Long-Term Video Hosting Helps Retailers Reduce Losses
New York, March 15, 2016 – Retailers often suffer heavy financial loss 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 US 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 US, followed by shoplifting. 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, however, has several drawbacks. 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 three to 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 review months or even years of CCTV footage
- Being able to deal with lawsuits after regular saved footage would have 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 and monitoring of all locations
“Since we launched this innovative solution, we have witnessed growing interest by large retail chains,” said says Elazar Hertz Van Spiegel, founder and CEO of IL Solutions.
“By storing CCTV data for a year, 90% of the storage problems arising in loss prevention investigations can be eliminated. Moreover, just by publicizing to employees and customers that the data is kept in the cloud for a long period will lower fraud attempts.”