Behind the Scenes of LA's ORC Task Force
The task force has conducted roughly a hundred retail blitzes so far to tackle ORC. Los Angeles consistently ranks as the city with the worst organized-retail-crime problem.

The Crime Rings Stealing Everything from Purses to Power Tools

In Los Angeles, a task force of detectives is battling organized retail theft, in which boosted goods often end up for sale online-or commingled on store shelves with legitimate items.

Los Angeles is among the world's largest shopping environments. The metropolitan area's diverse convergence of stores, street markets, warehouses, cargo ships, interstates, freight trains, and luxury goods-along with its wealth disparity, street gangs, and proximity to the Mexican border-make it singularly conducive to criminal enterprise. During the pandemic, the retail landscape suffered. Now brick-and-mortar shopping is rebounding.

When the task force's supervisor, Sergeant Jimmy Eberhart, teaches other agencies' officers what he has learned about investigating organized retail crime, one of his PowerPoint slides notes a "disturbing trend." On social media, outlaw networks recruit employees of retail businesses or credit facilities to, say, steal a customer's identity or knowingly run a pinched credit card. (What's more, employees may assist with a theft, in what the retail industry calls "sweethearting.")

Eberhart's unit, which focusses on the less showy aspects of organized retail crime, works out of a tight, windowless office just north of downtown, in an aging fortress shared by homicide detectives and by a squad that reconstructs traffic accidents using advanced math. As of January, the C.H.P. had recovered more than thirty-eight million dollars' worth of merchandise and made more than two thousand arrests in cases involving organized retail crime. The highway patrol created the task force in 2019, after California lawmakers codified such thefts as a distinct offense.

Los Angeles consistently ranks as the city with the worst organized-retail-crime problem, according to the National Retail Federation. Lieutenant Mike McComas, who runs the L.A.P.D.'s organized-retail-crime task force, told me, "Shoes are a hot item, so maybe instead of putting out a complete set of shoes you put out only the right shoe." He added, "Uniformed security, if you can afford it, is great."

At Home Depot, I asked Eberhart if he thought that staking out a big-box store was a good use of time and funding. (The task force has conducted roughly a hundred retail blitzes so far.) "I think it's necessary," he replied. "It's good on several levels. It's good public awareness. It's also a good deterrent, to see us out here."  newyorker.com


Retailers -- Even Competitors -- Join Forces to Fight ORC Using AI
AI-Powered Surveillance Revolutionizes Retail Theft Prevention
Leading retailers such as Target, Walgreens, and Home Depot are spearheading a collaborative effort to combat organized theft by integrating advanced artificial intelligence (AI) and real-time surveillance technologies.

Faced with a wave of high-profile theft incidents, these industry giants are joining forces to deploy innovative solutions aimed at preventing criminal activities and ensuring the safety of employees and customers.

Retailers unite against organized crime with AI Surveillance innovations

In an unprecedented show of unity, competitors within the retail sector are coming together to confront the escalating threat posed by organized retail crime. Championed by industry heavyweights like Target, Walmart, and Home Depot, this collaborative endeavor has led to substantial investments in AI-powered surveillance systems and sophisticated theft prevention measures.

A notable breakthrough is the development of AI-driven heat maps, which empower retailers to anticipate and intercept potential criminal activities in real-time. By consolidating data from diverse sources, including law enforcement and participating retailers, these heat maps identify hotspots for criminal behavior, enabling businesses to proactively deploy security measures and deter theft incidents before they occur.

Surge in AI investments amid growing shrinkage concerns

The retail sector is witnessing a significant surge in AI investments, with over 90% of retailers planning to enhance their AI capabilities in the coming year. This surge underscores the pressing need to address the pervasive issue of shrinkage, encompassing losses from theft, fraud, administrative errors, and other causes.

Law enforcement and AI

By facilitating information sharing and coordination, these technological innovations enhance the effectiveness of law enforcement efforts to combat retail theft. The integration of artificial intelligence and real-time surveillance technologies heralds a new era in retail theft prevention. Through collaborative initiatives and strategic investments, retailers are harnessing cutting-edge solutions to protect their assets and ensure the safety of employees and customers.  cryptopolitan.com


Will AI Help Solve the Self-Checkout Theft Problem?
Walmart & Target shoppers facing a self-checkout 'nightmare,' loss prevention expert says - but the worst is yet to come

How shoplifting has changed self-checkout

A loss prevention expert has warned that shoppers should expect to see more self-checkout experiments in the future. Big box retailers like Walmart and Target have been testing out wild solutions to try and prevent theft while keeping customers happy - and the 'great self-checkout experiment' is sure to continue.

Self-checkout is beloved by some shoppers, but it also creates limitless opportunities for theft, leaving retailers with no choice but to crack down with anti-theft solutions. Store managers are addressing the issues by locking down aisles of low-price items like laundry detergent and forcing shoppers to wait until a worker can help them.

The latest mix-ups at checkout came as no surprise to Johnny Custer, who has spent his lifetime working with retailers to reduce theft and maximize profits. Custer, senior manager at ThinkLP, calls the kiosks "the great self-checkout experiment" because he believes retailers are still trying to figure out how to implement it in their stores.

'Worst Case Scenario'

The retail expert said every store that uses self-checkout is at a loss with how to perfectly balance customer expectations and anti-theft measures. Executives are playing with the cashier versus self-checkout ratio, the number of supervisors at self-checkout, and what times of day the lanes should be staffed.

AI Solution

In Custer's professional opinion, stores will start relying on artificial intelligence that is connected to a customer's debit account.  Despite their struggles with finding the perfect solution, Custer warned that self-checkout is here to stay and that retailers will wait until the last possible moment it to remove it.

"I personally believe that retailers will continue to try a number of self-checkout strategies all the way up to the time AI takes over," he said. the-sun.com


ORC is a Top Retail Concern - But 'Lack of Quality Data' is Also a Problem
Retailer Concerns About Organized Crime Escalate Amid Ongoing Losses
As retailers face ongoing margin pressures from a difficult economic environment, many are growing increasingly concerned about the losses they may be accruing from theft from organized crime gangs.

Retailers are turning to new technologies to bolster their security against this kind of theft without accruing additional labor costs. For instance, Walmart-owned Sam's Club is replacing the practice of verifying receipts as shoppers exit the store with artificial intelligence (AI)-powered technology that can visually scan customers' carts. Many retailers are locking up more products.

Home Depot CEO Ted Decker recently spoke to the retailer's significant investments in technology to combat organized retail crime, noting that, last year, the chain experienced more than 142,000 instances of shrinkage.

The extent to which this kind of crime is an issue is contested. On an episode of the podcast "If Books Could Kill" that discussed organized retail crime, host Peter Shamshiri highlighted a section of the NRF's report on the subject, which cites observations from a "former law enforcement official" that the "lack of quality data has stymied efforts to raise public awareness about the scale and consequences" of this kind of crime.

"The lack of quality data is why you don't know the scale, the consequences of organized retail crime," Shamshiri argued, attributing much of the concern around the issue to "media panic" based on unreliable data.

Mounting concerns about the issue come as retailers face ongoing economic challenges. Dollar Tree is planning to close roughly 1,000 Family Dollar stores, even as it attempts to woo affluent shoppers. Macy's recently announced the upcoming closure of 150 locations over the next couple of years. Signet Jewelers - owner of Kay Jewelers, Zales and Jared - is closing up to 150 American and British locations by the middle of the year. pymnts.com
 

NYC's Subway Crime Surge is Impacting Retail
Retail giant blames NYC subway crime for breaking lease for shops at FiDi station
According to the MTA, Westfield - the company that manages the retail space inside Fulton Center - gave notice last month of plans to break its lease over concerns about crime in the NYC subway.

Nicholas Ritacco, portfolio manager and director of finance at IB Global Real Estate Funds, believes Fulton Center has a dual problem, beginning with location.

"Between the office tailwinds of people not coming back and not really frequenting that location as much, combined with the security concerns, security perception is reality, it's very difficult for retailers to want to stay at that location," Ritacco said.

The NYPD reports transit crime is up, just over 13% year to date. To address transit safety concerns, the NYPD deployed 1,000 officers to support the MTA's police force. fox5ny.com


Catching Yourself Red-Handed
Influencer who filmed Philadelphia Apple Store looting headed to trial
A social media influencer who appeared in a self-filmed viral video during a spell of looting outside the Apple Store in Philadelphia in September will stand trial on burglary charges.

The 22-year-old woman, who uses the social handle "Meatball," has been held for court on charges that include burglary, conspiracy, and criminal trespass, The Philadelphia Inquirer reported. Her video included footage of people stealing from the Apple Store and slamming iPhones to the ground once they realized the items were bricked. appleinsider.com


AI and shoplifting: How retailers are fighting shrink to increase profits

Video: AI-powered Technology Helps Fight Retail Crime
 

Retail the 3rd Most Targeted Sector by Cyberattackers
Within the retail sector, breaches cost businesses $2.5 million per incident on average.

Make Sure Retail Software Vendors Check These Security Boxes
A recent study found that retail is the third-most-targeted sector by cyber attackers, following only financial institutions and healthcare. Within the retail sector, breaches cost businesses $2.5 million per incident on average.

The rising number of attacks, increasing remediation costs and growing scrutiny by cybersecurity insurance providers are all reasons retail technology leaders are hyper-focused on improving their security posture. This elevated focus includes closely vetting the cybersecurity practices and certifications of software vendors that retailers choose to work with.

As you assess the security capabilities of your retail technology partners, here are three things to pay close attention to.

SOC 2 Status: When you are evaluating retail software vendors, ask for a copy of their most recent SOC 2 audit report and then review the scope of the report as well as any major findings. Inquire about remediations that are in place for any major findings that have been noted by the third-party audit firm.

Commitment To Ongoing Training: Cybersecurity preparedness is never a one-and-done event; it's a state of constantly evolving and adapting to new and emerging threats. Therefore, your software vendor should be providing its employees with relevant and up-to-date cybersecurity training and education regularly.

A Security-Aware Culture: Security compliance is the test and measurement of standards and practices, but cybersecurity maturity goes beyond basic standards. The evolving threat landscape requires organizations to become security-aware and security-focused. Ultimately, the most trustworthy software providers are the ones that make security part of their overall culture. forbes.com


Cybersecurity Becoming Top Priority
Audit committees rank cybersecurity as top priority amid SEC crackdown

Cyberattacks are just one of several rapidly changing threats confronting audit committees, according to the Center for Audit Quality and Deloitte.

Audit committees rank cybersecurity as their top oversight priority, the Center for Audit Quality and Deloitte found in a survey conducted as the Securities and Exchange Commission pushed forward with strict rules on cyberattack disclosure.

Among audit committee members, 69% deemed cybersecurity as a leading concern, with 30% ranking it as their No. 1 risk priority, CAQ and Deloitte said in an annual report. Forty-eight percent of committee members viewed enterprise risk management as a top concern, with 16% identifying it as the top priority.

"It appears that audit committees, in the face of escalating threats, understand the attention cybersecurity demands and that it needs to be overseen with rigorous discipline," Krista Parsons, audit and assurance managing director at Deloitte, said in an email response to questions.

The SEC in December enacted a rule requiring companies to disclose in annual 10-Ks how they manage cyber risk, including defenses, board cybersecurity oversight and assessment of potential and actual attacks. Companies must also detail a cyberattack within four days after finding that it will cause a material loss. cybersecuritydive.com


The Debate Over Possible TikTok Ban
Is a TikTok Ban in the US the Right Move?
TikTok faces further scrutiny as today marked a significant stride in the halls of the United States House of Representatives as they rallied behind a bipartisan effort to push forth a bill targeting the operations of TikTok within the nation's borders.

With the resounding approval in the House, the spotlight now shifts to the Senate, where the fate of the popular video app will be further deliberated. Should the bill garner enough support in the Senate, it would mandate TikTok's Chinese proprietor ByteDance to divest its ownership. If the company chooses not to, then the app faces a potential ban on American soil.

The bipartisan bill, dubbed the Protecting Americans from Foreign Adversary Controlled Applications Act, received an overwhelming endorsement in the House, with a vote tally of 352 to 65, as reported by CNN.

Lawmakers argue that the bill isn't a ban but rather gives TikTok the choice to sever ties with the Chinese Communist Party. They believe TikTok can continue if ByteDance no longer owns it. However, TikTok disagrees, stating on X that the legislation aims for a total ban in the U.S., violating Americans' right to free expression. They argue it will harm businesses, artists, and creators nationwide. retailwire.com


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