AI in Retail Loss Prevention Quiz

Answers and explanations appear as you take the quiz.

1. Which statement about retail shrink is accurate?
   • It refers only to shoplifting
   • It refers only to employee theft
   • It includes customer theft, employee theft, vendor fraud and administrative error
   • It means profit gained from markdowns
2. What is ticket switching at self-checkout?
   • Ringing up an expensive item under a cheaper code, such as a produce code
   • Swapping receipts with another customer
   • Moving to a different lane partway through
   • Using an expired coupon
3. What action did the US FTC take regarding Rite Aid in December 2023?
   • Required it to expand facial recognition
   • Fined it for having too few cameras
   • Approved its watchlist practices
   • Banned it from using facial recognition for surveillance for five years
4. Why can an accurate theft-detection model still produce more false alerts than true ones?
   • Cameras record only in black and white
   • Honest transactions vastly outnumber thefts, so even a small false-positive rate adds up
   • Models are never tested before rollout
   • Theft is more common than honest shopping
5. What does exception-based reporting analyze?
   • Transaction logs for unusual refunds, voids and discounts
   • Traffic in the parking lot
   • Local weather forecasts
   • Shelf restocking schedules
6. What is sweethearting?
   • A loyalty discount for repeat customers
   • A seasonal marketing campaign
   • A cashier letting a friend or relative skip paying for items
   • A promotion bundle for couples
7. Why do many self-checkout systems show a replay on screen instead of calling security?
   • Replays are legally required everywhere
   • It lets honest mistakes be corrected without confrontation
   • Security guards cannot see the lanes
   • It speeds up restocking
8. How should alert thresholds generally be set?
   • Exactly the same in every store and situation
   • As low as possible to catch everything
   • Based on the customer's age
   • Based on the cost of each outcome, so gentle prompts can tolerate more false positives than staff interventions