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The U.S. Crime Surge
The Retail Impact

Throughout the U.S. the Push is on to Crackdown on the ORC Epidemic
And it seems like most politicians are not only behind it but a number appear to be leading the charge

Albuquerque Journal, N.M.: State must keep the heat on shoplifters

Pass ORC House Bill 29

More often than not, shoplifting is a fairly low-disturbance event with the perpetrators simply walking away with an armload or shopping cart full of stolen goods. That is egregious enough. But two recent violent incidents at Walmart and Cabela's caused pure mayhem, and created a significant threat to public safety with gunfire and distraction arson.

The good news is these brash incidents resulted in arrests. And the Organized Retail Crime Task Force, spearheaded by the Attorney General's Office, has taken on the Sisyphean task of shutting down shoplifting rings and teamed up with law enforcement agencies and retail stores to "aggressively target, arrest and prosecute repeat offenders." We say about time, thank you and please don't let up.

Candidates for public office are making much of Albuquerque's crime problem as we head toward the June primary. They all say something needs to change. No argument there. Besides the most obvious fix — putting more officers on the street — lawmakers need to revive and pass legislation like ORC House Bill 29 that specifically calls out these serial thieves and does not allow them to steal $499.99 over and over again and walk away with misdemeanor charges.

This editorial first appeared in the Albuquerque Journal. It was written by members of the editorial board and is unsigned as it represents the opinion of the newspaper rather than the writers. abqjournal.com

NM Attorney General & Albuquerque's Mayor View ORC As Major Safety Issue

Albuquerque's ORC Task Force Has Been Busy & Successful
The task force was launched last summer in an effort to stop retail crime around the state.

March 28, 2022: Retail crime operation nets 16 arrests
A week-long law enforcement operation targeting shoplifters and thieves at big-box stores netted 16 arrests and uncovered thousands of dollars in stolen items, authorities reported on March 28th, 2022.

From working undercover in stores like Walmart, Target, Kohl's and others, to serving existing warrants and even two suspects arriving at the stores in stolen vehicles.

“Families in New Mexico deserve safer communities and the task force will continue targeting emboldened felony offenders in our retail centers to disrupt crime at all levels,” NM AG Hector Balderas said in a statement.

“We’re seeing the results of our heightened coordination between businesses, APD and prosecutors to stop the organized retail crime that wreaks havoc on businesses and residents who are just trying to shop safely,” Albuquerque Mayor Tim Keller said in a statement. “These latest arrests make it clear – if you are committing these brazen robberies, you will be caught and prosecuted.” abqjournal.com

Feb. 8th, 2022, AG Reports on Two-Day Organized Retail Crime Operation; Nets 17 Arrests

NM Bill 331 Extends Property Crimes Task Force Until Jan. 1, 2026

Editorial: Finally, NM’s violent shoplifting rings are in legal system sights


Target Gift Cards #1 Choice for Scammers
In San Fran. They're the #1 Choice for Shoplifters

Lowe's and Target Just Issued This Major Warning to Shoppers

The two retailers are at the center of a concerning problem.

According to the Federal Trade Commission (FTC), scammers have gained quite a foothold in the U.S. over the past few years through the use of gift cards. "Both the number of reported gift card scams and total losses have increased every year since 2018," the agency warned in a Dec. 2021 report. The FTC also released data showing that in the first nine months of 2021 alone, around 40,000 people had reported $148 million stolen through gift cards. And this is hardly even the full scope of the problem, as the agency said most incidences of these types of scams actually go unreported.

On May 5, NBC-affiliate WFLA in Tampa, Florida, reported that a Bay Area man recently lost more than $7,000 because of a gift card scam. The man, who is a disabled veteran with a traumatic brain injury, said it all started when his laptop froze and a message appeared directing him to call a listed phone number for help. According to the victim, the person at the end of the call demanded he buy gift cards from both Lowe's and Target to clear up a credit card issue and was "extremely convincing" in that he could face criminal charges if he did not comply.

Target is "aware of the prevalence of gift card schemes and takes them very seriously," company spokesman Brian Harper-Tibaldo, told WFLA. According to Harper-Tibaldo, Target has signs in its stores alerting shoppers to the issue and has also been training team members to watch out for this type of scam. "This year, we've made additional efforts to help prevent gift card schemes, including communication to all of our stores, team member training and new system restrictions," he added.

This is the top retailer targeted by gift card scams

The FTC said that scammers usually demand gift cards be bought from specific retailers—and at the top of that list is Target. According to the agency, shoppers reported losing a total of $35 million from Target gift cards scams, which was more than twice as much money that was reported lost through any other brand. "In the first nine months of 2021, people who reported losing money buying gift cards mentioned Target stores more than other retailers," the FTC noted. "Reports suggest that Walmart, Best Buy, CVS, and Walgreens stores are also popular with scammers."  bestlifeonline.com

Manhattan DA Has More Problems - New Progressive Laws
Why Hundreds of New York City Prosecutors Are Leaving Their Jobs

New burdens, low pay and pandemic malaise prompted the resignations of a fifth of the legal work force in Manhattan, the Bronx and Brooklyn.

New York City’s prosecutors are leaving in droves, citing pandemic burnout, low salaries and two intersecting laws that fundamentally changed the nature of their jobs.

This year alone, 36 have left the Brooklyn district attorney’s office and 44 Manhattan’s. At least 28 have left the Bronx, and the nine Staten Island assistant district attorneys who have left this year represented about 10 percent of that office’s prosecutorial staff. The Queens office told the New York City Council that it was on track this year to more than double last year’s resignations.

In the past year, the Manhattan and Brooklyn district attorneys, who have about 500 prosecutors each, lost almost a fifth of that work force, a sharp increase from attrition averages before 2020. The Bronx is shedding lawyers at a similar pace, a total of 104 since July.

When the pandemic arrived in New York two years ago, it disrupted nearly all court proceedings. At the same time, two new state laws took effect governing discovery — the sharing of all evidence, potential evidence and other case-related material. Prosecutors say the measures, which were intended to make trials fairer to defendants, create onerous amounts of paperwork. nytimes.com

84% Decrease in Law Enforcement Deaths - 99 Year-to-Date
5 Deaths in April: 2 Vehicular Assaults - 1 Illness - 1 Gunfire - 1 Heart Attack
In April, 5 law enforcement officers died in the line of duty. The cause breakdown (April 2022 only) is: 2 vehicular assaults, 1 duty related illness, 1 gunfire, and 1 heart attack. This means that the year-to-date total for line of duty deaths is at 99, a 84% decrease from the same time last year.

The Officer Down Memorial Page extends our deepest condolences to the families, friends, and agencies who lost a loved one to a line of duty death this past month. We encourage our supporters to read the memorials of each of the officers who died in the line of duty.   odmp.org

Banning Masks in Stores to Curb Theft?
Supermarket in France tries to ban masks inside ‘to fight shoplifting’

The director of the Carrefour franchise store in southeast France said that people wearing masks during Covid had made it more difficult to identify thieves

A Carrefour supermarket in southeast France has attempted to ban customers from wearing masks completely in a bid – the shop director said – to combat shoplifting. The manager of the shop in Grenoble (Auvergne-Rhône-Alpes) put up signs at the entrance saying that masks were “forbidden” inside and that customers’ “faces must remain visible” when shopping.

Speaking to Libération, the director admitted to putting up the signs and said that the measure was “only taken for security reasons”. He said that when masks were obligatory (due to the Covid crisis), it had no longer been possible to differentiate between honest customers and shoplifters.

The manager said that he was invoking the law of October 11, 2010, which bans the covering of faces in public. However, this law does not apply to face coverings worn for health reasons, and refers more to the use of several items (such as a hat and sunglasses) to obscure the face deliberately.

Wearing a mask to protect against Covid has no longer been legally required in France since mid-March, but people who wish to continue wearing one are free to do so. connexionfrance.com

More Federal Police Funding?
'We should not defund': Democrats press Pelosi for vote on police funding

Nearly 20 House Democrats are urging House Speaker Nancy Pelosi to hold a vote on bipartisan legislation to boost funding for police as crime surges ahead of the midterms.

In an effort to address rising crime rates, 19 mostly moderate House Democrats are urging Speaker Nancy Pelosi to hold a vote soon on bipartisan legislation that would increase funding for police departments across the country.

“As national crime rates increase, including homicides, car jackings, and assaults, now is the time to support local law enforcement through passage of bipartisan, bicameral commonsense legislation,” the Democrats wrote Friday in a letter to Pelosi, D-Calif., that was first shared with NBC News.

The letter is the latest sign that Democrats, fighting to preserve their fragile majority this fall, are concerned about rising crime and the “defund the police” messaging from progressives that contributed to the party’s loss of 13 House seats in the 2020 election.

“Cutting to the bone only weakens any profession; it pushes good people out, diminishes overall quality, and fuels a race to the bottom. That’s especially true in law enforcement,” the lawmakers wrote. “To make our communities safer, build a future with less crime, and save lives, we should not defund — instead, we must invest to protect.” nbcnews.com

 

COVID Update

579M Vaccinations Given

US: 83.5M Cases - 1M Dead - 80.9M Recovered
Worldwide: 517.3M Cases - 6.2M Dead - 472.1M Recovered

Former Senior Loss Prevention Executive
Know of any fallen LP exec? Let's remember & recognize.

Private Industry Security Guard Deaths: 356  
Law Enforcement Officer Deaths: 766
*Red indicates change in total deaths

Massive COVID Wave Coming?
White House preps for cold-weather wave of 100M COVID infections
The White House is preparing for as many as 100 million Americans to get infected with COVID-19 during a wave this fall and winter if Congress does not provide new funding for vaccines and tests, a senior administration official said Friday, warning new money is needed to have enough vaccines for everyone.

A senior administration official told a small group of reporters on Friday that the estimate is the median of a range of models from outside experts that the administration consults, meaning it is also possible significantly more Americans catch the virus, especially if there is a major new variant.

That compares with the roughly 130-140 million Americans who are estimated to have been infected over the omicron wave this winter, which led to a significant spike in deaths. thehill.com

Apple workers in Shanghai riot over COVID restrictions
Factory workers at a Shanghai facility that makes Apple products rioted on Thursday, clashing with guards in hazmat suits and jumping across security barriers in an apparent mutiny against strict coronavirus restrictions, dramatic social media video shows.

The news comes more than a month into a citywide lockdown in Shanghai that has seen desperate residents confined to their apartments — some without adequate food — as police patrol the streets.

Meanwhile, many Shanghai facilities including the Apple factory have sought to keep operating during the lockdown though a “closed loop” production system. Under this system, employees are generally banned from leaving company facilities even during off hours and are forced to live and sleep in the factory or at a nearby dormitory. They are not allowed to see other people, including their own family members. One Apple facility is now not letting employees return to the dormitory's and requiring them to sleep at their stations.

A subsequent Reuters investigation revealed that workers at the factory had to survive off worm-infested food while living in rat-filled dorms without running water. Workers said they were forced to sleep on the floor in dormitories, with up to 30 women sleeping in a single room.

This is far from the first time factories making Apple products have been accused of maintaining brutal working conditions. nypost.com

Are COVID surges becoming more predictable? New Omicron variants offer a hint

 

Imposing Sanctions on Surveillance Vendor - Unprecedented Step by U.S.
Report: U.S. may impose sanctions on Hikvision

Biden administration looking at taking punitive action against company for allegedly enabling human rights abuses

According to a report published Wednesday by the Financial Times, the U.S. government is considering imposing sanctions on video surveillance giant Hikvision for its alleged role in enabling human rights abuses by the Chinese government.

The publication cited unnamed sources who say the Biden administration has already begun discussing the proposed sanctions with allies given the wide-reaching implications it could have on nations that use the company’s cameras and other surveillance products. However, the report also noted that a final decision has not yet been made nor did it specify which specific sanctions would be used.

Just last week, it was reported that government officials in the UK are now more closely scrutinizing the use of Hikvision products by agencies there. Department of Health reportedly banned Hikvision from competing for new contracts within the Department of Health over concerns that the company’s technology has been used to keep tabs on China's minority Uyghur population by government officials in Xinjiang province.

List of Punitive Actions Grows

While imposing sanctions would be an unprecedented step, Hikvision, along with several other China-based surveillance vendors, including Dahua and Hytera, have already faced a string of punitive measures taken against them in recent years, beginning with the passage of the National Defense Authorization Act (NDAA) in 2018 that included an amendment that bans federal agencies from purchasing surveillance equipment from the aforementioned vendors.

Just a month later, former President Donald Trump signed an executive order prohibiting U.S. companies and individuals from investing in Hikivsion as well as other companies previously identified as having links to the Chinese military. President Joe Biden amended this investment blacklist last June by adding nine additional companies. Hikvision was still included on the list and placed along with Huawei within a new subsection labeled, “Surveillance Technology Sector of the Economy of the PRC.”

Among the most significant actions take against these companies, however, occurred last November when President Biden signed the Secure Equipment Act into law. The legislation requires the Federal Communications Commission (FCC) to adopt a rule banning new equipment authorizations for Hikvision, Dahua and other manufacturers on its so-called “Covered List” of organizations whose equipment and services have been deemed as posing a threat to national security. The FCC was given a year from the law’s enactment in which to enact the rule, which will essentially eliminate the ability of these companies to bring new products to market in the U.S. securityinfowatch.com

Biden signs 'Secure Equipment Act'

UK increases scrutiny on government use of Hikvision cameras


The Retail Union Fight
Employees everywhere are organizing. Here’s why it’s happening now
After years of declining influence, unions are having a resurgence. Employees from companies across the country are increasingly organizing as a means of asking for more benefits, pay and safety from their employers.

Between October 2021 and March of this year, union representation petitions filed at the NLRB increased 57% from the same period a year ago, according to recent data from the U.S. National Labor Relations Board. Unfair labor practice charges increased 14% during the same period.

More than 250 Starbucks locations filed petitions, and after notching a first win late last year, 54 Starbucks company-owned stores have formally organized. Workers at an Amazon warehouse in New York City recently voted to form the first union at the second-largest U.S. private employer and join the Amazon Labor Union. Google Fiber contractors in Kansas City successfully voted to unionize their small office in March becoming, the first workers with bargaining rights under the one year-old Alphabet Workers Union.

These efforts are resonating with the broader public. A Gallup poll conducted last September showed 68% percent of Americans approve of labor unions — the highest rate since 71% in 1965.

- Experts say the biggest factor was the Covid-19 pandemic.  Continue Reading

Cisco's Investigations Team IDs Sophisticated Warranty Claim Scheme
Texas Man Gets 1 Yr 3 Months for Defrauding Tech Companies Out of Over $1.9 Million in Computer Hardware and Electronics
Vaugh Simon, 29, of Pearland, TX, was sentenced today to one year and three months in prison, and was ordered to pay a total of more than $1.9 million restitution, including more than $1.7 million to Cisco Systems Inc., for operating a sophisticated warranty claim scheme which targeted multiple tech companies.

In June 2020, the defendant pleaded guilty to 22 counts of mail fraud, eight counts of wire fraud, two counts of filing a false tax return, and one count of tax evasion. Simon’s conviction stems from a complex scheme he perpetrated with several co-schemers in order to defraud Cisco, Sony Electronics, The Neat Company, Canon USA, APC by Schneider Electric, iRobot Corporation, and Skullcandy, Inc., out of various electronics and expensive computer hardware, by submitting to these manufacturers hundreds of false warranty claims seeking the advance replacement of more than $4 million worth of products. While not every false claim was successful, more than 200 of the claims did deceive the manufacturers, and Simon successfully induced them to ship more than $1.9 million worth of merchandise to him, most of which he sold via the internet or to computer equipment resellers.

The primary victim of Simon’s fraud was Cisco. With respect to Cisco, between November 2014 and June 2017, Simon and two co-schemers submitted 284 false warranty claims using false identities for products they did not own. Of these, 209 successfully deceived Cisco into shipping Cisco hardware worth more than $1.7 million, all of which Simon and his co-schemers sold. Simon’s scheme was uncovered through the work of Cisco’s internal investigation team, which identified the suspected fraud and contacted the FBI, which then began a joint criminal investigation with the Internal Revenue Service, Criminal Investigation Division (IRS-CID). justice.gov

DOJ: Baltimore: Retail Bookkeeper Pleads Guilty - Stealing More Than $1.8 Million From Salisbury, MD. Retailer
Duane G. Larmore, age 47, of Salisbury, Maryland, pleaded guilty today to a wire fraud conspiracy and to aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection, where Larmore worked.

From mid-September 2016 through about March 2020, Larmore conspired with others to steal more than $1.8 million from a Salisbury, Maryland company, Shore Appliance Connection, owned and operated by Owner #1 and Owner #2, that sold household appliances as well as mattresses and bedding, a family owned discount appliance store. Larmore was an employee at Shore Appliance whose duties included maintaining the books and records for the company.

Specifically, Larmore and his co-conspirators stole over $1 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for the co-conspirator’s business. The charges included wire transfers from Shore Appliance’s account to a co-conspirator’s business account and from there to banks in the U.K. and Hong Kong.

To conceal how much money had been removed from Shore Appliance and to obtain cash, Larmore used the identities of the owners to enter into factoring contracts. Factoring is a means by which businesses, like Shore Appliance, can obtain cash quickly by leveraging accounts receivable. In addition, Larmore used his position of trust with Shore Appliance and signature authority over its bank accounts to draw on Shore Appliance’s lines of credit with two separate financial institutions to obtain another $200,000 in cash to conceal his use of Shore Appliance’s funds.

For all of Larmore’s conduct, actual cash losses to Shore Appliance totaled $1,850,488.94 and intended losses totaled $2,137,674.74. Larmore will be required to pay restitution in the full amount of the victims’ losses, which the parties stipulate is $1,850,488.94

Larmore faces a maximum sentence of 20 years in federal prison for a wire fraud conspiracy and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Sentencing July 29, 2022. justice.gov

Baltimore's Downtown 'Hard-Hit' Retail & Hospitality Sectors Continue to Struggle

And 'Record-High' Homicide & Other Crime Rates Aren't Helping.

“If people don’t feel safe, then it prevents us from having a vibrant downtown neighborhood,” Stokes said. “It is an extreme focus for us.”

Downtown also has struggled with a drop in retail sales as a result of closures and fewer visitors during the pandemic, and that trend continued last year. Sales fell to $961 million in 2021 from more than $1 billion in 2020. baltimoresun.com

American Dream reports nearly $60 million in losses in 2021

How should retail companies best navigate the abortion controversy?

See who's coming to RFID Journal LIVE! - May 17-19


Last week's #1 article --

Retailers Deploy Armies of Investigators to Tackle ORC
Secret surveillance, mining customer data: How retailers help bag shoplifting kingpins

National chain stores employ their own investigators who build criminal cases against shoplifting rings. But legal experts say concerns abound.

Robert Whitley smiled wide as he showed off the mountains of merchandise inside his sprawling warehouse. He may not fit the profile of a crime boss, but federal prosecutors have described Whitley, who goes by Mr. Bob, as the leader of a multimillion dollar shoplifting ring.

From 2011 to 2019, he sold more than $6 million worth of stolen goods - everything from razors to Rogaine to teeth-whitening strips - on Amazon and other online marketplaces, according to court papers. Prosecutors say he paid professional shoplifters to steal specific items from drug stores, supermarkets and big box retailers across Georgia.

The case against Whitley was built not just by federal agents but corporate investigators with CVS, Target and Publix, representing the kind of collaboration that has grown more prevalent amid what industry groups say is a historic spike in organized retail crime. nbcnews.com