WASHINGTON - If you’re shopping in a store and have your eye on an iPad 2, a new Slap Watch or any other accoutrement, chances are thieves do, too.

“Organized retail crime,” as police call it, has become big business. Last year, theft rings stole an estimated $30 billion worth of retail merchandise that wound up getting sold out of car trunks, online and even to distributors who relay the merchandise back to store shelves.

Shoppers end up bearing the financial brunt, because “it comes back to consumers in the form of higher prices,” said Joseph LaRocca, the National Retail Federation’s senior adviser of asset protection. Households fork over nearly $400 a year to offset retailers’ losses, he said.

The thieves steal what they can sell quickly, targeting popular items such as smartphones and designer bags. But no product is beyond the scope of organized theft rings, law enforcement officials said.

“Electronics, clothes, cookware -- you name it, they take it all,” said David Hill, a detective with the Montgomery County (Md.) Police Department and an authority on organized retail crime.

“These are very structured criminal enterprises that are involved in the international and interstate trafficking of stolen property,” FBI special agent Eric Ives said.

LaRocca said every type of store has fallen victim to this booming industry and every state has suffered the effects.

In a 2011 survey of 125 theft-prevention executives, the retail federation found that almost all respondents -- 95 percent of them -- suffered losses from organized retail crime.

With conventional shoplifting, an individual might steal a few items for personal use.

“Organized retail crime is (at) the other extreme,” LaRocca said, “where you have gangs of individuals, or what we call ‘boosters,’ coming into the store, stealing or fraudulently obtaining thousands of dollars of merchandise at one time and then reselling that merchandise for a profit.”

While the crime is more of a profession, according to Ives, “it requires no special skills or start-up costs.”

Boosters target high-demand products, selling the stolen goods at a discounted price.

“Everything that’s in a store, people can steal,” said Carlos, who was convicted of organized retail crime five years ago in Maryland and whose real name is classified for security reasons.

Hill, the detective, has spent more than a decade investigating organized retail crime and speaking nationally about the issue. He said these heists usually involve at least three participants: one to distract employees, one to bag the merchandise and another, a “mule,” to carry the goods from the store to the vehicle.

“Everyone has a specific job to do and everyone gets paid,” Hill said.

More sophisticated rings use “booster bags” -- purses or bags lined with aluminum foil or duct tape to block electronic sensor tags on merchandise from setting off security alarms. Carlos said booster bags sell in New York for around $100.

But even thieves want to cut their expenses, Carlos said, noting that now “everybody makes their own bags.”

Those who get caught have little to fear, law enforcement and retail officials said. Criminals can get off with a simple misdemeanor charge depending on their jurisdiction, criminal record, and the value of the theft.

“It’s a low-risk, high-profit criminal industry,” Ives said.

Read more: http://www.newsnet5.com/dpp/money/consumer/organized-retail-theft-a-30-billion-a-year-industry-and-growing#ixzz1t4zAyB25

It's really sad. I have conducted quite a few ORC investigations and interviews over the years and most of the time the police don't want to do anything about it other then issue a citation and kick them loose or charge them with a minor Felony which puts them back in the streets in less then a year.

It is the most frusterating part of my job.

I was hoping this had something to do with crime mediated by 'world of warcraft'.

Ummm no. This is a serious issue forcing retailers across the country to close up shop and putting a lot of people out of work.

Taking your job seriously is one thing, but when it "frustrates" you.... that's taking it too personally and can lead to problems like we have seen on MANY occassions!

I despise thieves and liars, and don't fault anyone else who does either, but such "jobs" are just that...a job... a choice of occupation... not to be taken personally without investment involved.

Boosting is bad for everyone because of its adverse affect on the economy, and should (in my honest opinion) carry MUCH harsher penalties (as many REAL issues should!)....but until our rulers address this issue with more sanity, we all continue to suffer.....that's just the reality of it.

Of course I take it personally. I have been stabbed, had a gun pulled on me, been jumped, almost run over, knocked out with a bottle, pepper sprayed and pulled numerous weapons off of suspects over the span of 14 years. It's pretty bad now when your company reccommends you wear a vest just to catch shoplifters.

I also take it personal because every time I shop I am paying outrageous inflated prices because someone wants to make a living off of the suffering of someone else and it bug's the crap out of me. Theft to me rates right up there with crimes like pedophilia and rape.

You chose the occupation you are in, just like a soldier or police officer does. Such a job comes with risks.

Making it personal is WRONG! Taking it seriously, awareness and caution, understandable. Taking it personally creates a clear conflict in judgements and overreaction to an occurance.....as we have seen.

Two wrongs will never make something right!

I agree that this is a serious issue, despite my occasional enjoyment of irreverent comments on serious issues.

I prefer to do the opposite. Buy high demand products before Christmas then sell them for double when they are sold out in stores.

You obviously have no clue. I am extremly successful at my job because I do take it personal. You have no clue about me in anyway shap or form.

My judgement is clear and I am always cool, calm and collect at work even in a crisis. Because I come in here and let loose and blow off steam doesn't mean that is how I am in real life.

ORC is defined as the Theft/Fraud activity conducted with the intent to convert illegally obtained merchandise, cargo, cash, or cash equivalent into financial gain (no personal use), where/when the following elements are present:

• Theft/Fraud is multiples of items
• Theft/Fraud is conducted
– over multiple occurrences
– and/or in multiple stores
– and/or in multiple jurisdictions
– by two or more persons, or an individual acting in dual roles (booster & fence)

Groups, gangs and sometimes individuals are engaged in illegally obtaining retail merchandise through both theft and fraud in substantial quantities as part of a criminal enterprise. These crime rings generally consist of "boosters" - who methodically steal merchandise from retail stores - and fence operators who convert the product to cash or drugs as part of the criminal enterprise. Sophisticated criminals have even found ways to switch UPC bar codes on merchandise so they ring up differently at checkout, commonly called “ticket switching.” Others use stolen or cloned credit cards to obtain merchandise or produce fictitious receipts to return products back to retail stores.

Precise measurements of the true scope of this problem are difficult to determine given the inherently secretive nature of these criminal operators. According to Congressional testimony and industry experts, ORC losses total an estimated $15-30 billion annually.

In many instances, organized retail crime groups target several retailers in one day moving from state to state stealing and reselling merchandise. These groups often steal thousands of dollars worth of merchandise at a time with the intent to resell it for profit, buy drugs or fund terrorist/illicit activities.

http://www.nrf.com/modules.php?name=Pages&sp_id=1464

Organized retail crime involves criminals stealing merchandise who turn around and sell it. The ABC15 Investigators discovered the Valley is a hot spot for this crime.

The National Retail Federation puts Phoenix among the top 10 major cities dealing with organized retail crime.

Michelle Ahlmer, with the Arizona Retailers Association said, “It's not a game. This is a crime.”

Cost To Consumers
Ahlmer said the state loses about $32 million in tax revenue a year.

Thieves never paid sales tax when they took items from the store, and they pocket that sales tax when they return the stolen merchandise for full refunds.

Retailers lose, too. Statewide, stores lose about $325 million a year.

Consumers end up bearing the financial brunt, because “it comes back to [them] in the form of higher prices,” according to Joseph LaRocca, the National Retail Federation’s Senior Adviser of Asset Protection.

Shoppers fork over nearly $400 a year to offset retailers’ losses, he said.

The thieves steal what they can sell quickly, targeting popular items such as smart phones and designer bags. But no product is beyond the scope of organized theft rings, law enforcement officials said.

“These are very structured criminal enterprises that are involved in the international and interstate trafficking of stolen property,” FBI Special Agent Eric Ives said.

Every type of store has fallen victim to this booming industry and every state has suffered the effects.

A 2011 survey of 125 theft-prevention executives by the National Retail Federation found almost all respondents – 95-percent of them -- suffered losses from organized retail crime.

How It Works
With conventional shoplifting, an individual might steal a few items for personal use.

“Organized retail crime is [at] the other extreme,” LaRocca said. “You have gangs of individuals, or what we call ‘boosters,’ coming into the store, stealing or fraudulently obtaining thousands of dollars of merchandise at one time, and then reselling that merchandise for a profit.”

These heists usually involve at least three participants: one to distract employees, one to bag the merchandise and another, a “mule,” to carry the goods from the store to the vehicle.

Then the merchandise is either returned or fenced.

According to police, everyone has a specific job to do and everyone gets paid.

More sophisticated rings use “booster bags” -- purses or bags lined with aluminum foil and duct tape to block electronic sensor tags on merchandise from setting off security alarms. Booster bags sell for around $100.

Crackdown
Now, state and federal authorities are cracking down.

Maricopa County officials arrested and prosecuted a record number of thieves over the past six months.

A taskforce made up of local law enforcement, FBI, and Secret Service worked with retailers to stop thieves in “Operation Orange Crush.”

“This would be one of the biggest ones I believe that the Maricopa County Attorney's Office has handled, as far as, a criminal syndicate focusing on organized retail theft,” said Maricopa County Prosecutor Joe Waters.

The ring consisted of 36 people who targeted Home Depot, Wal-Mart and Lowes.

First, they would steal merchandise, and then they would return the items for store credit. Finally, the credit was sold to a ring leader who then sold the credits on eBay.

That ring leader just started a 10-year prison sentence for his part in the crimes.

“If you're able to buy something online, in bulk, at a cheaper price than you get at a discount retailer, you should be questioning where that came from,” said Ahlmer.

Another bust happened last month in Phoenix. Eleven people were arrested.

The ring would work in groups of two or three. The first group would scout out the store for surveillance cameras and workers. Police say the next group would come in and begin stuffing merchandise in bags.

“After the theft would happen, we would contact the employees and they had no idea that their store had just been ripped off," said one detective. "They were that quick and that smooth."

Police also tell us that if the stolen merchandise doesn't get returned for money or credit, it usually ends up at flea markets, pawn shops and online.

In March, eBay announced a partnership with the National Retail Federation to tackle organized retail crime.

Read more: http://www.abc15.com/dpp/news/local_news/investigations/organized-retail-crime-in-arizona-is-costing-consumers-millions#ixzz1tAVZAEga