Retailers Unite Against $31 Billion Loss Due to Theft and Fraud

Strategic Insights -

Retailers in the United States are collectively losing over $31 billion each year due to employee theft, shoplifting, vendor fraud, and administrative errors, according to a recent survey. To combat this issue, Netezza Corporation and Infoglide Software have formed an alliance to provide advanced fraud detection solutions to retailers. By leveraging Netezza's Performance Server system and Infoglide's Bladeworks, retailers can quickly analyze large volumes of data, detect complex patterns of fraud, and minimize losses.

Key Takeaways:

  • Netezza and Infoglide have formed an alliance to offer retailers advanced fraud detection solutions, leveraging Netezza's Performance Server system and Infoglide's Bladeworks enterprise software.
  • The combined offering enables retailers to perform comprehensive, complex analysis on large volumes of data, detecting hidden relationships between customers, employees, vendors, and transactions.
  • Infoglide's Bladeworks is a leading enterprise software that enables organizations to apply business intelligence in an operational environment by integrating real-time transactional data with remote and disparate historical data.
  • The National Retail Security Survey (2002) found that a combination of employee theft, shoplifting, vendor fraud, and administrative error costs United States retailers over $31 billion.
  • Tony Allen, Vice President and Business Unit Manager at Infoglide, stated that leading retailers are leveraging their technologies together, and there is growing interest in enhanced fraud detection solutions within the retail sector.
  • Andy Winans, Vice President of Retail & CPG at Netezza, emphasized that the combined offering of the NPS system with Infoglide's Bladeworks offers retailers faster, more complex data analysis and enhanced fraud detection at the lowest total cost of ownership.

Statistics:

  • $31 billion: The estimated annual loss due to employee theft, shoplifting, vendor fraud, and administrative errors for United States retailers (National Retail Security Survey, 2002).
  • 10-50 times: The performance increase of the Netezza Performance Server system compared to traditional data warehouses.
  • 1: The fraction of the cost of traditional data warehouses for Netezza's enterprise-class data warehouse appliances.
  • 1996: The year Infoglide Software Corporation was incorporated.
  • 2002: The year the National Retail Security Survey was conducted.

Sources:

  • National Retail Security Survey, 2002
  • Netezza Corporation press release
  • Infoglide Software Corporation press release
  • Infoglide Software Corporation website (www.infoglidesoftware.com)
  • Netezza Corporation website (www.netezza.com)