Prime time for inventory theft

The early morning theft of jewelry at Betteridge Jewelry Shop on Greenwich Avenue in Greenwich two weeks ago marks the start of the holiday stealing season. Thieves are aware that crowds are large, inventories are high and security focus is low.

“Stores are going to be busy this year, especially with the increase in sales, and with the number of customers you can expect stores to be full,” said Joe LaRocca, senior asset protection adviser for the National Retail Federation.

LaRocca said while overall inventory shrinkage figures are down from previous years, from about $36.5 billion to $33.5 billion, retailers can expect increases in theft, particularly external theft, during the holiday season.

“Increased holiday sales means more shoplifters,” said LaRocca. He said it”™s not only the amateur and opportunistic shoplifters that retailers need to be concerned about. Holiday sales means an increase in organized retail crime as well. He said that based on his organization”™s yearly reports nearly 90 percent of retailers say they are victimized by organized retail crime every year, with 60 percent saying it is getting worse.

Virtual theft up during holidays
Frontier Communications in Stamford has created new software to aid the defense of the virtual thefts: hackers, cyber thieves, spammers, who are counting on snatching your personal or business identity.

According to the Identity Theft Resource Center, the last quarter of the year offers the biggest shopping season and the greatest opportunity for identity thieves as well.

According to Money Management International identity theft is the fastest-growing crime in America, affecting more than 10 million victims every year.

LaRocca said that retailers should be especially conscious of increases in these crimes leading up to the shopping season. He said it is the retailer”™s responsibility to customers to protect their financial and identity information.

“August, September and October are a heavy period for boosters because they”™re in the business of stealing and reselling and they”™re stocking up for the holidays just like legitimate retailers would,” LaRocca said. He said it will continue right up to the holidays.

Survey says consumers at risk
A recent survey by TraceMyID.com, part of Affinion Security in Stamford, showed that while the majority of consumers take steps to protect their identity, many admitted to risky behavior that could put them at risk.

Affinion enlisted Frank Abagnale, legendary identity thief, of whom the 2002 film “Catch Me if You Can”Â is based on, to provide tips to consumers.

“While consumers may know the basic steps to take to prevent against ID theft, in the holiday season it can be easy to forget that you need to stay vigilant,” said Abagnale. “Shopping at unknown sites, having your payment information stored on multiple sites and failing to check your account statements; behaviors like these can put consumers at risk.”

Safe sites should be a priority
One of the biggest risks respondents reported was purchasing an item from a website that they were not familiar with at the time of purchase, with almost 60 percent admitting to this behavior.

Almost 80 percent cited “best price” as the motivating factor for purchasing from an unfamiliar website. In addition to shopping at unfamiliar websites, more than half of the consumers surveyed reported that their payment information is stored on at least one website, between one to three sites, or that they do not even know how many sites have their information stored.

Abagnale recommends consumers limit the credit cards you carry, actively keep receipts and checking statements, pre-protecting your computer, be skeptical of sites you shop at, giving cash or gift cards over checks, strengthen passwords, stop mail or newspaper delivery if traveling for very long and, of course, keeping your eyes on your wallet.

Return fraud expected to rise
In addition to theft, the holiday season means an increase in return fraud. A survey released recently by the National Retail Federation found that based on the 111 retailers surveyed, return fraud is expected to amount to $3.68 billion this holiday season, up from $2.74 billion last year. Return fraud will cost retailers an estimated $13.95 billion during the 2010 calendar year, up from $9.59 billion in 2009. LaRocca said retailers need to ensure that they have strong return policies in place to combat fraudulent returns. “It”™s hard to find that balance between honest customers versus someone who is abusing the policy either ethically or criminally and stealing from stores,” he said.