Organized Retail Crime (ORC) is a rapidly growing threat to the retail sector, with losses from theft, fraud, and fencing operations surpassing billions of dollars annually. These well-organized networks exploit weaknesses in retail systems, targeting high-value merchandise for resale through both physical and digital black markets. Unlike traditional shoplifting, ORC is a calculated effort involving repeat offenders, fraudulent transactions, and sophisticated logistics. To counter this challenge, retailers must adopt a multi-faceted approach that leverages advanced technology, fosters collaboration, and trains employees in actionable intelligence-gathering tactics.
Harnessing Technology in the Fight Against ORC
Retailers today have access to a wide array of technologies designed to identify, deter, and prevent ORC activities. These tools not only improve operational efficiency but also provide actionable insights into criminal behavior.
Recommended Tools and Technologies
- Surveillance Systems with AI Capabilities: Modern surveillance cameras integrated with AI-powered analytics can detect suspicious behaviors such as loitering, unusual group movements, or tampering with merchandise. For example, systems like Avigilon and BriefCam offer real-time alerts based on behavioral analytics.
- RFID Inventory Management: Radio Frequency Identification (RFID) tags, used in conjunction with systems like Zebra Technologies’ RFID Solutions, enable retailers to track inventory at every stage. Missing or tampered items can trigger instant alerts, reducing response times and providing data for investigations.
- Point-of-Sale (POS) Fraud Detection Software: Tools like Oracle Retail XBRi Loss Prevention and ClearSale can analyze transaction patterns to detect fraudulent activity, such as the repeated purchase of gift cards with stolen credit cards—a common ORC tactic.
- Retail Communication Platforms: Secure platforms such as the Auror Retail Crime Intelligence Platform or Retailers Against Crime (RAC) network allow businesses to share suspect profiles, vehicle descriptions, and crime trends in real time. These systems foster collaboration and reduce the likelihood of repeat incidents.
- Online Monitoring Tools: With a significant portion of stolen goods resold online, tools like Profitect and LinkSquare can monitor e-commerce platforms and track suspicious listings, enabling retailers to identify and report stolen merchandise.
Enhancing Awareness Through Civil Intelligence Gathering
Even with the best technology, human vigilance remains crucial in combating ORC. Retail loss prevention associates (LPAs) must develop skills to observe, document, and report suspicious activities effectively. Civil intelligence gathering is a set of non-confrontational techniques that empowers LPAs to gather actionable information while maintaining a safe and professional approach.
Basic Intelligence-Gathering Tactics
- Behavioral Observation: LPAs should focus on spotting anomalies in customer behavior. Examples include individuals frequently scanning the store without making purchases, avoiding eye contact with staff, or coordinating with others to distract employees.
- Pattern Recognition: Identifying repeat offenders is key. LPAs should note recurring visits by the same individuals or groups, especially those who move strategically through high-value product areas.
- License Plate Recording: Documenting vehicle details of suspicious individuals, including license plates, make, model, and color, can assist law enforcement in linking crimes across locations.
- Incident Reporting: Detailed reports should include the time, date, suspect descriptions (e.g., height, clothing, distinguishing features), and the behavior observed. Using tools like Incident IQ or custom templates can standardize reporting for better collaboration with law enforcement.
- Monitoring Exit Points: High-risk areas like emergency exits and loading docks should be prioritized for surveillance and patrols. Criminals often exploit these locations to bypass standard checkout processes.
By mastering these tactics, LPAs can collect information that not only aids in immediate loss prevention but also contributes to dismantling ORC networks when shared with law enforcement or fellow retailers.
Uniting Against ORC
Combatting ORC is not a solitary effort. It demands a coordinated response from the retail industry, law enforcement agencies, and community organizations. Collaboration through shared intelligence, joint training sessions, and public-private partnerships is essential to create a unified defense.
For instance, partnerships with local police can lead to the establishment of crime watch programs or rapid response teams for high-priority incidents. Retailers can also organize regional intelligence-sharing sessions to discuss emerging trends, new tactics employed by ORC groups, and successes in mitigation strategies.
By combining cutting-edge technology with practical intelligence-gathering skills and fostering a culture of collaboration, retailers can significantly reduce their vulnerability to ORC. These efforts not only protect assets but also create a safer and more secure shopping environment for employees and customers alike.
Disclaimer: Black Fox Security Group Inc. is an independent entity with no sponsorships, affiliations, or financial ties to the companies mentioned above.