Fight Organized Retail Crime With PlateSmart ALPR

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1. The Rising Tide: Organized Retail Crime's Growing Impact

The modern retail environment faces unprecedented security and operational challenges. Organized Retail Crime (ORC) has evolved from isolated shoplifting incidents into sophisticated criminal operations that target multiple locations with coordinated strategies. These criminal enterprises strategically steal high-demand merchandise that can be easily resold on the black market, creating substantial financial losses for retailers of all sizes.

Credit card fraud compounds these challenges, creating an additional layer of financial vulnerability for merchants. When fraudulent transactions occur, retailers often bear the financial burden through chargebacks and lost merchandise, while also facing increased scrutiny from both customers and financial institutions regarding their security practices.

Here are a few interesting statistics about Organized Retail Crime and Credit Card Fraud*:

Nationwide (US) economic impact: $125.7 Bn

Lost federal, state and local tax revenue: $14.9 Bn

Jobs lost nationwide: 700K

Value of goods stolen from retailers: $68.9 Bn

Proportion of small retailers that reported theft in 2021: 56%

Average value of retail theft increased from $937 in 2020 to $1180 in 2021

Organized retail crime costs stores $700k per $1 Bn of sales in 2020, a more than 50% increase over 5 years

Value of shop lifting cost to retailers is projected to cross $150 Bn in 2026

Worldwide credit card fraud is expected to cross $43 Bn in 2026, with the US accounting for a whopping 46%

150 Mn Americans will be victims of credit card fraud in 2025

48% consumers say it is the merchants' responsibility to protect them from credit card fraud

The top 10 types of retailers most affected by organized retail crime are, in decreasing order: Pharmacy, Big Box, Home Improvement, Grocery, Soft Goods, Electronics, Luxury, Specialty, Dollar Stores, and Cell Phone Stores.

What makes these challenges particularly difficult is the identification and prevention of repeat offenders. Criminals targeting retail establishments often operate across multiple locations, making it nearly impossible to track their activities through conventional security methods.

2. Vehicular Link: Why Vehicles Matter in Retail Security

Most retail criminals share one common element that creates both vulnerability and opportunity: they arrive and depart by vehicle. This creates a critical point of leverage for security professionals that has been historically underutilized.

What makes license plate recognition particularly effective in retail environments is the element of surprise. Most criminals don't expect retailers to capture license plate information, so they rarely take precautions to conceal their plates. Even when perpetrators park in areas they believe have no camera coverage, a properly implemented ALPR system can still document their vehicle—creating a powerful tool for identification and prevention.

This vehicle connection extends to credit card fraud as well. When fraudulent transactions occur, having license plate data provides crucial evidence linking the vehicle to the crime scene. This becomes especially valuable when the same plate appears at multiple locations where fraud has occurred, establishing a pattern that can help law enforcement build a stronger case.

A large parking lot outside a retail store, used in a case study about fighting organized retail crime with the help of PlateSmart ALPR

3. Digital Perimeter Defense: PlateSmart's Retail Security Approach

PlateSmart's ALPR technology offers retail establishments a comprehensive approach to security and operational efficiency. Unlike basic surveillance systems, PlateSmart ARES doesn't just record footage—it actively identifies and analyzes vehicle information in real-time, creating actionable intelligence.

The solution works by capturing license plate data, location, time, and vehicle images, then integrating this information into a powerful analytics platform. This creates multiple layers of protection and operational benefits:

1. Fraud Prevention and Chargeback Reduction:

When fraudulent credit card transactions occur, time-stamped ALPR data captures of vehicles leaving the area help the police narrow down the list of suspects, providing critical evidence to prosecute wrongdoers, and documentation to dispute chargebacks. This is especially powerful when the same plate appears at multiple fraud locations, establishing a pattern of criminal activity.

2. Organized Retail Crime Disruption:

ORC perpetrators typically target multiple store locations in succession. PlateSmart's technology enables retailers to identify repeat offenders and immediately alert other locations about suspect vehicles, creating a network of protection that prevents consecutive attacks across different stores.

3. Proactive Threat Detection:

The system generates alerts about suspicious behavior patterns, such as vehicles that pass cameras several times within a given period ("casing" activity) or known suspect vehicles entering the property. This transforms security from reactive to preventative by empowering security teams to deploy resources before crimes occur.

4. Comprehensive Security Coverage:

Strategic deployment of ALPR cameras at all parking lot entry and exit points ensures every vehicle is documented regardless of where they park, while enhancing overall parking lot security for customers and employees.

5. Cross-Location Intelligence:

Data from multiple store locations can be analyzed to identify patterns, helping security teams anticipate and prevent future criminal activity through shared intelligence and coordinated response.

6. Enhanced Customer Experience:

Beyond security, the system enables efficient curbside pickup programs by allowing customers to enter their license plate when ordering online, then automatically alerting staff when they arrive, delivering merchandise directly to customers' vehicles.

7. Marketing and Business Intelligence:

Traffic pattern analysis helps retailers understand how customers navigate their parking areas, allowing for optimized promotional signage placement and targeted marketing initiatives. Vehicle make information can enable cross-promotional programs with local auto dealerships based on customer preferences.

4. Beyond Basic ALPR: PlateSmart's Advanced Capabilities

PlateSmart's ARES 3.0 provides several technical advantages that make it particularly effective in retail environments:

Vehicle Data: ARES captures not only the license plate, but other vehicle parameters like color, make and type. Combined with time stamps and location details, this makes for robust identification information.

Advanced Edge-Finding Technology: PlateSmart's patented technology consistently identifies plates even when surrounded by bumper stickers or other visual distractions.

Performance in Challenging Conditions: The system reads dirty license plates with ease and also works with reliable accuracy in adverse conditions like improper lighting, narrow angles and inclement weather.

Flexible Capture Capabilities: ARES doesn't require plates to be in a specific "sweet spot" in the camera frame, can read stacked characters, recognizes specialty plates, and even processes temporary tags.

Integration Flexibility: As a software-only, camera-agnostic solution, ARES integrates seamlessly with major video management systems and works with virtually any surveillance camera infrastructure, providing cost-effective implementation options.

Looking to elevate your security infrastructure with cutting-edge ALPR?

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5. The Bottom-Line Impact: Security that Strengthens Retail Performance

Retailers implementing PlateSmart's ALPR technology typically experience several quantifiable benefits:

Increased Theft Deterrence: As word spreads that vehicles are being monitored, opportunistic theft decreases significantly due to the greater risk of identification and apprehension.

Decreased Chargeback Losses: Better documentation of fraudulent transactions leads to fewer successful chargeback claims.

Improved Apprehension Rates: When incidents do occur, the availability of vehicle data dramatically increases the likelihood of identifying perpetrators, whether they are operating by themselves or as part of organized retail crime rings.

Enhanced Operational Efficiency: Automated features like curbside pickup notification reduce staff workload while improving customer satisfaction.

Data-Driven Decision Making: Traffic pattern analysis provides valuable insights for store layout, staffing decisions, and marketing strategy.

6. More than Prevention: Transforming Security into Strategic Advantage

While the security benefits of PlateSmart's ALPR technology are substantial, forward-thinking retailers are discovering that the system delivers value far beyond loss prevention. The same data that helps reduce theft and fraud also provides insights into customer behavior, enables enhanced services, and supports marketing initiatives.

By recognizing the central role vehicles play in both retail crime and legitimate customer interactions, PlateSmart's solution addresses security challenges while creating new opportunities for operational improvement and customer engagement. For modern retailers facing evolving threats and competitive pressures, this comprehensive approach transforms a security investment into a business intelligence asset.

Frequently Asked Questions About ALPR for Organized Retail Crime Prevention

What is organized retail crime and how does it impact retailers?

Organized retail crime (ORC) involves sophisticated criminal operations that target multiple retail locations with coordinated strategies to steal high-demand merchandise for resale on the black market. ORC costs retailers nationwide $68.9 billion in stolen goods annually, with organized retail crime costing stores $700,000 per $1 billion of sales, representing a 50% increase over five years and creating substantial financial losses for retailers of all sizes.

How can ALPR technology help prevent organized retail crime?

ALPR systems can disrupt organized retail crime by capturing license plate data and vehicle information when criminals arrive at retail locations. Since ORC perpetrators typically target multiple stores in succession, automatic license plate recognition enables retailers to identify repeat offenders and immediately alert other locations about suspect vehicles, creating a network of protection that can prevent consecutive attacks across different retail establishments.

Can license plate recognition systems help with credit card fraud investigations?

Yes, ALPR technology can provide crucial evidence for credit card fraud cases by capturing time-stamped license plate data and vehicle images when fraudulent transactions occur. This documentation helps law enforcement narrow down suspect lists and can be especially powerful when the same license plate appears at multiple fraud locations, establishing patterns of criminal activity that strengthen prosecution cases and help retailers dispute chargebacks.

How does ALPR work as a deterrent against retail theft?

ALPR serves as an effective deterrent because most retail criminals don't expect retailers to capture license plate information and rarely take precautions to conceal their plates. Visible signages have a strong deterrent effect. As word spreads that vehicles are being monitored, opportunistic theft typically decreases significantly due to the increased risk of identification and apprehension.

What makes PlateSmart's ALPR different from basic surveillance security systems for retail applications?

Unlike basic surveillance systems that only record footage, PlateSmart's ALPR technology actively identifies and analyzes vehicle information in real-time, creating actionable intelligence. The system captures not only license plates but also vehicle color, make, and type with timestamps and location details. PlateSmart's advanced edge-finding technology can read dirty plates and works reliably in challenging conditions like poor lighting and inclement weather.

Can ALPR systems integrate with existing retail security infrastructure?

Yes, PlateSmart's ARES solution is software-only and camera-agnostic, meaning it doesn’t tie customers to any expensive proprietary hardware. PlateSmart can integrate seamlessly with major video management systems and works with virtually any existing surveillance camera infrastructure. This license plate recognition system provides cost-effective implementation options by enhancing current security investments rather than requiring complete system replacement.

How can ALPR technology improve customer experience at retail locations?

Beyond security benefits, ALPR can enhance customer experience by enabling efficient curbside pickup programs where customers enter their license plate when ordering online, and the system automatically alerts staff when they arrive. The automatic license plate reader can also provide traffic pattern analysis that helps retailers optimize promotional signage placement and improve overall customer flow through parking areas.

What ROI can retailers expect from implementing ALPR for organized retail crime prevention?

Retailers implementing ALPR typically see return on investment through decreased theft due to deterrence effects, reduced chargeback losses from better fraud documentation, improved apprehension rates when incidents occur, and enhanced operational efficiency. The system transforms security investment into business intelligence by providing data-driven insights for store layout, staffing decisions, and marketing strategy while significantly reducing losses from organized retail crime.

Data Sources

(The visuals on this page are stock images, used for illustrative purposes only)

The Retail Sector's Unseen Ally: PlateSmart ALPR in the Fight Against Organized Retail Crime