POS Theft Prevention Strategies for Stores with Self-Checkout
Self-checkout (SCO) systems are a prime target for both internal and external theft, including skip-scanning, barcode switching, refund fraud, and collusion. Here’s a tailored strategy to combat theft in stores with self-checkouts:
- Prevent Skip-Scanning & Barcode Switching
🔹 Use AI-Powered Computer Vision & Weight Sensors
- Install AI-driven cameras to detect non-scanned items moving past the scanner.
- Use weight verification systems that compare scanned items with expected weight.
- Flag transactions where an item is repeatedly placed in the bagging area without scanning.
🔹 Block Known Barcode-Switching Tactics
- Program POS to flag high-risk items (e.g., expensive electronics, meat, alcohol) for verification.
- Install tamper-resistant barcode labels to prevent barcode swapping.
- Require random manual barcode checks by attendants for high-risk items.
🔹 Force Item Rescanning for High-Risk Products
- Flag frequent “item not recognized” errors for manual review.
- Require employee verification for multiple low-cost items in a high-value category (e.g., scanning bananas but bagging steaks).
- Combat External Theft (Shoplifting via Self-Checkout)
🔹 Randomized Receipt & Bag Checks at Exits
- Implement AI-based receipt scanning at exits.
- Conduct random bag audits by employees for transactions over a certain amount.
🔹 Limit the Number of Items Per SCO Transaction
- Restrict self-checkout use for high-ticket or bulk purchases.
- Require attendant approval for transactions exceeding a set dollar amount.
🔹 Use Security Gates & Exit Controls
- Install turnstiles or controlled exits that require a valid receipt to open.
- Position cameras directly above self-checkout lanes with real-time monitoring.
- Prevent Employee-Assisted Theft & Collusion
🔹 Monitor Attendants for SCO Fraud
- Use POS analytics like Appriss to flag employees approving excessive overrides or voids.
- Rotate SCO attendants to prevent collusion with repeat offenders.
- Enforce attendant login tracking, ensuring only authorized staff process approvals.
🔹 Limit Manual Interventions
- Require biometric verification for employees performing refunds or price overrides.
- Disable manual weight overrides unless a supervisor approves.
🔹 Use Mystery Shopping to Test Compliance
- Regularly test attendants for compliance with intervention policies.
- Deploy mystery shoppers to attempt common SCO theft tactics (e.g., barcode switching, fake scans) to evaluate security effectiveness.
- Strengthen Refund & Payment Fraud Controls
🔹 Restrict Refunds at Self-Checkout
- Disable cash refunds at self-checkout, requiring refunds at manned registers only.
- Use ID verification for returns to prevent fraudulent refunds.
🔹 Detect Fake & Declined Payment Schemes
- Flag “walk-away” transactions where customers leave without completing payment.
- Set up alerts for multiple failed payment attempts to catch fraudsters testing stolen credit cards.
- Leverage AI & Real-Time Monitoring
🔹 Implement AI-Driven Theft Detection
- Use AI systems like Everseen or StopLift to analyze customer scanning behavior and flag potential theft.
- Enable real-time alerts when customers fail to scan or quickly move items without scanning.
🔹 Monitor Frequent Offenders & Suspicious Behavior
- Track repeat customers with high void rates or suspicious transactions.
- Share known shoplifter data across store locations for repeat offender tracking.
- Train Staff & Encourage Anonymous Reporting
🔹 Educate Employees on SCO Theft Tactics
- Train attendants on common theft methods and how to spot them like “skip scanning” or scans a bar code of an item of similar weight and then places a more expensive, similarly weighted item in the bag to avoid detection by the scales under the bagging area.
- Reward employees for catching fraudulent activity.
🔹 Implement an Anonymous Theft Reporting System
- Allow employees to report suspicious activity anonymously.
- Provide cashier incentives for identifying repeat offenders.
By combining AI-driven detection, employee training, and strict refund/payment controls, self-checkout theft can be significantly reduced.
About The Integritus Group
The Integritus Group, a subsidiary of SEMM Holdings, specializes in delivering comprehensive loss prevention services and solutions tailored for retailers across various sectors. Our team is dedicated to enhancing existing loss prevention programs or developing new strategies from the ground up, providing expert guidance and proven methodologies to help clients meet their objectives.
Our offerings grant access to seasoned professionals and leverage collective knowledge of our extensive client network. Retailers rely on us to fortify their loss prevention initiatives with customized strategies and industry-leading practices. With decades of experience, our leadership team is also equipped to assist you in selecting the right vendor technology partners, having collaborated with and evaluated most of them.
For more information, please visit our website or reach out for a consultation. In addition to this white paper, SEMM Holdings provides a wealth of industry insights, including research and articles on retail trends, best practices in loss prevention, and outsourcing strategies.