Continuous monitoring for retail loss prevention provides the insights you need to protect your retail revenue and keep fraudsters at bay.
According to the 2020 National Retail Security survey, shrinkage is at an all-time high. Seven out of 10 retailers report a shrink rate of more than 1%. On average, losses from shrinkage equate to 1.62% of the bottom line.
In a normal year, the National Retail Federation estimates merchandise returns will cost the retail industry 16.6% of annual revenue. And 10.3% of these returns are likely the result of fraudulent activity.*
*Customer Returns in the Retail Industry 2021 by NRF, released January 2022.
That means for every $1 billon of annual revenue earned, retailers lose over $17 million on fraudulent returns.
Real-time analytics is key to limiting losses in the complex and fast-moving shopping environment. Increasing cross-channel purchases and vast amounts of data can make finding hidden patterns seem impossible.
Check out this white paper on combating fraud, waste and abuse at the point of sale.
Point of sale fraud is a growing problem for retail loss prevention teams. Continuous monitoring can provide the insight you need to protect your business and keep fraudsters at bay.
Examples of Vulnerabilities at the Point of Sale
Returns
Fraud
Returns fraud covers a broad range of fraudulent activities committed by dishonest employees – alone or in collusion with dishonest customers.
Loyalty Card
Fraud
As loyalty schemes have become more widespread in the retail industry, fraudsters have begun targeting loyalty cards as a relatively unprotected and easily exploited attack vector.
Misuse of Employee Benefits
Retail employees often enjoy the perk of reduced prices, but unscrupulous employees may give others access to their discounts, become part of criminal fraud rings and collude in more serious types of fraud over time.
Gift Card
Fraud
Gift cards are anonymous, easy to trade and work across retail channels – online and in-store. The combination of these makes gift cards a perfect target for fraud.
Fraudulent behavior affects retail supply chains from many different directions. Uncover procurement risks earlier than ever. Prevent financial losses. Protect your reputation.
Retail Analytics
Find out how SAS retail analytics can help you optimize all aspects of your retail business and enhance your customer experience.
Identity & Digital Fraud Analytics
Continuous protection across the customer journey – from application, to authentication, to account management.
Want to learn more?
Fill out this form and someone will be in touch with you soon to help your team protect revenue and reduce fraudulent activity.