To register for the webinar, please click Retail Theft Webinar Registration

Background

This Annual Retail Theft webinar will discuss how sophisticated organized theft groups (OTGs) profit from illegally obtaining goods that are later sold for economic gain. According to the National Retail Federation, retail theft losses increased to $112.1 billion in 2022 from $93.9 billion in 2021, causing retailers nationwide to reassess commercial operations or, in some cases, close for good.

Unlike shoplifting, where an individual steals food due to hunger or related incidents of simple theft, OTGs illegally profit from systematically targeting retail establishments utilizing organized violence for profit and to fund other criminal activities that greatly impact the overall economic security of the United States.

Speakers

• Francey Youngberg - Assistant Dir., Office of Partnership & Engagement, HSI, DHS
• Gretchen Burrier - Acting Assistant Dir., Office of Private Sector, FBI
• Stacy Irving - Senior Advisor, Delaware Valley Intelligence Center / Philadelphia PD
• Lisa LaBruno - Senior Executive VP of Retail Operations, RILA
• Christopher Wallace - Special Agent, Financial Crimes Unit, (HSI
• Ben Dugan - Executive Director of ORC & Corporate Investigations, CVS Health Corporation
• Raul Aguilar - Deputy Assistant Dir., Financial and Fraud Division, HSI
• Ashley Pritters - Global Head of Retail Security, Apple, Incorporated
• Harley "Ray" Shuler - Deputy Assistant Dir., Cyber Crime Center, HSI

Click here to register and learn more


Target CEO on RILA, NDAA Store Walks Impact & Inform Act
Target CEO has positive outlook on retail theft
Target CEO Brian Cornell believes that the company has gotten a solid grip on tackling retail theft in its over 1,900 stores across the nation. In a new interview with CNBC, Cornell stated that elevating the conversation surrounding the issue has resulted in "real progress."

"We're really pleased with how some of the local DAs (district attorneys) are responding," he said. "And our teams and other retail teams have actually been walking stores with local DAs to make sure they better understand the challenges we're facing."

On Sept. 26, Target announced that it was closing nine of its stores across four different states due to shoplifting.  In Cornell's interview with CNBC, he said that the company had no other choice but to close those stores, citing that it was a tough decision as the company's overall goal is to open more stores across the nation.

"They were stores where we made big investments in additional asset protection, working with third-party security, we have used other devices to try to control theft," he said. "But we closed those stores because we deemed it wasn't safe for our teams to continue to operate in those environments. And it's really hard to make a decision to close a store."

He also said that the company doesn't have any plans to close more stores this year. Target also revealed in its announcement in September that it promised to invest in technology and coordinate with lawmakers and industry partners to make progress in tackling shoplifting.

In the interview, Cornell applauded the recent passage of the Inform Consumers Act. The legislation makes online transactions more transparent and helps to stop criminals from acquiring stolen or fake goods and selling them through marketplaces. He said that it will make it "much more difficult" for criminals to "monetize the goods that they're stealing."

He also said that informing lawmakers that the impact of retail theft isn't just financial has also contributed to the progress he has seen in curbing the issue.  dcourier.com


Despite Theft Surge, LP is 'Most Underfunded Department of Any Company'
America's shoplifting problem, explained by retail workers and thieves

'Retailers would rather complain about shoplifting than invest in fighting it.'

I interviewed more than a dozen workers in retail and loss prevention - and two retail thieves - about what the country's supposed shoplifting epidemic looks and feels like on the ground. In conversation after conversation, one thing became clear: While many corporations are frustrated by retail theft, they're not doing enough to try to solve it.

As David Rey, the author of Larceny on 34th Street: An In-Depth Look at Professional Shoplifting in One of the World's Largest Stores - A Memoir, explained to Vox in an interview, "Most retailers really don't spend [money] when it comes to asset protection, when it comes to the resources needed to protect themselves from shoplifting ... because there's no return on the investment."

Slowing down stealing isn't free

Mark, a loss prevention specialist who has worked for companies such as Walmart, Lowe's, and Home Depot, says sometimes the issue is firms aren't even sure what exactly they want to focus on. "Are you guys focused on theft? Or are you guys focused on shrink? Because there's a big difference between the two," he says. "One is more glamorous and more showy, while the other, focusing on shrink, you're attacking your business model and your operational spend."

It's not even clear exactly how much money is being spent to fight theft right now, explains Jeff Prusan, a security and loss prevention consultant to the retail industry. Retailers don't generally disclose the data, payroll increases vary by retailer and job purpose (employee versus loss prevention specialist versus private security guard), and the amortization of long-term security solutions, such as cameras and alarms, can be complicated to factor in.

There's no strong consensus about what would really work, investment-wise. And loss prevention doesn't bring in revenue, it's just an expense. "Corporate offices want to see profit. Marketing brings profits, the buyers bring in profits. Loss prevention, in and of itself, does not bring any profits. We just try to deter loss," says one loss prevention agent who works at a corporate office for a national retailer. "Loss prevention, typically, is the most underfunded department of any company."

The financial incentives around retail theft make it a toughie: vox.com


Store Closures: Crime, Bad Management or Both?
The alleged crime epidemic in places like San Francisco causing stores to flee may actually just be bad management, investment bank suggests
Major chains including Walmart, Walgreens, and Target have blamed rising crime for their decisions to close retail locations, with Target most recently shuttering nine stores across five cities.

But retailers' claims are likely exaggerated, analysts at investment bank William Blair wrote in a recent research note. Yes, crime has risen relative to pre-pandemic levels - but that's not the only thing happening, they wrote.

More broadly, in the post-pandemic economy, retailers are facing price pressures from all sides: Inflation-squeezed consumers are being pickier, while foot traffic in many downtowns is well below its pre-pandemic levels, making retail in these formerly busy areas unsustainable.

Target is one such example, William Blair wrote. The Minneapolis-based chain has been vocal in its complaints about theft, most recently with plans to close nine stores in New York, Portland, Seattle, and the San Francisco Bay area.

Actual crime statistics point to another culprit, however. Progressive newsletter Popular Information crunched the numbers last month and found that reported crime rates in the stores that closed were actually lower than at other nearby Targets which remain open.

William Blair suggested another possibility: Target could simply be closing unprofitable locations and conveniently blaming crime rather than bad business decisions.

"Target could be using shrink to mask other issues, including poor inventory management, which came to a head in 2022 following supply chain disruption, and is now exiting underperforming stores to boost overall margins," William Blair wrote.

To be sure, William Blair doesn't completely discount the effect of shoplifting. Crime will continue to be one of several factors dragging down retail margins, the bank predicts, saying, "We see limited, if any, near-term fixes to the larger problem of organized retail theft," given that shoplifting was and remains relatively low-risk and the popularity of online resale platforms like Amazon, eBay and Facebook Marketplace make it easy and profitable to offload stolen goods.  fortune.com


Canada Seeing the Same Retail Crime & Violence as the U.S.

Canadian Retailers Demand Action On Theft & Violence 'Epidemic'
B.C. coalition calls for government action on violent retail crime

Clint Mahlman, a founding member of the coalition, said the issue is at a crucial juncture

A group of more than 30 British Columbia retailers, trade associations and other groups is now calling for immediate government action on theft, vandalism and violent crime its members say have reached "epidemic proportions'' across the province.

The coalition says it wants all levels of government to work together to address what it calls a crime "crisis'' in retail settings. It estimates the added cost of security is effectively costing B.C. families $500 each per year.

Members of the coalition include the Greater Vancouver and Surrey boards of trade, the Retail Council of Canada and Metro Vancouver Crime Stoppers and retailers such as Lululemon, Aritzia, Rexall and Save-On-Foods, and London Drugs.

London Drugs president Clint Mahlman said his company lost $10 million to stolen merchandise last year. He says the company is now outfitting some store workers with stab vests in order to protect them from violent shoplifters.

''The streets and communities are becoming more unsafe,'' Mahlman said. ''We are very concerned that we are past the tipping point, and that it will take decades to correct if not dealt with now.''

The coalition said there was a "critical'' need for immediate action to deal with threats to staff safety, rising security costs and community impact.

They said a coordinated government response for repeat offenders was needed. Mahlman said federal and provincial governments can't succeed by taking a piecemeal approach and addressing ''singular aspects'' of the problem, such as drug decriminalization, policing resources or mental-health reform.

The coalition also wants the B.C. and federal governments to ''establish a set of measurable results'' for the public to see if any government action works to bring down crime. cbc.ca

   Related Coverage of Canada's Retail Crime Surge

   Suspect posters and panic buttons: How B.C. retailers are trying to combat crime

   Jewelry store break-in the 5th in less than year for Nanaimo businessman


Even Thieves Have to Watch Out For the Competitors
In that world someone might get assassinated

Russian Reshipping Service 'SWAT USA Drop' Exposed by the Competition
One of the largest cybercrime services for laundering stolen merchandise was hacked recently, exposing its internal operations, finances and organizational structure. Here's a closer look at the Russia-based SWAT USA Drop Service, which currently employs more than 1,200 people across the United States who are knowingly or unwittingly involved in reshipping expensive consumer goods purchased with stolen credit cards.

Among the most common ways that thieves extract cash from stolen credit card accounts is through purchasing pricey consumer goods online and reselling them on the black market and then relying on willing or unwitting residents in the United States and Europe to receive stolen goods and reship them to crooks living in the embargoed areas.

Services like SWAT are known as "Drops for stuff" on cybercrime forums. The "drops" are people who have responded to work-at-home package reshipping jobs advertised on craigslist.com and job search sites. Most reshipping scams promise employees a monthly salary and even cash bonuses. In reality, the crooks in charge almost always stop communicating with drops just before the first payday, usually about a month after the drop ships their first package.

The packages arrive with prepaid shipping labels that are paid for with stolen credit card numbers, or with hijacked online accounts at FedEx and the US Postal Service. Drops are responsible for inspecting and verifying the contents of shipments, attaching the correct shipping label to each package, and sending them off via the appropriate shipping company.

SWAT takes a percentage cut (up to 50 percent) where "stuffers" - thieves armed with stolen credit card numbers - pay a portion of each product's retail value to SWAT as the reshipping fee. The stuffers use stolen cards to purchase high-value products from merchants and have the merchants ship the items to the drops' address. Once the drops receive and successfully reship the stolen packages, the stuffers then sell the products on the local black market.

The SWAT drop service has been around in various names and under different ownership for almost a decade. But in early October 2023, SWAT's current co-owner - a Russian-speaking individual who uses the handle "Fearlless" - took to his favorite cybercrime forum to lodge a formal complaint against the owner of a competing reshipping service, alleging his rival had hacked SWAT and was trying to poach his stuffers and reshippers by emailing them directly. krebsonsecurity.com


Cities Seek to Repair Images Amid Crime Fears
To combat fears of downtown, a city puts Safety Ambassadors on the streets
Like other cities across the country, Indy has been striving to repair its image since the shutdown era. The results are mixed. Out-of-towners are booking hotels for football games and conventions at near-peak levels, but officials say suburbanites - a critical set of spenders - are still reluctant to flock downtown for work or dinner.

Their hesitance reflects a wider apprehension: When researchers at the Brookings Institution interviewed more than 100 residents of New York, Chicago, Seattle and Philadelphia last year, they expected to hear that a desire to work from home was depressing travel to urban cores. Instead, they wrote, fear of crime and disorder posed the bigger barrier.

People got spooked when homicides shot up across the country during the pandemic, dominating newscasts. And while killings dropped in 2022, according to the latest FBI figures, Republican presidential front-runner Donald Trump continues to characterize liberal cities as "going to hell," and right-leaning talk shows keep echoing his view.

The rhetoric fuels a climate of nervousness: Perceptions that our communities are getting more dangerous hit a five-decade high last year, a Gallup poll found, though violent attacks were generally far more common in the '90s.

In cities about the same size as Indianapolis, the average rate of violent crime has remained more or less level over the last five years, as determined by a Washington Post analysis of data from 70 municipalities. But property offenses such as vandalism, burglary and auto theft surged by 17 percent this summer, compared to the same period in 2020. washingtonpost.com


Help's on the way for some understaffed PDs
DOJ awards $334M in COPS grants to boost hiring, community policing
WASHINGTON - The United States Department of Justice has announced $334 million awarded in federal grants to help law enforcement agencies hire nearly 2,000 new officers.

A Nov. 2 news release said the money will come in the form of COPS (Office of Community Oriented Policing Services) grants. In addition to hiring new officers, the grants will go toward supporting school safety and community policing.

The release also announced the five cities to be added to the National Public Safety Partnership in 2024: Knoxville, Tennessee; Minneapolis; Raleigh, North Carolina; San Antonio, Texas and Vallejo, California. police1.com

Police Dept. Stat Updates As of 29-Oct-23

Los Angeles: Larceny Arrests YTD as of 10/28/23 Up 113.4%, Robbery Up 7.6%
Chicago: Theft YTD Up 5% - 2 Yr. % Chg Up 68% - 3 Yr. % Chg Up 94%
Chicago: Robbery YTD Up 25% - 2 Yr. % Chg Up 46% - 3 Yr. % Chg Up 39%


21 Shoplifting Statistics for Small Businesses in 2023

Self-Checkout Debate Continues
Will Self-Checkout Ever Win Over Its Critics?
Walmart recently pulled self-checkout lanes from at least three stores in Albuquerque, New Mexico, and ShopRites in Delaware began adding back cashiered lanes to stores, a sign that some retailers may be rethinking self-checkout technology.

Nonetheless, self-checkout registers have now become the dominant checkout format in grocery, with its share of transactions rising to 55% in 2022 and the usage of self-checkout by grocery shoppers vaulting by 53% over the last five years. The rapid expansion was attributed to grocers looking to mitigate rising labor costs and shortages as well as seeking to reduce shopper wait times.

Recent consumer surveys from Raydiant and Zebra Technologies show in-store shoppers are increasingly preferring self-checkout options largely to avoid waiting in lines.

Ultimately, self-checkouts appear to be a work in progress. Target is testing self-checkout lanes of 10 items or fewer "in order to reduce wait times and better understand guest preferences." At some Costco and Walmart locations, hybrid self-checkouts let store associates assist in scanning items. Kroger is introducing artificial intelligence technology that alerts store personnel if an item isn't scanned. retailwire.com


A Chink Pops Up in Amazon's Armor
Amazon Is Shutting Down Its Clothing Stores

The two Style stores will become the latest Amazon bricks-and-mortar locations to close

The company said Thursday that it is shutting down the two "Amazon Style" locations that are located in Glendale, Calif., and Columbus, Ohio. The move follows closings of other Amazon outlets including bookstores and specialty retail stores. The company has concentrated its physical store ambitions on its grocery outlets, including Amazon Fresh stores and Whole Foods Market. wsj.com

Editor's Note: I guess a lot of retailers can breathe a sigh of relief. At least for the time being.


Uber, Lyft agree to $328M in back pay to drivers following wage theft investigation
Rideshare giants Uber and Lyft have agreed to return millions in back pay to their New York drivers following an investigation by state Attorney General Letitia James. "For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," James said in a statement announcing the settlement. nydailynews.com


2023 Holiday to Reach Record Spending Levels
The National Retail Federation today forecast that holiday spending is expected to reach record levels during November and December and will grow between 3% and 4% over 2022 to between $957.3 billion and $966.6 billion.

CVS and Walgreens say pharmacist work action had minimal impact

Aldi Is the Fastest-Growing Grocer in the U.S. With 100 Stores a Year

Memphis, TN: Thief burglarizes City G.E.A.R. store with sledgehammer; $20,000 of merchandise stolen
According to the Memphis Police Department (MPD), a thief robbed a City G.E.A.R. store on South Third Street out of $20,000 worth of merchandise using a sledgehammer Thursday morning. The thief allegedly smashed through a brick wall to get in at around 3 a.m. The brick wall at the rear of the building is now patched with plywood and pieces of broken bricks are piled nearby. FOX13 has reported on countless smash-and-grab robberies before, but not like this. Usually, people break into a business by smashing out the glass or driving a car into a storefront. A sneaker expert said the stolen merchandise is likely to get even more valuable soon.  fox13memphis.com


Ontario County, NY: Shopper accused of stealing over $8,000 worth of merchandise from Ulta
The Ontario County Sheriff's Office reports the arrest of a Rochester resident on felony charges after an investigation into a theft that happened at Ulta Beauty in Victor on June 15. According to a news release, Jahmere Davis, 21, passed all points of sale with over $8,000 worth of merchandise, then fled the store before authorities arrived. A warrant was issued for his arrest and eventually, last week, Irondequoit PD located him and took him into custody on unrelated charges. He was turned over to authorities in Ontario County and will appear in Victor Town Court at a later date.  fingerlakes1.com


Davenport, IA: Scott County targets repeat shoplifters with enhanced charge
Billy Eugene Paul entered a plea of not guilty Thursday morning to charges stemming from three alleged thefts from the Walmart on Elmore Street in Davenport. Shoplifting is a common crime in Davenport and across the Quad-Cities. Paul faces a charge of second-degree theft, a Class D felony that can carry a sentence of up to five years in prison. That is not an uncommon charge for the all-too-common crime of stealing from retail stores, and the typical first- or second-time offender draws a sentence of probation. But Paul could be looking at hard prison time. The soon-to-be 46-year-old also faces the charge of "ongoing criminal conduct," a Class B felony. That's a charge that carries a sentence of up to 25 years in prison. There are at least two other cases in Scott County where individuals face the stiffer charge of ongoing criminal conduct: Kaleya Young is accused of stealing from JC Penney on 16 different occasions, and Lamont Stephany, who is accused leaving multiple stores with trash bags filled with merchandise.  qctimes.com 


DOJ: Indiana Man Gets 25-Months Imprisonment on Federal Identity Theft, Fraud Charges
EAST ST. LOUIS, Ill. - Jamaine D. Brooks, 46, pled guilty to possession of five or more identification documents, possession of 15 or more unauthorized access devices and aggravated identity theft in a U.S. District courtroom in July. Following imprisonment, he will serve three years of supervised release.

Brooks stole identities to commit financial fraud and buy merchandise using his victims’ means from various Walmart locations and other retail stores.

He was arrested by police after he traveled to southern Illinois with 23 Indiana identification cards and driver’s licenses, 39 stolen credit and debit cards, nine Social Security cards, four checkbooks in one individual’s name and equipment to alter checks in March 2021.

At the time of his arrest, Brooks had already used his victim’s identity and financial means to purchase more than $5,000 in retail goods, most recently at a Walmart in Collinsville, Illinois. In addition to the federal prison sentence, Brooks was ordered to pay $5,154.75 in restitution back to this specific victim.

Chelci Johnson, 33, also of Fort Wayne, Indiana, was a named co-defendant also charged in the indictment. justice.gov


Cohasset, MA: Two women charged in alleged retail theft of nearly $4k in merchandise from CVS
Two women, from out of state, are facing charges in connection to an alleged organized retail theft of nearly $4,000 in merchandise from a Cohasset pharmacy chain, according to police. Cohasset Police detectives allege in a complaint filed with the Quincy District Court that 23-year-old Niculina Lazar and 30-year-old Aurora Micleslu stole $3,999.65 in retail merchandise from CVS in Cohasset on October 17, around 12:30 p.m.
Police charge Niculina Lazar, of Anaheim, CA and Aurora Micleslu of Baltimore, MD, with one count of organized retail theft, a felony, in violation of Massachusetts General Laws.  boston25news.com


San Francisco, CA: Two plead guilty for rash of retail thefts committed at stores in two California counties, D.A. says
Two individuals have been sentenced to three years in State Prison for their involvement in a series of snatch-and-grab thefts and robberies in San Francisco, the city's District Attorney announced. Delandro Belvine-Brown, 22, from Antioch, and Sean Raquel Jevonce Simon Jr., 24, from Richmond, both pleaded guilty to robbery charges in San Francisco Superior Court. Specifically, Belvine-Brown and Simon Jr. were connected to six separate incidents in Brentwood that unfolded between November 2021 and June 2022. original.newsbreak.com


Exton, PA: West Whiteland Township Police Investigate $3,800 Theft at Kohl's Store

Lexington, NC: Police looking for a man accused of making $1700 in fraudulent purchases

Rutherford County, TN: Stolen Credit Card Case with Ties to Murfreesboro and Smyrna