Organized retail crime (ORC) is a growing problem for retailers worldwide. According to the National Retail Federation, ORC costs retailers an average of $719,548 per $1 billion in sales. But what exactly is organized retail crime, and how does it differ from traditional retail fraud? In this article, we’ll explore the definition of organized retail crime, its impact on retailers, and the role of an organized retail crime investigator.
What is Organized Retail Crime?
Organized retail crime is a type of retail fraud in which a group of individuals work together to steal merchandise from retailers and resell it for profit. These groups are often highly organized and use sophisticated methods to commit crimes.
How Does it Differ from Traditional Retail Fraud?
While traditional retail fraud typically involves an individual stealing merchandise for personal use, organized retail crime involves a group of individuals working together to steal merchandise for resale. This distinction is important because it means that organized retail crime is often more complex and difficult to detect and prevent.
Organized retail crime groups often use tactics such as distraction theft, where one member of the group distracts store employees while another steals merchandise, or return fraud, where stolen merchandise is returned for cash or store credit. These groups may also use technology, such as RFID (radio-frequency identification) blocking devices, to bypass security measures.
The Impact of Organized Retail Crime on Retailers
Organized retail crime can significantly impact retailers, both financially and operationally. The loss of merchandise due to ORC can result in decreased profits and increased prices for consumers. It can also increase security costs for retailers as they try to prevent and combat organized retail crime.
In addition, organized retail crime can negatively impact the safety of retail employees and customers. These groups may use violence or other aggressive tactics to carry out their crimes, putting the safety of those in the store at risk.
The Role of an Organized Retail Crime Investigator
Organized retail crime investigators play a crucial role in identifying, preventing, and prosecuting organized retail crime. These professionals are responsible for investigating and gathering evidence related to organized retail crime and working with law enforcement to bring perpetrators to justice.
Investigating Organized Retail Crime
Organized retail crime investigators use various tactics to gather evidence and identify patterns of organized retail crime. These may include reviewing surveillance footage, analyzing transaction data, and conducting interviews with store employees and witnesses.
In addition, organized retail crime investigators may also work with other retailers and law enforcement agencies to share information and identify potential suspects. This collaboration is crucial in identifying and stopping organized retail crime groups.
Preventing Organized Retail Crime
Organized retail crime investigators also play a key role in preventing organized retail crime. By identifying patterns and trends in organized retail crime, these professionals can work with retailers to implement security measures and procedures to deter and prevent these crimes from occurring.
In addition, organized retail crime investigators may also provide training and education to retail employees on how to identify and prevent organized retail crime. This can include teaching employees how to spot potential shoplifters and how to respond in the event of a theft.
Prosecuting Organized Retail Crime
Finally, organized retail crime investigators work closely with law enforcement to prosecute those involved in organized retail crime. This may involve providing evidence and testimony in court, as well as working with prosecutors to build a strong case against the perpetrators.
How to Combat Organized Retail Crime
Retailers can take several steps to combat organized retail crime and protect their merchandise, employees, and customers.
Implement Strong Security Measures
One of the most effective ways to combat organized retail crime is to implement strong security measures in stores. This may include installing surveillance cameras, using RFID technology to track merchandise, and training employees on how to identify and respond to potential theft.
In addition, retailers can also use technology such as facial recognition software to identify known shoplifters and prevent them from entering the store.
Share Information with Other Retailers
Sharing information with other retailers and law enforcement agencies is crucial in identifying and stopping organized retail crime. By working together, retailers can identify patterns and trends in organized retail crime and take proactive measures to prevent it.
Train Employees on How to Identify and Respond to Organized Retail Crime
Employees are often the first line of defense against organized retail crime. By providing training and education on how to identify and respond to potential theft, retailers can empower their employees to take action and prevent organized retail crime from occurring.
Real-World Examples of Organized Retail Crime
In 2019, a group of organized retail crime perpetrators known as the "Felony Lane Gang" was arrested and charged with stealing over $1 million in merchandise from retailers across the United States. The group used stolen identities to make fraudulent purchases and then returned the merchandise for cash or store credit.
In another case, a group of organized retail crime perpetrators known as the "Rainbow Crew" was arrested and charged with stealing over $1 million in merchandise from retailers in the United States and Canada. The group used distraction theft tactics to steal high-end merchandise, which they then resold for profit.
Conclusion
Organized retail crime is a growing problem for retailers around the world. These groups use sophisticated methods to steal merchandise for resale, resulting in significant financial and operational impacts for retailers. Organized retail crime investigators play a crucial role in this effort, working to identify, prevent, and prosecute organized retail crime.
