On September 7th, MSNBC aired a 1-hour documentary entitled “Boosting For Billions” which took a serious look at the growing problem of Organized Retail Theft. The program featured interviews with Jerry Biggs, ORC Division Coordinator at Walgreens, and Tony Heredia, Director, Assets Protection at Target Corporation. Below is an excerpt:
According to the MSNBC investigation, Organized Retail Theft costs retailers up to $40 billion annually, and that number is more than all other property crimes combined; and, it is growing. So, why is this type of crime so popular today? Part of the answer may lie in the fact that, while burglary is a felony in every state, shoplifting is not.
“Burglary is a felony in every state. In every state in the United States, if I go in your garage and take your bicycle, it’s a felony offense. If I go into Walmart in Wisconsin and I take 5 bicycles, each for $100.00, it’s a misdemeanor.” - Jerry Biggs
The potential reward for “boosting” outweighs the risk. Since boosters are not your average, law-abiding citizens anyway, a misdemeanor charge that carries, in all likelihood, a fine, is just not a significant deterrent to their activities.
According to the MSNBC report, there are 3 levels of boosters:
- Level 1 boosters are usually narcotics addicts, sometimes homeless, and shoplift to make their money.
- Level 2 boosters are similar to level 1, but they have transportation, and will travel within their immediate area to steal more.
- Level 3 boosters work in travelling groups and travel a region, filling orders. These are full-time boosters who work from city to city, stealing as much as they can in each location before moving on to the next.
These boosters then sell their wares to “Fences”, who pay them pennies on the dollar for the stolen merchandise, and then re-sell the merchandise at flea markets, in small stores, or online through auction sites like eBay, Craigslist, etc. According to MSNBC, investigators in one city documented as many as 70 transactions between boosters and fences, in the open, in one 2-hour period.
Consumers can help, though. Tony Heredia, Target Corporation’s Director of Assets Protection, says consumers should ask themselves:
“Is it worth me getting a great deal to fund a criminal enterprise? Is it worth me getting a great deal to help people buy guns, buy drugs, or otherwise circumvent legitimate business dealers…”
Estimates are that states lost about $1 billion in tax revenue to Organized Retail Theft last year. That means that, in addition to causing retailers to have to increase their prices to maintain profitability, states also have to make up for their losses. That means taxpayers/consumers take a double hit in the pocket book from this crime.
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