Retailer
Loss Prevention
Handbook
Property of the California Lottery
Security/Law Enforcement Division
California Lottery®
Table of Contents
Inside the front cover of this handbook is a laminated sheet. The front side lists all of the Retailer
Validation Code letters for winning Scratchers ® under $600.00. The opposite side has the
instructions for Reporting Lottery-Related Crimes during normal or after business hours.
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California Lottery Security/Law Enforcement Division District Offices…………… page 1
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Scratchers ® Delivery Invoice………………………………………………….……… page 2
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Scratchers ® Pack Information
9
$1.00 Scratchers ® Information (250 tickets per pack)……………………….… page 3
9
$2.00 Scratchers ® Information (200 tickets per pack)……………………….… page 4
9
$3.00 Scratchers ® Information (100 tickets per pack)………………….……… page 5
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Scratchers ® Identifiers………..….…………………………………………….………..page 6
Crime Prevention Information
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Draw Games……………...……………………………………………………………..page 7
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Fraudulent / Stolen Scratchers ®………………………………………………………... page 8
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Burglary Prevention……………………………………………………………………. page 9-10
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Robbery Prevention……………………………………………………………………..page 11-12
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Shoplifting & Internal Theft Prevention……………………………………………….. page 13-15
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Vandalism & Arson Prevention………………………………………………………... page 16
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Check, Credit Card & Refund Fraud…………………………………………………....page 17-18
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Lottery-Related Crimes…………………………………………………………………page 19
Forms
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Daily Scratchers ® Tracking………(Use to keep track of your Scratchers ® on sale at closing
time) Use for “in-counter” displays or “stackable” dispensers
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Vending Machine Inventory …………… (Use to keep track of packs placed into vending
machines)
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ITVM Closing Inventory…..( Use to keep track of Scratchers ® in the vending machine at closing
time)
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Suspect Description…………...(Use if a crime occurs, particularly a robbery – give it to
officers)
Loss Prevention Handbook
California Lottery ®
Lottery Headquarters
600 N. 10th Street
Sacramento, California 95814
Security/Law Enforcement Division District Offices
Northern California
Central Valley
750 W. Pinedale Avenue
Fresno, CA 93711
East Bay
2489 Industrial Pkwy. West
Hayward, CA 94545
Sacramento
598 N. 10th Street
Sacramento, CA 95814
San Francisco
820 Dubuque Avenue
S. San Francisco, CA 94080
Southern California
Rancho Cucamonga
9430 Lucas Ranch Road
Rancho Cucamonga, CA 91730
Riverside
1485 Spruce Street
Riverside, CA 92507
San Diego
5656 Ruffin Road
San Diego, CA 92123
Santa Ana
3400 W. Warner Avenue, Suite F
Santa Ana, CA 92704
Santa Fe Springs
9814 Norwalk Blvd. Suite 1
Santa Fe Springs, CA 90670
Van Nuys
16525 Sherman Way, #C-10
Van Nuys, CA 91406
Telephone Numbers
California Lottery……………………1- 800-LOTTERY (1-800-568-8379)
GTech Hotline……………………….1-800-666-6695
Problem Gambling Hotline…………..1-888-277-3115
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Loss Prevention Handbook
California Lottery ®
VERIFY YOUR ORDER
IN VOICE INFORMATION
CALIFORNIA LOTTERY
PAGE 1 OF 1
Invoice Number : 011017-50-0098 1
VERIFY
RETAILER
IDENTIFICATION
095814 THE CSL STORE
600 N. 10th STREET
SACRAMENTO, CA 95814
Retailer Copy
Date: 1/17/03
Chain ID: 095814
WHS: 119 SACRAMENTO
DSR: 021079 JIM WOOD
TRM 033
DAY 4 STP 033
ORDER DETAIL
PACK
COST
376.00
376.00
282.00
376.00
235.00
GAME
299 DESERT GOLD $2
302 SUPER 7’S
$2
306 100 GRAND $3
308 TRIPLE LUCK $2
310 THE BIG SPIN $1
VERIFY #
OF PACKS
VERIFY
PACK #’s
SUBTOTAL PACKS ON PAGE
SUBTOTAL AMOUNT OF PAGE
TOTAL PACKS SHIPPED
TOTAL AMOUNT OF ORDER
# OF
PACKS AMOUNT
1
376.00
1
376.00
1
282.00
1
376.00
2
470.00
Game Numbers,
Game Names &
Price Per Ticket
6
1880.00
6
1880.00
INVENTORY SHIPPED
299-231976
310-263016
302-261677
310-263317
306-247837
308-190012
Message:
INDIVIDUAL PACKS IN THIS DELIVERY ARE SWEPT:
1) WHEN 80% OF LOW-TIER PRIZES ARE VALIDATED OR
2) 50 DAYS AFTER YOU ACTIVATE THE PACK OR
3) 170 DAYS FROM THE DATE OF CONFIRMATION OF
DELIVERY – IF NOT ACTIVATED IN THAT PERIOD.
Special
Messages
INVOICE NUMBER
011017-50-00981
||||
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CONFIRM YOUR ORDER UPON DELIVERY
If your order is incorrect, contact your DSR
or call
1 -800-LOTTERY (1-800-568-8379)
4
Loss Prevention Handbook
California Lottery ®
$1.00 SCRATCHERS® PACKS
250 Tickets - Numbered 000 to 249
If tickets in the pack have become separated, verify that none of the tickets have been removed.
5
Loss Prevention Handbook
California Lottery ®
$2.00 SCRATCHERS® PACKS
200 Tickets - Numbered 000 to 199
Back of Ticket
Front of Ticket
Pack Ends With
Ticket #199
If tickets in the pack have become separated, verify that none of the tickets have been removed.
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Loss Prevention Handbook
California Lottery ®
$3.00 SCRATCHERS® PACKS
100 Tickets - Numbered 000 to 099
Front of Ticket
Pack Starts With
Ticket #000
Pack Ends With
Ticket #099
If tickets in the pack have become separated, verify that none of the tickets have been removed.
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Loss Prevention Handbook
California Lottery ®
SCRATCHERS ® IDENTIFIERS
FRONT OF TICKET
Benday
Lines
(One Color)
Pack
Number
Three
Validation
Code Letters
(W,Z,B)
Locations
and Letters
Vary Per
Ticket
UPC Bar
Code
Must be
18 Years Old
to Play
Validation
Bar Code
8
Loss Prevention Handbook
California Lottery ®
Security/Law
Enforcement Division
Draw Games
Fraudulent / Stolen Scratchers®
Burglary Prevention
Robbery Prevention
Shoplifting & Internal Theft Prevention
Vandalism & Arson Prevention
Check, Credit Card & Refund Fraud
Lottery-Related Crimes
Loss Prevention Handbook
California Lottery ®
Security/Law
Enforcement Division
Draw Games
The California Lottery® currently has five draw games. They include Super LOTTO PLUS®, Fantasy 5,
DAILY DERBY®, DAILY 3 and HOT SPOT®. Draw game tickets may be purchased between 6:00 AM
- 1:15 AM the next day. Super LOTTO PLUS® draws are conducted every Wednesday and Saturday. The
DAILY DERBY®, DAILY 3 and Fantasy 5 draws are conducted daily. HOT SPOT® draws are conducted
daily, with a new game every five minutes from 6:05 AM – 1:00 AM the next day. Draw game tickets
purchased between 1:05 AM – 1:15 AM will be for draws after 6:00 AM.
SIGNED ON Slips / Sign Off Terminal
Retailers should retain all Lottery terminal SIGNED ON slips for at least fourteen (14) days. The
SIGNED ON slip is needed by the Lottery’s Security/Law Enforcement Division to authenticate any Super
LOTTO PLUS® ticket sold at your place of business that matches the six numbers drawn. The SIGNED
ON slip may also be needed to authenticate other large high-tier prizes.
The Lottery terminal should be signed off whenever the Lottery terminal is left unattended or at the close
of business. Any person accessing a Lottery terminal that is NOT signed off while unattended, or after your
business is closed, could obtain a vast number of stolen draw game tickets.
ADVANCE PLAY®
ADVANCE PLAY® allows players to purchase draw game tickets for more than one draw. Every draw
game ticket identifies the total value of the ticket and how many draws were purchased. The Lottery
terminal screen will advise you of any HOT SPOT® purchase valued at $50 or more before printing the
ticket. Retailers should always VERIFY the VALUE of a draw game ticket BEFORE releasing it to the
customer. By verifying the value of a draw game ticket you will be assured your customers have paid the
proper price for their draw game ticket. Don’t assume the customer is paying the proper price for a draw
game ticket. The Lottery does not reimburse retailers for stolen draw game tickets.
Example: A customer gives a cashier $1.00 and a playslip marked for 100 draws (a $100 value) to purchase
a Hot Spot® ticket. The cashier prints the Hot Spot® ticket and hands it to the customer
who then leaves the store. The cashier did not check the Lottery terminal screen or ticket to
verify the value of the Hot Spot® ticket. The customer left the retail location with the $100
Hot Spot® ticket resulting in a net loss of $99 to the retailer. The cashier should have
verified the ticket's value was $100, and not assume it was for $1.00.
Security Information
Do an “Inquiry” report prior to paying any apparent winning ticket. This will let you know if it is a winning
ticket and the proper prize amount. Retailers can pay prizes up to $599 per line on a draw ticket. It will also
let you know if the ticket had been previously paid or if it is not a winner. The ticket will not validate if it is
fraudulent. Destroy all redeemed winning tickets by mutilating, tearing, shredding, or marking them as
“paid” to prevent them from being recycled for duplicate payment.
Loss Prevention Handbook
California Lottery ®
Security/Law
Enforcement Division
Validating Lottery Tickets
It is imperative that California Lottery retailers validate all Lottery tickets BEFORE paying a prize to a
customer. Retailers are authorized to redeem all winning Lottery tickets for prizes under $600. When a
Lottery ticket is validated, the terminal will produce a validation slip verifying the prize amount to be paid or
a validation slip with other relevant information. The information will provide the retailer with the current
status of the Lottery ticket. The Lottery will not reimburse the retailer for any money paid to a customer for
a Lottery ticket that has not been authorized. Scratchers® may not validate to authorize payment for any of
the following reasons:
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The retailer who sold the ticket has not activated the Scratchers® pack for sale.
The ticket has been previously paid at your store or by another retailer.
The ticket is not a winner.
The ticket has been altered and is fraudulent.
The ticket has been reported stolen.
Fraudulent / Stolen Scratchers®
Any Scratchers® that have been altered to represent winning tickets will not be validated by the Lottery
terminal when presented for prize payment. Non-winning Scratchers® can be altered to represent winning
tickets by cutting out and replacing the play spots and/or the play captions from other non-winning
Scratchers® and pasting them onto the altered Scratchers®. Suspects have been known to replace the entire
play area of an ALREADY PAID winning ticket to a non-winning ticket. This is known as a “cut and
paste” alteration. (See Scratchers® Identifiers on page 6.) Winning Scratchers® that have been “flagged” as
stolen will NOT validate for a prize when scanned. Validate ALL Scratchers® BEFORE making any prize
payments.
Novelty / Joke Tickets - Scams
Official California Lottery Scratchers® have the words California Lottery ® printed on the FRONT and
BACK. Novelty-type tickets are NOT printed by the California Lottery®. They’re sold at novelty stores
(not California Lottery retailers), and are used as a joke or gag with a bogus prize, usually for $10,000.
Occasionally, suspects have taken the back of an official Scratchers® and pasted it to the back of a novelty
ticket. They then try to sell the altered Scratchers® to an unsuspecting retailer or private citizen for a
reduced prize (of $1 ,000-$2,000). DON’T buy these tickets.
Security Information
Do an “Inquiry” report prior to validating and cashing an apparent winning Scratchers®. The inquiry report
will advise you if it is a winning ticket and the amount of the prize. It will also advise you if the
Scratchers® has been previously paid or if it is not a winner. Payment will not be authorized if the ticket is
fraudulent, stolen, or lost. Destroy all redeemed winning tickets by mutilating, tearing, shredding, or
marking them as “paid” to prevent them from being recycled for a duplicate payment.
Loss Prevention Handbook
California Lottery ®
Security/Law
Enforcement Division
Business Security
If you own or operate a business, make sure it is a safe and secure facility. Your customers want
to feel safe when they visit, and they are likely to return if their visit is positive. Burglaries, for the
most part, occur after your business has closed for the evening and before you open in the
morning. There are several things you can do to prevent or reduce the likelihood of being
burglarized.
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Locate checkout counters near the front of the store, clearly visible from the outside so those
employees can better watch activities.
Clearly mark public paths.
Make private areas harder for non-employees to access (particularly offices).
Prevent easy access to the roof or fire escape from the ground. Trim trees adjacent to the
building. Secure roof access and fire escape ladders with locking covers.
Do not cover up windows with advertising or display material.
Maintain clear visibility to the street, sidewalk, parking areas, and passing vehicles.
Use interior shelving and displays no higher than five feet, and lower in front of windows.
Fully illuminate the exterior of the building and grounds at night.
Loading areas should not have hiding places for people and/or merchandise.
Consider installing an alarm system.
Place entrances under visual surveillance.
Maintaining your property
This is an important part of your over-all security. A run-down business can attract criminals.
• Keep buildings and walks clean and repaired.
• Maintain parking areas to a high standard without potholes or trash.
• Remove faded posters, broken signs and other displays that are no longer useful.
• Keep plants and all landscaping in good condition.
Consider the “nuts and bolts” of security
The following are suggestions to provide a burglar-resistant environment for you and your
employees:
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Loss Prevention Handbook
California Lottery ®
•
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Utilize deadbolt locks with a minimum 1-inch throw bolt containing a hardened, saw resistant
steel insert on all exterior doors. If you choose double cylinder deadbolts, check with your
local building inspector or fire department to see if these locks are permitted.
Pin the hinges on any exterior doors that swing out. Simply remove the center screw from
each side of the hinge and insert a metal pin or headless screw on one side. This will prevent
the door from being removed.
Replace hollow-core doors with solid-core doors. Remove weak door frames or reinforce them
with steel or concrete.
Protect glass in doors with mesh or a polycarbonate sheet.
Consider adding clear polycarbonate sheets to secure windows. If this is too expensive,
consider roll down covers, grates or bars. Remember to check with your local building
inspector or fire department about these additions.
If you are considering purchasing an alarm system, contact several reputable companies and
get a full assessment of your needs. Consider adding the following features:
• Panic buttons in case of a robbery.
• Fire/smoke detectors.
• A monitored system that contacts law enforcement if it is activated.
Burglary Prevention
Your best protection against a burglar is visibility: well- lit open spaces, low counters and large
uncluttered display windows. Put your cash register up front so that the burglar’s activity will be
visible from outside. When closing the business, empty the cash drawers and leave them open so a
burglar won’t be tempted to break them open. Anchor safes in concrete.
Additionally, you should:
• Contact your local law enforcement agency’s crime prevention unit for a free security survey
of your business, or you can contact the Lottery Agent in your district for assistance.
• Request additional information on Business Watch and Operation Identification.
• Keep a complete, up-to-date inventory of your merchandise and property (by serial number if
available): office machinery, personal belongings, etc. Keep a copy in a safety deposit box at
a location away from your business site.
• Keep accurate records of your unopened packs of Scratchers®, and of those on display for sale.
You can use the Lottery’s Daily Scratchers® Tracking form to keep track of the tickets on
display for sale. Remember, the most important information needed to report stolen
Scratchers® are the game number, pack number and ticket number range (for example, the
stolen Scratchers® ranged from number 074 to 249).
If you suspect your business has been burglarized:
• Call 9-1-1 and make a police or sheriff's crime report (required for reimbursement of any
stolen Scratchers®.
• Don’t go inside – the burglar might still be inside.
• Don’t open for business – your employees or customers might unknowingly destroy or alter
valuable evidence.
• Call the Lottery Security/Law Enforcement Division at 1-800-LOTTERY (1-800-568-8379)
to report stolen Scratchers®.
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Loss Prevention Handbook
California Lottery ®
Security/Law
Enforcement Division
Robbery
Robbery is a crime that can be a frightening experience and is accomplished by means of force or
fear. In protecting your business from a robbery, it is important to take preventive measures and
make it obvious that those measures have been taken.
How to discourage a robbery
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11
Avoid having employees working alone. If needed, turn on a hidden radio or TV so robbers
will think more than one person is in the store.
Avoid placing signs or displays near windows that block visibility from the street.
Make sure your cash register is clearly visible to passers-by. Arrange the counter so that the
customer or robber is visible from the street.
Display signs at entrances and exits indicating that safes require secondary keys not in the
possession of employees.
Advertise your security alarm system with signs in visible locations. Make sure your
employees know how to operate a panic button if one is included with your alarm system.
If your business runs an exceptionally high robbery risk, you might want to invest in a
bulletproof cashier screen or other preventive measures equally as effective at a lower cost.
Develop a mutual aid system among stores on your block. Agree to keep an eye on each
other’s buildings and watch for any suspicious activities. Install “buddy buzzer” alarms so
you can signal your neighbor if you are being robbed.
Record the serial number of the bottom bill in each bin of the cash drawer, and instruct
employees not to use these bills in making change.
Place colored tape markers at exits. Mark at interval heights of 5 feet 6 inches, and at 6 feet.
NEVER count your cash receipts in your office while the office door is opened to the public,
or closed but unlocked! Require employees to notify you of any visitors (customers or sales
personnel) before opening the office door during a money count. It is much better for you to
meet them at the front counter than have them casually enter your office.
Maintain clear visibility to the street, sidewalk, parking areas, and passing vehicles.
Fully illuminate the exterior of the building and grounds at night.
Place entrances under visual surveillance.
Loss Prevention Handbook
California Lottery ®
Stolen Property and Lottery Scratchers®
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•
Keep a complete, up-to-date inventory of your merchandise and property (by serial number if
available): office machinery, personal belongings, etc. Keep a copy in a safety deposit box at a
location away from your business site.
Keep accurate records of your unopened packs of Scratchers® and of those on display for sale.
You can use the Lottery’s Daily Scratchers® Tracking form to keep track of the tickets on
display for sale. Remember, the most important information needed to report stolen
Scratchers® are the game number, pack number and ticket number range (for example, the
stolen tickets ranged from number 074 to 249).
If a robbery occurs
What should you do if a robber demands goods or money? Give the robber what they want. Never
refuse the robber. Consider your personal safety first and foremost!
If you have a silent alarm and can reach it unnoticed, use it. Otherwise, wait until the robber
leaves. (Use the alarm with care. Excessive false alarms can cause problems for law enforcement
and you.)
If possible, signal other employees - have a prearranged signal for such emergencies. Again, if the
robber might see you, WAIT. Many robbers are just as nervous as you are.
The MOST important thing to do if you’re robbed is to “OBSERVE”. The description of the
suspect you give to law enforcement might be the only information they have to go on in their
investigation.
After a robbery
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12
Call 9-1-1 and make a police or sheriff's crime report (required for reimbursement of any
stolen Scratchers®
Write down everything that you can remember about the robber and crime itself: the robber’s
physical description (including tattoos, accent, scars or anything unusual), clothing, words
used, mannerism, weapon, vehicle description, and direction of travel.
The Lottery has included a “Suspect Description ” form for your use if needed.
Keep everyone away from the crime scene to prevent them from contaminating any evidence
(surfaces or objects the robber might have touched).
Cooperate fully with law enforcement and prosecutors. Your help is crucial.
Call the Lottery Security/Law Enforcement Division at 1-800-LOTTERY (1-800-568-8379)
to report stolen Scratchers®.
Loss Prevention Handbook
California Lottery ®
Security/Law
Enforcement Division
Put a stop to shoplifting!
Shoplifters assume they won’t get caught. Your strategy is to prove them wrong. The following
tips require thought and ingenuity, but cost very little.
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Alert employees are your best defense. Establish procedures for them to follow if they suspect
shoplifting. Make sure they are familiar with shoplifting laws.
Make sure you can see everything that goes on in your store. Keep counters low, no more than
waist high.
Arrange counters and tables so there is no direct route to exit. Place expensive items in the
center of the store away from exits.
Arrange displays so that missing items are easily noticed. Place small items in neat rows or in
clearly defined patterns.
Attach inventory alarm tags to expensive merchandise.
Reverse alternate hangers of hanging garments to prevent “grab and run”.
Mount mirrors in corners so there are no blind spots.
Post a notice that shoplifters will be prosecuted.
Maintain clear visibility to the street, sidewalk, parking areas and passing vehicles.
Consider installing a security video surveillance system. Maintain a monitor at or near the
front counter that can be viewed by staff.
Place entrances/exits under visual surveillance.
What shoplifters use
Shoplifters use the following to conceal items:
• Bulky clothing: coats, pants, and maternity outfits.
• Packages, bags, backpacks, and purses are hiding places. Sometimes they have false bottoms.
• Special props include hollowed-out books, fake casts, umbrellas, secret pockets, belts, or
hooks under their coats.
• Folded newspapers or magazines to hide small or flat items.
What to look for
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13
Be aware of the customer’s hands – and their pockets, purses and handkerchiefs.
Notice open packages, purses, shopping bags and backpacks.
Watch groups of people, especially if a person tries to distract you.
Loss Prevention Handbook
California Lottery ®
Employees are not exempt
Some experts believe businesses lose more to employee theft than to burglary, robbery, and
shoplifting combined. Examine your management practices. Make your employees feel that they
have a stake in your business, then they won’t be tempted to steal from it.
Embezzlement and pilferage
Some employees only take a few items, such as office supplies, or use company equipment for
personal use, but embezzlement and pilferage can get bigger and bigger. Cashiers may use “short
ring-ups” – that is ringing up a lower price on the sales register to cover money taken from the till.
They might also overcharge customers and pocket the difference or undercharge other employees
and friends. Embezzlement can go from simple overloading of expense accounts to payments
made to non-existent companies.
Watch for the following:
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Records are rewritten so they’ll look neater.
Stock shortages increase in frequency or size.
Employees refuse vacations or promotions.
Business patterns change when a certain employee is absent.
Customers complain about errors in monthly statements.
Collections decline.
Employees seem sensitive to routine questions about procedures.
Excuses are made for continually not following procedures.
Maintain strict inventory control
The best defense is frequent and thorough INVENTORY CONTROL. Limit employee access to
stock and inventory needs. Periodically check outside trash bins/dumpsters, nooks and crannies.
Conduct unexpected checks so dishonest employees know they run the risk of being caught by
surprise.
There are many ways for dishonest employees to cheat their employers:
• Keep complete and accurate up to date records of your unopened packs of Scratchers® and of
those on display for sale. You can use the Lottery’s Daily Scratchers® Tracking form to keep
track of the tickets on display for sale. Remember, the most important information needed to
report stolen Scratchers® tickets are the game number, pack number and ticket number range
(for example, the stolen Scratchers® ranged from number 074 to 249).
• An employee often “accidentally” damages boxes and cans so they can buy them at a reduced
rate.
• An employee might place pilfered items in the outside trash bins/dumpsters during working
hours and retrieve them after work.
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Loss Prevention Handbook
California Lottery ®
· An employee may retain a customer’s discarded sales receipt and then use it later to show that
stolen goods were “paid for”.
Good business management
Keep a complete, up-to-date inventory of your merchandise and personal property (by serial
number, if available): office machinery, personal belongings, etc. Keep a copy in a safety deposit
box at a location away from your business site.
Employees should be discouraged from playing Lottery games while working. Any purchase
made by an employee should be from another clerk or cashier, including Lottery purchases.
Require job applicants to fill out a detailed application. Contact all references and former
employers.
Set the example. The boss who takes merchandise and office supplies without paying only
encourages employees to do the same. Employees who are treated fairly are less likely to steal.
Get to know your employees. Ask for their suggestions and seriously consider them. Involve
employees in crime prevention practices.
15
Loss Prevention Handbook
Security/Law
Enforcement Division
Vandalism and arson can have devastating financial and emotional effects on a business. Owners
and employees need to be on alert. Most vandalism, including graffiti and arson attacks, occur at
night and on weekends when businesses are vacant. Run-down businesses can attract criminals.
What you can do
Many of the same precautions taken to discourage burglars may also discourage arsonists and
vandals. By taking a few preventive steps, you can help curb these crimes against your business.
Improve general security
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Train employees to secure all doors, windows and skylights – especially at entrances.
Install and use an alarm system. Make sure all employees know how to activate the system.
Don’t allow landscaping to provide camouflage or hiding places.
Maintain clear visibility to the street, sidewalk, parking areas and passing vehicles.
Train employees to be watchful of strangers and to immediately report suspicious actions.
Fully illuminate the exterior of your building, parking lot and grounds at night.
Ask your business neighbors to keep watch over your business while you are away.
Vandalism prevention
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Schedule custodial crews at night.
Provide incentives for reporting vandalism and any information to catch suspects.
Always report acts of vandalism to your law enforcement agency immediately.
The sooner you repair any vandalism, the less chance for more will occur.
Add fire protection
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Install smoke detectors and other fire safety equipment. Check all smoke detector batteries at
regular intervals. (A good time to do so would be when time changes in the spring and fall.)
Clear your premises of fuel sources (newspapers, leftover paint, old rags, and other trash).
Secure all flammables in a locked fire-resistant cabinet. Dispose of flammable waste
material as quickly as possible. (Check with local authorities for approved methods of
disposal.)
Maintain an efficient emergency plan.
Educate employees about arson prevention.
Loss Prevention Handbook
Security/Law
Enforcement Division
False Identification
False identification contributes to losses from bad checks and credit cards. To minimize this
problem, require at least one primary form of identification when making business transactions.
False identification cards are easy to obtain and inexpensive to purchase. If you are not certain
that the identification is valid, terminate the transaction.
Primary forms of identification
• Valid California driver's license
• Valid California identification card
• Employee’s identification card with a laminated photo (check for possible alterations)
Never accept the following cards as identification:
• Membership cards
• Library cards
• Social Security cards
• Any card or form of identification that appears to be altered
Credit Card Fraud
When accepting credit cards, it is good practice to ask for a valid form of picture identification.
This may assist you in determining if the credit card belongs to the individual making the
purchase. Train employees to follow each credit card company’s authorization procedures. If the
credit card company indicates the credit card is stolen, explain to the customer that there is a
problem getting authorization and that you need to keep the card. Depending on the situation, you
might need to contact law enforcement.
Make sure you establish internal procedures for this kind of incident. Be consistent with enforcing
your procedures. Watch for suspicious signs that might indicate credit card fraud:
• The credit card has been altered, expired or is not valid.
• Signature on the back of the credit card does not match the signature on the sales slip.
• The customer makes several purchases, all under the amount that requires an authorization call
to the card issuer or management approval.
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Loss Prevention Handbook
California Lottery
Lottery®®
California
Special Notes
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When suspicious, call for an authorization from the credit card issuer, indicate your suspicion
and follow instructions.
REMEMBER that your safety is important. If the customer becomes abusive, call law
enforcement immediately.
ALWAYS destroy carbon copies from credit card invoices or offer the carbon copies to the
customer so that the credit card numbers and names do not fall into the wrong hands. If you
have a credit card invoice printer, make sure that you destroy the merchant roll when you
complete the bookkeeping transactions.
Check Fraud
There are a number of ways that fraudulent or stolen checks can “bounce” into your business.
Stolen checks can be forged and legitimate checks can be altered to show much higher amounts.
Fraudulent checks generated on home computers are becoming more prevalent in the business
community. If you are unsure, call the bank to verify that the account number matches the name
on the check.
Set up check cashing guidelines – and follow them
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All checks should follow company guidelines regardless of the amount.
Require valid identification to cash a check – make no exceptions.
Require management approval for out-of-area checks.
Accept only checks imprinted with the customer’s name, address and bank account number.
Consider limiting the check to the amount of the purchase.
Consider requiring a thumb print on the check for positive identification.
DO NOT accept two or more party checks.
DO NOT accept postdated checks.
DO NOT accept checks with alterations.
Refund Policy
To minimize losses on fraudulent refunds, consider the following:
• Issue cash refunds only to persons who have a receipt verifying the purchase.
• Establish and post a policy for returning non-defective merchandise without a receipt.
• Refund by check.
• Consider a “no refund” policy – exchanges only.
• Always require valid identification and maintain files of returns.
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Loss Prevention Handbook
California Lottery®
LOTTERY-RELATED CRIMES
The California Lottery® Security/Law Enforcement Division will investigate any crime involving
Lottery products at a Lottery retail location. The investigating Lottery Agent will contact the retailer to
determine what has occurred and verify any Lottery-related loss incurred by the retailer. The Lottery
Agent will investigate the following crimes:
Burglary
A burglary usually occurs at night and after a business is closed. This would apply
to a suspect who enters a business location with the intent to commit grand or petty
theft (such as stealing Lottery tickets and other items).
(459 PC Felony)
Robbery
A robbery occurs when a perpetrator takes personal property in the possession of
another person against their will by means of force or fear. The stolen property
could include cash, Lottery tickets and other items.
(211 PC Felony)
Grand Theft
Grand theft involves stealing property valued over $400. This would include
Lottery tickets stolen during normal business hours.
(487 PC Felony)
Petty Theft
Petty theft involves stealing property valued at $400 or less. This would include
Lottery tickets stolen during normal business hours.
(488 PC Misdemeanor)
Attempts
An attempted theft (and other crimes) is an unsuccessful act of stealing property that
was not obtained by the perpetrator. A suspect might have tried to steal Lottery
tickets but was prevented from completing the act when detected by the victim or by
other means. It would also apply to a suspect attempting to redeem
stolen Lottery tickets.
(664 PC Misdemeanor or Felony)
Embezzlement
Embezzlement is the fraudulent appropriation of property by a person to whom it
has been entrusted. It would apply to an employee who, during the course of their
employment, takes Lottery tickets without paying for them.
(503 PC Felony)
Forgery
Forgery applies to any person who alters or is in possession of an altered California
Lottery® ticket with the intent to defraud. This applies to any suspect
who presents an altered Lottery ticket for a prize.
(470 PC, 475 PC Felony)
Receiving
Stolen
Property
Receiving stolen property applies to any person who buys or receives any stolen
property (including Lottery tickets), knowing that the property was stolen.
(496 PC Felony)
Draw
Game
Tickets
Retailers are not reimbursed for stolen draw game tickets. All draw game tickets
are printed with the value of each ticket (example: $1.00, $5.00, $10.00, $50.00,
$100.00). Before releasing a draw game ticket to a customer, VERIFY the value of
the ticket. The Lottery terminal screen will advise the cashier of all HOT SPOT®
sales valued at $50.00 or more prior to printing the ticket. (Avoid the risk of being
paid only $1.00 for a $100.00 Hot Spot® ticket (valid for 100 draws).
Loss Prevention Handbook