Everybody has a right to protect themselves. We have a right to protect our property. Business owners have a right to limit loses and protect their livelihoods.

What happens when injury is a result of us protecting ourselves – what happens if death is the result of us exercising our rights? Where do we draw the line?

On Tuesday September 22, 2009 – CBC – reported that a “Store owner faces assault charge after the death of a shoplifter” (Please click the link to read the full story).

Of course the investigation is still on going but the summary of the story is that a 61 year old woman was confronted by the owner of a convenience store when she was trying to steal a can of lunch meat worth $1.49. The police were notified of the confrontation, which allegedly included the use of a bat, 2 days after the incident. Five days later the woman was taken off life support and had passed away.

Reportedly her death has not been conclusively linked to the “confrontation” and there is an ongoing investigation.

So my question for you is… Where do we draw the line? How far are we allowed to go to protect ourselves?

Be Safe & Be Good To Each Other!
Sherry

Simplifying the definition of a Ponzi scheme – Ponzi schemes are orchestrated by using the monies invested by an individual to pay returns to themselves or another investor rather than from actual profits from the investment.

In today’s world most people think of Madoff when they hear the word Ponzi but did you know that ponzi schemes have been around since the 1920’s. In fact the first documented ponzi scheme was perpetrated by a man by the name of Charles Ponzi who became famous for using this technique thus the term “Ponzi scheme”.

Interesting side note: Charles Ponzi did not create the scheme, Charles Dickens wrote Little Dorrit in 1857 which described such a scheme.

Let’s fast forward to 2009 – while the basics of the scheme remain the same the opportunity for new, larger and far reaching schemes are obtainable through the growth of the financial industry and available investment vehicles thus disguising, if only for awhile, the scheme.

I recently read a very good article from Mark Scott, J.D written in the ACFE (Association of Certified Fraud Examiners) August Newsletter, highlighting the “Red Flags of Ponzi Schemes”

In part:
…the following red flags that may signal fraudulent investment operations.

Sounds Too Good to Be True
If an investment sounds too good to be true, it probably is. This old saying is perhaps the easiest way to spot a Ponzi scam.

Promises of Low Risk or High Returns
Any legitimate investment involves risk; guarantees that an investment will perform a certain way are a clear warning sign of fraud.

History of Consistent Returns
Any firm that generates remarkably consistent returns regardless of market conditions should raise suspicions.

High-Pressure Sales Tactics
Reputable investment firms and agents do not push potential investors to act immediately, and legitimate investment opportunities are rarely that time sensitive. Furthermore, agents need time to research the individuals and firms selling the investments and review any proposed investment vehicles and strategies before recommending them to clients.

Pressure to Reinvest
Often, fraudsters keep Ponzi schemes alive by convincing investors to reinvest their profits rather than take a payout. Therefore, any promoter who pressures investors to roll over their profits should raise suspicions.

Complex Trading Strategies
Legitimate agents should be able to provide clear explanations about their strategies. Therefore, investors should avoid anyone who promotes using a highly complicated investing strategy that is impossible to explain in layman’s terms.

Lack of Transparency
Any secrecy or lack of transparency in the operations of an investment company or an investment process should be treated as a red flag (e.g., lack of detailed information in writing, investment is not evidenced by a statement, investment is evidenced by an unsecured note, investors do not have online access to their accounts, etc.).

Lack of Segregation
Lack of job segregation is another red flag that should raise concerns about a company’s investment operations. Be concerned about any financial managers who manage, administer, and retain custody of the fund in question because the opportunity for fraud is high in these situations.

Public Information
Public information can be particularly crucial in helping fraud examiners determine the legitimacy of an investment. It is important to research the investment company, as well as the promoter’s background.
Some other typical red flags to watch out for include investments that are not properly registered, agents with criminal records, unexplained gaps in a promoter’s work history, prior customer complaints, regulatory problems, questionable credentials, lack of background information on the company website, and generic contact information such as a Yahoo! E-mail address.

Conclusion
Understanding the red flags of the various fraud schemes is a key area of knowledge necessary to succeed as a fraud examiner. With Ponzi schemes on the rise in our increasingly complex investment markets, learning to identify the red flags of fraudulent investment operations will help fraud examiners minimize investor loses, and may even allow them to prevent future Madoff-style investment schemes from occurring.

Be Safe
Sherry

http://www.sherrymccourt.com

With the rise of scams I encourage you to use the following worksheet.

Scam Prevention/Protection Worksheet

1. Note the date and time of the call or visit:______________________

2. Has the caller fully identified the organization that he/she represents immediately after you answer? Yes____ No____

Does the caller work for the organization itself or for a fund-raising firm?___________

Ask for and write down the full name, address and phone number of the person making the call or visit and the organization(s) that he/she represents:

Name:________________________________
Address:______________________________
Phone#_______________________________
Organization:__________________________
Fund-raising firm:_______________________

(What to watch for: Hang up if the caller hesitates or refuses to answer these questions. Caller that follow federal telemarketing guidelines should immediately identify themselves.)

3. Does the caller represent a charitable organization? Yes____ No____

What is the charitable purpose of the organization?_________________________

Is it registered with the Province Registry of Joint Stocks, the Better Business Bureau and/or Canada Customs Revenue Agency (CCRA)? Yes____ No___

What percentage of its total income does the charity spend on its program?_________

(What to watch for: Don’t settle for vague descriptions of the organization’s activities that emphasize the problem without explaining what the charity is actually doing about it. Also, make sure that the largest portion of your donation will go toward actual charitable work, not fund-raising expenses.)

4. Is the caller offering a product, service or contest of some sort?
Yes____ No____

Are they licenced under the Provincial Direct Seller’s Act? Yes____ No____
If the answer is yes, what is their number ? ______________________

How much does the product or service cost?_____________________

Is the sale final or refundable? Yes ____ No____

Does the caller seek payment prior to delivering the product or service? Yes____No____

(What to watch for: Hang up if the caller seeks payment prior to delivery of the product or service, or if the offer does not come with a money-back guarantee.)

5. Does the caller seek cash? Yes____ No____

(What to watch for: Hang up immediately if the answer is yes. Legitimate organizations do not seek cash payments via the phone.)

6. Will the caller send details of the charity or product/service in writing, and therefore give you time to carefully review the offer? Yes____ No____

(What to watch for: Hang up immediately if the answer is no, or if you must act “right away”. Legitimate organizations will respect your interest in taking time to review offers prior to making a decision.)

Originally developed by P.A.C.T. (Prevention and Awareness of Crime and Theft)
(A partnership between the RCMP, Competition Bureau – Industry Canada, BBB, Service NS and Municipal Relations, NS Senior Citizen’s Secretariat and Aliant)

Gone are the days of relying on the simplistic alarm systems with basic security functions and ignored sirens.

Sophistication and Smart Technology takes the place of a standard security system and turns basic into an extraordinary, easy to use, life enhancing and even an environmentally friendly approach to safe and easy living.

Smart Systems provide the ultimate in safety for your family with features not found in a standard security system such as inside and outside lights turning on in the event of a security breach, or the air conditioner/ furnace fan automatically turning off in the event of a fire to prevent the spreading of smoke throughout the home.

These systems can be personalized to notify you by e-mail, internet surveillance or by central monitoring of an alarm event. With a couple clicks of a mouse you can log in to your home system and check or change the security, temperature, or light settings, and view any camera’s you have in your home.

An example of these alerts is having your system email you when your children have arrived home from school or if the alarm has gone off.

So in these busy and often hectic times, it is very normal for us to turn to technology to ease some of the demands and why not?

The security of my home is one less thing I worry about, I love my occupancy lighting – I never come home to a dark house (and I am not wasting electricity leaving the lights on), I never think about the temperature in my house (and I know that I am saving money on my heating/cooling bills) and my house will email me if the children have not arrived home by our set time. (NEXGEN Controls inc. installed my system)

Aren’t you and your family worth more than the basic alarm system?

Be safe,
Sherry

This past week has been particularly brutal with multiple cities reporting street attacks. Some were one bad guy against an individual and others involved groups of bad guys attacking young couples. Some involved weapons while others involved vicious intimidation by means of verbal and physical force.

How fitting is it that I have been introduced to Steven Mosley. Steven has over two decades of law enforcement experience but what has impressed me even more is his 20+ years of defensive tactics instruction. So when I decided to write a summary of what it takes to Win A Street Fight I had to share these tips Steven shares with us in his blog “Street Sense”

Random Tips for Winning On The Street
• The number one option for personal security is a lifelong commitment to avoidance, deterrence, and de-escalation.
• Make up your mind right now about what you are willing to do to win in a fight.
• Be alert to your surroundings.
• Avoid conflict.
• There’s always someone better than you.
• Keep moving
• Action beats reaction
• There is no “second place” on the street
• Always cheat. Always win.
• Keep breathing and moving your head.
• Don’t escalate the situation. If they escalate, finish them.
• Keep your head moving and your vision in play.
• Always, always check behind you (check six); always, always check around you (check 360).
• Have the mentality to do whatever has to be done. Make up your mind in advance.
• Fight until the threat is over. Be sure it’s over.
• Watch the triangle (head (eyes) to shoulders) and the hands.
• Have a plan.
• Have a back up plan, because the first one won’t survive first contact.
• Don’t drop your guard.
• Be aggressive enough, early enough.
• The faster you finish the fight, the less hurt you will be.
• THE GOLDEN RULE: KNOW WHEN YOU’RE IN A FIGHT. IT STARTS LONG BEFORE THE BLOWS GET THROWN. MOST PEOPLE GET HURT BECAUSE THEY DON’T RECOGNIZE AN INTERVIEW OR THE IMPENDING CUES AROUND THEM THAT TELL YOU — YOU’RE IN A FIGHT.

Be safe!

Sherry

www.sherrymccourt.com

June 1, 2009

As I review the papers across North America, I am disheartened to read about the rise in brutal home invasions.

What is a Home Invasion?

Home invasion occurs when a person or persons enter an occupied home with the intent of committing a crime while threatening the residents. This crime has a tendency of being particularly brutal where by the residents are usually tied up and sometimes beaten or worse.

Home Invasions are scary and threaten our belief that we are the safest in our homes.

These bad guys and gals are looking for opportunities to enter your home with the least amount of effort, the lowest risk with the highest gain.

Your job is to make your home less attractive to the criminals!

You do this by making it very difficult to gain access, restrict their ability to view their possible gain and make your home look like they will be seen or caught if they enter your home.

Top 10 tips to keeping you and your family safe:

1 ) Keep your doors locked at all times!

2 ) Secure your windows and their screens.

3 ) Prune or remove trees and shrubs that hide your windows and doors from view or give the bad guys a place to hide.

4 ) Leave your lights on at night or install motion sensors that turn your lights on when there is movement.

5 ) Make sure your lights are out of reach and protected so that they can not be broken or removed.

6 ) Get an alarm system – learn how to use it –activate it even when you are home – put a keypad in your master bedroom and learn how to use the panic / emergency buttons all alarm systems come with.

7 ) Take a look at the Smart Home Technology available to you. This technology enhances your traditional alarm system. My favourite is www.nexgencontrols.com

8 ) Change up your routine! Do not be predictable.

9 ) Appear to have lots of people who live in the home or are there when a stranger comes knocking – better yet – get a dog or make it look like you have a dog.

10 ) Above all else – TRUST YOUR INSTINCTS!

God forbid you become a victim of a home invasion.

What should you do?

You need to be quiet, calm, co operative and observant in order to keep your safety and to help the police catch the bad guys.

1 ) Quiet and Stay Calm – now is the time to keep level headed.

2 ) Co-Operate but do not go anywhere with them – Remember that no material possession is worth your life!

3 ) Observe – your job now is to remember as much as you can about the bad guys – scars, tattoos, eyes, nose, mouth, odours – tobacco, alcohol, aftershave or cologne, do they have an accent etc.

And my final tip for today is – Get to know your neighbours and your neighbourhood. Protect one another and look out for one another by knowing what is “normal” for your neighbourhood.

Be Safe!

Sherry

So what does a person who steals from their employer or from people they do not even know look like?
They are capable of taking dollars to millions of dollars from unsuspecting individuals and still live among us undetected.

These people do not look like evil monsters – they look like your next door neighbor, your banker and even your minister, priest or pastor. “They” have your trust or at the very least access to people you trust. “They” are people that you would never think to suspect and you are always surprised when you learn of their deception and theft.

The Fraud Triangle is much like the fire triangle we learnt of as a child in school in that there are three elements to make a fire. There are three elements of fraud required to commit a crime. And just like you cannot always predict fire you cannot always predict fraud but you can practice prevention!

The three sides or elements of the Fraud Triangle are: Pressure – Opportunity – Rationalization

Pressure = Cause

Pressure typically means medical bills, addiction problems, living beyond ones means, greed or any financial need or problem.

These needs are typically viewed as private so the fraudster feels that they cannot share the “problem” with anyone.

Opportunity = Ability

Opportunity allows the fraudster to commit the crime virtually undetected. When there are weak internal controls and poor management oversight, opportunity is created for the employee. Other opportunities are created when the fraudster holds a position of authority or trust and does not have a procedure or control element to govern their actions.

Organizations have the ability to put in place preventative processes and fraud detection controls thus having the ability to reduce “Opportunities” for the employees to commit fraud.

Rationalization = Rationalizing or Justification

The ability one has to rationalize his behavior is a critical element in the fraud triangle – meaning when a person is able to justify in his mind that his actions (stealing) is acceptable he is able to continue to steal without feeling the “normal” guilt you and I feel.

Most rationalizing involves:

A sense of entitlement (you work hard, you are under paid etc),

Desperation (you feel like you will lose everything or you need to do it to save the family),

Or they do not see the theft as stealing but more as borrowing (you really believe that you will pay the money back before anyone realizes it is gone).

Can you spot a fraudster?

You will note that I carry the designation of “CFE” – This stands for Certified Fraud Examiner and is designated by the Association of Certified Fraud Examiners, (ACFE). ACFE is an amazing worldwide association and I encourage you to visit their website to learn more about CFE’s and the Association itself. www.acfe.com

You do not need to be a Fraud Examiner to spot a fraudster – Let’s look at some of the RED Flags of Fraud:

5 Typical Personalities
They are living beyond their means
They are controlling and unable to relax
They never take vacation or sick leave (if they do it is a short amount of time)
They have a close relationship with their vendors and suppliers
They do not like their work or performance reviewed

5 Typical Pressures
Family medical bills
Living beyond their means – “keeping up with the Jones”
Excessive Gambling
Substances addiction (alcohol or drugs)
Lawsuits (Civil, Criminal or Divorce)

5 Typical Behaviors
They appear to be buying more “things” (clothes, jewelry, houses, boats, motorcycles, etc)
They behave moody, irritable and unreasonable
They works a lot, they start coming in early and leaving late, they will not take time off or only in short increments when forced too
They start talking about financial concerns or family obligations
They turn down a promotion

It is important to realize that people will exhibit some of the signs, on occasion, and no fraud is being committed. If a person is exhibiting multiple flags from all three areas, further investigation should be completed by a trained professional.

Now do you think you could spot a fraudster?

Most fraudsters are initially flagged not by a trained professional but by an unsuspecting coworker or temp worker who happened to notice that something was “not right”, either by behavior or by accounting irregularities or both.

In the end, fraud affects all of us.

All of us pay the price for the fraudulent insurance claim or the tax evader or the person who steals from investment funds or the employee who steals monies from the petty cash fund.
In the end we are all responsible and we are all accountable for our actions.

Being a fraud examiner is me doing my part, will you do yours?

It is 50 years ago and you and your husband decide to build your dream cottage. You have a typical mortgage and as the years go by you manage to pay that mortgage off. You now own your own cottage free and clear.

Fast forward- you are now 73 years old and as you sip your morning coffee you find out that you are in default of your mortgage on this cottage property. The lending institution is demanding payment from you.

You contact the lending company and explain that there must be some mistake and that you do not have a mortgage on your cottage.

Then…

You find out that a female with a poor credit rating and a documented annual income of $30,000.00 was able to take out a $320,000.00 mortgage on your cottage. To add insult to injury a man impersonating your late husband (who passed away just three months prior) signed over your home to this female for $1.00.

This is the story of a woman by the name of Glady Oehlerking of Hamilton.
Her cottage – a tiny two-bedroom wooden cottage in Richmond B.C.
The female – Ms. Sarah Mullen, a hairdresser and secretary and the male – an unidentified accomplice.
The other people involved in the case were Mortgage Lenders, 3 Lawyers, a Notary and British Columbia’s Land Title and Survey Authority.

According to an agreed statement of facts submitted to the court, Ms. Mullen and a man, using the social insurance number and drivers licenses identifying him as Roy Oehlerking met with 3 lawyers and made contact with the lending institution to arrange and collect the mortgage of $273,000.00 (a deduction of 15 percent of the mortgage in fees and expenses was with held) all in under 15 days.

Not one of the three lawyers verified the identity to of the man but if they had – they would have realized that the Social Insurance Number and the Drivers License was invalid because Mr. Oehlerking had passed away three months earlier.

The courts, after three years still have not decided who should be responsible for repaying more than $330,000 in principal, interest and penalties.

The lower court of B.C. ruled that Mrs. Oehlerking is responsible for the monies because of the way the legal system is structure. Then the court of appeals for B.C. sided with Mrs. Oehlerking and decided that the mortgage lender should swallow the loss. There was a backlash from the bankers and lawyers who believe that they have been victimized as well. This case could end up in the Supreme Court of Canada’s docket.

So I ask you – who should be responsible?

1) The legal owner of the property?
2) The bankers and lending institutions?
3) The lawyers?

To read more about this case and the laws mentioned please review Jacquie McNish Globe and Mail article dated Wednesday April 15th 2009 titled “When your house is not your home”

It’s a cold winter Saturday afternoon, my husband and I decide to take the children to rent some games from a popular movie rental store. As we walked through the front doors, I notice two cashiers and three customers – the two cashiers are behind the counter, an older male is in the far corner of the store and two younger males in the “used games for sale” section.

My children went to the Xbox isle and as I walked past these two young males the hairs on the back of my neck stood up and something just didn’t feel right. My husband, noting my hesitation moved towards the cashiers and I walked back over to the same isle as these young men. They knew they had been busted when they catch my eyes wander to their irregular shaped stomachs.

In all my years in the security industry this was the first time that I was actually frightened of what the store cashiers were going to do instead of the thieves. Because one of the cashiers froze in a panic, not able to move or comprehend in real time what was taking place. The other cashier became very aggressive, placing himself, his clients and his partner in harms way.

There were a multitude of mistakes made that afternoon by the cashiers including the aggressive cashier chasing the thieves out of the store by himself with no back up and the local authorities had not been called until the thieves were gone and the cashier re-entered the store BUT the biggest mistakes were made by the employer.

The CCTV system the store had was not being recorded and most of the camera domes did not hold an actual camera. The employee’s (cashiers) had no training of any type in non-violent crisis intervention, risk management or even policy on what to do should they catch someone stealing – much less if they were actually held up or robbed. In the end the thieves got away with however many items they shoved up their shirts and no person was hurt.

Not all shoplifters steal because of poverty or need, instead opportunity and greed rears its ugly head and the monster comes alive.

Retailers suffer millions of dollars in losses every year. And can you believe that shoplifting, coupled with employee theft, is responsible for 34% of all business failures. 34%!

Past loss prevention practices for retailers, particularly small business owners have been to close their eyes and pray that the losses will not happen to them or at the very least be minimal. Traditionally, acceptance of a loss resulting from theft has been acknowledged, by business owners as the “price of doing business”.

The first line of defense and best solution for the small retailer is in education and prevention.

Educate yourself on loss prevention methods.

The key word here is “prevention”. There are a number of ways to stop the theft before it occurs.

Increase your customer service! Acknowledge each customer that comes into your store and pay attention to what they are doing. I’m not suggesting that you stare at them or follow them around suspiciously. Instead, greet them with a friendly hello, give them a few minutes to look around and then approach them and ask if there is anything you can help them find. If they are carrying a few items in their hand, ask them if you can get them a basket or if you can bring the items up to the cash register for their convenience.
If you are going to watch them, be discrete. Watch their hands – after all, any theft that occurs will happen via the hands.

Proper training for yourself and staff in apprehending a shoplifter safely and legally is imperative.

If you have a theft problem, the other stores around you are likely to share this problem and perhaps can also share training costs. If this is not a viable solution due to cost, insurance or liability, you may opt for uniformed guard coverage during peak hours, which can be a good deterrent or you could hire a loss prevention professional who will take care of apprehensions for you.

Should you choose to take the retail monster in hand. There are three things that you need to do to make a clean arrest and avoid the infamous false arrest threat:

1. You must see the suspect take and conceal the item.

2. You must never lose sight of the suspect after you see him take the item. The reason is simple; you need to be sure they still have the item on them when they leave the store.

3. The suspect must leave the store, without making any attempt to pay for the concealed item before you can arrest them.

Making the arrest:

Know that any citizen can make an arrest and that you are required by law to identify yourself, tell the person you are arresting and detaining them and why they are being detained. As an example “I am with store security, you are under arrest for shoplifting. I am holding you until the police arrive.”

And That’s it! You have made an arrest. Practice it in private so that when the time comes, you can say it with confidence.

Once you have the suspect in custody, do not search them yourself, you may ask them to empty their pockets or hand you the item they stole. Do not let the person out of your sight until the police arrive.

The final piece of advice on making the arrest I have to offer you is:

Always turn them over to the police, even if you decide to let them off with a warning. In turning them over to the police, they can not come back later and say that you abused them in any way.

Getting professional advice from a consultant on loss prevention does not need to be expensive to be effective. Some security consultants will do in-store training with all your staff giving you the opportunity to practice your detection, prevention and arrest skills. Shop around and find someone who has your best interest in mind and will provide you with a viable solution at a reasonable price.

Monday April 6, 2009

During my 12+ years at the helm of a private security company I had seen individuals inflict a lot of unnecessary cruelty towards one another – but there are some that stand out as being too close to home… literally!

Can you imagine having your worst nightmare living right beside you? One where the courts would later liken your “described effects typical of civilians caught in a war zone: post-traumatic stress, loss of sleep and appetite, anxiety, phobias, panic attacks, marital strain, depression.” Quoted from the Globe and Mail reporter, Anthony Reinhart in his article “You think you’ve got bad neighbours”.

This particular story is based on a neighbourhood in Toronto, Ontario but I can assure you that this type of violence occurs in every class of neighbourhood in all corners of the world.

So next time you see your neighbour, take a moment and say hello, perhaps pick up his paper or share a candid moment while taking out the garbage. It is the small relationships that we build in our daily lives which give us peace.

Be safe my friends!

Sherry