Cutting Off Retail Criminals at the Source
Preventing In-Store and Online Retail Theft

In the absence of sophisticated fraud detection tools, merchants can still take steps to protect themselves if they have the right policies in place

To prevent easy access of products to fraudsters, merchants should keep the following best practices in mind to mitigate retail theft, both in-store and online:

1. Prioritize communication across all departments.

A priority for businesses should be to minimize gray areas within store processes so staff can easily follow and enforce the proper policies. Consistent communication, from in-store employees to call-center representatives, will help businesses run smoothly and mitigate potential threats of theft. Leaders should view communication with an open mind as well; if their policies are consistently challenged and overruled by in-store management, they should be refined to balance both employee and customer satisfaction.

2. Embrace technology, new and old.

There's an abundance of digital solutions that offer insight into who has picked up orders, made returns or exchanges. Many retailers are still slow to invest in them, allowing fraudsters to take advantage of gaps between online purchases and in-store pickup. These gaps are often seen in how merchants collect and use customer contact information, such as emails, IDs and phone numbers. This data only works well to prevent fraud if it's properly shared between two commerce channels.

3. Be your business' bouncer and check for IDs.

Requiring identification can be tricky; whether to enforce showing a driver's license during pickup must be defined by the merchant. The most secure company policy would be to require the cardholder to pick up the product and show a government ID before the product can be claimed.

4. Cut thieves off at the source.

Accumulating stolen goods and reselling them is a slow process; fraudsters prefer to return products for cash or gift cards to make stealing a more profitable endeavor. Establishing a return process that enforces refunds to the original payment method is a smart solution to prevent thieves from doubling down on accumulating merchandise refunds.

5. Tie all fraud prevention methods together. mytotalretail.com

More States Take Action to Fight ORC
Lawmakers consider tougher penalties on organized retail crime

Legislation would lead to penalties greater than that of general theft. Retailers push Congress for greater disclosure by online retailers on sources for goods.

Since the holidays, leaders of some of the country's biggest retail chains, including Twin Cities-based Target Corp. and Best Buy Co., have been more vocal about organized retail crime. National retailers as well as local retail outlets are pushing for new laws such as creating safeguards that could help prevent the mass sale of stolen goods online and greater distinction between how someone is punished for petty theft versus involvement in an elaborate multijurisdictional crime ring.

"These costs just aren't to retailers," Bruce Nustad, president of the Minnesota Retailers Association, told a state Senate hearing in March. Organized retail crime "impacts consumer prices, of course, and probably even more importantly, it impacts consumer and worker safety."

Sen. Warren Limmer, R-Maple Grove, authored a bill in the Senate that would define organized retail theft as when a person steals a good, then resells or intends to resell it or makes money returning the item to the store. He proposes up to 15 years in prison depending on the value of the stolen good and other factors, including the suspect's possible criminal past.

"My hope is that this bill will provide prosecutors and law enforcement an updated tool to help address the theft going on at retailers of all sizes across Minnesota," Limmer said in a statement.

The Minnesota Organized Retail Crime Association - a nonprofit group of law enforcement, retail loss prevention experts and prosecutors - also supports the bill. "Since the start of COVID, the impact [of organized retail crime] has significantly increased within the industry," Cody Johnson, co-president of the association, said in an e-mail.

More than 30 states have laws defining organized retail crime. Illinois and other states are discussing such legislation. startribune.com

'These Crimes Are Not Random'
Illinois lawmakers targeting crime rings behind smash-and-grab robberies
Participating in a crime ring that steals from stores -- like the smash-and-grab robberies we've seen at area malls over the past year -- could soon be a felony, under a bipartisan proposal touted this week by suburban lawmakers.

The measure, part of a Senate amendment to House Bill 1091, would create the offense of "organized retail crime" that could be punishable by up to seven years in prison. The legislation defines organized retail crime as stealing with the intent to resell items, whether it be by the thieves or by someone else. It also would apply to someone who organizes such an effort.

"Make no mistake, these crimes are not random," state Sen. John Curran, a Republican from Downers Grove, said at a news conference March 29 introducing the legislation.

Curran described retail theft rings as sophisticated enterprises in which the thieves are often low-ranking members of criminal organizations. Law enforcement officials believe organized retail crime often is perpetrated by the same groups that are trafficking drugs and humans.

"Law enforcement will not only be able to attack first-line perpetrators, but everyone throughout the chain," Curran said of the proposal.

The measure also calls for stricter regulations of online third-party marketplaces -- examples include Amazon Marketplace and eBay -- where criminals often sell the stolen goods. shawlocal.com
 
10-Year Minimum Sentence for Smash & Grab Criminals
Providence, RI:  Bill calls for mandatory 10-year sentence in smash-and-grab burglaries in Rhode Island
Rhode Island lawmakers introduced a bill Tuesday that would strengthen the punishment for a smash and grab -- when two or more people break into a business with the intent to steal.

"I think we need to hop on this now, stop them now, and send them a strong message, not here in Rhode Island," said state Rep. Charlene Lima, the sponsor of bill H.7702.

The bill would create a mandatory prison sentence of 10 years for two or more people who break into a business with the intent to steal. Lima said she hopes to send a strong message to those who are smashing and grabbing in neighboring states. "No bail, no plea bargaining. You will go away for 10 years, so do not come to Rhode Island and commit these kind of crimes," she said. turnto10.com

What Happens in Seattle Does NOT Stay in Seattle
Op-Ed: Seattle's crime surge spreads statewide thanks to progressive policies
Seattle has averaged more than one homicide a week so far this year. Gun violence has nearly doubled, with 95% more shots fired and a 171% increase in gunshot victims compared to last year. Drug dealing is rampant, homeless shoplifters are destroying local businesses, and random, brutal assaults are all too common.

In nearby Tacoma, the homicide rate is just as bad as Seattle. Robberies in the city hit 219 through March 13. Compare that to last year's 83 at that point last year. Yakima, located in central Washington, has seen a spiraling domestic violence epidemic with 1,592 domestic violence incidents since last July.

Where did this all come from? The assault on policing and the courts after the death of George Floyd in Minneapolis. Fringe activists demanded changes and like-minded Democrats lawmakers obliged.

Democrats passed legislation preventing cops from using force -- including detention at the scene of a crime -- unless probable cause exists for an arrest. They even banned most vehicular pursuits, which means criminals can quite literally drive off from the scene of most crimes without fear that they'll be chased and detained. Cities like Seattle went one step further, banning most traffic stops altogether.

This matters because criminals know these new laws work in their favor and they're taking advantage. Smash and grabs continue to wreak havoc. Crooks break into various retail stores, usually driving a car (but sometimes a forklift) into a storefront, before physically removing the ATM. Due to the cash-only nature of pot shops, they are also being targeted, with some 200 robberies this year and many of them are armed. foxnews.com

Another Bloody Weekend in America
At least 13 dead, nearly 50 injured in weekend mass shootings around the US
At least 13 people were killed and more than 40 others injured in shootings across the country this weekend, including one in Sacramento, where the police chief called the scale of violence "unprecedented" in her 27-year career there.

Six people died and 12 were injured in that incident early Sunday, which investigators believe involves multiple shooters, Police Chief Katherine Lester said. The mass shooting not far from the California State Capitol is one of the largest of the more than 120 in the US so far this year, according to data collected by the Gun Violence Archive.

The GVA, like CNN, defines a mass shooting as four or more people shot, not including the shooter. There were, however, shootings this weekend that did not meet the definition, including one at a Norfolk, Virginia, mall which left 1 dead and 2 injured.

This weekend's violence comes just two weeks after the largest-scale US mass shooting in more than two years happened at a car show in Dumas, Arkansas, where one person died and at least 27 were injured. mercurynews.com

Buffalo task force looks to combat violent crime surge

Expanding the Use of Facial Recognition
Face scanner Clearview AI aims to branch out beyond police
A controversial face recognition company that's built a massive photographic dossier of the world's people for use by police, national governments and - most recently - the Ukrainian military is now planning to offer its technology to banks and other private businesses.

The New York startup is looking to launch a new business venture to compete with the likes of Amazon and Microsoft in verifying people's identity using facial recognition.

The new "consent-based" product would use Clearview's algorithms to verify a person's face, but would not involve its ever-growing trove of some 20 billion images, which Ton-That said is reserved for law enforcement use. Such ID checks that can be used to validate bank transactions or for other commercial purposes are the "least controversial use case" of facial recognition, he said.

That's in contrast to the business practice for which Clearview is best known: collecting a huge trove of images posted on Facebook, YouTube and just about anywhere else on the publicly-accessible internet.

Regulators from Australia to Canada, France and Italy have taken measures to try to stop Clearview from pulling people's faces into its facial recognition engine without their consent. So have tech giants such as Google and Facebook. A group of U.S. lawmakers earlier this year warned that "Clearview AI's technology could eliminate public anonymity in the United States."

Despite opposition from lawmakers, regulators, privacy advocates and the websites it scrapes for data, Clearview has continued to rack up new contracts with police departments and other government agencies. In the meantime, its growing database has helped Clearview's artificial intelligence technology learn and grow more accurate. apnews.com

RFID & Food Safety
Chipotle is testing RFID tags to track ingredients for food safety

Chipotle will be using this technology at its Chicago distribution center restaurants in the Chicago area at first

Chipotle Mexican Grill announced Tuesday that the company will be testing out RFID tags (radio frequency identification) at its Chicago distribution center and at 200 Chicago stores to improve the traceability of its inventory systems. With these tags, Chipotle will be able to track ingredients all along the supply chain, so therefore if there is a food safety issue, it can be more easily traced.

"RFID labels transform inventory management into an automatic, digital function that optimizes restaurant operations and gives our restaurant support centers access to inventory data in real-time," Chipotle chief restaurant officer Scott Boatwright said in a statement. "This integrated technology is improving our employee experience in participating restaurants while also benefiting our supply partners."

Chipotle worked with Auburn University's RIFDLab to create the pilot program, along with RFID software provider Mojix, materials science and RFID innovator Avery Dennison, and RFID reader and encoder solutions provider Zebra Technologies. The tags will be tested on meat, dairy, and avocados from five of Chipotle's suppliers. Here's how it will work: ingredients will arrive at Chipotle restaurants with RFID-enabled labels and the traceability system will allow Chipotle to resolve any matters of food safety and quality issues quickly and easily.

Chipotle is using this pilot program as an opportunity to learn about RFID labels before rolling it out to the restaurants systemwide. nrn.com

Progressives Blame Companies for Price Hikes
As inflation spreads, rising prices fuel charges of corporate greed

Liberals allege companies are taking advantage of the moment, but companies say much more complicated economic forces are at work

Procter & Gamble is charging more for diapers, laundry detergent, razors and just about everything else it makes, joining scores of corporations in a display of market power that is shocking consumers who grew accustomed over the past decade to prices virtually flatlining.

To P&G executives, the price hikes are unavoidable at a time when costs for wages, freight and raw materials are rising by the largest amount in two decades. But to liberals, P&G and its corporate kin are not reacting to inflation so much as causing it. Companies that are raising prices for beer, chicken, toys, gasoline and medicine, the critics say, are just using inflation as an excuse to pad record profits and to reward Wall Street. washingtonpost.com

Everything Out in the Open - No More Hiding Dirty Laundry
One By One, States Are Banning NDAs To Protect Workers
Amazon, Starbucks, Microsoft and Costco are among the thousands of employers in Washington state that will soon be barred from making nondisclosure agreements a condition of employment or settlements, as the Evergreen State becomes the latest to do away with these prickly legal tools.

Washington's Silenced No More Act, which Gov. Jay Inslee signed into law March 24, will make it unlawful for employers in the state to require, or even request, that workers sign NDAs or nondisparagement provisions that restrict workers' right to talk openly about illegal discrimination, harassment, sexual assault, retaliation, wage and hour violations, or any other breaches of public policy.

Unlike laws in California and New York that also restrict use of NDAs by employers, the Washington law goes a step further by barring confidentiality clauses in workplace settlements related to illegal acts, even if requested by an employee. law360.com

Target opens its 30,000-square-foot Times Square store
In March, the retailer said that it would add 30 stores to its footprint in 2022 to reach new markets, including mid-size stores in suburban areas and small-format locations in urban cores. That, along with renovations to 200 stores and opening additional Ulta shop-in-shops, makes up part of Target's larger goal of investing $5 billion to scale operations this year.  retaildive.com corporate.target.com

NRF in Washington: Advocacy update April 2022

Skippy recalls 60K peanut butter jars that may contain stainless steel fragments

Food prices expected to soar, USDA predicts

Advancing Collaboration on Organized Retail Crime in Canada

Addressing organized retail crime is a top priority for retailers across Canada. Collaboration between retailers, law enforcement, and justice is key. This panel examines how retailers can work together to drive change in the perceptions and impact of major retail crime. This discussion includes ideas for how retailers can take the lead and how Canadian retail organizations can achieve a deeper level of collaboration for increased results.

See the full agenda here


More Reasons to Attend

Exploring the growing complexity of retail loss prevention

As commerce and consumer habits evolve, the function of preventing loss in retail has become increasingly complex. Teams charged with protecting and enhancing retail profitability must take on new responsibilities to protect people, property, and assets.

Retail Council of Canada's virtual Retail Loss Prevention Forum, on April 12, 2022, will examine how retail loss prevention and risk management teams are evolving their roles, responsibilities, and empowering their staff with the new skills and approaches required to be effective in today's retail environment.

During this packed ½ day forum, leading retailers will share real-life, actionable examples of how new proactive tactics are outsmarting felonious activities.

Click here to learn more about the event's topics and speakers.
 

Jury Finds Illinois Man Guilty of Operating $20 Million Retail Crime Scheme
After four days of trial, a federal jury found Artur Gilowski, 48, of Barrington, IL, guilty of conspiracy to commit interstate transportation of stolen property and conspiracy to commit mail fraud. The defendant was ordered detained immediately after the verdict was read on Thursday.

According to evidence presented at trial, Mr. Gilowski's coconspirators stole tens of thousands of products - valued at over $20 million - from brick-and-mortar retail stores across the United States, then shipped them to Mr. Gilowski, who sold the stolen goods on various e-commerce websites, generating more than $11 million in profits.

The thieves traveled across the country in vehicles registered under false names and used "booster skirts" (garments with concealment pouches for stolen goods) and electronic transmitters designed to disrupt retailers' anti-theft and loss-prevention measures. Using aliases, they rented storage lockers where they kept the stolen items until they could be shipped to interstate and foreign customers via the U.S. Postal Service, UPS, and FedEx.

Mr. Gilowski created a network of numerous online seller profiles, multiple bank accounts, and various companies registered in other people's names to conduct the unlawful online sale scheme and funnel the proceeds of his illicit operation to himself.

The evidence also showed that Mr. Gilowski received over a million dollars in cash from his crime ring - including $97,000 that was found in the center console of Mr. Gilowski's truck - which led one of Mr. Gilowski's coconspirators to testify at trial that Mr. Gilowski "treated money like trash."

Five of Mr. Gilowski's coconspirators pleaded guilty prior to trial. Mr. Gilowski now faces up to 25 years in federal prison. He is set for sentencing on August 2. justice.gov

Members Stole Millions from Walmart, AT&T Stores Across the Country
Case Concludes Involving Organized Fraud Ring in Detroit
The last of eight members of an organized fraud ring based in Detroit has been sentenced, concluding a multi-year prosecution that originated with a twenty-three-count indictment alleging conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft, United States Attorney Dawn N. Ison announced today

Today, Tayan Jackson, 35, of Los Angeles, CA, was sentenced to 2 years in federal prison by U.S. District Judge Terrence G. Berg. The defendant was also ordered to repay $404,386.70 in restitution. Collectively, the defendants in this case have been ordered to pay more than $2.3 million in restitution.

the defendants obtained stolen credit card information on the dark web and from other sources, which they then used to produce counterfeit or "cloned" credit cards. The defendants then traveled to Walmart stores throughout the United States, often in small groups, where they used the cloned credit cards of the unwitting accountholders to purchase gift cards, typically in $500 increments. Members of the group often purchased tens of thousands of dollars in gift cards in a single day, hitting multiple Walmart stores in a given city before returning home to Michigan. Upon their return, the gift cards were then resold for cash and other items, to conceal and disguise the nature and source of the illicit proceeds. The scheme began in 2015, lasted for nearly three years, and resulted in millions in losses.

During the investigation, the government also discovered that the group was involved in yet another fraudulent scheme, which began in 2017 and targeted AT&T. The defendants used personal identifiable information that they obtained from the dark web and other sources to create cell phone accounts with AT&T, all without their victims' knowledge or permission. Members of the group and others would then purchase Apple iPhones using the victims' accounts. The iPhones were then resold for profit. Multiple defendants pleaded guilty to their involvement in the AT&T scheme and received sentences ranging from 4 to 8 years.

"This was an incredibly sophisticated group, who engaged in widespread fraud across multiple states over multiple years, stealing millions of dollars in the process."

United States Attorney Dawn N. Ison applauded all of the work that went into the prosecution, remarking, "This was a team effort, and I want to thank not only our federal law enforcement partners, but the numerous state and local law enforcement agencies around the country who assisted in identifying the members of this group. I also want to commend the incredible work done by Walmart's Global Investigations Team, AT&T's Asset Protection Team, and American Express Global Security-all of which were integral to the investigation and successful prosecution of this group."  justice.gov

Tampa, FL: Florida gas theft ring stole $60K worth of fuel, sold it at discount
Several people were arrested after authorities busted a suspected fuel theft ring in Hillsborough County, Florida. Hillsborough County Sheriff Chad Chronister said at a press conference Monday that his agency began its investigation on Feb. 25 after two Circle K stores-located at 3702 Highway 41 in Ruskin and 5004 Highway 41 in Apollo Beach-discovered tremendous fuel discrepancies. Chronister said the suspects used seven different trucks to steal over $60,000 worth of gasoline. Surveillance video showed the men pull their vehicles up to the pump and unlock it. They would remove the device that's used to control the price display and replace it with a homemade device. Then they pumped the gas into "large bladders" that could hold more fuel at a time, Chronister said. The gasoline was taken to bulk sites near the Tampa International Airport and the Orient Road Jail and sold at a discount, according to the sheriff. ktsm.com

Chicago, IL: Smash & Grab Robbers break windows at Macy's and LensCrafters in Loop in bid to get glasses
Two stores in the Loop had windows broken minutes apart early Tuesday in what police said were attempts by robbers to take merchandise from eyeglass displays. The first break-in was Macy's at 111 N. State St. where two people broke the west side storefront window and tried to take sunglasses, but they dropped the merchandise before fleeing after being confronted by a security officer, police said. The two fled in a white van where a third person was waiting just before 4:30 a.m. police said Minutes later, there was another break-in at LensCrafters at 225 N. Michigan Ave. where an unknown number of people broke the front glass window of the store at 4:59 a.m., police said. Authorities reported that this time, merchandise was taken from the store.  abc7chicago.com

Seattle Man Pleads Guilty to Wire Fraud and Aggravated Identity Theft
from at least May 2018 through November 2020, Ryan M. Tichy, 42, executed a scheme to defraud wherein he obtained the means of identification of many individuals and used that information to create false identification documents, open credit accounts, obtain loans, takeover existing credit accounts, and make purchases. The fraudulently obtained means of identification included names, social security numbers, dates of birth, and account numbers. After he gathered that information, Tichy would often create a fake driver's license using his picture but the victim's name. Tichy travelled around Washington, Idaho, Oregon, Nevada, and elsewhere to make fraudulent purchases.

Tichy is scheduled to be sentenced on June 21, 2022, and faces a maximum penalty of up to 20 years in federal prison for wire fraud and a mandatory minimum of two years for aggravated identity theft. justice.gov

Update: Champaign, IL: Detectives return $2k+ in stolen merch to Good Vibes
Detectives returned over $2,000 in stolen electronics - including at least a $1,500 audio receiver, $250 turntable and $800 wireless amplifier - to Good Vibes in Champaign Monday. Authorities say these two women walked into the store and took the equipment in just a minute and 14 seconds. wcia.com

Danville, IN: Police searching for Walmart shoplifting suspects after calling off pursuit

Jackson, MI: Home Depot theft suspects found with meth, connected to HD theft in Lansing

Cleveland, OH: Shoplifter charged with $3200 theft of cologne and fragrances from Meijer

Marion County, FL: Dollar General employee arrested after helping two suspects steal nearly $1,100 worth of merchandise