The Real Drivers of Organized Retail Theft
Organized theft gangs have been emboldened by progressive reforms

The Myth of the Starving Shoplifter

Retail crime is driven by reduced penalties and organized gangs, not economic hardship.

In truth, America's exploding shoplifting problem predates our current economic difficulties. Much of the stealing, store owners and security experts say, has less to do with putting food on the table than with a rise in organized theft, and it's having a particularly adverse effect in cities where criminal-justice reforms have made it easy to get away with.

Retailers say that the problem gained momentum about a decade ago, when states began decriminalizing low-level shoplifting, raising the value of goods that a person must steal to enable prosecutors to bring felony charges.

More than two-thirds of states now treat shoplifting as a misdemeanor if someone boosts less than $1,000 in goods, and 15 states have raised their limit to $1,500 or more. More than 70 percent of surveyed retailers reported that shoplifting spiked in their stores after these changes.

Bail reforms that free without bond those arrested for shoplifting have also contributed to the problem. An official of the Association of Certified Anti-Money Laundering Specialists says that retail theft is now "a low-risk and high-reward line of business."

Rampant shoplifting is undermining retailer profits and vaporizing jobs. Walmart announced the closure of its only store in disorder-plagued Portland, Oregon, along with four stores in crime-wracked Chicago. Target, which estimated that retail theft cost it half a billion dollars last year, is shuttering stores in several cities, including Baltimore. Rite Aid is shutting down stores in New York City after the company's chief executive described how hard it is to stop theft there. Whole Foods closed its flagship San Francisco store after one year because of rampant theft. The CEO of Home Depot told Wall Street analysts that shoplifting threatens its bottom line. "The country has a retail theft problem," he said.

Under pressure, the Department of Homeland Security and Immigration and Customs Enforcement have begun focusing on organized retail crime, especially "smash and grab" rings. Retailers are also lobbying for passage of the Combating Organized Retail Crime Act, which establishes a unit within Homeland Security to address the issue. Some states are also cracking down.

It remains to be seen, however, whether these efforts will be enough to reverse the incentives created by de facto retail-theft decriminalization and revolving-door bail "reform" policies. city-journal.org


Combating Organized Retail Crime Act Update
Federal ORC Legislation Gains Momentum with New Co-Sponsors
Following NRF's recent Small Business Fly-in, we are pleased to report the Combating Organized Retail Crime Act gained 12 new House co-sponsors and two new Senate co-sponsors, bringing the total number of support to 63 lawmakers. The urgent need for this legislation is reinforced in a piece by The Washington Post Editorial Board last week. Join NRF in advocating for this bill that will amplify resources and coordination among federal, state and local law enforcement agencies to fight ORC. nrf.com


Shoplifting is Transforming Big Retailers
Things Are Changing at a Target Near You: The Damaging Effects of Shoplifting
Shoplifting continues to make headlines in the United States, as businesses keep calling it out as a major source of their financial woes - among them Home Depot, Walmart, Walgreens and Best Buy. Now Target is leading the charge.

How Much Money Has Target Lost to Shoplifting?

Target's total shrink was around $400 million in fiscal year 2021 and rose to $736 million in 2022. If the anticipated $500 million increase does materialize in 2023, that would bring the three-year total to a whopping $2.4 billion - but it's hard to say how much of that can be attributed to shoplifting.

Here We Go Again?

If this all sounds familiar, it may be because Walgreens executives made similar claims in fall 2021, when they cited organized shoplifting as the reason they were closing five locations in San Francisco. They walked that back during an earnings call early this year, during which Walgreens Chief Financial Officer James Kehoe conceded that the company had likely overspent on security measures and might have gone so far as to mischaracterize how much theft had actually taken place.

Target, like many retailers, is in a tough position. It's no secret that the company has struggled lately, with falling profit margins and earnings misses driving the stock price down over the last six months. Pushing a narrative like a shoplifting crime wave could be a way to deflect some attention away from leadership for tough business results.

What Changes Target Is Making

Whether the shoplifting narrative is overblown or gospel truth, there's no doubt that Target has been taking steps to mitigate theft in its almost 2,000 locations in the U.S. Cornell said the company already has begun installing protective fixtures in some stores, as well as adjusting assortment (likely removing the most frequently stolen merchandise from stores in higher-crime areas).

Cornell also noted that the company is connecting with policy makers, law enforcement organizations and industry trade groups to explore political solutions to the issue. So far, however, there are no plans for store closures. Cornell said Target is "focused on keeping our stores open in the markets where problems are occurring."  finance.yahoo.com


Will Deploying More Cops Help Businesses Fight Crime?
Seattle Can't Fix Broken Windows with More Cops

But a More Robust Storefront Repair Fund Could Help

Businesses understandably complain about theft and property destruction. Lately, those concerns have translated into some of Seattle's small businesses and associations pushing for more cops on the streets. But no one can definitively claim that hiring more police results in lower crime rates and fewer break-ins.

People who study the issue can't say whether larger police departments and budgets reduce crime rates. Moreover, even if we put a cop on every block, an arrest after the fact wouldn't suddenly make a busted business whole. Courts can tell defendants to pay restitution, but that order comes at the end of the criminal justice process and assumes the convicted person can pay. If the crime stemmed from poverty or untreated mental illness, which is often the case, then the money just isn't there.

Other cities offer more robust storefront repair and security improvement funding. In Seattle, businesses that qualify for the storefront grants must employ fewer than 50 people, not exceed more than $7 million in annual net revenue, and have been open for at least two years prior to October 2022, among other stipulations. By contrast, a similar storefront program in Chicago provides grants of up to $150,000 to businesses with up to 200 employees and annual sales of up to $9 million. In San Francisco, the city started lending out its public works department to provide graffiti abatement to businesses in certain commercial neighborhoods. thestranger.com


Retailers in Seattle Facing 'Influx in Crime'
Seattle increases patrols amid surge in retail theft during busy weekends

This past weekend was one of the busiest weekends in Seattle.

The Taylor Swift Era's concert, the Capitol Hill Block Party and the return of A Bite of Seattle. Each event is expected to draw hundreds of thousands of tourists to the Emerald City at a time when business owners said crime and theft are at the top of their minds.

The Seattle Police Department (SPD) said extra officers will be brought in to patrol the large masses of people in the city this weekend. In addition to security, local business owners said with an influx in tourists comes an influx in crime, specifically retail theft.

According to a 2022 National Retail Federation report, one of the top U.S. cities affected by organized retail theft was Seattle. Seattle was 10th in 2020 and 8th in 2021, according to the 2022 National Retail Security Survey.

The Washington Retail Association indicated that, in the past year, 80% of Washington state retailers have reported a rise in violence and aggression towards their frontline workers.

As with all large events, SPD will enact a comprehensive operational plan to maintain public safety. That includes an increased police presence, traffic management, and enhanced communication.  cbsaustin.com


Gun-Toting Gangs of Children are Terrorizing America
Juvenile Gun Crime Puts Criminal-Justice Reforms in the Spotlight

America is in the midst of a juvenile crime wave. Progressive adults only have themselves to blame.

It was another steamy summer night in the Big Apple, where adolescents are increasingly victims and victimizers. But these surreal scenes are playing out across the country with teens and pre-teens violently mobbing downtowns and assaulting young and old, alike.

Make no mistake - our youth are spiraling out of control. Last week in San Francisco, 81 minors were arrested for destroying a light-rail vehicle. They were reportedly carrying guns, fireworks, drug paraphernalia, and shouting 'f*** the police!'

The weekend before that in the City by the Bay, thieving gangs of kids in ski masks, armed with baseball bats targeted stroller moms at school pick-up.

Nationwide, 1,150 juveniles committed gun homicides between 2019 and 2020. That's more than double the number from a decade ago. Child gun deaths rose by 50 percent between 2019 and 2021. And in 2019, gun violence surpassed car accidents are the leading cause of death among Americans under age 18.

What is happening? Look no further than New York City and Chicago where left-wing prosecutors and politicians have obliterated the moral and legal boundaries that help kids thrive.

New York State reforms have also been monumentally deadly and destructive for kids. The 2017 'Raise the Age' legislation hiked the age of criminal responsibility to 18-years-old and narrowed the thresholds for imposing any criminal liabilty for teen crime offenders to absurdist levels. dailymail.co.uk


Lowes Reinstates Employee Fired for Confronting Thief
(Update) Longtime Lowes employee reinstated after being fired for attempting to stop shoplifters
Donna Hansbrough, the 68-year-old Lowes employee who was fired for violating the company's policy on stopping the theft of merchandise was reinstated earlier today.

"After senior management became aware of the incident and spoke to Donna Hansbrough today, we are reinstating her job, and we are pleased that she has accepted the offer to return to Lowe's. First and foremost, there's nothing more important than the safety of our customers and associates. Products can be replaced; people cannot. We continue to work closely with law enforcement to investigate and prosecute those who are responsible for this theft and violent attack," the statement read.

Hansbrough was initially fired after she attempted to stop thieves from stealing roughly $2,000 worth of merchandise from a Georgia store.

The longtime employee, who worked at the company for 13 years, was punched in the face three times on June 25 after she grabbed one of the trio's shopping carts. fox5atlanta.com


NY lawmakers persist in advocating for measures to combat shoplifting

In Case You Missed It: United States tops 400 mass shootings in 2023

San Francisco's Downtown Exodus Continues
(Update) Map shows every major retail closure this year
A wave of retail store closures has decimated downtown San Francisco, with more than a dozen notable destinations having closed or announced closures since the beginning of 2023. Old Navy, AmazonGo, Saks Off Fifth, Anthropologie and Office Depot are among the major retail brands that said they would shutter storefronts.

Most recently, Westfield announced that they would be giving up its San Francisco mall to lenders in the wake of Nordstrom's planned closure. The mall will continue to be open, but the transfer casts a cloud over the future of its remaining tenants.

Retail closures have impacted cities across the country, as a rise in online shopping and changing habits during the pandemic affected foot traffic in retail spaces. But San Francisco's closures have received more media attention, with retailers citing additional challenges such as high inflation, supply chain issues, labor shortages and crime. And the city's downtown core has been affected more than other parts of the city, according to sales tax data. sfchronicle.com

Lawmakers Unveil New Criminal Justice & Employment Reforms
Employers, Congress Advocate for Second-Chance Hiring
At a time when employers are scrambling to fill thousands of open positions, Congress has formed the Bipartisan Second Chance Task Force to help returning citizens obtain employment, housing and health care to rebuild their lives, said Rep. David Trone, D-Md., co-founder of the task force.

Congressional members from both sides of the aisle have introduced second-chance hiring bills to support second-chance employment. Trone; Rep. John Rutherford, R-Fla.; Rep. Kelly Armstrong, R-N.D.; and Rep. Lisa Blunt Rochester, D-Del., formed the task force with the "goal of introducing more second-chance legislation in Congress and partnering with the private sector to bring attention to this growing problem," Trone said.

Trone said the task force has introduced bills including:

• The Fresh Start Act, which would streamline the sealing of eligible arrest records for returning citizens who have not committed a felony or additional crimes.

• The Workforce Justice Act, which encourages states to "ban the box," or not request applicants' criminal history, on job applications nationwide.

• The Due Process Continuity of Care Act, which amends the Medicaid Inmate Exclusion Policy to allow coverage for all pretrial detainees.

"We hope to pass meaningful criminal justice reform that's centered around improving re-entry outcomes for returning citizens," Trone said. "All of these bills are focused on ensuring justice is upheld and that second chances are given-and I won't rest until they're signed into law."  shrm.org
 

200 New AP Job Listings Company-Wide
Jewel-Osco looking to add loss prevention positions chainwide

The regional grocer posted nearly 200 job listings last week for asset protection specialists, indicating a company-wide initiative to bolster theft deterrence in its stores.

Jewel-Osco is looking to onboard 187 asset protection specialists, according to a slew of LinkedIn job postings that went up last week.

The high number of listings and the variety of locations hiring for the position signifies a chainwide initiative for the Albertsons-owned retailer to bolster its loss prevention efforts.

As theft continues to escalate, many grocers are working to establish loss prevention teams, hiring experts to work with law enforcement and to identify repeat offenders and detect theft patterns.

An asset protection specialist for the grocer would focus on "preventing loss and controlling shrink by monitoring various areas of the fraud, compliance discrepancies, and other related activities," according to Jewel-Osco's LinkedIn job postings. grocerydive.com


The Mask Debate Resurfaces
Should Restaurants Like In-N-Out Ban Masks for Employees?
In-N-Out plans to start barring employees in five states from wearing masks in order to "promote clear and effective communication" and showcase "our Associates' smiles." A doctor's note will be required for employees who chose to wear a mask.

The rule applies to locations in Arizona, Colorado, Nevada, Texas, and Utah. Exempt states are California and Oregon, where local laws allow workers to don masks if they choose. Across all stores, associates who wear masks for medical reasons must wear a company-provided N95 mask.

Masks became a flash point during the pandemic as mask mandates arrived to slow the spread of the coronavirus, and some saw them as an infringement on their personal freedom. Many retailers began relaxing mask mandates for associates in early 2022 as COVID-19 infection rates fell.

Some retail employees and customers, including those with compromised immune systems, still wear masks because it makes them feel safer in public.

A Gallup poll taken in late February found 31% of surveyed Americans reported wearing a face mask in the previous seven days, down from about 90% during the second half of 2020. Additionally, 14% had avoided going to public places such as stores or restaurants in the previous seven days for social distancing reasons. retailwire.com

 
'Most Challenging Generation' to Work With?
Working with Gen Z is a Bit Challenging

Survey says this generation lacks technological skills, effort and motivation

Each generation seems to feel that the younger generation is hard to work with. To test this theory for GenZers,ResumeBuilder surveyed 1,344 managers. The verdict? 74% of managers agreed that the most challenging generation to work with is in fact Gen Zers.

Why? They lack technological skills (39%), effort (37%), and motivation (37%), among other skills and traits.

And these reasons cause companies to fire these workers. The survey found that one in eight have fired a GenZer within a week of their start date. The reason given for this early departure is that they lack motivation and effort and are too easily offended. ehstoday.com
 

Apple Retail Stores to Offer Customers Home Delivery Option

Abercrombie & Fitch opens new Fifth Avenue storefront

Domino's to go on a driver hiring spree as it gears up for Uber Eats partnership

Fight Back Against Ransomware
Best Practices for Preventing Ransomware
There are various no-cost resources that organizations can use to shore up against ransomware attacks, according to the U.S. Cybersecurity & Infrastructure Security Agency (CISA).

Protecting Data and Networks

• Back up computers. Regular and frequent backups of the system and other important files mean that if a computer is infected with ransomware, it can be restored to its previous state.

• Store backups separately. Store backups on a separate device, such as an external hard drive that cannot be accessed from the network.

• Train your organization. Provide cybersecurity awareness training to staff. Ideally, training should be regular and mandatory, so personnel are aware of current trends and techniques that attackers use.

Prevention Against Infection

• Patch regularly. Ensure applications and operating systems are updated with the latest patches.

• Click with caution. Be cautious when clicking directly on links in emails, regardless of whether it seems to be from a trusted sender. Malicious website addresses can appear to be nearly identical to legitimate ones.

• Assess attachments. Be careful when opening email attachments, especially when they are ZIP files.

• Embrace encryption. Safeguard personal information by ensuring that any submitted information will be encrypted.

• Verify senders. If an email looks suspicious, verify the sender by contacting him or her directly and do not click on any links in the email.

• Educate yourself. Stay informed about recent cybersecurity threats and ransomware techniques. Sign up for CISA notifications that will notify you to new alerts.

• Maintain your hygiene. Use and maintain antivirus software, email filters, and firewalls that can work to reduce malicious network traffic.

If your computer becomes infected with ransomware, immediately report the incident to your IT team or security office. asisonline.org


The Rising Cost of Data Breach Investigations
Investigations are causing data breach costs to skyrocket, IBM finds

Organizations are under mounting pressure to conduct more thorough investigations as the complexity of data breaches grow.

Data breach costs hit a new high this year, reaching almost $4.5 million per incident on average, representing a more than 15% increase in costs since 2020, according to the annual "Cost of a Data Breach Report" released Monday by IBM Security.

The investigation phase of data breaches are the fastest growing and costliest category of data breach expenses, contributing to the consistent year-over-year increase in costs. Detection and escalation costs jumped almost 10% to nearly $1.6 million per incident, IBM found.

"The breadth and depth of incident response investigations are scaling up directly with the overall costs, along with the off tempo of the criminal," John Dwyer, head of research at IBM Security X-Force, told Cybersecurity Dive.

As the complexity of data breaches increase, the pressure to conduct a more thorough investigation to meet insurance, legal and regulatory requirements is growing, Dwyer said.

Speed is a critical factor because the window of opportunity for reducing the cost of data breaches is closing rapidly. This contributes to a direct correlation between how long a threat actor is in the network and how expensive the breach ultimately becomes, Dwyer said.

Phishing and the exploitation of stolen or compromised credentials remain the two most prevalent attack vectors, accounting for 3 in 10 breaches, the report found. cybersecuritydive.com


Cyber Attackers Target Small Businesses Too
Cybersecurity measures SMBs should implement
First and foremost, the notion that cybersecurity is solely the responsibility of the IT department must be dispelled; every individual within an organization plays a vital role in minimizing the risk of cyber incidents.

The Verizon 2023 DBIR report outlines three essential cybersecurity controls that will help SMBs with limited IT and cybersecurity expertise thwart general, non-targeted attacks:

• Security awareness and skills training - Make sure employees have the skills and knowledge to minimize general cybersecurity risks

• Data recovery - Create data recovery practices that can restore business assets to their original, trusted state in case of attack

•  Access control management - Create processes for creating, assigning, managing and revoking access credentials and privileges for user, administrator and service accounts for enterprise assets and software.

Once essential cyber hygiene is achieved with those and after a company begins moving closer to the larger end of the SMB scale and has more resources available, it's time to add other security controls:

• Incident response management - Establish and sustain an incident response program for prompt attack response

• Application software security - Identify and address vulnerabilities in internally developed, hosted, or acquired software to prevent potential harm to the company

• Penetration testing - Test the efficacy and resilience of enterprise assets and implemented controls by simulating attackers' actions  helpnetsecurity.com


Do You Have a CISO Succession Plan in Place?
A critical cybersecurity backup plan that too many companies are ignoring

Roughly 41% of companies do not have a succession plan in place for their CISOs, according to data from executive recruiting firm Heidrick & Struggles.

Companies are increasingly facing cybersecurity threats and data privacy regulations, ranging from how to handle artificial intelligence and large language models like ChatGPT to fears of hacking from espionage groups and bad actors. But the executive that many companies have in place to oversee these challenges, typically the chief information security officer, often does not have a backup.

Approximately 41% of companies do not have a succession plan for their CISO, according to a report from executive recruiting firm Heidrick & Struggles. Its data indicates that roughly three-quarters of CISOs said they were very or entirely open to changing companies in the next three years, underscoring the importance of succession planning and an increased focus on retention strategies.

"We consider not having a CISO succession plan to be a serious material risk that companies can easily mitigate," said Matt Aiello, partner and global cybersecurity practice leader at Heidrick & Struggles. The findings is highly concerning, he added, when considering how important cyber leadership is in today's business environment. cnbc.com


North Korean Cyberspies Target GitHub Developers
The North Korean APT is setting up legitimate accounts on GitHub & social media platforms to pose as developers or recruiters  to fool targets into loading npm repositories with malicious code.

DDoS attacks, growing more sophisticated, surged in Q2

Inglewood, CA: 50 to 70 Teens ransack 7-eleven near SoFi Stadium
Teens descended upon a local convenience store and stole an unknown value of merchandise last week. ABC 7 is reporting a 7-eleven in the 3300 block of Century Blvd. was left in shambles after a mob of teens descended upon it. The store is located less than a mile from SoFi Stadium and a newly opened IMAX movie theater. The Inglewood Police Department said there were about 50 to 70 juveniles in the mob and a robbery report has been taken. Inglewood is rapidly gentrifying due to the incoming multi-billion dollar SoFi Stadium and soon to be opened Intuit Dome. Inglewood Mayor James T. Butts Jr. has coined a new motto that "the only thing that's changed in Inglewood is everything", however, some things remain the same.  2urbangirls.com


Lancaster, PA: Police seek help identifying 4 retail theft suspects stealing over $1500 of items from Old Navy
Police in Lancaster County are seeking help from the public in identifying four suspects accused of conspiring to steal items from an Old Navy store in the Tanger Outlets shopping center earlier this summer. Three of the suspects stole more than $400 worth of merchandise during an incident at the store on June 10, and returned with a fourth suspect on July 1, when they stole an additional $1,100 worth of items, according to East Lampeter Township Police.  fox43.com
 

Covington, TN: Three Suspects wanted for smash-and-grab robbery at a Covington jewelry store
The Covington Police Department is investigating a smash and grab burglary that occurred early Monday morning. Officers responded to the burglary that took place at Brasfield's Jewelry on Highway 51 South around 2:20 a.m. When police arrived, the front door was smashed out along with counters broken inside and jewelry taken. Officers say moments after the burglary, Deputies of the Tipton County Sheriff's Department noticed two vehicles driving South on Highway 51 near Crosstown at high speeds. Officers then say the suspects abandoned the vehicle and ran into the woods. The suspects were described as three males wearing all black clothing. CPD then discovered the stolen jewelry and a gun in backpacks located in a white Nissan Altima.  actionnews5.com


Erie, PA: PA State Police Look to Identify Suspects in Alleged Best Buy Theft Ring
Pennsylvania State Police are attempting to identify two men who investigators believe are part of a Best Buy theft ring, according to Pennsylvania Crime Stoppers. Troopers said they were called to the Peach St. store in Summit Township on June 14. The two men in photos are accused of grabbing merchandise then leaving without paying through the back warehouse door, according to investigators. State police said the same suspects stole from another Best Buy in Ohio before this incident, and they probably are not Erie County residents. The suspects are possible involved in an organized retail theft ring targeting Best Buy locations along the east coast, investigators said.  erienewsnow.com


Hattiesburg, MS: Warrant issued for Mississippi women accused of using empty baby car seat to shoplift $3,500 in merchandise
Arrest warrants have been issued for two Mississippi women who reportedly used a baby car seat to shoplift more than $3,000 in merchandise. Felony shoplifting arrest warrants have been issued for Nyxavia PaShay Jackson, 23, of Hattiesburg, and Jaliyah Laconia Nicole Fields-Goss, 21, of Hattiesburg by the Hattiesburg police. According to police, between June 30 and July 16, 2023, both Jackson and FIelds-Goss entered a commercial business in the 6100 block of US Hwy 98 on seven different occasions with an unoccupied baby car seat, gathering and concealing numerous items before exiting all points of sale without making a purchase. The grand total of stolen merchandise from the business is $3,529.10.  magnoliastatelive.com


Oak Brook, IL: Shoplifting Escapade Turns into High-Speed Chase at Oak Brook Nordstrom Rack