Each year, U.S. companies lose billions of dollars to point of sale (POS) fraudulent activity. Fortunately, there are solutions, such as POS exception reporting and video analytics, that can enhance your retail store’s security and decrease loss.
Discover how the effective use of video and data can help identify, monitor and prevent register fraud.
Identify Fraud With POS Integration
Some video surveillance platforms allow for the integration of POS transaction data to track sales and other cashier activities alongside video footage. More advanced systems analyze this data to identify “exceptions” or patterns of activity that may be indicative of theft or errors, such as:
- Cash or product theft.
- Employee codes or password misuse.
- Expired or fake coupon use.
- Invalid gift cards or gift certificates redeemed.
- Refunds without a customer being present.
- Registers opened without cause.
- Unusual voids or returns.
The use of video analytics provides insight into the activity at the POS, allowing you to find and filter specific events and transaction data without having to sift through endless hours of footage. Some ways that video analytics can contribute to your POS monitoring program:
- Identify loitering near unattended registers.
- Provide verification that a customer was present for each transaction.
- Identify products left in or under shopping carts.
- Provide a detailed transaction record to deter check and credit card fraud..
Properly Utilize Data
In addition to identifying and documenting theft, it is common for exception reporting systems to identify opportunities for operational improvement. Examples include:
- Change procedures. Determine if errors are resulting from systems, procedures, equipment, etc. instead of human error. This allows you to fix problems appropriately and assures individuals are not wrongfully accused.
- Discipline employees. If you suspect an employee is stealing or taking part in fraudulent transactions, you can use video footage and data as concrete evidence to discipline those involved. Depending on the situation severity or number of offenses, video footage can also serve as evidence for authorities.
- Fix training programs. Sometimes “fraudulent activity” may be the result of improper training. For example, if new employees do not know how to properly enter coupon codes, this could misrepresent transaction information. Use this as an opportunity to fine tune onboarding and ongoing training.
Take advantage of the capabilities that an integrated POS and video system provides, so that you can catch fraudulent activity before it’s too late.
How does your retail business protect itself from fraudulent activity? Share with us in the comments below.
Image Source: Walmart