Tackling Internal and External Theft in Retail

In my conversations with Loss Prevention Managers, I often hear about the challenges of balancing efforts between internal and external theft. While internal theft happens less frequently, it tends to have a higher average value—especially when it involves false discounting and returns.

To mitigate these risks, do you consider these steps:

Compare Returns and Discounts Across Stores: Analyse data store by store, focusing on returns and discounts in relation to sales. This can help you identify patterns and target stores that might need closer monitoring.

Time and Employee Clustering: Look for trends by clustering data based on time of day or specific employees. This can reveal hotspots where suspicious activity is more likely to occur.

Leverage Your CCTV System: Review footage at POS times where multiple returns or discounts occurred. This visual check can confirm or dispel any suspicions.

AI-Enhanced Monitoring: Take it a step further by installing AI cameras that count the number of people in front of the till during POS refunds or discounts. If the AI shows no customers present during these transactions, the CCTV footage can provide the proof you need.

By implementing these strategies, you can better protect your store and reduce the impact of both internal and external theft.