The Eye in the Sky: Best The Eye in the Sky: Best Practices in Surveillance in a Practices in Surveillance in a Hotel & Casino EnvironmentHotel & Casino Environment

Presented by: Jessie Beaudoin, CPO, CSPPresented by: Jessie Beaudoin, CPO, CSPDirector of Security & Surveillance Director of Security & Surveillance

Downtown Hotel & Casino, Las VegasDowntown Hotel & Casino, Las VegasJune 24, 2014June 24, 2014

Surveillance Mission and Vision Surveillance Mission and Vision StatementsStatements

Mission StatementMission Statement

The Surveillance Department pro-actively protects the assets and profpp-making ability of The Surveillance Department pro-actively protects the assets and profpp-making ability of The corporation. We provide maximum deterrence, rapid detection and immediateThe corporation. We provide maximum deterrence, rapid detection and immediateResponse to: the cheating of our games, theft of our property, harm to our employees Response to: the cheating of our games, theft of our property, harm to our employees and guests, and losses due to inefficiency of operation.and guests, and losses due to inefficiency of operation.

Department Vision StatementDepartment Vision Statement

The Surveillance Department strives to be a vital and respected component in protectingThe Surveillance Department strives to be a vital and respected component in protectingThe assets and profit-making ability of the corporation. We are committed to recruiting The assets and profit-making ability of the corporation. We are committed to recruiting and retaining a highly trained and motivated staff who will establish this department’s and retaining a highly trained and motivated staff who will establish this department’s reputation as an industry leader in minimizing liability, protecting against loss, andreputation as an industry leader in minimizing liability, protecting against loss, andeliminating crime on our property.eliminating crime on our property.

Digital Surveillance RoomDigital Surveillance Room

Security & Surveillance RolesSecurity & Surveillance Roles

GAMING MANAGEMENTGAMING MANAGEMENT

SURVEILLANCESURVEILLANCE

SECURITY & LOSS SECURITY & LOSS PREVENTIONPREVENTION

INVESTIGATIONSINVESTIGATIONS

Surveillance ResponsibilitiesSurveillance Responsibilities

GAMING PROTECTIONGAMING PROTECTIONTABLE GAMESTABLE GAMES

BLACK JACKBLACK JACKCRAPSCRAPSCARIBBEAN STUD POKERCARIBBEAN STUD POKERLET IT RIDELET IT RIDEROULETTEROULETTETABLE GAMES PERSONNELTABLE GAMES PERSONNEL

Gaming ProtectionGaming Protection

SLOT AREASSLOT AREASMACHINESMACHINESCOIN DROPCOIN DROPHARDCOUNTHARDCOUNTCHANGE BOOTHS & ATTENDANTSCHANGE BOOTHS & ATTENDANTSGUESTSGUESTS

Gaming ProtectionGaming Protection

REGULATORY AGENCIESREGULATORY AGENCIES

- - GAMING BOARDS & COMMISSIONSGAMING BOARDS & COMMISSIONSENFORCEMENTENFORCEMENTINVESTIGATIVE INTELLIGENCEINVESTIGATIVE INTELLIGENCETECHNICAL SUPPORTTECHNICAL SUPPORT

FEDERAL LAW ENFORCEMENTFEDERAL LAW ENFORCEMENTLOCAL LAW ENFORCEMENTLOCAL LAW ENFORCEMENT

CRIMES OTHER THAN GAMINGCRIMES OTHER THAN GAMING

Back of the House InvestigationsBack of the House Investigations

COMMON AREASCOMMON AREASPUBLIC ACCESSPUBLIC ACCESS

FRONT DESKFRONT DESKBARS & RESTAURANTSBARS & RESTAURANTSRETAILRETAILGAMINGGAMING

Back of the House InvestigationsBack of the House Investigations

NON - PUBLIC AREASNON - PUBLIC AREASSHIPPING & RECEIVINGSHIPPING & RECEIVINGSTORAGESTORAGEMAIN CAGEMAIN CAGECOUNT ROOMCOUNT ROOMEMPLOYEE BANKEMPLOYEE BANK

Scope of Surveillance System Scope of Surveillance System and Equipmentand Equipment

CAMERA MATRIXCAMERA MATRIX TOTAL CAMERAS- the PTZ vs. FixedTOTAL CAMERAS- the PTZ vs. Fixed COVERT EQUIPMENT (Maxview, spy cam, etc.)COVERT EQUIPMENT (Maxview, spy cam, etc.) RECORDING FORMATRECORDING FORMAT

ONE TO ONEONE TO ONE QUADSQUADS MULTIPLEXEDMULTIPLEXED VIDEO TAPESVIDEO TAPES DIGITAL RECORDINGDIGITAL RECORDING

Surveillance StandardsSurveillance Standards

24 hour continuous video recording of all 24 hour continuous video recording of all games, slots, back of house and financial games, slots, back of house and financial areasareas

All disputes must be reported to All disputes must be reported to surveillance and should be reviewed prior surveillance and should be reviewed prior to resolution or payment is made.to resolution or payment is made.

Maintain a report for recovery of funds Maintain a report for recovery of funds made by the review process and include made by the review process and include error procedure recoveries.error procedure recoveries.

What we deal with in Casinos-What we deal with in Casinos-Casino Security & Surveillance IncidentsCasino Security & Surveillance Incidents

Non-Gaming Incidents (Intoxication, Fights, Non-Gaming Incidents (Intoxication, Fights, Push door thefts, opportunity thefts, Push door thefts, opportunity thefts, employee theft, credit card fraud, identity employee theft, credit card fraud, identity theft, auto burglary, vandalism, soliciting, theft, auto burglary, vandalism, soliciting, etc.)etc.)

Gaming Incidents (Cheating at Gaming, Gaming Incidents (Cheating at Gaming, Counterfeit materials, external/internal theft, Counterfeit materials, external/internal theft, etc.)etc.)

Employee Internal TheftEmployee Internal Theft

Employee TheftEmployee Theft

Statistics show that the biggest and most consistent Statistics show that the biggest and most consistent threat to the profitability of a company are the employees.threat to the profitability of a company are the employees.

The Association Of Certified Fraud Examiners estimates The Association Of Certified Fraud Examiners estimates that almost a trillion dollars is lost to occupational fraud that almost a trillion dollars is lost to occupational fraud and abuse annually.and abuse annually.

The association of Certified Fraud Examiners state that The association of Certified Fraud Examiners state that the average organization loses more than $12 per day the average organization loses more than $12 per day per employee or about 8% of its total annual revenue to per employee or about 8% of its total annual revenue to fraud and abuse committed by its own employees.fraud and abuse committed by its own employees.

For an organization of 3300 employees, that amounts to For an organization of 3300 employees, that amounts to $10,000,000 annually.$10,000,000 annually.

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Costs of Employee TheftCosts of Employee Theft

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The PerpetratorsThe Perpetrators

Who Are They?Who Are They?

Fraud Awareness 16

Fraud Awareness 17

Fraud Awareness 18

Fraud Awareness 19

Fraud Awareness 20

Best Practices in GamingBest Practices in Gaming

Best PracticesBest Practices

Ensure strong policies and procedures in every Ensure strong policies and procedures in every department and they should be updated on a department and they should be updated on a regular basis. regular basis.

Proper inventory of all materials and supplies in Proper inventory of all materials and supplies in every department. When materials or supplies are every department. When materials or supplies are missing, it should be noticed in a timely manner and missing, it should be noticed in a timely manner and reported.reported.

Establish effective communication with outside Establish effective communication with outside departments. They can be your best line of defense.departments. They can be your best line of defense.

With the help of Security, implement routine With the help of Security, implement routine employee bag checks at all exit points.employee bag checks at all exit points.

Best PracticesBest Practices

Implement Internal Theft and Fraud Awareness Implement Internal Theft and Fraud Awareness classes and make them mandatory for all key classes and make them mandatory for all key Management. If possible, make the classes Management. If possible, make the classes specific to each department. specific to each department.

Implement Compliance Training Classes for key Implement Compliance Training Classes for key Management. These will cover subjects like Management. These will cover subjects like conflicts of interest, what constitutes conflicts of interest, what constitutes “corruption”, and illegal gratuities. “corruption”, and illegal gratuities.

Use of an Anonymous Employee Hotline- Use of an Anonymous Employee Hotline- ““Whistleblower Hotline”. Whistleblower Hotline”.

Best PracticesBest Practices

If there is a potential case of employee theft that If there is a potential case of employee theft that can’t be backed up with sufficient video coverage, can’t be backed up with sufficient video coverage, the employee should be interviewed rather then the employee should be interviewed rather then the case dropped and closed. the case dropped and closed.

Send key employees to Interviewing and Send key employees to Interviewing and Interrogation classes.Interrogation classes.

Do random “sting” investigations of employees. Do random “sting” investigations of employees. Examples- Room setups, lost and found set ups, Examples- Room setups, lost and found set ups, secret shopping, etc.secret shopping, etc.

Create employee incentive programs for Create employee incentive programs for information leading to detection of employee theft.information leading to detection of employee theft.

Best PracticesBest Practices Schedule regular Audits of every department. Try to Schedule regular Audits of every department. Try to

audit at least two departments per month. These are audit at least two departments per month. These are very useful to management and helps identify very useful to management and helps identify weaknesses, vulnerabilities, coaching opportunities, etc.weaknesses, vulnerabilities, coaching opportunities, etc.

When necessary, use covert (hidden) cameras in public When necessary, use covert (hidden) cameras in public “shared” work areas without cameras. Ensure not to “shared” work areas without cameras. Ensure not to violate any privacy issues.violate any privacy issues.

Conduct random surprise employee bank audits. Run a Conduct random surprise employee bank audits. Run a check of all sales and ensure the bank doesn’t have a check of all sales and ensure the bank doesn’t have a variance.variance.

Analyze statistical information for red flags (Data-Mining) Analyze statistical information for red flags (Data-Mining) Examples- table game reports, slot reports, cashier Examples- table game reports, slot reports, cashier over/short reports, cost of sale reports, etc.over/short reports, cost of sale reports, etc.

That concludes the That concludes the presentationpresentation

Questions and AnswersQuestions and Answers