The Bunker Blog

Loss Prevention Is Not Sales Prevention

Browsing Posts tagged organized retail crime

Jorge Severino, 53, and his son, Luis, 22, were charged with receiving stolen property over $250, pirating, possession for sale of unstamped cigarettes after police recovered over $50,000 worth of stolen merchandise that was being fenced out of Hancock Seafood Market at 260 Hancock Street and in an apartment upstairs at 262 Hancock St in Springfield, MA. Police recovered merchandise from CVS, Wal-Mart, Kohl’s, Ocean State Job Lot, Rite Aide, Cumberland Farms and Walgreens was recovered in the bust.

Police also discovered a large scale DVD pirating operation in the upstairs apartment, recovering over 300 pirated copies of new release DVD movies.

According to Masslive.com, CVS loss prevention worked with Springfield Police Detectives for almost a year to bust this group. More arrests are expected in the case.

I say, “Great Job” to the LP and Police involved in this case. It is my belief that this is much more common that what is reported in the news. Unfortunately, it is sometimes difficult to get police or corporate support for investigations of this scale.

Anybody have further details on this case? Want to discuss it? Have a similar story? Please add your comments below.

Source: Masslive.com

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Justin Giordano, of Harrisonburg, VA, was arrested on December 22rd after shoplifting a large amount of merchandise from a local Barnes and Noble and then running from loss prevention. On January 5th, Giordano was additionally charged with two counts of grand larceny, one count of obtaining money by false pretenses and five counts of larceny or theft.

A female suspect, 20-year-old Brittaney Strausbaugh was charged with receiving stolen goods in connection with Giordano’s theft activities.

Police have verified at least $12,000.00 in thefts by Giordano since July 2009, but he claims the amount is much more than that. Giordano claims to have stolen close to $230,000.00 from local retailers such as Barnes And Noble, Walmart, Ross, TJ Maxx, Kohl’s, and others. Police say he sold or pawned the stolen merchandise, and they are continuing the investigation.

I bet Justin’s estimate is closer to fact than what the police have verified. How about you?

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As I was doing my usual daily search of the web for all things LP related, I came across several interesting stories today. As I read and made my notes, I realized that there was a very clear theme to what I was seeing. In case you didn’t know it, Loss Prevention is a dangerous job. I am pretty sure that everybody I know in the loss prevention industry who has ever worked in a retail store has at least one “close call” story. We have all had those apprehensions that went bad; where we were either threatened or even injured by a shoplifter who decided to fight.

Most times, the shoplifter who fights is just trying to get away, and it all begins with a simple threat, showing a weapon, or maybe a push. But today in a Colorado Springs Walmart, we got reminded that some shoplifters carry firearms, and sometimes those firearms get used. Thank goodness nobody got hurt. Police are searching for the two suspects in that case.

Then in Oshawa, Ontario, at another Walmart, a shoplifter broke away from LP in the parking lot and jumped into a waiting vehicle, driven by a second suspect. The two then led police on a high speed chase that was stopped by police for safety reasons. The two suspects were both arrested a short time later in an apartment complex nearby.

In Atlanta, GA, a bold shoplifter has been blatantly stealing from a local Target. On one occasion when he was approached by loss prevention personnel, he pulled out an ASP baton and threatened LP. He then proceeded to take the merchandise and leave in a vehicle.

These are just a few examples of what shoplifters are capable of. We’ve written here many times about shoplifters who have used violence to escape and have injured store employees or loss prevention personnel. The question comes to mind whether it is a growing problem. I think it may be, but I wonder if the current economy or maybe the general impression of the state of the economy is driving people to justify stealing as a means to support themselves.

I mean, when a 62-year-old woman from West Linn, Oregon can net $215,000.00 in 2 years stealing high end merchandise and selling it on eBay, there is obviously a financial incentive to steal. When this incentive outweighs the risk, people will be more likely to take the chance.

So what are your thoughts? Do you think these incidents are the exception to the rule? Or, is this just another day in the life of the LP Professional? Comments below, please.

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The NRF released their Organized Retail Crime Survey yesterday, and the results are interesting. Here are some of the highlights:

  • Nine out of ten retailers (92%) report that their companies were victims of organized retail crime during the past year, up eight percent from 2008.
  • Nearly three-fourths (73%) of retailers also reported the level of organized retail crime activity has increased over the past 12 months, an increase of 11 percent from 2008.
  • 42% of retailers say their company is allocating additional resources to address organized retail crime.
  • Nearly half (49%) of respondents believe senior management in their company understands the seriousness of the issue.

In addition, according to NRF’s Press Release, “Thanks to the new partnerships formed with Federal and local law enforcement officials, retailers have had some success identifying stolen merchandise or gift cards at physical fence locations such as pawn shops and temporary stores (60%) and through online e-fencing operations (60%), where stolen merchandise is sold through online auction sites.”

Organized retail crime can be devastating to a retailer because the losses caused by these groups to a market area can be huge. Does anyone have any great success (or failure) stories they’d like to share? Are you seeing the effects of ORC first hand? If so, is it as bad as it is being reported to be?

Check out the findings first hand by visiting the links above, then come back and let’s talk about it…

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Here’s an interesting story and video out of Las Vegas. Police recovered 2000 bottles of shampoo from this ring of thieves, who were stealing and then selling at swap meets, flea markets, and online.

Police there are considering charging shoplifters with burglary because, according to police, the shoplifters enter the establishment with the intent to commit a larceny. According to the police source, that’s burglary in Vegas. Not sure how that’ll stick, though.

We have also seen an increase in employees getting involved in these kinds of cases, and in some cases, even selling the items themselves. It’s happening out there folks, and each of us in the business is affected by these people in one way or another.

Organized Retail Crime is real, and it is having a negative impact on retail shrink. Some are being affected more than others. Anybody want to share an experience with ORC? Leave a comment.

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