The National Retail Federation (NRF) commissioned a report from K2Integrity, an international investigative, compliance, and cyber defense services firm.
An Assessment of a Persistent and Growing Threat, is a comprehensive analysis that delves into the intricate world of US-based Organized Retail Crime (ORC) groups, exploring their strategies, methodologies, and connections to wider ORC networks and related criminal activities. The report aims to shine a light on the current understanding of ORC and expose the knowledge gaps that remain. By raising awareness of ORC threats and activities, it strives to assist media coverage and promote advocacy for federal legislation that tackles ORC, including the Combating Organized Retail Crime Act of 2023 (S. 140/H.R. 895).
Some of the key findings in the report include:
- ORC groups largely target everyday consumer goods — which offer a favorable balance between ease of theft, monetary value ,and ease of resale. Only 11% of the ORC groups examined in the report targeted luxury goods.
- The median ORC fencing operation handled about $250,000 in stolen merchandise prior to being apprehended by law enforcement.
- ORC fencing operations rely on online marketplaces as one resale channel. About 45% of ORC groups for which fencing information was available used online marketplaces for resale operations.
- ORC fences that conduct online resale operations appear to be shifting away from third-party online sellers and toward peer-to-peer websites that facilitate direct engagement among buyers and sellers.
- ORC groups rely on advance planning to ensure the success of their theft operations.
- There are significant deficiencies in the availability of consistent and consolidated data regarding ORC across national, state, and local authorities, as well as the retail industry.