When we think about security solutions in general and in retail in particular, there is no doubt that facial recognition ranks among the top trends, and investment in these technologies has been growing significantly in Brazil and around the world, driving many changes in traditional CCTV (Closed-Circuit Television) monitoring models.
To give you an idea of this scenario, just last year, more than US$7.6 billion were invested in facial recognition technologies worldwide. And the expectation is that this market will grow 16.2% per year until 2029, according to a report by consulting firm Mordor Intelligence.
This significant increase demonstrates the confidence of governments and the market in the effectiveness of facial recognition for improving public safety and asset protection.
Retail, in turn, is one of the segments that most drives the growth of sophisticated facial recognition solutions, which are already being integrated into new CCTV monitoring operations.
In this article, we analyze this trend and its benefits for retail, showing how a CCTV system with facial recognition features can directly assist in companies’ loss prevention strategies.
Throughout this post, you will learn about:
- How a CCTV system works;
- The benefits of Smart Video Analytics for retail;
- How facial recognition has contributed to loss prevention;
- The alignment between LGPD and retail security policies;
- The role of smart triggers;
- How Inwave can support your company.
How does a CCTV system work and what is its role in retail?
Closed-Circuit Television (CCTV) is a widely used technology in retail for monitoring and security. Basically, this model consists of a system of cameras installed at strategic points, transmitting real-time images to monitoring centers.
Initially, CCTVs were simple analog systems, but with technological advances, they evolved into more complex digital solutions, incorporating features such as high-definition recording, remote access, artificial intelligence, and facial recognition.
Consequently, this evolution has brought more effectiveness to loss prevention, as it enables faster incident identification.
In addition, by studying risk factors and triggers, it is possible to adopt preventive measures that help retail address one of its biggest challenges: operational shrinkage and losses.
For example, the 2024 Abrappe Retail Loss Survey in Brazil indicated that the retail sector accumulated losses exceeding R$34 billion throughout 2023.
This figure represents a 10% increase in losses and highlights the need for more assertive management of risks and operational failures affecting physical stores’ daily operations.
Hence the importance of evolving CCTV infrastructures that, through integrated smart analytics and facial recognition, can even provide insights into customer behavior, non-compliance, and support in defining risk areas that require higher levels of perimeter protection.
Thus, it is no exaggeration to state that CCTV has become a multifunctional security tool with the addition of facial recognition, since it contributes not only to loss prevention but also to the overall security ecosystem of stores, bringing peace of mind to consumers, employees, and retail leaders.
Smart video analytics and its benefits
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Smart Video Analytics represents one of the main innovations in the CCTV field, combining algorithms and facial recognition to automatically analyze the images captured by cameras.
This makes it possible to identify patterns and suspicious behaviors without constant human intervention, increasing operational efficiency.
Among the features of Smart Video Analytics are identifying visitor behaviors such as dwell time in certain areas and mapping foot traffic, in addition to facial recognition, which enhances strategic analysis and retail security resources.
In the context of loss prevention, it also allows a faster and more effective response to incidents, minimizing damage and losses.
Moreover, Smart Video Analytics—especially when combined with access control features, motion detectors, and real-time facial recognition—enhances efficiency and reduces retail losses.
By providing accurate data on customer flow and high-traffic areas, it can even assist in proper staff allocation, improving service, and designing assertive security policies.
This integration of security and strategic intelligence reinforces the importance of Smart Video Analytics as a tool that is here to stay in retail.
How do facial recognition cameras work and what is their role in loss prevention?
In general, facial recognition cameras operate by capturing and analyzing people’s facial features, turning this information into biometric data through AI algorithms, while keeping such information anonymous from a legal standpoint.
In retail, this technology has been used to quickly and accurately identify individuals with a history of theft within the chain, enabling immediate preventive actions.
In other words: in addition to enhancing security, facial recognition in CCTV systems directly reduces retail losses by enabling the rapid identification of suspects and the prevention of incidents before they occur.
It also helps create a safer, more comfortable shopping environment for customers, bringing greater operational efficiency to retail.
It is worth noting that the use of facial recognition in retail must be carried out ethically and in compliance with current legislation, ensuring consumers’ privacy and rights.
Transparency in using this technology strengthens trust between companies and their customers, fostering a more solid and positive relationship.
LGPD and facial recognition: key points
In this regard, the General Data Protection Law (LGPD) sets clear guidelines for processing personal data in Brazil, including biometric information obtained through facial recognition.
For this technology to comply with LGPD, companies must clearly state the use of cameras and facial recognition in their facilities.
The use of visual communication in stores—such as signs, posters, and notices indicating that visitors are being filmed—is recommended.
In addition, retailers must implement robust security measures to protect biometric data against unauthorized access and leaks.
That said, LGPD provides legal backing for using data collected by facial recognition technologies in company security policies, as long as it is applied to ensure “fraud prevention and security of the data subject, in identification and authentication processes in electronic systems.”
It is important to emphasize that agencies such as the National Data Protection Authority (ANPD) have been overseeing the use of facial recognition systems in several sectors, underlining the importance of compliance to avoid sanctions and maintain consumer trust.
Therefore, companies adopting facial recognition must pay close attention to legal and ethical requirements, ensuring responsible and transparent use in their CCTV systems.
This not only ensures compliance with LGPD but also strengthens the company’s reputation in the market.
Smart triggers: security strategies focused on operational efficiency
The evolution of CCTV has driven the use of smart triggers in retail security strategies aligned with facial recognition.
Basically, these are processes that speed up the detection of suspicious events and alert monitoring centers for immediate verification.
Unlike traditional systems, which depended on continuous observation of footage, predefined triggers enable faster and more efficient responses to risky situations.
For example, when detecting the entry of a person previously registered in the system due to prior incidents such as theft, the system alerts remote centers for instant verification.
This proactive approach significantly improves loss prevention, reducing dependence on constant human monitoring and increasing operational efficiency.
Facial recognition and the future of retail security
As we have seen, facial recognition is already optimizing security and retail operations in Brazil and around the world, promoting greater efficiency, loss reduction, and a more welcoming environment for both consumers and employees.
And Inwave is your company’s partner in providing efficient CCTV solutions that integrate facial recognition and other smart features, including:
- Alarms with motion detectors;
- Access control and automated management of restricted areas;
- Video analytics for detecting suspicious behaviors and non-compliance;
- Plus the ability to customize resources tailored to each client’s reality.
Within this context, it is safe to say that the future of loss prevention in retail is directly linked to the integration of smart facial recognition, strategic triggers, and features that modernize CCTV systems.
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