Retail Thieves Follow the Money to Multichannel Fraud
More than two-thirds of U.S.-based retailers said that the COVID-19 pandemic increased risks for their organizations in 2020, even as employee theft and shoplifting rates decreased overall. Despite lower rates of internal theft cases, the average cost increased from $1,139.32 per case in FY 2019 to $1,551.66 in 2020, according to the National Retail Federation’s 2021 National Retail Security Survey.
Retail Risks
Loss prevention professionals reported that mall or store violence has become a significantly higher priority during the past five years, according to the survey.
Threats that have become a higher priority since 2015:
|
82% Mall or store violence and shooting incidents |
76% Cyber-related incidents |
64% Organized retail crime (ORC) |
|
53% Internal theft |
47% Gift card fraud |
43% Return fraud |
Multichannel Shopping, Multichannel Crime
Mandated COVID-19 shutdowns and shopping restrictions forced retailers to offer alternative sales methods, including multichannel sales such as buy online, pick up in store. But criminals took advantage of the opportunity to shift gears to multichannel fraud.
Where do retailers see the greatest increase in fraud?
2020 Survey 
2021 Survey
Multichannel Sales |
In-store only sales |
Online only sales |
Organized Retail Crime
About 69 percent of retailers reported an increase in organized retail crime (ORC) activity over 2020, and these gangs appear to be more aggressive than before: 65 percent of retailers noted an increase in violence during ORC-related incidents.
Top Items Stolen by ORC Gangs
Designer clothes |
Laundry detergent |
|
Allergy medicine |
Designer handbags |
Razors |
