What Are the 5 Steps of Theft in Retail Loss Prevention?

The 5 steps of theft in retail security are a method used by professional guards across Canada to identify shoplifters and take action to prevent theft. In the field of loss prevention, it’s important for security personnel to follow procedures that enable safe, lawful apprehensions and evidence for court. The five steps of theft are a protocol to ensure guards fulfill these requirements in accordance with Section 322 of the Criminal Code of Canada.

If you’re a retail security guard, an LPO, or if you’re interested in learning more about loss prevention, this blog is for you. At Blackbird Security, we have 10 years of experience in Canada’s retail security industry. Today, we’ll break down the five steps retail security guards follow to apprehend subjects. 

Why the 5 Steps of Theft Matter in Retail Loss Prevention 

When a retail theft case goes to court, the prosecution will collect all of the facts surrounding the incident. The five steps are a method to ensure that apprehensions are conducted lawfully, the evidence is admissible in court, and to reduce liability for retailers and security guards. 

Key to the five steps of theft is Section 322 of the Criminal Code of Canada, which states, “Every one commits theft who fraudulently and without colour of right takes, or fraudulently and without colour of right converts to his use or to the use of another person, anything, whether animate or inanimate, with intent”. Security guards must ensure the subject is in violation of Section 322 prior to making an apprehension.

The 5 Steps of Theft

Watch the video we made with Mike, our Ontario Field Training Manager, explaining the five steps below.

1. Selection

Selection is one of the most important steps in the process. It involves:

1. Observing the subject

2. Seeing the subject select an item.

3. Watching them pick up or remove the item.

Importantly, not every individual carrying an item is a subject. Shoppers sometimes enter stores with items they’ve purchased previously to find a match or a similar item to the one they’re carrying to make an exchange. That’s why it’s critical to observe the subject's selection of the item.

2. Concealment

Concealment is the act of hiding or attempting to hide unpaid merchandise. Guards look for individuals who:

1. Select an item.

2. Take the item with them.

3. Conceal the item.

Concealment may look like the individual putting the item in a pocket, inside their jacket, or in a personal bag or backpack. Any action that conceals the item from public view is considered concealment. 

3. Continuous Observation

Another highly important step is continuous observation, AKA continuity. Once a guard has witnessed the selection followed by concealment, the guard will continue to observe the subject. This is important to ensure the subject doesn't either abandon the item or actually own it legitimately.

If, through observation, neither of these is found to be the case, the guard can move to step four.

4. Passing the Point of Sale

Passing the point of sale means the subject fails to pay for the item they’re carrying and bypasses the cashier or cash desk. Once the guard verifies that the subject is in possession of the item, the guard will continue observation until the individual passes the point of sale without payment.

5. Attempting to Leave Store

The final step is for the subject to leave the store. It’s important that guards only approach subjects as they’re leaving the store, which is a clear indication of intent to steal. If a guard approaches the subject at any of the previous steps, they can challenge the guard by saying they haven’t completed their shopping or that they’re waiting for someone else to come and pay for the item. For this reason, it’s important to follow all five steps in sequence.

Why Missing Even One Step Can Invalidate a Stop

The five steps provide consistency and reduce the likelihood of legal consequences for the guard or retailer, such as the shoplifter’s case being dismissed, the store or security company being held liable, or the guard facing an unsafe interaction. These are the reasons why training is such an important element in security.

How Loss Prevention Services Support Retailers

Professional loss prevention services provide retailers with a level of protection that store staff can’t. Top-level security companies provide advanced training to their security personnel, including undercover LPOs. Through comprehensive training, guards learn key procedures that ensure every incident is handled safely and lawfully. 

The expertise of well-trained retail security guards reduces shrinkage, prevents unsafe interactions between staff, customers, and shoplifters, and strengthens a retailer’s public perception. Relying on security professionals who understand the five steps of theft and how to execute them correctly gives retailers a proactive, dependable way to deter and respond to theft while protecting employees and legitimate customers. 

The Blackbird Difference: Retail Security Training

At Blackbird Security, we train our guards through our industry-leading security training program, Blackbird Academy. Through the program, our guards learn skills, procedures, and techniques to prevent theft and create safe retail environments, including the five steps, peaceful de-escalation practices, reporting, and customer service skills. 

Partner With Blackbird Security for Loss Prevention

We’re proud to service retailers of all sizes from coast to coast, including Canadian Tire, MEC, Sephora, and many more. Our guards receive comprehensive training from industry experts to deliver a premium level of service for our clients. With a focus on customer care, detailed reporting, and safe, lawful apprehensions, our team helps reduce shrink and support your in-store staff.

Want to learn more about this area? Check out our retail security and loss prevention guide, or explore our full suite of retail security services.