The Cost of Organized Retail Crime? $30 Billion a Year
It’s a telling case: a few years ago, members of two criminal organizations in California were charged for their role in a large-scale fencing operation to buy and sell over-the-counter health and beauty products—as well as other items like camera film, batteries, and infant formula—that had been stolen from major retail chain stores. The merchandise was then passed off to crooked out-of-state wholesale distributors, who just sold it back to unsuspecting retailers.
The cost to American businesses? About $30 billion a year. While that estimate includes other crimes like credit card fraud, gift card fraud, and price tag switching, the FBI’s Organized Retail Theft program—according to Special Agent Eric Ives of our Violent Crimes/Major Offenders Unit in Washington, D.C.—“specifically focuses on the most significant retail theft cases involving the interstate transportation of stolen property.” Organized retail theft, says Ives, is a “gateway crime that often leads us to major crime rings that use the illicit proceeds to fund other crimes—such as organized crime activities, health care fraud, money laundering, and potentially even terrorism.“