Loss prevention is a very real challenge for retailers. Shrinkage is a problem that costs retailers billions of dollars every year due to external theft, internal theft, and administrative errors. Regularly using a Loss Prevention Checklist across your locations ensures compliance with policy, reinforces training, and demonstrates loss prevention is a priority for your business.
Use this sample Loss Prevention Checklist as a guide to minimize theft, fraud, vandalism, waste, and error.
⭐ Checklists
Bonus tipEffective retail and hospitality execution requires certain components, first communication, second task management, and third audits / assessments.
Physical Security
- What was the date of the last LP audit?
- Does location have a key control log for all business keys?
- Location changes locks when a key is lost or stolen?
- The location has a functioning alarm system?
- Each associate has their own alarm code?
- Location does not allow non-associates in the store outside of operating hours?
- Non-associates are not allowed in offices or stock areas?
- Register (POS) keys are kept in a sealed and secured location?
- Associates have individual ID’s and Passcodes to the POS?
- Only Managers/Supervisors can conduct “high risk” transactions on the POS?
- Does the location change passcodes at scheduled intervals?
- Is there a camera covering every POS station?
- How many security cameras are offline or down?
- Does the loading or delivery area have a working camera?
- Are public washrooms monitored and “no merchandise allowed beyond this point” signs in place?
Cash Handling
- Record amount in the cash float?
- Location conducts cash register audits at scheduled intervals?
- Does location have shortages/overages throughout the month?
- There is a shortage/overage log for each register?
- Does a location manager audit paperwork at regular intervals?
- Monthly POS activity of each associate is reviewed?
- Location does not allow phones at the POS or Workstations?
- Shift sales by associate are monitored?
- Location has a camera/recording system over POS?
- Is POS/workstation always within view of staff?
- Are cash drops being done throughout the day as needed?
- What was the date of the last safe check?
- The location has a camera/recording system in the stock area?
Product
- Are high theft items merchandised appropriately?
- Are showcases operational and secured?
- Does every item have a hang tag or barcode?
- Merchandise has a security tag system in place?
- Location conducts regular inventory counts?
- What was the date of the last inventory audit?
- All delivered product is matched to invoice or packing slips?
- Is all damaged or defective product kept in a single location?
- Damage or defective product disposal is tracked and reviewed?
Staff
- Location promotes the business abuse line and open door policy?
- The location has the local non-emergency phone number posted?
- Written policies for loss prevention are present?
- Location has regular discussions on loss prevention?
- What was the date of the last LP training session?
- Location conducts criminal background checks on new associates?
- A written code of conduct is issued to each associate?
- Staff understands the refund policy?
- Are staff voiding their own transactions?
- Staff are restricted from performing self or family purchases?
- Staff greet customers upon entry?
- Do staff understand how to handle damaged or defective products?
OTHER LOSS PREVENTION RESOURCES
Refer to the Loss Prevention category for checklists, how-tos and best practices for loss prevention.

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