The rapid adoption of Buy Online, Pick Up In-Store (BOPIS) and curbside pickup has significantly changed retail operations. While these fulfillment models reduce shipping costs by 50-70% compared to home delivery (Source: Cotinga), they have introduced complex security vulnerabilities that organized retail crime (ORC) groups are quick to exploit. For retail security leadership, the hurdle is no longer just about protecting physical inventory on shelves; it is about securing a hybrid process that spans digital ordering, back-of-house staging, and vehicle-side handoffs.

As a Loss mitigation Director or VP, you are tasked with protecting assets in an environment where retailers report an 18% increase in average shoplifting incidents year-over-year (Source: National Retail Federation). The complexity of protecting BOPIS and curbside pickup operations from fraud and theft requires moving beyond traditional observation to practical, data-informed mitigation.

Addressing core loss mitigation pain points with video AI

Before examining specific BOPIS strategies, it is critical to address the key pain points facing Loss mitigation leadership today. The operational shift to omnichannel fulfillment exacerbates existing issues, but video AI offers direct solutions.

1. Moving beyond reactive recording to help mitigate loss

The Pain Point: Traditional camera systems document theft after it happens, but they do little to mitigate active losses. By the time you review the footage, the inventory is gone, and the perpetrators have left the premises.

The Solution: Spot AI helps teams move from reactive response to earlier detection. By using AI Teammates like "Loitering" and "Person Enters No-go Zones," the system detects suspicious behavior in staging areas or curbside zones in real time. This allows your team to receive timely alerts and intervene earlier to mitigate the risk of loss.

2. Lowering overwhelming false alarm rates

The Pain Point: High false positive rates from legacy systems create alert fatigue. When teams are overwhelmed with irrelevant notifications, they can begin to ignore them, leaving stores vulnerable when legitimate incidents occur.

The Solution: Context-aware computer vision filters out noise. Spot AI identifies specific behaviors and vehicles with high accuracy, lowering false positives significantly. This ensures that when your team receives an alert about unauthorized access to a BOPIS storage cage, it is a verified event requiring attention.

3. Solving the omnichannel fraud mitigation gap

The Pain Point: BOPIS and curbside pickup create new vectors for fraud that traditional cameras cannot detect, such as "friendly fraud" at the curb or inventory shrinkage in staging areas.

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

4. Streamlining time-consuming manual investigations

The Pain Point: Investigating a claim of non-receipt or internal theft often requires reviewing 4-8 hours of footage, creating a massive operational drain that pulls staff away from proactive work.

The Solution: Our Intelligent Video Recorder and smart search capabilities significantly shorten investigation time. You can 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, not hours.

The operational context of BOPIS and curbside vulnerabilities

To effectively secure BOPIS processes, one must understand the operational mechanics that create risk. BOPIS allows customers to purchase items online and collect them at a designated store location, while curbside pickup (BOPAC) keeps the customer in their vehicle.

These models are economically vital. Curbside pickup costs retailers approximately $3–$6 per order, compared to $8–$12 for standard home delivery (Source: Cotinga). However, the speed required to execute these orders—often within minutes—creates friction points where security protocols are frequently bypassed.

Key operational vulnerabilities

1. Inventory accuracy failures: When website inventory does not 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 or dedicated zones. Without strict access control, these areas become prime targets for internal theft or "grab-and-go" theft by unauthorized personnel.

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 or capturing a signature. This lack of documentation makes it hard to defend against "did not receive" claims.

4. Curbside payment risks: In curbside models, payments are sometimes processed vehicle-side using mobile POS devices. This environment lacks the controlled security of a fixed register, increasing the risk of chargebacks and payment fraud.

Emerging fraud typologies targeting curbside and BOPIS

As retailers harden their physical storefronts, criminals have pivoted 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, with some merchants reporting that 20% of all refunds are fraudulent (Source: WeSupply). In the context of BOPIS, this often manifests as:

1. Bracketing: Ordering multiple variants with the intent to return most, increasing operational costs.

2. Wardrobing: Using an item once and returning it as new.

3. Empty box returns: Returning packaging without the merchandise, exploiting lax curbside return inspections.

Identity fraud and account takeover

Account takeover (ATO) attacks allow criminals to place orders using stolen credentials. Since the fraudster intends to pick up the goods personally, they bypass shipping address verification checks. Modern ID fraud mitigation technology can detect up to 95% of fake documents (Source: IDScan.net), yet many pickup desks still rely on visual checks by untrained staff.

Internal theft and collusion

Internal theft accounts for approximately 29% of retail shrinkage (Source: National Retail Federation). 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. The lack of clear video evidence at the specific moment of handoff often makes these incidents difficult to prosecute.

Strategies for securing BOPIS workflows

Effective loss mitigation in this domain requires a layered approach that combines 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.

1. Digital verification: Require customers to authenticate via SMS or email app notification upon arrival.

2. Physical ID checks: Train staff to verify government-issued ID against the order name for high-value items.

3. Visual confirmation: Use video 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.

1. Segregation: Separate BOPIS inventory from general backstock to mitigate accidental sales or misplacement.

2. Access control: Restrict entry to authorized fulfillment staff.

3. 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.

1. Designated bays: Clearly mark parking bays and ensure they are covered by high-definition video systems.

2. Mobile POS integration: Use integrated mobile devices that require staff to scan the order and the customer's confirmation code at the car window, creating a digital handshake.

3. Speed and visibility: Monitor wait times. Long wait times increase the risk of customers leaving or confusion that fraudsters can exploit.

Leveraging video AI 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 is integrating video data with Point of Sale (POS) and Order Management Systems (OMS). By correlating video footage with transaction logs, retailers can identify:

1. Phantom pickups: Transactions marked as "complete" in the POS with no corresponding vehicle or customer visible on video.

2. Sweethearting: Video evidence of staff handing off more bags than the order contains.

3. Refund fraud: Verifying the condition of returned items at the service desk against the video record of the return transaction.

Comparison: Spot AI vs. traditional security measures

When evaluating solutions for safeguarding BOPIS and curbside operations from criminal activity, it is helpful to compare modern Video AI against legacy approaches.

Conclusion

The expansion of BOPIS and curbside pickup is not a temporary trend but a permanent evolution of the retail landscape. As these channels grow, so do the risks associated with them. For Loss mitigation Directors and VPs, relying on reactive security measures is no longer a viable strategy. The rise in organized retail crime and sophisticated fraud schemes demands a response that is intelligent, integrated, and anticipatory.

Securing these hybrid fulfillment models requires a holistic approach. This involves tightening operational SOPs, ensuring rigorous identity verification, and, most importantly, 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 time—protecting not just their inventory, but their bottom line and customer trust.

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. Additionally, ensuring real-time inventory synchronization 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 with 95% accuracy (Source: IDScan.net) 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 v4.0 for secure payment processing, ensuring encryption of cardholder data during both online and curbside transactions. Additionally, data privacy regulations like GDPR and CCPA must be followed regarding the collection and storage of customer identification data.

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.