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AIs Have Eyes on Impulse Buys: How Tech is Targeting Retail Theft

By Vaidehi Mehta, Esq. | Last updated on

Flash mobs have been a silly and generally harmless trend since the early aughts, but their criminal cousin, flash robs, are not nearly as fun for everyone. A flash rob is a type of organized crime where a group of people enter a store and steal as many items as possible before leaving. Flash robs are also known as flash mob robberies, smash-and-grab robberies, or multiple offender crimes.

Some cities, such as LA, have been hit particularly hard, with malls being cleaned out of up to $300,000 within minutes. Crime waves are estimated to cost the state of California about $19 billion a year. Authorities say that the criminal trend is not unique to California, however, and project that it will cost the country $30 billion a year if measures are not taken.

Shoplifting is nothing new, of course, but anti-shoplifting technology is something that's been evolving. Retail stores have been trying newer anti-theft measures to mitigate loss.

Types of Anti-Theft Devices

Here are some of the most common, more traditional measures that stores will turn to for loss prevention.

  • Security guards. These may seem self-explanatory, but they're important to distinguish from other law enforcement. Know your rights — read our article or watch our video on security guards to understand what they can and can't do.
  • Locked display cases. These prevent theft by acting as a physical barrier, increasing visibility, and controlling access. This combination deters impulsive theft, protects high-value items, and improves inventory control. Some of these cases even have alarms that are triggered if the glass is broken, if pressure is applied, or a certain motions are made.
  • Security tags & EAS Systems. Electronic Article Surveillance (EAS) tags are small tags attached to merchandise that trigger an alarm when they pass through an antenna at the store exit. The tags are deactivated when the item is purchased.
  • Cameras. Stores use cameras to deter theft by making potential shoplifters aware they are being recorded, detecting suspicious behavior, identifying individuals, and providing evidence in court.
  • Mirrors. Stores strategically place mirrors to eliminate blind spots, allowing staff to observe suspicious behavior and deter shoplifters. This increased awareness is further enhanced by large mirrors reflecting the entire store, making customers feel more self-conscious and accountable for their actions. Mirrors are particularly effective when combined with other security measures like cameras, guards, and EAS tags, creating a multi-layered defense that makes it more difficult for thieves to succeed.
  • Store layout. Stores can use layout to prevent theft by controlling traffic flow, keeping valuable items in highly visible areas, and maximizing sightlines throughout the store. This can be achieved by using open floor plans, limiting exits, and strategically placing security cameras and mirrors. Additionally, clear signage, bright lighting, and organized shelves can further deter potential shoplifters.
  • Alarms and sensors. Sensors can be placed on shelves, display cases, or other areas to detect when merchandise is removed without authorization. These will often trigger an alarm or at least alert security. Remember that alarms are silent in many cases, but will still notify security even if you can't hear them make a sound.
  • RFID tags (radio frequency identification tags). This technology uses radio waves to identify people or objects. RFID tags can include cryptographic security features for verification and authentication. These systems can be used to prevent theft in retail environments when an item is passed near a detector, as it triggers an alarm and alerts store staff.

AI Bumps Security Up a Notch

In addition to those relatively older methods of preventing retail theft, it probably won't surprise you that AI is now being used in retail stores to fight against organized retail crime (ORC). While these technologies are effective, retailers may need to balance security with customer experience.

AI can improve the security of existing systems, such as RFID systems. AI algorithms can analyze data from RFID tags to provide more accurate data reads and perfect RFID systems. AI-powered cameras can detect suspicious activity and alert security, while facial recognition software can identify repeat offenders. Facial recognition cameras can help prevent shoplifting by identifying known shoplifters, deterring potential shoplifters, investigating shoplifting incidents, and reducing false alarms. However, their use is controversial due to privacy and the potential for discrimination.

Other AI-powered security stores are beginning to implement include license plate readers (LPR), also known as automatic number-plate recognition (ANPR) systems. This is a technology that uses optical character recognition (OCR) to capture and read vehicle license plates from images or videos.

AI algorithms are now being used to predict criminal behavior and alert security systems to it. Cameras fit with the new technology look for certain signs of criminal behavior, such as people gathered in certain areas, someone's hand reaching for an item, and even the direction in which a shopper is looking. Store security can be alerted if enough of these flags go off, unbeknownst to the customer.

Some stores will tailor their electronic article surveillance to specific types of items. For example, Project Unlock is a Lowe's Innovation Labs project that uses RFID chips and IoT sensors to prevent theft. When a customer purchases a power tool at checkout and the product's barcode is scanned, the RFID scanner finds the tool with the correct serial number, and a secret key value is written that activates the tool. Project Unlock creates a secure, anonymous record of legitimate purchases. This record is powered by blockchain and can be viewed by anyone. Lowe's is initially deploying Project Unlock in its power tool stores to provide proof of concept. However, the company has said it sees potential to use the system for other items in its stores and across the retail ecosystem.

Other big companies that are hiring tech companies to implement AI into their stores to prevent stolen items include Walmart, Kroger, Target, Macy's, and CVS.

Takeaways

The bottom line for stores and store employees is that while there are many options to up retail security and prevent stolen merchandise, while they are worth looking into, you should keep in mind how they may affect the customer experience. The takeaway for shoppers is that you probably aren't as savvy of a shoplifter as you think. Stores will have many types of theft prevention methods in place that might not be obvious to you. You might really want those Bose earbuds for your Secret Santa present, but it's best not to sneak it into your purse, lest you end up getting a misdemeanor for Christmas this year.

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