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A video camera records in the warehouse all the time, and I have a tight inventory control system. The problem is, I'm not going to review hours of video when theft could probably be hidden from the camera anyway, and when inventory goes missing, it could always be because of a mistake in the last count, etc.
A video camera records in the warehouse all the time,
This could be converted to motion detection for each camera. Add dummy camera locations and move the actual cameras around as needed. They will become just a part of the scenery and people will steal right in front of them. The most trusted employees are the greatest threat, especially if they are not happy and you don't recognize that fact. The most experienced employees will know not to try to hide the theft. They will take product in hand as if business as usual, walk it all the way across the warehouse and into their bag. Can your camera(s) follow the movement from camera to camera?
Small losses could easily be counts. Regular losses are one or more thieves that will go after more and more. Restrict 'employee area'. Make it harder to secrete and then walk out.
Bookkeeping embezzlement often starts as a one-time small amount. Once successful, they feel smarter, more powerful, and then it spins out of control.
Assume that you are 'lawyered up' regarding any disclosure requirements of employee monitoring.
There will be false positives and you will have to verify each case separately. Perhaps it will be more efficient than a network of cameras, less intrusive and easier to monitor.
Again depends on your budget really.
Work with them in the first instance as they may come up with some great ideas as to how the inventory and system could be tightened.
What you do is give emotional or material incentives to susceptible employees to become snitches. Once this becomes known nobody knows who is watching and who to trust which can cut down on theft.
Unfortunately, it also fosters a negative and paranoid environment which increases turnover and hurts productivity. Violence would probably not be an issue since people leave at the end of the day, but there are exceptions of course.
Eventually any thieves you have will find this blind spot and use it to stash things in their bags or whatever, right in front of your hidden camera with the motion sensor.