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Table of Contents
In today’s retail landscape, businesses must grapple with various types of theft that not only cause financial loss but also erode customer trust. Among these, under ringing is an insidious form of theft that often goes unnoticed until it’s too late. This article sheds light on what under ringing entails, its different forms, and how Solink can play a crucial role in prevention.
What is under ringing?
Here is the meaning of under ringing:
Under ringing definition: Under ringing occurs at the point of sale when an item is either not scanned or scanned at a lower price than it should be. Whether perpetrated by an employee or a customer, this fraudulent activity increases retail shrink and undermines retail security.
External vs internal theft
Understanding under ringing requires dissecting it into its two main categories: external and internal theft. Indeed, there are many forms of internal and external retail theft, and you should know about all of them to prevent inventory shrinkage.
External theft
External theft is any theft that is caused by those external to the organization exclusively. For point of sale (POS) theft, this means stealing from self-checkouts.
Here are some examples of external theft:
- Skip scanning: The customer only scans alternate items.
- Banana trick: A code for a cheaper item (e.g., bananas) is entered while weighing a more expensive item (e.g., asparagus).
- Barcode swapping: A customer replaces the barcode of an expensive item with that of a cheaper one.
- Cart-based theft: Exiting the store pretending to have scanned all items in the cart but leaving some unscanned, or even walking the entire cart of goods through the self-checkout area without paying for anything.
- Double ticketing: Placing one price sticker over another.
Shoplifting: Customers taking products off the shelf and walking out with them.
Internal theft
In this category, the employees themselves engage in fraudulent activities, including POS employee theft.
Here are some examples of internal theft:
- Selective scanning: Not all items are scanned deliberately.
- Price alteration: Inputting a cheaper product code to favor someone known.
- Voiding sales: Canceling a transaction after the customer has left but keeping the payment.
- Overriding prices: Using managerial authority to lower prices unnecessarily.
- Cash skimming: Taking money directly from the cash register.
- Refund abuse: Issuing fake refunds and pocketing the money.
- Discount abuse: Giving unauthorized discounts to friends or family.
Is under ringing internal theft or external theft?
Traditionally, under ringing is more associated with internal theft. However, with the advent of self-checkout systems, external theft has become increasingly common as well.
Internal retail theft under ringing
In this form, POS employee theft takes center stage. Employees might deliberately skip scanning certain items or alter the price to favor a friend or family member. This jeopardizes business revenue and compromises integrity.
External retail theft under ringing
Here, the focus shifts to self-checkout surveillance. With the freedom to scan their own items, customers have found innovative ways to cheat the system, ranging from simple tricks to complex manipulations.
Given that the prevalence of self-checkout systems is rapidly rising, under ringing is becoming more of an external threat today.
How do you prevent under ringing in your retail store?
A robust loss prevention strategy is essential for tackling under ringing. Solink’s cloud video surveillance plays an indispensable role in this regard.
By pairing each transaction with video footage, Solink enhances your store’s security and makes it easier to detect fraudulent activity. For instance, you can search for specific keywords like “banana” to spot the notorious banana trick in action.
Employee training
One of the most effective ways to combat under ringing is through comprehensive employee training. Equip your staff with the knowledge they need to spot potential theft. Stress the importance of this training, as employees are often your first line of defense against internal and external theft.
Regular audits
Another effective measure is conducting regular audits on your POS systems. These checks help identify any anomalies or irregularities that may indicate fraudulent activity. Audit logs combined with video footage can be compelling evidence in cases of suspected theft.
Use Solink
Solink provides not just video surveillance but a wealth of business insights. It can highlight risky transactions or suspicious activity through its advanced analytics. The pairing of video footage with transactions creates an efficient method for reviewing questionable activities.
Customer monitoring
Monitor customers who exhibit suspicious behavior. It may seem invasive, but it’s crucial for loss prevention. Flagged activities can be reviewed later, utilizing Solink’s cloud video paired with transaction data, to confirm if theft has occurred.
High-quality security cameras
Investing in high-quality cloud-based security cameras is another line of defense. Higher resolution provides better images, which aids in identifying culprits. Video quality is especially important at self-checkout stations where customers have more opportunity to commit theft.
ID verification
For large purchases or heavy discounts, an additional layer of verification should be required. This could be in the form of ID verification or managerial approval. This step can deter potential under ringers who may be discouraged by the added scrutiny.
Consider going one step further and removing certain discount keys from the POS system. If they are there, employees may think it’s ok to use them for all customers.
Here’s how Matt Frazier, Owner of Frazier Farms, describes the process:
“The ex-employee was telling cashiers, ‘the button to do this is on your register. If they didn’t want you to do it, why would they let you?’ This was eye-opening, and we’ve actually removed some of these options. We can also now look at the Solink Dashboard to track who is doing what, and then address the issue right away.”
Data analytics
Utilize analytical tools to comb through your sales data. Patterns or trends in the data may indicate fraudulent activity. If an item is frequently associated with discounts or voids, it may be worth taking a closer look.
Solink helps you prevent retail theft including under ringing
Solink’s capabilities go beyond traditional security measures. The Solink cloud-based AI video analytics platform offers an all-encompassing solution to both internal and external under ringing. With Solink, your retail operation gains not just a loss prevention tool but a comprehensive solution for smarter, more effective business management.
To see how Solink can uncover retail theft including under ringing, sign up for a demo today.
