30,000-Foot View of Organized Retail Theft
NRF Blog: 6 things to know about retail theft

A baseline for combating organized retail crime

By David Johnston - VP, Asset Protection and Retail Operations, NRF

Let's look at some of the facts around retail theft and organized retail crime.

Retail theft is a problem

A daily review of national and local news highlights that shoplifting and retail theft are at an epidemic level. Shoplifting is no longer an invisible act of concealing merchandise - brazen scofflaws are openly stealing from national retailers and local businesses.

Stolen items are not for personal use

Shoplifting to resell stolen merchandise is part of the organized retail crime enterprise. When a shoplifter walks out with $20,000 in beauty care products or power tools, it's not for personal need. Shoplifters might be stealing for financial need or to feed an addiction, but they are selling the products for drugs or cash to a fencing operation, pawn shop or other illicit businesses.

Widespread retail theft impacts the customer experience

Shoppers expect merchandise to be in stock and readily available for purchase. When items are unavailable for purchase, or a customer must summon and wait for an associate to unlock a product that costs less than $20, frustration mounts and consumers lose confidence in their local retailers. Store closings due to theft inconvenience shoppers who must travel farther for everyday needs.

Communities must respond to the issue

Public leaders feel the pressure, and some states have begun to re-structure or enact new laws or create task forces to go after these criminal groups. Communities that bury their heads in the sand will eventually recognize far greater issues. It's hard to say a problem doesn't exist when communities hold press conferences to reassure citizens that it remains safe to shop in local stores.

Retailers understand the impact across their business | It will take a "whole community" approach to resolve

Read the full blog here


'Out of Control': Portland's Battle Against Shoplifting Continues
The city is asking retailers to bear the cost & responsibility for wrangling theft

Portland retailers try to wrangle theft as city pushes them to do more

"It's unbelievable. The shoplifting we're seeing is out of control. ... It has been bad, but this is worse."

Businesses big and small in the Portland area are reporting a sharp uptick in petty theft, mirroring a sentiment aired by retailers nationwide.

Nike recently sought to hire off-duty Portland Police officers to provide security at a store it had shuttered in response to repeated shoplifting, according to a letter the company sent to Mayor Ted Wheeler. The mayor's office rebuffed the request.

Wheeler's aides asked that the company instead commit to allowing its own security guards to detain shoplifters and then call police, promising more frequent police patrols in the area in response. His office is asking the same of the city's other retailers.

Retailers big and small, though, are leery of taking on that liability. And in recent years, they say they've grown accustomed to long-delayed police responses, or no response at all.

Retail theft also has become a political lightning rod, with some retailers citing shoplifters as the impetus behind store closings. The CEO of Walmart said in December the chain would have to raise prices or shutter stores in response to thievery, and two months later the chain announced it would close two Portland stores.

The Oregon Retail Crime Association of Oregon - an industry group formed in 2019 consisting of corporate retailers, industry groups and labor unions - surveyed big-box retailers in Portland last year.

"Many said it's a waste of time to call the police anymore," said Jeremy Girard, a retail security manager and the group's president. "Even if police do show up and a shoplifter does get arrested, they're just going to get their charges dropped, or they're just going to be let go. So I think there's a lot of frustration there."

The numbers show referrals for theft prosecutions by police have declined in each of the past three years, from about 3,100 in 2019 to just over 900 in 2022. Even among those cases, the percentage pursued by prosecutors fell, too, dipping 47% in 2021 before rebounding to 58% last year.

Some small retailers have started to be more aggressive in trying to stop shoplifters in the act - not in response to the mayor's suggestion, but because they feel as though they're on their own. oregonlive.com


Is Record-Breaking Violence Finally Starting to Decline?
Portland's homicide drop could be a glimmer of hope that record-breaking violence is slowing

Portland homicides have slowed. Here's why experts aren't ready to call it a trend.
After two years of record-breaking violence in Portland, the number of homicides is showing glimmers of decline. But with the year's typically most violent months still ahead this summer, experts say it's too soon to declare victory. And even if the downward trend persists, the number of people being killed in Portland still outpaces the annual figures from before the summer of 2020, when homicides skyrocketed to historic levels.

Portland has recorded 19 homicides so far this year as of Friday, compared with 25 by the end of March in 2021 and 2022 - 24% less than both of the previous two years.

Homicides in Portland climbed steadily between 2016 and 2019, but never topped 40 in a single year, with only one month - April 2019 - seeing as many as six killings. That gradual increase exploded in July 2020, when Portland saw a staggering 15 homicides in a single month. By the end of 2020, 57 people would die by homicide - a total that would almost double the following year.

Portland shattered its 1987 record of 70 homicides when it recorded 92 killings in 2021. The city broke its new record again the following year after recording 101 homicides. The city's population is about 35% larger than it was in 1987, growing from 419,810 to an estimated 647,697 in 2022.

The majority of homicides the last two years were caused by gun violence. Like homicides, shootings in Portland spiked after the summer of 2020 and are starting to show signs of decline, but the numbers are still significantly higher than they previously were. oregonlive.com


Focusing on Repeat Offenders: The Key to Stopping NYC Crime?
Researchers say supporting a few thousand repeat offenders could be the key to reducing crime in NYC
Criminal justice officials and researchers analyzing arrest data have identified a small group of repeat criminal defendants who, if properly monitored and supported with social services, may present an opportunity to reduce street crime in New York City.

The group represents a small portion of all of those charged with crimes over the last two years, but they stand out because they're repeatedly arrested in short periods of time while also failing at high rates to show up to their court hearings. They also appear to be responsible for a disproportionately large percentage of alleged crimes. The debate over changing bail laws, which dominates the state legislature and has delayed approval of the state budget, is now turning to what should be done about these alleged recidivists.

Researchers and some city officials say providing them with comprehensive mental health, housing, and drug rehabilitation services could stop some of them from cycling through a clogged criminal justice system, and even improve public safety. Others, like Gov. Kathy Hochul, say judges should be granted extra discretion to impose bail on that group.

"It's time to have a new debate," said Aubrey Fox, executive director of the nonprofit New York City Criminal Justice Agency, which oversees Supervised Release programs for people charged with crimes. "Let's stop solely focusing on whether bail reform is good or bad, and let's be honest about the challenges we face. The current system is working well for most, but we need better ways of addressing this small group of people who are coming through the system repeatedly."

Of the more than 92,000 people arrested last year, it shows that 2,505 were arrested five or more times. Notably, the most serious charges that most people in that group faced were misdemeanors and non-violent felonies, which further indicates a population of people who might be helped with more robust social services rather than incarceration, researchers said.

Ironically, when looking at the group of people arrested five or more times within a single year, current bail reform measures would not have significantly affected their legal outcomes, the data show. The bail reforms of 2020 limited judges' ability to hold people at Rikers Island jails before their court hearings if they couldn't pay bail. It mostly affected those with misdemeanors and non-violent felonies, though, and didn't significantly affect this highly concentrated group of repeat offenders. gothamist.com


Ex-NYPD Commissioner Says 'Insane' Bail Laws Contribute to Mass Shootings
Let's get organized on guns and 'deal with mass shootings beforehand,' ex-NYPD commish

Howard Safir, NYC's 1996 to 2000 police commissioner:

"Our system lists 350 million guns in the USA. The major cause of death for children. We need to deal with mass shootings BEFOREHAND."

"Red flags exist. Nashville's shooter had a history of mental issues. Yet each state has a different Red Flag Law if they have one at all. Health providers are not required to notify police when anyone exhibits violent tendencies. Nashville had no information or Red Flag Law!"

"Police need to be notified when someone exhibits such proclivity.

"Notification goes to a secure database and can be provided to gun dealers like the airlines' No Fly list that shows in a background check. Remember: That Nashville shooter purchased her guns 'legally.'

"Many shooters post intentions on social media beforehand. Companies already have algorithms that identify objectionable posts. Why not the same for a potential mass shooter?"

"We need background checks and a return to assertive policing. Criminals no longer fear police. Insane no bail laws put them and their guns back on the street." nypost.com


'Disorder and Lawlessness Will Not Be Tolerated'
NYC Mayor Warns Protesters to 'Be on Your Best Behavior' ahead of Trump Arraignment
New York City mayor Eric Adams on Monday discouraged unruly political demonstration over the indictment of former president Trump, who is scheduled to be arraigned at the Manhattan courthouse on Tuesday.

Addressing reporters at a press briefing, Adams warned prospective protesters that disorder and lawlessness will not be tolerated by the massive NYPD deployment that will be on-scene outside the courthouse in lower Manhattan as Trump arrives to be fingerprinted and photographed Tuesday morning.

"Control yourselves. New York City is our home, not a playground for your misplaced anger. We are the safest large city in America because we respect the rule of law in New York City," Adams said in a warning to potential protestors. "And although we have no specific threats, people like Marjorie Taylor Greene, who is known to spread misinformation and hate speech, says she's coming to town. While you in town be on your best behavior. As always, we will not allow violence or vandalism of any kind. And if one is caught participating in any act of violence, they will be arrested and held accountable no matter who you are." nationalreview.com

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Retailers Still Feeling the Impact of COVID
3 years later: How COVID-19 exposed the vulnerability of suppliers and workers to the power of big buyers

A tidal wave of order cancellations in early 2020 had dire repercussions for laborers and their families. The consequences are still being felt.

Three years ago at this time, thousands of retail doors across the U.S. were shuttered as COVID-19 began its rapid, deadly spread.

Most retailers and brands in the U.S. shrugged off the financial impact of the store closures within a year. Meanwhile, many smaller factories closed for good, while workers were laid off and lost desperately needed income. Debt, forced labor and hunger followed the lost wages for many factory workers, especially in apparel and footwear, where incomes historically have been low to begin with.

The early period of the pandemic revealed the cracks in supply chains as well as the underlying dynamics that are still very present by many accounts, and which predated the crisis.

For all the talk of partnership between buyers and suppliers, the COVID-19 crisis showed just how contingent the relationship often is between powerful brands and overseas vendors and their workers, as research since that time has shown.

"It lays bare the vulnerability of the supply chain for the workers," Pamela Abbott, a professor of education and director of the Centre for Global Development at the University of Aberdeen in Scotland, said in an interview.  retaildive.com


$6.7M Retail Lawsuit
Former Bed Bath & Beyond CEO sues over unpaid severance
Former Bed Bath & Beyond CEO Mark Tritton sued the company on Friday, accusing the struggling retailer of cutting off bi-monthly payment of his $6.76 million severance agreement in January.

In a 13-page complaint filed with the Supreme Court of the State of New York, Tritton accuses the company of breach of contract for failing to continue the payments following his departure from the company on June 23, 2022.

According to the court document, Bed Bath & Beyond's chief legal officer, David Kastin, acknowledged the company stopped paying Tritton in order to preserve its cash reserves. Bed Bath & Beyond has struggled in recent months to avoid bankruptcy, warning just last week that it could not rule out needing bankruptcy protection if its latest attempt to raise $300 million in the stock market fails.

In discussions between Kastin, Tritton and his legal counsel, the company "conceded Tritton was (and is) entitled to those payments and that Tritton complied with all requirements and/or conditions," that would entitle him to his severance payments, the court complaint says. retaildive.com


Most Valuable Retail Brands
Amazon, tops list of USA's most valuable brands; Apple, Walmart in top five
The online giant retook the number spot from Apple on brand valuation consultancy Brand Finance's annual ranking of the 500 most valuable U.S. brands. Amazon claimed the top spot even as its brand value declined 15% this year to $299.3 billion from $350.3 billion last year. Despite its fall in value this year, Amazon's brand value is still up 36% since the beginnin

Apple, at No. 2, had a brand value of $297.5 billion, down 16% from $355.1 billion last year. Rounding out the top five: Google (brand value $281.382 billion). Microsoft ($191.574 billion and Walmart ($113.781 billion.

Other retailers in the top 10 were The Home Depot, No. 8 (brand value $61.053 billion) and Starbucks, No. 10 ($53.432 billion). chainstoreage.com


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Active Directory: Most Common Jumping Board for Retail Attacks
Retailers Need to Close Active Directory Security Gaps
Retail operations are an increasingly popular target for cybercriminals. The growth of online shopping, self-checkout systems, point-of-sale transactions and other digital processes has created numerous opportunities for attackers.

And the most common jumping board for cyberattacks on retail? Active Directory (AD). Because AD serves as the backbone of many environments, an attack that takes down AD can effectively halt operations. Therefore, smart retail teams prioritize solutions and processes that significantly reduce that risk by identifying AD security gaps, detecting attacks and quickly implementing recovery plans that can help the organization regain control of their operations.

Three Steps to Securing AD

Retail security teams looking to protect against identity-based attacks should focus on three areas: hardening the AD attack surface, detecting attempted attacks and planning for a fast, secure AD recovery.

1. Prioritize AD security gaps caused by misconfigurations and lapses.

Finding the gaps in security is, of course, the first step in closing them. In AD, these gaps are mostly caused by misconfigurations and lapses in security hygiene. One example is overprivileged accounts, such as when a group is granted administrative privileges inherited by every user. Accounts with weak or plaintext passwords present another easy target, as do older accounts that are no longer used. Misconfigurations involving legacy systems and privileged access for service accounts are other often-overlooked vulnerabilities.

2. Monitor and respond to intrusions and attacks.

Continuous, AD-specific monitoring provides visibility into the network. Such insights can uncover signs that an attack is underway - even a more sophisticated attack that bypasses security agents and doesn't leave a trace in security event logs. Detecting attacks that are in progress but haven't yet locked up systems or done other damage can often enable retail organizations to stop those attacks before they cause revenue loss or reputational damage.

3. Provide AD-specific backup and timely recovery.

An automated AD backup and forest recovery solution can simplify recovery of the entire AD forest. Robust solutions enable a fast rebuild of AD forests on clean servers. Ideally, such solutions can also prevent the reintroduction of ransomware by ensuring that AD backups are complete and malware-free. As a result, the time to fully recover AD can be reduced from days or weeks to minutes, minimizing the interruption to business processes.

A More Secure Retail Sector

Ransomware and other cyberattacks pose a serious threat to retail businesses. Yet Active Directory, an essential infrastructure component that reaches into every aspect of a company, is often overlooked in cybersecurity efforts. Implementing automated solutions and workflows that find gaps in AD, detect intrusions and speed recovery is critical to ensuring that business operations can withstand modern cyberattacks. retailtouchpoints.com
 

Software Liability Reform: Pushing Companies to Prioritize Security
Can a White House initiative compel tech companies to write safer code?

Software liability reform is a centerpiece of the Biden's recent national cybersecurity strategy. Implementing it will be a challenge.

In recent weeks, the Biden administration has opened the door to reforming some of the basic economic incentives of the software industry. In its recently released cyber strategy, the Biden administration called on Congress to develop legislation to develop a software liability regime, one that would allow consumer and businesses to sue software makers if they fail to take proper care in designing the security of their tools. Software companies, if the White House has its way, will no longer be able to disclaim liability for the products they produce.

Three decades after its launch, Microsoft Server Exchange remains buggy, hard to fix and prone to attack, and that has led many security experts to conclude that Microsoft simply isn't putting the necessary resources into maintaining a product that remains a crucial piece of enterprise infrastructure.

In responding to the breaches of 2021, the company's "security and customer support teams worked around the clock to support customers as they updated their systems," a Microsoft spokesperson said, noting that the company continues "to support on-premises customers to move to a supported and up-to-date version."

Errors in code are inevitable. The failure of software makers to put sufficient resources toward security, however, is making it far harder than it should be to harden computer systems, said Trey Herr, who directs the Cyber Statecraft Initiative at the Atlantic Council. "Users shouldn't have to be triaging a Swiss cheese product," he said. "Software will always have bugs but recurring faults, in the same way, in the same place, in the same product, are an issue of bad development practices."

By embracing liability reform, the Biden administration is trying to shift how big software companies allocate their resources. "Liability is about sharpening the incentives for better development and shifting that burden away from users," Herr says. cyberscoop.com


TikTok's Talks With Biden Administration Have Stalled Out
White House talks with TikTok stall after blistering congressional hearing

TikTok's general counsel said Friday the company hasn't heard from the Biden administration since CEO Shou Zi Chew appeared before Congress.

The White House hasn't offered additional feedback on TikTok's proposed plan to avoid a U.S. ban since the congressional hearing where lawmakers quizzed the company's CEO over links to China and other national security concerns, according to TikTok general counsel Erich Andersen.

TikTok's proposed $1.5 billion plan to avoid a U.S. ban would cordon off American user data in Texas-based Oracle servers. Oracle and other third-party auditors would be responsible for auditing the code to make sure it meets its commitment to the U.S. government. Security personnel who would eventually be approved by the U.S. government would oversee the arrangement.

The White House has pushed for TikTok to totally divest the Chinese giant and has signaled that anything short of a sale will lead to a ban. The Chinese government has publicly expressed opposition to a ban.

Andersen says that according to TikTok's logs, the Chinese government has never requested user data and TikTok has never provided it, either. The U.S. government has requested user data from TikTok in criminal investigations and the company has cooperated, according to Andersen.

The White House and intelligence community have referred to the Chinese threat as hypothetical and not one where China has already actively exploited TikTok user data. Speaking at the same conference, Deputy U.S. Attorney General Lisa Monaco declined to offer any additional details on the White House evaluation of the Project Texas proposal. cyberscoop.com


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Chicago: Man Charged With $243,000 Organized Retail Theft Of Tools and Electronics
Attorney General Kwame Raoul today announced criminal charges against a St. Clair County man over the alleged possession, purchase and sale of purported stolen retail merchandise including tools, electronics and lawn equipment in the estimated amount of $243,000. The charges are the latest resulting from a multi-jurisdictional investigation facilitated by Raoul's Organized Retail Crime Task Force.

Raoul's office charged Christopher D. Odem, 50, of Belleville, Illinois, with Class 2 felony organized retail crime, punishable by up to seven years in prison; two counts of Class 1 felony theft, each punishable by up to 15 years in prison; three counts of Class 2 felony theft, each punishable by up to seven years in prison; Class 3 felony theft, punishable by up to five years in prison; and Class 1 felony money laundering, punishable by up to 15 years in prison.

"The effects of organized retail crime are not limited to any one region of Illinois. Buying and reselling stolen items creates a market that encourages retail crime and makes communities less safe," Raoul said. "Today's charges demonstrate the importance of the collaborative work that my office's Organized Retail Crime Task Force is doing to hold individuals accountable. I would like to thank the Illinois State Police and our law enforcement and retail partners for their help with this investigation."

According to Raoul, Odem knowingly purchased new, in-the-box stolen merchandise. The items, including power tools and electronics, were purportedly stolen from local retailers, and the defendant allegedly purchased them for resale. The charges come out of an investigation that resulted in charges filed earlier this month against another St. Clair County man who is also accused of possessing, purchasing and intending to sell purported stolen retail merchandise. The Illinois State Police (ISP) and the Illinois Department of Revenue's (IDOR) Bureau of Criminal Investigations assisted with the investigation.  riverbender.com


ORC 'Flash Mob' Raids of Ulta Stores
Chicago, IL: Man gets 2 years for 'flash mob' raids of Ulta Beauty stores
A man has been sentenced to two years for participating in a series of shoplifting raids at Ulta Beauty stores that cost the popular cosmetics store more than $11,000 in lost merchandise. Jaheim Jackson, 20, pleaded guilty to four counts of felony retail theft and received four concurrent two-year sentences. But, after receiving the state's 50% good behavior discount and other credits, he only spent five days in prison. Prosecutors said Jackson and three women entered the Ulta store at 3015 North Clark in Lakeview a couple of days after Thanksgiving 2021, but they were all asked to leave because Jackson wasn't wearing a COVID mask. They all returned to the store within an hour and loaded baskets with merchandise from the fragrance department, prosecutors said. The group allegedly walked out with $8,500 worth of goods. When Chicago police pulled over a car that a witness saw leaving the scene, Jackson was behind the wheel with Ulta merchandise lying on the back seat, prosecutors alleged. Cops said they could identify Jackson as one of the shoplifters because the store's security cameras recorded him not wearing a mask during the group's initial visit. Investigators arrested Jackson again about a week later after they connected him to an earlier raid at an Ulta store in suburban Berwyn. Prosecutors said the thieves took fragrances worth $2,865 that time.  cwbchicago.com


Queens, NY: Update: Suspects wanted for stealing $5,000 worth of Apple goods from Target store in Queens Place Mall
Police have released photos of two suspects wanted for allegedly stealing more than $5,000 worth of Apple goods from a Target store at the Queens Place Mall last month. The suspects, a man and a woman, allegedly swiped the Apple goods from the store on March 23 at around 8:10 p.m., police said. The Target store is situated inside the mall, located at 88-01 Queens Blvd in Elmhurst. Police from the 110th Precinct released photos of the alleged assailants via Twitter on April 1.  jacksonheightspost.com


Delaware County, PA: Thefts running rampant at Havertown, Pa. shopping plaza
Authorities are searching for brazen thieves allegedly targeting several big box stores along West Township Line Road in Havertown. Police say the suspects walk in, load up a cart and just walk out with the merchandise. In the most recent Facebook post by Haverford Township police, a masked man is accused of stealing on two occasions at the Lowe's, one time in February and again earlier in March. The suspect loaded up on various power tools, generators, and merchandise before leaving without paying, according to police. Another Lowe's theft case was reported Thursday on West Township Line Road. Police say a man stole three battery packs worth nearly $400. Over at Kohl's, a woman is accused of stealing clothes and jewelry on March 18 and 19. In both cases, police say she just simply walked out. At the Giant back on March 9, police posted about a case where a man stole over $200 worth of groceries and energy drinks. Haverford Township Police Department has been making posts about thefts at these stores for months. "Unfortunately, the days and the times we're living in, interest rates are up, inflation is up and people still need," said Zella Gordon, who lives nearby.  6abc.com


Bangor, ME: Four arrested for Penobscot County $1000 theft from multiple store

Mayfield Heights, OH: ORC Suspect connected to crimes in Ohio and Michigan arrested at Micro Center

Highland Township, MI: Two Suspects sought in True Value Hardware store robbery

Concord, CA: Three masked suspects with hammers Smash and Grab jewelry at St. Andrew Jewelers