March 26, 2018

NRF PROTECT 2018

NRF PROTECT 2018, the National Retail Federation’s annual loss prevention conference and EXPO, will be at the Gaylord Texan Resort in Dallas, Texas on June 11 -13. This is a great opportunity for TRA members to attend the nation’s largest retail and restaurant loss prevention event. It features:

  • A jam-packed agenda with 2 ½ days of educational sessions on reducing shrink, crisis management, ORC, leadership, emerging technologies, preventing cybercrime and more.
  • Presenters from top brands including The Container Store, Macy’s, The Home Depot, Giant Food, Office Depot, The Kroger Co., JCPenney, GAP Inc., Carter’s and Ascena Retail Group.
  • Networking opportunities with industry professionals at happy hours and events, including the Women in LP Luncheon and NRF ORC/Investigators’ Network Breakfast Meeting.
  • An extensive EXPO Hall with 200+ exhibitors offering loss prevention, security and safety solutions across 50+ categories including fraud detection, internal theft and video surveillance.
  • Public-private partnership building opportunities at the NRF Fusion Center, where dozens of local, state and federal law enforcement agencies, mall security and Organized Retail Crime Associations (ORCAs) gather to meet with retailers.

Retailers, register by April 6th to save big! TRA members receive the discounted NRF retail member rate. Register here.

A free EXPO pass is available for retailers and law enforcement professionals. The EXPO Pass includes 2-day admission to the EXPO Hall and the NRF Fusion Center, two free lunches, the opening reception and exhibitor-led educational sessions.

January 19, 2018

TRA Plastic Container Theft Task Force Shuts Down Another Illegal Grinder

In October, our Plastic Crate Task Force Investigator got a tip from one of the member company employees that they saw a pick up loaded with plastic containers being delivered to what looked like a recycling location. Our Investigator placed the location under surveillance and over the next month or so collected pictures and video of folks dropping plastic containers in on a daily basis. He contacted the Houston Police Department and they confirmed Hunter’s suspicions and developed a plan to send in an undercover informant to sell plastic for recycling to the firm.

Our investigator looked up the license plate to get an address for the truck, then placing that address under surveillance until it went out again. Over the next couple of weeks, he followed the truck as it stole various plastic containers from behind retail stores and then made delivery to this location located in East Houston. It was a recycling business buying plastic bags, plastic containers, plastic pallets, plastic trash cans, plastic chairs, etc. Biggest part of the business was the illegal purchase of plastic containers used in the retail industry to move merchandise/products.

Houston Police Department (HPD) along with our Task Force Investigator conducted a sting at this recycler about mid-day and after HPD arrested three persons at the location and designated it a Crime Scene, we were able to get several of our Task Force and Member companies to get tractor trailers to the location that afternoon, evening and into early the next morning to take back their property. HPD Officers, TRA Member Companies, and Task Force Representatives loaded nine 18-wheelers and one large box truck with 22,162 baskets, trays, pallets, and totes at a replacement value of $130,891.14.

The TRA Plastic Container Theft Task Force is unique and the only one we are aware of in the country to try and address the theft of plastic containers used to move products to retailers from manufacturer/distributors. If you would like more information regarding the Task Force, click here to read more about this big problem in our industry.

June 7, 2016

Stop Theft of Plastic Products Initiative (S.T.O.P.P.)

In 2013, a small group of Texas Retailers Association members came together with a common problem:

Their businesses were targets of a widespread crime spree (theft of plastic containers/pallets) that spanned the entire city of Houston, Texas. The increasing frequency and the amount of containers/pallets of these crimes was a cause for alarm. However, it was hard to prove, as there was no real way of tracking a seemingly “disposable” asset.

Plastic Containers (milk crates, bread trays, soda totes, pallets) used to distribute multiple products to grocery stores, are commonly considered “disposable”, likened to plastic bottles, plastic shopping bags and other similar items, they are convenient for storage and transport, but they do not get considered “valuable” or associated with a monetary sum. The fact is, any ordinary citizen, and even the average police officer could witness these items being stolen and not realize a crime is being committed!

Many businesses receive products in plastic containers, usually in the form of crates and pallets, and often leave these outside for the next pickup from the distributor. Thieves have zeroed in on this norm and turned it into a multi-million-dollar annual operation. In Houston region alone, it is estimated to exceed ten million dollars annually. Stealing and shredding plastic shipping containers from local businesses was a highly profitable operation. Those stolen pallets were shredded into plastic chips, which were then bagged and sold as raw plastic material.

In an attempt to cut down on these losses, distributors have begun to label their plastic containers with a “Property of” and warning label, but that didn’t prove to deter thieves from continuing those operations. The thieves realized if those containers/pallets were ground up into plastic chips, they become harder to identify. After ground into chips, a laboratory is needed to identify plastic equipment based on a blend of components that the manufacturer used to develop their unique container. In addition, retailers have begun securing the plastic containers, but occasionally the plastic containers are still accessible due to a combination of increased sales or lack of space in the store and are then generally stored behind the store until they are picked up by the distributors on their next visit to the stores. Until the problem was realized, industry didn’t track inventory of plastic containers very accurately until the demand for replacement of the stolen of plastic containers/pallets outpaced the growth rates of the products by large margins.

Industry is now in addition to clearly marking each container with ownership information, in many cases citing the penalty for theft and is in process of pacing signage behind stores clearly indicating this is private property and offenders will be prosecuted for theft for taking any type of plastic containers, totes, or pallets. You also have some manufacturers placing metal rods in the containers/pallets to shut down the grinders and some even use GPS devices to track containers/pallets.

Texas Plastic Container Theft Task Force

Texas Retailers Association has launched the Operation S.T.O.P.P. initiative in the City of Houston in response to the overwhelming plastic container losses our member retailers report each year.

These thefts affect profit margins that in turn are costs offset by the consumer. Therefore, the cost of goods increases but not labor, so where does all that money go? It goes into REPLACING the stolen crates, trays, baskets, totes, pallets….

Below, listen to The Texas Standard’s interview with our private investigator, Hunter Cox, about the work he’s done to help address the issue in the Houston area.

May 7, 2016

ORC | Loss Prevention

Organized Retail Crime (ORC) refers to professional shoplifting, cargo theft, retail crime rings and other organized crime occurring in retail environments. ORC crimes cost retailers close to $37 billion a year.

Shoplifting

In 2015, shoplifting accounted for 38% of retail inventory loss, according to a joint survey by the National Retail Federation and the University of Florida. That is up 7% from their 2010 survey. This loss cost retailers about $32 billion during that year, according to Fortune .

Items most commonly stolen include clothing, books, music, jewelry, watches, tires and car parts. “Everyone thinks about little Johnny stealing a pack of bubble gum, but there are also professional gangs that target stores and steal billions of dollars every year,” says Joseph LaRocca, an adviser for the National Retail Federation, in the article.

While security cameras can help identify suspects after a theft occurs, there’s plenty a retailer can do to prevent shoplifting from happening in the first place, according to the North Carolina Governor’s Crime Commission and the Specialty Retail Report.

  1. Greet customers as soon as they come into the store. Addressing customers removes their anonymity. Shoplifters are known to avoid stores with attentive salespeople.
  2. Watch for customers who avoid eye contact, seem nervous, wander the store, linger, constantly look at store employees or exhibit other suspicious behavior. Approach shoppers exhibiting suspicious behavior and ask if they need help, instead of walking away from them – that’s often enough to deter potential shoplifters.
  3. Encourage employees to walk around the store, down various aisles, particularly along the walls instead of just down the center.
  4. Maintain a clean and organized store, including racks, shelves and dressing rooms. A disorganized, dirty store tells a shoplifter the employees are not paying attention. Keep shelves and displays low, and install adequate lighting to maintain visibility throughout the store.
  5. Keep commonly stolen items in plain view to discourage shoplifters. Place items that are often targeted in an area in the front of the store, near the cash register or another highly visible area.
  6. Compare notes with your neighbors. Talk with other shop owners about any suspicious behaviors they might have witnessed. Ask employees to keep logs of suspicious behaviors to share with each other as well as with other shop owners.
  7. Hire an adequate number of employees – enough to give customers personal attention. Stagger lunch and break times among employees.
  8. Draft a shoplifting policy and enforce it. Post the policy so employees and customers are aware of it. Offer ongoing training for employees so they understand how to prevent shoplifting or how to handle a situation if it does occur.
  9. Install anti-theft devices including security towers at entrances, security cameras throughout the store, convex mirrors in corners and anti-theft tags on merchandise.
  10. Restrict the use of fitting rooms. Lock dressing rooms, and require customers to see a salesperson before using the room. Post signs in fitting rooms warning against shoplifting.

If you suspect someone may be shoplifting, never accuse him, rather ask if you can help him or ring him up. Keep the person in your sight and contact security or a manager immediately. Never try to stop the shoplifter. If the shoplifter leaves the store, provide security with a detailed description of the person, including his vehicle, if possible. Information gathered from American Alarm.

Cargo Theft

“Although many incidents go unreported, cargo crime in the United States is estimated to cost businesses several billions of dollars per year.” – Chubb Group of Insurance Companies. Here are seven ways that could help you save money and keep your employees safe. For the complete article, click here.

  1. Thoroughly screen prospective employees. Some cargo security experts maintain that a high percentage of cargo thefts involve inside information or complicity.
  2.  Carefully select transportation partners and intermediaries. Remember that these companies have care, custody and control of goods once they leave your premises until they reach their destination.
  3. Establish a security culture within your company. Provide security training for employees, and educate truck drivers in hijack awareness and prevention.
  4. Factor in security when determining shipment routing. Cargo thieves often “case” known shipping points (plants, warehouses and distribution centers) and follow trucks as they depart, waiting for the drivers to stop so that they can pounce on the loads. Drivers should not be allowed to stop in the “red zone” (the first 200 miles/4 hours from their starting point) as well as known hot spots.
  5. Incorporate counter surveillance into the duties of security guards, and have guards patrol away from perimeters.
  6. Take advantage of technology. Vehicle and shipment tracking, vehicle immobilization and advanced, high-technology security seals are now available at lower cost.
  7. Conduct periodic security audits. Operations and personnel change, and criminals are always harvesting fresh ideas and modifying previous techniques.

Five Fraud Fighting Steps

1. Hire the right people. Approximately 44.5 percent of retail losses are attributed to store associates. In some instances, store employees are on the inside signaling to a team of thieves that are non-associated with the brand. As part of the hiring process, retailers need to carefully screen prospective employees – perform background checks combined with interview and careful resume evaluations.

2. Store associates must get training on loss prevention. Employees must know how to correctly tag merchandise and how to deal with situations where they identify in-store theft. Retailers also should educate employees on methods for preventing a loss.

3. Carefully set policies and procedures. Retailers need to define employee expectations. Make sure store associates know how to appropriately audit and double-check paperwork. If discrepancies and errors are identified, retailers must then be able to identify if the employee is stealing or if it is an instance of not following directions and the inability to perform the job. In either scenario, retailers must take corrective action and further investigate the instance.

4. Identify the difference between how to handle amateur shoplifters vs. professional criminals. According to the Federal Bureau of Investigation, organized retail crime accounts for as much as $30 billion in retail losses every year. There is a big difference between the amateur shopper and the professional criminal and different methods on how to handle both. Amateur shoplifters tend to steal for personal gain while professional individuals or organized gangs work to systematically steal large quantities from retailers in stores, warehouses, distribution centers and goods in transit.

5. Secure assets through the use of technology and investigative teams. In-store cameras, Internet-based video systems and software that helps retailers analyze transactions and data are technologies that retailers implement to obtain a real picture of what is happening in the overall operation, at the store level and at the associate level. Retailers also must evaluate the physical security of the building and have systems that effectively track money and merchandise. Investigative teams also are effective in identifying retail fraud and should work closely with the local police department to identify stolen property.

Source: RIS News

LERPnet

The Law Enforcement Retail Partnership Network (LERPnet) is a secure national database for the reporting of retail theft and serious incidents, which allows retailers to share information with each other and law enforcement. LERPnet was developed as a partnership between the FBI and several national retail associations. Click here to access the LERPnet site.

Texas Crime Prevention Association (TCPA)

Membership in one of nine regional crime prevention associations allows law enforcement and concerned citizens to partner together to prevent crime in their communities through education initiatives and community outreach. Click here for more information on TCPA.

Retail Loss Prevention (LP) and Law Enforcement Rountables

Texas Retailers Association, our member companies and local law enforcement units across the state of Texas work together to host ORC/LP Roundtables to share prevention tips and to discuss current crime trends occurring in stores. These roundtables provide an opportunity for retail LP professionals and law enforcement to network to develop good communications. Click here to view the TRA Event Calendar to find a roundtable near you. If your store or law enforcement unit would like to host a roundtable, please contact Joe Williams at jwilliams@txretailers.org.

Legislation

Two bills were introduced in 2009 to help address retail crime:

The Organized Retail Crime Act of 2009 introduced by Representative Brad Ellsworth (D-Indiana) would amend title 18, United States Code, to combat, deter, and punish individuals and enterprises engaged nationally and internationally in organized crime involving theft and interstate fencing of stolen retail merchandise, and for other purposes.
The Combating Organized Retail Crime Act of 2009 is a bill introduced by Senator Richard Durbin (D-Illinois) to combat organized crime involving the illegal acquisition of retail goods for the purpose of selling those illegally obtained goods through physical and online retail marketplaces.