CLEAR Statement Following NRF's Retraction of Retail Theft Statistic

The Coalition of Law Enforcement and Retail (CLEAR) stands behind our estimate that organized retail crime (ORC) causes $45 billion dollars in inventory losses to retailers every year. This estimate was based off loss data collected directly from retailers and federal and state law enforcement agencies involved in the difficult work of defining and dismantling massive criminal networks targeting our communities.

ORC cases are complex investigations into professional thieves, illicit wholesale networks, and online marketplaces that continue to profit from these crimes. CLEAR members from both law enforcement and retail routinely conduct detailed forensic financial examinations of these criminal organizations, inventory of recovered stolen products, and online marketplace sales data to determine actual financial damage to the retail victims.

Accelerated by The Inform Consumers Act, retailers and law enforcement officials who work these cases are consistently validating ORC related losses ranging from 40 - 60% of total retail losses each year. This estimate has been validated by several industry studies and has been widely accepted by federal law enforcement and the retail community, including the National Retail Federation.

Ultimately, equivocating over a number we acknowledge is an estimate misses the point and is counterproductive to CLEAR's mission to protect consumers and businesses from the very real harm being caused by Organized Retail Crime.

Learn more about CLEAR here


CNN Claims Retail Crime 'Has Not Meaningfully Gone Up Nationwide'
But the NRF shoots back: 'Widely understood fact that organized retail crime is a serious problem'

The US shoplifting scourge is a lot of hype with little evidence
To be clear, theft is happening, as it always has, in stores and on the streets. But the narrative that shoplifting has exploded since the start of the pandemic is unfounded. In reality, retail crime has not meaningfully gone up nationwide in the past few years, and it has even gone down in many places.

A study released last month, drawing on police data, found that shoplifting reports were 16% higher in the first half of 2023 compared with 2019. But, critically, if you exclude New York City's stats, the number of shoplifting incidents fell 7%, or about 2,550 fewer than in 2019, according to the Council on Criminal Justice, which conducted the study.

Overall, the study found, shoplifting generally followed the same patterns as other theft, excluding car theft, over the past five years. Shoplifting remained below pre-pandemic levels through 2022.

Even the National Retail Federation, the primary lobbying group for the retail industry, is acknowledging past reports have been inflated and retracting a key point in one of its widely cited reports about retail crime.

The spokesperson added that the NRF stands behind the "widely understood fact that organized retail crime is a serious problem. ... At the same time, we recognize the challenges the retail industry and law enforcement have with gathering and analyzing an accurate and agreed-upon set of data."

Major retailers like Target, Dick's and Walgreens have cited rising theft as a drag on their bottom lines in recent earnings calls.

Retail theft, which includes but isn't limited to shoplifting, is notoriously difficult to measure. The stats aren't tracked at the federal level, said Alex Piquero, a professor of criminology and sociology at the University of Miami.

"There's shoplifting. And then there's larceny. And then there's vandalism. But there's nothing that says, retail theft is X amount in terms of how many there are around the United States," Piquero said. "It's unsatisfying that we don't know the answer." cnn.com

   RELATED: NRF retraction of key retail theft claim fuels skeptics of issue's scale


Michigan AG's First-in-Nation ORC Unit Making Progress
FORCE Team Makes Arrest in Washtenaw County Organized Retail Crime Ring
LANSING - Yesterday Richard Larsh, 55, of Ann Arbor, was arraigned before the 14A-1 District Court in Washtenaw County on charges of Organized Retail Crime in connection to a theft ring responsible for tens of thousands of dollars in losses to retailers Target, TJ Maxx, and Nordstrom Rack, targeting locations in Ypsilanti and Ann Arbor.

The investigation was conducted by the Attorney General's Organized Retail Crime (ORC) Unit operating with Michigan State Police as the FORCE Team, as well as the Canton Police Department and representatives of the affected retailers. Organized retail crime entails coordinated efforts to steal product from retailers with the intent to resell in either legitimate or illegitimate marketplaces.

"By working hand in hand with Michigan retailers affected by these thefts, our FORCE Team is able to quickly identify and investigate these coordinated criminal outfits that impact both retailers and consumers," said Nessel. "I am grateful for the collaborative efforts of the FORCE Team, the Canton Police Department, and our retail partners for disrupting yet another alleged theft ring in our state."

The FORCE Team and the Organized Retail Crime Unit were established in January by the Attorney General to target criminal organizations that steal products from retailers to repackage and sell for a profit. Two assistant attorneys general serve the unit full time, working with special agents within the Department of Attorney General and Michigan State Police detectives to investigate and prosecute these crimes. In September, the Department announced a partnership with the FBI's Detroit Fraud and Financial Crimes Task Force, which has assigned a special agent to the FORCE Team to assist State efforts to combat organized retail crime. This is a first-in-the-nation unit, unique in the 50 states as being the first such unit with embedded, dedicated staff from the Department of Attorney General.

The FORCE Team is dedicated to working collaboratively with retailers and local law enforcement agencies to combat organized retail crime. Recent corporate partners on investigations have included Sam's Club/Walmart, Meijer, Target, Home Depot, TJ Maxx, Rite-Aid, Lululemon, Ulta, and Lowe's. The team's first major investigation produced charges against seven individuals earlier this year. Local law enforcement agencies or retailers with evidence of organized retail fraud are encouraged to email the 'FORCE' Team.  michigan.gov


Anti-Theft Lockups Having Unintended Consequences?
Does Locking Up Everything At The Store Actually Prevent Shoplifting?
Target isn't the only retailer shouldering the effects of shoplifting. Walmart, R.E.I, and Whole Foods have reportedly had to shutter locations due to increases in theft, which many say is in part caused by websites like Amazon and Facebook Marketplace providing an easy way for shoplifters to resell stolen goods.

Some stores increase prices on items in order to cancel out the losses they might experience due to theft. Other stores lock up items, which leads to another loss of sorts: a pleasant shopping experience and customer loyalty. Ironically, raising prices to counteract losses actually can encourage more thefts than it stops. And locking items can alienate customers, since you're made to feel like a criminal before you even load up your cart. It can also lead many consumers to shop online instead, with a survey stating that 89% of Gen Z and 77% of millennials say that loss-prevention methods used by stores would make them less likely to shop at a store.

Plus, these measures will hardly stop a thief from stealing an item once they have it in their hands. It's also unfair to expect low-paid employees to confront shoplifters without proper training (a task I personally can confirm is way above the pay grade).

Many retailers aren't training their employees properly to de-escalate situations involving shoplifters and urge employees to not confront them. As a shoplifter told the Washington Post, "Let's just say I don't feel too bad about taking $15 or $20 of stuff from Whole Foods when Jeff Bezos is the richest man on Earth." Especially with post-pandemic government aid largely insufficient to support the families who rely on these programs, and chronic hunger on the rise, shoplifting is a means to an end.

Joo Park, who manages Capitol Supermarket in Washington, D.C., where thefts started to double in the early pandemic, is even baffled by how to combat shoplifters. Park doesn't call the police when confronting shoplifters. Instead, he simply bans them from returning. "People will say, 'I was just hungry," Park says. "And then what do you do?"  delish.com


As Violent Crime Surges & Business Flee, Chicago Cuts Cops
Chicago Mayor Brandon Johnson's Public Safety Shell Game
Here's a thought: Violent crimes are surging in Chicago and sending businesses packing, so let's cut the number of cops on the street. That's some brilliant, progressive thinking, right?

Two Illinois Policy Institute reports this week highlighted Chicago's crime problems, problems 66% of voters in our Lincoln Poll said they wished Mayor Brandon Johnson would take more seriously.

So here's how Chicago's new mayor is responding: 833 fewer police on the street. He eliminated those positions from his budget.

Plus, he plans to turn 400 remaining police vacancies into civilian positions. He also is taking another 100 officers from the streets and using them to triage the serious detective shortage, meaning too few detectives and fewer patrol officers.

If carjackings and auto theft aren't enough motivation for Johnson, how about desperate residents calling for help and getting none? Over 50% of high-priority 911 calls had no officer available this year through late July, up from 19% in 2019. Arrests were made in fewer than 12% of all crimes in 2022. Arrests between 2019 and 2021 were down 50%.

City government is expected to provide a lot of services, but nothing is as important as ensuring residents don't face a criminal with a gun. They deserve hope that criminal will be caught and stopped from doing it to someone else. Nothing will send residents and businesses fleeing like an inability to control crime. illinoispolicy.org


Small Businesses Feeling the Pain of Theft
DC area experiencing increase in retail theft. For small stores, it's not just business - it's personal
Retail theft is on the rise in the D.C. area and nationwide. Shrink - a term used by retailers to identify inventory loss - accounted for $112.1 billion in losses in 2022, according to the National Retail Federation, an association that represents department stores, restaurants, grocery stores and other companies that provide goods and services.

Kevin McIntyre runs Samson Protection Services, a property protection company that serves the D.C. region. He confirmed that he has seen an uptick of retail thefts. "As the economy gets a little worse, I think people are just feeling hopeless," McIntyre said. "They figure, 'Hey, that's low-lying fruit for me. I can go in the store, steal some items, steal some food, steal some clothes,' and then they'll sell it."

Ray opened Envy Us five years ago in Alexandria, selling a variety of beauty supplies mainly focused on ethnic hair care. She said she has seen a huge uptick in thefts in the last year, compared to the year before. "Initially, we were seeing a theft at least once a month. Now, it's starting to feel like every two weeks to every week," Ray said, which she also attributed to a "troubling economy." wtop.com


A-list jeweler whose clients include Nicki Minaj, Usher robbed at gunpoint of estimated $1M in merch in NYC Diamond District
A celebrity jeweler who has worked with stars like Ice Spice, Nicki Minaj and Usher was held at gunpoint and robbed of an estimated $1 million in jewelry in Manhattan's Diamond District overnight Thursday, police and sources said.

Benny Nisanov, who operates under the name "Benny Da Jeweler," was held up at his pop-up shop on West 47th Street, between Fifth and Sixth Avenue, by two men who broke in around 1:30 a.m. carrying firearms and threatening to shoot, police sources said.

The robbers looted multiple pieces of jewelry from a display case that totaled an estimated $1 million before running out and into a black sedan, cops and police sources said.

Bling from "Benny "Jewels by Benny" have been seen on music industry bigs and rappers such as Sean "Diddy" Combs, Mary J. Blige, Pop Smoke and Lil Tjay, according to Nisanov's business website. nypost.com


Violence Impacting Holiday Shopping Plans
Canada: Are crime fears keeping shoppers from the mall?
What makes people choose malls over online and do recent violent events in Edmonton malls have an impact on shopping habits?

There have been several high-profile incidents in Edmonton malls this year including two lockdowns at West Edmonton Mall over guns and a shooting at Kingsway Mall earlier Tuesday. As well as a stabbing at Southgate earlier this year.

Wednesday afternoon, Edmonton police put out a statement saying charges are pending after mall security said they were assaulted by three men with chains and lit cigarettes after asking them not to block a doorway.

Hutcheson says that type of public safety isn't playing into shoppers' preferences of malls over online. edmonton.citynews.ca


House ORC Bill Gets More Cosponsors
H.R.895 - Combating Organized Retail Crime Act of 2023
Three new co-sponsors signed onto the legislation (2 Democrats, 1 Republican), bringing the total to 94 cosponsors (47 Democrats, 47 Republicans). It's picking up activity. Is your representative supporting it?


Which states are most and least impacted by retail crime?

'Numbers Are Overwhelming': Philly Car Thefts Up 1300% Since 2017 (21,111 vs. 1,501)

Memphis Midtown Convenience Store Shut Down due to Repeated Criminal Activity

Multiple Georgia agencies hold conference on crime prevention in Valdosta

Dollar General CEO Mounting Comeback Amid Workplace Safety Violations
Facing fines, cluttered aisles and late-night mockery, Dollar General's returning CEO tries to drive a turnaround

He said the retailer will put more workers in the front of stores, slow down store openings and step up efforts to keep merchandise in stock.

Dollar General has gotten hit by steep fines for safety violations, slammed on late-night TV and even overruled by its own shareholders.

On Thursday, CEO Todd Vasos laid out on an earnings call with investors the discounter's plans to try to turn around both the company's performance and its public relations problems. He said the retailer will put more workers in the front of its stores, slow down new store openings, take underperforming items off shelves and step up efforts to keep merchandise in stock.

It marked the first earnings call since Vasos took the helm again. He was brought out of retirement in October, after his successor Jeff Owen got ousted less than a year into the job. On the call Thursday, Vasos said, "We have some hard work yet ahead of us, but we know what to do. We've done it before and we are absolutely set on doing it again, as quickly as possible."

Dollar General has racked up more than $21 million in fines from the federal Occupational Safety and Health Administration for having blocked fire exits, dangerous levels of clutter and more. This spring, shareholders voted for a resolution that called for an independent, third-party audit into worker safety, a move that the company opposed.

Its labor issues have garnered broader attention. On a recent episode of HBO's "Last Week Tonight with John Oliver," the comedian ridiculed Dollar General and its rival, Dollar Tree. He called out the companies for violations cited by OSHA, including rat infestations in warehouses and dangerously messy store aisles, and for complaints by workers on social media, such as staffing a store with a single worker.

Dollar General's company-specific challenges have been exacerbated by inflation, since shoppers have been buying fewer discretionary items and even looking for ways to save on necessities. cnbc.com
 

Corporate Cop Caught With Hands in the Cookie Jar
Ex-Apple Corporate Lawyer Avoids Prison for Insider Trading

Gene Levoff was sentenced to four years of probation Thursday and lost his career.

The former senior Apple Inc. lawyer tasked with policing insider trading at the company avoided prison time for committing the crime himself.

Levoff, 49, had faced as long as two years in prison under his plea agreement, and prosecutors had urged the judge to impose jail time to deter similar crimes. "If people who are insiders at massive companies like Apple don't get prison for insider trading, then who does?" federal prosecutor Joshua Haber said.

Levoff joined Apple in 2008 and eventually became director of corporate law. In that role, he was responsible for enforcing the company's rules against insider trading and routinely reminded other employees that they were barred from trading on confidential information.

He also co-chaired Apple's disclosure committee, which reviewed its quarterly and annual earnings before they were publicly released. He used his advance knowledge to buy shares ahead of positive results or sell them before disappointing ones. Prosecutors said Levoff made around $227,000 in profits and avoided $377,000 in losses between 2011 and 2016.

Levoff agreed to forfeit around $604,000 as part of his plea deal. bloomberg.com


Investments in 'Store Experience' Paying Off
Forget retail theft: Target has solved a bigger problem
Target has invested heavily in its in-store experience. The chain has made its stores destinations by adding its owned-and-operated brands to a selection of partner-store-within-a-store concepts. These include Starbucks, Ulta Beauty, Walt Disney and Apple.

In many ways, Target has become the new mall, a place people visit even when they don't have a specific purchase in mind. That's a strong position for the brand to be in, but what many shoppers may not know is that Target has made major infrastructure changes that go way beyond its in-store experience.

Instead of spending billions to build out its infrastructure as Walmart and Amazon did, Target took a different path. In 2017 it bought Shipt for $550 million and has slowly built out its same-day delivery service.

Target's method is cheaper, but no less successful, than the method Walmart and Amazon use, at least in the markets where the Minneapolis company has stores and fulfillment centers. In 2023, Target has been widening its network, positioning the company as a same-day-delivery rival to Walmart and Amazon this holiday season. thestreet.com


After Thanksgiving Weekend They Sure Aren't Complaining
Walmart top executives admit they can't predict 'puzzling' consumer behavior in 2024
Walmart's top executives said Wednesday consumer behavior would be tougher to predict next year as financial strain pushes customers to be more cautious about spending their dollars.

The retail bellwether saw "anomalous type of behavior" from customers which "made us sit up in our chair" about the health of the consumer and what the purchasing behavior was, Chief Financial Officer John David Rainey said at the Morgan Stanley Global Consumer & Retail Conference.

About spending in the last two weeks of October being off trend compared to prior months, Rainey said it was "puzzling," but the retailer did not intend to be "alarmist" in any way.

Data on Thanksgiving weekend showed that deep discounts on everything from beauty products and toys to electronics lured shoppers to spend bringing a relief to worried retailers. nypost.com


Dollar General plans 800 new stores and 1,500 remodels in 2024

Top retailer concerns about in-store Wi-Fi are...


Quarterly Results

Ollie's Bargain Outlet Q3 comp's up 7%, net sales up 14.8%

Dollar General Q3 comp's down 1.3%, net sales up 2.4%

JOANN Q3 comp's down 4.1%, net sales down 4.1%

Game Stop Q3 net sales down 9%

Designer Brands (DSW) Q3 comp's down 9.3%, net sales down 9.1%
 

Senior LP & AP Jobs Market

VP Security NORTAM job posted for Ceva Logistics in Houston, TX
Accountable for the development, implementation, and management of CEVA's Global Security program and policy encompassing all CEVA divisions to increase overall security; minimize security costs; and ensure organizational compliance with all governmental entities and industry security standards (TAPA, C-TPAT, ITAR, & TSA). This role is based in the US and reports directly to the Global Security Leader. You will be joining a close-knit, collaborative team that is highly respected by its internal/external clients and you will gain global exposure. indeed.com
 

Cybersecurity Incidents Surge But Headcounts Falling
Almost 50% of organizations plan to reduce cybersecurity headcounts: Survey

While organizations are realizing the need for knowledgeable teams to address unknown threats, they are also looking to reduce their security headcount and infrastructure spending.

Even as the number of security incidents continues to grow in all sectors, 47% of the respondents plan to reduce their security headcounts, a new report by Observe has revealed. Remarkably, 62% of these organizations also reported a higher number of security incidents per month.

The organizations planning to reduce cybersecurity headcount are also planning to lower infrastructure spending, according to the survey. The report by Observe, an observability company, is based on a survey of 500 full-time security decision makers and practitioners, conducted by CITE Research.

In general, there is a shortage of cybersecurity professionals as they are in high demand because of the growing number of security-related events. The recent Cybersecurity Workforce Study from ISC2, a non-profit member organization for cybersecurity professionals, noted that the cybersecurity workforce shortage has grown to a record high of just under four million.

Almost all the surveyed organizations (99%) are prioritizing security observability, according to the Observe report. "Security observability borrows concepts from observability to enable security operations teams to understand risks and incidents in a more holistic way," said Jack Coates, senior director of product management at Observe, in the press release issued by the company.

The report revealed that smaller organizations are struggling on multiple levels to incorporate security observability as part of their security systems. They lack the resources to hire the right people to use the security tools. However, this also makes them prudent about spending, thus ensuring they avoid hype-driven adoption of the products. On the other hand, large organizations have access to a wide range of tools and products, but they struggle to integrate them for optimal performance. csoonline.com


If You've Been Following All Hacks, Zero-Day Exposures & Patching Problems at Microsoft:
Microsoft Hires New CISO in Major Security Shakeup

Microsoft security boss Charlie Bell has quietly executed a major shakeup of the software giant's security hierarchy, removing the CISO and Deputy CISO and handing the reins to Igor Tsyganskiy, a recent hire who previously served as CTO and President at asset management giant Bridgewater Associates.

Tsyganskiy, who joined Redmond just four months ago, will take over the CISO responsibilities from Bret Arsenault and help guide the company through a new 'Secure Future Initiative' that promises faster cloud patches, better management of identity signing keys and a commitment to ship software with a higher default security bar.

Arsenault, who held the CISO title at Microsoft for 14 years, has been reassigned to a security advisory role. His deputy, Aanchal Gupta, was also removed and will exit Microsoft's security organization.

The changes come as Microsoft scrambles to contain the fallout from a spate of embarrassing hacks, zero-day exposures and patching problems on its flagship OS and cloud computing platforms.

Earlier this year, Chinese government-backed hackers broke into Microsoft's M365 cloud platform and stole U.S. government emails, an incident that prompted a U.S. senator to accuse Microsoft of "cybersecurity negligence."

The M365 hack, caused by a mismanagement of signing keys, is being investigated by the Department of Homeland Security's Cyber Safety Review Board (CSRB).

Microsoft has faced intense criticism for its approach to third-party vulnerability research of its cloud products and continues to struggle with faulty and incomplete patches and a surge in Windows zero-day attacks. securityweek.com


Consumer Privacy - Ethical Usage of Customer Data & Transparency
77% of Retailers Rank Generative AI as the Most Impactful Emerging Technology
The rise of large language models (LLMs) such as ChatGPT has thrust generative artificial intelligence (AI) into the driver's seat of retail technologies, prompting brands across industry subsegments to reassess their strategies. This development follows retailers' yearslong efforts to leverage AI's earlier iterations to support novel customer experience initiatives. However, the latest applications of the technology come with some significant caveats.1,265%: Increase in phishing attacks between Q4 2022 and Q3 2023.

Generative AI can foster fraud, for example, not infrequently in the form of customer impersonations or fake websites. This highlights the need for greater consumer and retailer vigilance in the age of AI. Likewise, regulators should refine responses to its application to advance the retail technology stack in tandem with consumer protections.

The "Generative AI Tracker®" examines how integrating generative AI into the retail technology stack for most businesses represents a complex set of challenges, including the competition within the industry due to the shortage of skilled developer talent.

Exploring the Ethical Implications of Generative AI in Retail

Generative AI significantly enhances customer engagement in retail by personalizing experiences. As a result, retailers now harness AI to tailor product recommendations and marketing campaigns, aligning closely with individual consumer preferences. However, this raises critical concerns about consumer privacy and the ethical use of customer data, challenging retailers to balance personalization with privacy protection.

A recent report highlights that 92% of businesses have started using the technology for personalization purposes, leading to a 7% year-over-year increase in repeat buyers. However, it also finds that only 51% of consumers trust brands with their data. This disconnect underscores the need for transparency in how retailers, among others, use AI to personalize experiences for their customers. pymnts.com


AI Rules Are Coming
Coming EU Rules on AI May Shape Companies' Use of Automated Systems

Financial software maker Intuit says it designs AI products that can meet European privacy requirements

BRUSSELS-The European Union passed a strict privacy law in 2018 that influenced the way companies handled personal data. Coming rules on AI might have a similar effect in shaping corporate use of AI systems, said the head of privacy at tax software maker Intuit.

European lawmakers said they expect to reach an agreement on new AI legislation on Wednesday that will set limits on the use of automated systems depending on the level of risks they pose and create requirements for companies to disclose to users when they interact with AI. The rules will still need to be formally approved by the European Parliament and won't take effect immediately.

Until the AI regulation is implemented, the GDPR is a "powerful tool to make sure those systems are developed in a respectful way," said Alexis Léautier, an AI expert at the French Data Protection Authority, speaking at the same conference. The GDPR requires companies to inform people about how their personal data is collected and used, and imposes stiff penalties on companies that violate the rules.

Regulators in Europe and the U.S. have signaled that they are increasing scrutiny on how companies use AI. wsj.com


Using AI and automation to manage human cyber risk
Despite advanced security protocols, many cybersecurity incidents are caused by employee actions.

Proxy Trojan Targets macOS Users for Traffic Redirection

Short-term AWS access tokens allow attackers to linger for a longer while