Winter 2024

Insights

Stealing Without Sin

Fight Crime Day on The Hill

Reducing Shrink with Customer Service

Homelessness and Disorder

Plus: Safeguarding the Organizational Mindset

Walking the Talk with Khris Hamlin

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12

By Stefanie Hoover, CFI

28

18

38 When Did

24

48

52

By John W. Jones, PhD

58

6 Editor’s Letter

Always Playoff Ready

By Stefanie Hoover, CFI

8 Editorial Board

9 Vendor Advisory Board

10 Retail Sponsors

35 LPM Excellence

LPM Founders’ Awards

Featuring Tony Sheppard, MSM, CFI, LPC, ThinkLP, and Michael Limauro, LPC, Whole Foods Market

36 Interviewing

The Power of Choice: Autonomy in the Investigative Interview

By David Thompson, CFI

44 Career Center

The Interaction of Networks and Relationships

By David Shugan, CFI

45

Lions and Tigers and Bikes, Oh My!

46 Retail Trends

Social Engineering: A Rising Threat

By Tom Meehan, CFI

65

Cutting Through the Hype

By Grant Drawve and Walter Palmer 66

Popular

By

Always Playoff Ready

When I sit down to write each Editor’s Letter, we are usually in the midst of production and embroiled in the process of taking an idea from birth to inception. We do this six times a year, so I typically take cues from what’s happening around me: the seasons, the news, changes to our industry, and even sports. As a coach’s daughter, sports are like a magnet for me. That might be one of the reasons I have stayed connected to the LP field so long as it truly is a team concept. No one succeeds alone. This time of year, it’s all about football, even if my beloved Bears failed to make it to the playoffs, again. But what does football have to do with LPM?

to a long standing and popular column. In every issue, we present the LPM Excellence, or “Magpie,” Awards to individuals in the industry who go above and beyond to make an impact, whether practitioners, solution providers, or law enforcement. We have updated the image and, as a way of honoring Jack Trlica, Jim Lee, and the others who helped form LP Magazine twenty three years ago, we have changed the name to “The Founders’ Award.”

Powered by The Loss Prevention Foundation

President Caroline Kochman

Caroline.Kochman@losspreventionfoundation.org

Vice President, Editor-in-Chief

Stefanie Hoover, CFI

StefanieH@LossPreventionMedia.com

Editorial Director Jacque Brittain, LPC JacB@LossPreventionMedia.com

Managing Editor Digital

Courtney Wolfe

CourtneyW@LossPreventionMedia.com

Assistant Editor Allie Falk AllieF@LossPreventionMedia.com

Retail Technology Editor

Tom Meehan, CFI TomM@LossPreventionMedia.com

Contributing Writers

Read Hayes, PhD

John W. Jones, PhD

We’re a little like a small football team here; we put in the hard work over and over again so that we put a superior product on the field. We may not be sweat‑drenched in the process, but the LP Magazine editorial team has put in some serious work on this issue, and I hope you notice and recognize their hard work. We have painstakingly gone over every detail and will continue to do that for every issue. Just as your LP teams will go over results from an investigation or inventory, we will unpack what went right and wrong after each issue. We want to bring you fresh voices and topics that you haven’t considered before, challenge you to think differently with new concepts, and keep you in playoff condition—mentally. I hope you’ll find that we achieved that in the pages ahead.

We’re a little like a small football team here; we put in the hard work over and over again so that we put a superior product on the field.

At our Fall Meeting in Sanibel Island, Florida, we heard loud and clear that our readers want to see different types of leaders, hear about real‑world cases, and learn about technology. I think we ticked the boxes with this issue and more. From our feature story with Khris Hamlin, the inspiring new LP leader at RILA, to Cory Lowe’s in depth and personal look at homelessness, there is content here that will inform and spark you on your journey.

In this issue, keep an eye out for some refreshed looks and, in particular, an update

Our team will continue to put in the reps and get ready for our next issue, but we could use your help too. Let us know what you like (or don’t like), or submit an idea for an article, and we’ll help you get it published. Just drop us a line at editor@losspreventionmedia.com. We’d also love it if you help spread the word about us—maybe suggest a subscription to a new hire? Or have some print copies ordered for your next department meeting. We look forward to seeing you at the tradeshows and Regional Town Halls this year. Thanks for all you do to support LP Magazine.

Cory Lowe, PhD Walter Palmer, CFI, CFE Michael Reddington, CFI

David Thompson, CFI

Special Projects

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© 2024 Loss Prevention Foundation

Stefanie Hoover, CFI Editor-in-Chief

LPM's Editorial Board is composed of some of the loss prevention and asset protection industry's top executives from a wide range of retail sectors. These senior executives provide guidance to the LPM team on article topics and industry issues that are of current concern and interest to LP professionals. To learn more about the Editorial Board, contact Stefanie Hoover, CFI, at StefanieH@LPportal.com.

Mark Stinde, MBA, LPC Vice President Asset Protection, Casey's

Bobby Louissant Global Security Program Manager, Meta

David Lund, LPC Vice President, Loss Prevention, DICK’S Sporting Goods

John Matas, CFE, CFCI Director, Global Fraud, Risk, and Compliance Operations, Etsy

Dan Moren Senior Manager, Starbucks

Richard Peck, LPC Senior Vice President, Loss Prevention, The TJX Companies

Hank Siemers, CFI Vice President, Global Protection Services, Tiffany & Co.

Jennie Anderson Vice President, Loss Prevention, Safety, Security, and Environmental, AutoZone

Marty Andrews, CFI Vice President, Loss Prevention, VF Corporation

Rick Beardsley Senior Director of Loss Prevention and Safety, At Home Group

Ray Cloud Group Senior Vice President, Loss Prevention, Ross Stores

Carmen DuBose, LPC, CFI Senior Director of Asset Protection, Hibbet /City Gear

Scott Draher, LPC Vice President, Asset Protection, Safety, and Operations, Lowe’s

Scott Glenn, EDJ, LPC Vice President, Asset Protection, The Home Depot

Robert Holm Director, Global Safety and Security, McDonald’s

Seth Hughes Divisional Vice President, Asset Protection and Risk Management, REI Co-op

Christyn Keef, LPC Vice President of Asset Protection and Safety, Walmart

Mike Lamb, LPC Vice President, Asset Protection and Safety, (Ret.) Kroger

Michael Limauro, LPC Vice President, Global Asset Protection, Whole Foods Market

LPM's Vendor Advisory Board is composed of the magazine's strongest solution provider supporters. These executives provide their counsel on how the magazine can better advance and serve the loss prevention and asset protection industry. To learn more about the VAB, contact Ben Skidmore at BenS@PartnersPR.com.

Rhett Asher SVP, Community Relations and Partnerships

Vy Hoang Chief Customer Officer

Bobby Haskins VP, Retail Partnerships

Craig Greenberg SVP Sales and Marketing

James Stark Segment Manager, Retail

Stephen B. Longo VP, Strategic Initiatives

Stuart Rosenthal VP, Global Sales

Tom Meehan, CFI President

Amit Kumar Founder/CEO

Scott Thomas National Director for Signature Brands

Cita Doyle, LPQ, LPC VP, Sales and Marketing

Matt Kelley, MBA Head of Retail, Go To Market

Ned McCauley Director, Sales

Robb Northrup Director, Marketing Communications

Tony Sheppard, MSM, CFI, LPC VP Retail Risk Solutions

Jack Ashton VP, Strategic Development

Jordan I. Rivchun Head of Business Development

Dave Sandoval President

Chris Reene Head of Commercial

Alix Arguelles Director of Product

Rex Gillette VP, Retail Sales

Join these great companies as an LPM corporate sponsor. Email Editor@LossPreventionMedia.com for more information.

FEATURE

Walking the Talk with Khris Hamlin

Walking the Talk with Khris Hamlin

By Stefanie Hoover, CFI

EDITOR’S NOTE: Khristopher Hamlin, LPC, is the vice president of asset protection at the Retail Industry Leaders Association (RILA). Prior to joining RILA, Hamlin served as the senior vice president of asset protection, inventory control, and DC/logistics operations for Saks OFF 5th. He started his retail career with 20-plus years at Macy’s in various roles and then moved on to work for Belk, after which he took on the regional asset protection manager position for Nordstrom, Inc.

A busy entrepreneur as well, Khris started The Khris Hamlin Company, a leadership coaching and consulting company, back in 2021

Outside of his professional pursuits, Khris is active with his family and church. He’s a proud dad within a blended family: a 21-year-old, 15-year-old, twin 10-year-olds, and the newest addition, a 3-month-old, all daughters.

STEFANIE HOOVER: Where did you grow up? Tell us about your family life, and how they influenced who you are today.

KHRIS HAMLIN: Growing up in a military family, I had the privilege of having parents who were dedicated US government employees. My leadership lessons and development began early in my childhood. Living in different states across the US and outside of the country taught me the importance of being agile and adaptable. My parents always challenged my sister and me to break away from the norm and never let excuses or setbacks hinder our focus and determination to achieve success. These invaluable lessons have stayed with me to this day. In addition, my parents instilled in me the values of always showing up, leaving a positive impact, giving back, and never forgetting where I came from. These values have become a part of who I am and have set the foundation for the person I am today.

HOOVER: During your presentation at the Chicago LP Magazine Regional Town Hall in 2023, you provided an excellent overview of your career path. Can you highlight some of that here? Your career path took some interesting turns.

HAMLIN: During my final years of college, I was lucky enough to secure a position in the fire services. It was a

true blessing to start my career journey as a firefighter/ paramedic, but it wasn’t exactly where my passion lay. You see, I enjoyed helping people, but I wanted to make a bigger impact in that field. I later learned a lot about my desire to always seek a greater impact.

After completing college, I was presented with another fantastic opportunity. I was chosen to attend the arson academy and after finishing that, I attended the police academy. This started my career within the arson investigation division. Just as things were starting to align in my life my first major setback occurred. I suffered an injury on the job that took me out of commission for almost a year. During that time, I had to do some real soul searching. The role that I thought was my dream assignment started to look more and more like it was a mistake or misplacement. I made the tough decision to leave my beloved agency and pursue a career with one of the most prestigious law enforcement organizations, the New York City Police Department.

After undergoing months of the recruitment process, I received the exciting news: I had been accepted into the NYPD Academy! I received acceptance into the upcoming recruiting class that fall, which marked the beginning of my plan to move from Maryland to New York City. As I had the entire summer ahead of me, I decided to browse through the “help wanted” section of the newspaper. While doing so, I stumbled upon a job posting that immediately caught

Walking the Talk with Khris Hamlin

my attention. It read something like this, “We are hiring plain clothed security personnel to work undercover within a retail department store.” The idea of not having to carry a weapon and getting on the job training intrigued me. I thought this role could be a temporary job for me until I moved to New York City. After applying and being hired, I started my first job in the retail industry as a loss prevention detective at Hecht’s Department Stores. Initially, I thought my job at Hecht’s would be temporary. However, it turned out to be a long-term career spanning twenty-five years with Macy’s after they acquired Hecht’s.

Throughout my career, I have held various positions, starting as a loss prevention detective, then progressing to become a district director of asset protection, the manager of the special investigation unit, regional director of

It was my dad who taught me the importance of selflessness and serving others.

He dedicated his life to always having a positive influence and a different perspective.

investigations, regional vice president of asset protection, regional vice president of operations and asset protection, and finally, the vice president store manager. I have taken a few detours on my career journey in AP.

Even as I climbed up the career ladder, I continued to feel the need to make a bigger impact. Initially, I tackled local challenges and then looked at opportunities across the United States where I could relocate. During my tenure with Macy’s, I relocated about seven times. I started in Maryland and then moved around the state a few times before moving to upstate New York. After that, I moved to downstate New York, then Florida, and finally California. Over my career, I have learned that your career journey will require you to be agile and pivot. You will have to take calculated risks and, at times, be comfortable being uncomfortable. Success is not an easy journey, but you can have some amazing rewards, and impact along the way.

HOOVER: What led you to RILA?

HAMLIN: A professional connection shared the opportunity with me and thought I could make a larger impact within the retail space in this role. After learning more about the role, purpose, and mission of RILA, I realized that our perspectives on the retail industry were aligned. A

few weeks later, I began talking with members of the RILA team. As I learned more about each one of them, I became even more convinced that I should pursue this role vigorously. Their passion, determination, and focus to elevate this dynamic industry while helping to transform the environment in which retailers operate aligned perfectly with my current professional goals.

HOOVER: What are you passionate about?

HAMLIN: I am deeply committed to driving change and making a lasting impact. As part of my role, I constantly seek ways to keep the mission and focus of our AP leaders at the forefront of decision-makers, public officials, and the media. These professionals work tirelessly to address shrinkage concerns and ensure a safer shopping and working environment. I am passionate about promoting a positive narrative about those working in this industry. AP leaders are often the first to come under scrutiny when expenses need to be cut, but their work is essential for the sustainability of the retail space. Their progress, leadership, and contributions should be better understood both within organizations and by the public.

HOOVER: It’s clear that servant leadership is important to you. Was there something or someone in your career that influenced this mindset?

HAMLIN: Yes, it was my dad who taught me the importance of selflessness and serving others. He dedicated his life to always having a positive influence and a different perspective. He instilled in me the belief that servant leaders prioritize serving the greater good—they put their team, organization, and families first and don’t prioritize their own objectives. Being in a servant leadership environment makes a significant impact on employees; they feel heard and are more likely to strive for success. I looked up to my dad for the way he led his team, his community, our religious community, and our family. I was inspired to follow his example and made a personal commitment to myself to always show up and never leave a situation, employer, or team until I have made a sustainable and lasting impact.

HOOVER: It is also clear that you want to give back to the industry. We see only a handful of folks willing to put themselves out there like that. What do you suggest others do to get more involved in the industry?

HAMLIN: I suggest taking action rather than just talking about it and “DO IT.” Giving back has always been a significant initiative in my career. When I started in retail, I had no relevant experience in the industry. Though I had some transferable skills, they were not directly related to retail. However, someone took a leap of faith in me and decided to invest in my growth and development. I am grateful for that opportunity and never take it for granted. Later, I started noticing that very few people of color held positions similar to mine or the ones I was aspiring to attain. This concerned me, as it is challenging to grow and make

an impact without people who share similar struggles and experiences. My father taught me to admire those whom I want to be like and adopt them as my mentors for growth. So, I interacted, connected, and got closer to these leaders to learn and witness how they grew in their careers.

I was bold and assertive, ensuring that every connection added value and drove me to develop faster and more intentionally. Before I knew it, these leaders were endorsing me and sponsoring me across the industry, and I was learning from their leadership.

This is the same level of impact and give back I strive for today. I mentor those who think it’s impossible and show them that it is possible. I work to show early and mid level professionals the struggles I faced, hoping that they would be able to avoid the areas where I stumbled. I spend time weekly meeting with those who have adopted me as their mentor to exchange ideas and give guidance as they strive for success. I not only talk but also take action to develop future industry leaders.

HOOVER: Can you provide an overview of your role at RILA?

HAMLIN: RILA is the trade association in the US representing leading retailers. Our goal is to elevate this

dynamic industry by transforming the environment in which retailers operate.

As the Vice President of Asset Protection at RILA, I am responsible for supporting three key asset protection communities. The first community is our Asset Protection Leaders Council, which consists of the highest level AP leaders within our member organizations. These leaders come together to address and drive industry level impact in the AP space.

The second community is our Crime Against Business Committee, which comprises corporate investigators and organized retail crime professionals. This committee works to stay up to date with the latest trends and techniques used in attacks on businesses. Additionally, this group collaborates with solution providers on emerging technology to keep AP professionals agile and effective at combating threats.

Last, we have the Workplace Safety Committee, which includes industry leaders within occupational health and safety, along with AP leaders within the workplace violence space. This committee partners with the nation’s leading OSHA defense counsel, along with some of the industry‑leading solution providers, to help retailers maximize their effectiveness in keeping the workplace safe for both customers and employees.

I am deeply committed to driving change and making a lasting impact.

Protecting

HIGH VALUE

products in real time by monitoring their position and movement

So, what can we do?

We must elevate our collaboration to a new level. Prosecutors and public officials must take a stand against theft events, changing the narrative from low-risk and high-reward to high-risk and no-reward.

HOOVER: Understanding that you are still new in your position, are you developing a vision for your role? What are some milestones that you have set for yourself?

HAMLIN: I think it’s a great question! Setting goals and challenges for myself is something I always do. When I started in this role, my first goal was to get used to the association space. While this might not sound like a big deal, it’s quite different from my previous work. In the past, I focused on delivering results and driving profitability, but now my focus is on building relationships and creating an environment where leaders can maximize their impact.

Building relationships is something that comes naturally to me, and I really enjoy doing it. I’ve also been working on connecting with people in the industry whom I didn’t know before. In retail, it’s easy to stay within your own area of expertise, but I’ve challenged myself to build connections with people in grocery, home improvement, and pharmacy. It’s an ongoing challenge, but one that I’m enjoying.

HOOVER: Tell us about Vibrant Communities and the concept RILA has developed—give us the elevator pitch.

HAMLIN: The purpose of Vibrant Communities is to address safety concerns for employees and consumers by forming a partnership among relevant public and private stakeholders. The goal is to identify and tackle issues that contribute to the increase in crime, violence, vagrancy, and blight in and around retail environments, business districts, and communities across the country.

The retail community has successfully advocated for new laws at the state and federal levels to make selling stolen products more difficult and to increase funding for organized retail crime task forces. These are notable achievements, but they alone will not address many of the underlying socioeconomic factors that threaten the vibrancy of retail spaces and business districts.

Vibrant Communities is an initiative to promote actions that reduce unlawful activity in and around retail environments, which threatens the vibrancy of these areas and surrounding communities. We’ve partnered with the National District Attorneys Association to launch this firstof its kind endeavor to combat retail crime.

Efforts will seek to substantially reduce recidivism among high-impact habitual offenders by increased prosecution and deterrence of ORC. The increased risk of arrest and prosecution of ORC criminals and limiting their easy access to unsuspecting buyers through online marketplaces will reduce the reward and further deter these actors.

We are piloting this initiative in two communities, King County, Washington, and Yolo County, California, to test, study, and promote actions to address underlying issues driving unlawful activity with the goal of developing programs that address addiction, mental illness, and other drivers of criminal recidivism.

HOOVER: The ORC and retail crime problem has grown exponentially since you and I were catching shoplifters. Do you think this is a problem that can be solved or are

retailers fighting a fight that can’t be won? What will it take to swing the pendulum back the other way?

HAMLIN: The landscape of shoplifting has undergone a significant transformation over the years, prompting the need for a comprehensive approach to tackle this pervasive issue. The evolving nature of shoplifting, from opportunistic individuals to more organized and potentially dangerous offenders, is what we have witnessed since you and I caught shoplifters. In the past, shoplifting primarily involved opportunistic individuals and a small number of habitual offenders. Today’s scenario encompasses a broader spectrum of actors, including career criminals, the unhoused, drug users, and violent offenders. This shift underscores the complexity of the problem at hand.

Back in my early career, many jurisdictions set felony thresholds at $500, with some states even lower at $300. Now, these thresholds have generally increased to $1,000 or more. Unfortunately, this adjustment has not only failed to deter bad actors, but it has also promoted the now well-known and highly profitable low-risk, high-reward business model for criminals.

Retailers face a challenging dilemma. The escalating nature of violence associated with shoplifting has led many to adopt a hands-off approach. Meanwhile, law enforcement, already stretched thin, is allocating fewer resources to address shoplifting incidents, relegating them to a lower priority for calls of service. Traditionally, organized retail crime teams and habitual offenders would steal items for local resale at flea markets or direct face-to-face transactions. However, the effectiveness of online marketplaces in facilitating anonymous sales added significantly to the problem. It is imperative for prosecutors, public officials, law enforcement, retailers, and the public to unite in a collective effort to combat retail theft. Restoring the safety and vibrancy of our communities hinges on this collaborative approach. The repercussions of inaction are felt keenly within our communities. Retailers are forced to close their doors due to unsafe conditions or an inability to remain profitable amid a surge in theft events. This loss of local shopping options deprives families of a crucial resource, while also leading to a decline in local employment opportunities.

So, what can we do? We must elevate our collaboration to a new level. Prosecutors and public officials must take a stand against theft events, changing the narrative from low risk and high reward to high‑risk and no reward. This paradigm shift is essential to curbing the alarming trends and reclaiming the once‑vibrant environments we consider our communities.

Stefanie Hoover, CFI, is vice president and editor‑in‑chief at Loss Prevention Magazine. She has over twenty years’ experience in retail loss prevention and worked as a solution provider. She serves on the LPRC Board of Advisors and IAI Midwest Chapter board. She can be reached at StefanieH@LossPreventionMedia.com.

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A CASE OF “DIVINE ENTITLEMENT”

By Jacque Brittain, LPC

When it comes to organized retail crime (ORC), the primary motivations behind theft and crime are simple: to make money and turn a profit. Retail stores are seen as a source of income, a place where thieves can feast upon the resources and labors of a faceless retail corporation to meet the needs and desires of the criminal enterprise. Methods both simple and sophisticated will be used, whether subtle and covert or blatant and aggressive, to steal merchandise—to the tune of billions of dollars every year.

The reasons behind those motivations can be incredibly diverse, whether to support a habit, pay off a debt, or any of a hundred reasons offered by criminal actors to excuse their illicit actions. Most are tangible, driven by poor decisions, personal circumstances, or other self rationalizations that provide personal justification for criminal behavior.

But what happens when a group of individuals believe they have been blessed with the “divine right” to steal? How does this influence the methods and incentives of those involved? How does it impact the investigation? A case in the Chicago market recently culminated in an extensive operation that gave us that answer loudly and clearly.

The Travelers

For suburban Chicago detectives, it all began in the spring of 2014 when an abrupt surge in forced entry burglaries took place in the Chicagoland area. From there, it developed into a multi jurisdictional investigation that crossed state lines and involved an international ORC operation that found a home in their backyard.

As the crime wave continued, investigators learned that minivans were commonly employed by the perpetrators, largely because minivans are inconspicuous and easily blended into the neighborhoods where the burglaries were taking place. As the investigation unfolded, a Honda minivan became a point of interest, with the task force placing surveillance on the vehicle, the suspects, and their home.

Lieutenant Jeremy Thayer with the Downers Grove Police Department. “But when we started to focus on them, put trackers on vehicles, and carry out our surveillances, what we really learned was that they were primarily committing organized retail theft. This evolved into an elaborate 8 year long investigation into a large group of foreign criminals—‘travelers’—perpetrating organized retail crime throughout the region. A case like this really highlights how involved and how intricate ORC investigations can become.”

Travelers are part of the Romani culture whose groups historically move from one area to the next. Some groups adhere to, and act upon, a cultural belief in their “divine right” to commit theft and fraud. Many of the travelers involved in this investigation had origins in Poland, and had recently entered the country illegally with the intent to take part in this criminal enterprise. They were identified by detectives as the primary suspects in the sudden increase in criminal activity.

Investigators also learned that the minivans were purchased from a used car dealership in Chicago that allowed the vehicles to be registered under false names and addresses to avoid detection by police. This proved to be just the tip of the iceberg.

“It started with what we thought was a group that was just exclusively burglarizing homes,” confided

“There were many different clans consisting of families and groups of travelers that worked together with the same objectives—to steal,” added Thayer. “But detectives soon learned that the residential burglaries were only a small part of their operation. What we learned as the investigation moved forward is that the large scale operation and their primary source of income was actually ORC. This was a

Jeremy Thayer

Surveillance generated evidence of stolen product, who was involved, and the methods used to move it.

Stolen beauty products found warehoused and being readied to ship.

sophisticated group of thieves using everything at their disposal to commit retail crimes and then use illicit fencing operations to sell millions of dollars in retail products.”

As their criminal activity grew more sophisticated, surveillance teams continued to track groups of travelers while they stole product and moved the merchandise into various storage facilities. Product stolen in one state was quickly moved through

common carriers to the fence in another state using storage lockers registered in fictitious names. Stolen items were then sold through illicit business operations and online marketplaces.

“The travelers were moving all across the United States to steal and we were able to use electronic trackers to monitor their movement,” disclosed Detective Ryan Pacyga with the Arlington Heights Police Department. “The method of operation for these groups was that each time they would head out of state they would have a specific retail target in mind. It might be a Walmart trip, a Target trip, or an ULTA trip; they would hit fifteen or so stores and then stop at a FedEx to ship the stolen product back to Chicago area storage facilities where the merchandise would then be fenced primarily through various eBay and Amazon sites.”

Theft teams were well trained, organized, efficient, and unwavering in their commitment to the operation. They strategically chose targets, attacked the retail stores, and followed well established protocols to ship stolen goods back to the Chicago market for resale.

One of the most prominent hurdles for investigators was the speed and efficiency with which merchandise was moved by the travelers. “Because of the efficiency of the operation, it would be very rare to find thieves in possession of large amounts of stolen merchandise as they moved across the country,” remarked Sergeant Sean Edmondson with the Arlington Heights Police Department. “It wasn’t uncommon for merchandise to be stolen by the traveling groups, shipped back to the warehouses, and made available for sale on the online marketplaces within twenty four hours or so.”

The Importance of Teamwork and Relationships

As the case severity continued to climb, detectives from the Arlington Heights and Downers Grove police departments collaborated with other police agencies, prosecutors, various retail investigators, and online marketplaces to build their case. Detectives gave high praise to law enforcement partners and retail teams at Walmart, Target, Lowe's, ULTA, eBay, Amazon, and others for their involvement and persistence in developing the investigation.

“It was the relationships that we made with the private sector that proved to be a huge advantage,” proclaimed Pacyga. “Those relationships have

Ryan Pacyga

Sean Edmondson

since led to great partnerships and we are super happy to have had the opportunity to work with these folks.”

Through these collaborations, the various “clans” involved were identified, the leadership structure was determined, the specific fencing operations confirmed, and the movement of illicit financial gains was ascertained. With the cooperation of the eBay PROACT team, detectives identified an account that had accumulated $2.2 million in profits. Additionally, the eBay PROACT team helped detectives identify over a dozen seller profiles serving as fences for the stolen property acquired by the thieves. On eBay alone, these profiles were responsible for approximately $18 million dollars in the sale of stolen goods. Each of these profiles were managed by the same group responsible for stealing the goods and mailing them to a network of storage lockers held under fictitious names at facilities throughout the Chicagoland area. Detectives later found Amazon seller profiles held by the group that had sales of approximately $18 million dollars. The cash proceeds from these profiles were often withdrawn in intervals. However, detectives discovered over a million dollars in illicit funds that had been wired to clan members overseas.

Altogether, the investigation resulted in more than $36 million in stolen goods that had been targeted, stolen, and sold by this group. Twenty-five individuals were indicted during the investigation. Dozens of vehicles and more than $5 million in cash and assets were seized, along with millions more in stolen goods.

Detectives also stressed the importance of thinking outside the box, building relationships, and embracing the value of networking to help bring their investigations to the most successful outcomes.

“As law enforcement officers, we typically have more of a linear mindset when it comes to investigations,” surmised Edmondson. “But with this type of investigation, it’s crucial that we view what’s happening as part of a larger network. You must focus on all the various elements and the way that they interact. We must take all of that into consideration and map it out so that we can use our resources in the best and most cost-effective way.”

“The exposure to a case like this has been invaluable to my development as a detective,” acknowledged Pacyga. ”The knowledge and information that I gained as the case unfolded has had a tremendous impact on the way I approach my investigations today. This isn’t just simple retail theft. You really can’t put a price tag on what you learn and how it helps you grow. For me, it’s paid huge dividends.”

“For us, a primary message is that smaller agencies can take on these types of cases, it just has to be prioritized,” concluded Thayer. “We have to work together. We have to be persistent and patient. It can be very frustrating to think that some of these cases aren’t getting the attention that they should. This really should be an initiative and a priority of law enforcement moving forward.”

The Romani Culture

The Roma or Romani people are a distinct ethnic and cultural group who share a family of languages and a traditional way of life. The Roma culture has a rich tradition, with a strong emphasis on family. Known primarily as a nomadic culture that migrated across Europe for more than a thousand years, the specific origins of the Roma people are unclear. However, central India is often recognized as a notable point of origin as they have moved across Europe and around the world.

It’s extremely important to keep in mind that most Roma find the term “gypsy”—which is a holdover from when it was believed that their origins were in Egypt—to be offensive and derogatory. “Roma” or “Romani” is the term that most use to describe themselves today, which simply means “people” according to the Roma Support Group, an organization created to promote awareness of the Roma traditions and culture.

While the Romani traditionally live according to strict moral codes, there are those who choose to steal. In this case, it is the origins of and the justification for stealing that stand out. It is the adherence to a two thousand year old legend that provides what some in the Romani culture believe is an ongoing moral justification for theft—even a divine right.

The Legend of the Fourth Nail

The legend originates with the crucifixion of Jesus. While there are different versions of the story itself, the theme remains consistent. According to legend, there was a fourth nail intended to pierce the heart of Jesus during the crucifixion. However, that nail was stolen by an individual of Romani descent, allowing Jesus to escape that specific fate. Through the act of stealing the nail meant for Jesus’s heart, the “gypsy” became a symbol of defiance and redemption—while granting their descendants what many within the culture consider a divine right to steal.

Unfortunately, for a fraction of the Romani culture, the legend still provides a means of justification—or a powerful excuse,—to commit theft and fraud as a way of life, even in the modern

“It wasn’t uncommon for merchandise to be stolen by the traveling groups, shipped back to the warehouses, and made available for sale on the online marketplaces within twenty four hours or so.”

Sergeant Sean Edmondson

world. It has transcended generations and become embedded as an ethical paradox to this day.

Theft As a Way of Life

“Working these types of cases, it’s crucial to understand the targets of your investigation,” reasoned Thayer. “As we got deeper and deeper into this investigation, we learned that this group firmly believed that they actually had the divine right to steal and it’s not a sin based on their religious background. Understanding that while conducting the investigation—and even more importantly when it comes time to interview these individuals—helps build the case and gives you better focus on how the investigation might unfold.”

In this particular subgroup of Romani, they see theft as a way of life, embedded in the culture, and passed on through the generations. Methods of stealing are taught to children at a young age and are entrenched in the family dynamic.

“While interviewing different individuals and different groups involved, we repeatedly heard versions of a similar story,” said Edmondson. “Stealing the fourth nail allowed the resurrection to take place, which they believe would not have occurred otherwise. That story tells them that not only what they’re doing is non criminal, but they’ve been blessed to do so. This idea is ingrained in this subgroup at a very young

“Working these types of cases, it’s crucial to understand the targets of your investigation. As we got deeper and deeper into this investigation, we learned that this group firmly believed that they actually had the divine right to steal and it’s not a sin based on their religious background.”

Lieutenant Jeremy Thayer

Cash and stolen product documented as evidence, some on it's way to be shipped.

age. It’s something they deeply believe in and a tremendously important aspect of the entire culture. It really is a way of life and a tremendous challenge for anyone working these types of investigations.”

Have Faith in the Process

When it comes to ORC, habitual offenders are often the norm. In this case, investigators also had to deal with suspects whose deeply held belief system includes a culture of theft that they see as their God given right.

As this investigation clearly highlights, everyone involved in unveiling the depths of organized retail crime—whether in the suburbs of Chicago or in markets across the world—must keep an open mind and a flexible approach. Speaking with these detectives as they broke down the lessons learned and the unexpected twists and turns that were part of the case, we were able to see how the investigation unfolded from a burglary investigation into a massive criminal operation involving tens of millions of dollars, extraordinary strategic efficiency,

and deeply held cultural beliefs that date back thousands of years.

Ultimately, it was more than just the investigation that evolved. Detectives detailed their experiences in professional growth. They talked about learning to see the investigation and those involved through a different lens. They reflected on the importance of developing critical relationships with different agencies, prosecutors, and private sector partners. They learned that making assumptions or thinking that one can see into the minds of those involved in these crimes can lead to mistakes. They learned that patience, persistence, planning, and process pay huge dividends.

Jacque Brittain, LPC, is editorial director for LP Magazine. Prior to joining the magazine, he was director of learning design and certification for Learn It Solutions, where he helped coordinate and write the online coursework for the Loss Prevention Foundation’s LPC and LPQ certifications. Earlier in his career, Brittain was vice president of operations for one of the largest executive recruiting firms in the LP industry. He can be reached at JacB@LossPreventionMedia.com.

To learn more about the travelers and how this case unfolded, follow the QR code to view our conversation with Detectives Thayer, Pacyga, and Edmondson as part of LP Magazine’s recent ORCAs in Action webinar.

Taking the Battle Against ORC to The Hill

By Millie Kresevich

In the post COVID 19 era, the retail industry has been burdened with an insurmountable surge in criminal activities, causing significant pressure and exhaustion. The financial burden of safeguarding employees, products, and store environments has escalated to unparalleled levels. Reflecting on the trajectory over the last several years raises critical questions about the brazen nature of criminals, their blatant disregard for concealing stolen goods, and the apparent decline in effective deterrents and consequences for criminal behavior. This situation did not arise suddenly but is the result of a slow, progressive series of events.

Prior to COVID 19, legislative changes such as the decriminalization of certain offenses like shoplifting, elevation of felony thresholds, and bail reform were implemented. While aimed at positive societal reform, these measures inadvertently created loopholes that criminals have exploited, manipulating the justice system to their advantage.

Fast forward to the post COVID 19 years, and the retail sector grapples with addressing the escalating epidemic of retail crime. What measures can bring about change? Securing merchandise, increasing security personnel at store entrances, and reinstating capacity limits are considered. Implementing Crime Prevention Through Environmental Design (CPTED) in retail settings can deter theft and enhance employee safety. However, to truly reestablish law and order and address the root causes, a multidisciplinary approach to legislative change is essential.

To initiate legislative change, one must first understand how laws are created. The process involves several steps:

■ Bill Drafting: Anyone can write a bill, but only members of Congress can introduce legislation.

■ Proposal Articulation: The proposal must be conveyed in a manner consistent with bill language.

■ Sponsorship: The member of Congress introducing the bill becomes the primary sponsor, and the bill may have unlimited co sponsors.

■ Record and Introduction: After introduction, the bill is entered into the House Journal and printed in the Congressional Record.

■ Committee Assignment: The Clerk assigns the bill a legislative number, and it is then assigned to the appropriate committee.

■ Committee Review: Committee members examine the bill and may request language changes.

■ Subcommittee Review: The committee decides whether to send the bill back to the floor or to a subcommittee for further examination.

■ Subcommittee Approval: If submitted to the subcommittee and the subcommittee approves, the bill returns to the original committee.

■ Floor Debate and Amendments: If approved, the bill is debated on the floor of the House or Senate.

■ Voting: After all changes are agreed upon, the bill is voted on.

■ Voting Methods: Voting can occur via voice vote, division vote, or record vote.

■ Passage: A majority vote in either the House or Senate is needed to pass the bill.

■ Presidential Approval: Once the bill has majority votes in both chambers, it goes to the President for approval.

■ Presidential Options: The President can sign the bill, veto it, or issue a pocket veto.

This is generally how bills and laws are initiated and implemented. However, there are exceptions and nuances not covered, such as administrative agencies, which are created by the Executive Branch and have the power to create regulations without the introduction of a bill, and in line with their agency’s mission.

Although shoplifting, fencing, and reselling stolen merchandise is not new to our industry, organized retail crime and its impact on the retail industry have become a greater concern in the twenty-first century. Our industry has been engaged in legislative efforts

at a national level since the early 2000s. Although the extent of the issue has greatly increased, our efforts have resulted in some wins along with some learnings to help the passage of future legislation.

2008: A Big Year for ORC and Legislation (So We Thought)

The retail industry took an active stance trying to change or create laws that involved criminalizing organized retail crime (ORC). After a seven‑year lobbying campaign comprised of retailers, manufacturers, and trade associations, key legislation was introduced in Congress:

■ Congressmen Ellsworth (D IN) and Jordan (R‑OH) introduced the Organized Retail Crime Act of 2008 (H.R.6491). The key points of the legislation in 2008 were:

• Add ORC to the federal code

• Narrow the definition of “online marketplace”

• Require online marketplaces to conduct an investigation of stolen goods and disable access when ORC is revealed

• Require sellers to identify merchandise from specific or exclusive retailers

• Require online marketplaces to maintain identification records for high-volume sellers

• High-volume sellers must post identification information that is accessible on internet sites

■ Congressman Scott (D VA) introduced the E Fencing Enforcement Act (H.R. 6713). Scott’s bill targeted ORC mitigation through online marketplace requirements regarding information collection that can be used by law enforcement for prosecution and stopping the sale of goods when they are known to be stolen.

■ Senate Majority Whip Durbin (D IL) introduced the Combating Organized Retail Crime Act of 2008 (S. 3434). Durbin’s bill focused on tools for law enforcement geared toward prosecution, investigation of suspected stolen goods by online marketplaces, and disclosure requirements for online marketplaces.

How could this happen?

ORC was getting bad in 2008, so why couldn’t these bills make it to the finish line?

What got in the way?

The three aforementioned bills in 2008 represented a valiant effort to combat ORC through the use of legislative platforms. Every one of the bills had a congressional champion, retailer support, and trade associations leading the charge. Despite these efforts, the bills did not pass.

How could this happen? ORC was getting bad in 2008, so why couldn’t these bills make it to the finish line? What got in the way?

Although there isn’t one answer, the overarching reason is the cause got lost along the way. ORC, which was at the epicenter of each bill, got lost in the minutia of debates on whether the bills were an

attempt to suppress marketplaces from selling goods online. Lessons learned from the failed bills were evaluated, and strategies were put in place to not repeat history should future federal bills be introduced on ORC again.

Retail theft and ORC did not go away. Retailers continued the battle as time marched on. Then came

the pandemic, followed by a summer of civil unrest and a very contentious presidential election. However, many can argue that it was a series of high-profile group thefts making the news in late 2021 that brought ORC back into the public spotlight. Although retailers were experiencing larger losses and more frequent theft events prior to these incidents, ORC once again was of national attention, including legislation.

2022: The INFORM Consumers Act

Fourteen years later, significant progress was made with the introduction and passing of the INFORM Consumers Act, part of the Consolidated

Appropriations Act. This act imposes stringent requirements on high volume third party sellers and online marketplaces, enforceable by the Federal Trade Commission (FTC) and state attorneys general. This law was signed by President Biden on December 29, 2022, taking effect on June 27, 2023.

The INFORM Consumers Act specifies:

■ Collection and Verification of Information: High‑volume third party sellers must provide information, which will be verified, to the online marketplace it operates no later than ten days after qualifying as a high volume third party seller on the platform. Sellers will be provided with notice for compliance failures and data collection compliance requirements for marketplaces.

■ Disclosure Requirements: High volume third party sellers with an aggregate total of $20,000 or more in annual gross revenues from sales on an online marketplace must disclose required information provided to the marketplace to consumers in a clear and conspicuous manner, written notice for failure to comply will be issued, and terms of suspension clarified.

■ Enforcement: Enforcement will be carried out by the FTC and state attorneys general.

■ Preemption: No state or political subdivision of a state or territory of the United States may establish a law, regulation, rule, requirement, or standard that conflicts with the requirements of the INFORM Consumers Act.

Combating Organized Retail Crime Act of 2023

Although initially introduced in the 2022 congressional session to no avail, the Combating Organized Retail Crime Act (CORCA S. 140/H.R. 895) was re introduced in 2023, aiming to create a federal task force for better coordination among law enforcement agencies while providing more leverage for investigators and prosecutors. The Senate Bill was sponsored by Senator Grassley (R IA) and Senator Cortez Masto (D NV). The House bill was sponsored by Representative Buck (R CO 04), Joyce (R OH 14), Lee (D NV 03), and Titus (D NV 01). The bills create a federal taskforce under Homeland Security Investigations that will increase coordination between federal, state, and local law enforcement and create changes to Title 18 of the US code that will provide more leverage for investigators and prosecutors.

CORCA has become one of the more bipartisan bills in Congress, with a current co sponsorship of over ninety Senators and Representatives across both political parties. It continues to generate a great deal of attention and the retail industry stands in its efforts to seek its passage.

Fight Retail Crime Day

Retail associations play a vital role in supporting the industry in our advocacy efforts. One example is

Retailers and legislators gather on The Hill during Fight Retail Crime Day.

The industry’s journey from the early

efforts in 2008 to

the

present

day underscores the adage, “It’s not always the right time to do the right thing.”

providing opportunities to advocate for change on Capitol Hill. The National Retail Federation (NRF) deemed October 26 of 2023 “Fight Retail Crime Day” in Washington, DC. On this day, retailers took to The Hill to speak with lawmakers regarding the ongoing problem of retail crime and the subsequent impact on stores, employees, and customers.

The planned day began with a press conference where bill sponsor Senator Grassley urged his colleagues to recognize that this crime is a danger to employees, a cost to consumers, and harmfully impacts retailers. After the press conference, seventy retailers and NRF supporting personnel held more than sixty-five individual meetings with members of Congress, demonstrating their knowledge of the growing epidemic of retail crime and the need for legislative change to combat the problem.

The discussions on Capitol Hill in 2023 were much different from the previous discussions on the same topic over a decade ago. Previously, AP executives were educating members of Congress on what ORC is, and this time, they were collecting feedback and getting support from members while stories were shared on how they were personally affected by ORC and the impact on their respective states.

These meetings provided a great experience for those in attendance. The education that comes from those who deal with the issue daily provided our congressional representatives with an understanding of the true impact of this issue. The day also allowed our attendees to understand some of the challenges or concerns of those who may oppose or not be fully educated on the issue. These learnings allow us an opportunity to be better as an industry in educating people on the issue. For example, two key takeaways received from one member’s office:

■ The dollar figure for ORC being reported needs to be consistent within the retail community.

■ The definition of how ORC is being classified, reported, and measured needs to be consistent within the retail community.

As an industry, we need to ensure alignment across the above two categories so that when the topic of ORC is discussed publicly and, in an effort to gain support for federal legislation, everyone is speaking the same language.

What Can You Do to Help?

Take a moment to let your voice be heard and go to www.votervoice.net/NRF/Campaigns/98241/ Respond and urge Congress to support CORCA. The volume of messages received by Congress on this issue matters and retailers have the opportunity to use our collective voice to call for action.

If lobbying on Capitol Hill isn’t your preferred approach, there are still ways industry practitioners can contribute:

■ Stay Informed and Educate Others: Familiarize yourself with legislation like the INFORM Act or state ORC statutes. Educate law enforcement personnel and prosecutors/DA who might not be aware of the new legislation.

■ Support Through National Trade Associations: When associations like the NRF ask for support in writing letters or signing letters of support for specific legislation, ensure your organization’s participation. Collective support from retailers can influence lawmakers’ decisions toward ORC mitigation.

■ Consistent Definition and Reporting of ORC: Accurately define and report ORC within your organization, aligning with industry standards and transparent measurement methods.

■ Collaborate and Share Information: Engage in collaboration with other retailers, share permissible information, and get involved with industry coalitions and groups. Embrace the collaborative approach encouraged by CORCA between federal, state, and local law enforcement agencies.

The industry’s journey from the early efforts in 2008 to the present day underscores the adage, “It’s not always the right time to do the right thing.” The industry is now better positioned to address ORC, but it requires concerted efforts from all stakeholders. This collective effort is crucial for moving the needle in the right direction and effectively tackling the challenge of ORC.

Millie Kresevich is the senior director of asset protection, North America at Essilor Luxottica. During her career she has worked in big box, specialty, and corporate asset protection roles in the retail environment. She holds an AAS in Criminal Justice, BS in Social Psychology, and a Masters in Business Ethics and Compliance. Millie also serves on the LP Council for the National Retail Federation (NRF) and works closely with the Loss Prevention Research Council (LPRC) on various industry initiatives. She has contributed to the development of certification programs for the Loss Prevention Foundation and has been a speaker on loss prevention topics nationally and internationally. Millie was a former recipient of the 20 under 40 National Security Executive Award and was a recipient of the LPM Magpie Award for excellence in leadership for her service to the loss prevention community.

Reducing Loss through Customer Service— and Other Strategies

By Lauren Fritsky

At the Goldman Sachs Thirtieth Annual Global Retailing Conference last September, Lowe’s CEO Marvin Ellison made headlines when he said hiring and training more employees to deliver excellent customer service is the solution to rising theft.

“Having spent my entire adult life in retail at every level, the one thing that I understand clearly is that the greatest deterrent for any type of theft activity is effective customer service,” said Ellison.

Retail shrink includes several types of loss, but the primary driver is theft, including organized retail crime (ORC). The National Retail Federation’s (NRF) 2023 Retail Security Survey, conducted in partnership with the Loss Prevention Research

Council, (LPRC) found that internal and external theft make up 65 percent of retailers’ shrink; this can climb to 70 percent in specific sectors. The report also noted that the average shrink rate increased to 1.6 percent in FY 2022—accounting for $112.1 billion in losses—from 1.4 percent in FY 2021. This percentage is on par with shrink rates seen in 2019 and 2020. However, Lowe’s inventory shrink as a percentage of sales hit just over 1 percent in 2022.

Marvin Ellison

Is Ellison truly onto something with his claim that customer service is the main way

“Having spent my entire adult life in retail at every level, the one thing that I understand clearly is that the greatest deterrent for any type of theft activity is effective customer service.”

Marvin Ellison

to prevent theft? Or is this just one piece of a larger puzzle retailers must fit together—especially in a much-changed post pandemic landscape?

How Great Customer Service Can Help Deter Theft

As a 2019 Loss Prevention Magazine article explained, “…strong customer service is one of our most effective tools and most proactive means to control theft and other losses on the retail selling floor.” This makes sense given the goal of a shoplifter is to get in, get their loot, and get out without being caught. When employees are immediately friendly and engaged with customers, conversely, it can become the first step to preventing theft—and there’s research to back this up.

Cory Lowe, PhD, a senior research scientist at the LPRC said the organization has done qualitative research on customer service being used to deter known offenders.

One example is the report Aggressive and Brazen Liquor Store Theft and Robbery: Findings and Considerations, for which the LPRC collaborated with a beer, wine, and spirits retailer to investigate aggressive and brazen theft and robbery incidents within their stores and come up with solutions. Lowe suggests that retailers might consider increasing staffing during peak times to reduce theft. Unfortunately, according to Lowe, there is very little research on the relationship between customer service and loss.

Nevertheless, the narratives in the liquor store report included several instances in which offenders “distracted the sales associate or took advantage of opportunities that were presented such as when a single associate must assist customers or is busy in a single aisle and whose view is obstructed in a multiple aisle store,” wrote the report authors. “More sales associates increase capable guardianship. This also increases the risk to potential offenders.”

Joe Coll, vice president of asset protection operations and strategy at Macy’s, said his company has also seen evidence that great customer service is important in thwarting theft.

“When store colleagues provide attentive and friendly service, thieves are hesitant about engaging in this type of activity,” he said. “Customer service helps build a personal connection between the retail establishment and the consumer and deters theft and violence. At Macy’s, we have conducted internal analyses comparing many key performance

Joe Coll

indicators, including customer experience with shortage results. There has consistently been a strong correlation between a better customer experience and improved shortage across our stores’ organization.”

As part of the company’s onboarding, associates are taught the importance of customer service and its role in reducing theft. An annual review and acknowledgment of the company’s shortage prevention policy also educates employees on common theft techniques, including shoplifting, employee theft, and fraud. They also learn to identify suspicious behaviors and effectively communicate with the asset protection and store leadership teams to support customer experience and prevent shortage.

CFI

Carmen DuBose, LPC, CFI, senior director of asset protection at Hibbett / City Gear which operates sporting goods stores in small to mid sized markets, said that simply greeting and acknowledging a potential shoplifter makes their job harder because the associate “has planted the seed that there is the risk that that shoplifter could be caught and identified if they choose to commit their crime,” she said.

She added that the next step is eliminating the opportunity to conceal merchandise by continually conversing with that customer and staying within ten to fifteen feet of them while they are in the store. Shoplifters look for easy targets that are low risk to hit continuously. Consistently excellent customer service can drive them away from a store.

“The good customers won’t care,” said DuBose. “The potential shoplifters will get aggravated and leave. Mission accomplished.”

Hibbett’s customer service training is individualized to each store and its manager based on that location’s needs and the training system in place. The asset protection team travels to stores to assist. Still, it is ultimately up to that manager or management team to relay best practices to their team and instill confidence in associates’ ability to handle situations correctly. Typically, this involves role‑playing to empower employees to make good decisions when faced with the uncomfortable situation of dealing with a shoplifter.

Often, this comes down to the simple act of treating potential shoplifters with respect, being genuine, and shopping with them—an approach that has removed two locations from Hibbett’s High Shrink Program, one of them previously known as the “grab and run” store. Kathryn Petersen, an asset protection investigator at Hibbett, shared the following anecdote from a seminar with WZ

“After five years in stores, I can say I believe great customer service deters theft

“You should bring awareness to the shoplifter that you know what they are up to. If you say nothing, you declare to them that you are an easy target.”

Carmen DuBose

Carmen DuBose, LPC,

Reducing Loss through Customer Service—and Other Strategies

because I’ve watched it happen,” she said. “I would coach my staff on handling someone they suspected may be stealing the same as they would one of their regular customers: shop with them. The with is key here. If you continue to show interest in the product your customer is picking up and shopping with them, you’re automatically staying with that customer. You’re not only providing attentive, one on one interaction with that person, but if their intent was to come in and steal that day, you don’t give that opportunity for them to do it without you seeing.”

“If we deliver great service, we are going to increase sales, create a repeat customer, and deter those would-be criminals that want to get in and out without being identified by the sales team,”

Marty Andrews

VF Corporation, which owns several outdoor, active, and workwear brands, including Vans, The North Face, Timberland, and Dickies, takes a similar approach to deter theft by promoting customer engagement and interactions. Even if the shoplifter gets away with merchandise, they will be reluctant to return due to the excellent service, explained Marty Andrews, CFI, vice president of loss prevention at the company. Often, the same items driving sales are at high risk for theft, so he said focusing on those products presents a significant opportunity to decrease shrink and drive sales.

“We are taking every opportunity to teach, coach, and train on best practices in person, online, and in the ‘moment,’” he said. “Tracking data and analytics is important to measure the significance of problems and then deploy the best solution.”

Because they are a specialty retailer, VF Corporation doesn’t have the same level of loss prevention staffing as other brands. That means it’s mainly on store associates to manage theft. The retailer also reviews videos of interactions between associates and customers, including potential shoplifters, and gives feedback on what to do differently next time. Andrews stresses that the company doesn’t train its staff to deter criminals, but instead, to offer the best customer service experience possible.

“If we deliver great service, we are going to increase sales, create repeat customers, and deter those would be criminals that want to get in and out without being identified by the sales team,” said Andrews.

Switching Tactics in the Face of More Aggressive Shoplifters

Based on these accounts, customer service can and does repel theft. However, that’s just one part of the story.

In the 2023 NRF Retail Security Survey, 88 percent of retail brands reported shoplifters have grown more aggressive and violent than a year earlier. When it comes to ORC, 67 percent of respondents say they’re growing even more violent and aggressive, compounding increased violence from prior years. This increased violence has caused retailer AutoZone to rethink its approach to dealing with would be shoplifters, said

Jennie Anderson, a 30 year employee who now serves as vice president of loss prevention, safety, and security.

Like Hibbett and VF Corporation, AutoZone greatly emphasizes excellent customer service. In fact, AutoZone was founded on the tenet of putting customers first. The brand’s founder, Pitt Hyde, saw a niche in the automotive industry in that existing stores didn’t make for an attractive retail environment at the time. Hyde came up with an idea to pivot the concept of his store to a more DIY environment where associates could offer trustworthy advice and help customers choose the products they needed to complete an automotive repair in a bright, well lit store. In addition to creating a more appealing physical store environment for customers, AutoZone developed a main cultural anchor called WOW! Customer Service. One of its tenets is “Drop, Stop, 30, 30.” This means if an AutoZoner is at the register and hears someone open the front door, the employee stops what they’re doing and greets the customer within thirty seconds or thirty feet of coming into the store. This approach has reduced shrink across stores in the past, according to Anderson, because associates are there to help customers with what they need.

“It has played historically well for us from a loss prevention standpoint because, back then, those individuals who may have been thinking about an opportunistic shoplifting event most often would be dissuaded when they knew that they were going to get that great customer service and someone was going to be interacting with them,” said Anderson. “As loss prevention professionals, we would amplify this message.”

However, things have changed post pandemic, with an uptick in violent theft, according to Anderson. In recent years, AutoZoners have experienced interactions involving weapons like guns, knives, and screwdrivers being pulled on them. Some individuals have even walked in and carried car batteries—which typically weigh between 25 and 50 pounds—out of the store. Considering these increased aggressive incidents, AutoZone dissuades its associates from trying to stop a shoplifter.

“This is a vastly different environment today, and definitely over the last two years post pandemic, than I’ve ever seen in my career,” said Anderson. “We do not want our teams to approach a shoplifter with the intent of stopping the theft. We want our AutoZoners to always provide WOW Customer Service to all individuals entering our stores; however, we have to ensure our teams are able to read situations and know when to disengage.”

AutoZone regularly trains and communicates with associates on topics like theft and shrink. Every Monday, they send the top ten things for managers to know or take advantage of that week. Once a month, they include a loss prevention or safety related topic. This information is reinforced quarterly with large shrink awareness posters displayed in employee break areas. The retailer also offers video based micro training on topics such as de escalation and when to engage a customer or individual vs. when to stop a theft. They ramp up their training around the holidays, so associates know the latest scams, robbery prevention tactics,

Marty Andrews, CFI

Jennie Anderson

and best practices for entering and exiting stores in the darker winter months.

Hibbett takes a slightly different approach than AutoZone in encouraging associates to use customer service skills by verbally engaging with the shoplifter. This includes asking the customer to take their specific concealed merchandise to the register or seeing if they need help finding any additional items to go with their concealed product.

“You should bring awareness to the shoplifter that you know what they are up to,” said DuBose. “If you say nothing, you declare to them that you are an easy target.”

However, DuBose stresses that “The safety of our employees is paramount. They are our number one asset. We emphasize to them that no merchandise in our stores is greater than their safety. We never want them to engage physically in attempting to stop a shoplifting situation by putting themselves in harm’s way by blocking a shoplifter from exiting or chasing them in any way.”

Andrews of VF Corporation agreed.

“Every situation isn’t the same. Just because you had an extreme one, per se, that doesn’t mean that the next one is,” he said.” There still are opportunistic shoplifters coming into the store, for sure, that want to be sneaky, and don’t want to get detected…just because customer service didn’t work this time, we can’t get frustrated and just throw it off the table and say that it doesn’t work. Because it is going to work in certain situations.”

Coll said Macy’s continuously looks at ways to reduce theft and violence at its stores by taking a holistic approach to its asset protection program. Their efforts have centered on several mitigation strategies, which include the investment in advanced technology, reporting, and tools, as well as a strong emphasis on optimizing asset protection staffing to target high-risk areas. The retailer does offer de-escalation training that equips colleagues with the necessary skills and strategies to effectively manage volatile situations.

● Exception based reporting systems/programs

● Enhanced, upgraded, or integrated CCTV

● Automatic pushout prevention systems

“We believe that equipping our colleagues with the knowledge and skills to effectively handle conflict helps reduce the likelihood of violence and complaints while promoting a culture of empathy, understanding, and experience for our customers,” said Coll.

Macy’s is also part of the Vibrant Communities Initiative, a joint effort between the National District Attorneys Association (NDAA) and the Retail Industry Leaders Association (RILA) to bring together district attorneys, police departments, social service organizations, and other stakeholders to identify effective approaches for dealing with ORC, habitual theft, violence, vagrancy, and blight in and around retail stores.

The Use of Tech and Merchandising to Combat Theft

When human intervention isn’t safe, retailers increasingly use technology to provide extra eyes in their stores.

The latest NRF Retail Security Survey found that the top ten reported security measures and solutions retailers perceive to be “most successful in mitigating external losses over the past twelve months” included:

● CCTV and video systems

● Locking cases, lock boxes, and cages

Coll said Macy’s has implemented technology that enables associates to communicate with each other and access information in real time. Some of these features include the ability to share shortage awareness topics, provide task management tools, and visibility to real time inventory ownership. A key component of the program is the utilization of Radio Frequency Identification (RFID), which allows Macy’s to easily track and manage its inventory levels daily.

“This supports our overall business model by driving faster replenishment and providing information on current shortage trends,” Coll said.

AutoZone has been testing new camera systems to secure better intelligence, such as license plate numbers and more precise images in store to make a police report and build a case in the event of theft. The company participated in the ACCESS Taskforce pilot in Opelika, Alabama, with LVT beginning in the fall of 2022. For the last year, AutoZone has been piloting Interface Systems, which provides virtual remote monitoring via strategically placed cameras and audio systems that do live video sweeps of locations and voice talk downs. AutoZone also has a direct phone line into Interface’s contact center and a panic button if a theft might be in progress to determine whether voice audio is required.

“We want our AutoZoners to always provide WOW Customer Service to all individuals entering our stores; however, we have to ensure our teams are able to read situations and know when to disengage.”

Jennie Anderson

“We began to see that we are able to become more aware of how often shoplifting is happening and exactly what is

Dmitry Kalinovsky / shutterstock.com

occurring with much greater certainty than we have in the past,” said Anderson of the Interface pilot.

Hibbett communicates incidents of theft in their stores through a portal. They can also send out microbursts of communication to employees through the enterprise resource planning system Workday. VF Corporation works with several outside vendors and benchmarks the performance of technology solutions with peers.

“Technology is changing quickly, so you must never stop evaluating,” said Andrews.

In addition to customer service and technology, Lowe’s CEO Ellison noted at the Goldman Sachs conference that “the right type of merchandising display” is essential to preventing theft at his stores. One increasingly used merchandising tactic criticized of late is locking up more items behind cases or security counters, which shoppers say interferes with their customer experience. These and other security measures become a balancing act between customer safety and customer experience.

“We believe that equipping our colleagues with the knowledge and skills to effectively handle conflict helps reduce the likelihood of violence and complaints while promoting a culture of empathy, understanding, and experience for our customers,”

Joe Coll

Coll of Macy’s says the retailer takes merchandising display into consideration when they plan new store openings and seasonal merchandising strategy sessions. The company arranges merchandise to maximize visibility and ensure clear sight lines which makes it more challenging for individuals to take items undetected. In addition, Macy’s places highly desirable merchandise closer to checkout counters. Securing merchandise in cases is a tactic used “as a last resort,” said Coll.

“Whether locking up merchandise is effective depends on factors such as a store’s shortage profile, the value and risk associated with the products, and the availability of store colleagues to assist our customers,” he said. “We recognize that having trained staff to service the customer is important because it allows our colleagues to assist customers in accessing the locked merchandise, be able to answer questions, and provide guidance on their purchase. This will help ensure that these more aggressive tactics deliver the expected result and strike the right balance between the customer experience and shortage reduction.”

AutoZone works with merchandising partners to do category reviews and assess if they need protection strategies for a particular product. Certain items they sell are expensive and easy to sweep off peg hooks and shelves; however, in the highest risk locations, the retailer leverages tactics such as decoy packaging and locking devices on peg hooks in place, said Anderson.

“It is very customer unfriendly, and it is very challenging when you only have two or three associates and someone needs to purchase a product,” she said about locking up products. “It can lead to lost sales and create an issue of how to take care of the customer.”

DuBose of Hibbett agreed that adding security equipment such as electronic article surveillance (EAS) and locking up items does not move the shrink needle for their stores and hampers the customer experience. Instead, the retailer limits the amount of merchandise on display. All their footwear is kept in a stockroom, requiring an associate’s help. In recent years, they have also back stocked more merchandise instead of leaving it in bulk on the sales floor.

“Grab and runs have become a huge issue for us as the criminals are stealing large amounts of product in one event,” she said. “Limiting the amount of merchandise on display can at least mitigate the amount of loss from these incidents.”

VF Corporation has been working to broaden the scope of security they employ. They have uniformed security and off-duty police officers in their worst areas. They’ve deployed EAS but find it less effective than in the past.

“We have a good relationship with our vendor to design a device that mounts onto the fixture so you can still try it on; it’s cable, it’s retractable,” said Andrews. “You want to have a good customer experience, so that’s a balancing act. The first prototype, the cable wasn’t quite long enough to try it on…so we extended the cable.”

The Need for a Multi-Pronged Approach to Curbing Theft

No single tactic can curb theft, especially in a dynamic post pandemic retail landscape in which violence has increased. The brands we spoke with all said they continually reevaluate their customer service strategies, security systems, and store displays to protect employees and shoppers while keeping stores profitable. More than anything, retailers will likely need to continue choosing which tactic is most applicable on a case by case basis.

Anderson poses some thoughtful questions all retailers can consider as they plan their loss prevention strategies for 2024.

“How do you approach it the right way? How has the message evolved around customer engagement and shoplifting because it is a different day and a different climate? And you have bad actors out there who are very aggressive and don’t think twice. How we think about customer service in relation to shoplifting has changed.”

LPM Founders’ Awards Celebrate Industry Professionals

Excellence in Partnerships

Tony Sheppard, MSM, CFI, LPC Vice President of Risk Solutions, ThinkLP

“Relationships are critical to success in any leadership role,” says Sheppard. “You must be willing to compromise and look for common ground. Don’t be shy about speaking up, but be thoughtful—don’t feel like you must be the most vocal on every topic. I also believe trust is the most important quality we hold. You need to deliver on your commitments, which includes being honest about what you cannot deliver. Set expectations early in the relationship to avoid frustrations later.”

After serving four years in the Army, Sheppard entered the field as a part-time store detective while attending college. He worked for several retailers early in his career, taking on both traditional LP positions as well as roles in operations and logistics. As he climbed the ranks, he eventually moved into a position managing ORC investigations, where he spent about half his career before taking

Excellence in Leadership

Mike Limauro, LPC

Vice President of Global Asset Protection, Whole Foods Market

“Asset protection leaders must have the ability to inspire and earn trust,” says Limauro. “They should have the courage and willingness to embrace change while leading with loyalty, honesty, and integrity. That is the essence of leadership. But in today’s retail environment, being innovative and creative is key. We must adapt to the evolving culture to most effectively serve our customers and the needs of the business.”

After earning his master’s degree, Limauro began his loss prevention career as a store detective. As he advanced in his career, he worked in a wide range of retail environments, from luxury department store chains to discount retail and supercenter stores, eventually being promoted to director of asset protection. Since then, he has held a number of roles for different retailers at the director and VP levels.

Mike is currently the vice president of global asset protection at Whole Foods, leading all

The LPM Founders’ Awards, formerly “Magpie Awards,” recognize the loss prevention professionals, teams, solution providers, law enforcement partners, and others who demonstrate a stellar contribution to the profession. The ability to influence change is a product of drive, creativity, and determination, but it also requires a unique ability to create a shared vision that others will respect and support. Each of the recipients reflects that standard of excellence, representing the quality and spirit of leadership that makes a difference in our lives, our people, and our programs. Please join us in celebrating the accomplishments of our latest honorees.

on his current role as a solution provider. “While performance is always important, I never shied away from tough roles, or those outside of traditional LP,” he says. “That, along with never asking anything of my teams that I wouldn’t take on myself has led to many critical life lessons.”

Sheppard is also vocal about our growth as a profession. “I’m proud of our industry and all that we’ve accomplished,” he says. “We’ve come a long way since my early days, and there are many to call upon that we can thank for this progress. While there are too many names and organizations to name, we truly stand on the shoulders of those who came before us—and so many we work with today. Loss prevention is now a true profession, and we’ve earned a seat at the executive table. Be a part of that example and keep up the good fight!”

environmental, occupational safety, and loss prevention efforts in the US, Canada, and the United Kingdom. “Establishing the first asset protection team and building the first AP program at Whole Foods would be one of my most memorable accomplishments,” he says. “Whole Foods is unlike any retailer I have ever worked for, and I consider myself fortunate to have been trusted with this opportunity.”

For young leaders working their way up the career ladder, he suggests:

■ Learn every aspect of retail operations so you can “speak the language.” Your ability to earn trust and add value may depend on it.

■ Never decline an opportunity to grow personally, to evolve professionally, or to take on more.

■ Be cognizant of where your success comes from and how you arrived at your current role. It will most likely stem from the talent, hard work, and dedication of your team. Treat them well!

Understanding Your Current Crime Risk Across Time of Day and Day of the Week Across Your Locations

When it comes to combating crime, knowledge is power. For retailers, having data that enhances their understanding of the current neighborhood crime risk and its fluctuations throughout the day and week is crucial in developing effective strategies to safeguard their businesses and customers.

Retailers, particularly those operating during extended hours, need to be aware of how crime risks change throughout the day. The Pinkerton Crime Index can help identify peak crime periods, such as late evenings or early mornings when criminal activities like shoplifting, vandalism, or robbery generally occur.

The day of the week also influences the likelihood of criminal incidents. Weekends, in particular, witness increased foot traffic and a higher probability of criminal activity.

The Pinkerton Crime Index equips retailers with a valuable tool to continuously analyze crime data and adapt security measures to address prevailing risks and emerging trends. Embracing proactive security measures and staying abreast of crime trends enables businesses to prioritize security resource allocation and technology investments, and create a safe shopping environment for both their employees and their customers.

Connect with the leaders in crime analytics today!

Email us at product.info@pinkerton.com to schedule a demo.

P.M. to 6 P.M.

Pinkerton Crime Index Dashboard showing crime risk in Manhattan

Chart depicting the change of crime risk across time of day and day of week. The crime risk increases most from 4

David Thompson, CFI

Thompson is the president and partner at Wicklander-Zulawski & Associates, providing investigative interview and interrogation training to a global audience. He has served as a subject-matter expert in developing curriculum and providing consultation to investigators, attorneys, and the academic community. He can be reached at dthompson@w-z.com.

© 2023 Wicklander-Zulawski & Associates, Inc.

The Power of Choice: Autonomy in the Investigative Interview

IDeveloping rapport should be an organic and natural process, where both parties are engaged in the discussion.

f I tell my 3 year old nephew that he has to eat his broccoli, he instinctively will resist the request. Maybe it’s because we’re both focused on the dessert that will follow, but like most people, when commanded to do something, we naturally tend to be skeptical and resistant to the request. The “command” creates a negative perception of the request itself (such as eating broccoli). Alternatively, providing a choice as a part of the request creates a different dynamic in the decision-making process. If I tell my nephew that he should eat his vegetables but can pick between broccoli or peas, he’s now in control of the situation. Depending on the level of cooperation needed, I could even ask him to eat his vegetables (because he wants to be big and strong), but he should decide how much he needs to eat to achieve that goal. The rephrasing of the request allows the “subject” to decide for themselves, which generally creates a more cooperative environment because they are empowered to decide. Rational decision making is an important part of the investigative interviewing process. Techniques that rely on emotionally overwhelming a subject or demanding compliance can result in inaccurate information, liability for the organization, and increased resistance. After all, it’s the subject’s decision to cooperate, to disclose information, to provide a statement, or to even stay engaged in the discussion at all. Demanding any of the above not only causes potential legal implications but also works directly against the principles of rapport development with the interviewee.

The Choice of Leaving

In most circumstances, interviews in the private sector are non custodial, meaning that the interviewee is free to leave the conversation at any time. Although there may be disciplinary action taken for insubordination or failure to cooperate, employees are generally free to leave an investigative interview.

In situations where employees are legally permitted to remove themselves from a conversation, it is important that investigators create an environment that promotes conversation.

The setup of the interview room is a crucial part of this process. An improper setup, such as blocking the exit from the interviewee, will not only minimize the perception of autonomy for the subject but may also increase liability for the organization. An obstructed door or too many people in the room may create a perception of custody or forced compliance from the subject, resulting in legal implications and increased resistance. Interviewers should not only ensure the room is set up appropriately but also communicate (per company guidelines) the voluntariness of the situation. Some organizations will explicitly state that the subject is free to leave at any time, while others may simply remind the person that the conversation is voluntary. This becomes a critical consideration if the subject asks, “Am I free to leave?” or states, “I don’t have to sit here and talk to you!” Interviewers should be prepared to handle these objections with the appropriate, non custodial response.

The Choice of Talking

“Tell me about yourself” should not be a demand for sharing personal information and may feel intrusive depending on the context in which it is presented. Imagine somebody approaching you while in public, and after introducing themselves, they simply request, “Tell me about yourself.” For most people, this will cause a moment of panic or uncertainty, while others may shut down completely, as they struggle to determine what is most important (or most entertaining) to share. Developing rapport should be an organic and natural process, where both parties are engaged in the discussion.

The power of choice can be illustrated in this portion of the interview by creating an environment where the interviewee decides what to share and to what extent. There is no requirement for the subject to tell the interviewer “What they do outside of work” or “What they do for fun,” although these topics may often be the result. Interviewers should initiate rapport but be aware of the areas in which the subject may feel more—or less—comfortable sharing. Any forced cooperation in this stage of an interview will only serve as a detriment to any rapport-building efforts made throughout the process.

The Choice of Disclosing

Although the interview may be focused on obtaining details regarding an incident, any desperation or demand for cooperation will often work against this effort. It may seem obvious that it is up to the person with the information to decide whether they want to share it. However, that dynamic can be impacted by poor interviewing techniques. An investigator who gets frustrated during an interview (which can happen) may come across as agitated, demanding, and desperate. This often results in implicit threats or promises, closed‑ended questions, and the revealing of evidence.

Instead, interviewers should be transparent and genuine during the conversation about their investigative process. In general terms, the discussion of the available investigative resources serves to inform the interviewee that there are many available tools to conduct a credible investigation that remove the sole reliance on a confession to “close the case.” Additionally, by providing the Statement of Transparency, the investigator communicates to the subject that the investigation will continue, regardless of their decision to share information. This statement provides the subject with the insight that the investigation is not

fully reliant on their cooperation while also suggesting that the interviewer may uncover information after the interview has taken place. This combination will allow the subject to make a rational decision to provide available information.

The Choice of Providing a Statement

Obtaining a statement from the interviewee is an important part of the evidence collection process and serves as a valuable tool in memorializing the conversation. However, interviewers must remember that this is a voluntary step and one that must be communicated as such. Interviewers are often heard making claims such as “we need you to write a statement detailing what we discussed” which provides little choice for the subject. This type of request also projects desperation for compliance, suggesting that the interviewer or organization is in “need” of cooperation. Instead, an interviewer can inform the subject that they “have the opportunity to write down what we discussed.” Using “need” versus “opportunity” communicates two very different messages to the subject. The first of desperation on the part of the interviewer and the latter one of autonomy on the part of the subject.

A statement should only be obtained through a voluntary and willing process. Any command that dictates the statement content or even that it be written may pose a risk to the voluntariness of what was provided. Outside of the potential legal implications, statements obtained through a voluntary and transparent process tend to be less confrontational and more comprehensive in recapping what was disclosed. Ultimately, as my nephew will tell you, broccoli tastes better when you decide to eat it—versus somebody else forcing the issue.

Providing a choice as a part of the request creates a different dynamic in the decision-making process.

Scan the QR code and answer questions about this article to earn CEUs towards your CFI designation or to learn more about the advantages of becoming a Certified Forensic Interviewer.

When Did Counterfeit Become Cool?

By Courtney Wolfe

Once upon a time, counterfeit luxury goods were considered a fashion faux pas. If you had a fake Birkin bag or Gucci belt, the point was for people to believe it was real—you certainly weren’t bragging about the money you saved or sharing the source of the counterfeit item.

Unfortunately for high end retailers, times have changed. There seems to be a growing comfort with—even preference for—counterfeit luxury goods. According to the US Patent and Trademark Office, counterfeiting is the largest criminal enterprise in the world, with domestic and international estimated sales of counterfeit and pirated goods totaling between $1.7 and $4.5 trillion a year.

“It’s becoming more and more socially acceptable to have replicas,” said Charles Olschanski, CFE, CFI, senior director of global protection for the Americas and global brand protection for Tiffany & Co. “It’s become a trendy thing.”

One reason for this, Olschanski said, is the popularity of online selling—consumers no longer have to rely on shady street vendors. In fact, they don’t even have to go to online marketplaces like eBay. Many stumble upon fakes simply by searching hashtags like #Chanel or #Gucci on Instagram and TikTok.

A study by the World Economic Forum, “Social Media and Luxury Goods Counterfeit,” shows that close to a fifth of all items tagged as luxury goods on Instagram are actually fakes. Of the around 150,000 posts tagged with luxury good brand names that were examined by researchers, 20 percent came from accounts based in China, Russia, and Malaysia. Looking into 20,000 counterfeit good accounts, researchers discovered that these accounts had posted more than 140,000 images within a three day span.

The posts typically feature an image of the counterfeit good along with contact information so buyers can contact sellers through encrypted messaging apps like WhatsApp or WeChat, making these operations incredibly hard to track or shut down.

Many of these counterfeit items are classified as ‘super fakes’ which are so similar to the originals that it is nearly impossible to tell them apart. The manufacturers of ‘super fake’ handbags source the same materials as the original designers for the bag, lining, and stitches. These fakes are then priced at only 5 percent of what their legitimate counterparts are being sold for, making them hard to resist—especially in a world where finding a good ‘dupe’ has become trendy.

“The quality of the counterfeits has improved over the years as certain technologies become more available and cheaper to use,” said Angelo Mazza, partner at NYC based law firm Gibney, Anthony, and Flaherty, LLP. “The internet and the boost from the pandemic significantly improved the ability of sellers to reach and sell to consumers directly.”

The Thrill of the Hunt

One way consumers are finding counterfeit luxury goods is through online communities like Reddit. One subreddit, r/RepLadies, which described itself as a happy place for

discussions about replicas and “fashion at any level,” boasted more than 200K subscribers and many more visitors at its height. And its fans aren’t simply looking for a cheap bag—they’re passionate about the hunt. According to a self reported survey the group released, subscribers spent more than $3 million on replicas in 2021, and its members included chief executives, venture capitalists, a diplomat, and a Big Tech ethics adviser.

“It’s becoming more and more socially acceptable to have replicas.”

“Consumers have shifted from possessing counterfeits as an embarrassment to having them as a social status symbol,” Mazza said. “There is all the talk about various types of super dupes across many product lines. But what buyers forget is that these products are made in the same disreputable, unsafe factories that exploit low wage workers or children to make products. Seeing so many posts or videos of products on sites creates a sense of normalization and acceptance of the fakes, and people ask, ‘How can it be bad if it is so pervasive?’ There has definitely been a change in attitudes over the years.”

Charles Olschanski

In 2022, one story by The Cut, “The Rich New York Women Who Love Their Fake Birkins,” shocked many but likely led quite a few to embrace counterfeit goods themselves.

The story followed Lisa, a 38 year old woman living in Manhattan, who has a “super rich friend” with a massive Birkin collection, a $10 million house in the Hamptons, and a private jet. But while this friend clearly has the means to purchase authentic Birkin bags, she prefers to purchase fakes at parties similar to those that used to peddle Tupperware to housewives.

Lisa has a household income of $3 million a year and already owns a number of authentic Birkin bags. But once she learned about the fake handbag world, she sold almost all her authentic bags, using the cash to buy counterfeit Birkins instead. She spent around $10,000 on the fake bags in just one year.

Another woman interviewed for The Cut‘s story claimed to own hundreds, probably thousands, of counterfeit luxury items including nearly a hundred bags and a fake Bulgari necklace that cost more than $10,000. “It’s all about the atavistic thrill of the hunt—the feeling of getting a bargain,” explained the former real estate developer who retired at the age of 30. “I don’t just want a thing; I want to feel like I’ve gotten it for a deal.”

After all the attention The Cut’s story garnered, the subreddit went private “due to safety concerns.” When you try to go to the thread now, a message appears saying they will not be adding any approved users at this time and will not respond to messages. Now, only previously approved members can view and take part in its discussions.

This caused pandemonium among fans of the subreddit, though alternatives were promptly born (r/LuxuryReps, r/Reppies, and r/FashionReps are just a few).

“Without a doubt, the counterfeiters have learned the secret sauce to the algorithms and the best way to conceal the sales within the platform structures.”

Angelo Mazza

Many members of these threads are even participating in the illegal trade of items, acting as middlemen, shipping the bags over in bulk, and hosting the “Tupperware parties” where they can sell the bags to friends and family. And while they are passionate about their online community of fellow counterfeiters, most are not open to the real world about the fact that their bags are fake. Increasing numbers of “dupe influencers,” are, however.

Generation Z and Dupe Influencers

According to a June 2022 report by Sydney Fenton in the Chicago-Kent College of Law’s Journal of Intellectual Property, “dupe influencers are influencers who use their social media accounts to promote fakes of sought after designer products.”

These influencers generate millions of likes, views, and shares by advertising counterfeit products on Instagram, YouTube, and TikTok. Videos about where to find fake luxury goods have even become an entire genre on TikTok, the social media platform of choice for most belonging to Generation Z.

According to Entrupy’s 2023 State of the Fake report, roughly half (50.7 percent) of Generation Z is “indifferent” or “not concerned” about buying counterfeit merchandise. 52 percent of shoppers aged 15 24 said they had purchased a counterfeit product online in the last year, and 37 percent admitted to doing so intentionally. One in three said they either found it hard to tell a genuine item from a fake or simply didn’t care enough to try. A vast majority (nearly 73 percent) are “satisfied” with the fakes they own.

Entrupy’s report also showed that Gen Z is starting to buy luxury products at age 15—three years younger than millennials—and is projected to constitute one third of the luxury market by 2030. A 2019 study from the International Trademark Association that polled 1,250 Gen Z Americans found that 73 percent purchased counterfeit items because they could not afford the authentic items.

“While it used to be cool to wear expensive brands, it is now cool to wear dupes,” Fenton wrote. “Gen Z is more interested in being smart by getting the look of an expensive brand for a fraction of the price. It is a new phenomenon where the sellers and influencers are open about counterfeiting, ignoring its illegality and, in fact, bragging about it. Unfortunately, it likely has only gotten worse since the 2019 report with the growth of TikTok and the rise of dupe influencers.”

When social media influencers endorse a product, 35 percent of consumers believe the influencer has personally evaluated the product, and 30 percent believe it must be safe to use, according to a new study from the University of Portsmouth. A survey of 2,000 people in the UK shows that young consumers are more likely to fall prey to dupe

influencers, with those aged 16-33 being three times as likely to purchase endorsed counterfeits compared to older adults. Males account for 70 percent of all buyers due to their “risk tolerance and susceptibility to influencers.”

“Without a doubt, the counterfeiters have learned the secret sauce to the algorithms and the best way to conceal the sales within the platform structures,” Mazza said. “And then creating the content begets more content which then drives the eventual trends that lead to sales.”

#DHgate, a Chinese business to business marketplace and destination for designer knockoffs, boasts 3 billion views on TikTok of people flaunting their counterfeit purchases. Research released in 2021 by Money.co.uk identified Gucci as the most counterfeited luxury brand on TikTok with more than 13.6 million views of hashtags such as #fakegucci, #guccifake, and #fauxgucci in a single 24‑hour period. Rolex came in a close second with 11.7 million views, followed by Louis Vuitton with 2 million, and Dior at 280,000.

“We started working in the online space back in the late 90’s,” Mazza added. “In the early days, eBay was the major problem and there were not very many options for online purchases. Now, we see constant change as platforms jockey to be the most followed and influential. Even within a year, the

Victoria Chudinova / shutterstock.com

rankings shown in the number of takedowns reflect social media dominance. The ability of counterfeiters to monetize and exploit social media as a sales tool to sell goods to both the knowing and the unwitting has increased. The role of influencers to promote counterfeits via hidden links and deceptive promotions is all too common.”

What Can Retailers Do?

As the problem of counterfeiting grows larger for luxury brands, loss prevention and asset protection teams are often being tasked with solving it. Charles Olschanski has had this responsibility for years and has witnessed firsthand how the counterfeit market has evolved and grown.

Crucial when managing brand protection is keeping an open line of communication with senior leaders and the marketing team to remain aware of what’s going on with the company, and how that may impact the counterfeit market.

“When you introduce a new product line, you have to anticipate that [counterfeit versions of that line will start popping up] ahead of time, and dedicate time and resources to that,” Olschanski said. “If they’re planning on a large marketing campaign, you have to prepare for that.”

And brand protection must go far beyond the brick‑and‑mortar store in 2024.

“Every brand has had to pivot to the online selling environment—it’s nothing new, it’s been heading that way

for over a decade, so one of our main goals is to keep that space clean,” Olschanski continued. “So, we search around the internet for counterfeit Tiffany products. We want to ensure the first few pages of internet searches for Tiffany are clear of any counterfeit products. And if we see any counterfeiting activity, we try to jump on that and eliminate that as soon as possible.”

Kaspars Grinvalds / shutterstock.com

“Contrary to popular belief, counterfeiting is not a victimless crime.”

Mark Dawson

Traditional LP investigators often struggle with identifying modern counterfeiters, so teams must take unique approaches. Tiffany & Co has even hired social media savvy college students as investigators, Olschanski said.

Gibney, Anthony, & Flaherty LLP’s IP Group works to help companies protect their intellectual property in both the brick and mortar and online spaces.

“We focus on offering customized enforcement services based on specific issues facing a brand,” Mazza explained. “Whether it be through social media or tracking down physical locations, we develop leads and work with our partners to mitigate those issues, including supporting criminal and civil solutions.”

This effort starts with the group’s in-house team of researchers and brand protection specialists and continues with attorneys and investigators who work toward obtaining criminal or civil remedies.

With all of this experience, Mazza has some sage advice for retailers: “You have to look at enforcement as a layered process. No one action will resolve the problem. However, if you are able to distinguish where the problems are and how limited resources may be maximized in each area, it is a start. Think about Customs’ role, and local law enforcement as a possible resource once goods are in the country. Develop a strong network of trusted investigators with deep contacts with law enforcement and be ready to stand behind your enforcement efforts with any assistance they may request. And when the right opportunity occurs, do not be afraid to

initiate a civil suit to send a message to counterfeiters and your customer base.”

Mazza added that while retailers have historically been afraid of publicizing counterfeit issues with their brand, social media provides a great opportunity to engage with customers across platforms as a part of brand protection efforts.

“There is an opportunity for savvy brands to take advantage of the reach and interest of consumers by using the platforms themselves to get messages out that address the harms and issues associated with counterfeit goods,” he said. “Brand engagement cannot be limited; it has to adapt as consumers evolve.”

Prosecuting Counterfeiters

While finding counterfeiters is hard enough, prosecuting them is even harder.

“It’s a tough situation with many elements that play into it,” Olschanski explained. “On the criminal side, it’s difficult for law enforcement to buy into this. They’re getting better, but they have so much going on, and their focus and targets are on some very serious crimes. It’s hard to get them to understand this is a crime sometimes, so there is the education side of things, because there are ties that go back to organized retail crime, terrorism, and human trafficking. We find that, in a lot of cases, drug traffickers have their hands in counterfeiting because of a lack of punishment. So, we have to keep pushing the legislative side of things for states, because each state has different laws on the books.”

He added, “On the civil side, it’s expensive to enforce, so you have to be very targeted and strategic. You can’t just sue anyone under the sun—in fact, suing doesn’t really work. So, you have to be very targeted and strategic. You want to litigate, but you want to do it in a smart way.”

“There are many jurisdictions in the US where law enforcement is willing to take on counterfeiters and bring all these efforts to fruition,” Mazza insisted. “In the hierarchy of crimes counterfeiting may be, unfortunately, viewed as victimless or less important than other crimes. There is always an effort to raise the profile of counterfeiting as a crime and its impact on the economy and communities.”

Often, prosecuting counterfeiters is a long-term effort, and success requires patience and persistence.

“Many of these cases may take a year or two or more (depending on jurisdiction) to make their way through the system,” Mazza said. “Patience and commitment are key aspects of the process. It is also important that you treat the takedowns or removals as possible future cases. For this, evidence is key. When dealing with an online presence you need to preserve the listing and site with all of the images and links that exist—your case will depend on this. It goes without saying, but this will require some resources. Sometimes, they are available, and other times, you have to come up with creative options. In the end, a good criminal case will lead to jail time but also asset forfeiture for law enforcement and possible restitution for the brand. Civil cases are an option but do your research first and determine if the suit is meant to be a deterrent or seeks significant (and attainable) monetary damages.”

Prostock-studio

Ultimately, retail companies, social media and online selling platforms, and government entities all need to work together to curb this growing market.

Homeland Security Investigations (HSI) is one group working to fight counterfeiting—a crime they also notice has grown in scale as consumers have become more dissociated from its dangers.

“Contrary to popular belief, counterfeiting is not a victimless crime,” said Special Agent in Charge Mark Dawson of HSI Houston. “It significantly impacts small businesses that do things the right way, harms consumers who unknowingly purchase substandard items, violates the rights of the trademark holder, and in some cases the illicit proceeds are used to fund transnational criminal activity such as human trafficking and drug trafficking.”

Intellectual property theft costs the American economy as much as $600 billion a year, according to the FBI. After extensive lobbying, Congress finally passed the INFORM Consumers Act, which requires online marketplaces to verify high volume third party sellers, hopefully curbing the sale of stolen and counterfeit products.

Still, there is much work to be done before retailers can rest easy.

“Laws and regulations are only as good as the enforcement mechanisms that drive compliance,” Mazza said. “INFORM may put some of the low hanging fruit‑type sellers out of business.

However, the bigger sellers are far too savvy to be impeded by being asked to provide data.”

Now the SHOP SAFE Act is being pushed as another solution to making platforms more accountable for the sale of counterfeit goods. “The final Act needs to have both enforcement teeth, and as few carve outs as possible that would prevent it from making a significant difference in the counterfeit trade,” Mazza explained. “We are at a point where the technology and capabilities of the platforms are much better than they were a few years ago. That expertise and technology has to be brought to all platforms to actually impact the volume of sales and goods entering the country.”

In the meantime, collaboration and conversation is crucial for retailers.

“For any brand, it’s important to speak with peers and share best practices,” Mazza concluded. “No sense in reinventing the wheel when resources are scarce. Many brands have faced the same or similar issues and developed a game plan. Learn from what is being done and develop from that your best course of action. Counterfeiting will not go away or disappear, not so long as there is a demand for the products. However, you can work to make it more difficult to access those goods on popular platforms or to pay for the goods by addressing the payment processor part of the transaction. The counterfeiters are always adapting their business model to stay a step ahead. Be in tune to the changes and ready to pivot to address those changes.”

Dave Shugan, CFI

Shugan, CFI, is a 30-year retail industry veteran specializing in asset protection, risk resiliency, audit, safety, and supply chain integrity. His career path includes leadership roles at Carter’s and Cracker Barrel Restaurants, among other retail brands. In addition to his corporate roles, he has been a member of both the National Retail Federation’s (NRF) Loss Prevention Advisory Council and the Retail Industry Leaders Association (RILA) Council. David lives in Atlanta with his family and can be reached at dshugan@hotmail.com.

The Interaction of Networks and Relationships

I

n the complex dance of a career in loss prevention and asset protection, the steps we take are often measured by the networks we build and the relationships we nurture. With three decades in the field, I have witnessed many connections unfold into meaningful partnerships that have not only shaped my career but also the contours of the industry. This article delves into the subtle yet significant shift from forming networks to fostering relationships—a journey that begins with an exchange of business cards but evolves into a mutual exchange of value and knowledge.

The essence of our roles in LP extends beyond protecting assets; it is about nurturing a community where giving precedes receiving and where relationships are the basis of progress.

From Networks to Relationships: The Genesis of Professional Connections

My journey into the realm of LP began serendipitously in 1993, with a chance introduction leading to an interview at a small Chicago based retail company. This company held a consulting contract with WZ, a name synonymous with excellence in the industry. Under the tutelage of WZ and industry visionaries, my foundational professional network began to take shape.

Then there were leaders like Joe Hardman. Joe emphasized the importance of tangible gestures, like the value of a handwritten thank you card, which underscored the significance of relationships over mere networks. These lessons were instrumental in transforming initial introductions into enduring relationships.

Mentorship and Impact: Cultivating Enduring Bonds

Mentorship plays a crucial role in career development. Walter Palmer, for example, was more than a mentor; he taught me the art of careful decision making and the importance of looking at situations from multiple angles, embodying the philosophy of ‘stepping backward to move forward.’

These insights were invaluable, turning colleagues into mentors and mentors into confidants.

Tom Meehan and I co presented at numerous conferences, sharing insights on technology and industry challenges. Our exchanges were a testament to the power of collaborative thinking and the growth that comes from trusted professional relationships.

Leadership and Giving Back: The Art of Generosity in Loss Prevention

True leadership in loss prevention is marked not just by achievements but by the willingness to give back. Leaders like Joe Larocca exemplified this. Joe’s openness to seeking and offering advice helped me appreciate the importance of proactive relationship building over passive networking.

In my own practice, I mirror this approach and pay it forward through mentoring and sharing experiences and understanding that our industry thrives on sharing knowledge, support, and shared victories. Digital tools like LinkedIn are instrumental in this process, enabling us to connect, comment on each other’s work, and continually learn from one another.

Beyond Networks: Forging Relationships That Define Success

The essence of our roles in LP extends beyond protecting assets; it is about nurturing a community where giving precedes receiving and where relationships are the basis of progress. As we continue to navigate our paths, let us remember that networks may open doors, but it is the strength of our relationships that will allow us to transcend them.

In this industry, to lead is to serve, to grow is to give, and to succeed is to connect. Our networks are the starting point, but the relationships we cultivate with time and generosity are our true legacy.

LP Magazine is recognizing the unsung heroes of the loss prevention and asset protection industry. In an ongoing column, we will highlight those among us who are going above and beyond to help their community and world around them to be a better place. Whether it be an individual or a team, donating time, money, or bringing joy to others—we want to say, “thank you” and let our readers get to know you better. To nominate an individual or an entire LP team, fill out the form at losspreventionmagazine.com/something-good.

Lions and Tigers and Bikes, Oh My!

Kevin Larson, CFI, senior manager of center store product protection for Kroger, has always been passionate about giving back. It was this passion—and a move to Columbus, Ohio—that led to years of dedicated charitable involvement with the Columbus Zoo and Aquarium, and Pelotonia.

“I have had a very long and blessed career in the loss prevention field, and my wife and I do not have any children, so we have always turned our attention to charitable opportunities,” Larson said. “We really wanted to give back to things we were passionate about.”

Even before moving to Columbus, Kevin and his wife Sue had heard about the world famous Columbus Zoo and Aquarium—the home of Jungle Jack Hanna.

Once settled, it didn’t take long for the couple to receive an invitation to attend a small black tie event at the zoo to benefit conservation.

The rest is history,” Larson said. “We are now going on year 12 or so of our involvement with the zoo.”

After a year of working with the zoo, Kevin approached the vice president of philanthropy and asked what more he could do to provide support. From this, Kevin and Sue were asked to sit on the committee to help steer the zoo’s largest donor event of the year, Wine for Wildlife. Two years later, they were asked to chair the event. They did so for three years, during which they raised approximately $500,000 for animal conservation. Now, the Larsons are in their second year of chairing a summertime fundraising event called Zoofari.

Out of all of these amazing opportunities, the highlight was probably when the zoo opened a new habitat for sea lions and harbor seals, called Adventure Cove. Kevin and Sue made the financial commitment to support this new habitat with a generous donation and were even able to name one of the areas in the Jack Hana Animal Encounter Village. They settled on the name Lark’s Landing—LAR for the first third letters of their last name and KS for Kevin and Sue.

Kevin and Sue are also strong supporters of Pelotonia, a two day cycling event that raises money for cancer research. The ride has been happening for over fifteen years, and over this span, it has raised over $283 million with 36,941 riders, 23,000 volunteers, and 691,000 donors.

“I have been riding for fourteen years in the event and I ride the 100 mile route, which starts in downtown Columbus and ends in Gambier, Ohio,” Larson said. “Like many of us, cancer has affected my family and friends very deeply. My mother passed away from the disease that beat her two years ago, though, if you asked her, she probably would say it was a tie. My mother in law passed away a few years ago as well and my sister is currently battling and fighting for every day of her life. It affects all of us in some way or form. It is a terrible disease, and I am doing whatever I can to help find a cure.”

In the fourteen years he has participated, Kevin has raised $48,000 for cancer research.

“I am grateful for the many peers in this industry who have supported my yearly efforts by donating to my ride,” Kevin added. “I ride for those that can’t. There is no hill so steep that it can compare to the pain that comes from cancer treatments. Each time I get exhausted and feel like giving up, I think about my mom, my sister, and all my other family members, friends, and millions of people that I never knew. What they had to go through battling cancer compares to nothing I am feeling from riding a bike for 100 miles.”

Donate to the Columbus Zoo at columbuszoo. org/donate. Donate to Pelotonia at pelotonia.org/profile/KL0004.

“I ride for those that can’t. There is no hill so steep that it can compare to the pain that comes from cancer treatments.”

Tom Meehan, CFI

Meehan is retail technology editor for LP Magazine as well as president of CONTROLTEK. Previously, Meehan was director of technology and investigations with Bloomingdale’s, where he was responsible for physical security, internal investigations, and systems and data analytics. He currently serves as the chair of the Loss Prevention Research Council’s (LPRC) innovations working group. Meehan recently published his first book titled Evolution of Retail Asset Protection: Protecting Your Profit in a Digital Age He can be reached at TomM@LossPreventionMedia.com.

Social Engineering: A Rising Threat

Social engineering is a topic of increasing concern in the cybersecurity world, including retail loss prevention. When the term was first used around the turn of the twentieth century, it referred mainly to government programs designed to nudge public behavior in a certain direction. But in the twenty-first century, it has much more sinister connotations.

It may be a modern-sounding term, but social engineering now refers to something as old as civilization itself: the tendency of some people to take advantage of others and steal from them. We identify such people by a few names: grifter, swindler, con artist, etc. but the most commonly used word today is one that emerged in the 1960s from the carnival subculture: scammer.

false, and even incoherent. And it’s asking you to do something unusual—change your password, for instance, or reveal some other personal information.

What you shouldn’t do in that situation is respond directly, reveal any personal data, or worse, click on an accompanying link. Instead, it should be simple enough to approach Bob directly: “Hey, did you send me an email this morning?” That will probably clear it up quickly.

By staying agile and adaptive, retailers can better navigate the challenges posed by geopolitical risks and maintain a resilient supply chain.

There was a time when scammers had to get out into the world and interact with people to score their ill-gotten gains. They would cultivate personal relationships with vulnerable business owners, rich widows, or ordinary consumers. Now they can scam people while relaxing at home in their pajamas. Some will use impersonal methods, such as harvesting credit card numbers from skimmers or unsecured Wi-Fi connections. But more commonly, like the con artists of old, they approach us as human beings and exploit our inherent human vulnerabilities.

The Scammer’s First Ploy: Gaining Your Confidence

The “con” in con artist is short for confidence. The crook infiltrates the victim’s world by gaining their confidence. That’s still the method used by today’s online scammers. The easiest way for the scammer to approach a victim is to impersonate a friend or other trusted entity.

Example: You receive a seemingly innocent email from Bob, your trusted business colleague. But something about it seems odd. The language isn’t what Bob would normally use. It comes across as stilted,

Social engineers will also impersonate other entities you trust: your bank, your credit card company, your mortgage company, USPS, FedEx, the IRS, an asset protection associate, your internal IT department, your utility company, etc. They will inform you of a problem with your account—and that you must take action immediately! Persuading you to act quickly without thinking is a surefire way for them to get what they want. Again, the wise course is not to take the bait. Instead, if you’re not sure, contact the bank, the post office, or the credit card company directly. You’ll probably find out it was a scam.

Social Media: A Scammer’s Paradise

For those who engage in social engineering, social media platforms are like a cocktail party full of gullible guests. The participants are already open to interactions and inclined to share information about themselves. Seemingly innocent Facebook posts will invite you to state the year you were born or the name of your favorite music group. Those posts are not just for fun. They’re tools designed to create a profile of you to be exploited later. People on Facebook or LinkedIn routinely receive invitations to connect with “people” with whom they have no natural connection. For men, the invitation may include a photo of a beautiful woman to enhance the attraction. The goal is to cajole you into revealing information that can be used for fraudulent transactions or even identity theft.

Hacking Businesses the Easy Way

More businesses nowadays employ sophisticated cybersecurity programs. However, the trend toward remote working has opened an area of vulnerability: many employees now access their companies’ systems from their home computers. How secure are those home computers? That’s the portal social engineers can sometimes use to get inside a company’s system and cause havoc. If employees aren’t vigilant about their own cyber health, they can inadvertently expose themselves and their employers to serious damage.

For workers, managers, consumers, and virtually everyone else, following a few simple guidelines can insulate them from the worst perpetrators of social engineering.

Five Don’ts for Cyber Safety

1. DON’T believe everyone who approaches you.

2. DON’T reveal personal information to anyone with whom you’re not familiar.

3. DON’T click on any link you’re not sure about.

4. DON’T use the contact info provided by a questionable source (verify independently).

5. DON’T be pushed to act in a hurry.

The threats posed by social engineering are especially pertinent for individual consumers and the financial institutions that often absorb the losses. But they impact the retail industry and loss prevention sector as well. Fraudulent transactions cost retailers lost time and resources as well as reputation. And when scammers access a company’s internal system they can steal directly from the company and other individuals within it, causing huge losses.

Two common types of social engineering attacks that retailers frequently encounter:

1. Phishing: The attacker sends fraudulent communications that appear legitimate, often claiming to be from a trusted source. The goal is to trick the recipient into revealing sensitive information, installing malicious software, or transferring funds.

2. Vishing (voice phishing): The attacker impersonates someone trustworthy via phone call, aiming to trick the employee into revealing sensitive information or performing actions that favor the attacker.

Vishing is arguably the most prevalent form of social engineering that retailers encounter currently. It typically involves a caller posing as someone with authority, such as a representative from the IT department or a loss prevention associate. These impostors

often request that a transaction be authorized or pushed through. Frequently, the caller will claim that they are conducting a system test, possibly involving a gift card transaction, and will then request validation for it.

Given the risks associated with these types of social engineering, the following tips can help retailers protect their businesses:

1. Awareness and Training: Regularly educate employees about social engineering tactics. Make them aware of tactics like phishing or vishing. Encourage them to report suspicious activities.

2. Policy Enforcement: Implement strict policies about handling unknown devices, clicking on links in emails, and releasing sensitive information over the phone. Make sure these policies are enforced and regularly updated.

3. Verification: Encourage staff to verify the identity of individuals before releasing any sensitive information. This could be as simple as making a call back to a known number or checking with a supervisor.

4. Secure Systems: Ensure your IT systems are secure and up-to-date. Regularly update and patch all systems to protect against malware and other threats.

5. Incident Response: Have an incident response plan in place. If a breach does occur, knowing how to respond can minimize damage.

For these reasons, as well as for the preservation of basic social cohesion, it’s imperative for retailers, law enforcement, and ordinary people to know the tactics of social engineering—and effective ways to defeat them.

The trend toward remote working has opened up an area of vulnerability: many employees now access their companies’ systems from their home computers.

“If we measure the efficacy of

subject interviews by evaluating queries, analyzing responses, and appraising abidance to interview principles, we can ensure all our investigations will be based only on reliable facts.”

What Can We Learn from Subject Interviews?

By Gil Zamora

After years of interviewing eyewitnesses as the forensic artist for one of the largest police agencies in Northern California, I found myself championing efforts to convince investigative practitioners about the benefits of mindful interviewing. Whether it was from my appearances on the Oprah Winfrey Show, Forensic Files Trail of a Killer, the Dove Real Beauty Sketches campaign, or as a featured speaker at Harvard University discussing how forensic artists might be wrong about their interview process. I believe it has always been my interview technique that has facilitated authentic recollections from eyewitnesses, guided by principles mindful of what I call “cognitive evidence.” Still, I’ve found that investigators find authentic recall less useful and instead resort to collaborating with their eyewitnesses to produce statements that align with their investigative theories.

At the same time, I’ve found the confidence level of many interview practitioners overstated because their interview strategies are rarely scrutinized. It is quite possible that professional investigators expect their subjects to reveal all the information precisely, regardless of their memory of the event. The problem with this investigative mindset is that it can lead to gathering questionable facts. Even cognitive

psychologists test the veracity of their eyewitnesses instead of evaluating the effectiveness of interviewers gathering facts about the staged event. Ideally, if we measure the efficacy of subject interviews by evaluating queries, analyzing responses, and appraising abidance to interview principles, we can ensure all our investigations will be based only on reliable facts.

Complacent Interview Strategies

Over the last forty years, corporate and government interview practitioners have engaged in gathering information from subjects utilizing interview methods that demand professionalism, encourage rapport, and employ interview tactics that assume, with enough guidance, that important information will be revealed. However, many investigative administrators soon realized that relying on the heuristics of experienced investigators might be influencing their department’s effectiveness at solving more cases. So, a systematic process for conducting interviews was adopted to improve their collection of evidence.

One of these interview methods employed by law enforcement agents and corporate investigators is the cognitive interview (CI) technique developed by Ronald P. Fisher, PhD, and R. Edward Geiselman,

PhD. Their acclaimed interview style encourages the eyewitness to recall events by accessing memory codes through augmented communication techniques. In their book, Memory-Enhancing Techniques for Investigative Interviewing—The Cognitive Interview (1992), they describe how interviewers should direct the eyewitness toward memory codes to assist them in revealing what happened. The interviewer, while actively listening, is expected to identify scenes (segments of their statements) that they can probe further to clarify details regarding the suspect or crime elements.

The structured approach of the CI is unclear about the dangers of memory contamination or the limitations of eyewitness memory. Instead, it relies on the investigator to enhance recall by abiding by a systematic process that includes context reinstatement (CR), report everything (RE), recall from changed perspective (CP), and recall in reverse order (RO). Undoubtedly, both the novice and experienced investigator maneuver in a memory minefield to retrieve as much information as possible, regardless of the reliability of statements.

Let’s take a moment and look at how the CI interviewer might identify scenes in two investigative examples and then I’ll offer you an example of a mindful inquiry. First, in a robbery investigation, the investigator might consider the following scene as the victim recalls the event in the “report everything” phase of the interview. The robbery victim describes the suspect approaching with a weapon and demands their bag. Because the investigator believes the eyewitness had a good look at the suspect, saw the weapon and clothing, and maybe heard the suspect say something, the investigator sees this as an opportunity to ask about this scene in the change perspective or reverse order phases of the interview.

Next, in a retail theft crime, the eyewitness might describe the suspects entering the store as they move to the counter to steal merchandise. The investigator relies on this specific scene to encourage the eyewitness to recall more information about the race, age, and build of the suspect. They also focus on the clothing and any conversations they might have had with their associates. Eventually, the investigator makes a note of it and probes further in the next phase.

In each scenario, they’ll ask the eyewitness to consider events from different perspectives to improve the number of details recalled. The cognitive effort in exhausting these perspectives can be challenging for the eyewitness, which means the strategy for identifying scenes can be complicated for the novice interviewer and even problematic for veteran investigators. With this in mind, if the eyewitness is recalling details and the investigator is determining which scenes to probe into further, are they really listening to every detail?

Because the interviewer expects memory codes to activate accurate recall from the eyewitness, they may presume every detail just needs to be accessed. For instance, in our robbery example, if the investigator hears the eyewitness describe the weapon as being black and small, they might ask whether it was a semi-automatic pistol or a revolver. These questions might be relevant to this case, but consideration of how they were asked and how the eyewitness responded could be precarious for the veracity of the evidence collected. Let’s say the investigator asks, “You said it was a small black gun. Was it like this one?” The investigator then shows their Glock. 380 from their holster. The eyewitness might say, “I think so, I don’t really remember—I don’t know much about guns.”

Similarly, in the retail theft case, the interviewer might ask about the clothing of the suspects, and the witness says, “I think they were wearing black, but it could have been dark blue—it looked like a jogging suit.” The interviewer then asks, “Was it something like this?” and shows pictures of athletic jogging suits from a website. In both cases, when the investigator offers them choices (black pistols, athletic jogging suits) and the eyewitness selects one, this could be considered eyewitness memory contamination.

If, on the other hand, we approach the robbery interview in a mindful manner, we might ask, “What else can you tell me about the gun?” using an openended question versus a force-choice question. The eyewitness replies, “I’m sorry, but I really didn’t get a good look—I told you, I don’t know anything about guns.” We can be confident they have no more reliable information to offer.

Consequently, if we understand that in eyewitness recall sometimes that is all there is, we can avoid these dubious investigative tactics and alternatively concentrate on maintaining the integrity of the cognitive evidence collected.

Psychologists Focus on the Accuracy of Eyewitnesses

While psychologists have concentrated on the accuracy of eyewitness recollections, there is scant evidence about the effectiveness of interviewers generating dependable eyewitness recollections. Nevertheless, we can gain valuable insight into how eyewitnesses interact with their interviewers if we look closely at the experiments. In her 1996 book Eyewitness Testimony, Elizabeth Loftus, PhD demonstrated how eyewitnesses (college students) easily could accept information that was not present at the actual event observed. For example, in one experiment they asked eyewitnesses to view a video of an automobile accident and then asked how fast the car was moving before it hit or smashed into the other car. Later, respondents’ recollection of the speed of the vehicle increased by 43 percent

“While psychologists have concentrated on the accuracy of eyewitness recollections, there is scant evidence about the effectiveness of interviewers generating dependable eyewitness recollections.”

What Can We Learn from Subject Interviews?

because broken glass was present at the scene. The broken glass was post-event information that was introduced to see whether eyewitnesses would accept the associated details or not. Indeed, enhancing recollections by suggesting information that describes an event is important for interview practitioners to consider and avoid.

I’ve been lecturing in the justice studies department at San Jose State since 2017, and when I have the opportunity to teach the eyewitness interview course I have students participate in a modified version of the Deese-Roediger-McDermott (DRM) task. Originally developed in 1959 by Dr. James Deese and then renewed by Dr. Henry L. Rodiger III and Dr. Kathleen McDermott in 1995, the activity demonstrates how easily someone can accept false memories. Every time I present this memory task to university students and investigator audiences, they always come away amazed at how easily they believe they saw something, when in fact they didn’t.

to be more mindful and changed my interview environment to generate more reliable information from eyewitnesses. For instance, I knew from practicing meditation that focused attention could allow the eyewitness to consider their criminal event from a different perspective. Closing their eyes and taking deep breaths could help them settle in for my guided interview session. Likewise, the interior design of my office was transformed from the spartan decor of a police station to a welcoming refuge of comfortable furniture, living plants, a desktop waterfall, and the sounds of new age music playing on a 70-minute loop. Because of my interest in the psychology of human behaviors, I created an environment where being relaxed and focused would improve eyewitness recollection and recognition.

“When agencies or corporations have no mandate for administering interview assessments any fidelity investigators have for recovering the truth from their interviews is unknown.”

At the end of the presentation, I remind the audience of the dangers of introducing information in the spirit of clarification. Whether investigators are helping eyewitnesses come up with a word to describe a certain type of clothing, a style of weapon, a picture of a car, or showing photos of possible suspects, these are all types of post-event information that can be accepted by the eyewitness. After the official report is written, will we ever know what was an authentic recall from the eyewitness and what was implied by the investigator?

Deconstructing an Interview for Examination

When I considered writing The Mindful Interview Method (2023), I knew that I had to explain the evolution of my interview process for practitioners who might consider including it in their investigative toolbox. In other words, I had to explain my perspective on the art of interviewing and consider my experience as a forensic artist.

Even though I was a member of the Bureau of Investigation at the police department, I was an outlier for the types of victims I would interview. Most investigators would be assigned to a specific unit where they only dealt with certain types of crimes like robberies, sexual assaults, juvenile crimes, or fraud. I, on the other hand, was interviewing victims of all these felony crimes and more. With this in mind, my interest in the psychology of human memory led me to make changes to my interview technique and my office at the police department, where I would eventually interview thousands of eyewitnesses for the next seventeen years.

As a sworn forensic artist, I had complete autonomy with a law enforcement agency that was known for progressive ideas in leadership and training—that gave me confidence in challenging the status quo. So, I altered my interview strategy

Soon after starting my forensic art career, my improved interview style would be showcased on the Oprah Winfrey Show. The entire show was void of celebrities talking about their latest projects and instead examined the unreliability of eyewitness statements. Further, the show included psychologists and other experts in cognitive behaviors that explained how eyewitnesses were often mistaken. In our segment, I was one of three sketch artists asked to interview an audience member who had witnessed a theft—a staged event with a confederate victim in the audience. Meanwhile, as I was interviewing my eyewitness, she was called away by producers. Soon, she returned and asked me to add facial hair to her suspect sketch although she had previously described him as being clean-shaven. I was about 99 percent done with the sketch.

Nonetheless, in an actual theft case, I would have advised the investigator to consider sending me another eyewitness. In fact, when I met her she was unsure about her recollection because she said she was seated in the back and was obscured by audience members in front of her. All she kept saying was, “I can’t believe I’m going to meet Oprah!”

I’m sure the producers wanted to provide what cognitive psychologists call cross-race description issues. My eyewitness was an African American woman, and the male suspect was eventually revealed to be Caucasian. When Oprah asked me about my sketch, I walked her through my interview process and told her that I relied only on what the eyewitness said and nothing more. In the end, my sketch proved that eyewitnesses are unreliable despite my sketch resembling a male subject.

After retiring from law enforcement, I was asked by an international PR firm representing Unilever to participate in a marketing campaign called Dove Real Beauty Sketches. The video featured me interviewing real women describing themselves for a sketch and then comparing that sketch to one

where I interviewed other people interacting with the same woman. It was an amazing experience and introduced my interview technique to a broader audience. My interview method aligned with trauma-informed approaches that allowed these real women to reflect on personal issues that caused them to see themselves in a negative light. And yet, the others I interviewed found these real women to be more beautiful than they believed. Equally important, I stayed clear of making suggestions that would alter their authentic perceptions.

Years later I began lecturing at the university and had the opportunity to develop a course about my interview technique. I included research material that supported my theories about human memory and the psychology of how people process information. I decided that students taking the course might not be interested in becoming forensic artists and instead might find the process for gathering facts from subjects more applicable to their future careers. In addition, I had to reexamine my interview technique, pull back the trappings of a complex sketch interview, and retain only the elements that were at the core of recovering reliable cognitive evidence. After examining my interview technique, I realized I had been faithful to three principles for every eyewitness interview since 1995: respect for the eyewitness, accepting limited information, and limiting suggestive questions.

A decade before I retired, I began recording my sketch interview sessions to memorialize them for training and court testimony purposes. In preparing my manuscript, I decided to review several hundred of these interviews and select some for comprehensive analysis. I found that what made these interview sessions so successful was that they were buttressed by the mindful interview principles I was abiding by.

Since the principles were focused on the cognitive evidence I collected, the assessments I designed about these interview sessions resulted in reliability scores that deemed the interviews highly reliable, reliable, or less than reliable. As a result, the Efficacy of Eyewitness Interview Assessment (EEIA) program I created allowed me to evaluate other non-forensic sketch interview sessions.

As I deconstructed my interview technique, I found certain components of inquiry that were consistent in every interview, and I labeled these segments “mindful interview standards.” These standards included the mindful reset, probing framework, intentional listening, mindful of cognitive evidence, and mindful closing. What I was looking for in these interviews was a probing structure for assigning these components. In my analysis of these transcripts, I compared interview styles and asked the reader to consider whether

the interviewers gathered reliable statements from their eyewitnesses. During a recent presentation with law enforcement investigators, I asked them whether they evaluate their interview sessions on a regular basis and only 1 percent of the group said they did.

Of course, when agencies or corporations have no mandate for administering interview assessments any fidelity investigators have for recovering the truth from their interviews is unknown.

A Mindful Outlook on the Efficacy of Interviews

So, why not consider the efficacy of our subject interviews? Imagine investigative agencies and private corporations storing all their interview sessions and then arbitrarily selecting them for assessment—it would give the company an idea of the reliability of the evidence their interviewers were gathering. Their trainers would have conclusive proof of the deficiencies in adopting principles and standards so they could reexamine their instruction delivery and improve their curriculum for their interviewers. Likewise, an annual evaluation process would improve the collection of cognitive evidence for investigations and simultaneously recognize investigators for their level of proficiency.

Optimistically, we can continue to expect our government and corporate entities to develop systematic interview routines that adopt evidence-based principles and standards that deliver reliable evidence for their investigations. Even though cognitive researchers publish research articles that cite eyewitness memory as being unreliable, investigators continue to rely on it to follow leads, identify suspects, and conduct internal corporate investigations. Admittedly, we also find that investigators, in their zeal for the truth, often fall back on heuristics that assume certain outcomes. Until investigative administrators consider the paucity of reliable authentic recollection data, investigators must be the vanguard for ensuring accountability for investigative interview practices. After all, if we hold ourselves accountable and accept the presumption that we agree on basic interview principles, we can begin to accept regular objective assessments that can measure the reliability of cognitive evidence we collect from our subjects.

Gil Zamora has interviewed thousands of eyewitnesses about violent crimes since 1995. Trained in composite art by the FBI he eventually gained valuable insight about eyewitness misidentifications as the police artist for the San Jose Police Department. He enjoys lecturing students at San Jose State University and the University of New England about eyewitness interviews. For more information visit www.mindfulinterviews.com or email Gil at gil@mindfulinterviews.com.

“Until investigative administrators consider the paucity of reliable authentic recollection data, investigators must be the vanguard for ensuring accountability for investigative interview practices.”

The Loss Prevention Psychology of Organizational Mindsets

By John W. Jones, PhD

In today’s turbulent, post-pandemic business environment, there has been a seismic shift in the perception of what truly constitutes an organization’s assets. Beyond the tangible—infrastructure, products, and finances—lies intangible assets like corporate brands. Another critically important,

albeit contemporary intangible asset needing to be safeguarded is the collective organizational mindset. Therefore, psychology-informed loss prevention professionals need to be keenly aware of the status of the “Vital-5” organizational mindset dimensions defined in this article.

Operationalizing the Organizational Mindset

The term “organizational mindset” encapsulates the collective values, beliefs, attitudes, and behavioral patterns that characterize an organization. It is the ethos, the “how things are done around here” sentiment. It embodies not just the intellectual and strategic direction set by top management, but also the day-to-day collective attitudes, values, and behaviors of the entire workforce. From how employees collaborate on projects, to how leadership responds in times of crisis, all of it reflects the totality of the organizational mindset.

In the ever-evolving landscape of LP and AP, professionals in the field must expand their loss protection horizons beyond traditional physical assets. Recognizing and influencing the organizational mindset offers a proactive approach to asset protection, leveraging the collective power of the entire workforce. The organizational mindset is, therefore, not just an HR buzzword; it is a potent tool, a protective shield, and an early warning system.

As businesses navigate the complexities of the modern post-pandemic world, from cyberthreats to challenging retail environments, the organizational mindset will play an increasingly pivotal role. For loss prevention and asset protection professionals, understanding, influencing, and leveraging this collective mindset will be paramount to their continued success and the desired safety, security, and growth of their organizations.

Organizational Mindset Dimensions

This article identifies the Vital-5 organizational mindset dimensions that loss prevention and asset protection managers can play a pivotal role in influencing and managing. These Vital-5 dimensions are defined below and are based on both applied research and case study analyses in the fields of personnel and organizational psychology, occupational health and wellness, and human resources risk management. The five dimensions include:

1. Collective Employee Mindset: The shared mental framework of beliefs, attitudes, and perceptions held by all employees. A positive, LP-aligned collective mindset that reflects integrity, dependability, and loyalty can foster a culture of responsibility, reducing risks associated with employee negligence and counterproductivity. Conversely, if the collective mindset is

The term “organizational mindset” encapsulates the collective values, beliefs, attitudes, and behavioral patterns that characterize an organization. It is the ethos, the “how things are done around here” sentiment.

weakened by employees who are untrustworthy and unreliable, then more losses can be expected.

2. Psychological Safety Perceptions: The shared belief that the work environment is conducive to interpersonal risk-taking without facing punitive repercussions. When employees feel psychologically safe, they are more likely to report discrepancies, thefts, or employee crime and deviance without fear, enabling timely interventions that protect assets. Typical interventions include implementing an anonymous reporting system and assuring employees that constructive feedback is welcome, and retaliation is strictly forbidden. Employees are fearful while in psychologically unsafe environments and will not take any risks to protect the company’s assets.

3. Leadership Ethics and Morals: This dimension reflects the job-related moral principles and values that guide the behaviors and decisions of leaders. Ethical leadership discourages corrupt practices and fosters an environment of trust, reducing potential internal and external thefts or fraudulent practices. A core intervention is to provide regular ethics training for leaders and establish clear ethical guidelines for decision-making. Employees exposed to unethical leaders will either learn to emulate this type of toxic leadership, or else they will become dissatisfied and leave the organization.

5. Organizational Culture of Integrity: The values, beliefs, behaviors, and social norms that characterize an organization. A robust organizational culture with clear values can dissuade counterproductive behaviors that lead to losses and employee crime and deviance. Vital interventions focus on regularly communicating and reinforcing organizational values, recognizing and rewarding adherence to these values, and taking prompt corrective actions when they are breached. An organizational culture of dishonesty will lead to high shrinkage, diminution of the

When integrity, trustworthiness, and transparency are valued and promoted, the likelihood of internal theft, fraud, or other malicious activities diminishes.

corporate brand, and eventual shutdown of the organization if the culture cannot be rectified.

6. Mental Health and Wellness: This last Vital-5 dimension reflects the physical and psychological well-being of the organization’s members. Psychologically healthy and fit employees are more productive, make better decisions, and are less likely to be involved in accidents or mistakes that can lead to losses. Interventions include (a) offering wellness programs and promoting work-life balance to ensure employees are at their best both mentally and physically; (b) introducing Employee Assistance Programs (EAP) that provide support for behavioral and mental health issues, including addiction and violence-proneness; and (c) providing counseling services, rehabilitation referrals, and crisis intervention, ensuring high-risk employees receive timely and appropriate care. In the post-pandemic economy, mental health issues are on the rise, so organizations need to manage this organizational mindset dimension skillfully and legally.

Relevance to Loss Prevention and Asset Protection Professionals

At first glance, the organizational mindset concept might seem somewhat removed from the purview of loss prevention and asset protection professionals, whose roles are traditionally perceived as safeguarding tangible assets. Yet Table 1 on the next page clearly spells out loss prevention’s role in strengthening the Vital-5 dimensions. In fact, loss prevention professionals could easily orphan this risk management focal point to human resources. But, on deeper introspection, the link between loss prevention and organizational mindsets becomes clear and undeniable. Here are some important links that concretize the relevance:

■ Risk Perception and Reporting: An organizational mindset that fosters open communication, mutual trust, and psychological safety is crucial. In such environments, employees are more likely to report potential risks, be it malfunctioning equipment or suspicious activities. This proactive approach, driven by the collective mindset, empowers loss prevention professionals to act before a minor discrepancy escalates into a significant loss.

■ Ethical Foundations: An ethically strong organizational mindset serves as the first line of defense against employee crime and deviance. When integrity, trustworthiness, and transparency are valued and promoted, the likelihood of internal theft, fraud, or other malicious activities diminishes. Asset protection professionals thus benefit from a workforce that acts as a partner in protection, not a potential threat.

■ Behavioral Patterns: An organization’s collective mindset dictates behaviors. For instance, in a company where punctuality is valued, employees are less likely to take extended breaks, ensuring that there are no unprotected assets left unattended. Or, in retail environments, a customer-centric organizational mindset might mean that employees are more vigilant about potential shoplifters, assisting asset protection teams.

■ Adaptability and Learning: A growth-centric organizational mindset emphasizes adaptability and continuous learning. In the realm of loss prevention, this translates to staying updated with the latest technologies, threats, and preventive strategies. Asset protection is not a static field. New threats emerge daily, from cyberattacks to new shoplifting techniques. An organization that values

Image from Chat GPT

1

Vital-5 Dimensions

Collective Employee Mindset

2 Psychological Safety within Organizations

3 Leadership Ethics and Morals

4

Organizational Culture of Integrity

5

Mental Health and Wellness

Mindset Dimensions

LP’s Management Obligations Contribution to Value Business Metrics

Ensure that a shared mental framework of beliefs, attitudes, and perceptions supports LP. Hire, develop, and retain employees with desirable workplace mindsets.

Employees must believe that protecting a company’s assets, including whistle-blowing, never leads to punitive repercussions.

Leadership screening and selection systems, along with orientation and training programs, must ensure that leaders, managers, and supervisors exhibit the highest levels of ethics at all times.

LP must responsibly contribute to defining, building, managing, and monitoring the corporate culture of their organization.

The psychological well-being of employees is more of an LP issue in the post-pandemic economy, and is related to preventing extreme violence and on-thejob drug and alcohol abuse, among others.

adaptability ensures its protection mechanisms evolve too.

■ Holistic Protection: A broader understanding of the organizational mindset allows asset protection professionals to see beyond the tangible. For instance, brand reputation, a critical intangible asset, can be safeguarded by ensuring positive customer interactions, stemming from a customer-first organizational mindset.

Conclusion

In today’s evolving landscape, the focus on organizational mindset is not just an ancillary task but core to the very sustainability of organizations. Loss prevention and asset protection managers,

Fosters a unified, responsible culture that drives aligned organizational behaviors and boosts productivity.

Encourages open communication, reporting of discrepancies, and innovative thinking without fear.

Builds trust internally and externally, discouraging corrupt practices and fostering brand loyalty.

Dictates and strengthens employee behavior, reduces turnover, and enhances brand identity.

Enhances productivity, reduces absenteeism, and fosters positive workplace relations that buffer against extreme risks.

Employee surveys, focus group discussions, and organizational behavior analysis.

Anonymous feedback systems, incident reporting rates, and employee satisfaction surveys.

Leadership reviews, ethical violation reports, and stakeholder feedback.

Culture audits, employee turnover rates, customer satisfaction, and loyalty metrics.

Health checkup reports, absenteeism rates, wellness program participation.

working closely with human resources, are uniquely positioned to lead the charge in this area, ensuring that organizations cultivate environments that are resilient, ethical, and prosperous. The holistic protection of the organizational mindset is a critical area of focus for loss prevention professionals.

John W. Jones, PhD, ABPP, is the executive vice president of research and development at FifthTheory. He is a licensed psychologist in Illinois who serves as FifthTheory’s principal thought leader in the research, development, and delivery of personnel risk and talent management assessment solutions. Dr. Jones was the founding editor of the Journal of Business and Psychology and is the Chief Instructional Officer for FifthTheory’s Loss Prevention Psychology Institute

Table 1. LP’s Obligations for Strengthening the Vital-5 Organizational

Homelessness, Crime, and Disorder

Defining the Issues and Discussing Solutions

By Cory Lowe, PhD

Many retailers are facing unprecedented levels of retail crime and violence, further complicated by social and physical disorder in and around store locations. These conditions often make places feel uncontrolled and even hostile to normal social activities, leading individuals to avoid them altogether.

In 2023, the National Retail Federation (NRF) conducted the thirty-second annual National Retail Security Survey, and for the second year, the Loss Prevention Research Council (LPRC) collaborated

on the study. One of the most interesting findings from the report was that over 72 percent of participating retailers reported issues related to homelessness were a higher priority than just one year ago.

At the same time, retailers were reporting unprecedented violence and theft. Discussions with retailers reveal that the retail crime problem and the homelessness problem are related. While there have been many discussions about the role of homelessness in relation to retail crime and disorder, these issues are very complex, and much is still unknown.

The Causes of Homelessness in America

The causes of homelessness can be discussed in terms of risk and protective factors. Risk factors are conditions, characteristics, and experiences that increase the likelihood that someone will experience homelessness, while protective factors are conditions that reduce the likelihood that an individual will experience homelessness.

In their 2010 review of homelessness research, Lee, Tyler, and Wright identified many causes of homelessness ranging from broad social conditions to individual vulnerabilities and conditions that contribute to homelessness. At one end of the spectrum, broad macro-social issues, such as economic trends, social policy shifts, demographic trends, and the availability of affordable housing units, all contribute to rates of homelessness. At the other end of the spectrum are micro-social and individual factors that influence the likelihood an individual will experience homelessness. Examples of these factors include domestic violence, a history of mental health or substance use disorders, and a history of family conflict or homelessness, among other factors.

The mere presence of one or more of these risk factors does not necessarily lead to homelessness. Rather, the likelihood of whether one will experience homelessness is influenced by the quantity and severity of risk factors, in conjunction with the presence or absence of protective factors. For example, if an individual has a history of family conflict as well as mental health and substance use disorders but has a supportive family and marketable skills, they may be less likely to experience homelessness when compared to those

who have similar risks but do not share the same protective factors.

The causes of homelessness are also complex because the causal order is not always clear—for example, many have asked whether mental health affects homelessness or whether homelessness affects mental health. Research suggests that both are true; in other words, mental health disorders are associated with an increased likelihood of experiencing homelessness, but the stresses and strains of homelessness also contribute to worsening mental health disorders.

The Distribution of Homelessness in America

Government agencies like the US Department of Housing and Urban Development (HUD) keep track of this issue and regularly issue national reports so there is much we know about the distribution of chronic homelessness throughout the country. Most recently, HUD released its homelessness statistics for 2022; additionally, HUD has been working with “Continuums of Care” to collect homelessness data for years.

One of the most important things we learned from this data is that homelessness is not evenly distributed throughout the United States. The homelessness rate (per 100,000 residents) is much greater in western states such as California, Washington, and Oregon, as well as many states in the Northeast, than in other states across the country. Figure 1 shows which states have higher or lower rates of homelessness. For the purposes of this article, we examined all types of homelessness combined.

Figure 1. Homelessness Rate by State (2022)

Since these statistics have been tracked for years, we can also examine the trends in homelessness over time. For example, Figure 2 above shows which states have experienced the greatest increases or decreases in homelessness from 2012 to 2022. Over the past ten years, homelessness has become worse in many states, especially on the West Coast and in the Northeast, although Tennessee and Louisiana are notable exceptions.

Finally, while these state trends are helpful to understand, it is also helpful to understand which cities, urban areas, and suburban areas have the greatest numbers of homeless. HUD also tracks the data in terms of the number of homeless living in areas served by “Continuums of Care.”

The Department of Housing and Urban Development defines “Continuums of Care” as local planning bodies responsible for coordinating the full range of homelessness services in a geographic area which may cover a city, county, metropolitan area, or an entire state.

While the 2022 HUD tables (Table 1) show that many of the cities with the largest homeless populations are in states on the West Coast, approximately two in ten homeless individuals live in one of two cities—New York and Los Angeles.

Homelessness, Crime, and Disorder in Retail Spaces

There is research showing a link between some types of homelessness and crime (especially chronic homelessness), and a large body of research showing relationships between homelessness, mental health,

Figure 2. Percentage Change in Homelessness Rate (2012-2022)

Table 1. Major City Continuums of Care with the

of

Table 2. Largely

of Care with

Table 3. Other Largely Urban Continuums of Care with the

and substance use disorders. However, when it comes to physical and social disorder, homelessness is often associated with these outcomes, by definition. For example, the presence of homeless individuals in an area is often used as an indicator of social disorder, while makeshift shelters may be used as an indicator of physical disorder.

Unfortunately, one of the major problems the retail industry faces is that we do not have adequate data on the role of homeless populations in retail crime and disorder.

Most retailers we have talked to at the LPRC do not have data on the impact of homeless populations, and if they do, it is not in an easily usable format and incidents involving homeless individuals may not be recorded as such. For example, if a retail crime involved a homeless individual, then the incident report might include that information only if it would help with the case. Otherwise, it would be unusual for retailers to collect information about the housing status of subjects with whom they interact.

Nevertheless, there is research showing that homeless individuals are more likely to be both the victims and the perpetrators of crime and are more

likely to have interactions with law enforcement. For example, a recent study by the San Diego District Attorney’s Office showed that, among defendants in San Diego County, homeless individuals were more likely to be represented as victims and offenders than those who were not homeless. In fact, among the 53,163 adult cases from November 2019 through October 2021, 16.7 percent involved homeless defendants despite the fact that homeless individuals are a fraction of 1 percent of the population in San Diego County.

Homelessness and Property Crime

In discussions with retailers, they note many criminal concerns involving homeless populations. Homeless individuals are often involved in property crimes such as theft, burglary, arson, vandalism, and others. While retailers do not have sufficient data about the relative rates of these types of crimes, the San Diego report discussed earlier found that the rate of theft cases per 1,000 homeless individuals was fifty-eight times greater than the rate among non-homeless. Similarly, the vandalism rate was 222 times greater, and the arson rate was 514 times greater among the homeless.

Many studies have found that mental health conditions and substance abuse are more prevalent among the homeless than the general population, and these mental health issues often precede homelessness.

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The San Diego report found that the rate of theft cases per 1,000 homeless individuals was fifty-eight times greater than the rate among non-homeless.

Similarly, the vandalism rate was 222 times greater, and the arson rate was 514 times greater among the homeless.

One of the most common concerns is theft, which is often categorized into two primary types. On the one hand, some retailers have identified a relationship between homelessness and the theft of essentials like underwear, socks, and personal hygiene products. On the other hand, ORC rings often target these items, making it difficult to determine the proportion stolen by homeless individuals for personal use or resale, versus the proportion that is part of broader ORC efforts.

However, homeless individuals may contribute to ORC. In some cases, drug dealers will trade illicit substances for stolen merchandise. These dealers do not care about the origin of the merchandise—they just know that they can trade the drugs at market price for a fraction of the value of stolen merchandise, which they can then also sell. Of course, trading drugs for stolen merchandise carries additional risks, so many fences will simply pay a fraction of the retail price for stolen merchandise that they can then sell.

Homeless individuals may also steal product and sell it in open-air “markets” on the street, laying all the stolen merchandise out and giving passersby the opportunity to purchase the items.

Homelessness, Aggression, and Violence

Homelessness is also a concern for many retailers because some homeless individuals can be aggressive, if not outright violent, toward retail workers and guests. Unfortunately, once again, it is difficult to understand the full extent of this problem because retailers simply do not have the necessary data. This is not because retailers do not track violent incidents—they do; however, retailers do not typically record the housing status of suspects.

Nevertheless, individuals do not have to engage in violent behavior to be concerning—erratic or unpredictable behavior is often sufficient to generate concern. Many studies have found that mental health conditions and substance abuse are more prevalent among the homeless than the general population, and these mental health issues often precede homelessness. Further, these mental health conditions are often exacerbated by the stress and strains of being homeless.

There are times when mental health issues among homeless individuals can translate into violence and aggression toward others. Those who suffer from serious mental illness may suffer from paranoia and may be confused about who people are, and this paranoia and confusion can be exacerbated by substance abuse. This may lead to aggression or even violence against others around them, including retail workers, retail guests, and even other homeless individuals.

As the data from places like San Diego shows, homeless individuals are over-represented in cases involving predatory violence such as robbery. In fact, in San Diego, the rate of aggravated assault

among San Diego defendants was 130 times greater among the homeless when compared to non-homeless defendants. Of course, one of the problems with this data is that, like all official data, it only includes cases that are known to the criminal justice system, and cases involving homeless individuals may be more likely to be reported to the police.

In addition, research shows that homeless individuals are also more likely to be victims of violent crimes than non-homeless. For example, the first-of-its-kind study in San Diego revealed that homeless individuals were much more likely to be victims of murder, attempted murder, robbery, domestic violence, aggravated assault, elder abuse, and sexual assault.

Homelessness, Social Disorder, and Physical Disorder

As mentioned at the outset, homelessness is often associated with physical and social disorder. This is because homelessness and signs of homelessness are known indicators of social and physical disorder. Moreover, they are signs that the communities, individuals, organizations, institutions, and agencies responsible for maintaining social and physical order have failed to do so.

It is easier to conceptualize the meaning of physical and social disorder when contrasting them with their opposites. Ideally, social order is characterized by individuals being fully integrated into community life, the economy, and other key institutes, and people “getting along.” Likewise, physical order is characterized by things being in their place, used for their intended purpose. This is an oversimplification of these concepts, but these definitions help us understand what disorder represents.

Homelessness is associated with disorder because, by definition, individuals are without a home—they lack a designated space that serves the normal functions of a home. Therefore, these individuals must live, eat, and sleep in spaces that are not designed to serve these functions or meet these needs. They are left to achieve all the functions of a home in a public setting that is intended for other purposes. This is key because all the issues associated with homelessness involve a failure to maintain order.

The truth is that all the crimes mentioned earlier are, in fact, forms of social disorder, many of which contribute to physical disorder. Take substance abuse for example—research shows that rates of substance use disorders are greater among those who are chronically homeless and substance abuse is known to cause physical disorder in retail environments. Disorder that includes everything from dealing with hazardous fluids and discarded paraphernalia (e.g., syringes and tourniquets), to handling overdoses in retail fitting rooms and restrooms. This has been

particularly problematic in cities in the Pacific Northwest and the Southwest but is a problem throughout the United States.

Recently, the Sacramento District Attorney filed suit against the City of Sacramento for failing to enforce laws and allowing homelessness-related issues to become a public nuisance. The lawsuit seeks several actions by the city, including enforcement of existing laws and local ordinances, banning daytime camping in public places, and an audit of where funds to address homelessness have gone. One of the complaints made by the Sacramento DA is that the city has taken actions to protect government-owned facilities, but this same protection is not afforded to others, such as business owners.

The Role and Response of Retail Loss Prevention and Security

Unfortunately, loss prevention, asset protection, and retail security programs are not designed to solve massive and complex social problems like homelessness or America’s substance use problem. As a society, we want to eliminate homelessness and there are many organizations working to do just this, including many retail companies. However, until homelessness is eliminated, retailers will need to address many of the issues they face. In the case of loss prevention and retail security, they must continue to focus on preventing losses and ensuring that people, places, property, and other assets are secured.

While we recognize that those suffering from homelessness and substance use disorders are not the only ones contributing to the retail crime problem, or even today’s rampant social and physical disorder, we do know that homeless populations are a large part of these issues in cities across the nation. Therefore, we must do whatever we can to begin to address the many challenges discussed throughout this article.

What Can Be Done?

With all of that said, there are many things that retailers can do to help address social disorder, physical disorder, and crime associated with both the housed and unhoused. There are also specific things retailers can do to address problem behaviors among homeless populations.

Connecting Individuals with Social Services Before Law Enforcement Must Be Called

In 2020, a retailer approached the LPRC asking about how they might more effectively address issues related to homelessness in and around their stores. In many cases, the retailer ended up calling law enforcement on homeless individuals because of crimes they were committing. However, this was not an ideal solution because it created additional work for already over-burdened law enforcement agencies

and, more importantly, it did not have a long-term effect on the problems.

My first suggestion to them was to attempt to connect homeless individuals with social services whenever possible. This takes a bit of work, but if retailers can learn more about social service providers in the areas they serve, then they may be able to call on these organizations to help homeless individuals before they commit crimes or contribute to social and physical disorder in and around their stores. Fortunately, there are many agencies that keep directories of social service providers, including public health, law enforcement, and juvenile justice systems. Ideally, each store should have a directory of local social services they can call when working with homeless individuals.

The best place to start identifying available resources is via the “Continuums of Care” mentioned earlier. These local planning bodies often have directories of social services and may be able to share them. If you would like to contact a Continuum of Care for a specific area, please refer to the directory here: www.hudexchange.info/grantees/contacts/. Be sure to filter the grantees according to whether they are part of the “COC: Continuums of Care Program” because this directory also contains many other organizations that are not related to homelessness.

Situational and Environmental Deterrents

There are also situational and environmental measures that prevent issues related to homelessness. Many of the traditional techniques, such as enhanced lighting and surveillance technologies, are one option; however, there are other approaches that can also help ensure spaces are used as intended.

For example, some retailers are using mobile surveillance units to deter loitering and other unauthorized behaviors. These can be especially useful in areas without access to power or data transfer because they are typically solar-powered. These units enable surveillance of parking lots and other spaces, but they are also equipped with talk-down capabilities to send messages to individuals engaging in undesirable behavior. The LPRC has conducted research on the effects of these units that suggests they are a promising solution for issues related to homelessness, and we will be publishing the findings in the coming months.

Similarly, there are other environmental things that can be done, including using sound. There are several devices on the market that emit an annoying noise to deter loitering. Others have experimented with other sounds, such as classical music (because it is in the public domain), but I have yet to see any data suggesting that it deters loitering or unacceptable behaviors.

Retailers may provide benches or seats so guests can take a break during a shopping trip or wait for

The first-of-its-kind study in San Diego revealed that homeless individuals were much more likely to be victims of murder, attempted murder, robbery, domestic violence, aggravated assault, elder abuse, and sexual assault.

their ride. However, these accommodations are often abused by homeless individuals who sleep on or camp out around the benches. If retailers want to provide this convenience while also ensuring that the accommodations are not abused, they can use benches that subdivide the seats into smaller areas; this prevents individuals from lying down on the benches. However, it is also possible to simply remove the benches altogether, as well as anything else that is leading to undesirable behaviors.

There are also physical deterrents to unacceptable behaviors including the use of defensive architecture when designing buildings and walkways. For example, retailers may consider installing studs that are uncomfortable to sleep on. While these types of devices can deter sleeping, retailers should be careful to only install devices that are not trip hazards, or something that will not discourage desirable behaviors. Similarly, landscaping can be used as a more aesthetically pleasing deterrent. In some cases, boulders and large rocks have been used to prevent encampments.

Maintaining an impression of control is incredibly important. One of the most important solutions is to have place managers helping to control unacceptable behaviors. A place manager is anyone who can help manage behaviors and conditions in a particular place. This might be an employee who retrieves carts, a store greeter, a parking lot attendant, or a guard. Notice how the guard is mentioned last—most forms of social control and order maintenance can be accomplished by non-guard staff.

If people believe they will not be able to sleep in your parking lot or on your sidewalk because everything is being maintained, then they will be less likely to attempt to do so. This is especially true if individuals are taking care of these spaces, removing litter, and enforcing anti-loitering policies. Unfortunately, as people (including homeless individuals) continue to become more aggressive and violent, this may become more difficult to do.

Conclusion

This has been a very difficult article for me to write. My dad, who was one of the most intelligent, hardworking, artistic, and kind men I have ever met (especially when he was sober), died of a drug overdose on July 2, 2020. This was just weeks before I submitted my dissertation to finish my PhD. My last conversation with him was on June 27, 2020.

You never know when you will have your last conversation with a parent, and, if I had, I would have spent it discussing other things. Nevertheless, because he was very difficult to contact, we had a lot to catch up on. He asked me about my work, and I explained to him the research we do at the LPRC, including interviews with offenders.

One of the last things my dad did was offer to help me recruit retail offenders for research, because he said he knew several people who were stealing and reselling the merchandise or, more often, trading the merchandise for drugs.

My father spent many months of the last two years of his life homeless until two of my uncles were able to get him a place to live. My father was not “homeless” because he did not own a home—he did. He was just not capable of living a sober and peaceful life with my mother in the home they owned. As I have written this article, I have kept my father in mind. There are many complex issues that affect whether a person experiences homelessness, but, in many cases, the behaviors in which many homeless individuals are engaging are unacceptable, regardless of their housing status.

Solving homelessness is beyond the mandate of retail loss prevention and security programs; therefore, these teams must focus on the behaviors they can influence. Some of these behaviors are related to the housing status of individuals (e.g., the presence of makeshift housing), but most of the behaviors discussed throughout this article have nothing to do with whether an individual is homeless or not—substance use, littering, improper use of public amenities, etc. are not unique to the homeless.

However, as I have outlined in this article, homeless populations do contribute to all these problems. So, while retail loss prevention can focus on preventing and controlling problem behaviors in the spaces for which they are responsible, retailers need the help of policymakers at the local, state, and federal levels to help address the root causes of homelessness.

When I see homeless individuals (and especially homeless men), I cannot help but think about my father and all the circumstances that led to his homelessness and death. There were many things that might have helped him take a different path, but, in the end, he overdosed at a house that two of my uncles provided for him. This is why I always try to encourage retailers to connect homeless individuals with services before law enforcement becomes necessary—we may be able to avoid some of the problems retailers face while also helping those who desperately need it.

Cory Lowe, PhD is the director of research at the Loss Prevention Research Council. He received his doctorate in criminology in 2020 from the University of Florida where he specialized in crime and delinquency prevention, communities and crime, criminological theory, and research methods and data analysis. Lowe has published in peer-reviewed journals and other scholarly publications on the causes of crime, crime and delinquency prevention, and the factors associated with substance use and delinquency. He can be reached at Cory@LPresearch.org.

Cory Lowe and his father, George Lowe

Grant Drawve Walter Palmer

Drawve is the VP of Research and Innovation for CAP Index—the pioneer and leader in crime risk forecasting—and has over ten years of experience in applied environmental criminology and crime analysis research. Palmer is CAP Index’s COO/EVP, with over thirty-five years of hands-on experience in the AP industry.  Drawve and Palmer can be reached at gdrawve@capindex.com and wpalmer@capindex.com

Cutting Through the Hype

This discussion will be the first in a series about how to use crime data, evaluate trends, view headlines and statistics in the mainstream media with healthy skepticism, and, most importantly, use data and modeling to improve operations, lower risks, and properly allocate resources.

LPM: Over the past few years, there have been SO many articles about crime. First, it was about the dramatic rise in some crime types, like murder, during the COVID-19 years. Now, with the latest FBI data release, we keep seeing reports about violence decreasing across the nation. These stats are not resonating with our readers when they look at what is happening at their locations. What are your thoughts on this?

DRAWVE: Of course, we love seeing headlines about violence decreasing across the nation. The catchy headlines about national numbers provide just that, an overview, but fail to speak to what is going on more granularly within the US. We should not only expect city-level variation, but also neighborhoods experiencing varied levels of violence. In short, nationwide and city-level numbers could indicate violence has decreased, but when examining smaller units of analysis, such as neighborhoods, violence could be increasing. This is incredibly important to understand as it relates to security, guardianship, and risk.

LPM: We also see reports about the “most dangerous cities in America” or, conversely, “the safest cities in the US.” What are your thoughts on these types of reports?

DRAWVE: Lists about the most dangerous or safest cities often overgeneralize crime occurrences. Many of these lists rely on national numbers that come with their own data limitations, making it inappropriate to categorize cities in such a manner. These lists usually do not delve into the nuances of crime, such as the contextual factors that relate to crime occurrence. Many of these lists do not give enough importance to population or population density when making comparisons. For instance, with smaller

cities, a small change in the number of crimes could reflect a larger crime rate increase from year to year. This could be misleading when compared to a larger city. Again, city-level reports do not provide as much actionable information since neighborhoods within a city could be high or low in crime occurrence.

PALMER: I think everyone ‘in the industry’ understands this point from both personal experience and operating locations across different geographies. But, when your CEO reads an article in the Wall Street Journal that crime is increasing or decreasing across the US, they might not understand what appears to us to be an obvious over-simplification in thinking about crime. It is the job of the practitioner to help them, and the organization, take an unbiased and data-driven approach.

LPM: Many of the articles talk about ‘crime’ as one monolith of activity—crime is up, or it is down. Is this accurate?

DRAWVE: No. Take the most recent FBI numbers from 2022, violence went down; however, when we look at assault offenses occurring at grocery stores and supermarkets, this type of violence increased. This is what I mean when I say crime is nuanced. The example also speaks to the opportunity structure of crime which differs across crime types, leading neighborhoods with different levels of risk. For instance, burglary and aggravated assault are two different crime types with different spatial patterns, leading to varied levels of crime occurrence.

PALMER: We see companies confuse this issue, at times, when they think about their risks and what mitigation strategies to employ. Is their risk model primarily focused on violence against persons, or property crime, or shrinkage? These are all slightly different. I’m not saying they don’t have overlap, but they are not identical. The same is true for countermeasures—are they deploying a guard because of violence or because of shoplifting? Many times, that is not distinguished in the thought process or in the way the guards are deployed.

Courtney Wolfe

Wolfe is LP Magazine’s managing editor digital focusing on the magazine’s digital content and reach. Prior to LPM, she was managing editor for SDM Magazine, a trade publication for security systems integrators. She received her bachelor’s degree in multimedia journalism from Columbia College Chicago. She can be reached at CourtneyW@LossPreventionMedia.com.

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Fatal Macy’s Stabbing the Latest Example of the Assault on Retail

When Eric Harrison arrived at work at the Macy’s store in Center City, Philadelphia on a chilly December morning, he had no idea it would be his last. A hard-working young man with two full-time jobs, he had just started his morning shift as a uniformed loss prevention officer when he was fatally attacked.

Interviewing a Hostile, Suicidal Subject

LPM is partnering with Wicklander-Zulawski to share their interviewing expertise in a new series, WZ’s Instructor Insights. In this video, Wayne Hoover, CFI, discusses lessons you can learn when interviewing a hostile, suicidal subject.

A Look Inside the 2023 LPF/ LPM/RILA APLC Meeting

The 2023 Annual LPF/LPM/RILA APLC Meeting was held on beautiful Sanibel Island, Florida, in November. The event featured several outstanding sessions bringing together retail loss prevention leaders and our solution provider partners to review prominent issues facing the industry today, while also providing insights into some of the biggest issues that should be the focus of our attention as we move forward into 2024.

Neighbo(u)rly Perspectives: Mitigating Retail Violence in the US and Canada

This is the first of our six-part Neighbo(u)rly Perspectives column, where Genetec shares insights and best practices around key loss prevention topics from their experience working with retailers in the United States and Canada. The first topic explored is retail violence, looking at how retailers in both countries are experiencing it, and some of the evolving technologies and practices that retailers are using to deal with it.

Behavioral Indicators of Deception: Scientific Myths and Realities

A nose scratch, a mouth cover, hand wringing, leg tapping, looking away when answering—over the years, different claims have been made about these and other nonverbal behavior as possible cues to deception. But what’s the truth?

Kroger Annual Meeting Emphasizes Next-Level Asset Protection

Asset protection professionals from each of the Kroger divisions converged on Cincinnati, with division AP leaders and assistants, high-potential district AP managers, and the core “GO Team” from the corporate office coming together for their national meeting. The event was once again held at the Graduate Hotel and Conference Center adjacent to the University of Cincinnati, with days filled with presentations and interactive discussions on topics critical to the success of the business and the operation of the department.

Tech-Savvy Fraud Investigators in an Age of Digital Deception

The court conviction of cryptocurrency exchange founder Sam Bankman-Fried on charges of fraud and conspiracy related to the collapse of FTX has heightened the critical need for the next generation of fraud investigators to possess advanced technical skills. This high-profile case serves as a main indicator in the fight against white-collar crime and emphasizes the glaring reality that traditional investigative methods are no longer sufficient to fight modern-day financial bad behavior. As we witness an increase in white-collar crime on a global scale, the pressure for a new generation of fraud investigators, fortified with an advanced skill set, has never been more evident.

There is new content updated to the LPM website daily that is featured in our e-newsletter. Check us out at losspreventionmedia.com

Artificial IntelligenceUse Cases for LP Leaders

By John Matas, CFE, CFCI

Generative artificial intelligence (AI) models can be a valuable tool for retail loss prevention leaders in several ways. By leveraging its capabilities in data analysis, information retrieval, pattern recognition, and natural language processing, generative AI can assist in various aspects of retail loss prevention administration, training, and investigations.

Beginner Generative AI Tips

AI technology, including language models like ChatGPT, rapidly evolves daily. Staying informed about updates and changes to the model can help users understand new features or improvements, enhancing the overall user experience.

Finding the Right Tool

For many of the use case scenarios developed, one AI resource that is used most regularly is Open AI-Chat GPT-4.0 for a monthly fee. Periodically ask the Chat GPT when its last update was, such as:

�� You

Hello, can you tell me when was your last update?

ChatGPT

My training includes information up to April 2023. However, I don’t receive updates or new information beyond that point. My knowledge and responses are based on the data available up to that time. If you have questions about events or developments after April 2023, I may not have the latest information.

Before starting a project, give your AI context on its research role to get the best product such as:

�� You

Hello, assume the role of expert retail loss prevention trainer. Can you tell me the 3 most important issues facing US-based retailers in 2024?

ChatGPT

As an expert in retail loss prevention, focusing on the landscape of 2024, there are several critical issues facing U.S.-based retailers. The top two most important issues would likely include:

1. Advanced Cybersecurity Threats: With the increasing reliance on digital platforms and online transactions, retailers face sophisticated cybersecurity threats. These threats include phishing attacks, ransomware, and data breaches. Protecting customer data and maintaining secure transaction processes are paramount. Retailers need to invest in advanced cybersecurity measures, employee training to recognize threats, and robust response plans fro potential breaches.

2. Organized Retail Crime (ORC): ORC has been escalating in sophistication and scale. This includes coordinated thefts, reselling of stolen merchandise through online…

Check if the Chat GPT response to your question is not what you are looking for or you need more detail.

�� You

Your answer is much too vague, can you go into more detail on Organized Retail Crime and explain why it is important for a US-based retailer with both a physical and digital presence?

ChatGPT

Certainly, I can provide a more detailed explanation of Organized Retail Crime (ORC) and it’s significance for U.S.-based retailers with both physical and digital presences.

Organized Retail Crime (ORC) refers to professional criminal activities conducted by…

AI has limitations and can give you nonsensical answers or incorrect information, so it’s important to double-check the data it gives you.

Data Analysis and Reporting

Generative AI can quickly analyze large volumes of data, such as transaction records, POS exception reports, customer sentiment, and key performance indicators. It can identify patterns or anomalies that might indicate fraudulent activities, such as repeated unusual transactions or consistent negative feedback about a particular service or product. This can help LP and fraud investigators pinpoint areas of concern that require further investigation. Unusual refund patterns can be identified by analyzing refund transaction data to flag the stores or employees with abnormally high refund rates, which could indicate suspicious behavior. Also, comparing

transactional data across locations is a good way of spotting inconsistencies or anomalies in sales data across different store locations to identify potential internal theft or misconduct cases. If you are looking for trend analysis in shortage rates, you can track shortage rates over time to determine whether specific changes (like new policies or staff changes) correlate with increased losses.

Useful AI Tools to Explore for Data Analysis and Reporting

In addition to Chat GPT, IBM Watson Discover is a strong tool for uncovering hidden clues from complex loss prevention documents and data. This tool can process large data sets to identify trends and patterns in sales or LP data to pinpoint potential areas of loss or fraud in stores. Watson Discovery also allows for customizing AI models to suit your specific retail scenarios, enabling more targeted data analysis relevant to loss prevention and fraud detection.

SAS Visual Analytics provides powerful data visualization capabilities, making it easier for retail leadership to understand complex data sets and identify key trends and anomalies. This tool can be used for predictive analytics by analyzing transaction data to predict potential fraud using advanced analytics to identify transactions that deviate from typical patterns. SAS Visual Analytics can integrate data from various sources, including transaction records, customer databases, and apprehension statistics, providing a view of potential issues and opportunities in stores. This is a very big opportunity in the LP industry.

Enhancing Communication

LP leaders often need to communicate complex findings in an understandable way to management, law enforcement, the court system, etc. Generative AI can assist in drafting very clear, concise, and professional reports or presentations, ensuring the key findings are communicated effectively to prosecutors, court officials, and judges. Also, developing clear and direct presentations for retail management and summarizing investigation findings, loss strategies, and recommended actions is critical for C-suite executives who may be preoccupied with other priorities.

Useful AI Tools to Explore for Enhancing Communication

OpenAI’s GPT-4 can be used to draft and edit detailed investigation reports, summarizing complex findings clearly and concisely. It can effectively articulate the nuances of the investigation, ensuring that all key points are communicated effectively to management or other stakeholders by creating presentation materials, such as slides or speaking points, for communicating findings to various audiences.

Grammarly Business is a great tool that can review and refine investigation reports,

OpenAI’s GPT-4 can quickly sift through vast amounts of text data to provide information on specific laws and regulations, both national and international, that pertain to retail fraud and theft.

Artificial Intelligence Use Cases for LP Leaders

emails, and other communication documents. It helps correct grammar, enhance clarity, and ensure the tone is appropriate for the intended audience. As investigators draft reports or communications, Grammarly can provide real-time suggestions to improve the quality of writing, making it more effective and professional. To ensure the originality of the content in reports, especially when compiling information from various sources, Grammarly’s plagiarism checker can be a valuable tool.

Microsoft’s Power BI can transform complex data sets into understandable and visually intuitive formats, such as charts and graphs, which can be incorporated into reports and presentations to enhance comprehension. Developing interactive dashboards for presentations that require interactive elements where stakeholders can explore the data themselves, Power BI provides the tools to create dynamic and interactive visualizations. Power BI also allows for the integration of data from various sources, which can be used to create a comprehensive view of the investigation’s findings, aiding in more effective communication.

Training and Administration

Generative AI can create training materials on loss prevention and fraud for new LP staff. It can also help update the company’s current LP policy or procedures based on the latest industry practices and legal requirements, creating comprehensive training modules for staff who are recognizing and reporting suspicious activities. This can be used to assist in updating company policies and procedures based on the latest loss detection methodologies and legal requirements. For LP training, this tool can assist in producing informational content to educate employees about typical fraud schemes and prevention strategies such as posters and infographics.

Useful Tools to Explore for Training and Administration

GPT-4 can be employed to write comprehensive training guides and manuals on various aspects of loss prevention and fraud detection. It can include scenarios, best practices, and response strategies. GPT-4 can also be used to create interactive Q&A sessions or quizzes for training, making the learning process more engaging for store staff.

When interacting with generative AI, be mindful of privacy. Avoid sharing sensitive personal information, confidential data, or anything you wouldn’t want potentially seen by others.

Articulate 360 specializes in creating e-learning courses. It can be used to develop interactive and multimedia-rich training modules on loss prevention and fraud detection tailored for retail investigators and employees. This tool allows for creating scenario-based learning experiences that effectively train store teams to recognize and react to various types of retail fraud and theft. Articulate 360 includes features for

assessments and feedback, enabling LP trainers to gauge the effectiveness of the training.

Adobe Captivate is ideal for creating video simulations and interactive training content. It can simulate retail environments and fraud detection scenarios, providing hands-on experience in a virtual setting. This tool allows for creating e-learning content adaptable to various devices, making training accessible on different operating platforms.

Social Media and Online Monitoring

Generative AI can aid in monitoring social media and online platforms for mentions of your retail brand, which can sometimes reveal fraud or theft incidents (like the sale of stolen goods or triangulation schemes). Your company’s public relations and marketing departments may already use these tools today. These tools can be helpful in monitoring social media and online marketplaces for signs of stolen merchandise being sold as well as gauging public sentiment toward the brand on social media following a reported theft or fraud incident. It is also helpful in scouring social media for any indications or discussions of planned thefts or frauds targeting the retailer.

Useful Tools to Explore for Social Media and Online Monitoring

Hootsuite Insights offers comprehensive monitoring across social media platforms and online forums for mentions of the retail brand. This tool can analyze the sentiment of posts mentioning the brand, helping to identify adverse trends indicative of underlying issues such as widespread theft or customer dissatisfaction. It can also help in identifying trending topics or sudden spikes in brand mentions, which could be related to security incidents or emerging fraud schemes.

Talkwalker monitors social media and online news for brand mentions, enabling quick detection of potential fraud or theft-related discussions. Talkwalker can also analyze visual content, such as images and videos, for brand logos or products, which is particularly useful in identifying stolen goods advertised or discussed online. Investigators can set up customized alerts for specific keywords, hashtags, or image-based content related to their retail brand, ensuring they are promptly informed of relevant online activity. Crimson Hexagon offers extensive analytics capabilities, including analyzing historical social media data, which can be invaluable in identifying patterns or trends in fraud or theft related to the retail brand. This tool is excellent in extracting insights from social media conversations, helping to understand the context in which the brand is mentioned, which can indicate fraudulent activities or customer sentiment trends. Like Talkwalker, Crimson Hexagon can analyze multimedia content for visual cues related to the brand, aiding in identifying potentially stolen products showcased online.

MetaData2Go, although not considered AI, is very useful to extract the metadata from any photos of stolen merchandise posted online by a criminal entity. This information may include the date and time the photo was

taken, the make and model of the camera used, geographic coordinates, and sometimes the name of the photographer.

Scenario-Specific Research

Investigators can use generative AI to research specific types of retail fraud or theft and emerging trends in retail crime quickly or find case studies and examples of how similar incidents have been handled in the industry. This can provide valuable insights and help in formulating effective investigation strategies by researching the latest methods in retail fraud and how they might be countered. Searching international, federal, and state laws can help apply the proper statute to an investigation and prosecution that you are currently working to develop.

This will help in researching case studies on ORC to understand common modus operandi as well as keeping up with the latest technological advances in loss prevention and their applications in retail.

Useful Tools to Explore for Scenario-Specific Research

OpenAI’s GPT-4 can quickly sift through vast amounts of text data to provide information on specific laws and regulations, both national and international, that pertain to retail fraud and theft. It can help analyze current trends in retail crime by accessing and interpreting the latest research papers, articles, and news reports. GPT-4 can assist in gathering and summarizing relevant case studies and historical examples of retail fraud, providing insights into how similar incidents have been addressed and resolved in the past.

responses. Understanding these limitations is critical to setting realistic expectations and using the tool effectively.

It’s also essential to use generative AI ethically. This means avoiding using it for deceptive purposes (like passing off AI-generated text as human without disclosure), using it to generate harmful or inappropriate content, or relying on it for advice in critical situations.

LexisNexis is a powerful tool for legal research, offering access to a comprehensive database of legal resources. It can be used to find specific laws and court cases related to retail fraud and theft. Investigators can use LexisNexis to analyze legal documents and case laws to understand how certain types of retail fraud have been legally addressed. This tool also provides capabilities for conducting risk assessments and due diligence, which can be vital in formulating strategies to prevent or respond to retail fraud.

Legal and Compliance Assistance

Most importantly, generative AI can provide information on relevant laws, regulations, and compliance requirements for retail fraud and loss prevention. While it’s not a substitute for legal advice, it can help investigators stay informed about the legal landscape. Ensuring that your legal and privacy leadership are partnered is critical to avoiding problems in this rapidly growing space.

Generative AI is proficient in understanding and generating human-like text, making it useful for various applications such as answering questions, providing explanations, generating text, and more. It’s built to understand context and follow a conversation flow, which allows for more engaging and coherent interactions.

It’s crucial, however, to recognize the limitations of the model. For instance, generative AI doesn’t have real-time internet access or the ability to browse current data, so its knowledge is limited to what it was trained on (up to its last training cut-off, usually a specific date). It also doesn’t have personal experiences or emotions and can sometimes generate incorrect or nonsensical

When interacting with generative AI, be mindful of privacy. Avoid sharing sensitive personal information, confidential data, or anything you wouldn’t want potentially seen by others. While AI works to ensure confidentiality and data security, it’s always prudent to be cautious with personal information.

Look into compliance requirements for anti-fraud measures in retail, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

Also be sure to explain legal considerations around monitoring employee activities, ensuring LP leaders adhere to legal standards.

Generative AI can be an invaluable asset for retail leaders, enhancing their capabilities in data analysis, reporting, communication, training, legal compliance, customer service analysis, and more. Its versatility and ability to quickly process large amounts of information make it a powerful tool in the fight against retail loss. However, it’s important to remember that while AI can provide support and insights, the expertise and judgment of professional investigators are crucial in interpreting the data and making informed decisions. Integrating AI tools like ChatGPT should complement, not replace, the nuanced understanding and hard-earned experience of human loss prevention leaders.

John Matas CFE, CFCI, is a retail industry consultant with over 30 years of experience in omni-commerce fraud, financial crimes, asset protection, and investigations. John was the VP of investigations, fraud, and ORC for Macy’s for over 25 years. Most recently, John served as the global head of risk and fraud for Etsy Inc. where he was responsible for the organization’s fraud strategy and framework.

John is on the Editorial Board for Loss Prevention Magazine and is a regular speaker for the NRF, RILA, International Association of Financial Crimes Investigators Merchant Risk Council, and Association of Certified Fraud Examiners. John graduated from Kean University with a BA in both Political Science and Criminal Justice and is currently studying Applied Machine Learning at Columbia University.

De-escalate aggressive and violent incidents with our tried-and-tested retail associate body camera

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Deter offenders and document evidence by equipping your LP and Security teams with our rugged body camera series

Real-World Solution for Today’s Retail Landscape

In the bustling world of retail, where change is the only constant, ensuring safety and security becomes a collective endeavor. At Reveal, we’re reshaping the landscape of retail security by providing body camera solutions that aim to safeguard those at the heart of retail. From the vibrant shop floors to the essential roles in loss prevention—and through to the critical networks of logistics and delivery—our technology offers a layer of protection and peace of mind that ensures everyone can perform their role with confidence.

Safety on the Front Lines

Our pioneering entry into the retail market was driven by a clear vision: to create a safety tool that went beyond conventional boundaries to serve those on the front lines of retail. The creation of our retail body camera, characterized by its distinctive front-facing screen, was a response to this vision. It has proven essential in diffusing potential conflicts, acting as both a shield and a source of reassurance on the retail floor.

Central to our solution is our advanced digital evidence management software, DEMS 360. This software enables the seamless management and sharing of digital evidence. Hosted either on-premises or in the cloud, DEMS 360 ensures that crucial evidence is accessible anytime, anywhere, bolstered by the robust security of world-class infrastructure. Its flexibility to integrate smoothly with third-party systems underscores our holistic approach to retail security, offering a versatile tool in the hands of retail security teams.

Customer Focused

As Reveal has expanded globally, we’ve observed first-hand how retail security challenges resonate across borders, from the bustling streets of the UK to the expansive malls of the US. This global insight has refined our solutions, ensuring they’re robust, adaptable, and effective, no matter the setting. Central to our success is our unwavering commitment to collaboration. By actively listening to our customers, diving deep into their unique challenges, and crafting tailored solutions, we’ve established durable partnerships throughout the retail industry.

Proof of concept trials are a cornerstone of our methodology, offering retailers a first-hand experience of our technology’s impact. Guiding partners through each step—from legal considerations to IT integration and staff training—we provide comprehensive support to

ensure a seamless adoption process. The efficacy of our solutions is reflected in some compelling statistics from recent US trials, where our technology contributed to a 65% reduction in incident rates and even resulted in the prevention of safety-related incidents.

At Reveal, we’re driven by more than just the desire to innovate; we’re motivated by the difference our technology makes in people’s lives. It’s about providing the retail sector with the tools to ensure every workday is as safe as it can be. Our body-worn cameras and DEMS 360 software stand as beacons of security, empowering those who serve the retail industry to focus on their core mission, fortified by the knowledge that they are protected.

BWC Benefits

A key benefit of the retail body camera is its capacity to deter and reduce violence and aggression, addressing a critical issue in the current retail climate. The front-facing screen has been proven to promote positive behavior, fostering a safer environment for both customers and staff. This not only improves the safety of individuals working alone but also elevates the overall sense of security and support among all retail employees. Following a successful trial, one fashion retailer reported that 78% of staff had said that experiencing less risk had positively impacted their mental well-being.

Beyond safety, our technology plays a critical role in documenting evidence for incident reporting and legal proceedings. The clarity and reliability of footage captured by our body-worn cameras offer an indisputable account of events, streamlining the process of legal review and enhancing the likelihood of successful prosecutions.

Looking ahead, our passion for innovation burns as brightly as ever. We’re continually exploring new ways to enhance the safety and operational efficiency of retail environments, supporting the diverse array of professionals who make the retail world turn.

Reveal is more than a technology provider; we are your partner in creating a safer retail experience. For

Professionals Advancing Their Careers

Randy Sammons is now manager of LP operations at Ace Hardware.

Patrick Van Kuijk is now a fraud and security expert at Action Retail (Netherlands).

Jason Hall is now director of internal controls and risk prevention at adidas Europe.

Michael Alayamini, MAOL was promoted to AP manager, advance professional at Advance Auto Parts.

Amazon announced the following: Bjorn Merse, CPP is now head of security and LP, European Union and Türkey (Germany); Jonathan Logsdail was promoted to global security operations L&D leader (UK); Brad Hayes was promoted to senior program manager, EMA security and LP (United Arab Emirates); Joseph Coleman was promoted to senior security manager, web services; Steven Lanzendorf is now manager of physical security for AWS data centers; Daniel Broeckel, PSP is now a security program manager; Anthony Santelises is now security program manager, data center security; Chris

manager; and Jessica Santiago Resendiz (Mexico) is now an LP multi-site lead.

Tori Bartley was promoted to senior fraud analyst at Apple.

Melissa Cooper was promoted to regional LP manager at Army and Air Force Exchange (South Korea).

Carlos Simoes is now head of LP and property security at Assai Atacadista (Brazil).

Anthony Rodriguez is now director of LP, security operations, and risk at Audemars Piguet.

Paul Mello, LPC is now director of retail solutions, North America and Alaina Kring, CPhT is now director of retail partnerships at Auror.

Neil O’Neill is now a regional LP manager at Autozone.

Dan Nesselroth is now associate director of risk management at Aztec Shops.

Colton DeBlois and Walt Kaminski are now LP market managers at Barnes & Noble.

Joe Tellone was promoted to director of field AP and safety,

Primo Roman is now director of security at Burdeen’s Jewelry.

Burlington Stores announced the following: Keyshawn Clarke-Wells is now an AP field investigator (ORC); Ryan Merkel is now project manager, physical security; Kim Hooper is now a regional AP manager; Lindsey Hunt was promoted to supervisor, response and investigations center; Jay Lapierre is now an AP business partner; and Kathie Carter and Shaji Mathew are now district AP managers.

Jerome Mairet is now senior director of international safety, security operations at Carrefour (France).

Carlos Alencar was promoted to LP supervisor at Cesta do Povo Supermarkets (Brazil).

Naveed Munawar is now department manager of security and LP at Chase Up (Pakistan).

Tracy Marquez, CFI is now a regional field AP manager at Chipotle.

Jonathan Ibarra is now a regional LP manager at Grupo Coppel (Mexico).

Ashley Perry was promoted to risk specialist at Cotton On Group (Australia).

CVS Health announced the following: Christopher Knight was promoted to vice president of enterprise security; Patricia Henry was promoted to lead background/drug investigations adjudicator; Miguel Falcon, LPC, CORCI is now a regional manager of ORC and special investigations; and Jennifer Zieleniewski was promoted to regional manager of AP emerging leader.

Aaron Hancart, CFI, EPS is now senior director of AP and safety at Denny’s.

Trevor Polverini, LPC was promoted to field operations and safety manager, Ron Pacchioli Jr. is now a field investigations manager, and Deborah Freeman, LPC was promoted to field operations and safety manager at DICK’S Sporting Goods.

Manuel Muller is now security operations manager at Disneyland Paris (France).

Chad DeLauter is now a regional AP manager at Dollar General.

Shane Coover, CFI, LPC is now a major crimes investigations manager and Andrew Robinson is now a regional AP manager at Dollar Tree Stores.

Gilliard Ribeiro Antunes is now an LP coordinator at Grupo DPSP (Brazil).

Jeff Fulmer is now director of AP at Duluth Trading Company.

Desmond Heidt was promoted to senior global security manager at Dyson (Germany).

Canaan Peacock, CFI, CFE is now corporate LP manager at EOS Fitness.

Rob Harrold is now chief customer officer at Everseen.

Robert Mark Roosa is now an LP manager II at The Exchange.

Tyree McNeal is now a regional AP manager and Tristan Smith, Kai Sandman, Robert Philos, and Zachary Workman are now market AP investigators at Family Dollar.

Welton Gomes was promoted to manager of LP at Ferreira Costa Home Centers.

Parker Griebel, LPC, LPQ, CFI was promoted to AP assistant director at Festival Foods.

Rick Pfeifer, LPC, CFI is now a regional AP manager at Five Below.

Franklin Dao, CFE was promoted to fraud control supervisor at Floor & Décor.

John Marshall is now a risk and supply chain executive at Footgear (South Africa).

Matt Brenner was promoted to VP, head of global security and AP services at Gap Inc.

Courtland Greer, LPC is now a regional AP manager and Briana Hernandez was promoted to area AP manager at Gap Inc.

Tara Hale is now an area LP manager at Gelson’s Markets.

Sadik Ates, MBA, CICA, CCS is now head of LP at Getir (Turkey).

Terry Bowser is now a regional LP manager at Giant Eagle Stores.

Cody Rioux was promoted to group manager, LP supply chain and transportation at Giant Tiger (Canada).

Dennis Smith, CFI, LPC is now a regional AP manager and Steve Yannett was promoted to ORC/ threat assessment specialist at Harris Teeter.

Sanford Siegel, LPC is now physical security systems manager at HelloFresh.

The Home Depot announced the following: Wilton Redd was promoted to manager of

AP operations, resources and technology; Bobby Williamson, LPQ, LPC is now a corporate investigator, ORC; and Lewis Godwin, Martin Lisitza, CFI, and Page Level are now multi-store AP managers.

Ryan Carter is now president at InstaKey Security Systems.

Lorrie Bass is now an investigator at Inter-Con Security, Nike.

Michael Staines is now an LP investigator at The Integritus Group.

Sunita Mani is now chief marketing officer and Sean Foley is now chief revenue officer at Interface.

Alexys Spencer was promoted to field investigator at JCPenney.

Karen Fraser is now a senior security advisor at JD Sports Fashion (UK).

Isabelle Devereux, LPC was promoted to payment fraud manager and Kelly Laurance was promoted to profit protection regional manager at John Lewis Partnership (UK).

Debra Heap is now a fraud, security, and investigations manager at Kmart (Australia).

Victoria Burge-Thomas is now head of profit protection (Australia and New Zealand) and Chloe Kaye is now a national investigator (Australia) at Kmart and Target.

Sam Honeycutt was promoted to territory VP of LP at Kohl’s.

Jordan Chacon was promoted to director of investigations at Kohl’s.

Luiz Junior is now an LP coordinator at Kuehne+Nagel (Brazil).

Marlene Navarrete Shoemate is now senior AP at Lineage.

Janeen Collins is now a regional AP director, Kelli Flynn, LPC was promoted to market ORC manager, and Ryan Keppel and Jennifer Holt are now district AP managers at Lowe’s.

Albert Metuge, CFE, CFI was promoted to senior manager, omni risk and analytics at Lululemon.

Maureen Hui is now director of AP at Madison Food.

Christina Crain, LPC was promoted to market AP manager at Meijer.

Simone Cavalcante was promoted to process improvement analyst and Grazielle Ribeiro is now a senior LP leader at Mercado Livre (Brazil).

Bryan Mallery was promoted to director of LP operations at Michaels Stores.

MaKenna Knuth is now a district LP manager at NAPA Auto Parts.

Timothy Drennon was promoted to director of safety and security at Natural Grocers.

Alex Collins, MBA was promoted to manager of AP program management, Heather Rawlings is now a regional external investigator, and Neil Binkowitz was promoted to interim area AP manager at Nordstrom.

Jacob Gouveia was promoted to corporate AP supervisor at Ocean State Job Lot.

Josh Hamilton, CFE, CFI is now manager of investigations at Peloton Interactive.

Ines Manotas was promoted to global security manager at Primark (Spain).

DeRon Finney is now a regional AP business partner at RaceTrac.

Whitney Plemons, LPC, CFI is now a regional safety and security

manager at Raising Cane’s Chicken Fingers.

Ajla Gabela is now director of asset protection and Tanner Webb, LPC was promoted to senior manager of AP at Raley’s.

Erika Barillari Riberiro is now a corporate security coordinator and Kelvin Batista was promoted to senior LP analyst at RD (Brazil).

Dan Lieberman is now a regional LP manager at REBEL Convenience Stores.

Raj Singh Rathore was promoted to area LP cluster manager and Ajeet Gupta is now an area LP lead at Reliance Retail (India)

Jose Alejandro Cornejo Burgos is now head of security at Ripley (Chile).

Courtney Record was promoted to senior director of LP and safety, supply chain at Ross Stores.

Carlos Rubio, CFI was promoted to regional director of LP, and Marcos Lozano and Mario Howell are now area LP managers at Ross Stores.

Normesha Reynolds is now a district AP manager at Safeway. Maximin Mathew is now LP leader, compliance and stock assurance at Seddiqi Holding (India).

Alan Turquetti is now an LP coordinator at Semar Supermarkets (Brazil).

Mat Schriner, LPC is now strategic account manager with Sensormatic Solutions by Johnson Controls.

Anthony Blanco is now an area LP manager and Jeremy Ostapuk is now a senior district LP manager at SEPHORA.

Jayne McGrath, CFE, CFI, LPC is now a regional LP manager at Signet Jewelers.

Michael Thompson was promoted to senior manager of field investigations at Target.

Michael Loox, CFI is now senior manager of store security at Sheetz.

Amelia Kaniis is now the investigations team lead at TikTok.

The TJX Companies announced the following: Wade Ramlochan is now an LP physical security coordinator, store projects (Canada); Andy Rushing is now a national task force investigator, ORC; Raphael Martinez was promoted to market district LP manager; Michael Wollemberg, LPC and Heather Gingras were promoted to district LP manager; Cindy Coreas was promoted to LP analyst (Canada); Joshua Grabel, LPQ was promoted to district LP supervisor; and Brandon Sutton is now LP store investigations supervisor (Canada).

Luis Loayza, LPC is now an ORC investigations manager at ULTA Beauty.

Freddy Sanguino is now senior LP manager at Vallarta Supermarkets.

Martina Bullard, CFI is now a regional AP manager at Victoria’s Secret.

Ryan Reilly is now a regional AP manager at Victra-Verizon.

Pramod Sharma is now a regional security and LP manager at Vishal Mega Mart (India).

Stephen McIntosh, MBA, CPP, CFI is now head of AP at Vuori.

Tammy Reed was promoted to divisional director of AP at Walmart.

Chris Sacramone is now a field investigator, global safety and security operations and Jimmy Soto was promoted to senior regional manager of safety and security at Wayfair.

Spotlighting Loss Prevention Certified Professionals

Obtaining my LPC has been a game-changer for my career. The comprehensive training and in-depth knowledge I gained have empowered me to make significant contributions to my organization’s security and risk management strategy. This certification has not only expanded my skill set but has also boosted my confidence in handling challenging situations effectively. I highly recommend this certification to anyone looking to excel in the field of loss prevention.

Anthony Less, LPC, LPQ DICK’S Sporting Goods

The LPC is an amazing course to help those individuals who are trying to round out their LP toolbox. The course does an amazing job of presenting information that is both informative and relevant to all LP professionals. I 100 percent recommend this course.

Christian Ibbott, CFI, LPC H&M

I’m very grateful for the opportunity to study for the LP certification as it accurately covered much of the information critical in my everyday work environment. I highly recommend all LP professionals take the time for this training.

Juan Perez, LPQ Rite Aid

The Loss Prevention Foundation (LPF) is a leader in educating and certifying retail loss prevention and asset protection professionals by providing relevant, convenient, and challenging educational resources. The LPF is dedicated to elevating the industry through its accredited LPQualified and LPCertified courses. For more information, visit losspreventionfoundation.org.

The LPQ course was challenging, but the course load was manageable and informative, and I was able to complete it while working full-time. I had some experience in the field prior to taking the exam, however, I still gained invaluable insight into the retail business as a whole and the tools to become a business professional that I can use to succeed.

The LPQ has given me a foundational footprint in the LP field. I am two and a half years into this profession, and there is always something new to learn. I am grateful organizations like the LPF are around for those seeking development or refreshing their knowledge. I look forward to taking the LPC one day and gaining further knowledge.

Samantha Denton, LPC Walgreens

As a person who has been in the AP field for a while, I was amazed by how much I learned! While there were many things in the course I already knew, the way it was laid out gave me new perspectives and strategies that will continue to have a lasting impact on my personal and professional growth. I am extremely grateful to Walgreens for giving me this fantastic opportunity! If you have a chance to take the LPC, I highly encourage you to do so. You will not regret it!

Newly Certified

The following are individuals who recently earned their certifications.

Recent LPC Recipients

Thomas Bean, LPC, DICK’S

Sporting Goods

Wendy Blanco, LPC, Lowe’s

Josh Boone, LPC, Meijer

Tennie Burak, LPC, Purpose Financial

Andrew Cahill, LPC, Whole Foods Markets

Liliana Carioto, LPC, TJX

Jason Cody, LPC, Whole Foods Market

Ashley Deal, LPC, Meijer

Timothy DeMeza, LPC

Samantha Denton, LPC, Walgreens

Umberto DeVany, LPC, Meijer

Collin Dole, LPC, Meijer

Mason Durant, LPC, Berkshire Roots

Jacob Eastman, LPC, DICK’S

Sporting Goods

Braden Egner, LPC, Meijer

Sean Ernst, LPC, Meijer

Juan Fernandez, LPC, Hello Fresh

Alexandria Fillmore, LPC, Meijer

Alan Foyle, LPC, TJX

Christine Graham, LPC, Lowe’s

Jenna Gresham, LPC, Kroger

Timothy Hahn, LPC, Lowe’s

Kelly Harrington, LPC, RaceTrac

Bryan Hillman, LPC, PetSmart

Corey Holland, LPC, Walgreens

Alexis Hopkinson, LPC, Lowe’s

Kevin Howard Jr., LPC

Jeffrey Johnson, LPC, Discovery

Thomas Kelley, LPC, Meijer

Thomas Kirk, LPC, Lowe’s

Teddy Kohn, LPC, Lowe’s

Kody Lake, LPC, Meijer

Julie Lawson, LPC, ThinkLP

Anthony Less, LPC, LPQ, DICK’S

Sporting Goods

Anthony Macrina, LPC, The Home Depot

Corey Merritt, LPC, PetSmart

Tomas Negron, LPC, Gabe’s/Old Time Pottery

George Norris, LPC, Lowe’s

Femi Oyedele, LPC, Goat Group

Kyle P. Tjelmeland, LPC, Walgreens

Mackenzie Patterson, LPC, Lowe’s

Adrian Rivera, LPC, 7-Eleven

Robert Rockwell, LPC, Lowe’s

Felicia Schmidt, LPC, Meijer

Leah Schroeder, LPC, Lowe’s

Vince Semona, LPC, Lowe’s

Aron Shidaker, LPC, Meijer

Zackery Smith, LPC, Meijer

Tyler St. John, LPC, Meijer

Steve Suarez, LPC, Sears Stores

Kenneth Sullivan, LPC, Lowe’s

Justice Sutton, LPC, Meijer

Kylie VanVechten, LPC, Meijer

Monica Vega, LPC

Juan Villegas, LPC, 7-Eleven

Dennis Warner, LPC, Meijer

Recent LPQ Recipients

Benjamin Anthony, LPQ, Ralph Lauren

Obaid Baksh, LPQ, Amazon

Nicholas Barr, LPQ, University of South Carolina

Shelly Bastian, LPC, LPQ

Sarah Brown, LPQ, University of South Carolina

Ryan Burge, LPQ, Bloomington Stores

Jeffery Burton, LPQ, TJX

Bradley Campbell, LPC, LPQ, The Home Depot

James Cancello, LPQ, University of South Carolina

Christopher Capano, LPC, LPQ, Rite Aid

Matt Capicchioni, LPQ, University of Cincinnati

Alison Carey, LPQ, Amazon

James Compton, LPQ, TJX

Karlyn Crotty, LPC, LPQ, Meijer

Jordan Darley, LPQ, ALTO

Lisa Dickens, LPC, LPQ, Walmart

Anna Dicks, LPQ, University of South Carolina

Sean Donovan, LPQ, University of Cincinnati

Terence Dubose, LPQ, Amazon

Heather Eames, LPQ, Amazon

Evan Eckstrom, LPQ, University of South Carolina

Jeremiah Edwards, LPQ, ALTO

Sokhna Fatou Sy Faye, LPQ, Amazon

Kevin Fenske, LPQ, ALTO

Marcia Foertsch, LPC, LPQ, 7-Eleven

Daniel Gauthier, LPQ, TJX

John Genders, LPC, LPQ, Meijer

John Gilpin, LPQ, ALTO

Timothy Girardot, LPQ, ALTO

Amanda Harrington, LPC, LPQ, The Home Depot

Airehon Harrison, LPQ, Amazon

Brian Henson, LPQ, The Home Depot

Jimmie Hernandez, LPQ, ALTO

Pamela Hicks, LPQ, Amazon

Sydney Horn, LPQ, University of Cincinnati

Nolan Huete, LPQ, Amazon

Alicia Jimenez, LPQ, Bloomingdale’s

Chase Johnson, LPQ, University of South Carolina

Caroline Kelly, LPQ, University of South Carolina

Kathleen Kennedy-Turner, LPQ, Solink

Isabella Ketels, LPQ, University of Cincinnati

Darby Klemz, LPQ, University of South Carolina

Haley Leakey, LPQ, Envyision

Daniel LeBlanc, LPQ, Amazon

David Leslie, LPC LPQ, Yum! Brands

Lupelele Letele, LPQ

Edgar Luna, LPQ, Burlington Stores

Christopher Mackey, LPQ, North Carolina State University

Jennifer Mackey, LPQ, Amazon

Joleen Marlow, LPQ, Amazon

Kevin McGuire, LPQ, Amazon

Julian Mendoza, LPQ, ALTO

Edward Miller, LPQ, Amazon

Elijah Jones, LPQ, University of South Carolina

Julia Miller, LPQ, University of South Carolina

Jason Mizenko, LPQ, The GIANT Company

Kristi Overby, LPQ, Motorola Solutions

Larry Parker, Jr, LPQ, Axis Communications

Michelle Paz, LPQ, Amazon

Wesley Peavy, LPQ, University of South Carolina

Juan Perez, LPQ, Rite Aid

Lorrie Perez, LPQ

John Pocse, LPC, LPQ, The Home Depot

Daniel Reichert, LPQ, DICK’S Sporting Goods

Brison Roberts, LPQ, University of South Carolina

Nicholas Robinson, LPQ, Bloomingdale’s

Lorena Rocha, LPQ, ALTO

Mickey Rowe, LPQ, ALTO

Anastasiia Sachuk, LPQ, Bloomingdale’s

Kyle Sayyae, LPQ, Meijer

James Schaffer, LPQ, Goodwill of Greater Washington

Brittney Schwarz, LPQ

Kayla Serls, LPQ, University of South Carolina

Joshua Serrano, LPQ, Ralph Lauren

Michael Shalaby, LPQ, Target

Akashdeep Singh, LPQ, Amazon

Carlos Siordia, LPQ, Rite Aid

Rinah Standard, LPQ, Amazon

Joshua Stevens, LPQ

Melissa Tyler-Patterson, LPC, LPQ, Meijer

Amos Valoaga, LPQ, Goat Group

Simone Voellmecke, LPQ, University of Cincinnati

Hailey Whitaker, LPQ, University of Cincinnati

Marcus Wright, LPQ, ALTO

You work hard to reduce preventable losses. We know it’s not an easy task. That’s where LPF comes in. We are the international leader in educating and certifying retail loss prevention professionals who’s mission and passion is to advance the retail loss prevention and asset protection profession by providing relevant, convenient and challenging educational resources.

By becoming a Member of The Loss Prevention Foundation, our community will help you advance your career with access to an elite network of fellow industry professionals, development tools tailored specifically to our industry, exclusive discounts and access to resources and international networking, and more.

TAKE YOUR CAREER TO NEW LEVELS JOIN TODAY!

Sign up for a Free Subscription for You and Your Team

Don’t miss any of our award-winning magazines. Subscriptions are free to retail professionals, law enforcement, and solution providers serving the loss prevention industry in the US and Canada. Have each issue of the magazine sent to your home or office by simply going to LPMsubscription.com or scan the QR code.

Want to have magazines sent to your entire organization?

Provide a list or handout magazines to your office or store associates. Bulk quantities of the magazine can be requested by emailing circulation@lpportal.com. We will contact you to work out the best method to fit your organization.

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Our digital channel offers original articles written by LP Magazine staff, thought-leadership contributions from industry experts, breaking news, podcasts, and much more. Stay in-the-know by adding your email address to our digital channel database. Go to LossPreventionMedia.com/email or scan the QR code.

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Calendar

Please go to the magazine website Events page or scan the QR code to get the most up-to-date calendar listings. LossPreventionMedia.com/events

Jacque Brittain, LPC Editorial Director

The Crossfire Hurricane of Retail Crime

What does it take to make a problem real? How many tens of billions of dollars must we lose before a dilemma becomes a crisis? When are “thoughts and prayers” no longer enough to make up for the price paid when things go terribly wrong?

Retailers in general—and more specifically those charged with protecting the people and products in the retail setting— are faced with these questions on an ongoing basis. And for those who live every day in the world of retail, retail crime is without question a real and powerful concern.

Why don’t we know the exact dollar figures that are involved? There are a lot of reasons that can take us down rabbit holes. But when it comes right to it, it’s really not that complicated—thieves don’t leave receipts behind when they steal. Why are reported thefts down? Because getting an accurate measure of retail theft depends on both retailers and law enforcement reporting the activity; and due to many factors, this doesn’t always happen. That itself is a problem but it doesn’t mean that the bigger issue has gone away.

Safety Should Always Come First

With stocked shelves and infinite opportunities, retail stores are seen as an endless source of revenue, funding many of the criminal activities our communities are dealing with every day.

Retail, the nation’s largest private-sector employer, supports more than one in four US jobs—52 million working Americans. A cornerstone of our national economy, retail contributes almost $4 trillion to the gross domestic product. Unfortunately, it’s also a business that can be undervalued and often misunderstood. For those facing the complex challenges of retail crime and its impact on our stores and communities, this misunderstanding is something that simply can no longer be tolerated.

Show Me the Money

“Why do I rob banks? Because that’s where the money is.”

This infamous quote is often credited to notorious bank robber Willie Sutton, who made off with millions over the course of his criminal career. By stating the obvious, his matter-of-fact answer left most of us wondering why the question was even asked.

Why is this important? Because for today’s criminal, the money is found in retail stores. With stocked shelves and infinite opportunities, retail stores are seen as an endless source of revenue, funding many of the criminal activities our communities are dealing with every day. Multi-million-dollar ORC cases have become commonplace. Coupled with the endless reach of the internet, every community has the potential for significant criminal activity.

Of course, retailers are concerned with how retail crime is impacting profits. But what matters more is keeping the stores safe for our employees and customers. Blatant thefts and brutal attacks have increased at alarming rates, and people are getting hurt.

We coach and train our employees to avoid situations that can lead to violence and how to de-escalate incidents that occur in the stores. But that won’t stop the flash mobs that target retail outlets on a daily basis. It won’t deter the thief who jumps a counter and viciously beats a salesperson to steal game systems.

Ask the Real Experts

This is why retailers are sounding the alarm and investing time and resources to address the problem. But we can’t do it alone. We need responsible reporting that gives the true picture of what’s happening nationwide.

Retail crime is a complex, multi-faceted problem that has no easy fixes. Unfortunately, it’s also a problem that’s largely misunderstood. Awareness and understanding remain the key ingredients to helping find effective and sensible solutions. For those who really want to learn and support their communities, be part of the solution. Ask the right questions. Have the fortitude to ask the true experts dealing with the issues every day—and then show enough common sense to listen.

JUST THE FACTS.

Investigative Interviewing Techniques to Identify the Truth.

No case is the same; each requires a unique approach to identify the truth. That is why having a team of experts who can teach you how to ask the right questions is essential in bringing cases to a successful close. WicklanderZulawski (WZ) uses a combination of proven methods and evidence-based techniques designed to identify the truth. Our powerful, practical methods offer flexible approaches providing you with the ability to alter strategies depending on the level of evidence, subject considerations, and type of interview.

Our training courses will equip you with the skills and techniques necessary to navigate complex conversations to ensure you never miss a crucial piece of evidence again. Whether you're a seasoned investigator, interviewer, human resource professional, or executive, our training courses will transform you into a truth-seeking mastermind trained to extract hidden truths and effectively close the case.

IN PERSON OR VIRTUAL

InvestigativeTechniquesInterviewing

PracticalWorkshopApplication

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CustomizedProgramsTraining

CONSULTING

Investigative Services

Personal & Professional Development

Interviewer Performance Critiques

Interviewing Manual and Standards Review

ONLINE

LIVE Webinars for Individuals & Teams

LIVE Open InvestigationsSource (OSI)

10-Hour Course for Loss Prevention

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FREE LEARNING RESOURCES

WZ is proud to offer a wide range of free learning resources that are easily accessible at www.w-z.com. Whether you're looking for video tips, articles, WZ All Access interviews, or Instructor Insights with takeaway content, we have something for everyone. Take advantage of these valuable resources today!

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