ORGANIZED RETAIL CRIME MALL/RETAIL PARTNERSHIPS CHALLENGES THE BEGINNING OF A PARTNERSHIP OPPORTUNITIES 6/13/2013. Steve Crumrine

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1 ORGANIZED RETAIL CRIME MALL/RETAIL PARTNERSHIPS CHALLENGES Steve Crumrine CHALLENGES MALL SECURITY CHALLENGES Retail Loss Prevention Effort Traditional view: Responsible for security in the common area (not tenant space) Are not protected by merchant privilege statutes to stop/detain a suspected shoplifter. Only tenant employees are protected by law, and therefore not civilly liable, for stops/detainment. Are generally unaware of crime occurring inside tenant spaces unless requested by a tenant to stand by when a suspected shoplifter is detained. Is there adherence to loss prevention best practices? Planned store design/merchandising display Sound training for store employees Clear policy on detaining/prosecuting shoplifters Excellent communication with mall security and police In-store loss prevention employees CCTV in tenant space OPPORTUNITIES Abercrombie & Fitch GAP THE BEGINNING OF A PARTNERSHIP Limited brands NRF Additional retailers 1

Training is required for all entrance level officers at GGP; also provided annually to all officers.

2 TRAINING VIDEO ORGANIZED RETAIL CRIME Developed by the International Council of Shopping Centers (ICSC) in collaboration with the NRF. Subject matter experts on the content of the training were several loss prevention executives representing major retailers. Training is required for all entrance level officers at GGP; also provided annually to all officers. The content trains officers on recognizing ORC groups, methods of operation, and the impact on the retail industry. Instrumental in developing the LP/mall security relationship. COMPREHENSIVE PATROL Progressive/Assertive method of patrol. Highly interactive with customers and retailers. Security officers spend more time in hot spot areas. Officers look for suspicious behaviors, including individuals that display characteristics/behaviors consistent with ORC participation. Subjects carrying empty bags, or bags with store names not in the particular mall Purses or bags that appear to have a foil lining Multiple trips to a vehicle Officers look for safety hazards that may pose a risk. NRF INVESTIGATOR NETWORK TOP 25 ORC MALL REPORT Attendees include loss prevention professionals, shopping mall security directors and law enforcement. Meetings provide an ideal opportunity for attendee s to: Meet new security/law enforcement professionals Network with attendee s with like issues/problems Learn current trending patterns/method of crime commission Learn about new technology in the loss prevention field Meetings generally have a pre-set agenda, with topics/issues that are current/relevant. They also provide an opportunity for discussion of individual issues/problems. Identifies the top 25 ORC malls on a bi-weekly basis. A quarterly and annual TOP 25 ORC Mall Report is also distributed. A customized Top 25 ORC Mall Report of only GGP malls is distributed to GGP Corporate Security. The report lists the retailers that were victimized at the top 25 ORC malls. The report information provides the opportunity to identify which retailers are hit most frequently, and through analysis, mall hot spot locations can be developed. Format may take the form of round table discussion with each table discussing a topic an reporting back to the entire group. ORC reporting ORC Reporting 2

3 ORC ACTION PLANS Action plans are developed at GGP malls with high incident levels of ORC. Utilize Top 25 ORC Mall Report to identify high risk ORC properties. Malls identified based on year-end, annual data or a property that is consistently listed on a biweekly basis. Plan includes: Hot spot locations determined through incident analysis Significance or scope of the problem A determination of the highest risk time of day/day of week Strategies/tactics to impact on the problem Comprehensive patrol Enhanced ORC training for security team Meetings with retail managers and district LP managers of affected stores to develop a plan to address issues collaboratively Introduce RCAT program Enlist the assistance of local police Strategic use of video patrol Create hot spot crime maps and post them in security office Conduct frequent walk-throughs of hot spot retailers RETAIL CRIME ACTION TEAMS (RCAT) The RCAT program is another tool to combat retail theft. Assigned team members wear plainclothes to blend in with shoppers. Officers will patrol the mall with the intent of observing characteristics and behaviors of retail theft. Officers DO NOT make arrests on behalf of retailers. While on RCAT patrol, when officers observe subjects participating in retail theft they will notify security dispatch. Dispatch will assign a uniformed officer for an immediate walkthrough and customer service interaction (if requested by retailer). Dispatch will call police if a booster bag or sensor removing tools are observed, or if requested to do so by the retailer. RAPID NOTIFICATION SYSTEM Mall retailers can be immediately notified of an emergency or important information, through , phone call (hard line or cell) and text. Examples of notifications include: Lost child or an elderly (dementia) patient Severe weather Evacuation Road closures Criminal activity Possible ORC ORC Success Stories SUCCESS STORY #1 SUCCESS STORY #2 On 3/6/2013 at Woodbridge Center, a security supervisor was walking to the Express Store to complete a walk through at 5:05 pm. The store is listed by the security department as one of their hot spot stores and receives periodic walkthroughs in an effort to deter ORC activity. As the supervisor arrived at the store he observed two males leaving the store, with one of the subjects carrying a Brookstone bag. There is no Brookstone at Woodbridge and the bag appeared to be stuffed with items. As the supervisor approached the two subjects and got eye-to-eye contact with them, the suspect who was carrying the bag dropped it and the two subjects ran through an anchor store and out of the mall. The bag was recovered with 75 items of merchandise worth approximately $3, The subjects eluded the responding police and security but the merchandise was recovered. On 3/13/2013 at 8:45 pm, the assistant director of security was standing in the area of Kay s Jewelry. The security department has identified the jewelry stores as a high value theft hot spots, with a high potential of being victimized during the hour after opening and the hour before closing. The assistant director was alerted by a Kay s employee about a subject that requested to see a high value ring worth $15,000.00, and ran from the store after being handed the ring. The assistant director placed a description of the subject over the radio to other security officers as the subject entered an anchor store. An officer on mobile patrol observed a subject fitting the description given by the assistant director walk out of the anchor store. The officer kept the subject under observation while directing the Woodbridge Police to the subject s location. The subject was arrested and the ring was recovered. 3

SUCCESS STORY #3 On 4/26/13, one the officers that was training for the Retail Crime Action Team (RCAT) followed two female subjects that he believed were acting suspiciously going in and out of

4 SUCCESS STORY #3 On 4/26/13, one the officers that was training for the Retail Crime Action Team (RCAT) followed two female subjects that he believed were acting suspiciously going in and out of stores carrying shopping bags. Inside New York & Company the officer observed them at a watch display but could not see if they actually took any watches. The officer followed the two out of New York & Company to inside of H & M. Inside H & M, the officer observed one of the subjects take a shopping bag from a counter area. The officer then observed the two subjects start to remove sensors from clothing and place the clothing into the shopping bag. The officer shared his observations with dispatch and requested the dispatcher to notify the loss prevention agent from H & M and to keep a camera on the area of the store. The dispatcher also notified Wayne Police to respond to the property. The officer left the area of H & M as the loss prevention agent followed the two subjects out of the store into the common area. The loss prevention officer made a stop on the two subjects with a security supervisor standing by. Subsequently, the loss prevention agent found approximately $ worth of clothing from H & M, 20 shirts valued at approximately $ from Ann Taylor, and 25 watches valued at approximately $1, from New York & Company in the bags the subjects were carrying. Nelson Harrah Director ORC Gap Inc The subjects were arrested by the Wayne Police for the theft of the merchandise. The responding police officer took the subjects to the station for further processing and investigation. The partnership began! Level setting on retailer s and security P&P Creation of master ORC training Creation of ICSC ORC video Field training to mall security teams throughout U.S. Continued Joint ORC mall operations ORC Training Topics for security Current trends in ORC methods & targets Conducted in train the trainer format How they operate in stores, mall proper and in parking lots Counter surveillance techniques Evasion techniques used by actors Effective apprehension best practices NRF/ICSC Mall Security ORC Training Video Learn Their Pain Points Retailers not sharing crimes with security Previous negative history with retailers/security Understanding retailer s/security policies Mall security has evolved 4

Gap Inc s ORC Action Plan Revision to prosecution policies Revised return policies Elimination of checks

T certified training to Law Enforcement Retailer s Policies When we can call security? What can we share?

What does security leadership need from us?

5 Gap Inc s ORC Action Plan Revision to prosecution policies Revised return policies Elimination of checks pilot Daily gift card report Daily mail check report P.O.S.T certified training to Law Enforcement Retailer s Policies When we can call security? What can we share? When can we prosecute? What does your company need from security leadership? What does security leadership need from us? JORCTF: Limited Brands, A&F, Macy s, Luxottica, Rue 21, Express & Gap Inc Overview of Operations PD, Mall Security & Retail LP Crimes we see During Operations Stops at Vehicles Identify Fences Significant Impact to Suspects & Community

31 Police Crack Down On Shoplifters, Weapons At Mall Zero-Tolerance Policy Enforced At

day Operation Multiple Retailers & Mall Security PD Special Response Team, Traffic Safety

Weapons At Mall Zero-Tolerance Policy Enforced At Independence Center Police Crack Down On

big day --We took away three Minivans full of Suspects 83 Arrests, 146 Warrants $13,000

folks here want to make sure this doesn't turn out like Bannister Mall.

6 31 Police Crack Down On Shoplifters, Weapons At Mall Zero-Tolerance Policy Enforced At Independence Center ORC Operation at Independence mall Formal plan to Impact ORC Suspects 3 day Operation Multiple Retailers & Mall Security PD Special Response Team, Traffic Safety and Canine units (27 officers) Mobile Command Center Police Crack Down On Shoplifters, Weapons At Mall Zero-Tolerance Policy Enforced At Independence Center Police Crack Down On Shoplifters, Weapons At Mall Zero-Tolerance Policy Enforced At Independence Center It was a big day --We took away three Minivans full of Suspects 83 Arrests, 146 Warrants $13,000 recovered Rape and Auto Theft Arrests Our Community is Safer Because of this Operation "The folks here want to make sure this doesn't turn out like Bannister Mall. I mean, it's not around any more --they want to not let that happen here," Captain Tom Gentry Independence MO Police Department 6

7 6/13/2013 First Steps in Creating your ORC Action Plan What are your most active locations? Benchmark with existing retail ORC teams Identify best established PD agencies and mall security that are serious about ORC It is time to influence policy change at your company? Join and contribute to ORCA s What s Next to Plan for? Continued growth of ORCA s throughout North America CLOUD investigations (Public & Private) Migration of ORC into remote markets Diversification of crimes by ORC actors Increased safety risk during their crimes Q&A 7

Signature: Signed by GNT Date Signed: 12/16/2013

Signature: Signed by GNT Date Signed: 12/16/2013 Atlanta Police Department Policy Manual Standard Operating Procedure Effective Date: December 30, 2013 Applicable To: All sworn employees Approval Authority: Chief George N. Turner Signature: Signed by