The rapid adoption of Buy Online, Pick Up In-Store (BOPIS) and curbside pickup has fundamentally altered the retail security landscape. While these fulfillment models meet customer demand, they introduce complex vulnerabilities that organized retail crime (ORC) groups exploit quickly. With retail theft projected to exceed $115 billion by 2025 (Source: Business Dasher), security leadership must now protect a hybrid process spanning digital ordering, back-of-house staging, and vehicle-side handoffs.

As a Director or VP of Loss Prevention, you protect assets in an environment where retailers report a 93% increase in shoplifting incidents compared to 2019 (Source: TheStreet). Protecting curbside operations from fraud and theft requires moving beyond traditional observation to practical, data-informed mitigation. You need a force multiplier—technology that turns your existing camera infrastructure into an active partner in retail loss prevention.

Addressing core loss mitigation pain points with Video AI Agents

The operational shift to omnichannel fulfillment exacerbates existing loss prevention challenges. Video AI Agents offer direct solutions to each one.

1. Moving from reactive recording to proactive deterrence

The Pain Point: Traditional camera systems document theft after it happens. By the time you review the footage, the inventory is gone and the perpetrators have left. With retail costs increasing 53.16% over the last two years due to shrink (Source: Business Dasher), reactive measures fall short.

The Solution: Spot AI helps teams shift to earlier detection. Video AI Agents like "Loitering" and "Person Enters No-go Zones" detect suspicious behavior in staging areas or curbside zones in real time. Your team receives timely alerts and can intervene earlier to mitigate loss.

2. Eliminating alert fatigue

The Pain Point: High false positive rates from legacy systems create alert fatigue. When teams are overwhelmed with irrelevant notifications—like a tree branch moving in the wind—they ignore them, leaving stores vulnerable during legitimate incidents.

The Solution: Context-aware retail video analytics filter out noise. Spot AI identifies specific behaviors and vehicles with high accuracy. When your team receives an alert about unauthorized access to a BOPIS storage cage, it's a verified event requiring attention.

3. Closing the omnichannel fraud gap

The Pain Point: BOPIS and curbside pickup create new fraud vectors that traditional cameras cannot detect, such as "friendly fraud" at the curb or inventory shrinkage in staging areas. Only 9% of businesses achieve full visibility into their inventory operations (Source: KissFlow), leaving massive blind spots.

The Solution: Spot AI integrates with your operational processes to provide visibility into key fulfillment steps. AI Agents like "Vehicle Enters No-go Zones" monitor curbside lanes, while "Unattended Workstation" alerts keep pickup counters staffed during peak hours, minimizing opportunities for opportunistic theft.

4. Streamlining investigations

The Pain Point: Investigating a claim of non-receipt or internal theft often requires reviewing four to eight hours of footage. This operational drain pulls staff away from proactive work.

The Solution: The Intelligent Video Recorder and smart search capabilities shorten investigation time dramatically. Search for specific attributes—like a red vehicle at a curbside bay or a person wearing a specific color in the staging area—to locate relevant footage in minutes.

This efficiency drives real results. All Star Elite, a multi-location retailer, deployed Spot AI to strengthen their loss prevention. By centralizing case management and utilizing AI search, they reduced cash shrink from approximately 6% to 1%—an 83% reduction—and cut merchandise shrink to roughly 6% (Source: Spot AI).

The operational context of BOPIS and curbside vulnerabilities

Securing BOPIS processes effectively requires understanding the operational mechanics that create risk. These models are economically vital, yet the speed required to execute orders creates friction points where security protocols are frequently bypassed.

Criminological research identifies three elements required for theft: desire, ability, and opportunity. While you cannot control desire or ability, you can control opportunity. BOPIS workflows multiply these opportunities.

Key operational vulnerabilities

1. Inventory accuracy failures: When website inventory doesn't match physical stock, it creates discrepancies that fraudsters exploit. Perpetrators may claim they collected items that were never in stock, leading to chargeback disputes that are difficult to refute without precise evidence.
2. Staging area blind spots: Orders are often staged in high-traffic backrooms. Without strict access control, these areas become prime targets for internal theft.
3. Handoff documentation gaps: The most critical vulnerability occurs at the point of transfer. Many retailers verify identity by simply asking for a name, without checking ID.
4. Curbside payment risks: Payments processed vehicle-side using mobile POS devices lack the controlled security of a fixed register.

Emerging fraud typologies targeting curbside and BOPIS

As retailers harden their physical storefronts, criminals pivot to exploiting the ambiguity of hybrid fulfillment. Understanding these specific fraud types is the first step in guarding these hybrid fulfillment models against fraud and theft.

Returns fraud and "friendly fraud"

Returns fraud has become a substantial drain on margins. Recent data indicates that as many as one in nine returns are fraudulent (Source: CBS News). In BOPIS contexts, this often manifests as returning empty boxes or claiming items were damaged during the curbside handoff.

Identity fraud and deepfakes

Account takeover attacks allow criminals to place orders using stolen credentials. A disturbing new trend involves using AI to bypass security. Synthetic identity document fraud jumped 378% in Q1 2025 (Source: Windsor Private Wealth). Fraudsters use these sophisticated fake IDs to collect high-value BOPIS orders, bypassing visual checks by untrained staff.

Internal theft and collusion

Internal theft accounts for approximately 28.5% of retail shrinkage (Source: Business Dasher). In BOPIS models, employees may mark items as "picked" but divert them for personal use, or collude with external accomplices to hand off unpaid merchandise at the curb. Sweet-hearting theft—where staff hand off extra items—is particularly difficult to detect without integrated video evidence.

Strategies for securing BOPIS workflows

Effective retail loss prevention strategies require a layered approach combining physical security, process discipline, and advanced technology.

1. Implementing multi-factor identity verification

Relying solely on an order number is insufficient. Best practices for secure BOPIS transactions involve multi-factor verification.

• Digital verification: Require customers to authenticate via SMS or email app notification upon arrival.
• Physical ID checks: Train staff to verify government-issued ID against the order name for high-value items.
• Visual confirmation: Use AI camera systems to capture the exchange, providing a timestamped visual record of the customer receiving the goods.

2. Hardening staging zones

The staging area is a high-risk zone for shrinkage.

• Segregation: Separate BOPIS inventory from general backstock to prevent accidental sales or misplacement.
• Video coverage: Deploy cameras with "Person Enters No-go Zones" analytics to trigger alerts if unauthorized personnel enter the high-value staging cage.

3. Optimizing curbside handoffs

Curbside pickup presents unique obstacles due to the lack of physical barriers. Parking lot security cameras equipped with license plate recognition for retail are essential.

• Designated bays: Clearly mark parking bays and ensure they are covered by high-definition video systems.
• PCI DSS 4.0 compliance: As of March 2025, full enforcement of PCI DSS 4.0 is in effect (Source: Feroot). Ensure all mobile POS devices used at the curb meet these rigorous client-side security standards to prevent payment data theft.
• Speed and visibility: Monitor wait times. Long wait times increase the risk of customers leaving or confusion that fraudsters can exploit.

Leveraging Video AI Agents for loss mitigation

Video AI helps modern loss mitigation teams become more effective. Unlike passive camera systems, a video AI platform actively monitors processes and alerts staff to anomalies.

Capabilities for BOPIS security

Integrating video with POS and inventory data

A stronger approach integrates video data with Point of Sale (POS) and Order Management Systems (OMS). By correlating video footage with transaction logs, retailers can identify phantom pickups (transactions marked as "complete" with no corresponding vehicle) and point of sale fraud.

Comparison: Spot AI vs. traditional security measures

When evaluating solutions for safeguarding BOPIS and curbside operations, compare modern Video AI against legacy approaches.

Take action

The expansion of BOPIS and curbside pickup is a permanent evolution of the retail landscape. As these channels grow, so do the associated risks. For Loss Prevention Directors and VPs, reactive security measures are no longer viable. The rise in organized retail crime and sophisticated fraud schemes demands an intelligent, integrated, and anticipatory response.

Securing these hybrid fulfillment models requires a holistic approach: tightening operational SOPs, ensuring rigorous identity verification, and leveraging technology that turns video footage into actionable intelligence. By adopting Video AI, retailers make shift practices more consistent, support compliance, and detect potential issues in real time—protecting inventory, the bottom line, and customer trust.

"When I joined the company, we had basic cameras. When I got Spot AI, it's serving up insights on a silver platter that used to take hours to find."
- Brock, Allied Stone

See how Spot AI's video AI platform can help you secure BOPIS and curbside operations. Request a demo to experience the technology in action.

Frequently asked questions

What are the best practices for securing BOPIS transactions?

Best practices include implementing multi-factor identity verification at pickup, segregating BOPIS inventory in secure staging zones, and using video AI to monitor the chain of custody from picking to handoff. Real-time inventory synchronization also helps avoid disputes regarding stock availability.

How can retailers mitigate fraud in curbside pickup?

Retailers can mitigate curbside fraud by using mobile POS devices for vehicle-side verification, implementing clear signage and designated bays monitored by video AI, and training staff to verify customer identity before releasing merchandise. Tracking vehicle arrival and dwell times can also flag suspicious activity.

What technologies are effective for BOPIS loss mitigation?

Effective technologies include video AI for real-time incident detection, RFID tags for inventory tracking, and integrated POS systems that correlate transaction data with video evidence. Identity verification software that scans government IDs is also critical for high-value transactions.

How can identity verification enhance BOPIS security?

Identity verification ensures that the person collecting the order is the legitimate purchaser. Advanced systems can detect fake IDs and flag discrepancies between the customer and the ID photo, guarding against account takeover fraud and unauthorized collections.

What compliance requirements must be met for BOPIS operations?

Retailers must adhere to PCI DSS 4.0 for secure payment processing, ensuring encryption of cardholder data during both online and curbside transactions. Full enforcement of PCI DSS 4.0 as of March 2025 places specific emphasis on client-side security for devices used in curbside environments.

About the author

Sud Bhatija is COO and Co-founder at Spot AI, where he scales operations and GTM strategy to deliver video AI that helps operations, safety, and security teams boost productivity and reduce incidents across industries.