Internal theft is a persistent challenge faced by retail managers in South Africa. It is estimated that nearly 46% of retail theft occurs internally, according to Lodge Service.

This issue costs businesses billions annually, directly affecting profit margins and operational efficiency. Addressing this concern requires robust preventative measures, and one emerging solution is RFID technology.

But can RFID help prevent internal theft? This blog explores how RFID works and its potential to combat theft within retail environments.

What Is Internal Theft?

Internal theft refers to the misappropriation of goods, cash, or other assets by employees within an organisation.

Unlike external theft, which involves shoplifters or outsiders, internal theft comes from within, making it much harder to detect and manage.

Common Ways Internal Theft Occurs:

Product Theft: Employees may steal physical inventory directly from shelves or storage areas.
Cash Theft: This includes skimming from registers or altering financial records.
Manipulation of Returns or Discounts: Fraudulently processing fake returns or offering unauthorised discounts to pocket the difference.
Stock Discrepancy Manipulation: Falsifying stock records to hide missing goods during inventory checks.
Collusion: Employees may work with outsiders to enable theft, such as leaving stock in unsecured areas for later retrieval.

Preventing internal theft requires proactive systems that monitor inventory, transactions, and employee behaviours in real-time. This is where RFID can make a significant impact.

How RFID Can Prevent Internal Theft

What Is RFID?

RFID (Radio Frequency Identification) is a technology that uses small electronic tags attached to items. These tags contain unique identifiers linked to a database, allowing retailers to track and monitor inventory with precision.

Unlike traditional barcodes, RFID tags can be scanned remotely and in bulk, making them far more efficient.

RFID in the Retail Environment:

RFID enables automated tracking of stock across the supply chain, from warehouses to shop floors to point-of-sale systems. Handheld readers or fixed antennas can detect and record stock movement, allowing businesses to maintain accurate inventory records.

How RFID Helps Prevent Internal Theft:

Real-Time Inventory Visibility:

RFID provides live monitoring of stock levels, allowing retailers to track inventory as it moves through the store or warehouse.
Sudden stock discrepancies can trigger alerts, acting as an early warning system for suspicious activity.

Transparent Stock Reports:

RFID enables 97-99% inventory accuracy, making it nearly impossible for employees to manipulate stock records and cover up stolen goods.
Detailed reports show when, where, and by whom items were accessed or moved.

Monitoring High-Risk Areas:

RFID tags can monitor sensitive zones like storage rooms or back offices, tracking unauthorised access to these areas.

Reduced Time for Stocktakes:

With RFID’s ability to scan thousands of items in seconds, retailers can perform frequent stocktakes, reducing opportunities for long-term theft and ensuring discrepancies are caught early.

Data-Driven Accountability:

Every RFID tag includes an audit trail, encouraging greater accountability among employees and reducing the likelihood of malicious activities.

Reinforce Retail Shrink Management with RFID!

Managing shrinkage in retail requires solutions that directly address both external and internal theft.

RFID offers a comprehensive answer by delivering real-time visibility, accurate inventory records, and transparent audit trails. Its ability to automate and streamline operations allows retail managers to focus on core business activities while significantly reducing risk.

Take Action Today

Explore Milestone’s RFID technology to upgrade your retail security.

Milestone has supported retailers across South Africa and the African continent since 1996 with cutting-edge shrink management solutions. Our RFID products help retailers prevent theft, safeguard their assets, and improve overall operational efficiency.

Contact Milestone today to learn more and take your first step toward superior inventory control and reduced shrinkage.