FBI: Organized Retail Theft Costs $30 Billion Per Year

It’s a telling case: a few years ago, members of two criminal organizations in California were charged for their role in a large-scale fencing operation to buy and sell over-the-counter health and beauty products -- as well as other items like camera film, batteries, and infant formula -- that had been stolen from major retail chain stores. The merchandise was then passed off to crooked out-of-state wholesale distributors, who just sold it back to unsuspecting retailers.

Industry experts say organized retail crimes like these cost the U.S. about $30 billion a year. While that estimate includes other crimes like credit card fraud, gift card fraud, and price tag switching, the FBI’s Organized Retail Theft program -- according to Special Agent Eric Ives of our Violent Crimes/Major Offenders Unit in Washington, D.C. -- “specifically focuses on the most significant retail theft cases involving the interstate transportation of stolen property.” Organized retail theft, says Ives, is a “gateway crime that often leads us to major crime rings that use the illicit proceeds to fund other crimes -- such as organized crime activities, health care fraud, money laundering and potentially even terrorism.“

Targets and thieves. The stores targeted for theft run the gamut -- from grocery and major department stores to drug stores and specialty shops. The organizations responsible for much of this crime include South American theft groups, Mexican criminal groups, Cuban criminal groups from South Florida, and Asian street gangs from California.

Fighting back. According to Ives, the FBI uses many of the same investigative techniques against organized retail theft groups that we do against any criminal enterprise or terror network, especially undercover operations. Organized retail theft cases also present some valuable opportunities for us to enlist confidential human sources -- the best sources of intelligence information -- in order to dismantle entire operations. We recruit from the ranks of those who steal the merchandise (to a lesser degree) and mid-level fences and individuals higher up in the chain of command (to a greater degree).

Importance of collaboration. The FBI doen't do it alone, though. The FBI partners with law enforcement at the federal, state, and local levels, sharing intelligence and working together operationally on seven major theft task forces located in five cities around the country -- Miami, El Paso, Memphis, New York, and Chicago.

The FBI also works closely with the retail industry. Most recently, the FBI assisted in the development of the non-profit Law Enforcement Retail Partnership Network (or LERPnet), a secure national database used by retailers to report and share with one another incidents of retail theft and other serious retail crimes. The database, which has helped reveal patterns of organized theft, is now available to law enforcement agencies around the country.

Overall impact of organized retail theft. For one thing, it means higher prices for American consumers and less sales tax revenue for state and local governments. There is also a health and safety aspect -- in many cases, stolen food products, pharmaceuticals, and other consumables aren’t maintained under proper conditions or labeled properly, so when they do finally make their way back to unsuspecting consumers, they may be ineffective or may even make people sick.

All good reasons for the FBI and its partners to continue their collective fight against organized retail theft.

Featured

  • Maximizing Your Security Budget This Year

    Perimeter Security Standards for Multi-Site Businesses

    When you run or own a business that has multiple locations, it is important to set clear perimeter security standards. By doing this, it allows you to assess and mitigate any potential threats or risks at each site or location efficiently and effectively. Read Now

  • Getting in Someone’s Face

    There was a time, not so long ago, when the tradeshow industry must have thought COVID-19 might wipe out face-to-face meetings. It sure seemed that way about three years ago. Read Now

    • Industry Events
    • ISC West
  • Live From ISC West 2024: Post-Show Recap

    ISC West 2024 is complete. And from start to finish, the entire conference was a huge success with almost 30,000 people in attendance. Read Now

    • Industry Events
    • ISC West
  • ISC West 2024 is a Rousing Success

    The 2024 ISC West security tradeshow marked a pivotal moment in the industry, showcasing cutting-edge technology and innovative solutions to address evolving security challenges. Exhibitors left the event with a profound sense of satisfaction, as they witnessed a high level of engagement from attendees and forged valuable connections with potential clients and partners. Read Now

    • Industry Events
    • ISC West

Featured Cybersecurity

Webinars

New Products

  • ComNet CNGE6FX2TX4PoE

    The ComNet cost-efficient CNGE6FX2TX4PoE is a six-port switch that offers four Gbps TX ports that support the IEEE802.3at standard and provide up to 30 watts of PoE to PDs. It also has a dedicated FX/TX combination port as well as a single FX SFP to act as an additional port or an uplink port, giving the user additional options in managing network traffic. The CNGE6FX2TX4PoE is designed for use in unconditioned environments and typically used in perimeter surveillance. 3

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions. 3

  • Hanwha QNO-7012R

    Hanwha QNO-7012R

    The Q Series cameras are equipped with an Open Platform chipset for easy and seamless integration with third-party systems and solutions, and analog video output (CVBS) support for easy camera positioning during installation. A suite of on-board intelligent video analytics covers tampering, directional/virtual line detection, defocus detection, enter/exit, and motion detection. 3