What is one of the strongest deterrents to future losses?

• A. Take immediate action against theft and fraud perpetrators
• B. Increase inventory
• C. Conduct annual audits only
• D. Implement more surveillance without action

Answer: (B)

Deterrence comes from continuous, proactive loss-prevention controls that increase detection and accountability. When inventory levels are increased and kept under tight, real-time or frequent counting and reconciliation, every item becomes part of a robust control process. This boosts visibility into stock movement, makes discrepancies quick to spot, and signals that theft or fraud will be detected promptly. The result is a practical and ongoing barrier to future losses because potential perpetrators know there’s a strong chance any disappearance will be found and acted upon.

Other options are more reactive or limited in scope. Taking immediate action against theft after it occurs is important, but it addresses losses after they happen rather than preventing future ones. Conducting audits only annually leaves long periods where issues can go unseen. Adding more surveillance without follow-through or action also falls short, because without proper response, surveillance alone doesn’t deter future incidents.