Every year and arising, retailers suffer heavy financial losses due to fraud, otherwise known as “retail shrinkage”. The primary reasons for this include dishonest workers and suppliers, shoplifting, and administrative errors.
According to the Global Retail Theft Barometer, retail shrinkage rose in the U.S. from 1.28 percent of sales in 2013-2014 to 1.97% in 2014-2015. When the retailer passes on those losses to their customers in the form of higher prices, it averages out as an extra $615 per household, per year.
“Employee theft is the biggest cause of retail shrinkage in the U.S., followed by shoplifting,” says Elazar Hertz Van Spiegel, Founder and CEO of IL Solution. “In an attempt to reverse this worsening problem, retailers are turning to various solutions. The most popular option, used by 83% of retailers, is closed-circuit television (CCTV).”
Using CCTV’s, however, has its own problems. One of the main ones is that in most cases, data obtained by surveillance cameras is kept for very short periods of time, typically only between 3-14 days. This means that retailers are not able to view older footage. So for example, if an employee is caught stealing, it would make it impossible for the retailer to check if it was a one-off event or a serial crime.
There are many advantages to this service, including:
- The ability to go back and review months, or even years, of CCTV footage.
- Being able to deal with lawsuits after regular saved footage has long been written over.
- Avoid the possibility of company employees tampering with security footage.
- Remote access to the footage, from any location.
- Real time viewing & monitoring of all locations.
“Since we have launched this innovative solution we have witnessed growing interest by large retail chains,” said Hertz Van Spiegel. “By storing CCTV data for one year, 90% of the storage problems arising in loss prevention investigations can be eliminated. Moreover, just by making it public to employees and customers that the data is kept in the cloud for long a period will lower fraud attempts.”