Organized Retail Crime (ORC) refers to professional shoplifting, cargo theft, retail crime rings and other organized crime occurring in retail environments. ORC crimes cost retailers close to $37 billion a year.

ALERT:  False Receipts - Retailers should be aware of a website (http://www.falseexpense.com/ ) 
              offering to create fake store receipts.

             Counterfeit $100 bills on bleached $5 paper in Texas. Click here for more info. 
             Counterfeit $50 bills on bleached $5 paper in Texas. Click here for more info.
 

ORC in the Media:

Nightline Video on Retail Crime

1. Designer Clothing
2. Benadryl
3. Crest Whitestrips
4. Prilosec
5. Gift Cards
6. Electronics
7. Similac Infant Formula

Source: 2008 NRF ORC Survey

Prevention

Five Fraud Fighting Steps

1. Hire the right people. Approximately 44.5 percent of retail losses are attributed to store associates. In some instances, store employees are on the inside signaling to a team of thieves that are non-associated with the brand. As part of the hiring process, retailers need to carefully screen prospective employees - perform background checks combined with interview and careful resume evaluations.

2. Store associates must get training on loss prevention. Employees must know how to correctly tag merchandise and how to deal with situations where they identify in-store theft. Retailers also should educate employees on methods for preventing a loss.

3. Carefully set policies and procedures. Retailers need to define employee expectations. Make sure store associates know how to appropriately audit and double-check paperwork. If discrepancies and errors are identified, retailers must then be able to identify if the employee is stealing or if it is an instance of not following directions and the inability to perform the job. In either scenario, retailers must take corrective action and further investigate the instance.

4. Identify the difference between how to handle amateur shoplifters vs. professional criminals. According to the Federal Bureau of Investigation, organized retail crime accounts for as much as $30 billion in retail losses every year. There is a big difference between the amateur shopper and the professional criminal and different methods on how to handle both. Amateur shoplifters tend to steal for personal gain while professional individuals or organized gangs work to systematically steal large quantities from retailers in stores, warehouses, distribution centers and goods in transit.

5. Secure assets through the use of technology and investigative teams. In-store cameras, Internet-based video systems and software that helps retailers analyze transactions and data are technologies that retailers implement to obtain a real picture of what is happening in the overall operation, at the store level and at the associate level. Retailers also must evaluate the physical security of the building and have systems that effectively track money and merchandise. Investigative teams also are effective in identifying retail fraud and should work closely with the local police department to identify stolen property.

Source: RIS News

LERPnet

The Law Enforcement Retail Partnership Network (LERPnet) is a secure national database for the reporting of retail theft and serious incidents, which allows retailers to share information with each other and law enforcement. LERPnet was developed as a partnership between the FBI and several national retail associations. Click here to access the LERPnet site.

Texas Crime Prevention Association (TCPA)

Membership in one of nine regional crime prevention associations allows law enforcement and concerned citizens to partner together to prevent crime in their communities through education initiatives and community outreach. Click here for more information on TCPA.

 

 Retail Loss Prevention (LP) and Law Enforcement Rountables

Texas Retailers Association, our member companies and local law enforcement units across the state of Texas work together to host ORC/LP Roundtables to share prevention tips and to discuss current crime trends occurring in stores. These roundtables provide an opportunity for retail LP professionals and law enforcement to network to develop good communications. Click here to view the TRA Event Calendar to find a roundtable near you. If your store or law enforcement unit would like to host a roundtable, please contact Joe Williams at jwilliams@txretailers.org.

 Legislation

The Organized Retail Crime Act of 2009 introduced by Representative Brad Ellsworth (D-Indiana) would amend title 18, United States Code, to combat, deter, and punish individuals and enterprises engaged nationally and internationally in organized crime involving theft and interstate fencing of stolen retail merchandise, and for other purposes.



The Combating Organized Retail Crime Act of 2009 is a bill introduced by Senator Richard Durbin (D-Illinois) to combat organized crime involving the illegal acquisition of retail goods for the purpose of selling those illegally obtained goods through physical and online retail marketplaces.