New technology available to combat employee theft and workplace violence.

1. The Future of Safety Enhancement
and Shrink Mitigation
The Benefits of Advanced
Personnel Screening Technologies in the
Retail Distribution Markets
WHITE PAPER
July 2015

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ISCON Imaging, Inc. is a manufacturer of patented infrared (IR) screening solutions designed to help retailers,
distribution centers and warehouses prevent workplace violence and reduce merchandise theft.
The potential of merchandise loss and workplace violence drives many large retailers and distribution centers to seek
new technology solutions to mitigate these risks. Many organizations currently operate with no screening technology,
choosing instead to leverage video surveillance to assist with monitoring and investigative purposes. Others may
incorporate screening solutions but often deploy antiquated, walk-through metal detectors. Both of these solutions
cannot effectively prevent theft or ensure workplace safety.
In addition to the risks outlined above, there are human resource, liabilityand legal challenges involved with preventing
loss and violence. Many issues stem from privacy concerns, the legal implications of pat downs and inaccurate
information provided to employees.
Executive Summary

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There has been very little innovation in screening technology since the flurry of development after the 9/11
attacks. Most of what has been introduced was targeted toward aviation security and a majority of this is not
suitable for broader commercial screening due to the issues mentioned above including privacy, health and the
need for “pat downs.”
ISCON screening solutions are developed specifically for commercial screening applications and are purpose-built
for the dynamic security requirements of retailers, warehouses and distribution centers, maximizing workplace
safety and loss prevention strategies. ISCON’s patented technologies strengthen the scanning process, increasing
throughput, eliminating privacy and radiation concerns, and enhancing safety initiatives. Its SecureScan and
FocusScan scanning solutions detect both metallic and nonmetallic objects hidden beneath clothing, giving users
unprecedented insight into information that can protect physical assets and employees.
With hundreds of distribution centers and retail warehouses in the United States alone, an a rise in
employee violence and shrink, the need for asolution to secure these facilities is paramount.
A Rise in Innovation

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Today’s global environments is filled with increasingly dangerous and violent threats. Whether it is foreign or
domestic terrorism, crime or workplace violence, incidents are on the rise. Active shooter incidents continue to
be a significant problem for a wide variety of organizations. The FBI reported that between 2000 and 2013,
there were 160 active shooter incidents, resulting in 468 deaths. In the United States alone there are 2 million
victims of workplace violence annually, resulting in an average of two deaths and 87 injuries per day, according
to the U.S. Bureau of Labor Statistics.
Another challenge is controlling theft, both external and internal. Shrink, losses resulting from theft, and loss
prevention, theft mitigation in retail, are common terms when discussing internal and external theft. According to
the recent Global Retail Theft Barometer, worldwide retail shrinkage accounted for $119 billion in 2014. Losses in
the United States alone were $42 billion. Ofthat, almost43 percent of shrink was attributed to employee theft.
While controlling loss, organizations must provide a safeworkplace environmentfor its employees. Thisis especially
the case in distribution centers and warehouses that employhundreds or thousands of employees, often atlow
wage levels, thatcome from a wide varietyof ethnic, racial andreligious backgrounds.
Threat Landscape

5. Many warehouses are more than one million square feet in size and house up
to $100 million in merchandise, which ranges from clothing and electronics to
handbags and pharmaceuticals.
With so much attributed to loss developing a comprehensive security strategy
and identifying technology that can effectively detect merchandise theft has
proved challenging. In addition, there are additional HR-related challenges
including:
• How to avoid the need to “pat down” an individual to identify concealed
items.
• How to screen a large and diverse employee population in a fair and
unbiased way.
• How to establish strong “probable cause” of a theft or threat situation
before initiating additional security measures.
• How to detect the potential loss of materials and merchandise.
• How to establish robust protocols to handle theft incidents and, more
importantly, potential workplace violence incidents.
• How to detect, but not alert, when a weapon or contraband is being
brought into the facility to allow silent initiation of pre-emptive security
procedures to contain the threat.
• How to balance maintaining an employee friendly environment while
providing a safe work place and protecting assets.
In 2012, 41% of
retail shrink was
attributed to
employee theft.

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It is important to addressfraud and safety issues clearly
and proactively. If not, a company may be at risk
for profiling and discrimination claims, as well as
an unproductive and negative workplace culture.
Many forward-thinking organizations aggressively
seek technologies and expertise to address these
issues head on. In fact, global spending on LP activities
is currently $28.3 billion annually. Spending on
security equipment alone accounts for $8.76 billion.
The retail distribution industry is also growing, primarily
due to the exploding increase in online
commerce. In the United States, employment in
distribution centers grew from 119,493 to 595,325
from 1998 to 2006 — an annual growth rate of
22 percent. During that time the number of
distribution centers grew by almost 10 percent per
year. Almost all large retail companies such as
Walmart, Amazon, Office Depot and AutoZone
have many distributions centers across the country
and globally, handling large volumes of merchandise.
Major retail distribution companies employ visual
inspection to identify potential threats and theft. This
involves stationing security personnel at entrances and
exits, and visually looking for “bumps and lumps” on an
employee’s clothing.
The downsides to this method include:
• An item must be noticeably protruding to be
detected.
• No ability to detect what the item is.
• No solid probable cause for further investigation.
• High risk of profiling or discrimination claims due to
arbitrary nature of inspection.
• If an individual has a weapon, they may opt to act
immediately if confronted, eliminating the opportunity
to initiate pre-emptive security measures.ffffffff
Screening Methods

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The archway metal detector (shown) is the only
personnel screening detection technology currently
used on a widespread basis. These units are priced
from $5,000 to $8,000, and are simple to deploy.
These portals can screen one employee in less than
five seconds except when the system sounds an alarm.
Then it can take several minutes for personnel to
determine whether the person is approved to enter or
should be detained for further investigation. The
clearing process is often carried out with a hand wand
(illustrated).
The drawbacks of archway metal detectors for the
retail distribution market include:
• They can only detect metal, and only above a certain size
and restricted composition.
• They provide a light bar and/or audible alarm only. Do not
determine what has been detected.
• The audible alarm alerts an officer that something has
been detected. This public notification is a concern with the
detection of weapons or contraband.
• They routinely pick up benign items like buttons and
zippers, for example. These false positives significantly slow
the screening process.
• Require a lengthy and potentially confrontational clearing
protocol if an alarm sounds.
• Clear identification of the alarm cause is impossible
without voluntary removal of item.
Walk-Through
Metal Detectors

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Millimeter wave scanner (an example, the L3
ProVision is shown) are widely used for aviation
security where “pat downs” are an accepted part of
protocol. These devices are not currently being used
in the retail distribution market.
The millimeter wave technology uses microwaves to
create a high-resolution image of the surface of a
person’s body. Privacy was a major concern when
these screeners were first widely deployed by the
Transportation Security Administration (TSA). After
criticism from the public, the screening platforms
were modified — they now display an avatar of the
person and the item detected.
There are a number of drawbacks to using millimeter
wave technologyin distribution centers:
• A millimeter-wave scanner has a large footprint and
is complex to deploy.
• The average price is between $120,000 and
$180,000.
• The only visual of the item detected is the yellow
square as shown above. The operator cannot tell what
it is.
• Scanning time is fast (approximately 5 seconds) but
similar to the metal detector the time to clear an alarm
can take several minutes.
• A picture of the individual’s body is generated and
stored by the system, even if it is suppressed. Some
models allow this image to be viewed by security
personnel.
• Clearing of the alarm cause is impossible without
voluntary item removal.
Millimeter
Wave Scanner

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ISCON Imaging pioneers a new breed of screening solutions that drive new levels of operational and workplace safety, and
LP in warehouses, distribution centers and large retail sites. Its SecureScan™ and FocusScan™ scanning solutions provide LP
managers, safety leaders and operations managers with cost-effective options to reduce the risk for active shooters while
limiting the potential for theft.
ISCON body screeners deliver whole-body scans that allow retailers or warehouse security personnel to scan an individual,
and detect stolen inventory or weapons by seeing their likeness on a high-quality touch screen. These images are recorded
and available for later auditing with a date and time stamp. The patented thermo-conductive IR technology first heats the
screening subject, then assesses the cooling patterns of any object that may be hidden underneath an article of clothing to be
able to identify it by its light structure. This technology does not use any artificial radiation of any kind, and does not violate
the subject’s privacy since long-wave infrared (LWIR) does not pass through clothing.
ISCON technologies incorporate a low velocity heated airflow, which disrupts the thermal equilibrium achieved when items
are concealed for long periods of time. This innovative approach enhances the visual image of a thermal imprint on the
surface of clothing. Any item underneath — no matter what material it is made from — will starkly contrast with the
surrounding area.
What makes ISCON technologies different and unique? Here is a closer look at the process that takes place:
1. Low-velocity air gently warms a person’s clothing and any object concealed underneath.
2. When the warm air stops, the person’s clothing and any concealed items cool down. Clothing over concealed
objects cools at a different rate, producing strong temperature contrast.
3. A temperature-sensitive IR camera captures images of the entire area and reveals the contrast of any object hidden
under clothing.
Advanced Imaging Technology
ISCON Imaging Infrared Screener

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1. Cooler objects under clothing are clearly
visible with an IR camera due to temperature
differences between the object and clothing.
2. If the object stays under clothing for an
extended time, its temperatures equal and
can no longer be easily detected by the IR
camera.f•f•f••
ISCON: Imaging Sequence
3. When the thermal balance is disrupted,
temperatures of the object and clothing differ
due to heat transfer properties, allowing the
object to become visible to the IR camera.

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Unlike other personnel screening technologies such as those used in the transportation industry. ISCON delivers
three key features to retail, warehouse and distribution companies that no competing technology offers:
• ISCON presents no adverse health effects such as radiation.
• ISCON technology cannot “see” through clothing and therefore, there are no privacy concerns.
• ISCON is the only technology available today that can actually display a high-resolution image of the item detected on
the person.
The ISCON Difference

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Because the ISCON (IR) technology reliably identifies
temperature contrast, it is able to detect a wide
variety of materialsincluding:
• Hard goods
• Soft goods
• Pharmaceuticals
• Weapons (metallic and non-metallic)
• Contraband
• Data storage
• Electronics
• Glass
ISCON’s patented solutions strengthen the scanning
process, increasing throughput, eliminating privacy
and radiation concerns, and enhancing safety
initiatives. The technology is available in two unique
and distinct platforms, SecureScan and FocusScan.
Both form factors identify metallic and nonmetallic
objects hidden beneath clothing, giving users
unprecedented insight into information that can
protect physical assets and employees.

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SecureScan
The SecureScan is a whole-body scanner that captures
a four-sided view of a person at approximately 15
seconds per side. The solution displays a high-
resolution image from an advanced IR camera on an
intuitive touchscreen interface, which controls all
system administrationand management. It simplifies the
user and operator eperience with easy-to-read
electronic indicators. The image is similar to a traditional
photo negative, allowing it to be easily viewed and
evaluated.
SecureScan records images securely, adding time and
date stamps for use in future investigations. In
addition, the image can be tagged with an individual
employee’s identification card. Images can be uploaded
or downloaded for storage on a company’s IT
infrastructure.
If an incident is escalated or an investigation
confirms theft, for eample, the stored image can
be downloaded for use in prosecution. If a
weapon or contraband is detected, the employee
will have no knowledge of the discovery because
there is no audible or visual alarm. This strategy
provides significant benefit because it allows
security personnel to silently implement
escalation procedures such as plant-wide
notification or locdown.
SecureScan is primarily used at entrances and
exits to screen employees, visitors and vendors
coming into and leaving the facility. It can also be
used as a secondary screening technique to clear
alarms generated by faster but much less effective
high-volume technologies.

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FocusScan
The FocusScan handheld imager is designed for
targeted personnel scanning. FocusScan is the first-
ever IR-based handheld imaging technology purpose-
built for use in loss prevention, security enhancement
and asset protection. It allows for targeted screening
of specific areas of an individual.
FocusScan is fully portable and can also be used for
random, remote security screening in high-rise areas.
Like SecureScan, it provides a high-resolution image
that can be recorded, time and date stamped, and
downloaded for forensic needs. FocusScan
incorporates a metal detector at its tip for rapidly
locating and clearing items alarmed by an archway
metal detector, as well as a proimity sensor that
protects privacy by limiting range and target zones.

15. isconimaging.com
Learn more about screening solutions from ISCON: