Some stores are turning to artificial intelligence to help stop shoplifting, using an app and their store's existing camera system to catch customers concealing items.
Big K's, a liquor store in Buckeye, is one of the first Arizona businesses to install a system made by Veesion. The store owner told ABC15 that he's already detected and stopped several shoplifters, and the AI technology could help him save thousands of dollars a year.
"We don't have to worry about theft anymore," said Big K's owner Nidal Abdelkarim.
National Focus on Shoplifting
Stopping retail theft has been a major focus of police agencies and politicians nationwide. There has been a steep rise in retail theft in a handful of major cities. New York and Los Angeles have seen a 60% increase in shoplifting reports over the last four years.
Shoplifting reports are down significantly in Arizona over the same period, 2019-2023. According to Arizona Department of Public Safety data, there has been a nearly 30% reduction statewide. The trend varies based on the city. In Phoenix, reported shoplifting cases are down 46% over the four-year period, but some cities have seen increased reports of shoplifting. Scottsdale saw a 23% increase, according to data collected by DPS.
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Arizona stores lost $1.5 billion to retail theft in 2023, according to Capital One Shopping Research.
Last week, Phoenix police and Maricopa County prosecutors announced the indictment of three women in "Operation Makeup Break Up." The women are accused of running an operation that stole more than $560,000 in cosmetics from local stores.
"This is a massive problem in our community, and we're determined to put an end to it," said Maricopa County Attorney Rachel Mitchell.
Mitchell prioritized prosecuting organized retail theft cases, where people steal items from a store for reselling. Charges were filed in 281 cases in 2023, which is more than double the 110 cases from 2021.
When ABC15 Senior Investigator Melissa Blasius asked how much responsibility should be on store owners to have better security, interim Phoenix Police chief Michael Sullivan said, "Absolutely, stores should do things that are smart to protect their products," but he puts most of the blame on the thieves themselves.
Crimefighting with AI
At Big K's, Abdelkarim estimated the annual losses to theft was around $40,000.
"I'm so busy, and I only have two eyes," Abdelkarim said.
He turned to a company called Veesion, which uses artificial intelligence to monitor multiple security cameras simultaneously. Unlike humans, AI needs no breaks, no sleep, and no holidays.
Here's how it works: A small box connects to the store's existing camera system and the internet. When Veesion's algorithm detects customers making certain body movements, it sends alerts to an app, which is downloaded by store managers and owners. The alerts often come in within 15 seconds of the suspicious activity.
"We've fed our algorithm with millions of examples," said Benoit Koenig, Veesion's co-founder.
Koenig said the system can detect a client concealing an item in a backpack, in a purse, in pants, or a jacket. It can also recognize if someone removes an RFID security tag or consumes a product by eating or drinking on the shopping floor.
While there are some false alarms, Abdelkarim said he has caught 10 to 15 shoplifters in the first few weeks of use. Some were regular customers.
"There are customers that would come every day and spend money, and we're shocked," Abdelkarim said. "We're shocked with that result, but I'm glad that we caught them."
"If you count, four visits a week, $20 stolen each time, you're facing a sudden drain of over $4,000 a year," Koenig said.
Store owners can save Veesion's video as evidence for police. Abdelkarim has found success in approaching the thieves with the app in hand.
"Usually, they apologize they give it back right away," Abdelkarim said.
The Veesion system charges Big K's $200 a month for the service, but Abdelkarim said he's already saved more in recovered shoplifting items than he spent in the AI-driven app.
You can reach Melissa by email at melissa.blasius@abc15.com or call 602-803-2506. Follow her on X (formerly Twitter) @MelissaBlasius or Facebook.
Editor's Note: After originally airing this story, ABC15 became aware of an effort by Veesion to hire actors to portray store owners for future TV interviews about its AI shoplifting detection products. Veesion tells ABC15 it "was a big mistake and it will never happen again." ABC15 verified Big K's in Buckeye is owned by the man we interviewed and his family. A store employee confirms they continue to use Veesion's technology.
