How Retail Businesses Eliminate Buddy Punching Using Geofencing Time Clocks

Time theft quietly drains retail businesses, and many managers underestimate how much it costs. According to the American Payroll Association, buddy punching costs U.S. employers over $373 million each year. In a typical retail store, that can translate into tens of thousands of dollars lost annually through small, often unnoticed time abuses.

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The impact goes beyond payroll. When time tracking systems are easy to exploit, trust erodes. Honest employees end up covering shifts or workloads created by inaccurate punches, while managers spend time resolving disputes instead of running the business.

This is why many retailers are rethinking how time tracking works. Solutions like CloudApper AI TimeClock for UKG help stop buddy punching by verifying where employees clock in and who is clocking in, giving managers accurate, reliable time data they can trust.

How Geolocation Time Tracking Works

Geolocation time tracking uses geofencing to define approved clock-in and clock-out locations. Each retail store, warehouse, or job site is assigned a virtual boundary. Employees can only record time when they are physically inside that boundary.

This immediately eliminates common time theft scenarios, such as clocking in from a parking lot, nearby café, or from home. If an employee attempts to punch outside the approved area, the system blocks the action and provides a clear message explaining why.

For retail managers, this solves one half of the buddy punching problem: the “where.” It ensures every punch happens at the correct location and removes ambiguity during payroll review.

However, location alone is not enough.

Why Location Verification Alone Is Not Enough

In busy retail environments, multiple employees often share the same clock-in device. If time tracking relies only on badges, PINs, or usernames, it is still possible for one employee to clock in for another as long as both are present at the store.

This is where identity verification becomes critical. To fully prevent buddy punching, the system must confirm that the employee clocking in is the authorized employee, not just that someone is standing in the right place.

How Face ID Verification Prevents Buddy Punching

Face ID–based verification adds a secure identity check during clock-in. Employees enroll once by associating their profile with their facial data. After enrollment, every punch requires a quick facial scan.

This ensures:

• Employees cannot clock in for coworkers
• Shared devices remain secure without badges or PINs
• Time punches are tied to a verified individual, not just a credential

The process is fast and familiar, especially for frontline workers already accustomed to facial authentication on personal devices. From an operational standpoint, it removes the most common loophole used for buddy punching in retail settings.

How CloudApper AI TimeClock for UKG Brings Both Solutions Together

Seamless UKG Integration with Minimal Setup

CloudApper AI TimeClock integrates directly with UKG, extending existing time and attendance workflows without replacing them. Retailers configure geofences for each location and enroll employees once. From there, everything runs automatically.

All punches, verifications, and timestamps sync in real time with UKG. There are no parallel systems, no exports, and no manual reconciliation.

Real-Time Location and Identity Verification at Clock-In

When an employee clocks in using a tablet or smartphone:

1. The system verifies the employee is inside the approved geofence

2. Face ID confirms the employee’s identity

3. The punch is approved and recorded instantly

If a clock-in fails due to location or identity issues, the employee receives immediate feedback, and managers have visibility without having to investigate after the fact.

Instant Time Syncing Without Manual Corrections

Once approved, punches sync directly to UKG in real time. This eliminates:

• End-of-pay-period cleanup

• Manual punch corrections

• Payroll disputes caused by unclear attendance data

Scheduling, payroll, and reporting workflows all benefit from clean, verified time data.

This is what fraud-resistant time tracking looks like when location and identity are verified together.

Comparison: Traditional vs Location-Based Time Clocks

Traditional badge- or PIN-based time clocks offer little protection against buddy punching. Credentials can be shared easily, and issues are often discovered only after payroll is processed.

Location-based time clocks ensure employees are on-site, while Face ID verification ensures the correct employee is clocking in. Together, they address both the physical and identity aspects of time fraud.

These systems also scale more easily than traditional hardware-based clocks. Retailers can use existing tablets or smartphones instead of installing dedicated devices at every location. This reduces upfront costs and simplifies expansion.

From an employee perspective, clocking in on familiar devices is often easier than managing badges. From a compliance standpoint, automated verification and detailed records simplify audits and dispute resolution.

Conclusion

Time theft through buddy punching costs retail businesses millions every year, but it does not have to be accepted as a cost of doing business. Location-based time tracking combined with Face ID verification provides a practical, scalable way to ensure that the right employees are clocking in from the right locations.

By integrating directly with UKG, CloudApper AI TimeClock closes the gaps that make traditional time tracking systems vulnerable to abuse. You gain accurate time data, reduce payroll leakage, and protect trust across your workforce.

Buddy punching is preventable. Accurate time tracking does not have to be complicated.