Security managers, consultants, and business executives are best able to combat losses when five essential steps are taken: (1) proper identification of the problem, (2) determination of the method by which the losses are occurring, (3) establishment of the reason the thefts are occurring, (4) design of an intervention strategy based on the causes of the theft, and (5) evaluation of the strategy's effectiveness. The first step requires the identification of the type and value of missing merchandise and the employees and customers who have access to that merchandise. A verifiable inventory or accounting system should be created to monitor changes and trends in loss patterns. The most reliable way to determine the method of theft is to hire a private security agent. Another way is to interview employees who have been discharged for theft as well as apprehended shoplifters. Next, the reason that the thefts are occurring must be determined (e.g., for money, or on impulse). The design of the intervention strategy must be based on the caused identified. For employees who steal for economic reasons, the most obvious intervention would be higher pay or improved working conditions. The last step in solving the problems of shoplifting and employee theft is to evaluate the effectiveness of the intervention strategies. The use of objective measures is more desirable than subjective impressions.