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NetMap for Retail
A NEW WEAPON FOR RETAILERS TO HALT RETAIL FRAUD,
REDUCE COSTS, IMPROVE EBIT AND ENHANCE GOVERNANCE.
In an environment where most retailers have the challenge of maintaining profitability with diminishing
revenues, one Australian retailer has managed to all but eliminate direct and indirect costs
associated with fraud.
A high end department store chain in New South Wales, Australia, has saved literally
millions of dollars since deploying NetMap for Retail (NfR), a sophisticated software
tool designed specifically to combat fraud. The retailers loss prevention team has
used NetMap to identify abnormal transactions focused on refund/ discounting by
staff to credit/ debit cards and abuse of staff discount schemes. Shrinkage overall
by the retailer amounted to nearly 3% of turnover per annum with around 40% of
this directly attributable to staff fraud. Within one year of deploying NfR, the
retailer had reduced this by nearly two thirds, bringing staff fraud down to less
than 0.5% of turnover. In the second year this was further reduced to around
0.1%. On these figures, the ROI for NfR was calculated literally in weeks. More
importantly, countering this loss meant a direct contribution to bottom line
profitability and generated a highly effective deterrence mechanism by which
staff were under no illusion that any form of fraudulent activity would be
detected.
NfR is unique in its approach to combating fraud – many contemporary systems
rely on “exception reporting” tools that generate “red flags” when a predefined
transaction level has been breached. However, as many fraudsters are well aware of
these boundaries, they conduct the fraudulent transaction within these limits – under the
radar so to speak. Fraudulent transactions therefore appear “normal” because exception
values have not been exceeded.
NfR however, concentrates on the patterns of activity of transactions – and how these transactions
relate to entities such as sales assistants, credit cards, store locations and transaction types. It does this
by analysing EVERY transaction processed with a given timeframe – from one or many stores – then providing
the fraud investigator with an actual PICTURE of the transaction activity by store, terminal, sales assistant or transaction
type. This picture is “drillable” – meaning that the underlying data (credit card details, date/ time/ trans type/ values etc) is available to
query.
NfR, in effect, provide you a picture of your transaction activity from which you are able to literally see where abnormal transactional
activity occurs. In most cases this information is provided without the investigator having to initiate any form of query – NfR gets the
data itself to show you where potential fraud is occurring.
The good news for retailers in this tight economic climate is that NfR is extremely cost effective – and as it utilises data extracted from
any data source, it can function independent of an internal IT operation. ROI can be calculated in weeks rather than months or years,
meaning that any immediate savings effected from elimination of fraudulent activities are far greater than the cost of system use.
NfR can be made available for acquisition by a retailer, or it can be used on a service provision basis where a retailer’s data is provided
to Quest Analytics for processing on a regular basis. Either way, NfR guarantees results – a significant reduction in costs associated
with fraud, an increase in profitability and the establishment of a highly effective deterrence mechanism.
For more information or to request a demonstration
of the NfR counter-fraud technology
please contact Gary Parmenter at Quest Analytics
on 0845 686 1212 or
email gparmenter@questanalytics.co.uk
38 • RETAIL FRAUD
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