Earlier this week, we began a discussion of organized retail theft rings, the increasingly common form of shoplifting that costs the retail industry upwards of $30 billion each year. These sophisticated rings operate on a large scale, creating unique asset protection problems for retail companies who find it difficult to deter such skilled and knowledgeable shoplifters.

In addition, state and federal law enforcement efforts to investigate and prosecute ring members are often frustrated by retail theft laws and the criminals' knowledge thereof. For example, retail theft only becomes a felony when more than $5,000 worth of merchandise is stolen from one store. Therefore, thieves are careful to steal less than that amount from each individual retail location, thereby eluding felony prosecution.

This means that, regardless of the total amounts stolen, theft ring operators can only be held liable for misdemeanors if they steal less than $5,000 worth of merchandise from each individual location. Even when large-scale operations are uncovered, such as the recent $4.9 million worth of merchandise found in the California warehouse of a notorious interstate theft ring, ringleaders may only be charged with misdemeanors.

However, legislators are seeking a change. U.S. Senator Amy Klobuchar has proposed a new federal law that would aggregate total theft amounts and charge thieves based on the total cost of the stolen merchandise. The bill also seeks a better reporting system among police and retailers, giving them the tools to stop theft before it happens.

In addition, the proposed law would require websites such as eBay and Craigslist to provide better oversight of their websites, filing suspicious activity reports on suspected criminal sellers.

Regardless of the method, it is obvious that something needs to be done. Organized retail theft is quickly becoming an epidemic in the U.S., and a costly one at that.

Source: CBS, "Pro Theft Rings Transform Business Of Shoplifting", Tom Webb, 18 April 2011