Loss Prevention Strategies

Loss Prevention Strategies for Combating Organized Retail Theft

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Frank Costa, President of NEXGEN Protections Services on Loss Preventions Strategies:

Organized retail theft (ORT) impacts more than just a retailer’s bottom line; it creates dangerous environments for both staff and shoppers. The increasing incidents of violence and aggression have pushed retailers to invest heavily in loss prevention strategies. In response, major retailers are partnering with technology innovators to strengthen their defenses. 

(ORT) involves coordinated efforts by professional thieves to steal large quantities of merchandise from retail stores. Unlike casual shoplifting, ORT is systematic, with stolen goods often resold through various channels, including online marketplaces. This form of theft has seen a significant rise in recent years, resulting in billions of dollars in annual losses for retailers.

Companies such as Walmart, Target, Lowe’s, Kroger, Macy’s, CVS, and others are at the forefront, using cutting-edge technology to deter and detect criminal activity. From advanced video surveillance systems to biometric cameras and autonomous security robots, retailers are deploying a formidable arsenal to combat the growing threat of ORT. Central to this technological revolution is the integration of artificial intelligence (AI), which enhances the sophistication and effectiveness of existing security measures.

Source:
Danielson, R. (February 20, 2025). Retail Resilience: Technology Strategies to Combat Organized Theft. Security Magazine.
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security threats

Security Threats: Keeping Convenience Stores Safe

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Frank Costa, President of NEXGEN Protection Services on Security Threats:

Store owners and operators often face security threats. A difficult balancing act between maintaining profits and implementing security measures—especially when the costs of security are presented alongside traditional profit generators like marketing or product stocking.

Convenience stores come in many forms, from the mom-and-pop bodega in New York City to the sleek Speedway on the side of a cross-country highway. Despite their differences, all of these stores serve millions of U.S. customers looking for a quick drink, snack, or pack of cigarettes.

Given the transient nature of the convenience store industry, it’s a business where you never know who will walk through your door at any given time. While the convenience of these stores appeals to patrons, it also attracts criminals. Thieves frequently target these locations in hopes of stealing cash and merchandise. Organized criminal groups tend to focus on items that can be resold on the black or gray market, such as cigarettes, alcohol, lottery tickets, or other popular products.

Some owners might assume that enhancing store security requires the latest (and possibly most expensive) surveillance system or locks. However, it’s essential to first assess the overall environment and understand the specific threats a store faces.

Larger companies with multiple locations, whether regionally or nationwide, often have security departments that can conduct risk assessments. Relying on these resources can help identify local crime trends and determine what factors might impact a particular store.

Source:
Mosqueda, S. (February 10, 2025). Keeping Convenience Stores Safe from Physical Threats. Security Management Magazine.


Fraud-Schemes-Continue-to-Rise

Fraud Schemes Continue to Rise

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Frank Costa, President of NEXGEN Protections Services on Fraud Schemes:

Fraud remains a persistent problem that organizations continue to struggle with, including the U.S. Federal Trade Commission (FTC), one of the federal agencies tasked with addressing fraud schemes.

Below are some of the top fraud scams that affected individuals and organizations in 2024 and are likely to continue being a problem in 2025.

  1. Investment Scams
    This scam tactic has been around for ages. Fraudsters often present themselves with seemingly lucrative business opportunities that promise regular returns—if you invest immediately.
  2. Business Email Compromise (BEC)
    BEC schemes have been around since email was first introduced and typically occur in one of two ways, according to Schlereth.
    Fraudsters either spoof a legitimate email address or domain name, often adding an extra letter so the sender appears authentic at a quick glance. Alternatively, they may use social engineering to obtain an employee’s credentials and then log into the victim’s work email. CFOs and CEOs are particularly lucrative targets.
  3. Check Fraud
    What’s old is new again. Check fraud surged last year, especially after individuals posted videos on social media showing themselves writing bad checks, depositing them at ATMs, withdrawing cash before the check bounced, and sharing their behavior.
    “Fraudulently altered checks can cause significant losses to financial institutions and disrupt bank operations,” the report states. “Due to the nationwide surge in check fraud targeting U.S. mail, the Financial Crimes Enforcement Network (FinCEN) issued an alert urging financial institutions to be vigilant in identifying and reporting such activity.”
  4. Impersonation Fraud
    In this scam, criminals claim victims are suspects in financial crimes and threaten arrest or violence unless they pay the criminals. Additionally, fraudsters are impersonating customer service and tech support providers, often targeting individuals over 60 by phone. They claim that the victim’s computer has been compromised and needs immediate repair.

Source:
Gates, M. (February 1, 2025). Trend Alert: 4 Fraud Schemes to Watch in 2025. Security Management Magazine.

 

Fraud-Detection-with-Video-Surveillance-Analytics.

Ways to Boost Fraud Detection with Video Surveillance & Analytics

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Frank Costa, President of NEXGEN Protections Services on Fraud Detection:

Fraud costs the financial sector billions of dollars each year. It’s a persistent challenge for banks globally, made more complex by increasingly sophisticated fraud tactics and methods.

To stay ahead of fraud, financial institutions must leverage every available tool to protect their customers and assets. One such tool is video surveillance and analytics. By integrating video technology with fraud detection systems, banks can gain real-time insights, spot patterns, and take a proactive approach to security. This not only helps detect fraud but also prevents it from escalating.

  1. Real-Time Fraud Alerts
    Fraud detection systems generate a massive amount of data, but not every alert indicates a genuine threat. Video surveillance adds a critical visual layer, helping differentiate between legitimate fraud and false alarms.
  2. License Plate Recognition
    Drive-up ATMs and tellers face unique security challenges, especially in suburban and rural areas. License Plate Recognition (LPR) technology, integrated with video systems, offers a powerful way to identify vehicles linked to fraudulent activities. This information can be used to flag repeat offenders or known fraudsters.
  3. Behavioral Analytics
    ATM skimming is one of the most persistent threats to banks. Video surveillance equipped with behavioral analytics can identify suspicious patterns, such as individuals loitering near ATMs without conducting transactions or using multiple cards in quick succession.
  4. Integrated Surveillance
    ATM jackpotting—where criminals manipulate ATMs to dispense large amounts of cash—is a growing global issue. Combining video surveillance with physical sensors offers an effective defense. Cameras can detect unusual activity, like tampering, suspicious vehicles parked near ATMs, or vehicles with no license plates, and trigger real-time alerts.
  5. Loitering Detection
    Ensuring customer safety, especially at ATMs after hours, is a top priority for banks. Video surveillance with loitering detection analytics can identify individuals lingering near ATMs for extended periods, enabling timely intervention.
  6. Video Storage with Hybrid Solutions
    Storing surveillance footage for extended periods can be expensive. Hybrid storage solutions, which combine on-premises and cloud-based video storage, offer a practical alternative. Banks can securely store critical footage without the need for large-scale on-site infrastructure.
  7. Camera-to-Cloud Solutions for Remote Monitoring
    In some areas, installing on-site recorders can be impractical due to space or connectivity issues. Camera-to-cloud solutions address this by streaming video directly to the cloud. This eliminates the need for on-site hardware while maintaining full surveillance capabilities.
  8. Disaster Preparedness for Video Data
    Natural disasters pose a significant challenge to video surveillance systems. To mitigate this risk, banks should ensure that critical footage is preserved, even when on-site systems are compromised. Centralized evidence archiving allows banks to offload important video data to secure locations before a disaster strikes.

Transforming Fraud Prevention with Video Analytics

Video surveillance and analytics are revolutionizing fraud prevention, equipping banks with powerful tools to detect threats in real-time, enhance customer safety, and streamline security operations. From preventing ATM skimming and jackpotting to addressing loitering and improving evidence management, integrating video technology with existing systems strengthens banks’ ability to combat financial crime.

Source:
Corral, J. (February 5, 2025). 8 Ways to Boost Fraud Detection with Video Surveillance and Analytics. Security Management Magazine.



Artificial Intelligence: Challenges and Strengths Come Down to Human Error

Artificial Intelligence: Challenges and Strengths Come Down to Human Error

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Frank Costa, President, Nexgen Protection Services

Automated threat detection and prevention, advanced intelligence, and AI-driven supply chain attacks—AI today has evolved significantly beyond the days of basic pattern matching.

While human error and uncertainty may initially amplify AI risks, it is ultimately the oversight of AI—the collaboration between humans and algorithms—that will enable us to safely innovate and explore this technology. AI itself is designed to be a positive force, unlocking value and improving efficiency.

However, AI cannot be left unchecked. The best way for organizations to mitigate AI risks is through increased education and employee training. People must know what to look for, and more broadly, you can never overemphasize the importance of cyber awareness training. Even beyond AI, there are countless ways to compromise an individual system or its information, and the digital landscape is constantly evolving.

The more we can educate employees and strengthen security measures across the board, the better prepared organizations will be to remain compliant, resilient, and scalable in this new era.

Source:
(2025, Jan 17). 3 Ways AI Will Transform Security in 2025. Security Education & Training.

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Loss Prevention Strategies to Fight Shrink in the Retail Space

Loss Prevention Strategies to Fight Shrink in the Retail Space

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Frank Costa, President, Nexgen Protection Services

When grocers address loss prevention strategies to combat shrinkage, it is typically framed within the context of preventing theft.

Major Sources of Shrinkage

  • Employee Theft: Surprisingly, one of the biggest contributors to shrinkage is employee theft. This can range from stealing products directly to manipulating cash registers or other financial records.
  • Shoplifting: Another significant source of shrinkage is shoplifting. Despite advances in surveillance and security, shoplifters often find creative ways to steal products.
  • Administrative Errors: Mistakes in recording inventory, pricing errors, and other administrative mishaps can also contribute to shrinkage. While these errors might seem minor individually, they can add up over time.
  • Vendor Fraud: Sometimes, the problem lies with suppliers. Vendor fraud includes issues like short shipments, where the vendor delivers less than what was ordered but charges for the full amount.

Implementing a Comprehensive Loss Prevention Program

While individual strategies can make a difference, a comprehensive loss prevention program that combines multiple approaches is often the most effective. Here’s how retailers can implement such a program:

  1. Conduct a Risk Assessment:
    Start by assessing the specific risks and vulnerabilities in your retail operation. Identify areas where shrinkage is most likely to occur and prioritize them for intervention.
  2. Train Employees:
    Employee education is crucial in preventing shrinkage. Train your staff on loss prevention techniques, including how to spot suspicious behavior, handle inventory accurately, and report discrepancies promptly. Encourage a culture of honesty and accountability among employees.
  3. Implement Security Measures:
    Invest in security measures such as surveillance cameras, electronic article surveillance (EAS) systems, and security tags. These tools can act as deterrents to potential thieves and provide valuable evidence in case of theft.
  4. Monitor and Analyze Data:
    Regularly monitor and analyze inventory data to identify patterns or anomalies that may indicate shrinkage. Use data analytics tools to gain insights into your inventory management and pinpoint areas for improvement.
  5. Collaborate with Vendors:
    Work closely with your vendors to ensure transparency and accuracy in deliveries. Establish clear communication channels and conduct regular audits to verify the accuracy of shipments. Building strong relationships with vendors can help prevent fraud and discrepancies.

Source:
Smirles, J. (2023, July 13). How Supermarkets Can Reduce Fresh Food Shrink. Loss Prevention Magazine.

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Organized Retail Crime: Strategies for Mitigating Loss

Organized Retail Crime: Strategies for Mitigating Loss

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Frank Costa, President, Nexgen Protection Services

To effectively combat organized retail crime, retailers must establish strong partnerships with industry associations, law enforcement agencies, and other relevant stakeholders. Such collaboration enables the exchange of intelligence, best practices, and emerging trends, allowing for a proactive response to the evolving nature of organized crime.

Partnership with Law Enforcement:
Close collaboration with law enforcement is critical. Retailers should establish direct communication channels with local police departments and develop protocols for promptly reporting organized crime incidents.

Training Store Associates:
Education and awareness are key to preventing organized crime. Retail employees must receive comprehensive training on identifying organized crime indicators, understanding theft patterns, and implementing effective prevention techniques.

Source:
Brittain, J. (2025, January 14). Retail’s Dangerous Triangle: Trafficking, Trucking, & Organized Theft. Loss Prevention Magazine.

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How Security Is Shaping the Cannabis Industry

How Security Is Shaping the Cannabis Industry

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Frank Costa, President, Nexgen Protection Services

A surveillance system can help protect your business from theft, particularly employee theft, which is a widespread issue in the cannabis industry. For large outdoor growing operations, having a monitoring system in place provides peace of mind by securing your property from all angles at all times.

Source:
Baxter, K. (2025, January 13). How security is shaping the cannabis industry. Security InfoWatch.

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Mitigate Losses to the Supply Chain with Robust Security Protection

Mitigate Losses to the Supply Chain with Robust Security Protection

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Frank Costa, President, Nexgen Protection Services

Companies lose billions of dollars annually due to cargo theft. Many manufacturers don’t realize their shipments have been stolen until it’s too late, often discovering the issue only when the shipment fails to arrive on the expected date.

To mitigate losses in the supply chain caused by security threats, key protection measures include:

  • Thorough vendor vetting
  • Robust access controls
  • Data encryption
  • Continuous monitoring
  • Incident response planning
  • Supply chain visibility through technology
  • Diversifying suppliers
  • Implementing strong cybersecurity practices across all tiers of the supply chain, ensuring all partners adhere to the same security standards.

Source:
Fryer, N. (2025, January 18). How transportation management systems mitigate supply chain risks for manufacturers. Security InfoWatch.

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The Rise of Physical Security De-escalation Tactics

The Rise of Physical Security De-escalation Tactics

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Frank Costa, President, Nexgen Protection Services

In recent years, one of the most pressing issues at the center of national conversations has been the use of excessive and unnecessary police force. This topic will continue to be a focal point, and one major shift in the security industry will be the increased emphasis on de-escalation tactics and training for safety officers, with a focus on making this a first resort.

De-escalation training equips security personnel with the tools they need to resolve emergencies without the use of force. It empowers officers to slow down, assess situations more effectively, and communicate clearly with both the individual involved and their team. Just as importantly, it helps mitigate the risk of liability and reduce the potential for injuries to security personnel.

While having a physical security or human guarding team on-site is crucial and can prevent further escalation, hybrid security strategies that incorporate technology are becoming increasingly important. The remote work revolution is well underway, and many companies have adopted a hybrid office model, allowing employees to spend time both on- and off-site.

SOURCE: 

Weingot, D. Guard trends to watch in 2022. Security InforWatch, 02/14/2022.
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