Organized retail crime (ORC) has been a serious concern for retailers for many years—but the problem isn’t going away. Recent data from the National Retail Federation puts the loss from ORC in 2017 at over $726,351 per $1 billion in sales, a significant increase over 2016. But what’s causing the Read More
Tag: organized retail crime
Organized retail crime (ORC) deals with professional shoplifters, crime networks, cargo theft, Internet crimes, and other organized criminal activities that occur in the retail setting. These highly organized, often mobile, and sometimes complex structures and hierarchies provide a tremendous threat to the retail industry.
ORC involves the association of two or more persons engaged in illegally obtaining retail merchandise through both theft and fraud as part of an unlawful commercial enterprise. The primary objective of these professional crime rings is to target retailers across a geographical area or cyber network, stealing from these organizations for the purpose of turning products into financial gain, rather than for personal use.
ORC groups are commonly involved in sophisticated, well-planned shoplifting incidents, check and credit card schemes, manufacturing fraudulent receipts or price tickets, gift card scams, cargo theft incidents (where goods are stolen or hijacked during transit), and a host of other organized theft events. These criminal activities have become a nationwide problem occurring at an increasing scale, costing retail companies and consumers billions of dollars every year.
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The dramatic growth of organized retail crime and the unfettered resale of stolen and fraudulently obtained goods have caused significant concerns throughout the retail industry, and to the global economy as a whole. In addition to the tremendous losses incurred, the illegal income from the expanding theft and resale of stolen retail goods is believed to benefit those engaged in other forms of criminal activity, such as drug trafficking, violent crimes, gang activity, and even terrorism. Working in teams, these groups can move from store to store, and even city to city, wreaking havoc on the retail industry.
Many retailers have countered the ORC problem by adding organized retail crime investigators and task forces to their loss prevention program. ORC investigators will track the movement and patterns of the professional ORC groups, developing intelligence that can be given to law enforcement agencies. Investigations tend to focus on where the stolen items are going, as opposed to simply apprehending the store-level shoplifter. Investigators will work with multiple law enforcement jurisdictions or agencies in their attempts to shut down the entire criminal enterprise.
Retail loss prevention professionals know that organized retail crime (ORC) is a threat not to be taken lightly. But statistics are showing aggressive offenders are on the rise. How are you keeping your store teams safe? Read More
Professional advancement and building a successful loss prevention career can mean many things to many different people. For some individuals, it may mean reaching a top leadership position at a particular company, perhaps serving as a director or vice president of loss prevention/asset protection. For others, it may involve gaining Read More
The increase in organized retail crime (ORC) activity has prompted many retailers to invest in tools and technologies to protect their merchandise. Partnerships between the private sector and public law enforcement professionals also help to improve security. But one useful tool is often overlooked in the fight against ORC: the Read More
Curt Crum is a CID special services manager for the Boise Police Department, where he has spent his entire career. Crum also serves as the president of the board for the Coalition of Law Enforcement and Retail (CLEAR), a nonprofit association emphasizing partnerships among public and private-sector members with the Read More
According to the 2016 National Retail Security Survey, US businesses lost around $45.2 billion in 2015 to retail theft, more than 1.38 percent of overall sales, making retail theft one of the leading issues facing retailers today.
Shoplifting and ORC Fraud Rings
According to the National Association of Shoplifting Prevention (2006), more Read More