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US Retail Theft Stabilises as Fraud Schemes Shift Focus

US Retail Theft Stabilises as Fraud Schemes Shift Focus

Retailers are seeing a cooling in physical shoplifting, with incidents dropping by 12.4% over the past year. However, the industry remains on high alert as criminal activity migrates toward sophisticated digital fraud and organized external theft schemes that bypass traditional in-store security measures.

The stabilization follows aggressive capital investments in advanced security technology and comprehensive staff training programs. According to data from the National Retail Federation and the Loss Prevention Research Council, merchandise theft fell 8.1% in 2025. Despite these gains, security executives report that the threat landscape is evolving rather than disappearing. Criminals are increasingly favoring remote scams, including phone-based fraud, gift card exploitation, and loyalty program manipulation.

Organized Retail Crime (ORC) continues to strain resources, with 40% of retailers reporting an uptick in coordinated incidents. Repeat offenders and "pushout" thefts—where individuals bypass point-of-sale systems entirely—remain persistent obstacles. Violence is another critical concern; retailers are responding by intensifying management training and deploying risk intelligence technologies to protect both employees and customers.

Reporting levels to law enforcement remain suppressed, as 63% of retailers file reports for fewer than half of their incidents. Many firms cite low-dollar losses that fail to meet felony thresholds and a perceived lack of follow-through from authorities. To address these jurisdictional gaps, the industry is currently pushing for the passage of the Combating Organised Retail Crime Act in the U.S. Senate, which aims to strengthen federal coordination against cross-border criminal networks.

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