Crimen Organizado en el Comercio (ORC)

Estrategias para reducir incidencias.Nelson Harrah, ORC, GAP Inc.

• Gap Inc. is one of the world's largest specialty retailers, with more

than 3,100 stores and fiscal 2008 revenues of $14.5 billion.

• Gap Inc. offers clothing, accessories and personal care products

for men, women, children and babies under the Gap, Banana

Republic, Old Navy, Piperlime and Athleta brand names.

• The Company also operates Gap Outlet stores and Banana

Republic Factory Stores (BRFS).

Company Overview

• Gap Inc.’s $14.5 billion in FY 2008 sales consist of:

Company Overview continued…

International Business $1.7B (12%)

• Wholly-Owned, Franchise &

Wholesale

North America Business $11.8B (81%)

• Gap, Banana Republic, Old Navy &

Outlet Stores in the U.S. and Canada

Online Business $1.0B (7%)

• gap.com, bananarepublic.com,

oldnavy.com, Piperlime & Athleta

Gap Inc.’s Online &

International businesses

combined have increased by

~$500M from 2006 - 2008.

• As of 2Q 2009, Gap Inc. operates 3,145 wholly-owned stores

encompassing 39.4 million square feet in 6 countries.

Company Overview continued…

United States

Canada

Japan

United Kingdom

France

Ireland

2,632

188

143

140

40

2

Total 3,145

• Additionally, the Company has 133 Gap and Banana Republic

franchise stores in 17 countries as of 2Q 2009.

FY 2009 Store Guidance

New Stores Store Closures

Gap NA about 10 about 60

BR NA about 10 about 15

ON NA about 5 about 20

International about 25 about 5

$34.80

$40.50

$37.40

$31.0 $33.60

$31.30 $33.20

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2001 2002 2003 2004 2005 2006 2007

Merchandise Losses

0

5

10

15

20

25

30

35

40

2007 Shrinkage

$34.8

Robbery $ .5

Auto Theft $7.9

Burglary $4.3

Larceny $5.8

Source: 1. University of Florida; National Retail Security Survey – Final Report 2007

2. FBI Uniform Crime Report 2007

(Results in billions)

Losses

Yes

No

ORC Survey Results• 85% of retailers surveyed reported

being victims of ORC

Lost Tax RevenueState Lost Revenue

California $228,155,000

Texas $153,750,000

Florida $106,920,000

Illinois $77,062,000

New York $74,205,000

Wisconsin $31,500,000

Virginia $31,440,000

Source: Food Marketing Institute 2007

Gap Inc ORC Team

• 24 Investigators

• 12 major markets

• SF, Los Angeles, San Diego, Las Vegas, Dallas, Houston, Chicago, Atlanta, Miami, NY, NJ and Boston

• Mall operations & fences

• Arrest 600 ORC suspects per year

• Training to Law Enforcement

Professional Shoplifters

“Boosters”

Steal desirable product

with the intent to resell

Fence

Pawn Shops, Flea Markets,

Street corners, etc.

30% of retail value

eFencing

Sell online through auction

sites and other web pages

70% of retail value

Fraudulent Refunds

Return merchandise to

retail stores

100% + tax of retail value

3 Types of ORC

• Transient Theft Rings

• Habitual Offenders

• Financial Crimes Artists

Transient Theft Rings

• Well Recruited, Trained and Operate

Nationally.

• Work in Teams of 3-10 People.

• Variety of Burglary Tools & Methods

• Can Steal $50,000 a Day.

• Sell Stolen Items to Fence for 20 Cents

on the Dollar

Transient Theft Rings

• Divided up Country

• 2000 Teams Operating Every Week

• Evasion Artists

• Heavily Funded for Bonds

• Puerto Rico DL’s and Intl. DL’s

• Most States are not Extraditing

Roles of a

Transient Theft Ring

• Director

• Lookout

• Booster

• Mule

Behaviors of

Transient Theft Rings

• Stoic & Intense

• Work in Teams

• Utilize Blocking Techniques

• Study Stores From the Outside

• Behaviors as They Operate in and

Outside of Malls

Communication Techniques

• Hand Signals

• Two Way Radios

• Nextels

• Marking Items to be Stolen

• Non Verbal Communication

Where They Steal In Stores

• They Want New Product

• Steal in First 25% of Sales Floor

• Steal Along Side Walls of Stores

• Stand Very Close to Fixtures

• They Distract Store Employees

Spotting Transient

Theft Rings

• These Actors Rarely Show Affection

Towards Each Other. I.E. Holding Hands

• Will Portray They Don’t Know Each Other

• Lookouts Will Be Strategically Staged

Outside of Target Stores

• Look for People Sitting Alone in the Rear

Area of Vehicles with the Ignition Off.

Counter Surveillance

Techniques

• Doubling Back While Walking

• Dropping Keys

• Stopping at Kiosks

• Luring Surveillance Teams Into the Open

• Will Not Walk Directly to Vehicles

Intensity!

Tools of the Trade

• Booster Bags

• Booster Pants

• Booster Girdles

• EAS Removal Tools

• Case & Under Stock Keys

Identifying a Booster Bag

• Reinforced Handles

• Four Handles

• Fold Marks

• Booster Bag Set Up

• People Overly Protective of Bags

• Move or Hide Bags When Security or

PD is in Area

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

Tools of the Trade

EAS Jamming Device

EAS Jamming Device

Tools of the Trade

Identifying Booster Pants, Skirts

and Girdles• Rubber Bands at Ankles

• Overly Stuffed Pants, Dresses and

Skirts

• Hanging Garments in Front of Pants

• Members Operate Similar to Booster

Bag Teams

• Members Walking Unusually Slow

Booster Pants

Booster Pants

Booster Pants

Booster Pants

Recoveries

Recoveries

Recoveries

Recoveries

Recoveries

Recoveries

Recoveries

Mall Arrest

Mall Arrest

Mall Arrest

Transporting Goods

Transporting Goods

Transporting Goods

Van Nuys Fence

Van Nuys Fence

Van Nuys Fence

Van Nuys Fence

Van Nuys Fence

NYC Fence

NYC Fence

NYC Fence

Amtrak Case

Amtrak Case

Amtrak Case

Amtrak Case

Amtrak Case

Hialeah Fence

Hialeah Fence

Hialeah Fence

Cabazon Fence

Cabazon Fence

Cabazon Fence

Skirt Boosters

Skirt Boosters

Skirt Boosters

Skirt Boosters

Eastern European Booster’s

Residence

Booster Residence

Tools of the Trade

Habitual Offenders

• Live Locally

• Conduct a Variety of Theft and

Fraud Crimes

• Tend to be Aggressive

• Often Retaliate Against Reporting

Parties

Violent Habitual Offenders

Financial Crimes Artists

• Commit an Endless Variety of Scams

• Check and Credit Card Fraud

• Return Exchange Scams

• Counterfeit Receipts

• PLU Switching

Fraud Rings

• Maintain Business Records

• Ret/Exchange Scams

• Counterfeit Receipts

• Massive Amounts of Receipts

• International DL’s

• Washed Receipts

Financial Crimes

Tools & Indicators

• Rolls of Retailer’s Receipt Tape

• Duplicate Receipts

• Counterfeit Checks and Credit Card’s

• Receipts Stapled Together

• Gift Cards with Receipts Attached

• Directions to Many Stores

Eastern European

Fraud Artists

Fraud Rings

Fraud Rings

Fraud Rings

Fraud Rings

Fraud Rings

Fraud Rings

Fraud Rings

ID Theft

ORC Analytics

ICSC Mall Security

ORC Training Video

What’s Next?

• Competitive walls have come down

• Cross company remote market

support

• Cross company ORC reporting

• Mall security training & partnerships

• Joint ORC Task Force

• Asset seizures

Q & A