Organized Retail Crime (ORC) is defined as the theft or fraud activity conducted with the intent to convert illegally obtained merchandise, cargo, cash, or cash equivalent into financial gain (not for personal use), typically through their online or offline resale. ORC typically involves a criminal enterprise that organizes large-scale thefts from a number of retail stores and employs a fencing operation to sell the illegally-obtained goods for financial gain. It should be distinguished from “shoplifting”, which is typically a retail theft by a single individual of small number of goods for personal use. And as NRF’s just-released 2012 Organized Retail Survey found, a record 96 percent of retailers said their company was a victim of organized retail crime in the past year – proving that no retailer is immune to ORC.

The new law gives law enforcement officials and state prosecutors more tools to combat organized retail crime by punishing criminals for triggering fire alarms and using a booster bag in the commission of a theft. State officials are hoping the law also serves as a deterrent to would-be criminals in the state.

The measure comes after months of working with Colorado retailers, loss prevention specialists, law enforcement and prosecutors across the state. Chris Howes from the Colorado Retail Council, John Lites from Safeway and many others have been driving this issue and I expect we will see many more wins from the team there.

Earlier this month a woman being apprehended by Sears loss prevention team for stealing underwear is caught on tape resisting arrest. The suspect, Vanessa Ojeda, is seen attacking one of the agents and pulling chucks of his hair out. According to news reports, when Police went to arrest Ojeda she was accompanied by a suspect heroin dealer.

Retailers are always concerned about the safety of their employees, customers and even shoplifters – a key topic at NRF’s Loss Prevention Conference next month.  When witnessing a crime or engaging someone during an arrest, emotions run high.  It is sad to think the suspect’s greed for $1,100 was the cause of so much grief for the Horner family and Target co-workers, or some Hello Kitty underwear is worth the pain suffered by the Sears employee.

Florida Prosecutors are charging Bettis with third degree murder, stating his actions directly contributed to Mr. Horner’s death. Ojeda will most likely be charged with a felony charges in Texas. We wish prosecutors in both cases the best of luck and give full support to the loss prevention and law enforcement professionals who risk their lives every day to keep customers and employees safe.

One of the kids has been identified and his mother was interviewed by KPTV. She says, “he didn’t steal anything and he doesn’t deserve to be punished for the bad choices other kids made”, also saying “he was just in the wrong place at the wrong time and now you see the consequences behind it.”

In LP speak, we classify these as a multiple offender crime, where a pre-existing group – everyone from gangs to teenagers to robbery crews – engages in illegal activity. While there are distinct differences in how the groups organize, multiple offender crimes may involve serious criminal behavior including assault, theft and vandalism. In addition to the financial losses they cause companies, multiple offender crimes disrupt the normal flow of business in stores and shopping centers and create significant safety concerns. Some of these traditional multiple offender crimes are being organized with flash mob tactics.

Last year, NRF conducted research and created guidelines for retailers to consider when enhancing theft, civil disturbance, crowd management, workplace violence and safety policies. The report, released in August 2011, was based on 106 U.S. retail companies surveyed about multiple offender crimes following a wave of incidents from Los Angeles to Washington D.C. Over three-quarters (79%) of retailers reported being a victim of a multiple offender crime in the past 12 months. Half of these companies have experienced 2-5 incidents in the same period.

On a far more positive note, this year we’ve been reading about “cash mobs,” defined by Wikipedia, as a group of people who assemble at a local store and all buy items from that business. The purpose of these mobs is to support both local businesses and the overall community, as well as provide social opportunities. Inspired by flash mobs, it’s nice to see communities identifying a negative trend and making something positive out of it. Perhaps the cash mob trend will take off – and juveniles who contemplate participating in flash mob vandalism will have a change of heart.

Organized retail crime affects virtually every retailer in America, costing the industry tens of billions of dollars each year and a majority of companies reporting the problem is getting worse, not better. It impacts everything from the bottom line to the safety of people in the stores. As criminals become more brazen, retailers are working fervently to cut down on organized retail crime activity in order to ensure the safety of their associates and shoppers.

In NRF’s 2011 Organized Retail Crime Survey, Tide was not listed specifically on the NRF’s list of top items targeted by organized retail crime groups, however it does fit the profile and some organized retail crime cases were publicized in the local coverage today. Last year, I discussed what retailers are doing on the legislative front to combat this multi-billion dollar problem on CNBC’s Squawk on the Street.

Criminals are keen on obtaining the hottest-selling merchandise because of its high resale value. Trends retailers have identified in top-fenced merchandise include the desire for all branded merchandise, particularly exclusive licensed goods. Consumable products such as over-the-counter medications, infant formula, high-end technology devices and designer denim are some of the top targeted items to be fenced. Retailers are constantly experimenting with ways to protect targeted items. Many stores reposition products where employees can keep a watchful eye on them, others limit quantities on display, while several use special locking devices such as secure caps and a few are locking them up.

As retailers continue to build their defenses against the growing problem of organized retail crime, criminals are finding myriad ways to work around the system. Over the past five years, many Loss Prevention experts have adjusted their tactics to prevent, detect and investigate these costly crimes by working with industry groups, stepping up legislative efforts and partnering with law enforcement. This is not a problem easily solved by working alone and demand collaborative solutions. Industry leaders at NRF’s 2012 Loss Prevention Conference and Expo will discuss the over-arching trends of asset protection and share strategies for retailers to prepare and respond to any organized retail crime situation.

Whether it’s Tide, designer jeans, electronic games or vacuum cleaners, the dirty laundry on these criminal groups will come out in the wash eventually. To see progress that’s been made, check out CNBC’s Crime Inc: Stolen Goods for exclusive interviews with retailers and law enforcement, as well as footage of organized retail crime raids and cases.

As you might suspect, the incident caused panic and confusion among everyone involved. Instantly I was reminded about the importance of retailers’ safety protocols and active shooter guidelines.  During any emergency, a retailer’s top concern is the safety of their employees, customers and even the suspected shoplifters. For law enforcement officials, the safety of everyone involved is also a top priority.

The decision to confront someone committing a crime is never taken lightly, and we appreciate the difficult work of law enforcement professionals. When an officer feels their life is in danger, they may use deadly force.

Retail criminals know that if they are apprehended they face arrest, prosecution, bail and even jail. Oftentimes, they will stop at nothing keep from getting caught. Unfortunately, some of these crimes are committed through acts of violence and can endanger the lives of others.

Last night’s incident should serve as a reminder to retail associates and loss prevention professionals that it pays to be prepared. Retailers should make sure their staff is adequately trained and knowledgeable of what to do in these instances. Most importantly, retailers should take extra time to make sure their loss prevention staff are aware of the company policy regarding shoplifting, as many companies these days actually enforce a ”hand-off” approach so as to lessen the danger potential for other shoppers, store employees and even the suspected shoplifter.

NRF’s active shooter guidelines are a great resource for retailers and their staff when preparing their emergency and crisis management plans. Email Angelica Rodriguez at rodrigueza@nrf.com to receive a copy of the guidelines.

A convicted felon on parole for manslaughter attempted to abduct a girl and carry her out of the store. According to the girl, the man grabbed her and tried to cover her mouth. She remembered her “stranger danger training” and began screaming and kicking until he ultimately dropped her. It was all caught on tape, and thanks to the assistance of Walmart employees and quick action by police, the felon was arrested a short time later. Walmart is one of thousands of retailers who have a special alert program to react swiftly to actions like these.

Thousands of children are abducted each year, according to the National Center for Missing & Exploited Children (NCMEC), which offers free tools on their website for businesses and parents to address child safety at home, school and public places. For retailers, stores and other public places, NCMEC has created the Code Adam program in memory of 6-year old Adam Walsh. Offered free of charge, the Code Adam program is one of the country’s largest child-safety programs. It provides recommendations for how to immediately, effectively and efficiently respond during an incident - just like the one in Bremen, GA.

Since the creation of Code Adam in 1994, the program has been credited with being a successful and preventative tool against child abduction in more than 22,000 stores across the county, including Walmart, Kmart, Home Depot, Gap, Toys “R” Us, Hannaford Brothers Corp., Shop & Save Supermarkets, Shop Rite Supermarkets, Old Navy, Dick’s Sporting Goods and Burlington Coat Factory outlets. See a partial list of retailers and other public facilities that have implemented the Code Adam program.

May 25 is National Missing Children’s Day. The disappearance and eventual homicide of 29 Atlanta children between 1979 and 1981 exposed a fundamental flaw in the system – there was no coordinated effort between federal, state and local law enforcement, no national response system in place, and no central resource to help searching families. In 1983, in President Ronald Reagan proclaimed May 25 National Missing Children’s Day to serve as a reminder for all parents, guardians, role models and even retailers to make child safety a priority.

Any good crisis management plan involves planning and testing. With new technology available and following years of work collaborating with broadcasters, the government is ready to hit the button.

On November 9 at 2:00pm Eastern, the Federal Communications Commission and the Federal Emergency Management Agency will conduct the first nationwide test of the Emergency Alert System. The test will include transmission of a “live” Emergency Action Notification alert code to all EAS participants and a notice to the general public that the EAS has been activated for a national emergency, along with an audible notice that “this is a test.” The test will not be carried on NOAA Weather Radios.

Because this is a “live code” test, the automatically generated EAS text crawl on TV screens will display as an actual Emergency Action Notification. Nothing in the text crawl will indicate that the alert is a test. Broadcasters are encouraged to use a text slide in conjunction with the crawl, but they are not required to do so. The test will last approximately three minutes. The FCC and FEMA have requested that broadcasters air public service announcements in advance of the test to assure the public that this is only a test.

Please help get the word out to your stores and employees, “This is only a test.”

Any good executive or store manager will tell you that hiring the right team will make or break a store. Sifting through hundreds or even thousands of employment applications and interviewing countless individuals to fill those coveted full, part-time and seasonal positions can be a daunting task. I think businesses, especially retailers, do an incredible job hiring in the communities they serve and always look for the most qualified candidates. It’s not always an easy choice.

Today NRF released its first piece of research on the topic of background screening. We polled retail executives from 96 of the nation’s leading department stores, mass merchants, discounters, drug stores, grocery stores and restaurants to examine their use of background screenings before and during the application and employment process.

The findings? Nearly all retailers – a whopping 97% – utilize background screenings in some form during the application, hiring and employment process, according to the survey. Additionally, a majority of retailers surveyed report that human resources (56%) and loss prevention departments (39.4%) are most often charged with criminal background screenings and similarly are the same departments that can override employment decisions to ensure a fair and open process for all applicants and employees.

In the drafting process, I’ve been sharing some of this report with NRF member companies – and some have changed their operations in response. One company moved their background process from loss prevention to human resources. Another retailer only performs drug screening at this time and is now exploring the use of criminal history and sex offender checks for their store employees going forward.

I also received very candid – and sometimes colorful – comments from retailers earlier in the year as the Equal Employment Opportunity Commission (EEOC) began consideration of new guidelines. The EEOC is still considering new guidelines that would prevent all businesses from asking potential employees about their criminal history during the application process. Their goal is to remove employment barriers for convicted criminals and ways to ease criminal re-entry into the workforce. NRF has expressed serious concern about the potential changes and their impact on the safety of customers and employees.

This new team was put in place by Chief Raymond Schultz, who also established the Albuquerque Retail Assets Protection Association (ARAPA). Chief Schultz has demonstrated himself as a national leader in the fight against retail crimes in Albuquerque and city government officials throughout the country have been watching. Several major metropolitan areas have taken elements of Schultz’s strategy, including the ARAPA program, and implemented similar initiatives in their cities.

The Albuquerque Police Department has built a successful track record of working with the private sector and area law enforcement agencies to prevent and investigate retail crimes. The Department has established a team of highly skilled law enforcement professionals dedicated to fighting this problem and has served as an important deterrent to perpetrators.

This year’s NRF Organized Retail Crime survey found that organized retail crime affects almost every single retailer, with 95 percent reporting they have been a victim of organized retail crime in the past 12 months, up six percent from last year. Although retailers continue to build their defenses against this growing problem, criminals are finding myriad ways to work around the system. Retailers are also reporting that the criminals they apprehend are increasingly resorting to violence, putting the safety of both associates and customers at risk.

On October 13th, the Albuquerque Police Department along with regional law enforcement, retailers, banks and hotels will be meeting to discuss economic crimes. I’m excited about speaking at the event and hope to see you there.

On that day, I was the head of Disney Stores loss prevention program. Shortly after American Airlines flight 11 hit the North tower and TV news coverage began, my cell phone started buzzing. As part of an entertainment company with extensive law enforcement relationships, corporate operations on the East Coast and a TV news network (ABC News) in the heart of Manhattan, we were getting near real-time intelligence about the events unfolding in New York City, Washington D.C. and Pennsylvania.

Like many I watched in horror as United flight 175 crashed into the South tower. All of the emergency preparedness, crisis management and business continuity training helped numb the pain and shock enough to begin responding. Our team in the field responded quickly under an enormous amount of pressure with little time or direction in an effort to get people out of harm’s way. The Crisis Response and Business Continuity plans immediately kicked into full activation of our Emergency Operations Center (LP, IT, HR, Operations, PR and company executives).

From the corporate office 2,500 miles away, two challenges were quickly apparent.

Our first challenge was communicating with stores in the three impacted zones to check on our people and make sure we were getting everyone out of harm’s way. Fortunately, during Y2K we developed a sophisticated crisis management and business continuity plan, largely modeled after the Incident Command System, with an elaborate set of redundancies to lead the organization, communicate with our company properties and people worldwide.

Our biggest challenge was reaching East Coast stores. The national communications grid was crippled, so we used a back-up protocol developed during Y2K to push hot-shot communications through our 24/7 Point-of-Sale team, appropriately named the “Rescue Rangers,” to every cash register and computer system in the chain via satellite. The systems back then were primitive by today’s standards, so the message needed to be brief and direct. It went along the lines of, “Due to a crisis event, close your store immediately. Secure cash and lock gates. Call the TDS hotline for further direction this evening (XXX) XXX-XXX.”

Next was the decision about the remainder of the chain. Sporadically we received calls from some managers asking about closing and other saying the mall was “thinking about closing” for the day. It was clear we needed to take all factors into account (safety, contractual, financial, brand image, etc.) and keep people safe and feeling comfortable at work. Through a thoughtful conversation with an internal partner, Megan Curtis (now the Global Director, LP at Disney Retail), and industry partner Keith White (SVP, LP at Gap Inc.) we made recommendations to our leadership – close the chains for the day immediately. A short time later most other stores and malls followed the same protocol.

Though the events of 9/11 seems like yesterday for many of us, it’s important for our industry to look back on the last decade to see how far we’ve come from a disaster planning standpoint. Retailers have played a significant role in the helping shape our nation’s disaster response, relief and preparedness over the last decade. Recent events like Hurricane Irene, the Joplin tornadoes and the earthquake in Japan have offered countless opportunities for retailers to implement their carefully-crafted plans and continue to make changes that will help keep customers, associates and property safe. (Remember the quick-thinking of a Lowe’s manager during a tornado this past spring in North Carolina? Without a strong disaster plan and proper communication, the outcome could have been very different.)

Retailers have come a long way from a disaster planning standpoint, but our industry is not the only one that’s changed. In 2001, mainstream media was largely conveyed through print, radio and television. While news outlets had websites, they were nothing like today’s lightning-fast updates of breaking news. Social media as we know it didn’t exist, either. Blogs were scarce. (There also weren’t as many cell phones, or as much texting.) Ten years after 9/11, the Internet is just as much a valuable resource for breaking news as it is a wealth of knowledge for preparing for imminent dangers, like natural disasters or national crises. And during an event, many of us turn to Twitter and Facebook to get real-time updates on what’s happening or to keep tabs on loved ones.

Information sharing – sometimes through online sources – has also seen dramatic changes from 2001. Not only has the government set up dedicated disaster response teams through the Federal Emergency Management Agency, today FEMA directly engages private sector companies ahead of major events to foster the best possible response between federal, state and local entities and private companies.

The bottom line? Retailers – and Americans – are more prepared than ever.

But it’s not enough to just sit back and tell ourselves that we’ve done a good job. To believe that we’re ready for anything that Mother Nature, or terrorists, throw at us. As an industry, we need to constantly strive to do more and be even better prepared for inevitable tragedies whenever they arise.

According to the Wall Street Journal, there is credible evidence that al Qaeda has been planning an attack against the U.S., likely in New York or Washington D.C. this weekend to coincide with the 10 year anniversary of 9/11.  The U.S. Department of Homeland Security also released information about the possible threat.

This weekend we memorialize the 2,977 people who were killed ten years ago. We especially remember the individuals impacted in our retail family and over 400 emergency workers (including 60 police officers) who responded to the scene and died in the line of duty as they tried to save lives.

As the anniversary of 9/11 approaches, NRF is once again working with the U.S. Department of Homeland Security and their Federal Emergency Management Agency to encourage retailers and private citizens to be informed, make a plan and get involved as part of National Preparedness Month. We’ll be featuring tips for retailers on Retail’s BIG Blog and will post additional information on safety topics on lpinformation.com.

This month, I encourage you to set aside time to honor the memories of those who lost their lives on 9/11 by mobilizing those in your own company to get involved, pour through your existing disaster plans for any areas you could improve, and make sure you communicate your plans to everyone – from top management to part-time store associates.

While none of us could have anticipated the severity and scope of the tragedies on 9/11, we can all work to ensure that we have prepared our stores and our homes as much as possible in the event that disaster ever strikes again. Though many of us felt helpless on that horrible day ten years ago, should feel empowered knowing that there are opportunities for us now to plan ahead to keep shoppers, employees, and our families safe in the future.