Security Business

JUL 2019

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16 Security Business / www.SecurityInfoWatch.com / July 2019 SECURITY WATCH BY JOEL GRIFFIN, EDITOR, SECURITYINFOWATCH.COM Market Focus Retail Shrink Tops $50B in 2018 Loss prevention pros report increasing concerns with cybercrime and fraud schemes in annual survey According to the annual National Retail Security Survey conducted by researchers at the University of Florida in partnership with the National Retail Federation (NRF), retail shrink totaled $50.6 billion in 2018, which is up from $46.8 billion the previous year. However, while the dollar amount loss from shrink has increased – due primarily to an overall growth in retail sales – the study, which was sponsored by Appriss Retail, found that shrink percentage calculated at retail has largely been unchanged since FY 2014, despite increasing opportunities and avenues for theft. These new avenues include cyber-related crimes and fraud schemes; in fact, 30 percent of respondents to the survey of more than 60 loss prevention and asset protection executives from a variety of retail sectors reported the largest increase in fraud associated with online sales. Another 22 percent added that fraud and theft occurs with multi-channel sales – such as when a purchase is made online and picked up in the store. Despite the fact that nearly 89% of respondents felt there is increasing overlap between LP and cyber, most LP professionals are not actively involved in cyber issues within their organizations. Only about three in 10 LP professionals are often called upon to respond to cybersecurity issues; and only about one in four are engaged in threat analysis. “These are changing times in retail, and that means changes in loss prevention,” University of Florida criminology professor Richard Hollinger said in statement. “As always, the challenge is for the honest to stay ahead of the dishonest.” “We are seeing dramatic changes in the risks faced by retailers, and loss prevention practices and priorities are evolving to meet those challenges,” added NRF VP for Loss Prevention Bob Moraca. “As criminals find new ways to steal, loss prevention teams are finding new ways to stop them. Increasingly, this is a battle focused on technology.” The Technology Landscape While there has been a push in recent years to get retailers to adopt video analytics, the survey found that these solutions have actually fallen out of favor with some in the market; in fact, only 22% of respondents reported using IP analytics, a decrease of 9.5 percentage points from last year’s survey. Just 57% said they were using remote IP video surveillance monitoring, a decrease of nearly 20 percentage points from the prior year. Theft deterrent devices, such as spider wraps, also dropped in use, according to the survey. Among the technologies that have increased in use, according to study, include: • Merchandise alarms/electronic security tags (used by 46% of retailers, a jump of 25 percentage points); • Acousto-magnetic security tags (35%, an increase of nearly 13 percentage points); and • DVRs (84%, an increase of nearly 10 percentage points). ■ Read more of the results of this loss prevention survey at www.SecurityInfoWatch.com/21083669 30 percent of loss prevention and asset protection executives report a large increase in fraud associated with online sales. Another 22 percent added that fraud and theft occurs with multi-channel sales – such as when a purchase is made online and picked up in the store.

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