Big Cities Still Experiencing a Shoplifting Crisis
While the numbers may be down nationally, many cities are still suffering

Shoplifting Anxiety Is Based in Reality in Some Big Cities

Retail theft has risen sharply in several metropolises, including New York and Los Angeles, even if an increase hasn't shown up in the national statistics.

Shoplifting has become a contentious topic in the US lately. Retailers have repeatedly cited shoplifting as a reason for closing stores, and the National Retail Federation threw fuel on the fire last year with the eye-catching claim - since retracted - that 50% of the inventory losses referred to as "shrink" were due to organized retail crime. (It's probably around 5%.)

In reaction, there's been a profusion of media explainers with headlines such as "The Murky Shoplifting Narrative," "What America's shoplifting panic is really about," "Behind the Shoplifting Panic," "The shoplifting scare might not have been real - but its effects are" and "How the retail lobby sold a $45-billion whopper about organized shoplifting," as well as assertions by prominent left-of-center social media voices that the shoplifting scare was "all propaganda" that "they've now admitted was fake."

But there's nothing fake about the shoplifting surge in New York City. The shoplifting rate there rose 75% from 2019 to 2022 before falling in 2023 to a level that's still 61% higher than before the pandemic.

Other big cities report similarly big increases. The shoplifting rate is up 108% from 2019 to 2023 in Philadelphia, 79% in Los Angeles, 46% in Portland, Oregon, 13% in Houston. In San Francisco it has settled back from a more than 50% increase as of mid-2022 to slightly above where it was in 2019, but is still 50% higher than in the early 2010s.

National statistics paint a much different picture. The 2022 US shoplifting rate as estimated by the Federal Bureau of Investigation was 12% lower than in 2019 and close to its post-1985 low. While FBI crime statistics remain somewhat unreliable during a changeover to a new reporting system, a Council on Criminal Justice examination of monthly shoplifting data from 24 cities through mid-2023.

What's going on here? The simplest answer is that shoplifting has risen in some places in the US but not in most. It's not spinning out of control, and may even be on the decline nationally. That doesn't mean it isn't a real problem in cities where shoplifting rates have risen sharply, and probably in some where according to the official statistics they have not.  bloomberg.com


Defending Parking Lots: The Key to Fighting Retail Threats
2024 outlook: Strengthening retail security to combat new threats
Retail security leaders face an evolving landscape of threats as bad actors appear to be more brazen, even when met with increased security presence and enhanced video quality.

Companies are experiencing different types of attacks with new patterns. Organized retail crime (ORC) perpetrators are well-organized and timed, and they execute attacks with intention. Mobs rush in and can overwhelm store staff and security. Smash and grabs and catalytic converter thefts continue to be big concerns for patrons and put their safety at risk.

It is challenging for security leaders to balance their priorities and investments across each zone of retail influence - such as zone 4, the increasingly important parking lot - to successfully deter, detect and delay potential incidents.

Given recent technology advancements and deepening knowledge of how to address security concerns, retail security leaders must adapt their playbooks to stay ahead in 2024.

3 trends shaping retail security strategies

As retailers assess ways to strengthen their security strategies with these facts in mind, the following three industry trends can guide them to mitigate their risks:

• Loitering analytics will get more dependable and predictable. By coupling video surveillance solutions with generative artificial intelligence (AI), patterns around loitering and loitering analytics can enable contextual analysis. The idea is to tell what is happening presently and give context based on the past and possibly give statistical insights to direct the future.

• Composable security solutions will deliver tangible benefits. Each technology or tool needs to communicate and direct actions to other systems. For example, a cart wheel locking system should communicate with a mobile surveillance unit (MSU) in the parking lot, and that MSU should communicate with a gate and lighting system.

• Security will need to balance with convenience. When bad actors take advantage of convenient plays, security will encroach on convenience out of necessity.    securitymagazine.com


California's Tough-on-Theft Approach
Too little, too late -- or starting to make progress?
 
California launches plans to combat retail theft after years of ignoring problem
California has been hammered over the past few years as the spike in retail theft that started in San Francisco and Los Angeles has spread across the state, prompting the creation of task forces, legislative hearings, and promises of a crackdown by Gov. Gavin Newsom (D-CA).

California prosecutors and business leaders have blamed some of the state's "toothless" laws for the jump in offenses, saying the problem has only gotten worse because offenders know they'll be back on the street in hours, if not minutes.

Residents have said they want to see changes made to Proposition 47, a decade-old ballot measure that classifies nonviolent property crimes that do not exceed $950 in value as misdemeanors.

The criminal penalty for nonviolent retail theft is typically up to six months of jail time, but critics claim that only a few offenders ever serve their full sentences, and many do not even show up to court. Proposition 47 also fails to target repeat offenders, critics have complained.

For a while, lawmakers ignored the problem. Now, under a national microscope and with big businesses relocating, they are desperate for a fix.

Newsom, a Democrat, announced a package of bills that addressed retail theft this month. While Newsom's proposals would not amend Proposition 47, they would propose new penalties for people who steal items and then try to resell them. He has proposed changes to existing laws allowing police officers to arrest suspects of retail crime even if they did not witness the crime in progress.

Last year, Newsom announced the largest-ever investment to combat organized retail crime in the state's history, a 310% increase in operations targeting organized retail crime and improving public safety.

New numbers from the CHP's Organized Retail Crime Task Force released Tuesday suggest that things are heading in a positive direction. The CHP has recovered 320,000 pieces of merchandise from nearly 550 investigations. The agency also made 1,301 arrests and returned over $10 million in stolen goods.  gazette.com

   RELATED: California cracking down on retail theft with proposed tougher penalties


'Californians for Safe Stores and Neighborhoods Coalition'
Lawmakers & trade associations continue to hold hearings on surging retail crime

Little Hoover Commission Holds Third Hearing on Retail Theft
The Little Hoover Commission held their third out of a series of four hearings on Retail Theft yesterday, this one focused on reporting and tracking crime statistics related to Retail Theft. Researchers discussed "whether there are improvements that could be made to better inform evidence-based decision making". Testimony was given by representatives from UC Irvine, Public Policy Institute of California, Californians for Safety and Justice and the Committee on Revision of the Penal Code.

View the hearing recording HERE. The Commission will be sending a fact sheet out ahead of their full report in order to get information out quickly given this year's policy proposals in the State Legislature. There will be one more Commission hearing on February 8 and we received word that the next Assembly Select Committee on Retail Theft hearing will be the following day, February 9, in the morning, and will be a JOINT hearing with the Assembly Public Safety Committee.

Californians for Safe Stores and Neighborhoods

Cal Retailers will continue engaging with our state's policymakers around Retail Theft and Organized Retail Crime through the Californians for Safe Stores and Neighborhoods Coalition, which was formed for business leaders and retailers representing numerous industries to collaborate on policy recommendations to combat Retail Theft. The coalition, recognizing that the safety of employees, customers and neighborhoods are at stake, will work with state leadership to implement effective strategies to combat retail crime that put businesses, employees and consumers at risk. The coalition's message is simple - focus on a comprehensive solution that Cal Retailers calls the 4D solution. Read more about the 4S's here.

Click here to learn more & join the Californians for Safe Stores and Neighborhoods Coalition today


Not Everybody Wants To Undo Prop 47
Opinion: Prop 47 can be reformed to address organized retail theft without making sweeping changes
Mayor Gloria's recent endorsement of amending Proposition 47 during his State of the City address threatens to undo the substantial progress this measure has produced.

Passed in 2014, Proposition 47 reclassified several low-level felonies as misdemeanors and invested savings from reduced incarceration into crime prevention programs. Since then, property crime remains below 2014 levels and decreased every year from 2014 to 2020, according to California Department of Justice data. And by safely downsizing the prison population, the state has saved over $750 million, much of which has funded highly effective rehabilitation programs.

Yes, we need to update Proposition 47 to better deal with issues like organized store theft. However, more extreme changes such as slashing the felony theft threshold would undermine Proposition 47's effective model. California can update the law for modern times while preserving its legacy of evidence-based, fiscally responsible policy. sandiegouniontribune.com


Shop Thefts in England & Wales Up 32%
UK: Independent retailers express alarm at runaway shoplifting incidents

The Federation of Independent Retailers (the Fed) has expressed alarm at new data which show that shoplifting is at its highest level in 20 years.

According to the latest statistics from the Office for National Statistics, shop thefts in England and Wales were up by 32 per cent, with 402,482 offences announced in the year to September 2023. This compared with 304,459 in September 2022.

Commenting on the increase, the Fed's National President Muntazir Dipoti said: "... I am sure that every member has been affected by shop theft at some point and, sadly, many incidents of shoplifting are becoming increasingly violent."

It was also possible that the levels were even higher, as many independent retailers were reluctant to report crimes because of poor police responses and paltry punishments if offenders did come to court.

Last year, the Fed launched its Safe, Secure, Supported campaign calling for government grants of £1,500 to help independent retailers beef up their security systems.  theretailbulletin.com


Crackdown on organized retail thefts in Liberty, MO continues

Retail Theft & Auto Theft Task Forces Become Permanent in Hillsborough County, FL

Four Major Hits and One Miss from NRF 2024

By Tony D'Onofrio - President, Sensormatic

Once again, the ritual that is the January National Retail Federation Big Show is upon us. Over 40,000 people, 6200+ brands, 1000+ exhibitors, from 100+ countries participated in the NRF 2024 edition. My retail innovation leadership activities stretched out over five days logging over 75,000 steps or to be more exact 32.62 walking miles.

Personally, NRF 2024 was even more special as I returned as President of Sensormatic, the leading retail portfolio business of Johnson Controls. My agenda was super packed with retailers, press, and analyst's meetings. Being a true retail technology industry 'geek', I did squeeze in my traditional trend spotting walk.

This article summarizes some of my favorite events and themes of NRF 2024. It highlights both the 'hits' that made NRF 2024 memorable and the one 'miss' that could have improved it.

The Hits:

• Best Way to Start Each NRF: Retail ROI Super Saturday
• Big Show Lesson: Please Stop Saying You Have AI
• IT'S BACK: An RFID Twist Even in the Autonomous Store
• The Perfect NRF Book End: The LPRC Kickoff

The Miss:

• It's A Big Miss: Retail Media Networks Growth

Click here to read Tony's full article

Click here to watch the NRF 2024: Retail Big Show recap

  
James Stark, Segment Development Manager, Retail for Axis Communications, shared these photos
of industry leaders at NRF Big Show 2024. See the full post on LinkedIn here.

52 Retail CEOs Exited in 2023
CEO turnover in retail doubles in 2023

More retail chief executives headed toward the exit door in 2023 than the previous year.

U.S. companies announced 55% more CEO changes in 2023 than in 2022, according to a report by outplacement firm Challenger, Gray & Christmas. In 2023, 1,914 left their positions, which is the highest amount since the firm started tracking the data in 2002.

The turnover among CEOs in the retail industry more than doubled in 2023 compared to 2022, and was the highest since 2019. Fifty-two retail chief executives exited in 2023 compared to 21 last year, according to Challenger, Gray & Christmas.

The rate of new CEOs (across all industries) who are women held at 28% to finish out 2023, higher than the 26% of new CEOs who were women in 2022. Meanwhile, the percentage of women CEOs leaving the top spot rose to 24% in 2023, up from 19.5% during the corresponding period in 2022. 2023 witnessed more new CEOs who are women than any previous year. chainstoreage.com

 
Remote Workers on the Chopping Block
When Layoffs Happen, Remote Workers Are Hardest Hit

New data shows fully remote employees are more likely to be let go than their peers. They're also more likely to quit.

Workers logging on from home five days a week were 35% more likely to be laid off in 2023 than their peers who put in office time, according to an analysis of two million white-collar workers conducted by employment data provider Live Data Technologies. The analysis showed 10% of fully remote workers were laid off last year, compared with 7% of those working in an office full time or on a hybrid basis.

"When a hiring manager gets news they have to cut 10% of the staff, it's easier to put someone on the list you don't have a close personal relationship with," says Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm. Much of the disparity, he says, is that it's simply harder to build attachments to people you don't see face to face.

Some companies have been more intentional about putting remote workers on the chopping block. Wayfair, the online home-goods retailer, recently told employees that remote workers would be more likely to be affected in company layoffs. Executives also told staff they believe most workers should be in an office most days. wsj.com


U.S. Employers Ditch Remote Work - So Employees Are Going International
U.S. workers are getting scooped up by international companies hiring remote roles
It's getting harder to find a remote job in the U.S., but you might have better luck working from home for a company based abroad. The number of American workers hired by international companies grew 62% last year, according to the State of Global Hiring Report from Deel, an HR platform that specializes in global hiring.

The report is based on 300,000 contracts between Deel customers and workers for both contractors and full-time employees, and roughly 85% of those contracts are for remote positions. American workers are most likely to be hired by companies in the U.K., Canada, France, Singapore and Australia.

The spike in U.S. workers vying for remote jobs headquartered overseas "feels correlated with the elimination of remote roles" stateside, says Deel CEO Alex Bouaziz. He knows from experience people are quitting jobs with return-to-office requirements to be remote: "A couple of our competitors did that, and we hired their best people. So I welcome them to keep doing it." cnbc.com


Boosting Gun Store Safety
Bill passed out of Washington House committee targets gun store safety
A new bill proposed in Olympia could force gun store owners in Washington State out of business. The bill would require all guns to be locked in a fireproof safe or vault outside of operating hours. In addition, dealers would be required to monitor the inside and outside of the premise 24 hours a day through digital video surveillance. Those recordings will have to be kept for at least six years. The bill has passed out of committee, but has not passed the full house. khq.com


Levi's to lay off as much as 15% of its workforce

Fruit of the Loom lays off more than 100 workers at distribution center


Last week's #1 article --

New Bill Requiring SF Grocery Stores to Give 6 Months Notice Before Closing
Will San Francisco grocery stores need to notify city before closing? Safeway saga drives plan for input
San Francisco Supervisor Dean Preston is proposing that grocers be required to notify and involve the community when they plan to close stores in the city. The proposed legislation comes in the wake of a battle with Safeway over the fate of its Fillmore district location.

The law would require six months' notice prior to the closure of a neighborhood-serving grocery store, as well as requirements that the store meet with community members prior to closure and explore a replacement supermarket.

Preston's proposal would resurrect the Supermarket Closure Ordinance, which was approved by the Board of Supervisors in 1984 but vetoed by then-Mayor Dianne Feinstein. He will introduce the law as the Neighborhood Grocery Protection Act.

"It was a good idea then, and it's an even better idea now," Preston said. "We need notice, we need transparency, community input, and a transition plan when major neighborhood grocery stores plan to shut their doors."  sfchronicle.com

Introducing the future of Retail Crime Intelligence

Auror recently introduced an expanded product range for the Retail Crime Intelligence movement to help retailers and law enforcement reduce crime, loss, and violence.

Retail Crime Intelligence is a software platform that connects people and organizations with timely intel to proactively reduce the impacts of crime in retail stores. It's used by loss prevention, asset protection, and law enforcement departments - alongside store and security teams - to identify and prevent the people driving theft-related loss and violence in stores.

"Our retail and law enforcement partners have made it clear that keeping people safe has never been more challenging." said Auror CEO, Phil Thomson. "Retail Crime Intelligence has been grounded in connection from the beginning. This new generation takes that to another level, empowering an outcome-based approach to stopping crime and keeping people safe. At Auror, we believe Retail Crime Intelligence is the key framework for which retailers confidently design their crime prevention and safety strategies."

Thousands of retail and law enforcement users already trust Auror's Retail Crime Intelligence platform to safely prevent crime among the world's leading retail communities. With this announcement, Auror is revealing the next generation in crime prevention to help its customers and partners connect their prevention strategies with a true system of intelligence.

Auror's product modules now include: Intel, Connect the Dots, License Plate Recognition, Investigate, and Insights.

Read the full announcement and product descriptions at auror.co.
 

Payment Fraud Attempts Surge - AI is Making it Worse
AI, fake CFOs drive soaring corporate payment-fraud attacks

Generative AI tools like ChatGPT are making it easier for scammers to create bogus texts and emails as well as deep-fake voices at scale.

The vast majority of U.S. companies, 96%, were targeted with at least one payment fraud attempt in the past 12 months, according to automated fraud prevention services provider Trustpair, which surveyed more than 260 senior finance and treasury leaders. The fraud attempts mark a 71% increase from the prior year as criminals stepped up their tactics.

To dupe organizations, half of respondents said fraudsters primarily used text messages or fake websites, according to a report on the findings, released Tuesday. CEO and CFO impersonations were seen in 44% of attempts, while hacking and business email compromise were each seen in 31% of attempts.

"Our research shows fraudsters are becoming increasingly more sophisticated in their tactics and their reach is expanding," Trustpair CEO Baptiste Collot said in a press release.

Total potential losses from cyberattacks and cyber fraud rose 48% in 2022 to $10.2 billion from $6.9 billion in 2021, according to the FBI. The FBI's Internet Crime Complaint Center received 21,832 complaints involving fraud attempts via "business email compromise" scams in particular, with adjusted losses totaling over $2.7 billion.

Such attacks have accelerated as generative AI tools like ChatGPT have made it much easier for scammers to create "close-to-perfect" texts, emails, phishing websites, and deep-fake voices at scale, according to Trustpair, which is based in Paris with a U.S. headquarters in New York. cybersecuritydive.com


Ex-Fraudsters Becoming Legit Cybersecurity Workers?
Help Wanted From Convicted Cybercriminals

Rather than languishing in jail for their crimes, could former fraudsters turn to legitimate cybersecurity work?

The conversation on whether to hire those who have done bad things in their past or not is not new. A similar debate five years ago had differing opinions, but one argument was that hackers with experience of conducting cyberattacks should be the best people to plan and test cyber defenses because they had the actual experience in breaking them.

How likely is it that someone with a criminal past would be hired as a legitimate IT security professional? UK-based recruitment specialist Owanate Bestman says when it comes to the recruitment process, there is a certain sympathy from some hiring managers to give those who have done wrong a second chance. But sometimes a company policy may prevent such goodwill.

There is also the consideration of how much a business would need to supervise the reformed cybercriminal's work. Confidence Staveley is the founder and executive director of CyberSafe Foundation, a non-governmental organization dedicated to improving inclusive and safe digital access in Africa. She says the call to retrain cybercriminals and fraudsters "is a fantastic thing to do." But, she says, such a move would require a multi-layered monitoring process, and would depend on whether the former convicts would want to work full-time. darkreading.com


Major Tech Companies Ordered to Shed Light on AI Activities
FTC generative AI investigation includes Alphabet, Amazon, Microsoft
The Federal Trade Commission (FTC) is ordering five major tech companies to provide information about their generative AI activities.

The agency's 6(b) inquiry will scrutinize corporate partnerships and investments with AI providers in what it says is an effort to better understand these relationships and their impact on the competitive landscape. The compulsory orders were sent to Alphabet Inc. (parent of Google), Amazon Inc., Anthropic PBC, Microsoft Corp. and OpenAI Inc.

In particular, the FTC is investigating activity among these companies related to generative AI, which is based on machine learning (ML) and can create new content and ideas, including conversations, stories, images, videos, and music.

Interestingly, all five companies affected by the FTC order previously agreed to follow a set of voluntary commitments to ethically and safely develop AI released by President Biden in July 2023, which was followed by an executive order on AI safety in October.  chainstoreage.com
 

Longer passwords aren't safe from intensive cracking efforts

In 2024, AI and ML shift from flashy to functional

Los Angeles County, CA: Retail theft crew busted with over $300,000 worth of stolen goods in Southern California
Four members of a retail theft crew were arrested for allegedly stealing over $300,000 worth of items from stores across Southern California. The thefts took place between Dec. 14, 2023 to Jan. 7, 2024, according to the Los Angeles County Sheriff's Department. Retailers that were targeted include Home Depot, Lowe's, Target, and Walmart. Three of the suspects were allegedly responsible for working together to steal the merchandise while a fourth suspect ran a "fence" operation located on 94th Street East in Littlerock. A crime fence is an individual or business that knowingly purchases stolen goods and property and then sells the items for profit. While search warrants were served, detectives discovered around $300,000 worth of stolen merchandise. Photos of the stolen items include a wide variety of hand and power tools, yard care equipment, generators, A/C compressors, clothing, sneakers, tool storage chests and more. Two handguns - a 9mm and .45 caliber - were also found at the scene.  ktla.com


Charlotte, NC: Amazon Employees charged with stealing from Fulfillment Center
44-year-old Flavia Martinez and 31-year-old Evelin Ninos are the Amazon employees that were arrested on January 24, 2024. They worked at the amazon Fulfillment Center on Tuckaseegee Rd. Charlotte, NC. The Amazon asset protection team received intelligence that consumer packages were being stolen on various days in January 2024. An investigation was launched and it was determined that Amazon employees were stealing packages that contained expensive customer electronics. Among the items stolen were 5 IPhones, Samsung Galaxy phones valued at over $6,000, an Apple Watch, Michael Kors purses and handbags, Apple Airpods, several IPADS worth over $3,800, a Super Mario Brothers video game along with lipstick, powder, and eye shadow. Police were called and resulting in Flavia and Evelin being arrested. The suspects were charged with larceny by employee.   charlottealertsnews.com


San Bernardino, CA: Suspect is arrested for allegedly stealing $10,000 worth of items from multiple stores
A suspect was arrested for allegedly committing retail theft of nearly $10,000 from various stores in San Bernardino, according to the San Bernardino Police Department. The suspect allegedly was responsible for multiple separate crimes at Helzberg Diamonds, Target, and CosmoProf, the San Bernardino P.D. said in a Facebook post on Jan. 25. Detectives followed up on leads, which led to the identification of the suspect. An arrest warrant was issued, and officers took him into custody during a traffic stop.  fontanaheraldnews.com


Berkeley, CA: Man, 21, arrested after Berkeley Apple Store theft
Thieves snatched iPhones from the Berkeley Apple Store on Thursday night for at least the third time in recent weeks, according to police and court papers. Berkeley police said Thursday's theft from the Berkeley Apple Store at 1823 Fourth St. took place just before 6 p.m. Limited information was available due to the ongoing investigation, but police said two men in their 20s wearing hoodies took 16 iPhones before leaving, according to preliminary information.  berkeleyscanner.com


Kingston, Ont, Canada: $38,000 hockey gear heist from Canadian Tire could be the most Canadian crime ever
Police in Ontario are currently on the hunt for two suspects who committed what was perhaps the most Canadian crime ever earlier this month, stealing tens of thousands of dollars worth of hockey equipment, of all things. The duo took the whopping $38,000 in goods from a Canadian Tire in Kingston around 11:15 pm on January 16, more than two hours after the store had closed for the day. Based on security footage, the individuals entered wearing coats, hoodies, hats and face masks during business hours, with one helping the other strategically hide within a floor display in an aisle before he left. After waiting for hours, the hidden perpetrator emerged and proceeded to round up a bag full of hockey gloves from the sports section, along with nearly 100 hockey sticks that they taped together for easy transport.  dailyhive.com


Memphis, TN: Thieves get away with $6K worth of cigarettes after gas station burglary

Lansing, MI: Teens steal from REO Town stores in daylight

Houston, TX: Police stop 2 people with over $500 worth of stolen meat in car