In my opinion it does the opposite of helping. The child doesn't think "Oh, next time I better not do what I did, or I will lose my stuff." Rather, the thought process goes like this, "Next time I better not get caught, or I will lose my stuff." It doesn't teach children to stop the behavior, just to do it so they don't get caught. Plus taking their stuff away just pisses them off and they will try and get it back.