With a self-checkout kiosk, you give shoppers the freedom to do their shopping, scan their own items, make their payment, and go about their day. It’s an efficient way to pay that’s on the rise. In fact, self-checkout options are expected to grow annually by 13.4% from 2023 to 2030.
The challenge is that self-checkout options remove the human element from the shopping experience. Unfortunately, some shoppers take this as an invitation to steal or commit fraud. Shoplifting has always been a problem, but now people are coming up with new ways to commit self-checkout theft.
Even so, it doesn’t mean businesses should avoid giving shoppers this innovative option. But how can you reduce self-checkout theft?
Learn why self-checkout is still necessary, some common self-checkout theft scams, and how you can prevent it.
A whopping 66% of Americans prefer to use self-checkout machines over human-operated registers. And 84% of shoppers just plain like self-scan systems.
Some shoppers may prefer self-checkout systems because they’re often faster than waiting in line for a cashier.
But self-checkout has benefits for your business, too. You can decrease labor costs by staffing fewer employees per shift. Self-checkout kiosks also empower your cashiers by decreasing their workload and giving them time to focus on customer service.
Even though scan-and-go self-checkout systems aren’t perfect, their benefits for both shoppers and businesses make them a worthwhile addition to your storefront.
But how are dishonest shoppers adapting to self-checkout? Unfortunately, as technology changes, scams change, too. Be on the lookout for common self-checkout theft scams like:
The switcheroo: This is when a shopper tries to place items of similar weight on the scale. They’ll scan the price of a cheaper item of the same weight but put the more expensive item in their bag instead.
Batch scanning: A customer will buy a large quantity of the same items but pay for only a portion of the products. For example, they might buy 10 nail polishes but only scan six of them.
Bypassing: This bold scam happens when a shopper simply walks past the self-check area and leaves the store. It’s a common scam in stores without security guards near the self-checkout area.
Gift cards: Some thieves steal credit cards, using them to buy an unusually high number of gift cards.
The banana trick: This is a classic self-checkout scam. People will scan a lower-priced item (like a banana) when, in reality, they actually bought a more expensive item. Sometimes shoppers will even peel the sticker off of a bunch of bananas and place it on another item or piece of produce before they scan and pay.
The pass-around: Shoppers pass items from the conveyor belt and into the bagging area without scanning them.
Bottom of the cart: Shoppers “accidentally” forget they have large items in the bottom of the cart. Sometimes this is an honest mistake, but it affects your margins nevertheless.
It’s a hard pill to swallow, but sometimes the trust you extend to customers isn’t returned. Self-checkout is a smart way to boost business, but you have to add measures against the inevitable customer theft that will happen. Try these nine strategies to prevent self-checkout theft in your store.
If you have a small business, you know how powerful face-to-face interactions with customers are. Greet customers as they enter your store and strike up a conversation while they shop.
It’s much harder for thieves to steal from someone who’s friendly and pleasant. This is the precise reason why supermarkets like Walmart have greeters when you enter. By connecting with shoppers, you humanize the customer experience in a way that makes it harder to commit self-checkout theft.
Stores like Costco have made it standard practice to check receipts any time a customer leaves the store. This ensures shoppers didn’t steal anything, but it can also deter self-checkout theft as a whole. After all, if a thief knows you always ask for a receipt, they’re much less likely to commit retail theft.
Some point-of-sale (POS) systems request shoppers to log in with an account, app, or a loyalty card before they check out. This is great for gathering data on your shoppers, but it can also help you identify shoplifters. Thieves don’t want to be identified, so adding a layer of visibility can significantly cut down on self-checkout theft.
You don’t have to make your security measures a total secret. A sign that says, “Smile, you’re on camera!” can work wonders for deterring small-time shoplifters in the self-checkout area.
Stores like Target and Walmart have scales on every self-checkout kiosk. The system requires every item’s weight to match the barcode a shopper scans. If you’re worried about the switcheroo or pass-around scams, scales ensure that the total weight in the bagging area matches the items purchased. If there’s a mismatch, the system flags it and alerts a team member to investigate.
If it’s possible in your store, consider setting up physical barriers, like gates, around your self-checkout lanes. Some stores require customers to scan a receipt to go through, while others use sensors to detect magnetized (or stolen) items.
Last year, Walmart self-checkout undertook a series of radical improvements that resulted in a sharp uptick in the number of cameras at every kiosk. Not only has it deterred self-checkout theft, but a viral TikTok video has shown social media users that the Walmart CEO is not messing around when it comes to self-checkout theft.
Walmart even has a display on the screen next to the card reader so shoppers know they’re on camera. This not only works as a deterrent but also provides evidence if you need to report shoplifting to law enforcement.
In addition to cameras, you can also hire a loss prevention guard to work the door, check receipts, or manage self-checkout. Sometimes having a living, breathing human by the door can reduce the risk of theft by deterring potential shoplifters.
You don’t need to be a huge supermarket chain to afford a loss prevention officer. Even paying a part-time worker during your busiest hours can put a stop to theft.
Have you trained your team on how to spot signs of shoplifting? Education goes a long way in identifying shoplifters before they leave with unpaid merchandise. Train your entire team on how to handle shoplifting in a structured way that stops theft without compromising safety.
It’s great to offer self-checkout, but you need to plan for the realities of shoplifting. To make the most out of self-checkout automation technology, understand the benefits of self-checkout, the seven most common self-checkout theft scams, and the security measures you can take to reduce self-checkout theft.
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