How Blockchain Can Lower Holiday Theft Losses for Your Business
There are many things about the holiday season that make it a magical time of year. Pretty lights and decorations as well as the general holiday spirit in the air all contribute to the wonder of the season.
But as people hustle and bustle about making holiday purchases theft is also a concern. Shoppers may be carrying extra cash or credit cards to buy gifts making them easy prey for criminals.
Business owners must be wary as well. Thieves might target them during the holidays as well. Inexperienced help hurrying to complete transactions, long shopping lines, and more noise are just a few distractions that can play into increases in theft.
Could that be changed? Is it possible blockchain can lower holiday theft losses for your business?
What is Blockchain
Blockchain uses cryptography, or computer codes, in a digital record that is secured because of decentralization. In layman’s terms, using blockchain to buy stuff is secure because purchases are made over multiple computers rather than only one.
Why it is Secure
In order to understand how blockchain can lower holiday theft losses for your business you need to know why using it is secure.
Let’s use a credit card purchase as an example. First, a shopper presents a credit card to make a purchase. You, the retailer, run the credit card through a credit card terminal.
At this point, information flows from your business to your bank, then to the credit card agency, and on to the shopper’s bank and then reverses back to your business completing the transaction. This is all done through a computer or server at each location.
If your business is all conducted online rather than in a brick and mortar shop, everything is done on computers which makes it just as vulnerable to theft.
Unfortunately, along the way, computers can be hacked and the customer’s information stolen. Or, your business could be targeted and your business bank account could be compromised. Any of these scenarios cost you money in theft losses.
On the other hand, as I mentioned before, blockchain transactions are decentralized. This means they are not conducted on one computer at each location but in bits and pieces on multiple computers.
The use of multiple computers makes information nearly impossible to be stolen or misused. Obviously it is safer than using cash as well because thieves can steal that form of payment easier even than a credit card.
How it Can Lower Holiday Theft Losses
It makes sense to use blockchain to lower holiday theft losses for your business. Doing so can prevent losses from theft in multiple ways.
Cash can be stolen from a shopper or your business simply by a thief pocketing it. Credit cards, debit cards, and gift cards can be taken the same way. In addition, checks, cash, and credit card transactions can be forged. Plastic cards can also be hacked.
How do you buy merchandise for your business? If you use a company credit card, it could be just as likely to be stolen or misused as that of a potential customer.
Secure transactions using blockchain can lower holiday theft losses for your business, as you can see. Therefore, as blockchain becomes available in the future, you should consider adopting it in your business too.