Shrink in retail, and extra particularly, theft & fraud elements, have lengthy been accepted as a value of doing enterprise. In the previous few years, we’ve got seen each client and affiliate theft & fraud explode. To the purpose the place big-name retailers have closed larger threat shops which were deemed unsustainable, as a result of ranges of loss. 

Some retailers, decided to remain in a selected market have taken the method of putting almost all merchandise behind plexiglass, which leads to a very horrible procuring expertise for customers, which can’t assist flagging income and requires extra workers to open and re-secure shows. In a time the place labor is likely one of the largest points within the business, working in an setting like that can’t assist to draw or retain associates.  

Talking at a retail business occasion not too long ago, I quipped that I must cease referring to Loss Prevention, as a result of it actually doesn’t forestall something. As a substitute, we should always discuss with the standard method as Loss Recording, which evoked chuckles within the room.  

Right now, Loss groups might make investments tens of hours reviewing video in an try to verify a suspicion that one thing nefarious might have occurred – it’s pricey and time consuming, and it has little or no impact on the issue. Lower than 1% of all video recordings are even reviewed, so retailers are paying to retailer all that content material too. Loss groups are usually not proof against the labor challenges both – loss is monitoring exponential development and the workers to research is decreasing, creating an ever-widening hole. 

Lively loss & fraud detection

So how will we transfer from passive loss & fraud recording to energetic loss & fraud detection? Whereas we’ll by no means eradicate loss, we are able to take a chunk out of sure varieties of loss – Integrating SmartCameras operating video analytics with the Level of Sale permits us to make use of AI to evaluation larger threat transactions, akin to returns, voids, refunds, and reward card activations, amongst others, and “search for” suspicious behaviors on the time and placement of the transaction. For instance, flagging these transactions if there isn’t any buyer current in entrance of the counter. May there be instances the place there is probably not a buyer proper there on the time? After all. Nonetheless, if the system can determine the precise second the suspicious transaction occurred and flag that for human evaluation, this enables the loss groups to be more practical and focused with the restricted labor out there. This method can be used to search for different actions, akin to under-scan, by reconciling the variety of objects positioned on the counter or belt with the variety of on the POS T-log to search for discrepancies. 

Whereas most retailers won’t intervene when the theft is being perpetrated by a client, for apparent security causes, the intelligence it gives might permit the retailer to take mitigating actions, akin to limiting self-check use in periods of the day or week, which have proven to have a better loss price, forcing customers to make use of a staffed lane.  

Whereas this won’t forestall all theft and fraud, we are able to begin to reduce the impression in some key areas and guarantee workers is being successfully leveraged – any measurable discount in what’s a $100Bn downside, might considerably transfer the needle on this downside. 

Take a look at our use case on Portfolio Explorer for extra info. 

Share: