Retailer IDs extensive gift card fraud, stops it cold

How a retailer's face match interrupted nationwide scam in just hours

Step one in any crisis: Stop the bleeding. Retailers lost $94.5 billion to thieves in 2021. Now they're stemming that figurative tide and preventing new wounds with FaceFirst's powerful investigative tools.

Here's how one retailer identified an extensive gift card scam and stopped it cold in less than three hours. A store manager notified the retailer's AP team that a masked man removed 50 Apple gift cards from the store without activating them. (This is the first step in a known, complex gift card fraud scheme.) The AP team ran a FaceFirst search. Even with the mask covering half of the man's face, the search quickly revealed that he repeated the gift card thefts in 21 stores.

As a result of the first search, the AP team noted the man's frequent accomplice. They ran a FaceFirst search on the accomplice and quickly found the second man had placed altered gift cards back on display in 61 of their stores. (This is the second step in the gift card fraud scheme.)

In less than three hours, the retailer identified the gift card theft pattern-at least 84 incidents with 2,000+ stolen and altered gift cards in the prior 14 days. The retailer temporarily removed all Apple gift cards from the stores and began working with the kiosk vendor to address the problem nationwide.

The retailer enrolled the two men in its custom FaceFirst database. FaceFirst alerted the retailer instantly when the men entered the stores again. The men returned three more times, determined that the Apple gift cards had been removed, and have not been back since.

FaceFirst gives retailers incredible investigative power that helps stop the bleeding and deters criminals so they're no longer harming the retailers' operations. FaceFirst's AI can search thousands of hours of CCTV security footage in seconds, turning a nearly impossible manual task for humans into instant, actionable intelligence. FaceFirst's fast, accurate search tool helps AP investigators build strong, detailed cases for coordination with law enforcement agencies and prosecutors.

FaceFirst's face matching technology alerts retailers instantly when known threats enter their stores, providing both life safety and loss prevention advantages. Calculate the risks of being caught unaware when a known offender enters your store. If you knew there was a proven solution to keep your valued customers and associates safer from violent offenders and prevent loss, would you implement it? The real risk is answering no. FaceFirst's solution is fast, accurate, and scalable-learn more today at facefirst.com.
 

RILA, NDAA Launch National Store Walk Month to Boost Safety & Fight ORC
National Store Walk Month: A Groundbreaking Initiative by RILA and NDAA to Strengthen Community Safety and Combat Organized Retail Crime

Initiative to Strengthen Community Safety, Combat Crime

In a groundbreaking initiative aimed at addressing retail crime and violence, the Retail Industry Leaders Association (RILA) and the National District Attorneys Association (NDAA) are proud to announce the launch of National Store Walk Month, set to debut this September. This initiative seeks to address the pressing issues of organized retail crime and habitual theft and its impact on our communities and represents a pioneering effort to facilitate a vital exchange between local prosecutors and community retailers.

Throughout the month of September, District Attorneys nationwide will walk retail stores with management teams, exchanging insights, fostering understanding, and working synergistically to reduce retail crime and address other unlawful activity occurring in and around retail stores. This partnership will provide both parties with a comprehensive understanding of their challenges, enabling a unified, effective response.

"National Store Walk Month represents our next leap forward in establishing comprehensive retail crime mitigation strategies and fostering community well-being," said Lisa LaBruno, RILA's Senior Executive Vice President. "This initiative will bridge the gap between retailers and prosecutors, helping us collectively address the complex challenges our communities face."

Large-scale retail theft has profound societal implications, extending well beyond economic harm to retailers—it poses a safety risk to frontline retail workers, threatens jobs, and diminishes the vibrancy of local communities. NDAA Executive Director, Nelson Bunn, highlighted the broader objectives of the initiative: "Our goal extends beyond reducing crime; we're working to foster safer, healthier, and more vibrant communities. National Store Walk Month is a crucial element of that mission."

Frederick County State’s Attorney J. Charles Smith III, President of the National District Attorneys Association, emphasized the importance of this comprehensive approach: "We need to tackle retail crime with broad, community-centered strategies. Through National Store Walk Month, we're taking a holistic stance to ensure our communities' safety and vibrancy."

National Store Walk Month invites all retailers and prosecutors to participate, fostering a united front against retail crime for a safer, more secure future. rila.org


Retail Associates Face Difficult Choice: Ignore Shoplifters Or Get Fired
Retailers tell employees to ignore retail theft or lose their jobs
Retailers have ordered employees to ignore gangs of shoplifters and started firing workers who buck the policy as an organized crime wave sweeps stores nationwide.

Losses from retail thefts nationwide will surge from $86.6 billion last year to at least $115 billion in 2025, bank holding company Capital One estimates, as stores lock up goods, bolster security and cut their losses rather than risk the financial liability of confronting thieves.

Shoplifting incidents cost retailers an average of $461.86 in 2020, and stores caught only about 2% of the incidents, according to Capital One. Business analysts say the cost is lower than the consequences of an employee getting injured, or worse, while trying to stop a theft.

Several reports show companies firing workers who intervene in heists. In a June 9 statement on store safety, the National Retail Federation praised businesses for training employees to contact the police and avoid “situations that may result in confrontation.”

“The number one priority for retailers is ensuring the safety and security of both customers and workers,” the retail trade group said.

As retailers take a zero-tolerance approach to confronting thieves, lawmakers are debating whether soft-on-crime policies in America’s largest cities have contributed to a surge in organized retail crime, including daytime smash-and-grab robberies and follow-home “jugging” thefts.

On Capitol Hill, former prosecutors told House lawmakers at a June 13 hearing that criminal policies downgrading shoplifting and theft to less-serious offenses in recent years have roused crooks to act without impunity.

Some big-box retailers have abandoned crime-ridden cities as shoppers avoid the most targeted stores.

With zero-tolerance policies to protect employees and their ledgers, companies are reporting snowballing thefts, Mr. Friedman said. washingtontimes.com


Target Store Enacts New Chaperone Policy as Teen Thefts & Fights Surge
Calif. Target implements controversial 'chaperone policy' for teens after 4 p.m.

A new store policy at a Target in California is not sitting well with parents.

This teen is just one of many who said they were denied access to the Target at the Valley Plaza Mall. He was stopped at the front by security. They asked him how old he was and he asked them why and the security told him because anyone 18 and under can't enter Target without an adult after 4 p.m.," said Caywood.

Eyewitness News confirmed, their new rule is true. In fact, they said they cannot ask to check IDs but go based on if the person looks underage. Caywood said after her son told security he was over 18 years old he was let in.

"I told him that doesn’t sound right, did you see anything in writing at the door? Did anybody else tell you? And did you see them stopping anybody else? And he said no," said Caywood. Then it happened again two weeks later with her 16-year-old daughter.

A Target employee told Eyewitness News the reasoning behind their new rule is that there have been too many fights, thefts and teens roaming the store.

The teen's father asked for them to put up a sign stating their new policy, but a sign has yet to be posted.

Zambrano also said profiling based on age to prevent the risk of theft is not against the law but stopping people based on race, gender, sexual orientation and disability is against the law.

Target employees said this rule could be extended for the rest of the year. fox11online.com


Legislation & Resources to Battle ORC
3 Resources to Counter Organized Retail Crime

To learn more about ORC & advocate for your business, check out these ORC resources and groups to help you develop your own loss prevention strategies.

INFORM Consumers Act This bill requires online marketplaces to collect, verify and disclose certain information from high-volume, third-party sellers. Online marketplaces must make certain information, such as sellers’ names and contact information, available to consumers through the sellers’ product listings and provide consumers with methods to report electronically and by telephone any suspicious activity on the marketplace.

Combating Organized Retail Crime Act This legislation has been introduced in both the House and Senate. It includes many of the proposals submitted to Congress and the Biden administration by the National Retail Federation to combat organized crime involving the illegal acquisition of retail goods for the purpose of selling those illegally obtained goods through physical and online retail marketplaces.

NRF’s ORC/Investigators Network This network comprises retail loss prevention professionals and federal, state and local law enforcement officers. It shares information and strategizes solutions on the latest ORC trends.

Discover additional loss prevention strategies here and here.


Using Vacant Malls for Active Shooter Trainings
Vacant Eastfield Mall used for active shooter training by Hampden County Special Response Team
While the community awaits word of the demolition of the Eastfield Mall, the vacant building has been used to help train local law enforcement on active shooter situations.

The Hampden County Special Response Team and Medical Emergency Response Team recently used the vacant mall to train their officers and medical staff in the event of an active shooter. The response teams include members of local police departments, fire departments and the Hampden County Sheriff’s Office.

“Unfortunately in today’s world, we need to be prepared for the unexpected and prepare for the worst-case scenarios,” Hampden County Sheriff Nick Cocchi said. “When the regional response teams get together for training opportunities like this, it makes a huge difference in being ready to respond in case, God forbid, the call ever comes. We are proud to be a part of these regional teams to support the community in a time of need.”

The Eastfield Mall closed on July 15 after more than 50 years of business. The new owners of the property, Onyx Partners, are planning to demolish the current building and build something new. Onyx Partners says the total cost of the redevelopment will fall between $65 million and $85 million and will take approximately two years to complete. wwlp.com


Holding Mall Owners Accountable for Violence
City might go after shopping center owner, site of mass shooting
The City of Lansing is looking to take action against the owner of the Logan Square shopping center following Sunday’s mass shooting that injured five people.

Officials on Wednesday said they’re looking to put some things together to try and stop the violence including the recommendation to rescind a permit from the Energy Event Center venue which held the large crowd.

City leaders want the shopping center owners to be held accountable as well.

“The City Attorney is looking at a nuisance suit of the facility, Logan Square. We’ve seen issues with illegal gambling, we’ve seen issues with parties like this, so the City Attorney is taking a look at that. At the request of council members at the request of me and see if there’s a nuisance case to be made,” Schor added.

He continued and said this would not prevent existing businesses from operating and hoped to move on things quickly. wlns.com


2023 On Track To Be Record-Breaking Year For Mass Shootings
U.S. averaging 2 mass shootings per day so far this year
The U.S. is currently on pace to meet or surpass the previous record for the most mass shootings in a year, which was set in 2021 with a total of 690, according to Gun Violence Archive (GVA) data.

Why it matters: So far this year, the U.S. has seen an average of two mass shootings every day, for a running total of 419. At this point in 2021, 401 mass shootings had occurred, and that year over all had a daily average of 1.9 mass shootings.

Details: Already, over 25,000 people have died from gun violence this year, and there are still 153 days left in 2023. That's an average of 118 deaths per day, and among those daily deaths were nearly one child between the ages of zero and 11 and over four teens between 12 to 17 years old.

What they're saying: "Gun violence takes an enormous toll on this country, and it is a toll that we all share," Kelly Drane, the research director for the Giffords Law Center to Prevent Gun Violence, told Axios. axios.com


In Case You Missed It: Legislation aims to deter organized retail crime

How locked products at stores affects paying customers