6 Major Security Threats in the Retail Industry You Need to Know

The rapid expansion of the retail industry is primarily imputable to the greater utilization of security services in recent years. It is no secret. You can see the change yourself now! But, don’t fret. You can conquer security threats by following the right advice, “Protect now or pay later!”

These days proper security systems are important for all modern businesses to sustain their growth in the current marketplace. Similarly, the retail industry is among the biggest industries expected to reach 4.1 percent in the US in 2022.

The global retail sector has become highly competitive, contributing to market growth. However, the rising security issues have become more critical these days and constantly causing business risks and threats for retailers.

So, what major threats the retail industry is facing? We have written a whole blog for that, and you won’t miss out on any of the main ones!

1. Shoplifting

Shoplifters and other criminals remain a major headache for traditional retail store operators. As a result, American retailers lose more than 18 billion to shoplifters every year. In addition, shopping malls are large public areas in which hundreds of people gather simultaneously, so unlawful acts are common.

This is what makes this place an incredibly vulnerable place for criminal activities to occur in such a dense setting. In addition, stealing from the retail stores causes severe damage to the owners’ profit/loss directly.

For example, the immediate loss of expensive products and items shrinks the overall revenue and profits. This security issue can become severe and out of control if the owner does not secure the shopping mall perimeters.

2. Phishing Attacks

Whether it is a physical store, shopping mall, or an e-commerce website, intruders and digital thieves are everywhere. It can have a weighty impact on your retail business. Currently, online shopping is among the most favorites but is it no surprise that the retail sector is quite sought after the cybercriminals.

Hackers and cybercriminals spike on consumers’ online spending. Breaking into your network and gaining unauthorized access to personal info helps them get their hands on your financial debt. The phishing scam is the most common kind of security threat.

With the rise of digital advances, cybercriminals easily create a fake online shopping site resembling the original page. By doing this, they are more likely to damage the reputation of the genuine shopping site. As a result, it rips off customers’ trust and loyalty.

3. The Threat to Copper Wires

The entrance and the circulation facilities are the spatial areas that need strict security systems in retail stores and shopping malls. This is because the intruders know that once they get access inside the mall/shop, it will be easier for them to rob people and the shops.

Although using a camera is the best option to keep a close eye on all activities, sadly, it cannot take quick action. In most cases, thieves break in searching for various goods and commodities. But the wire thieves make money with copper lines/wires and materials by reselling them for high profits in the United States. As a result, it causes major damage to the property and operational downtime. In addition, it threatens the entire electronic system resulting in higher electricity bills and downstream impacts on the retail sector.

You can consider seeking help from Retail Security Services. However, it is best to spare some time and save your retail business for long-term growth and success.

4. The Covid-19 Outbreak

Since the dawn of the pandemic in 2019, the retail industry’s biggest disruption has been the spread of the novel virus. In 2020, total retail sales volume was the largest annual fall on record of about 1.9 percent compared to 2019. Shopping malls are public centers with mass gatherings, generally in enclosed buildings.

Also, it is worth noting that the Covid-19 is a contagious infection that causes mainly by coming in contact with one another. Therefore, even now, there is an extra level of pressure for the retailers to protect the workers and the buyers during the crisis.

Monitoring entrance exits, maintaining social distance, sanitizers, and handling the crowd’s flow are crucial aspects of ensuring protection. It’s been more than a year; the pandemic is still a chief threat to the retail industry. As a result, there is a great need for better restrictive measures to deal with it effectively.

Pro-Tip

Get on board with Squadron Protective Services and make the most out of their retail security services. The firm has veterans working as security guards who never compromise on protocols.

5. Inventory Misplacement (Internal Theft)

In the consumer market, such as the retailer industry, handling inventory operations is quite challenging. Moreover, since many employees work together from various departments, there’s always an opportunity for merchandise theft.

Sometimes, these people work in small teams and commit fraud by using discount cards, refunds, and credit cards. For example, if 60 handbags are meant to be supplied to the outlet, they dispatch 58 to the manager. Since they know the tricks, it’s hard to identify the fraud. Even the on-duty managers involve, at times, and add price tags to the pieces without letting anyone count them.

Again, such incidents are unpredictable and highly tough for the owners and other retail workers to detect. As an outcome, inventory management cause shrinkage. Thus, it is a costly issue impacting all retailing inventories.

6. Vendor Frauds and Errors

The businesses run on trust, but sometimes, this trust leads to fraud and theft. Vendor fraud has become common, and people make schemes about the company’s payment systems for personal benefit. We can categorize these schemes as billing, check tampering, and bribery (also called extortion schemes).

Manipulating a company’s documentation, forgery, and making wrong payments are vicious threats to the firm. Between 2019 and 2020, the average value of fraudulent attacks increased by 70 percent. However, due to the rise in such criminal activities, the retail industry is bearing the brunt globally.

Retail Security Services Fulfills All Your Security Expectations by Adding Value to Your Smart Living!

The retail industry involves selling consumer goods, services, and utilities aiming to meet customer demands and expectations. This is perhaps the most pivotal aspect of a well-functioning retail marketplace. Yet, despite offering countless benefits to a country’s economic progress, the industry continues to suffer security threats and challenges.

What are you searching for?

Fortunately, you can avoid all these threats before they happen by reaching out to Squadron Protective Services. Without any doubt, it is the best security services firm that helps the retail industry to maintain safety measures. So make a call to them at 760-579-7631 and talk about all your security concerns. Always stay ahead of retail competition and discover edges with us!