The latest report conducted by Centre for Strategic and International Studies (CSIS) revealed the estimated cost of cybercrime currently cost the global economy around $445 billion a year. This is the cost to individuals and businesses as hackers continue to deploy sophisticated attacks designed to overcome security protocols retailers and others have put in place. The Target (News - Alert) breach in 2014 and the recent Home Depot incident are two obvious examples of the capabilities of these criminals. Retailers have to fend off organized criminals from their digital platform and their brick and mortar establishments. In order to combat this threat more than 100 companies along with the NYPD have formed the Metropolitan Organized Retail Crime Alliance to improve the security efforts of retailers by sharing intelligence on many of the different criminal activities carried out in their stores.
According to the National Retail Federation’s 10th annual Organized Retail Crime Survey, the impact of organized retail crime in the U.S. is $30 billion annually, a problem that affects retailers of all sizes across the country.
The goal of the new alliance is to recognize the scams, rip-offs and individuals that are committing these crimes and make this information readily available to all the companies that are participating in the initiative. This venture has seen cooperation from different companies who compete for the same customers, but recognize this is a problem that affects each and every one of them and therefore must come together to put up a united front. Some of the companies included Macy's, JCPenney, Target, Home Depot, Rite Aid and many others. The retailers are combining their resources with more than 50 law enforcement agencies including the New York Police Department and the FBI.
This particular model was based after the Los Angeles Area Organized Retail Crimes Association (LAAORCA), which was established in 2009 and has resulted in lowering organized retail theft. LAAORCA was founded by retail crimes loss prevention managers along with the Los Angeles Police Department (LAPD), Commercial Crimes Division (CCD).
The success of LAAORCA was based on requiring members to actively share high level organized retail crime intelligence investigations and update their websites regularly to ensure the latest information is disseminated for all its members. Using different digital technologies, retailers are able to put all this information together and recognize trends in criminal activity much sooner than ever before.
Edited by Maurice Nagle
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