Chinese Fraud Rings Target Retailers
Inside the Chinese fraud rings stealing billions from banks and retailers

Digital forms of theft such as tap-to-pay schemes and app fraud are shaping the next wave of organized retail crime and fueling solo thieves to Chinese gangs, which earn as much as $1 billion annually from the crime, police say.

While credit card theft and fraud isn’t new, with the proliferation of tap-to-pay and growing use of retail apps, these digital thefts are shaping the next wave of organized retail crime and earning Chinese gangs as much as $1 billion annually, police said. Unlike typical retail theft operations — where criminals clear out shelves in big box stores and resell merchandise piece by piece on online marketplaces — the crimes can be carried out right under a store employee’s nose or from a computer anywhere in the world.

“It’s very low risk for the bad actors,” said Scott Glenn, vice president of asset protection at The Home Depot. “It’s not the same thing as walking into a Home Depot, filling up a cart full of power tools, and then walking out. It’s just not as visible, it’s not as obvious to what’s happening out there and so it’s become a more preferred method over the last several years.”

Fraudsters have selected retailers as their targets because their platforms carry sensitive information such as stored credit cards and personal data but they do not have the same level of security as banks, according to industry experts and law enforcement.

There’s no firm data on how much retailers are losing from digital forms of retail crime, but CNBC found around a dozen criminal cases across the country affecting a wide variety of retailers that police said involve a combination of organized groups and low-level fraudsters.

The cases are complex and often hard for local authorities to handle, said Capt. Matt Lawson of the Knox County Sheriff’s Office in Tennessee, who said he’s been investigating a fraud ring with ties to Chinese organized crime.

Unless the theft hits a certain dollar threshold or rises to the level of a federal crime, “it’s kind of like they get away with it almost,” he said.

Tap-to-pay fraud, which involves a fraudster adding a stolen credit card to their digital wallet and using it to buy gift cards or merchandise, often starts with a familiar text message and can end with an unwitting consumer’s identity up for sale on platforms such as Telegram. cnbc.com

   RELATED: Phone Tap Fraud Costs Retailers $1 Billion Annually


Zero-Tolerance Retail Theft Policy
Washington County Leaders Announce New Retail Theft Arrest Policy

For all misdemeanor and felony retail thefts, law enforcement will presumptively arrest and book suspects in the Washington County Jail when legally justified, rather than issuing a criminal citation to appear in court at a later date.

The Washington County District Attorney’s Office, in partnership with all Washington County law enforcement agencies, is announcing a new presumptive arrest and booking policy for retail theft. For all misdemeanor and felony retail thefts, law enforcement will presumptively arrest and book suspects in the Washington County Jail when legally justified, rather than issuing a criminal citation to appear in court at a later date.

In a recent letter addressed to the business community, DA Kevin Barton joined Washington County law enforcement agencies to announce the presumptive arrest and booking policy and to urge retailers to report all crime to law enforcement and to review their vehicle removal policies.

DA Barton and Washington County law enforcement agencies informed retailers that Washington County and its vibrant economy are targets for criminals. Case data shows that a significant percentage of retail theft in Washington County is committed by non-residents. Reporting theft, arresting criminals, and removing their vehicles are steps that will help stop and deter crime.

“We have a zero-tolerance policy in our community for crime, including retail theft,” said Washington County DA Kevin Barton. “With this renewed focus on accountability and deterrence, we are sending a clear message to criminals who commit theft in our community: you will be arrested and prosecuted.”

Addressing retail theft is a priority in Washington County. In 2022, the DA’s Office created a countywide task force and obtained approximately $3 million in grant funds. Funding has been distributed to retail businesses to upgrade security systems and to law enforcement agencies to support retail theft enforcement missions, to purchase needed equipment, and to cover law enforcement overtime.

“Retail theft harms local businesses, employees, and the sense of safety we work hard to protect in Washington County,” said Washington County Sheriff Caprice Massey. “This new arrest and booking policy strengthens our ability to hold offenders accountable and supports the retailers who are vital to our community. When crimes are reported, we can respond quickly, take meaningful action, and help prevent future theft.” washingtoncountyda.org


Cities Confront Violent Teen Takeovers
A social media post. Thousands of teens. Then chaos
America recently turned 250, with parades, cookouts and fireworks. But in city after city, another kind of gathering was drawing thousands of teenagers, some with dire consequences.

"Teen takeover" has become the catch-all term for large, youth-organized gatherings that have spread across pockets of the country. In some locations, they are referred to as sideshows. But this issue didn't just spark over the holiday weekend.

With summer break keeping students out of the classroom, many cities have seen the teen crowds grow larger, the incidents become more frequent and, in some cases, the consequences turn more serious.

The problem has gotten so bad that U.S. Attorney for the District of Columbia Jeanine Pirro told parents back in May to discipline their children or the federal government would do it. She also said parents would be held criminally responsible for their child's actions. Other state leaders have threatened legal punishment, including Florida Gov. Ron DeSantis. Cities like Washington, D.C., and Chicago have also implemented "juvenile curfew zones" in hopes of deterring such takeovers.

Even so, America's youth don't seem to be backing down. It starts with a post on social media. A date and time are set. And what is promoted as a party quickly turns into havoc. The gatherings take place in public settings where it seems the participants have no regard for the community infrastructure or public safety. yahoo.com


Where's the Beef? Locked Up!
Supermarket takes drastic action to prevent meat theft: ‘Welcome to California’
A San Jose Walmart has reportedly taken anti-theft measures to a new level, placing pricey cuts of beef and even packages of ground meat inside metal security cages to keep would-be shoplifters at bay. Influencer Tony Bartleson — better known online as “Meatdad” — posted a video from inside the California store showing rib-eye steaks and ground beef wrapped in wire security devices.

Holding up a cowboy rib-eye priced at nearly $16 a pound, Bartleson quipped: "Welcome to California." The video also showed a three-pound package of ground beef locked inside its own metal cage. The clip has racked up more than 3.8 million views. Bartleson said he was stunned by the response.

The unusual security measures sparked fierce debate online, with many shoppers saying they understood why the retailer resorted to locking up meat. The clip is similar to one that went viral last year of a Walmart shopper depicting the store’s butcher aisle with meat inside cages. nypost.com


Why 'cargo theft' is hitting your wallet hard | Opinion
Federal prosecutors have spent the past few years dismantling sophisticated theft rings operating in Rhode Island’s backyard – including one led by two Rhode Island men who profited millions in stolen merchandise sales across multiple states, as well as a Providence-based mail theft conspiracy where insiders allegedly stole more than $1 million worth of checks from the U.S. mail. providencejournal.com


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