Get Our Email Newsletter

Retailers That Buy from Diverters Are Fueling External Theft

Sophisticated criminals involved in ORC know that to turn a profit, they must attempt to supply a demand in the marketplace. But did you know that retailers themselves are the ones providing a significant portion of that demand?

When retail buyers turn first to the supplier advertising the lowest price, they don’t consider the idea that they might be inadvertently purchasing stolen or counterfeit product from a diverter. Diverters are the individuals or groups whose function is to launder stolen product into legitimacy by reselling it to retailers.

[text_ad use_post=’120744′]

- Digital Partner -

Many retailers don’t even realize they’re fueling their own external theft by purchasing stolen product from diverters. This “self-defeating loop” is the topic under investigation in contributing writer Chris Trlica’s feature article in the September-October 2016 issue. From the article:

“Why do diverters exist in the first place? Why does the retail marketplace tolerate an avenue for stolen merchandise to be resold to them? Diverters exist because smaller retailers—local and regional chains—rely on them as suppliers. If you’re a local retail chain with ten stores, you can’t buy directly from the manufacturer because you can’t meet their minimum order requirements. So the diverter will buy from the manufacturer and then resell to you and a dozen similarly sized companies.”

Trlica goes on to take a closer look at the incidence of counterfeit goods in the retail stream, the ways in which diverters guarantee the sale of their stolen goods, and what retailers can do to avoid unknowingly purchasing stolen product. Check out “ORC and Diverters” to read the full article. You can also visit the Table of Contents for the September-October 2016 issue or register for a free subscription to the magazine.

Loss Prevention Magazine updates delivered to your inbox

Get the free daily newsletter read by thousands of loss prevention professionals, security, and retail management from the store level to the c-suite.

What's New

Digital Partners

Become a Digital Partner

Violence in the Workplace

Download this 34-page special report from Loss Prevention Magazine about types and frequency of violent incidents, impacts on employees and customers, effectiveness of tools and training, and much more.


View All | Sponsor a Webinar


View All | Submit a Whitepaper

LP Solutions

View All | Submit Your Content

Loss Prevention Media Logo

Stay up-to-date with our free email newsletter

The trusted newsletter for loss prevention professionals, security and retail management. Get the latest news, best practices, technology updates, management tips, career opportunities and more.

No, thank you.

View our privacy policy.