I'm an apartment manager. We have cameras. My employer doesn't allow me to look at cameras unless I'm prompted (a tenant complaint for instance). Long story short, some things don't hold up in a court of law. But this obviously isn't the same as an apartment complex.
In this case, I agree with you except that going over footage for hours is very time-consuming. You literally have no idea how time-consuming it is.
All I can say is when you hire someone they should be observed for awhile to get their demeanor figured out. You are responsible for who you hire.