • Create strong internal controls
    • Require employees to take vacations
    • Treat unusual transactions with suspicion
    • Trust your instincts

    How have you encountered workplace theft or fraud? How did you deal with it or what preventative measures do you use? Leave a comment below.