Retail Crime Wave Continues to Make National Headlines

Lower Felony Theft Thresholds + Online Marketplaces Fuel Retail Crime
Thefts, Always an Issue for Retailers, Become More Brazen
Theft is an ever-present issue for retailers. As much as $68.9 billion of products were stolen from retailers in 2019, according to one industry group. But it has become more visible, brazen and violent in recent months, forcing an industry already buffeted by pandemic lockdowns and fights over mask requirements to deal with a new problem.

“This level of violence has taken it to a whole new level,” said Rachel Michelin, president of the California Retailers Association. “No one has seen this before.”

But even industry veterans, who have been tracking generations of shoplifters, have been stunned by the methods and mind-set of the thieves, saying they reflect a sense of impunity.

“Looting in general started during civil unrest, and it has now evolved,” said Ben Dugan, president of the Coalition of Law Enforcement and Retail, a trade group focused on crime at retailers. “Criminal organizations saw during civil unrest that they were able to get their hands on millions of dollars of stolen product very quickly.”

The rise in thefts comes as punishments for retail theft have been broadly eased over the past decade.

Since 2005, 30 states have increased the dollar threshold for theft offenses, which effectively means that fewer people are going to jail for smaller thefts, according to the National Conference of State Legislatures. More than half the states now have a felony theft threshold of $1,000 or more.

The theft laws were changed to help reduce incarceration rates across the country, and some studies have found that the lower penalties have not led to more crime. And many of the most brazen crimes committed around Thanksgiving far exceeded the $1,000 threshold.

Ms. Michelin, the head of the California retail trade group, has been meeting with local prosecutors and the governor’s office, which has established a task force on organized retail crime, trying to raise the urgency of prosecuting these cases.

One of the biggest issues that brick-and-mortar retailers have been grappling with is the rapid growth of online marketplaces where anyone can easily sell goods, often anonymously.

“Amazon, eBay, Facebook Marketplace, OfferUp, Etsy — all of those are utilized by illicit online sellers, and they’re allowed to get away with it because the illicit sellers are allowed to operate with anonymity on the internet,” Mr. Dugan said.  nytimes.com

Laws that 'Decriminalize Theft' are Finally Catching Up
Alarm grows over smash-and-grab robberies amid holiday season
An uptick in smash-and-grab robberies across the U.S. has jolted businesses, prompting owners and leaders to take precautions to protect brick-and-mortar shops amid a busy holiday shopping season.

Stores and malls in San Francisco, Los Angeles, Chicago and other metropolitan areas have been the targets of flash mob robberies, break-ins and vandalism. Experts who spoke with The Hill said that the increase in online shopping amid the pandemic has contributed to the increase in these kinds of crimes.

Michael Hanson, the senior executive vice president for public affairs at the Retail Industry Leaders Association and a spokesman for the Buy Safe America Coalition, told The Hill that the recent spike in organized retail crime across the U.S. has, in part, been driven by the COVID-19 pandemic.

With a significant portion of customers isolating in their homes and shifting to online shopping, Hanson said perpetrators of organized retail crime are seizing the opportunity to sell stolen goods to a larger audience — a pattern that contributes to an increase in crime.

A report released in November by the Retail Industry Leaders Association and the Buy Safe America Coalition said that asset protection professionals and law enforcement officials believe shifts in how shoplifting and other nonviolent crimes are prosecuted are factors in rising in-store theft in recent years.

According to the document, a number of states have increased the felony threshold for shoplifting due to overcrowding in prisons, which the report says is “effectively decriminalizing” robberies in some areas.

“The overcrowding of jails led many states to raise felony thresholds for shoplifting, or have eliminated cash bail for non-violent crimes, effectively decriminalizing theft in some jurisdictions, thus leading to fewer arrests and fewer prosecutions,” the report reads.

“This shift in prosecution has led existing organized criminal enterprises, gangs, mafias, and syndicates that traditionally monetized their efforts with violent and drug-related income to shift their criminal operations to attack retail,” it adds. thehill.com

Retailers 'Under Assault' - Demand Tougher Anti-Theft Legislation
Retailers Push for Stronger Law for California Store Theft After Smash-and-Grab Robberies
Retailers and prosecutors in California are pushing for stronger legislation to counter a string of large-scale thefts in the state and beyond, the Associated Press reported.

KOVR reported that California Retailers Association President and CEO Rachel Michelin said that though shoplifting has been a growing issue for some time, the recent pattern of groups rushing stores to commit smash-and-grab robberies is "raising it to a whole new level."

"We feel a little bit like we're under assault," Michelin said.

Some groups and individuals have blamed the thefts on progressive policies like Proposition 47, a voter-approved ballot measure from 2014 that eased some theft and drug possession offenses from felonies to misdemeanors, KOVR reported. But a majority of California voters, 62 percent, voted last year against a bid to roll back parts of the proposition and other recent legislation that lessened criminal sentences.

"Californians have made clear multiple times that they want to see us prioritize our investments on crime prevention over continued investments in failed incarceration," said Will Matthews, a spokesman for Californians for Safety and Justice.

Still, retail associations and prosecutors have argued against California Governor Gavin Newsom's and Attorney General Rob Bonta's assurances that the state has all of the legislation it needs to hold people who commit retail theft accountable, the AP reported.

"It's patently false to assert that we have enough laws on the books that are fixing this problem, because it's obviously not going away and won't be going away," said John Kabateck, director of the California chapter of the National Federation of Independent Businesses.

A law firm that has worked with the prosecutors' association last week introduced a ballot measure that would allow up to a year in jail for anyone who previously was twice convicted of various thefts. newsweek.com

Chicago's ORC Task Force Update
Organized Retail Crime Task Force Recovers Millions Of Dollars In Stolen Goods From Chicago Storage Units
Investigators recovered millions of dollars in stolen merchandise from storage units at two Chicago facilities, as part of a large-scale investigation into organized retail thefts.

Illinois Attorney General Kwame Raoul said his Organized Retail Crime Task Force, working with Chicago Police and other law enforcement agencies, executed search warrants on eight storage units at two facilities, recovering tens of thousands of stolen products, worth millions.

“Organized retail theft is about more than lost revenue and stolen products. Frequently, the criminal enterprises behind these crimes are connected to other crimes, such as the drug trade and human trafficking. I am committed to identifying the perpetrators behind this and other organized retail crimes in Illinois,” Raoul said.

According to Raoul’s office, the units that were searched contained four semi-trailers of stolen merchandise; including clothing, beauty products, furniture, food, and electronics.

Authorities were still conducting a complete inventory of the stolen goods, but estimated they are worth millions of dollars.

This was the first major bust by the Attorney General’s Organized Retail Crime Task Force since they officially started work in September. It happened because of a CPD gun arrest.

The announcement comes as CBS Chicago earlier this week reported on a number of large-scale thefts at high-end stores, with businesses fearing the incidents could drive shoppers away. chicago.cbslocal.com

Read more about the Chicago bust in the ORC column below

Psaki says root cause of organized retail crime is the COVID-19 pandemic

California retail theft trend sparks demand for security guards

Holiday shoppers return to SF Union Square with modified security measures

S.F. Safeway adds barriers to deter shoplifting amid Bay Area retail theft debate


314 Officers Shot - 58 Killed by Gunfire So Far in 2021
National Fraternal Order of Police Reports Officers Injured, Killed by Gunfire Through November 2021
The National Fraternal Order of Police reports that as of midnight on 30 November, there have been 314 officers shot in the line of duty so far this year. Of those officers shot, 58 of them were killed by gunfire.

There have been 95 ambush-style attacks on law enforcement officers this year (+126% from 2020 YTD). These ambush-style attacks have resulted in 119 officers shot, 28 of whom were killed.

The number of officers shot and killed so far in 2021 has already exceeded the number shot and killed in both 2019 and 2020.

One of the growing concerns over the past few years - with the numbers continuing to increase in 2021 - is ambush-style attacks on police officers.

To read the full report, please click here.

Ghost Guns: The New Crime Trend Worrying Law Enforcement
What you need to know about an untraceable, legal weapon that is becoming popular
Some are focusing their attention on so-called ‘ghost guns.' The gun at the center of the transaction was referred to by Sgt. Justice as a ‘poly-type gun,' or a ghost gun. It is a gun that people can build. They can order the parts off the internet. There's different ways they can obtain those," said Sgt. Justus.

Ghost gun owner talks

For a few hundred dollars, tools, and a lot of time, people can make their very own gun from the comfort of their home. While it is illegal to buy a completely assembled ghost gun, it is legal to buy all the parts needed to make one, and the parts can be obtained pretty easily: online, 3D print, or even purchase in stores like Murphy's.

There are no serial numbers on ghost guns

Murphy says a ghost gun does not have a serial number, because it comes in parts. Therefore, the government cannot trace it, which is appealing to some people.

"I think the allure with ghost guns is you don't have that government oversight," said Murphy. "Uncle Sam doesn't know you have this, and that's absolutely legal to own and make, so long as you keep it and don't try to resell it."

Law enforcement officials worried

Law enforcement consider these homemade guns a threat, and the gun's popularity is rising. In 2020, Phoenix Police impounded 30 ghost guns. In the first six months of 2021, that number was already at 31, but those numbers are much less compared to other guns.

"So, what's concerning about these types of firearms to us is that there really is no quality control when they're being made. So, the safety. Also the fact that we don't know how many of them are out there. That's probably the most of concerning," said Sgt. Justus. fox29.com

'New Way of Looking at Gun Violence': Anti-Terrorism Charges for Shooters?
Terrorism charge in Michigan shooting could mark 'new way' forward, experts say

"We may now see, at least, consideration by prosecutors for seeking these charges," said former U.S. Attorney Barbara McQuade.

As Michigan grapples with a school shooting that killed four students Tuesday, the 15-year-old boy accused of the massacre faces a rare charge of terrorism, which experts say could set a precedent for future cases.

The charge was issued under Michigan's 2002 anti-terrorism statute. McDonald said she believed the charge was fitting for the crime and that it reflected the impact the shooting will have on survivors, victims' families and the larger community.

McQuade, who acknowledged that anti-terrorism laws differ from state to state, said she believes that the case unfolding in Michigan could change how we look at gun violence.

“We may now see, at least, consideration by prosecutors for seeking these charges, because it is important, I think, to recognize the trauma that has been inflicted upon a community,” she said.

Schneider said he also could see terrorism charges' being brought more often in mass shooting cases when statutes allow. nbcnews.com

Op-Ed: Gun capitalism — not ‘ghost guns’ or other trends — to blame for gun violence
 

US: 49.9M Cases - 808.7K Dead - 39.5M Recovered
Worldwide: 266.2M Cases - 5.2M Dead - 239.8M Recovered

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

Private Industry Security Guard Deaths: 328  
Law Enforcement Officer Deaths: 543
*Red indicates change in total deaths

U.S. Vaccine Doses Administered by Day

New COVID Variant Spreading Across the Country
Omicron variant in at least 15 states and cases are likely to rise, CDC chief says
At least 15 states have detected the omicron coronavirus variant and that number is expected to rise, Centers for Disease Control and Prevention Director Dr. Rochelle Walensky told ABC News on Sunday.

“We know we have several dozen cases and we’re following them closely. And we are every day hearing about more and more probable cases so that number is likely to rise,” Walensky said on “This Week.”

The variant, first discovered in South Africa, has several mutations to the spike protein that allows the virus to enter the body, and some of those mutations could lead to increased antibody resistance and transmissibility. Scientists are still collecting data on the virus and the effectiveness of current Covid-19 vaccines. cnbc.com

NYC's 'First-of-its-Kind' Vaccine Mandate for Private Businesses
New York to mandate Covid vaccines for all private sector workers
All private sector employers in New York City will now be required to implement a Covid-19 vaccine mandate by December 27, the city's mayor Bill De Blasio announced Monday. Public sector workers were already subject to vaccine mandates.

This new move, which De Blasio announced Monday on MSNBC, means everyone who works in the city will now be subject to a vaccine mandate.

Mr. de Blasio said the aggressive measure, which takes effect Dec. 27 and which he described as the first of its kind in the nation, was needed as a “pre-emptive strike” to stall another wave of coronavirus cases and help reduce transmission during the winter months and holiday gatherings.

“Omicron is here, and it looks like it’s very transmissible,” he said in an interview on MSNBC. “The timing is horrible with the winter months.”

New York City has already put vaccine mandates in place for city workers and for indoor dining, entertainment and gyms. Nearly 90 percent of adults in the city now have at least one dose of the vaccine.

But Mr. de Blasio said the city must go further to combat another wave of the virus in New York City, once the epicenter of the pandemic. Some private employers have required employees to get vaccinated, but many others have not. nytimes.com  cnn.com

Drugstores Nationwide Are Strained
US drugstores squeezed by vaccine demand, staff shortages
A rush of vaccine-seeking customers and staff shortages are squeezing drugstores around the U.S., leading to frazzled workers and temporary pharmacy closures.

Drugstores are normally busy this time of year with flu shots and other vaccines, but now pharmacists are doling out a growing number of COVID-19 shots and giving coronavirus tests.

The push for shots is expected to grow more intense as President Joe Biden urges vaccinated Americans to get booster shots to combat the emerging omicron variant. The White House said Thursday that more than two in three COVID-19 vaccinations are happening at local pharmacies.

And pharmacists worry another job might soon be added to their to-do list: If regulators approve antiviral pills from drugmakers Merck and Pfizer to treat COVID-19, pharmacists may be able to diagnose infections and then prescribe pills to customers.

“There’s crazy increased demand on pharmacies right now,” said Theresa Tolle, an independent pharmacist who has seen COVID-19 vaccine demand quadruple since the summer at her Sebastian, Florida, store. apnews.com

Retail's Response to New Variant
Can retail move more quickly than Omicron?
The Omicron virus is here and is probably more widespread than currently known. Beyond that there isn’t a lot known about the latest variant of COVID-19 other than by vaccine makers. At least one company producing a therapeutic antibody treatment has told The Wall Street Journal, though, that the new variant is more resistant to treatment than the current variant, Delta, that is behind a recent spike in cases in the U.S. and elsewhere.

The government has begun bringing back mask mandates for mass transit and other activities. Retailers have expressed concern about having to play mask police once again.

“We know from previous lockdowns that reminding people about face coverings and social distancing is a big trigger for abuse and [store workers] are hesitant about challenging people,” Chris Noice, a spokesperson for the Association of Convenience Stores, told The Guardian.

Businesses in the U.S. also have substantial concerns about abuse of workers. Frontline workers fear for their safety when confronted by unruly customers trying to make political statements about masks and vaccines as well as large groups of thieves engaged in organized, sometimes violent, crime in stores.

Do you see signs that the Omicron variant has begun to affect consumer shopping behavior in the U.S.? What can retailers do now to make sure they are ready for what comes from this possible new threat? retailwire.com

COVID-19: The Root of the Supply Chain Crisis
How the Supply Chain Crisis Unfolded

Ships stuck at sea, warehouses overflowing, trucks without drivers: The highly intricate and interconnected global supply chain is in upheaval, with little end in sight.

In one way or another, much of the crisis can be traced to the outbreak of Covid-19.

With fewer goods being made and fewer people with paychecks to spend, manufacturers and shipping companies assumed that demand would drop sharply. But a far more complicated situation unfolded, challenging the global supply chain.

Empty shipping containers piled up in many parts of the world. The result was a shortage of shipping containers in the one country that needed them the most: China.

China’s factories were pumping out goods in record volumes. Despite the worry that economic devastation would destroy spending in many countries, the pandemic merely shifted the demand: Instead of eating out and attending events, Americans bought office furniture, electronics and kitchen appliances.

The pandemic sharply accelerated a trend that had been advancing for years: the shift toward online shopping. From April to June 2020, as the first wave of the virus spread, Amazon sold 57 percent more items than it had a year earlier.

Swelling orders also outstripped the availability of shipping containers, and the cost of shipping a container from Shanghai to Los Angeles skyrocketed tenfold. Even once unloaded, containers piled up on docks unclaimed, because of a shortage of truck drivers needed to haul cargo to warehouses.

Businesses across the economy struggled to hire workers: at warehouses, at retailers, at construction companies and for other skilled trades. Even as employers resorted to lifting wages, labor shortages persisted, worsening the scarcity of goods.

With the holiday shopping season underway and the Biden administration pressing to force major ports to expand operations, the supply chain has become a central political issue. The supply chain issues are likely to last for many more months — if not years. nytimes.com

Another Police Department Grapples with Vaccine Mandate
At least 160 San Diego officers could face termination for not complying with COVID vaccine mandate
At least 160 San Diego police officers could face termination for not complying with the city’s COVID-19 vaccination mandate unless they abide by the rules within the next 30 days.

City employees were required to show proof of vaccination or request a medical or religious exemption by Wednesday of this week. The City Council, in a pair of 8-1 votes Monday, moved forward with imposing the mandate despite an impasse with the police union.

About 65% of officers were vaccinated as of Thursday, according to the city’s latest figures. The remainder included 616 officers who reported that they were unvaccinated and 64 who hadn’t provided their vaccination status.

Some 454 officers requested an exemption, according to the city. That means that, as of this week, at least 160 officers were unvaccinated and did not request an exemption. ktla.com

Strict COVID Rules Lead to 41% Drop in Shopping District Visitors
German COVID-19 rules put off shoppers, says retailer group

Pfizer and Merck Covid-19 Pills Are Coming Soon in the U.S.

Omicron appears more contagious, less dangerous than other variants

2021: The Year of Ransomware, Privacy Battles & Data Breaches
Hacks, ransomware and data privacy dominated cybersecurity in 2021
Cyberattacks grabbed headlines throughout 2021 as massive disruptions affected government agencies, major companies and even supply chains for essential goods like gasoline and meat.

Here's a quick look at the most important cybersecurity news of 2021:

Ransomware: When the big guys go down it affects everyone

The year made it painfully obvious that the days of garbage ransomware used by script kiddies are long gone. Ransomware, which encrypts a computer until victims pay for tools to unlock their data, is big business. Cybercriminals have set their sights on major businesses that will pay big bucks to avoid being shut down.

That's what happened in the headline-grabbing cases of Colonial Pipeline and JBS USA Holdings. Both companies forked over millions of dollars in bitcoin, a favorite cryptocurrency, in ransom payments after they found their systems locked up.

Data privacy battles

In September, Apple issued an emergency patch for the operating systems powering its iPhones, iPads and Apple Watches to close holes that made the devices vulnerable to Pegasus spyware developed by Israel's NSO Group.

Though the spyware was largely a threat only to high-profile users who could be targeted by nation-state hackers, the vulnerability was a black mark for Apple, which had, for the most part, enjoyed a reputation for being relatively safe from viruses and online attackers.

Data breaches keep coming

Data breaches publicly reported in the first nine months of 2021 exceeded the total for all of 2020, according to the Identity Theft Resource Center.

Department-store chain Neiman Marcus, stock trading platform Robinhood, web host GoDaddy and wireless carrier T-Mobile were among the companies to report data breaches that resulted in customer information being stolen. California Pizza Kitchen and McDonald's both reported breaches that compromised data related to their operations and employees. Cybercriminals stole data from video game company Electronic Arts that included the source code for soccer game FIFA 21. cnet.com

No Major Ransomware Attacks Over Thanksgiving Holiday Weekend
Majority of US retailers, critical infrastructure unscathed after holiday warnings
Critical infrastructure providers and most U.S. retailers got through the holiday weekend unscathed, as pre-Thanksgiving alerts from federal authorities put security operations teams on notice to prepare for threat activity and tighten password and authentication protocols.

Ikea, the multinational home furnishings retailer, faced off against a sophisticated phishing attack that used stolen reply chain emails against company employees. The Netherlands-based retailer, which has a major presence in the U.S., said Black Friday sales and operations were not impacted by the attack, however ongoing efforts were being conducted to "seal and solve" the attack.

Ikea said its highest priority is to make sure customer, co-worker and business partner data is secure and handled correctly. All personal information, including credit card numbers, addresses and other sensitive data was encrypted, the company said. There was no indication of customer data being compromised during the attack.

Most of the infosec community gave thanks after the long holiday weekend as the vast majority of e-commerce, retail and critical infrastructure providers returned to work Monday without a major ransomware attack or other major data breaches.

Much of the industry was on edge after the FBI and the Cybersecurity and Infrastructure Security Agency warned of potential holiday disruptions during the Thanksgiving weekend.

"CISA encourages companies of all sizes to remain vigilant against cyber threats and implement cyber hygiene best practices, including multifactor authentication, strong passwords and proactive patch management," Matt Hartman, deputy executive assistant director of cybersecurity at CISA told sister publication Cybersecurity Dive in an emailed statement. "We remain ready to assist organizations and critical infrastructure entities impacted by ransomware and encourage all to visit stopransomware.gov to take action to protect themselves." retaildive.com

Selling Stolen Credit Cards on the Dark Web
Hackers sell stolen US cards at dirt cheap prices

Buying stolen payment cards on the dark web is far cheaper than most people may realize

Buying stolen payment cards on the dark web is far cheaper than most people may realize, according to a Dec. 1 report released by the cybersecurity firm Nord Security, whose virtual private network has more than 14 million users.

An analysis of about four million payment cards that belonged to citizens of 140 countries found that stolen American debit and credit cards could be purchased on average for $5.80, 40% below the average price for all cards of $9.70, the report said.

The country with the most stolen cards circulating on the dark web was the U.S., accounting for about a third of the total, a press release Wednesday accompanying the report said. About 1.56 million of the stolen cards belonged to Americans, while Australia had the second most stolen, with 419,806 pilfered cards. Residents of Hong Kong ranked third, with 399,537 stolen cards.

Visa, the biggest U.S. card company, accounted for more than half (913,955) of all the stolen U.S. cards, followed by Mastercard (406,851) and American Express (143,836), the release from NordVPN said. Visa prepaid cards were twice as likely to be found on the dark web as the company's introductory level credit cards.

Many of the stolen card numbers were hacked using a tactic cybersecurity experts call "brute-forcing," the report said. In brute-forcing, a computer tries to guess your password, testing a series of numbers until it gets it right, possibly in as few as six seconds. A computer is able to "make thousands of guesses a second,” Briedis said. “After all, criminals don’t target specific individuals or specific cards. It’s all about guessing any viable card details that work to sell."

Unfortunately, as NordVPN notes, short of abstaining from card use, "there is little users can do to protect themselves from this threat," the company said in the release. “The most important thing is to stay vigilant." paymentsdive.com

Sophisticated Spyware Targets Government Phones
NSO Group Spyware Used to Breach US State Dept. Phones

At least nine US State Department employee iPhones were targeted with sophisticated spyware developed by the Israeli firm NSO Group.

Advanced spyware developed by Israeli technology company NSO Group was found on iPhones of at least nine US State Department employees.

The phones were hacked over the last several months and targeted US officials who were either based in Uganda or working on issues related to the country, according to Reuters, which first reported on the news and cited four sources familiar with the matter.

NSO Group did not have any evidence its tools were used, the report stated, but it plans to investigate. The company has said its system does not work on phones registered with US numbers starting with the +1 country code; however, the employee phones targeted in this case were reportedly registered with foreign numbers. darkreading.com

USB Devices the Common Denominator in All Attacks on Air-Gapped Systems

Iowa State-led coalition wins $2M NSA grant to train more cybersecurity professionals