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When evaluating loss prevention software, try to find comprehensive tools that can help you understand data and act on it quickly. Look for offerings that create detailed reports with which you can drill down and gain insights to better identify where and how fraud occurred. A robust solution should include features that help you:

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Modern technology solutions use data from common transactions such as item returns or discounts to identify patterns and detect fraud. Using AI and machine learning, technology solutions can help make you more informed and efficient to help protect your business.

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Tags and training aren’t the only approaches to loss prevention. Modern technology solutions can also help protect against fraud. Data, for example, represents a key line of defense for today’s retailers.

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For example, software such as Microsoft Dynamics 365 Fraud Protection can tap into the power of the Internet of Things (IoT) to help monitor merchandise. By creating a network of connected devices and sensors, stores can use real-time data to make sure items are restocked quickly or to detect anomalies. For example, a “smart” shelf can send store managers alerts when an item is getting low, but if the system generates an alert when the manager knows something was recently restocked, it could indicate theft.

Profit losses aren’t inevitable. You can take simple, powerful steps to protect your business. Strategies like security cameras and dedicated training can help, but loss prevention strategies are at their best when they incorporate the right software solutions. Empowered with data and actionable insights, you can focus on offering great customer service and helping your business thrive. Adding technology to your loss prevention approach can help mitigate fraud and protect profits. Get started today.

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Fraud has significant financial ramifications for retailers, with online retail fraud costing more than $12 billion annually, according to PYMNTS. Omnichannel businesses are especially at risk for losing hard-earned profits because there’s more opportunity for fraud and theft than businesses that operate only as brick-and-mortar stores or online shops. Regardless of how a retailer chooses to sell, loss prevention is a key first step in helping ensure that profits end up where they belong—so your business can thrive and grow.

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Fraud can have a greater impact on your business than a simple loss of profits. Theft, fraud, or human error can damage a retailer’s reputation and affect customer loyalty, but you can take steps to prevent these issues.

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Additionally, retailers can use IoT to alert employees when the doors to a high-price or high-theft item are left open too long, decreasing the opportunity for thieves to access these items. Alerts can also let employees know when shoppers enter the store, preventing anyone from coming in undetected.

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Loss prevention is a big liability for any business, but it’s especially common in retail. In a retail setting, profit loss can arise from something as straightforward as shoplifting, or it can be as subtle as an administrative error or employees offering improper discounts to friends, acquaintances, or relatives.

Loss prevention creates a defense against the many ways that fraud and theft can damage businesses. In brick-and-mortar retail stores, loss prevention might involve installing security cameras or training employees to spot fraudulent returns. For an online retailer, a loss prevention strategy can include software that detects purchasing anomalies like shipping addresses that differ from billing addresses, requiring debit card verification to make purchases, or automatically setting purchase limits to mitigate criminal activity because very large orders can indicate attempted fraud.

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Loss prevention is crucial for both omnichannel retailers and brick-and-mortar stores—a sound strategy for minimizing profit loss improves your bottom line and can help your business grow.