The latest ORC trends in North America

By Bobby Haskins, Vice President of Retail Partnerships, Auror

We learned at our inaugural Auror Connect event in March 2022 the true extent of Organized Retail Crime (ORC) and repeat offending for one of the world’s largest retailers. According to data collected on Auror’s platform, this retailer was seeing 10% of people who are offending driving 94% of their loss.

There isn’t a retailer in the world that hasn’t felt the impact of ORC - whether it’s having to deal with the increasing inventory shrink, struggling with empty shelves, or not being able to ensure a safe work environment.

How has ORC in North America been developing and how are retailers adapting? Let’s explore these questions and some trends with a specific focus on the United States and Canada.

‍How the ORC crisis is changing ‍

The COVID-19 pandemic brought challenges for retailers like never before. Based on data from the Auror platform, 12.8% of events reported by North American users in 2022 have involved threatening behavior. This includes COVID-19 threats, erratic behavior, and being under the influence. A further 6.2% of events involved serious behavior which refers to aggression, physical abuse, or carrying weapons. The decriminalization of retail crimes is also driving an increase in ORC and had been doing so before the pandemic came along.

‍How North American retailers are taking action

Data from Auror’s platform shows users based in the US and Canada prevented more than $50.8 million in theft in 2021 and investigated almost $15 million in ORC theft. There were more than 45,000 people identified as repeat people. These numbers have been playing out in real-life right in front of our eyes thanks to the relentless work retailers are doing to report, solve, and prevent crime through the platform.

‍Building the future of ORC prevention

‍Retail crime doesn’t rest and neither do we! Building a community is vital to succeeding against ORC. That’s why we started our Auror for ORCAs platform and a movement involving ORCAs across the country. The movement is now over a year old, with 20+ ORCAs working together in the platform to reduce the impact of crime in our communities.

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NRF Protect 2022 Update

NRF PROTECT Fraud Session Spotlight and Q&A
How retailers are staying ahead of the increase in fraud

Information, collaboration and technology are key

Next week at NRF PROTECT, a panel of retailers and experts will share their perspective on what’s going on, why cases are rising and what can be done to stem the rising tide. The session, curated by NRF partner Card Not Present, is titled “Why has fraud gone haywire since the holidays – and what can we do about it?”

In advance of the conference, DJ Murphy, editor-in-chief of Security Portfolio, shared his expertise on the topic.

Retailers are reporting that incidents of fraud are rampant. Why is this year different from past years? What’s at the root of the upsurge?

There are several reasons fraud has skyrocketed to new heights and stayed there. First, as digital transactions go, so goes fraud. Fraudsters can simply get away with more when there are more legitimate transactions in which to hide. More volume means fraud prevention teams, already strapped for resources, have to evaluate more transactions with, usually, the same number of team members. And resources are always hard to come by.

Are there types of fraud that are increasing at a greater rate? Is there any rhyme or reason why one or two types of fraud are proving to be more viral?

Traditional clean fraud (i.e., a fraudster enters stolen credit card into the checkout page of a retailer’s site) and all the variations on it will always be with us, but there are several other fraud attacks that have taken center stage recently. Account takeover — when a fraudster secures login credentials and takes over someone else’s online account — is perhaps the biggest current problem for an entire range of digital businesses. nrf.com

Click here to learn more & register for NRF PROTECT 2022

 

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The U.S. Crime Surge
The Retail Impact

40% of Law Enforcement Agencies Reported No Crime Data in 2021
What Can FBI Data Say About Crime in 2021? It’s Too Unreliable to Tell

The transition to a new data system creates huge gaps in national crime stats sure to be exploited by politicians in this election year.

Nearly 40% of law enforcement agencies around the country did not submit any data in 2021 to a newly revised FBI crime statistics collection program, leaving a massive gap in information sure to be exploited by politicians in midterm election campaigns already dominated by public fear over a rise in violent crime.

The gap includes the nation’s two largest cities by population, New York City and Los Angeles, as well as most agencies in five of the six most populous states: California, New York, Illinois, Pennsylvania, and Florida.

In 2021, the FBI retired its nearly century-old national crime data collection program, the Summary Reporting System used by the Uniform Crime Reporting (UCR) program. The agency switched to a new system, the National Incident-Based Reporting System (NIBRS), which gathers more specific information on each incident. Even though the FBI announced the transition years ago and the federal government spent hundreds of millions of dollars to help local police make the switch, about 7,000 of the nation’s 18,000 law enforcement agencies did not successfully send crime data to the voluntary program last year.

By contrast, in 2020, around 2,700 agencies did not report crime data to the FBI. (In some cases, an agency will submit data, but the FBI rejects it.)

The data gap will make it harder to analyze crime trends and fact-check claims politicians make about crime, and we’ll likely have to live with greater uncertainty for at least a couple of years, criminologists say. Jacob Kaplan, criminologist at Princeton University, said because many big cities and populous states stopped reporting, it’s especially difficult to draw conclusions from the 2021 data.

“I don't think you could get national numbers, at least not useful national numbers, from this data,” Kaplan said. “It's going to be really hard for policymakers to look at what crime looks like in their own community and compare it to similar communities.”

Last week, the FBI released crime statistics for the first quarter of 2022, compiled from 56% of law enforcement agencies across the country. Data from more than 8,000 agencies was missing, signaling that the national crime statistics may continue to miss a significant number of agencies in the near future. themarshallproject.org

2.1M Unreported Crimes Across the U.S.
Philly police underreported crime data to FBI for city's bloodiest year on record

The Philadelphia Police Department underreported crime statistics to the FBI for 2021, a historically bloody year for the city, new data show.

Roughly 2.1 million crimes across the country will go unreported to the FBI, according to data examined by The Marshall Project and Axios. Philadelphia is among the roughly 60% of U.S. law enforcement agencies that failed to report a full year of data or no data at all to the federal agency.

All in, Philadelphia reported only nine months worth of data to the FBI’s National Incident-Based Reporting System. Local police officials cite the city implementing a new crime reporting system for the gap in data.

The Philadelphia Police Department received nearly $4 million in 2016 to upgrade its reporting system, which was officially launched on April 1, 2021, Axios reported. The FBI also switched to a new recording method last year, the National Incident-Based Reporting System, amid a push to better record crime figures and individual incidents.

Philadelphia Police Sgt. Eric Gripp told the outlet that there was a "significant project delay" to upgrade the city’s previous system, which was compounded by the pandemic.

Philadelphia set an all-time record for homicides in 2021, recording 562 deaths. The crime has spilled into this year, with the city hitting 200 homicides just after Memorial Day weekend.

The skyrocketing crime in the city sparked an impeachment effort of the city's progressive district attorney, Larry Krasner, which was launched this week by three Republican state representatives.  foxnews.com

Another City Overwhelmed by Retail Violence
Oakland Little Saigon business owners fed up over daily crime, demand change
Robberies at gunpoint, arsons, break-ins and assaults. These are just some of the struggles business owners in Oakland's Little Saigon face regularly. They're so fed up, they've banded together to make their voices stronger together and as a way to survive.

Lele Quach owns a family-run Cam Huong restaurant in the 700 block of International Boulevard, right in the heart of Little Saigon. Through tears, she explains the stresses and terror of doing business these days.

"Crime is increasing exponentially on the daily. Every day, it's increasing, it's getting more violent more brutal," she continues. In every direction you turn in this neighborhood with more than 100 small, mostly refugee-owned shops, you'll see boarded up storefronts and earlier closing times.

Lynn Truong says she used to close her grocery store Sun Hop Fat at 8 p.m., but now she closes at 4 or sometimes 5:30. Oanh Trinh owns Lucky 7 Cigarettes, which has been robbed seven times. Graffiti-covered plywood still covers the front windows. But that wasn't the worst of her woes. Thinh Le even sleeps on the floor of his Kim Viet Jewelry store every night after being broken into 10 times in one year.

Nearly two dozen business owners have come together on a Monday morning to tell their stories and share surveillance videos of arsons, sideshows and attacks. It's an effort so the city will start paying attention. abc7news.com

Business Robberies Surge in Dallas
Murder rate rises in Dallas, amplifying feelings of helplessness and calls for change

Police have recorded 110 slayings through Monday, up about 18% compared with this point in 2021.

Robberies, which decreased significantly last year, are now up, driven by a rise in those committed at businesses. Year to date, there have been 231 business robberies, up nearly 17% from last year's 199.

Overall, violence in Dallas is down this year about 2.4% — or 126 fewer victims — from last year’s numbers. That’s due in large part to fewer sex offenses, which are typically underreported crimes.

Aggravated assaults have remained steady. Police reported 3,484 aggravated assaults so far this year, 11 fewer than in 2021. dallasnews.com

What Happens to Shoplifting Calls? Civilian Unit? Online Only?
How does this new policy impact the stores?

Dallas police propose new strategies to improve response times on emergency calls

The department wants to boost the number of police reports they take online and over the phone.

Police response times have spiked in recent years, which the department has attributed to more calls for service and a shortage of officers. From 2011 to 2021, Dallas police 911 administrator Robert Uribe said there’s been a 53% increase in the number of highest-priority calls — priority ones — even as the number of sworn officers has fallen 11%.

He said police could require residents come to substations to file reports or report online or over the phone for low-priority calls that aren’t in progress, such as minor accidents, thefts, criminal mischief and burglaries of coin-operated machines or vehicles. Patrol officers have spent an average of 134,091 hours on those calls each fiscal year from 2018 to 2021, he said.

Uribe also proposed creating a civilian unit to respond to those calls and other low priorities, such as reports of abandoned properties, loud music, panhandling, sleeping in public, burglaries of residences and businesses that aren’t in progress.

Police plan to move forward with the strategies. The chief said the department will conduct outreach to educate the public and will be training staff on the changes over the next few months. dallasnews.com

New Gun Measures Gather Bipartisan Momentum
McConnell boost adds to momentum of Senate gun legislation
A bipartisan framework to keep guns out of the hands of dangerous individuals and boost funding for mental health treatment has strong momentum after Senate Minority Leader Mitch McConnell (R-Ky.) endorsed it Tuesday. McConnell says he is planning to vote for legislation based on the framework, which would make him the 11th Republican in the Senate to back it.

Ten other Senate Republicans, led by Sen. John Cornyn (Texas), the chief Republican negotiator, have already signed onto the framework, which would provide billions of dollars in mental health grants to states, restrict convicted domestic abusers and individuals subject to domestic violence restraining orders from buying guns and strengthen background checks for gun buyers between the ages of 18 and 21.

McConnell said a poll of gun owners presented by Cornyn at the Republican lunch on Tuesday showed “support for the provisions of the framework is off the charts” and “overwhelming.” thehill.com

Buffalo Supermarket Shooter Payton Gendron Charged With Federal Hate Crimes
Teen also faces firearm charge that carries possible death penalty

Virginia law enforcement among best in nation for reporting crime stats

Utah's crime data reporting to the FBI is exceptionally complete

 

COVID Update

591.4M Vaccinations Given

US: 87.5M Cases - 1M Dead - 83.3M Recovered
Worldwide: 541.8M Cases - 6.3M Dead - 517.1M Recovered

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

Private Industry Security Guard Deaths: 359  
Law Enforcement Officer Deaths: 782
*Red indicates change in total deaths

Security Officers See Surge in Violence During Pandemic
Oakland, SF Security Officers Demand Workplace Protection

The security officers have experienced an increase in violent situations during the coronavirus pandemic.

On Tuesday, more than 100 security officers from downtown Oakland and San Francisco rallied on Broadway in Oakland, demanding increased protection from their employers.

The guards work in office buildings and public facilities and they are asking their employers for recognition and to take responsibility through hazard pay and providing de-escalation training to deal with violent situations.

The security officers have experienced an increase in violent situations during the coronavirus pandemic linked to increased houselessness and the lack of needed treatment for mental illness.

"We need increased accountability from our employers in terms of what is the plan when you are dealing with a violent situation? How are our security officers supposed to handle situations with homelessness, with mental illness?" said Steve Boardman, communications director with Service Employees International Union-United Service Workers West, or SEIU-USWW.

There have been reports of violent robberies, being attacked by unhoused people when trying to clear them from an area, and violence and hostility as officers enforce COVID-19 protocols like the mask mandate.

The organization represents around 17,000 security officers statewide with a large concentration in downtown Oakland and downtown San Francisco. They are campaigning for the renewal of their contract and will be prioritizing increased protection. nbcbayarea.com

Retail's COVID Bounceback
Private Investors Buy Up Retail Real Estate as Bigger Players Remain Cautious

Prices of retail property are looking attractive after years of weak growth

Private investors are snapping up shopping centers and other bricks-and-mortar real estate, a bullish sign for the beleaguered retail property sector as it emerges stronger than expected from the Covid-19 pandemic.

If current trends persist, brokers expect REITs and major institutions to follow these smaller investors to the market. “We expect all of the major capital sources to want to have exposure to retail,” said Danny Finkle, co-head of retail capital markets at JLL. The renewed investor interest in retail marks a turnaround for a sector that has been struggling to adapt to the rise in e-commerce since before the pandemic.

Retail property transaction volume in the U.S. surged last year to nearly $82 billion, a 24% increase from 2019, according to MSCI Real Assets. The enthusiasm continued in the first quarter of this year, with transaction volume hitting $25 billion by April 30, an 82% increase over the same period in 2021.

Investors are warming to retail partly because of population shifts that favor suburban shopping, as evidenced by the growing popularity of open-air shopping centers. Meanwhile, the retailers that survived the pandemic’s initial lockdowns and surge in online shopping have found many customers still want to shop in person.

“Things have not only stabilized, but conditions have improved to some of the best fundamentals I’ve seen since 2007, maybe better,” Mr. Ziff said. wsj.com

OSHA pushes new COVID-19 enforcement program
Regulatory Update: OSHA Pushes COVID Standard and Other Rulemakings

OSHA has announced that COVID enforcement is the agency’s top priority for 2022.

“COVID-19 has been the occupational health issue of our time,” he noted in recent testimony before the House of Representatives Committee on Education and Labor’s Workforce Protections Subcommittee. He added that his agency is “working to finalize a permanent COVID-19 standard to ensure healthcare workers are protected as long as COVID-19 is a threat.”

At the hearing, he described the development of an infectious disease standard to apply to high-risk workplaces as a top priority for the agency. Had one been in place prior to the pandemic, he argued, “OSHA would have been in a better position to address COVID.”

However, he did not provide a target date for when the new standard would be issued. Unlike the Emergency Temporary Standard (ETS) on COVID that was met with such fierce opposition and was struck down by the Supreme Court, this time the agency will follow all of the notice and public comment procedures normally required for the development of a federal regulation. ehstoday.com  valawyersweekly.com
 
People who caught Covid in first wave get ‘no immune boost’ from Omicron

UK at start of new Covid wave driven by BA.4 and BA.5, data suggests

 

Retailers Share Shipping Cost Concerns with Biden
‘The rip-off is over’: Biden urges shipping reform during Port of Los Angeles visit

The president warned carriers that new regulations, aimed at cracking down on skyrocketing shipping costs, are coming

House lawmakers on Monday passed the Senate version of the Ocean Shipping Reform Act of 2022 through a 369-42 vote, sending the measure to President Joe Biden’s desk. Biden is expected to sign the bill into law.

The president leveled a warning on Friday at the nine top ocean carriers as he urged for swift passage of legislation to crack down on skyrocketing shipping costs.

The bill is part of the administration’s plan to address rampant consumer price inflation that has reached a new 40-year high. The proposal empowers the Federal Maritime Commission to self-initiate investigations into carriers’ business practices and provide a pathway for shippers to seek financial relief when hit with unreasonable fines.

Federal agencies responsible for oversight of rail and ocean shipping have sought to hold freight carriers accountable in recent weeks through a combination of hearings, newly proposed rules, and fines.

The profits for the carriers, which operate as three major consortiums, are costs for their customers. Wade Miquelon, JoAnn Stores president and CEO, told the president by phone in the video that price hikes had added nearly $100 million in costs for the retailer.

Hal Lawton, president and CEO of Tractor Supply Company, told the president in another call that heightened container prices alone had left his costs skyrocketing. retaildive.com

Police & Facial Recognition Tech
Groups launch research program to study police facial recognition in Ontario
A joint research program in the province of Ontario between a university, a policing technology accelerator, and a civil liberties organization will explore the implications of facial recognition by law enforcement and seek answers to difficult questions surrounding the biometric modality.

The V13 Policetech Accelerator is a collaboration between the Cobourg Police Service and the Northumberland Community Futures Development Corporation to create and implement innovative policing technologies and best practices in Ontario. The team will look to develop and validate new approaches for policing and facial recognition in a pilot-scale environment set in a small town.

“There is significant concern about facial recognition technology in policing, particularly with regard to bias in the technology and lack of oversight. We all desire our communities to be safer, but we also want deployments of technology by police to be fair and to preserve privacy except where truly justified,” says Slane. biometricupdate.com

Inflation Hits Highest Mark in Four Decades in May
U.S. Retail Sales Declined 0.3% in May

Consumers pulled back at auto dealerships, online shopping, and spent more at gasoline stations

So far this year, consumer spending has broadly held up, according to government data through April. Consumer spending accounts for about 70% of U.S. economic output. A strong labor market and rising wages are helping to support spending on services, for which there is pent-up demand from the pandemic.

Consumers are continuing to shift spending to services from goods as many Americans resume more in-person activities such as travel and dining out.

Companies are struggling with higher inflation, which they say is increasingly hard to pass on to consumers. Some large retailers such as Walmart Inc. and Target Corp. in recent weeks reported steep profit declines as rising supply-chain, wage and inflation-related costs ate into earnings. wsj.com

McKinsey & Company on Fear's Role - It's With Us Everyday
Fear factor: Overcoming human barriers to innovation

85 percent of executives we recently polled agree that fear holds back innovation efforts often or always in their organizations

Three fears. Innovation is critical to growth. But fear can stop experimentation in its tracks, leading to less creativity and less ambitious ideas. To learn how organizations successfully create a culture of innovation, McKinsey surveyed and interviewed executives who lead innovative projects around the world. The top three fears holding back corporate innovation were fear of criticism, fear of uncertainty, and fear of negative impact on one’s career, McKinsey research found. Yet nine out of ten companies are doing nothing to relieve these fears. mckinsey.com

Starbucks threatens that unionizing could jeopardize gender-affirming health care

SpartanNash acquires 3 Shop-N-Save West Michigan grocery stores

'Shrinkflation': Companies hide rising costs by shrinking the size of everyday products
 

Senior LP & AP Jobs Market

Director Global Security Operations Center job posted for FedEx in Memphis, TN
Leads and supervises all Global Security Operations Center (GSOC) operations to ensure state-of-the-art delivery of the following activities/capabilities on a global basis: security system monitoring and response, intelligence gathering and analysis, risk assessments, communications, reporting, emergency response & security officer dispatching, all in a center that operates 24/7. careers.fedex.com

Director, Global Security Operations job posted for WeWork in Columbus, OH
As a Director, Global Security Operations you will lead the strategic development and direction of key security support functions at WeWork. This role will proactively establish targeted programs/processes to address emerging security and business risks. This leader will effectively manage a team of security professionals poised to identify vulnerabilities, understand the threat landscape, and provide innovative solutions to mitigate risk to people, assets, operations, and brand. careers.wework.com