Crimen Organizado en el Comercio (ORC) Estrategias para reducir incidencias. Nelson Harrah, ORC, GAP Inc.
Company Overview • Gap Inc. is one of the world's largest specialty retailers, with more than 3,100 stores and fiscal 2008 revenues of $14.5 billion.
• Gap Inc. offers clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Piperlime and Athleta brand names. • The Company also operates Gap Outlet stores and Banana Republic Factory Stores (BRFS).
Company Overview continued… • Gap Inc.’s $14.5 billion in FY 2008 sales consist of: North America Business $11.8B (81%) • Gap, Banana Republic, Old Navy & Outlet Stores in the U.S. and Canada
International Business $1.7B (12%) • Wholly-Owned, Franchise & Wholesale Online Business $1.0B (7%) • gap.com, bananarepublic.com, oldnavy.com, Piperlime & Athleta Gap Inc.’s Online & International businesses combined have increased by ~$500M from 2006 - 2008.
Company Overview continued… • As of 2Q 2009, Gap Inc. operates 3,145 wholly-owned stores encompassing 39.4 million square feet in 6 countries. United States Canada Japan United Kingdom France Ireland
2,632 188 143 140 40 2
Total
3,145
FY 2009 Store Guidance New Stores
Store Closures
Gap NA
about 10
about 60
BR NA
about 10
about 15
ON NA
about 5
about 20
International
about 25
about 5
• Additionally, the Company has 133 Gap and Banana Republic franchise stores in 17 countries as of 2Q 2009.
Merchandise Losses 45.0
$40.50
40.0 35.0 30.0
$33.20
$31.30
$33.60
$37.40
$34.80
$31.0
25.0 20.0 15.0 10.0 5.0 2001
2002
2003
2004
2005
2006
2007
Losses 40
(Results in billions)
35 30 25
2007 Shrinkage $34.8
20
Robbery $ .5
15
Larceny $5.8
10
Burglary $4.3
5 0
Auto Theft $7.9 Source: 1. University of Florida; National Retail Security Survey – Final Report 2007 2. FBI Uniform Crime Report 2007
ORC Survey Results • 85% of retailers surveyed reported being victims of ORC
Yes No
Lost Tax Revenue State
Lost Revenue
California
$228,155,000
Texas Florida Illinois New York Wisconsin Virginia
$153,750,000 $106,920,000 $77,062,000 $74,205,000 $31,500,000 $31,440,000
Source: Food Marketing Institute 2007
Gap Inc ORC Team • 24 Investigators • 12 major markets • SF, Los Angeles, San Diego, Las Vegas, Dallas, Houston, Chicago, Atlanta, Miami, NY, NJ and Boston • Mall operations & fences • Arrest 600 ORC suspects per year • Training to Law Enforcement
Professional Shoplifters “Boosters� Steal desirable product with the intent to resell
Fence
Fraudulent Refunds
eFencing
Pawn Shops, Flea Markets, Street corners, etc. 30% of retail value
Return merchandise to retail stores 100% + tax of retail value
Sell online through auction sites and other web pages 70% of retail value
3 Types of ORC • Transient Theft Rings • Habitual Offenders • Financial Crimes Artists
Transient Theft Rings • Well Recruited, Trained and Operate Nationally. • Work in Teams of 3-10 People. • Variety of Burglary Tools & Methods • Can Steal $50,000 a Day. • Sell Stolen Items to Fence for 20 Cents on the Dollar
Transient Theft Rings • • • • • •
Divided up Country 2000 Teams Operating Every Week Evasion Artists Heavily Funded for Bonds Puerto Rico DL’s and Intl. DL’s Most States are not Extraditing
Roles of a Transient Theft Ring • • • •
Director Lookout Booster Mule
Behaviors of Transient Theft Rings • • • • •
Stoic & Intense Work in Teams Utilize Blocking Techniques Study Stores From the Outside Behaviors as They Operate in and Outside of Malls
Communication Techniques • • • • •
Hand Signals Two Way Radios Nextels Marking Items to be Stolen Non Verbal Communication
Where They Steal In Stores • • • • •
They Want New Product Steal in First 25% of Sales Floor Steal Along Side Walls of Stores Stand Very Close to Fixtures They Distract Store Employees
Spotting Transient Theft Rings • These Actors Rarely Show Affection Towards Each Other. I.E. Holding Hands • Will Portray They Don’t Know Each Other • Lookouts Will Be Strategically Staged Outside of Target Stores • Look for People Sitting Alone in the Rear Area of Vehicles with the Ignition Off.
Counter Surveillance Techniques • • • • •
Doubling Back While Walking Dropping Keys Stopping at Kiosks Luring Surveillance Teams Into the Open Will Not Walk Directly to Vehicles
Intensity!
Tools of the Trade • • • • •
Booster Bags Booster Pants Booster Girdles EAS Removal Tools Case & Under Stock Keys
Identifying a Booster Bag • • • • • •
Reinforced Handles Four Handles Fold Marks Booster Bag Set Up People Overly Protective of Bags Move or Hide Bags When Security or PD is in Area
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
Tools of the Trade
EAS Jamming Device
EAS Jamming Device
Tools of the Trade
Identifying Booster Pants, Skirts and Girdles • Rubber Bands at Ankles • Overly Stuffed Pants, Dresses and Skirts • Hanging Garments in Front of Pants • Members Operate Similar to Booster Bag Teams • Members Walking Unusually Slow
Booster Pants
Booster Pants
Booster Pants
Booster Pants
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Recoveries
Mall Arrest
Mall Arrest
Mall Arrest
Transporting Goods
Transporting Goods
Transporting Goods
Van Nuys Fence
Van Nuys Fence
Van Nuys Fence
Van Nuys Fence
Van Nuys Fence
NYC Fence
NYC Fence
NYC Fence
Amtrak Case
Amtrak Case
Amtrak Case
Amtrak Case
Amtrak Case
Hialeah Fence
Hialeah Fence
Hialeah Fence
Cabazon Fence
Cabazon Fence
Cabazon Fence
Skirt Boosters
Skirt Boosters
Skirt Boosters
Skirt Boosters
Eastern European Booster’s Residence
Booster Residence
Tools of the Trade
Habitual Offenders • Live Locally • Conduct a Variety of Theft and Fraud Crimes • Tend to be Aggressive • Often Retaliate Against Reporting Parties
Violent Habitual Offenders
Financial Crimes Artists • • • • •
Commit an Endless Variety of Scams Check and Credit Card Fraud Return Exchange Scams Counterfeit Receipts PLU Switching
Fraud Rings • • • • • •
Maintain Business Records Ret/Exchange Scams Counterfeit Receipts Massive Amounts of Receipts International DL’s Washed Receipts
Financial Crimes Tools & Indicators • • • • • •
Rolls of Retailer’s Receipt Tape Duplicate Receipts Counterfeit Checks and Credit Card’s Receipts Stapled Together Gift Cards with Receipts Attached Directions to Many Stores
Eastern European Fraud Artists
Fraud Rings
Fraud Rings
Fraud Rings
Fraud Rings
Fraud Rings
Fraud Rings
Fraud Rings
ID Theft
ORC Analytics
ICSC Mall Security ORC Training Video
What’s Next? • Competitive walls have come down • Cross company remote market support • Cross company ORC reporting • Mall security training & partnerships • Joint ORC Task Force • Asset seizures
Q&A
