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By: Terrence Daryl Shulman

I will state up front that my unique background likely accounts for my perspective. As a relatively new consultant in loss prevention, I've also been an attorney since 1992, an addictions therapist since 1997, and a person in recovery from addictions to shoplifting and employee theft since 1990.
Over the last several years, few people I've spoken to in loss prevention honestly feel that shoplifting and employee theft are decreasing over time. Despite increasingly sophisticated security systems and harsher penalties in the courts, often the best we feel we can do is keep pace with these challenges. Fighting theft in America is like fighting a war on drugs or cancer-a new addict, cancer cell, and "thief" is born every minute. I'm not implying that we shouldn't take the actions we're taking...sound security, terminations of employment, and prosecutions have their place...however, any strategies that over-simplify the nature and causes of shoplifting and employee theft are bound to fail. After all, based on the National Association on Shoplifting Prevention (NASP), 69 percent of shoplifters who are prosecuted will repeat this offense. I don't have the statistics, but will venture a guess that it's much the same with employee theft. Deterrence and punishment have limited impact.
Statistics from the NASP reveal that one out of eleven or 25 million people in America shoplift, costing about $10 billion per year. It is tempting to treat all people who steal alike. Theft is typically viewed as merely a legal or a moral issue, as in "thou shall not steal." But NASP statistics also reveal there is no typical profile of a shoplifter-that men and women shoplift about equally, 75 percent of shoplifters are adults, and the vast majority of shoplifters shoplift not out of economic need or greed, but in response to personal and social pressures in their lives. It's not about the money or the thing...the Winona Ryder case proved that. Most shoplifters steal out of feelings of anger, loss, disempowerment, and entitlement. And many become addicted. This kind of stealing is beyond the rare condition of kleptomania, which is an impulse control disorder that affects six out of 1,000 Americans, mostly women from age 20 and up and is the only officially recognized diagnosis for stealing as a mental health issue. There is an epidemic.
Statistics from the American Society of Employers claim that 20 percent of every dollar earned by an American company is lost to some form of employee theft, which includes embezzlement, loss of merchandise, fudged time cards, padded expense accounts, personal errands on company time, personal phone calls, and pilfered office supplies. Just in the retail industry, $25 billion is lost each year. Internal loss trumps external loss by more than two-to-one.
Further figures state that 55 percent of employee theft occurs among managers and supervisors. Some of the most loyal employees have been found to bite the hand that feeds them. And the average time it takes to discover a scheme is eighteen months-plenty of time to develop a habit or etch a character trait.
 
As with shoplifting, employee theft is not usually about the money or the items stolen. There's an old theory that may not be far off the mark: one third of employees will never steal no matter what; one third will always steal no matter what; and the remaining one third is on the fence. Given the right circumstances or pressures, they could turn. So, potentially, two-thirds of employees may engage in some form of employee theft.
Recent corporate scandals and simple greed aside, is it impossible to imagine that other factors and motivations are at play for stealing from work? There's less overall job security...thus, less loyalty....not to mention continuous pressure to work harder for less compensation in a climate of mistrust, lack of appreciation, even harassment. "They owe me," is a frequent rationalization for theft from the workplace.  Many employees don't even think of theft from work as stealing.
Why Should LP Care?
So why should loss prevention be concerned about why people steal?  I believe we need to play more than just "cat and mouse." Though we may at times feel powerless and fear change, we need to look at systemic causes and think outside the box.
First, we must recognize that theft is more than just a legal or moral issue. What if...while never condoning theft...we encouraged more education, prevention, and options for rehabilitation? It's easy to leave this to the courts, therapists, community activists, and even legislators. Part of the problem is there are limited treatment options. In the United States, there are only about ten Shoplifters Anonymous meetings. Courts offer very limited theft education courses, many of which rely on the standard-but-not-so-effective "scare and shame" approach. This is where the focus is on emphasizing how stealing will lead you to jail, how you can't outsmart security, and how your behavior makes prices go up for everyone. This approach is about as effective as the "just say no" approach to drugs. I have found people are much more receptive to trying to understand why they do what they do, how it's really affecting them, what their options are for coping with difficult emotions and circumstances, and how to refocus on positive goals.
I feel stores need to be more involved, not less involved in new solutions. Consider the following analogies. Liquor stores, bars, and restaurants have to some degree stepped up their efforts at preventing underage and excessive drinking. Casinos post 800 phone numbers for Gamblers Anonymous, offer  literature on problem gambling, and often contribute money in a fund to treat problem gamblers. Even fast food restaurants are posting nutritional facts on their menus, pulling certain items, and downsizing from super-sized portions.
In each of these examples, those who are in the business of making money have also accepted that a significant percentage of their customers are vulnerable to addiction and other negative consequences. A caring company is a progressive company and, hopefully, a more profitable one. Nobody thinks these strategies have solved every problem, but few would argue they haven't helped at all. Hardly a person exists who hasn't known an addict whose life was saved because real help was available.
Even the mental health profession has taken its time to recognize shoplifting and stealing as both widespread and treatable issues. On most basic assessment screening forms there are questions about alcohol, drugs, nicotine, caffeine, eating disorders, gambling, and sex. Only if a client is asked, "Do you have a shoplifting or theft problem, addiction, or disorder?" may the therapist and the client first be able to recognize this as a vital and treatable issue. Even those most educated on criminal behavior and addiction have missed the boat.
Seven Types of People Who Shoplift
In counseling and listening to thousands of people who have stolen, I theorize that there are primarily seven types of people who shoplift. These categories may also be used in a similar way to describe the breakdown of those who commit employee theft.
The Professional Thief-Those who are either plain opportunists or who work individually or in rings to shoplift goods and then sell or "boost" them for profit. It's a job to them, whether part- or full-time. Most "pro's" are unlikely to benefit from therapy. I estimate this group accounts for 5 to 10 percent of all the people who shoplift, though they make a disproportionate impact on losses because when they hit, they hit hard and repeatedly.
The Drug or Gambling Addict-Those who are shoplifting to support an underlying addiction by stealing to save money to use or pay off debts associated with using or who "boost" stolen goods to do the same. These  persons need treatment for the underlying addiction first, but may have picked up a theft addiction along the way. I estimate this group accounts for another 5 to 10 percent of shoplifters.
The Impoverished-Those who perceive that they need to shoplift/steal to survive. During tough times, it is tempting to put morality on a shelf; people get desperate. Many people become impoverished after a loss of a job, a divorce, an illness, or a death of a loved one. I estimate this group accounts for 5 to 10 percent of shoplifters.
The Thrill Seekers-Mostly younger persons who steal as a dare or due to peer pressure, these people are mostly drawn to various risk-taking behaviors and must be worked with to explore why this has developed and how there are healthier and more affirming ways to "live on the edge." This group accounts for approximately 5 percent of shoplifters.
The Absent-minded-Mostly older persons and/or those on medications, with cognitive disorders, and who need to slow down their pace. While accidents do happen...but tell that one to the judge...we're living in an age of zero tolerance for shoplifting. I know people who were prosecuted for sampling grapes. I estimate that this group accounts for only 1 percent of shoplifters.
The Kleptomaniac-Those who shoplift impulsively, with no planning, and who steal, not out of anger, but whose stealing is used to calm self when anxiety begins to creep up. Things shoplifted are usually discarded, hoarded, or are not even needed. Treatment is usually with medication and cognitive-behavioral therapy. I believe this group accounts for just 1 percent of shoplifters.
The Addictive-Compulsive-Those who may get a rush from stealing, but the stealing is actually some form of a "cry for help," the acting out of emotions, the ritual effort to distract oneself from pain or anger, or a misguided effort to make life right. The stealing itself becomes the drug. Medication and therapy are often essential, but so, too, is applying ongoing recovery principles and support. Most shoplifters keep their behavior a secret and wouldn't know where to find other recovering shoplifters to talk to. Thus, their shame remains intense and recycled, and the stealing continues. I estimate this group accounts for the vast majority of shoplifters, some 70 to 75 percent.
The Underlying Motivation for Theft
I've found there are ten primary emotional and psychological motivations related to theft that can be addressed and resolved.
- Anger-to try to take back; to make life fair
- Grief-to fill the void due to a loss
- Depression-to distract from sadness; to get a lift
- Anxiety-to calm fears; to comfort
- Acceptance/Competition-to fit in
- Power and Control-to counteract feeling lost or powerless
- Boredom/Excitement-to live life on the edge
- Shame/Low Self-Esteem-to punish oneself or to feel good at something even if it is bad; to give reason for self-loathing

- Entitlement/Reward-to compensate oneself for over-giving
- Rebellion/Initiation-to break into one's authentic identity by refusing to follow the norms of the family or society.
Many in loss prevention may not care why people shoplift and steal and think these are merely excuses. But I have seen countless people who either didn't know they had a problem...as hard as that seems to believe...and those who knew they did and wanted to stop, but didn't know how or where to go for help. I think we have to make this part of our business.
Understanding Leads to New Solutions
It's vital that we know how shoplifters and people who steal from work think. Shoplifters often hit stores where they encounter poor customer service, including rudeness and long lines, and often feel as if stores are tempting them with product placement. Stores may do well to employ a human presence at the entrance/exit, offer "freebies" within the store, and rethink keeping small and expensive items unattended and vulnerable to theft. And what good are the most sophisticated loss prevention systems if the personnel are understaffed, underpaid, and overworked?
False accusation, false detainment, following customers, and physical and emotional roughness have been frequent complaints of those innocent of shoplifting as well as those who are not. The last thing we want to do is make angry people more angry. What if stores were to give every suspected shoplifter, whether turned over to the police or not, a handout with a phone number or web site for help? At least some percentage of those apprehended will follow-up on this for their own good.
 
Employee theft presents similar challenges and opportunities. I was a therapist at a counseling clinic for seven years and its director for two. Even in the "touchy feely" world of that profession, the corporate climate could be like a toxic fish tank. Many employees in all jobs come to work with emotional wounds and issues and will play out their family dramas, dysfunctions, and authority issues in the workplace. The stresses of the job itself, or stresses in their personal lives, are rarely dealt with effectively by even the most progressive human resources departments.
What if regular periodic meetings were held, facilitated by a neutral, outside, skilled consultant, to air grievances, offer apologies, and express compliments and gratitude to "keep the tank clean?" What if confidential counseling was available for those who knew they had a theft problem? I spoke with a loss prevention person at Cracker Barrel Restaurants recently who told me of their company policy that was instituted a few years ago of putting good and valuable employees who were caught stealing from the workplace on probation and into counseling. While the longer-term results of this are not yet in, it is at least progressive thinking.
Currently, most companies simply fire an employee who steals. In this case, they not only lose a person who may not be easily replaced, but also lose a chance to rehabilitate someone who likely will just go to another company to steal because of the increasing reluctance of all companies to offer any prior work references. We're living in an age of "passing the buck" and "it's not my problem anymore." But we all live in the same world.
 
We need to have more research into the shoplifting and employee theft epidemics in America. There is no vaccine. We need more than a slap on the wrist, a stint in jail, or a lecture by a wagging finger. What will we do in terms of education, prevention, and rehabilitation?
As with any epidemic, the longer we wait, the more we all suffer. My hope is with more open conversation and more resources available, we will see a transformation in the awareness of how we view theft behaviors. Then, and only then, will we be able to develop true loss prevention strategies and attain a more honest society and world.
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TERRENCE DARYL SHULMAN, JD, MSW, CSW,A CSW, CAC, CPC is a consultant, therapist, attorney, and professional coach in the Detroit area. He founded Cleptomaniacs And Shoplifters Anonymous (C.A.S.A.) in 1992. Shulman published "Something for Nothing: Shoplifting Addiction and Recovery" in 2004 and "Biting the Hand That Feeds:The Employee Theft Epidemic" in 2005. He was featured on the Oprah Winfrey Show in September 2004. Shulman is co-organizing and co-presenting at the First International Symposium on Theft Addictions and Disorders September 30-October 2, 2005 in Detroit. He has several web sites, including www.shopliftersanonymous.com, www.employeetheftsolutions.com, and www.theshulmancenter.com.  He may be reached at 248-358-8508 or by email at info@shopliftersanonymous.com.