NRF Report Shows Organized Retail Crime a Growing Threat for Retailers

NRF Report Shows Organized Retail Crime a Growing Threat for Retailers

Organized retail crime (ORC) is a perpetual and burgeoning problem for the U.S. retail industry, and evidence suggests it is growing in both scope and complexity, according to a new report released today by the National Retail Federation. The report, Organized Retail Crime: An Assessment of a Persistent and Growing Threat, was conducted in partnership with K2 Integrity, a global risk advisory firm.

“Organized retail crime has been a major concern for the retail industry for decades, endangering store employees and customers, disrupting store operations and inflicting billions in financial loss for retailers and the communities they serve,” said NRF President and CEO Matthew Shay. “These concerns have grown in recent years, as criminal groups have become more brazen and violent in their tactics and are using new channels to resell stolen goods. NRF and its members have been forcefully advocating for the ‘Combating Organized Retail Crime Act’ in Congress because it’s time for decisive action, not just platitudes and endless debate.”

The comprehensive report provides a detailed assessment of U.S.-based ORC groups, their tactics and techniques for theft and resale and their linkages with other types of organized crime. The report also identifies critical gaps in the current understanding of ORC.

Key findings in the report include:

  • ORC groups largely target everyday consumer goods — which offer a favorable balance between ease of theft, monetary value and ease of resale. Only 11% of the ORC groups examined in the report targeted luxury goods.
  • The median ORC fencing operation handled about $250,000 in stolen merchandise prior to being apprehended by law enforcement.
  • ORC fencing operations rely on online marketplaces as one resale channel. About 45% of ORC groups for which fencing information was available used online marketplaces for resale operations.
  • ORC fences that conduct online resale operations appear to be shifting away from third-party online sellers and toward peer-to-peer websites that facilitate direct engagement among buyers and sellers.
  • ORC groups rely on advance planning to ensure the success of their theft operations.
  • There are significant deficiencies in the availability of consistent and consolidated data regarding ORC across national, state and local authorities, as well as the retail industry.

“Organized retail crime is growing as a real threat to the safety, operations and bottom line of retailers across the nation and now forms a part of the criminal and illicit financing landscape,” said Juan Zarate, global co-managing partner and chief strategy officer at K2 Integrity. “The ORC industry will grow more dangerous, complex and profitable, and its illicit proceeds will fuel more organized criminal networks and operations in the United States, globally and virtually, if more concerted action is not taken to disrupt these trends. We are proud of the role we played in developing an assessment of ORC and look forward to our continued partnership with NRF.”

NRF commissioned K2 Integrity in 2022 to provide an assessment of ORC and provide information on its threats and trends. Over the past year, the K2 Integrity team interviewed dozens of retail security and law enforcement professionals, examined the details of more than 130 ORC cases and conducted research on court cases, industry reports and media reports on ORC spanning the previous decade.

Click here to view the full report.

Featured

  • Secure Your Home During the Holidays

    The most wonderful time of the year can easily transform into a nightmare. Being vigilant, while still enjoying the holiday season, is possible. The holiday season is the perfect time to start implementing security measures to protect one’s home and ensure security while out and about. Read Now

  • Five Cybersecurity Trends Predictions for 2024

    According to Cybersixgill, threat research experts, AI’s evolution will continually improve both organizations’ cyber defense efforts and cybercriminal activities. At the same time, increasingly complex regulatory requirements, continued consolidation of cybersecurity tools, a widening attack surface, and heightened global geopolitical issues will all play a significant role in driving the direction of cybersecurity. Read Now

  • AI on the Edge

    Discussions about the merits (or misgivings) around AI (artificial intelligence) are everywhere. In fact, you’d be hard-pressed to find an article or product literature without mention of it in our industry. If you’re not using AI by now in some capacity, congratulations may be in order since most people are using it in some form daily even without realizing it. Read Now

  • NSA Report Focuses on How to Protect Against Evolving Phishing Attacks

    The National Security Agency (NSA) and U.S. partners have released a new report describing the latest techniques in phishing attacks and the defenses organizations can deploy against them. Read Now

Featured Cybersecurity

New Products

  • FEP GameChanger

    FEP GameChanger

    Paige Datacom Solutions Introduces Important and Innovative Cabling Products GameChanger Cable, a proven and patented solution that significantly exceeds the reach of traditional category cable will now have a FEP/FEP construction. 3

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings. 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