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Retail Fraud

NCJ Number
80152
Date Published
Unknown
Length
11 pages
Annotation
This article describes retail procedures that can help reduce losses from bad checks, credit card misuse, and the passing of counterfeit money and presents New Jersey statutes covering such offenses.
Abstract
The guidelines provided are not only for the benefit of retail proprietors but also clerks who deal directly with persons attempting to perpetrate fraud. Losses from fraudulent checks are generally attributable to one or more of the following factors: failure to examine every check, failure to record certain information on checks, indiscriminate cashing of checks, fear that a sale will be lost unless checks are cashed without undue complication, and lack of identification of the person cashing the check. A sound check-cashing procedure should involve (1) the establishment of a central check-cashing station manned by the same person daily, (2) the establishment of a firm policy regarding the cashing of checks for amounts over the cost of merchandise or services, (3) assignment of the responsibility of cashing checks for amounts higher than the purchase to certain employees, and (4) requiring at least one form of corroborating identification. The risk of credit card losses can be reduced by routinely checking cancellation bulletins and making authorization calls under appropriate circumstances. Counterfeit bills can generally be spotted by checking the craftmanship of the portrait, the seal, the serial numbers, and the scrollwork, as well as the quality of the paper. Procedures to follow in case of fraud attempts are described. Six references are listed.