Security Update – 28 April 2009

Figures released by the New South Wales Bureau of Crime Statistics and Research in April show that shoplifting increased 7.8 percent in the two years to December 2008. The rise in shoplifting was due to a surge in the theft of food, mobile phones, alcohol, cosmetics and laptop computers. Shoplifting and fraud were the only two major categories in the crime report to register an increase.

Bureau director Don Weatherburn predicted that crime trends would continue to remain steady for the next six months before the financial crisis may start to have an impact as unemployment increases often coincide with small average increases in crime levels. Opposition police spokesman Mike Gallacher warned that increases in property crime will occur as the economic slowdown continues. Property crime has increased markedly in other countries around the world, including the United States.

The economic slowdown has resulted in decreased funding for many law enforcement agencies. Nearly half of police chiefs surveyed in the United States in October 2008 felt that the economic downturn had affected their agency’s ability to reduce crime. The United Nations has warned that ‘an unprecedented rise in organised crime’ could result from the financial crisis. A recent rise in ATM fraud in Sydney, Brisbane and Melbourne has been attributed to globally-functioning East European crime syndicates.

International Operations Group - Recommendations

Theft by employees and shoplifting will be the most likely types of crime to increase during the financial crisis. The Australian Retailers Association estimated in 2008 that shoplifting costs retailers approximately $5.8 billion annually, almost two-thirds of all retail crime losses. In the face of increased shoplifting, retailers are advised to heighten their levels of security by maximising the use of source tagging, CCTV and security guards. During times of economic difficulty, retailers often reduce their loss prevention budgets. However, with shoplifting levels rising, the savings achieved through security and loss prevention cutbacks will quickly be outweighed by losses due to theft.

International Operations Group – Services

International Operations Group provides intelligence and security support for corporate and individual clients across the globe. In particular we have specialist investigators who are able to provide strategic solutions to detect and apprehend shoplifting offenders. Furthermore, our licensed security consultants are experienced in the provision of security risk management and mitigation strategies, to assist reduce the frequency and effect of shoplifting incidents within retail environments. Please email intel@interopsgroup.com for further information.

For more information on our fee-based intelligence updates or bespoke reporting, please email Rob Stevenson - rob@interopsgroup.com. Rob can also be telephoned on +61 [0] 420 244 909.