Methods utilized by merchants to safeguard against shoplifting at self-checkout kiosks in SB
Rewritten Article:
Self-checkout cash registers have become quite popular, but they also come with their own set of challenges, such as errors and theft. To tackle these issues, smart technology is now being employed extensively. The average consumer might not even realize this.
Take a German supermarket in 2025, for instance. Shoppers are scanning their items at the self-checkout. What they don't know is that their actions might be under close scrutiny. If there are any discrepancies or unusual behavior during scanning, the checkout staff could potentially receive a silent alert, all without the customer being aware. More and more retailers in Germany are turning to AI-driven security tools, in addition to traditional surveillance staff and exit barriers, in their checkout areas.
Frank Horst, an expert at the EHI retail research institution, shares, "Many companies are using AI-supported monitoring and analysis tools. The number of stores equipped with these tools is increasing and will continue to rise in the coming years." These systems help reduce theft and operational errors.
But why is this monitoring so crucial for retailers? According to EHI, there are over 6,000 stores with over 20,000 self-checkout cash registers in Germany. While many retail chains prefer traditional cash registers, they still want to provide better service. However, retail experts see an increasing risk of theft at self-checkouts. It's estimated that shoplifting can be as much as 15 to 30 percent higher than at staffed registers, revealing a significant financial loss for retailers.
So, how does the smart technology work? The AI algorithm of the software analyzes customer behavior in real-time, looking for anomalies. It evaluates video footage from the checkout area and checks the data while the customer is scanning items at the self-checkout. If anything seems off, an alarm may be triggered.
For example, the smart technology can detect when items are not scanned and placed directly into a bag. It might then display a message asking, "Did you scan the last item?" This is meant to help customers correct mistakes.
The AI can also identify if a customer scans a low-priced item and then places a higher-priced item on the scale, or if they're placing liquor in the produce crate. If the weight of the items on the scale does not match the scanned price, this too would be flagged.
Even if the number of items in the cart and the shopping list do not match, the technology can detect this. An automatic age control can be implemented using AI as well. The customer's face is scanned to estimate their age.
One of the technology providers is Diebold Nixdorf. According to an expert in applied AI in retail, they've worked on over 20 different cases, with the most common being items that are accidentally or intentionally not scanned.
Retailers can customize the software to their needs, determining what happens in various situations, such as when staff receive an alarm or when the cash register is blocked. However, integrating the technology can be complex. The system needs to be trained properly to work reliably and to identify as many fraudulent variants as possible.
After a trial period, data is initially collected and checked to see if the AI is making accurate assessments. Initially, there may be many false alarms, but the success rate improves over time. Only when the error rate is low is the software activated.
The software could potentially reduce traders' losses by 75 percent, says an expert. The number of incorrect transactions at self-checkout machines would be reduced from 3 to less than 1 percent. Diebold Nixdorf is working on this technology with over 60 trading companies worldwide, including independent Edeka retailers and the French trading group Groupement Mousquetaires.
Many companies like Rewe, Ikea, and Rossmann are using or testing intelligent technology. For example, Ikea triggers a review if a customer scans cabinet doors without interior fittings, or if a body is detected but no interior fittings scanned. By March, Ikea plans to deploy this software in all its nationwide 54 branches at its self-checkout machines.
Some companies like Kaufland, Lidl, and DIY chain Obi say they're testing the use of AI. Others are cautious or silent on the topic, avoiding publicity that could potentially reveal how to bypass their security technology. Most retailers are reticent to publicly admit a possible connection between the rise in shoplifting and self-checkout machines.
Many companies do not comment on customer reactions. Ikea shares that the checks serve to avoid misunderstandings, and customers usually react calmly when staff intervene to help check a process. The use of cameras in the checkout areas is clearly communicated via appropriate signs. According to EHI expert Horst, there are many unintentional errors at self-checkout machines, which many people find embarrassing because they're often not aware of the error.
The AI technology is designed to protect privacy and remain confidential, assures Christoph Annemüller of Diebold Nixdorf. The technology is intended to support customers and employees, ultimately reducing the need for constant video monitoring.
Sources:[1] "Self-Checkout Systems Market Trends, Share, Size, Growth, Opportunities and Forecast 2020 - 2026" - Allied Market Research[2] "Fraud Detection Market: Global Opportunity Analysis and Industry Forecast, 2018 - 2025" - Allied Market Research[3] "Future of Retail: 5 Key Technology Trends" - Strategy Analytics[4] "Retail Data Analytics Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Deployment Mode (On-premises, Cloud), By Application (Sales & Marketing, Supply Chain Management, Inventory Management, Workforce Management, Customer Relationship Management), By Region, And Segment Forecasts, 2020 – 2027" - Grand View Research, Inc.[5] "Global Retail Loss Prevention Systems Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Smart Labeling, Real-Time Surveillance, Inventory Management, ASSET TRACKING), By End-user (Electronics & IT, Supermarkets & Hypermarkets, Specialty Retail, Department Stores), By Region, And Segment Forecasts, 2020 – 2027" - Grand View Research, Inc.
In the future, many German retailers are utilizing AI-driven security tools in addition to traditional surveillance staff and exit barriers, to combat theft at self-checkouts. Diebold Nixdorf, one of the technology providers, has worked on over 20 cases, focusing on items that are accidentally or intentionally not scanned.
In 2025, retailers in Germany are expected to continue equipping their self-checkout cash registers with AI-supported monitoring and analysis tools, as mentioned by Frank Horst, an expert at the EHI retail research institution.
