DIGIOP CARBON Helps Busy Hardware Store Catch Refund Fraud

The Problem

DIGIOP CARBON’s cloud-based data analytics can reduce exception report-review time to about 18 minutes per day, but when you’re short-staffed during peak season, it’s easy to fall behind on this important task. That’s what happened to one of DIGIOP’s customers, a family-owned hardware store chain in northeastern Illinois.

Knowing that this customer was struggling to keep up with daily exception report reviews – and concerned that the customer might be losing money due to internal theft – DIGIOP proposed a faster way to get the details they needed.

The Solution

Internal theft is commonly associated with specific types of exceptions. CARBON allows users to search and filter by exception type, time of day, cashier, and other variables. DIGIOP advised the client to do a “spot-check” of refunds by cashier – if any suspicious anomalies existed, DIGIOP CARBON would find them.

The Process

CARBON’s refund-by-cashier report for all locations established what a normal ranking of refunds should look like. The data showed that as a percentage of overall sales, refunds for each cashier should be below 3%, but three cashiers were above the 3% threshold. In less than 10 minutes, CARBON produced evidence of suspicious POS exceptions that merited further investigation.

(This graph shows refunds per cashier at one store location. Of 15 cashiers, three had refunds in excess of 3% of their total transactions. An inspection of eight transactions for one cashier revealed seven of them were fraudulent.)


CARBON’s transaction report with accompanying video footage showed that the seven fraudulent refunds totaled $113.98. On average, a dishonest cashier steals $2,400 before being caught. Thanks to CARBON’s combination of transaction data and video, the client was able to find these small, incremental thefts that might have continued indefinitely. 


We designed CARBON for the everyday user – you don’t have to be a data scientist or loss prevention expert to run reports and interpret the findings. CARBON finds the exceptions you want to track, pairs them with video, and delivers a daily report that you can review in 20 minutes or less.

Do you know what’s happening at your registers? Find out how DIGIOP CARBON can help you quickly identify and deter internal theft.

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