A Guide to Internal Loss Prevention

Preface 1 White Collar Crime Reporting Crime Cost Charting Crime Cost Factors in crime cost Introduction to White Collar Crime What is white collar crime Who commits white collar crimes? Collusion 2 Administration Considerations Cause, Effect, Remedy Duplication of Effort Reproduction Department Mail Room Activities Stationery and Supplies Printing Association Memberships Subscriptions Travel Entertainment Expense Accounts Alcohol and Drug Problems Telephone Abuses 3 Computer Security Physical Security Fire prevention Access control safeguards Usage safeguards Software Security Case Studies Case one Case two Some Additional Points to Consider 4 Financial Considerations Accounting Department Accounts payable Short shipments and incorrect parts Damaged goods Price changes and shipping charges Late deliveries Auditing section Cost accounting Asset Accountability Some costly losses Cash Handling Recommended safeguards Petty Cash Fidelity Bonding Expense Account Auditing Check-Signing Devices Insurance Aspects of Coverage Insurance Claims and Fraud Timekeeping and Payroll Manipulation 5 Information Security Present-Day Problems Notable Spy Cases Cookie caper Hughes Aircraft radar and weapons system compromise Hitachi, Mitsubishi, and IBM Counterfeit Goods Government Policy Classified Information Nonclassified Information Relating to Classified Contracts International Traffic in Arms Regulations Technical Data Subject to Export Control Technical data export Computer Trespass Some Solutions Computer security Protection of proprietary information6 Management Considerations Recognizing Management Attitudes IRS — Individual Responsibility for Security Awareness of Security Work Simplification Standardized vs. customized Loyalty Management by Exception Reports Spoilage, waste, scrap Informants vs. Concerned Employees One Company's Solutions to Business Crime Theory vs. reality Willingness to fight crime Lost Time Theft of Service Investigations Investigative Operations Audit Law Enforcement Liaison Disaster Preparedness Planning Executive Protection Personal protection for the executive 7 Facilities Security and Operations Design for Security Facility Site Audit Performing the audit Lock and Key Control Maintenance Department Janitorial Services Over the Fence Rubbish Removal Construction Site Security Temporary fencing Temporary lighting Roving patrols Heavy equipment safeguards Sabotage 8 Production Area Considerations Inventory Control — Shrinkage Pilferage Materials Handling Measures for materials protection Purchasing Department Raw Materials Inventory Receiving Department Damaged goods Distribution Delivery Services After-hours deliveries Salvage, Scrap, Surplus Errors and Omissions 9 Personnel Considerations Hiring Policies Fingerprinting Photographing Personnel Policies Labor Turnover Vacations Disciplinary Action Search Policy Gambling Employment Agreements Conflict of interest agreements Patent disclosure statements Nondisclosure of proprietary information statement Suggestion Systems Absenteeism Exit/Termination Interviews 10 Safety Considerations What Causes Accidents? Unsafe Practices Unsafe Conditions Zero Accidents Safety inspection Accident Investigation Accident investigation: questions to ask Index