![]() Can you share some ORC examples involving omnichannel and supply chain?ĭT: ORC is not just limited to storefronts and customer-facing locations. ![]() ![]() Though of course ORC would not worry about whether it is seen as “essential” or not. HB: I guess the criminal elements have had to adjust how they do “business” during the pandemic as much as retailers have had to adjust. Several retailers have also restricted apprehensions or close encounters with shoplifters due to social distancing and other regulations, obviously resulting in an easier pathway for shoplifters. Major cuts in payroll have resulted in less staffing, both from a customer service and security standpoint which create greater opportunity for theft. Where they’ve been open, retail stores themselves have seen an increase in ORC fraud during the pandemic for a variety of reasons. Digital fraud has continued to escalate during the pandemic, as digital currency is more widely accepted, and employees working remotely are also more susceptible for social engineering or phishing schemes. Travel restrictions have limited the quality control and ability of compliance departments to be able to identify fraud and sanction accordingly. Supply chain and vendor fraud has increased as there have been fewer in-person audits and checks and balances on these processes during the pandemic. How?ĭT: The pandemic has driven the growth in ORC in a number of ways. HB: I’ve seen reports that the pandemic has had an impact on ORC. The lack of prosecution for these crimes may incentivize additional criminal activity. Law enforcement also may have their hands tied in certain jurisdictions as felony thresholds have increased and the priority for a misdemeanor shoplifting case falls low on the list. Retailers are taking a more hands-off approach with shoplifters and often have prosecution guidelines that may result in a trespass notice but no criminal charge. Many retailers and law enforcement also attribute the increase in ORC to restrictive policies and the decriminalization of these crimes. This creates a jurisdictional nightmare for retailers and law enforcement as they attempt to build a case across the globe. Omnichannel fraud and the ability for retailers to accept digital currency has also globalized ORC, as the location of the crime is no longer dependent as to the location of the suspect. The impact of supply chain fraud is increasing each year with a large emphasis on cargo theft. Absolutely – there has been a sizeable increase in ORC activity in the retail supply chain, warehouses and omnichannel fraud over the last few years. Would you agree, and what are the reasons behind it? Dave Thompson, CFI, President of Wicklander-Zulawski & Associatesĭave Thompson, CFI: Hi Hedgie. In its ORC report, the National Retail Federation says that 65% of retailers see ORC as more of a focus today than five years ago. Hedgie Bartol: Dave, ORC seems to be becoming an ever more serious issue. Dave has over 15 years’ experience in criminal investigations and supporting the retail industry, which gives him an ideal insight into the subject. Hedgie Bartol, Retail Business Development Manager at Axis, caught up with Dave Thompson, CFI, President of Wicklander-Zulawski & Associates to take a closer look at ORC and its impact on retail today. However, the issue of organized retail crime (ORC) is growing and may well outstrip the impact of shoplifting alone with crime taking place throughout the entire retail supply chain. It’s easy to think of crime in the retail sector as being largely related to small-scale shoplifting, either by individual criminals acting alone, those who are contacts of retail staff, or the staff themselves.
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