NRF Report Finds Organized Retail Crime Growing

A recent NRF survey shows retailers think organized crime is becoming more troublesome than ever before. According to NRF's annual Organized Retail Crime Survey, 96 percent of the 125 retail companies surveyed say their company has been the victim of organized retail crime in the past year. That's up from 94.5 percent last year. In addition, 87.7 percent say organized retail crime has grown over the past three years in the United States.

"What this tells us is that as retailers and law enforcement become more aware of and more proactive in pursuing organized retail crime gangs, criminals have become more desperate and brazen in their efforts, stopping at nothing to get their hands on large quantities of merchandise,” said Rich Mellor, NRF Vice President of Loss Prevention. “Selling this stolen merchandise is a growing criminal enterprise and retailers must remain vigilant as this is an issue that involves everyone's cooperation when it comes to protecting retailer's assets, including their valued store associates and customers."

However, this year more companies believe law enforcement is aware of an understands the severity and complexity of the issue (40 percent in 2012 vs. 32.3 percent in 2011). More than half (54.4 percent) say top management at their company is aware of the problems associated with organized retail crime. 

Increase in violence and cargo theft pose problems for retailers

Cargo theft continues to grow at an alarming rate, posing huge problems for retailers and their distribution centers. On average, 52.1 percent of companies say they have been a victim of cargo theft in the past 12 months, up from 49.6 percent last year. A significantly higher percent of companies this year said cargo theft occurs mostly en route from the distribution center to the store (68.1 percent vs. 57.4 percent last year). Four in 10 (43.5 percent) say these incidents also occur en route from manufacturer to distribution center and 15.9 percent say they happen at the distribution center.

The survey also indicates a growing trend in the level of violence retailers see when organized criminal gangs are apprehended (15 percent of incidents vs. 13 percent in 2011). Retailers grappling with these violent acts also report that they believe more ORC offenders are engaged in drug activity. Nearly half (49 percent) of respondents estimate drugs and drug activity are linked to organized retail crime incidents.

When asked what new trends in organized retail crime they have noticed in the past year, retailers cited familiar issues involving the economy, returned stolen merchandise, gift card fraud, and increases in violent activity upon apprehension. However, new to the list of trends this year were specific references to 1.) digital receipt fraud; 2.) increased smash and grab incidents; and 3.) collusion with street gangs.

“Though retailers continue to make great strides in their fight against organized retail crime, sophisticated criminals with unending opportunities and anonymous outlets to sell their stolen merchandise are proving to be quite challenging for both retailers and law enforcement agencies working to combat this issue,” said NRF Senior Asset Protection Advisor Joe LaRocca. “With the types of organized retail crimes changing in severity and scope every day, and cargo theft and violent instances becoming more troubling, retailers are constantly on high alert.”

Baltimore and Orange County, CA, added to top 10 cities for organized retail crime

Organized retail crime gangs still wreak the most havoc in the same parts of the country, but a few new additions give credence to the growing problem retailers are reporting in this year’s survey. The top 10 locations in the United States that retailers say have the most criminal activity are (in alphabetical order):

• Atlanta
• Baltimore/Washington DC
• Chicago
• Dallas
• Houston, TX
• Los Angeles/Orange County, CA
• New York
• Miami
• Phoenix, AZ
• San Francisco/Oakland, CA

Federal legislation still needed to combat growing problem

For years, retailers and other vested parties have worked together to tackle organized retail crime. These partnerships include regional groups and associations who host meetings to share intelligence and work with local, state and federal law enforcement agencies. Even with the success of these partnerships organized retail crime remains a Federal issue because it crosses state lines. NRF strongly believes that organized retail crime must be addressed through Federal legislation, by amending the Federal Criminal Code to effectively address the organized and serious nature of this issue and, be properly defined as a federal crime with appropriate sentencing guidelines as well as providing Federal law enforcement the resources needed to combat this crime.

Featured

  • Progressing in Capabilities

    Progressing in Capabilities

    Hazardous areas within industries like oil and gas, manufacturing, agriculture and the like, have long-sought reliable video surveillance cameras and equipment that can operate safely in these harsh and unpredictable environments. Read Now

  • A Comprehensive Nationwide Solution

    A Comprehensive Nationwide Solution

    Across the United States, manufacturing facilities, distribution centers, truck yards, parking lots and car dealerships all have a common concern. They are targets for catalytic converters. In nearly every region, cases of catalytic converter thefts have skyrocketed. Read Now

  • Planning for Your Perimeter

    Planning for Your Perimeter

    The perimeter is an organization’s first line of defense and a critical element of any security and surveillance program. Even if a building’s interior or exterior security is strong, without a solid perimeter surveillance approach any company or business is vulnerable. Read Now

  • The Key Issue

    The Key Issue

    It is February 2014. A woman is getting ready in her room on a cruise ship when she hears a knock on the door; it is a crewmember delivering breakfast. She is not presentable so she tells him to leave it by the door. Read Now

Featured Cybersecurity

New Products

  • Tyco Kantech EntraPass security management software

    Tyco Kantech EntraPass security management software

    Johnson Controls, the global leader in smart, healthy and sustainable buildings, and architect of the Open Blue digital connected platforms, has released the newest version of the Tyco Kantech EntraPass security management software. 3

  • SecureAuth

    SecureAuth

    The acceleration of digital transformation initiatives as a result of COVID-19 has created a lasting impact on how businesses empower their workforce and engage customers. 3

  • 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