Self-Checkout Theft Techniques: Best Ways to Prevent Theft

Self-Checkout Theft Techniques Best Ways to Prevent Theft

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Self-checkout lanes are easy spots for shoplifters! But how can you ensure your self-checkout stations aren’t a target?

We’ve got you covered! We give store owners some sneaky tricks to catch these thieves. This blog dives deep into the best ways to outsmart would-be self-checkout thieves and keep your store secure.

From employee training on self-checkout surveillance, changing store layout, technology updates and remote video monitoring for quick detection and prompt action!

Ready to learn how to protect your self-checkout lanes? Read on!

Let’s start with the basics. 

What are self-checkouts, and why are they used anyway!

Self-checkout stations with payment systems and snack racks in a retail setting.

The original goal of self-checkout was to enhance efficiency by streamlining the checkout process and reducing customer wait times.

However, this has been overshadowed by the challenges of preventing theft.

What is self-checkout theft, and why is it so prominent?

Self-checkout theft thrives on reduced oversight. The decrease in employees monitoring these stations creates gaps in surveillance, which some individuals exploit.

Assisted checkouts (ACOs) or self-service checkouts were initially seen as a solution for managing customer flow in large stores like Walmart, Tesco, and Target. 

Self-checkout theft statistics: 

Illustration of a man sneaking away with stolen grocery bags.

Gregory Irish, a seasoned loss prevention coordinator at a well-known supermarket, notes that shoplifters are seldom caught, with perhaps only 1 in 49 incidents leading to apprehension and merely 50% of those cases resulting in prosecution.

Reduced employee oversight at self-checkout creates an opportunity for theft, as evidenced by a survey showing 15% of users admitted to intentionally stealing.

The reduced employee oversight at self-checkout stations creates a prime opportunity for theft. This issue is underscored by a survey revealing that 15% of users admitted to intentionally stealing.

What strategies are major retailers implementing to combat theft at self-checkouts?

Stores are limiting items allowed in self-checkout to combat theft and accidental mistakes. Some retailers see a decrease in shrink (theft and lost inventory) after scaling back self-checkouts such as :

  • Target: Limits self-checkout to 10 items per transaction in most stores to prevent theft.
  • Walmart: Removes some self-checkouts and restricts them to paid membership holders at certain locations.
  • Dollar General: Offers self-checkout only in stores with lower theft rates, restricting transactions to 5 items or less.

Despite ongoing concerns about theft, a survey reveals self-checkout remains popular with 43% of shoppers.

A report by FMI indicates that customers’ preference for using self-checkout lanes seems to be growing, with usage doubling in the past three years. 

The convenience and speed of self-checkout is a sign that checkout units are not going anywhere in the near future.

Want to protect your self-checkout better! Here’s how you can:

Self-checkout theft prevention techniques:

Woman scanning a product at a supermarket's self-checkout station.

  • Train your employee to spot self-checkout shoplifting.
  • Use advanced technology.
  • Set transaction limits.
  • Conduct random audits at the store exit.
  • Install mirrors.
  • Make designated areas for weighing items.
  • Train attendants in self-checkout surveillance.
  • Change the layout of the self-checkout kiosk.
  • Reduce shoppers frustration.

1. Train your employees to spot self-checkout shoplifting:

Encourage employees to take a moment to inspect suspicious activities visually. Train employees to be aware of body language that might indicate shoplifting intent, such as:

  • Excessive focus on specific areas with high-theft items.
  • Shielding items from view while scanning.
  • Attempting to bypass weight scales or bagging areas.
  • Appearing nervous or agitated at the self-checkout kiosk.

The key lies in discrete intervention. Attendants should observe subtly, maintaining a professional distance and engaging customers casually.

In confirmed theft attempts, they should alert management and handle the situation calmly.

Staff can create a safe shopping environment for honest customers by emphasizing customer service alongside theft prevention while minimizing self-checkout shrinkage through a well-trained and vigilant presence.

2. Use technology: 

Security Cameras:

To effectively track down self-checkout theft techniques, the need of the hour is to move beyond standard definition cameras and invest in high-definition (HD) or even ultra-high definition (UHD) CCTV security cameras.

Consequently, this allows for clearer identification of faces and suspicious activity. Additionally, wider-angle lenses can cover more area with a single camera, significantly reducing blind spots.

Utilize heat-mapping software to analyze customer traffic patterns within the self-checkout area. This can help identify areas with higher self-checkout theft techniques risks and optimize camera placement for better coverage.

Barcode Verification Scanners:

Implement 2D barcode scanners that can read not just standard barcodes but also QR codes and data matrix codes. It detects if a customer tries to use a fake or altered barcode on a high-value item.

Wireless barcode scanner, key for efficient and secure self-checkouts.
Image courtesy of Amazon

Integrate barcode scanners with the store’s product database, enabling real-time verification of product information and pricing. This approach helps reduce the chance of customers manipulating barcodes or entering incorrect product codes.

Weight Scales:

Firstly, invest in high-precision weight scales for self-checkout lanes. These can detect even minor weight discrepancies, making it harder for customers to avoid scanning heavier items.

Implement dynamic weight limits that adjust based on the selected items. This can prevent situations where customers bypass the scale entirely with bulky, unscanned merchandise.

Kiosk Cameras:

Many self-checkout kiosks now come equipped with built-in high-definition cameras specifically focused on the scanning area.

This allows for a clear view of scanned items and customer actions, aiding in promptly detecting self-checkout theft techniques.

3. Set transaction limits:

Close-up of a hand interacting with a self-checkout touchscreen.

There are two ways to set transaction limits at a self-checkout: 

1. Item Limit: Most self-checkout systems can be configured to set a maximum number of items a customer can scan before they must switch to a cashier or split their order.

2. Weight Limit: Some systems can be programmed to limit the total weight of scanned items.

Limits may be adjusted based on the store’s size and how busy it typically gets. For example, a smaller store might have a lower limit than a large supermarket.

You can use designated baskets or dividers to limit the amount of items a customer can physically bring to the self-checkout area.

4. Conduct random audits at the store exit:

The store employee can conduct random audits. Initially, a designated employee stationed near the exit could randomly select customers who used self-checkout and ask them to show their receipts.

The staff member could then visually scan a selection of items or use a handheld scanner to verify the receipt matches the purchased goods.

Furthermore, stores could implement a random selection system where a certain percentage of self-checkout customers are flagged for a quick weight check of their bagged items.

This could involve a dedicated weighing station near the exit or using self-checkout lanes with built-in scales that trigger a random weight verification.

5. Install mirrors: 

Strategically placed mirrors provide employees with a wider view of the self-checkout area, covering potential blind spots created by unattended lanes.

When individuals know they are being monitored through cameras, kiosks, and mirrors, it is a deterrent for “sweepers” (a term used by Emmeline Taylor for well-intentioned shoplifters using all sorts of self-checkout theft techniques).

Mirrors are one of the top security measures for enhancing retail security at self-checkout areas in stores.

6. Designated areas for weighing items:

Clearly designate areas for placing items on the weighing scale. This discourages customers from placing heavier items in bags without scanning them.

Additionally, consider setting weight limits on self-checkout lanes. Exceeding the limit would require assistance from an employee, allowing for a visual inspection of unscanned items.

7. Train attendants for better self- checkout theft techniques surveillance:

To combat theft at self-checkout lanes, attendants need to develop a keen eye for suspicious behavior like excessive browsing, unusual handling of barcodes, or weight discrepancies between scanned items and bagged goods.

Furthermore, an in-depth understanding of kiosk functions is essential, including scanning, bagging, payment options, and troubleshooting common issues.

Additionally, the ability to guide customers through the checkout process and answer their questions effectively is crucial.

8. Change the layout of the store: 

Repetitive and frustrating store designs (like long self-checkout lines) can lead customers to act out. Design adjustments to make the shopping experience smoother tend to reduce negative behaviors.

Self-checkout screen displaying a banana transaction, used in theft prevention.

Image courtesy of ecrloss

A report by Lorraine Gamman and Paul Ekblom proposes that in order to enhance the customer interface for both users and retail owners, big screens with large visual icons should be used instead of just words.

Also, self-checkout units should be placed where customers expect them, typically near the traditional register area.

9. Reduce shopper’s frustration at self-checkout: 

Some shoppers are confused, in a hurry or are just frustrated with the overall self-checkout process which may lead to just walking away with the items!

During a panel discussion on self-checkout at Invenco’s 2024 Retail Technology conference, the owners of big retail chains discussed the best ways the self-checkout experience can be improved.

Here are the highlights: 

  • Cash acceptance is a major factor for kiosk adoption. 
  • Cash jams and malfunctioning machines are common deterrents. 
  • Retailers should train staff on cleaning and maintaining the kiosks.

10. Remote video monitoring: 

Security operations center with agents monitoring real-time retail activity.

Stores can safeguard against theft at checkout, employee theft, and loss with AI-powered remote video monitoring and the help of a leading security operations center.

How it works: 

Setup: Link your security cameras filming point of sales to a live video monitoring center.

Detection: The AI security camera spots checkout anomalies.

Verification: Video alarms highlight suspicious activities and notify the security operations center.

Analysis: The center’s alert operators swiftly verify any discrepancies.

Once they confirm theft, they quickly notify store heads. This system works well at both self-checkout and standard checkout points.

What are different types of self-checkout theft techniques and fraud and how can the store fight back? 

Woman swiping a credit card at a self-checkout, ensuring secure transactions.

The most common types of self-checkout theft techniques across North America are:

The Banana Trick: 

This involves ringing up a more expensive item (like a steak) with the barcode of a cheaper item (like bananas).

The Pass-Around: 

Shoppers may skip scanning some items entirely. They might distract by scanning one item and placing it in the bagging area while hiding another unscanned item in the bag.

The Switcheroo: 

This method involves physically switching the barcode of a cheap item with that of a pricier one. Specifically, it works best with items of similar weight to avoid setting off weight alerts.

Here, we have discussed a few more self checkout theft techniques, but we also have researched some solutions that can help to detect and deter theft!

Theft TechniqueHow stores can fight back 
The Banana Trick (lighter items with heavier items)Configure Point-of-Sale (POS) systems to alert employees if the weight of scanned items doesn’t match the expected weight based on the product database. Thus, this can flag situations where a heavier item’s barcode is used for a lighter item to avoid paying the full price.
Weighing Produce for Different ItemsWeight discrepancies for pre-labelled produce can trigger alerts.
“Forgotten” Items Under BagsStores can create separate designated bagging areas after the weigh scale. This discourages customers from placing items directly on the scale and potentially hiding them under bags.
Choosing Unattended CheckoutsFirst, train employees to strategically patrol self-checkout areas. This increases the chance of catching someone attempting theft in an unattended lane. Additionally, use wide-angle cameras to monitor multiple kiosks and identify unattended stations that might attract theft attempts.
Taking Advantage of Disinterested StaffStaff training emphasizes attention to detail, even at busy times.
Learning Item Weights (for switcheroo)Scales may be calibrated for higher accuracy, reducing opportunities for weight-based scams.
Feigning Ignorance (arguing mistake)Stores have video surveillance and clear signage about checkout procedures. Video evidence can be used to verify scanning activity and counter false claims of mistakes.
Barcode on the watch (scanning hidden code)Scanners may have features to detect fake or tampered barcodes.
Swapping Labels at self-checkout Stores may use tamper-evident labels or require produce to be weighed at designated stations.

Additional self-checkout theft prevention tips:

  • Instead of assigning staff to one area, let them move around and monitor different self-service stations to stay alert.
  • Implement mobile apps that allow customers to scan items throughout their shopping trip, reducing the opportunity for forgotten scans at checkout.
  • For costly items like electronics, customers must use regular cashier checkouts to reduce theft risks.
  • Encourage honest self-checkout use by rewarding frequent users with loyalty points or discounts.
  • Show short videos or images near self-checkouts to remind customers of proper scanning steps and the consequences of theft.

Takeaways:

Self-checkout lanes offer convenience but can also be vulnerable to many innovative theft techniques. Here’s how stores can outsmart would-be shoplifters:

To combat self-checkout theft, stores can:

1. Equip staff to spot suspicious activity.

2. Upgrade technology with HD cameras, 2D scanners, and weight scales.

3. Limit transactions.

4. Conduct random audits.

5. Install mirrors.

6. Designate specific bagging areas.

7. Train attendants for effective surveillance.

8. Improve store layout.

9. Integrate POS data with real-time video monitoring for immediate discrepancy detection.

Contact us today for a customized security solution for your business!

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