Who is Behind Organized Retail Crime?
Organized retail crime (ORC) is a serious problem affecting retailers worldwide. It is a type of crime that involves the collaboration of individuals or groups to steal large quantities of merchandise from retailers with the intention of selling it online or at flea markets. The thieves often use sophisticated methods and tactics to evade detection, causing significant financial losses to retailers.
Who are the culprits?
There is no one-size-fits-all answer to this question, as organized retail crime can be perpetrated by individuals or groups from various backgrounds. However, based on investigations and statistics, it is clear that a significant proportion of ORC cases involve members of criminal organizations. These criminal organizations often operate with sophisticated structures, employing recruiters, lookouts, and other roles to execute the heists.
• Outlaw motorcycle gangs (OMGs): OMGs, such as the Hells Angels and the Bandidos, have been linked to a significant number of ORC cases. These groups have the resources and networks to plan and execute large-scale thefts.
• Latin American gangs: In some regions, Latin American gangs have been involved in ORC, often working with other criminal organizations or operating independently.
• Drug traffickers: Some drug traffickers have been known to diversify their criminal activities into ORC, using their existing networks and resources to facilitate thefts.
• Career criminals: A significant number of ORC cases involve career criminals who have been involved in other types of theft or fraud, but have turned to organized retail crime due to the profitability and relatively low risk involved.
• Employees and former employees: Sadly, some retailers have found that their own employees or former employees are behind ORC cases. This is often due to disgruntlement, revenge, or financial difficulties.
• Street gangs: Various street gangs, such as MS-13 and other smaller, local groups, have been involved in ORC cases, often using violence to intimidate and deter law enforcement.
Modus Operandi
Criminal organizations involved in ORC typically employ a variety of tactics to carry out their thefts. Some common methods include:
- Gift card fraud: Thieves steal gift cards from stores and then resell them online or trade them for cash.
- Receipt fraud: Thieves steal receipts from customers, use them to fraudulently return stolen items, and then sell the items online.
- Inventory diversions: Criminals take advantage of confusion during stock transfers or warehouse inventory audits to steal goods.
- Cashroom fraud: Thieves infiltrate retailers’ cash handling systems to steal cash, checks, or credit card information.
Statistics
The scale of organized retail crime is staggering. In the United States alone:
- $30.7 billion: The annual estimated financial loss due to ORC, according to the National Retail Federation.
- 1 in 5 retail businesses: An estimated 20% of retailers in the United States have reported being a victim of ORC.
- 44%: The percentage of ORC cases involving gangs or organized groups.
Consequences and Prevention
The consequences of ORC can be devastating for retailers, including:
- Financial losses: Significant losses due to theft and fraudulent activities.
- Deteriorated customer relationships: When retailers fail to protect their customers’ data or are involved in scams, customers lose trust and loyalty.
- Loss of revenue and profitability: Ongoing ORC can force retailers to implement costly security measures, potentially leading to reduced revenue and profitability.
To prevent and combat ORC, retailers and law enforcement agencies have implemented various strategies, including:
- Enhanced security measures: Installing CCTV cameras, alarms, and access controls to deter and detect theft.
- Intelligence gathering: Gathering and sharing information about known criminal organizations and individuals to prevent and disrupt ORC activities.
- Community policing: Building relationships with local law enforcement and sharing information to prevent and address ORC.
- Legislation and enforcement: Strengthening laws and increasing enforcement efforts to address ORC and hold criminals accountable.
- Educating employees: Training employees to recognize and report suspicious activities and behaviors.
Conclusion
Organized retail crime is a serious problem that requires a concerted effort from retailers, law enforcement agencies, and communities to prevent and combat. By understanding who is behind ORC, the methods they employ, and the consequences of these crimes, we can take effective measures to protect ourselves and prevent the financial and reputational damage caused by ORC.
