Preventing self checkout theft with modern security systems

How does self checkout theft happen?

Self checkout thefts occur when a person with malicious intent attempts to pay less for an item, or avoid payment entirely by taking advantage of self checkout technologies. Theft at self checkouts can take many forms, including brazen attempts to hide items from sensors and cameras, as well as efforts to swap payment identifiers between costly and cheap items.

One of the biggest issues surrounding self checkout theft concerns organized criminals and average shoppers having been known to unlawfully manipulate such systems. Retailers run the risk of customers viewing self checkout theft as a less serious crime, in part due to a lack of human oversight, with 20% of customers happy to admit to stealing at self checkouts.

Common self checkout theft techniques

While self checkout theft can be broadly defined as any attempt to avoid paying for an item at a checkout terminal, offenders often use unique methods to get away with theft. 

Common self-checkout theft techniques include:

• The pass-around: This tactic involves moving an item to the bagging area without scanning it. While many self checkouts use sensor systems to deter pass-around offenses, criminals have found ways to circumvent them, commonly by placing two items in the bagging area simultaneously to trick the system into reading one value.
• The ​‘banana trick’: Many self checkouts use scales to discern the value of produce with large variances in weight. Offenders often take advantage of this by performing the ​‘banana trick’, a type of self checkout theft where expensive items are scanned under the sales codes of cheaper ones, for example, scanning a steak as a banana.
• Barcode swapping: This variation of self checkout shoplifting involves replacing the barcode of an expensive item with one removed from a cheaper one. While cameras covering self checkouts can help tackle barcode swapping, savvy shoplifters often target products with similar dimensions to hide their theft.
• Payment fraud: Store managers may be well-acquainted with payment fraud, as this type of self checkout theft is also leveraged against traditional checkouts. Offenders use stolen or false payment information to ​‘pay’ for goods, only for those sales to be refunded or canceled later. Self checkout payment fraud, however, is arguably more difficult to spot as there’s usually no staff present to manually check each transaction.

Shoplifting at self checkouts continues to be a serious problem for retailers of all sizes, with well-known stores like Walmart, Target and Dollar General all introducing measures to curb self checkout theft. One recently published study suggests self checkout theft is a significant driver of shrinkage, accounting for losses equal to around 3.5% of total sales.

All in all, food retailers are thought to lose more than $10 billion per year to shoplifting at self checkouts, representing a significant loss in profitability. However, preventing self checkout theft reliably can be challenging, especially for stores reliant on traditional security solutions.

Challenges with traditional store security systems

While traditional retail security systems containing components like security cameras, Electronic Article Surveillance (EAS) devices, sensors and alarms can help to combat some loss prevention risks, they’re not specifically attuned to address stealing from self checkouts.

Shoplifters who engage in self checkout theft leverage techniques and strategies unique to this type of Point of Sale (POS) solution, meaning technologies configured to detect common offenses in other areas of a store (like tag switching or item concealment) may fail to reliably detect the subtle markers of self checkout theft. This idea is explored in greater detail below.

Inability to detect subtle behaviors

Self checkout shoplifting is performed in small areas using subtle movements, with offenders often able to hide their actions from cameras and staff behind their bodies, other shoppers or pieces of physical infrastructure. Standard retail security cameras installed away from self checkouts may fail to spot unusual activity, especially if surrounding areas are busy. While basic security cameras may struggle to provide ample protection against self checkout theft, specialized security cameras can prove effective. 

Lack of integration between POS and security systems

Another hurdle to addressing self checkout shoplifting concerns is the data communication between POS and security systems. As self checkout theft techniques like the ​‘banana trick’ and item swapping don’t look too different from normal shopping behaviors at a glance, staff can face difficulties detecting theft without confirmation provided by POS data.

Should staff accuse a customer of shoplifting without ample evidence, they could face customer complaints and reputational damage. However, failing to address issues in the short time it takes to commit self checkout theft will cause financial harm. With this in mind, the lack of native integration between POS and basic security technology can continue losses for a retail store.

Complexity of weight and dimension variations

Traditional retail security systems cannot offer insight into the characteristics of items without input from human operators, meaning they’re often ineffective at detecting common self-checkout theft tactics like item swapping. While this issue can be mitigated by instructing staff to continuously monitor security feeds, doing so isn’t typically cost or resource-efficient.

Lack of human oversight or intervention

Traditional and segregated retail security systems rely on human oversight to function effectively, meaning feeds must be observed almost continuously for self checkout theft to be reliably addressed. While this may seem practical, challenging economic conditions have left many retailers struggling to fill vital roles, resulting in significant resource shortages.

As of 2024, there were 5.5 million more job openings in the U.S. retail sector than there were workers to fill them, with additional data suggesting in-person retail stores have declined at a rate of around 12% per capita in the last decade. In short, reliably tackling self checkout theft becomes increasingly difficult the fewer staff are available to monitor basic security systems.

What are the best solutions to combat self checkout shoplifting?

While reliably and continuously addressing self checkout shoplifting can be challenging, it’s possible with support from the right tools. Traditional retail security systems provide a good foundation for targeted self checkout loss prevention efforts, but retailers and security teams must work hard to adjust and optimize basic solutions to support advanced workflows.

With this in mind, below are some advanced anti-theft measures and physical security solutions to consider implementing.

Implement advanced video surveillance technologies

Video surveillance systems are an essential theft prevention measure, with their presence alone acting as an effective crime deterrent. However, basic security cameras may only be effective if a business has the resources to ensure camera feeds are monitored 24/7.

Advanced video surveillance solutions imbued with smart functions such as remote access viewing, object detection and custom automation can be effective at addressing self checkout theft. They enable staff to respond to events quickly with accurate information.

AI-powered cameras can be programmed to send instant alerts to secure smart devices in response to suspicious activities associated with self checkout theft, reducing the need for continuous manual observation. Such events can also be used as triggers for wider security devices like alarms and smart locks to help prevent thieves from fleeing and to guide staff to areas of interest.

Leverage AI-powered video analytics software

Standard surveillance cameras can be enhanced through integrations with AI-powered video analytics software, enabling retailers of all sizes to pursue real-time security monitoring with less reliance on manual observation. AI software can observe target areas over time to gain a clear picture of normal activity, allowing for automated alerts warning of suspicious events.

Cameras positioned to cover specific self checkout lanes equipped with retail video analytics software can be configured to detect subtle behaviors linked to self checkout stealing, allowing for automated security responses. Analytics software can also be attuned to detect wider security concerns like persons carrying contraband items or crowds forming in unusual areas. With integrations to wider security systems, alerts and automated responses can be developed to help improve reaction times and proactively deter and detect threats.

Pursue integrations between POS and security systems

POS data can be fed into security systems to enhance incident responses and support live security monitoring. For example, security cameras can be used to verify the authenticity of sales processes, leveraging AI analytics software to compare input barcodes to the physical properties of scanned items. This functionality can then automatically detect common types of self checkout stealing.

Impose transaction limits on self checkout processes

To support the operation of retail security systems and alleviate pressures faced by staff, it can be wise to impose transaction limits at self checkouts. With fewer items being scanned per transaction, the accuracy of security practices can be maintained. Popular retailers like Target, Walmart and Dollar General are exploring this preventative measure.

How Pelco can improve self checkout security and prevent store theft

With over 65 years of experience protecting businesses, Pelco is a trusted brand known for delivering intelligent devices. With a range of versatile cameras designed to meet the unique needs of retailers, Pelco’s security devices work with your existing software, saving you time and money. 

So, how does Pelco help to improve self checkout security and prevent theft? 

• Capture fine details: Pelco’s advanced security cameras feature high-resolution video, advanced zoom and low-light capabilities, making them ideal for capturing the smallest details related to self checkout theft. The detailed footage helps detect suspicious activity and support investigations with evidentiary video, including identifying suspects and items stolen.
• Small, discreet cameras: While security cameras are required to maintain a safe environment and protect a retailer’s merchandise and profits, they shouldn’t be obtrusive and make shoppers uneasy. Pelco’s wide range of devices means there is a unique camera for each application, including the Sarix Modular camera, our multi-camera modular device for areas that need discreet security such as self checkouts.
• AI-powered video security: Pelco’s devices are AI-enabled, meaning they can automatically detect and alert your security team to potential self checkout shoplifting in real time. Such detection capabilities go beyond manual observation and enable all self checkout stations to be monitored, removing the potential for staff to miss an event.
• Seamless integrations: The open-platform nature of Pelco’s security cameras allows retailers to seamlessly integrate them with existing video management systems and other security systems, such as access control, alarms and more. This leads to significant cost savings and improved normal and holiday retail security operations as stores won’t need to overhaul their existing video security setup.

Balancing self checkout security and customer experience

When implementing smart self checkout theft security measures, provisions must be made to ensure safety enhancements do not negatively impact the customer experience. Paying customers have a right to shop in peace, without feeling their privacy is impeded by active surveillance systems, meaning efforts must be made to balance privacy and security.

Thankfully, it’s entirely possible to implement advanced video surveillance solutions with this requirement in mind, provided business owners adhere to the below tips and best practices:

• Data storage: Provisions must be made to ensure captured security data is stored in password-protected systems, only accessible to authorized personnel and managed in compliance with relevant data protection laws. Generally speaking, retailers should not store captured video security footage for any longer than 30 – 90 days.
• Cybersecurity: Data communications between security tools must be encrypted and appropriately protected against cyber threats to prevent sensitive information and surveillance footage from being intercepted by malicious actors.
• Access control: Access to physical and digital security management systems must be secured behind managed access controls, with issued credentials and passwords regularly changed and reviewed to help protect against unauthorized data access.
• Biometric data: Collecting and storing biometric information such as facial recognition data can raise customer privacy concerns. If leaders utilize these tools, clear policies must be created and communicated to customers.
• Clear signage: Installing easily readable signage detailing the use of video security systems helps maintain trust between customers and retailers. It also warns prospective thieves that their actions will be detected and addressed appropriately.

Conclusion

Self checkout theft statistics suggest significant numbers of people view Point of Sale(POS) systems as easy targets for theft, with almost 60% of surveyed customers stating they make stealing goods easy or very easy. However, with 62% of Americans revealing they prefer using self checkouts to staffed ones, completely removing these systems may not be a suitable fix.

While traditional retail security systems often struggle to reliably detect the subtle markers of self checkout shoplifting, advanced security devices prove effective, with AI video analytics, automation and real-time alerts empowering staff to deter theft.

To discover more about how advanced video surveillance technologies facilitate safer retail environments, and to begin developing a system for your business, click here and browse through our case studies, benefits and guarantees before requesting a personal demo.