When you think of retail crime, a shoplifter smuggling expensive goods under an oversized hoodie might come to mind. Although smuggling is a common form of theft, organized retail crime (ORC) is a much larger threat that poses more expensive consequences. Studies show a significant increase in ORC in recent years, and the measures groups take to carry out these organized attacks are becoming more creative and difficult to prevent.
Common organized retail crime methods
Flash robbery (also known as a smash and grab attack) is when a group of people—often a gang—coordinates an attack against a business. According to a recent NRF report, almost two-thirds of brick-and-mortar retailers have seen an increase in organized crime activity in their locations in the form of shoplifting gangs.
During a flash robbery, a group of people shows up at a planned location, grabs as much merchandise as possible, and runs. Flash robbery group sizes vary greatly, ranging anywhere from 5 to 100 people. Large groups can be especially problematic for store owners and security teams; it’s nearly impossible to stop and detain 100 people when an attack occurs.
Have you ever been annoyed by a strict return policy? You purchase something but the item doesn't work out, so you bring it back to the store, only to realize you don't have the receipt or the card you used to purchase the item. The clerk says you're out of luck, and you're stuck with an item you’ll never use. It’s so inconvenient, right? Chances are, the strict return policy exists because the store is trying to prevent return fraud, a common form of ORC. In 2020, fraudulent returns cost retailers $25.3 billion, according to the National Retail Federation.
There are many different types of return fraud. A few common methods include:
- Receipt fraud: utilizing stolen receipts to return merchandise for profit.
- Price switching: replacing original labels with higher-priced labels and returning merchandise for a profit.
- Returning stolen merchandise: shoplifting an item and returning it for profit.
- Bricking: purchasing a working electronic device, purposefully damaging it or removing valuable parts, and returning the item for profit.
Modern-day supply chain logistics are mind-blowingly complex—there are so many moving parts that work together to ensure the safe and timely delivery of goods. Unfortunately, there are also many ways that those working parts can be disturbed. Cargo theft is when criminals steal merchandise during its journey from the point of origin to the final retail destination.
There are a variety of ways that criminals perform cargo theft. A few well-known approaches include:
- Fictitious pickups: criminals present themselves as drivers with counterfeit paperwork and drive off with loaded vehicles.
- Coerced stops: a loaded truck is stopped and robbed during transit.
- Terminal robberies: an organized group ambushes a trucking facility and hijacks loaded vehicles.
- Leakage: criminals smuggle small amounts of goods from shipments—so small that businesses do not notice the missing merchandise.
While cargo theft requires a lot of planning and precise execution, the pay-off is high. According to an annual report conducted by Sensitech, the average value of a cargo theft attack in 2020 was $166,854. On top of that, there was a 23% increase in cargo theft from 2019 to 2020.
The good news
In a world where crime is more common and criminals are more creative than ever before, it is becoming increasingly crucial for retail shop owners to implement rigorous surveillance measures. The good news is that as ORC continues to evolve, so does the security industry. Contact the LiveView Technologies team today if you are ready for customizable, innovative security solutions that will grow with you and keep you, your employees, and your merchandise safe.