JM Security Program: Jewelry Crime in Context David Sexton CPCU - - PDF document

Jewelers Mutual Insurance Group: Jewelry Crime in Context: 07/12/2018

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JM Security Program: Jewelry Crime in Context

David Sexton CPCU V/P Loss Prevention Consulting

Jewelers Mutual Insurance Group: Jewelry Crime in Context: 07/12/2018

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Jewelers Mutual Insurance Group: Jewelry Crime in Context: 07/12/2018

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EXHIBIT ONE: JSA ANNUAL CRIME REPORT SEVEN YEAR / SIX MONTH COMPARISON: JANUARY 1 TO JUNE 30

CASES 2018 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 201 2 CATEGORY ROBBERY 100 77 91 132 131 142 159 BURGLARY 74 103 109 115 127 170 187 THEFT 452 356 310 294 355 402 461 OFF-PREM 13 15 18 21 28 26 37 TOTALS 639 551 528 562 641 740 844 DOLLARS 2018 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 2 0 1 2 CATEGORY ROBBERY $ 13.4 M $ 8.4 M $ 16.3 M $ 16.3 M $ 13.1 M $ 17.4 M $ 19.8 M BURGLARY $ 4.5 M $ 8.9 M $ 5.7 M $ 8.7 M $ 9.5 M $ 6.0 M $ 6.8 M THEFT $ 5.7 M $ 3.9 M $ 3.1 M $ 2.8 M $ 5.9 M $ 5.0 M $ 9.0 M OFF-PREM $ 2.8 M $ 5.8 M $ 5.7 M $ 5.4 M $ 5.5 M $ 6.9 M $ 5.5 m TOTALS $ 26.4 M $ 27.0 M $ 30.8 M $ 33.2 M $ 34.0 M $ 35.3 M $ 41.1 m

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JSA CRIME REPORT SIX YEAR/SIX MONTH COMPARISON: JANUARY 1 TO JUNE 30

DOLLARS 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 2 0 1 2 CATEGORY ARRESTS 126 122 209 374 211 273 HOMICIDES JEWELERS 3 1 1 2 ROBBERS 3 4 2

Source: JSA Crime Definitions: Robbery- Taking property from a person by use of force or fear. Burglary- Entering premises after closing with intent to commit a crime. Includes hiding in a jewelry operation, taking property and breaking out after closing. Theft- Taking of property without force or fear. Includes crimes such as check and credit card fraud, distraction crimes, diamond switches, sneak thefts and shipping losses that present evidence of criminal activity. The term “shoplifting’ is too vague and is therefore not used to describe events in JSA ‘s Annual Crime Reports.

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EXHIBIT TWO: JSA ANNUAL CRIME REPORT FULL YEAR COMPARISON FROM 2012 - 2017

CASES 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 2 0 1 2 CATEGORY ROBBERY 195 174 231 280 281 303 BURGLARY 240 287 256 241 315 362 THEFT 920 736 633 760 753 780 OFF-PREM 39 . 48 57 56 38 65 TOTALS 1,394 1,245 1,177 1,363 1,387 1, 510 DOLLARS 2 0 1 7 2 0 1 6 2 0 1 5 2 0 1 4 2 0 1 3 2012 CATEGORY ROBBERY $ 21.5 M $ 24.2 M $ 26.8 M $ 34.2 M $ 25.8 M $ 21.9 M BURGLARY $ 15.5 M $ 28.4 M $ 17.7 M $ 18.6 M $ 16. 1 M $ 14.1 M THEFT $ 17.0 M $ 6.8 M $ 10.0 M $ 11.0 M $ 13.7 M $ 12.5 M OFF-PREM $ 18.1 M $ 13.0 M $ 14.8 M $ 13. 1 M $ 9. 7 M $ 12.4 M TOTALS $ 72.1 M $ 72.4 M $ 69.3 M $ 76.9 M $ 65.3 M $ 60.9 M

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JEWELERS SECURITY ALLIANCE ANNUAL CRIME REPORT FULL YEAR COMPARISON FROM 2012 - 2017

DOLLARS 2 0 1 7 2 0 1 6 2 0 1 5 2 0 14 2 0 1 3 2 0 1 2 CATEGORY ARRESTS 350 329 441 694 411 461 HOMICIDES JEWELERS 5 6 2 3 6 2 ROBBERS 1 5 3 1 3 3 * In 2017:1 Customer and 1 Good Samaritan were killed.

Source: JSA Crime Definitions: Robbery- Taking property from a person by use of force or fear. Burglary- Entering premises after closing with intent to commit a crime. Includes hiding in a jewelry operation, taking property and breaking out after closing. Theft- Taking of property without force or fear. Includes crimes such as check and credit card fraud, distraction crimes, diamond switches, sneak thefts and shipping losses that present evidence of criminal activity. The term “shoplifting’ is too vague and is therefore not used to describe events in JSA ‘s Annual Crime Reports.

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EXHIBIT THREE: JSA ANNUAL CRIME REPORT MOST COMMON CRIME SCENES

YEAR

• No. 1
• No. 2
• No. 3
• No. 4

2006 Parking Lots 43% Hotel/Motel 25% Residence 10% Driving 8% 2007 Parking Lots 51% Hotel/Motel 17% Residence 16% Gas Station 10% 2008 Parking Lots 37% Hotel/Motel 18% Residence 18% Gas Station 7% 2009 Parking Lots 47% Residence 18% Hotel/Motel 17% Restaurant 9% 2010 Parking Lots 42% Hotel/Motel 16% Residence 13% Restaurant 8% 2011 Parking Lots 42% Residence 14% Hotel/Motel 11% Driving 11% 2012 Residences 26% Hotel/Motel 24% Parking Lots 16% Driving 7% 2013 Parking lots 32% Residence 16% Driving 14% Store Front 7% 2014 Highway/street 21% Parking Lots 16% Show related 14% Residence 12% 2015 Parking Lots 43 % Hwy/Streets 19 % Residence 7 % Trade Show 5 % 2016 Hwy/Streets 36 % Parking Lots 23 % Trade Show 17 % Residence 6% Gas Station 6 % 2017 Parking Lots 28 % Hwy/Streets 25 % Residence 17 % Flea Market 7%

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EXHIBIT FOUR: JSA ANNUAL CRIME REPORT APPENDIX D Site of On-Premises Crimes Reported in 2015

Location Robbery Burglary Thefts Mall 97 77 422 Strip Center 52 64 64 Downtown/Center City 43 33 71 Stand Alone 22 50 39 Flea Market 4 3 1 Antique Store 2 4 1 Unknown 11 25 35

ANNUAL CRIME REPORT APPENDIX D Site of On-Premises Crimes Reported in 2016

Location Robbery Burglary Thefts Mall 78 107 534 Strip Center 43 70 60 Downtown/Center City 23 51 74 Stand Alone 16 32 26 Other 14 27 42

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ANNUAL CRIME REPORT APPENDIX F Site of On-Premises Crimes Reported in 2017

Location Robbery Burglary Thefts Mall 91 93 674 Strip Center 28 57 71 Downtown/Center City 40 58 88 Stand Alone 29 22 60 Other 7 10 27

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EXHIBIT FIVE JM INSURANCE GROUP AUDIT FORM ROBBERY See: JSA Manual Pp13-32

Robbery is the Taking property from a person by use of force or fear. Note: If a retail jeweler follows basic security procedures, the risk of robbery can be greatly

• reduced. Observing the following can greatly reduce your chances of having an armed robbery as

well.

Are your associates encouraged to vary their route and times for coming to or leaving from the store

at opening and closing? Note: Retail security begins at home

Are your associates encouraged to plan alternate routes they can take when they suspect they are

actively being followed while coming to or leaving from the store?

Are your associates encouraged to use their alternate route to confirm/verify they are indeed being

followed while coming to or leaving from the store?

Are your associates familiar with basic evasive driving tactics? See JSA Manual Pp 90 - 92 Are your associates encouraged to have identified in advance a place of safety (police station, fire

department, etc.) they can go to in the event they have confirmed they are being actively followed while coming to or leaving from the store?

Are your associates encouraged upon arrival at the store to conduct an examination of the exterior of

store for any signs of a break-in either the store or an adjacent premise, before entering the premises?

Do two individuals open your store?

Note: Opening and closing are times of great robbery risk for retail jewelers

Does one associate open the store while the other associate observes from a safe distance with a

cellular phone to call for assistance should the need arise?

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Upon opening does the first associate:

(a) Immediately relock the door? (b) Disarm the alarm? (c) Conduct a thorough search of the store (including looking for signs of an undetected break-in)? (d) Provide the second associate a pre-arranged ‘all clear’ signal when satisfied the premises are secure?

Does the first associate unlock the door to allow the second associate access into the store after first

making sure there are no suspicious individuals or vehicles observed within proximity to the store?

Is the door locked after both associates have safely accessed the protected premises? Do the doors to the store remained locked until the usual merchandise placed on display is removed

from safe(s)/vault(s) and arranged in locked merchandise display cases and the store is ready to open for business? Do you display on your exterior door the JMIC placard that states: NOTICE: Our insurance company does not permit us to open our doors before or after business

• hours. Thank you.

When leaving for the day are the opposite procedures to those observed at opening followed? Do your associates check to confirm that all customers have left the store before doors are locked

and associates begin to remove merchandise from displays to be returned to safe(s)/vault(s) for locked storage overnight?

Do your associates check to confirm no one has concealed themselves somewhere within the store at

closing?

CASING Are associates encouraged to follow their instincts and hunches with regard to suspicious individuals

they may encounter during the business day?

Are associates educated to know what to do when they encounter any unusual or suspicious activity,

individuals or vehicles they may encounter? Have a plan!

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Are associates educated to use a pre-arranged phrase or signal to alert others of a suspicious

situation about to unfold?

Are associates educated to have one associate leave the protected premises visibly carrying a cell

phone preparing to call in the event of a suspicious situation about to unfold?

Does the store maintain a suspicious incident log in which time-dated casing and suspicious

incidents, license plate numbers and descriptions of all suspicious vehicles and the occupants are recorded and shared with other associates?

Have associates been educated to document times in the store’s suspicious incident log to be able to

more easily retrieve corresponding recordings of these same suspicious incidents later as necessary? Note: The coordination of suspicious incident log entries with corresponding video clips of same can be used as effective training tools for your associate education and to share with local law enforcement and mall security when reporting suspicious activity

Do associates vary the times they take breaks and meals to be less observably specific to time and

place during the business day?

Are associates educated to vary the routes they take whenever they leave the premises during the

day (i.e. to the post office, bank, lunch or other necessary trips outside the store)?

Have you established a good relationship with local law enforcement? Are they aware of your security concerns? Have they ever visited and/or been conducted on a tour of your store? DELIVERY PERSONNEL Are your associates able to recognize and identify regular delivery personnel and key trades people

who routinely make visits to the store?

Are your associates educated in how to handle unscheduled visits to the store?

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(a) Before allowing entry to the store, especially when the visitor is unknown, do associates ask for identification and a telephone number they can call to confirm/verify his/her identity and purpose for the visit? (b) Are associates educated to confirm/verify the individual utilizing an independent telephone number for the business or trades vendor?

Have associates been educated to know what proper identification a legitimate courier, delivery or

• ther trades people are required to carry?

Are associates educated to never allow anyone into the store before or after business hours?

VIDEO SURVEILLANCE SYSTEMS

Note: An effectively designed, installed, serviced and maintained video surveillance system is an important part of every jeweler’s security. These systems can serve as crime deterrents to nonprofessional criminals and aid law enforcement in identifying and successfully prosecuting

• criminals. These systems have also successfully taken the ‘mystery’ out of an otherwise

mysterious disappearance as well as identified employee theft issues that would have otherwise been impossible to detect by any other means.

Do you have a surveillance system in your store?

Note: JMIC has a resource to help retail jewelers decide what video surveillance system they may want to install in their stores called Video Surveillance Systems Ed. 07/2017

Does the current configuration of your surveillance camera network allow the system to capture

‘Head shots’ as recommended by the FBI. Note: The JSA and FBI also recommend that several cameras in any jewelry operation’s video surveillance system be specifically positioned to capture good frontal images of people faces entering and/or departing the protected premises. These ‘head shots’ will assist law enforcement in successfully identifying and prosecuting criminals following a criminal loss.

Does the format of the video captured require a special media player to down load images?

Note: The JSA and the FBI recommend jewelers employ video surveillance recording software which will allow recorded images to be easily and immediately down loaded by law enforcement to utilize in their active investigations following a loss. The Microsoft Windows Operating System would be an example of such software.

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Are your DVR and surveillance system cameras operational? How many days of recorded surveillance are being stored on your DVR? (JSA P 25):

Note: Daily recordings should be held for four weeks.

Do you or your associates know how to operate the DVR and camera system? Do you or a qualified resource conduct routine service and maintenance on your surveillance system

equipment as recommended by the manufacturer of same to assure optimum operation of the system?

Is there a service and maintenance agreement covering your surveillance system? Is an associate assigned to the daily maintenance of your surveillance system? Do associates have access to written instructions with regard to the optimum operation of the

surveillance equipment?

Do network camera angles cover all areas of the sales floor where merchandise is present as well as

access to safe(s)/Vault(s)?

Do you have remote video access to your protected property via your surveillance system through a

mobile device?

Does your system let you know when a camera in your system network is not working? BURGLARY

Entering premises after closing with intent to commit a crime. Includes hiding in a jewelry operation, taking property and breaking out after closing.

Do you have a UL Certified burglar alarm system protection your store? Does your burglar alarm system provide line security as part of your protection?

Note: Line security is an indispensable element in every effective jewelry operation’s burglar alarm protection. Line Security (i.e. Standard, Encrypted) ensures the integrity of the alarm communication path between the jeweler’s protected property and the jeweler’s burglar alarm monitoring facility.

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Does your burglar alarm system supervise your openings and closings of the store?

Note: Supervised Openings & Closings: The responsibility for turning the protected premises burglar alarm on (arming the alarm system) and off(disarming the alarm system) belongs to the subscriber (owner), but with supervised openings and closings these actions are signaled to the jeweler’s burglar alarm system’s monitoring facility where it is recorded and noted. This two-party control ensures that the burglar alarm system is indeed turned on (armed) during the period that the alarm protection is needed. Any irregularities in the time frames in which the opening and closing signals are received at the jeweler’s burglar alarm system’s monitoring facility are acted

• n promptly!

Do you utilize UL Burglary Resistant Rated containers (i.e. Safe(s) and modular Vault (s) for the

storage of merchandise when operations are closed to business?

Are your safe(s) and vault(s) properly alarm protected? Have you established and maintained a calling list of authorized individuals with keys to the protected

premises who can meet local law enforcement officers and/or an alarm company dispatched guard, in the event you receive an alarm condition notification from your alarm service company when your operations are closed to business?

Have you established response procedures you will follow each and every time you receive a

notification of an alarm condition at your store when operations are closed to business?

When you receive notification of an alarm communication signaling at your store when operations are

closed to business, do you confirm/verify that the caller is actually who they say they are by calling your alarm service company utilizing the telephone number they provided you and confirming same?

When responding to an alarm communication signaling notification when your operations are closed

to business, does your authorized responding associate always make sure to only arrive at the protected premises if local law enforcement and/or an alarm company dispatch guard are already present?

When responding to an alarm communication signaling notification when your operations are closed

to business, does your authorized responding associate always allow the law enforcement officer and/or alarm service company dispatched runner conduct a thorough investigation of the source of the alarm signal before entering the store to determine what merchandise may have been taken?

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THREE MINUTE BURGLARY

The most common kind of burglary consists of burglars smashing a glass window or door of a retail store, smashing merchandise display showcases and removing goods, or stealing merchandise that has not been removed from sight and/or properly secured when the store is closed to business. These attacks on jewelry stores are usually committed by burglars in less than 3 minutes, thus the name of this category of burglary loss.

Do you leave any merchandise, regardless of the intrinsic value, visible that is not secured in safe(s)

• r vault(s) overnight?

Are your associates educated not to cover your merchandise displays with a cloth or display covering

when operations are closed to business?

Do you maintain and operate metal grating or gates installed on the inside of your glass doors and

windows to discourage three-minute burglaries?

Do you utilize impact resisting glazing materials in your glass doors and show window display i.e. UL

Burglary Resistant Glazing Materials)?

THEFT

The taking of property without force or fear. Includes distraction and sneak thefts, grab and runs, smash and grabs, switches, credit card fraud, fraud by checks and money orders, internal theft by employees, shipping losses, and other types of fraud, scams and larcenies. Each crime has its own characteristics which jewelers should learn to spot.

Do your associates immediately greet each customer who enters the store? Do your associates keep all wall cases, show windows and merchandise display cases locked, except

when removing or returning merchandise?

Do your associates keep the safe(s) / vault(s) day gate(s) locked during the day? Is access to safe(s)/and/or vault(s) room(s) limited to authorized associates? Are there at least two associates present at all times on the showroom floor at opening, closing as

well as during the day?

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Are your associates educated to never turn their back on a customer? Do your associates allow customers to reach into unlocked showcases? Associates should not allow two or more customers shopping together surround them. Do associates attempt to situate themselves to keep their customers in view at all times? Do your associates allow non-employees access to into your associate work areas, safe or vault

rooms, staff restrooms or access behind jewelry merchandise displays?

Do your associates ever leave the showroom unattended, even ‘just for a minute’? Have your associates been educated in the appropriate use of a special code word or phrase to alert

their coworkers of any suspicious individuals or situations they encounter in the course of the business day?

Does store leadership conduct regularly scheduled meetings with their staff to review security

procedure and protocols to be followed in the event of criminal events?

Do your associates know what to do in the event of an armed robbery? Does store leadership post all JSA Crime Alert Bulletins in a prominent place in the staff work area

and/or require the staff to sign off that the Bulletin has been read every time before posting same?

Do your associates understand what steps should be taken whenever a customer attempts to leave

the store without paying for the merchandise or is suspected of shoplifting?

MERCHANDISE DISPLAY SHOWCASE Are all your wall cases, show window displays, and merchandise display cases equipped with key

locks?

Are your showcase keys unique to specific showcase fixtures and not universal to all showcases? Do your associates keep showcase keys on their person at all times during the business day?

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Are showcase keys secured when not being carried by associates? Are merchandise display showcases containing higher valued merchandise located away from points

• f quick public access?

Is your higher valued merchandise distributed between a number of merchandise display cases

throughout the showroom?

Are showcase merchandise counts conducted at least twice during the open to business period by

two different associates each time?

Do your associates routinely inspect merchandise display showcases sides and tops several times

throughout the day for any evidence of tampering or attempted lifting?

Are all your showcase keys accounted for on premises at least once every day? Do you have a procedure you follow in the event a showcase key turns up missing? Are your showcase keys identifiable as assigned to each authorized associate? Are all of your merchandise display showcases kept key locked at all times unless merchandise is

being removed and/or replaced to show a customer?

Do your associates show more than one item at a time? Do your associates ask for customer identifications when showing higher valued items? Do you display any of JMIC’s Showcase cards in your showcase display that say:

(a) Photo I.D.: Our insurance company permits us to show some merchandise from this showcase only if you provide photo identification. Thank You. (b) Our insurance Company allows us to show only one item at a time from this

• showcase. Thank you.

After a customer has examined an item, do your associates reexamine it to confirm/verify that it is the

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same piece they gave the customer, before returning the item to the locked showcase?

Are your merchandise display trays in showcases kept completely filled with either merchandise or

markers?

Do associates utilize a locked tweezers when showing loose merchandise to a customer? Do your associates notify another associate or manager when showing an item valued at a cost in

excess of $ 5,000 (cost)?

HOUSEKEEPING

Are fire extinguishers properly charged, routinely inspected and tagged accordingly? Are all associates educated in the use of the fire extinguishers? Are exits lights illuminated? Are all marked exits accessible and free of obstacles? Are there gas or oxygen cylinders on the protected premises? Are all flammable materials identified, correctly stored, labeled and handled? Are torches used on the protected premises? If torches are used on the protected premises, have associates with access to same been properly

educated in the safe use of same? Have the associates been educated in the appropriate use of any hold up devices on the protected premises? (JSA P 18) Are clear plastic bags used to store trash? Are all cardboard boxes broken down prior to disposal?

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Does store management inspect trash/boxes prior to being removed from the store? Is the trash removal process supervised by a member of store management?

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