Organized Retail Crime (ORC) refers to large-scale theft orchestrated by criminal groups with the aim of reselling stolen goods for profit. Over recent years, the severity and complexity of ORC have increased, posing significant challenges for the retail industry. Once primarily a physical store problem, ORC has rapidly expanded to encompass e-commerce platforms, where criminals exploit digital marketplaces with the same sophistication. This shift has made loss prevention even more difficult, as retailers now face the dual challenge of protecting both brick-and-mortar locations and online stores.

According to the National Retail Federation, ORC costs U.S. retailers approximately $30 billion annually. As retail crime continues to escalate, it becomes crucial for businesses to adopt comprehensive, multi-channel loss prevention strategies. In this article, we explore how ORC operates across physical and digital spaces, the evolving tactics used by criminals, and the strategies retailers are implementing to combat this pervasive threat.

Understanding the Scope of ORC and Multi-Channel Theft

Physical Stores as Targets:

Traditionally, organized retail crime was confined to physical stores. Criminal syndicates often target high-value, easily resalable items, such as electronics, clothing, and cosmetics. These goods could be quickly sold at flea markets or resold online for a profit. Criminals usually operate in teams, using distractions while filling bags with merchandise.

For example, in 2024, about 20 suspects orchestrated a high-profile “smash-and-grab” robbery at a jewelry store in Sunnyvale, California looting nearly $2 million worth of merchandise in just a few minutes. This type of theft, often carried out with weapons or vehicles, highlights how ORC groups are increasingly using violence and speed to avoid detection.

E-Commerce Platforms as New Targets:

As more consumers shift to online shopping, organized retail crime (ORC) groups have adapted their tactics to exploit e-commerce platforms. These criminals engage in various fraudulent activities, including returns fraud, non-payment/non-delivery fraud, and credit card fraud.

In returns fraud, stolen items are returned for store credit or refunds, often using fake receipts or manipulating return policies. Non-payment fraud occurs when a seller ships goods or services to a buyer, but the buyer fails to pay. Non-delivery scams, on the other hand, involve situations where a buyer pays for goods or services online but never receives the items they ordered.

In 2023, the FBI’s IC3 report revealed that non-payment and non-delivery scams resulted in over $309 million in losses, while credit card fraud caused an additional $173 million in damages.

Combining Offline and Online Operations:

The rise of omnichannel theft, where offline and online operations intersect, has greatly complicated the landscape of retail crime. Criminals are exploiting weaknesses in retailers’ systems, such as returning stolen items bought online at physical stores or stealing products from stores to sell them online.

One example is a notorious crime ring led by a woman who hired approximately 12 women, known as the “California Girls,” to steal goods from over 200 Ulta Beauty stores and other major retailers. The stolen items were resold on Amazon through an “Online Makeup Store,” where they were sold to unsuspecting customers at a fraction of their original retail price. This operation generated nearly $8 million in profits through the Amazon storefront since 2012, until it was eventually shut down.

Evolving Tactics of Organized Retail Crime

Advanced Techniques for Organized Theft Rings:

Physical theft has become increasingly sophisticated, with traditional shoplifting being replaced by more complex tactics, such as using stolen debit/credit cards for purchases, organized theft rings, and money laundering operations. For instance, in January 2025, four individuals were charged by the Manhattan District Attorney’s Office for allegedly operating an identity theft ring.

The group is accused of stealing $500,000 from multiple victims, using one of the stolen debit cards to purchase over $72,000 worth of products and gift cards at Apple Stores throughout the city in just 24 hours.

Online Fraud and E-Commerce Exploits:

E-commerce platforms are vulnerable to a wide range of online fraud tactics. Criminals often use stolen credit card information or fake identities to purchase products. They may also exploit seller platforms by engaging in “brushing” scams, where they send unsolicited items to inflate seller ratings and deceive future buyers.

The increase in fake websites and counterfeit storefronts has contributed to a surge in fraudulent transactions. According to the 2023 Consumer Sentinel Network Data Book, the Federal Trade Commission (FTC) reported losses totaling $382 million related to online shopping scams and negative reviews.

Omnichannel Criminal Activities:

Omnichannel criminal activities, such as the return of stolen goods purchased online, are becoming more common. For instance, an ORC group may steal items from a physical store, buy similar items online, and return the stolen goods to the store for credit. The growing prevalence of “porous” inventory systems, where inventory is not accurately tracked across both physical and digital channels, creates the perfect opportunity for these criminals to exploit loopholes.

Moreover, gaps between in-store and online inventory systems can allow criminals to return stolen goods purchased on one platform to another, often without detection, leading to significant losses for retailers.

Retailer Strategies to Combat ORC and Multi-Channel Theft

Advanced Technologies:

To combat ORC and multi-channel theft, many retailers are adopting advanced technologies to secure both physical and digital spaces. Technologies like RFID tags and AI-based systems are now being used to either track inventory in real-time or prioritize repeat offenders, enabling retailers to spot anomalies and reduce shrinkage. For example, RFID technology allows retailers to monitor the movement of high-value items, making it harder for thieves to steal without detection while innovative technologies such as blockchains are used for tamper-proof product tracking and digital traceability.

In addition, AI-driven analytics  tools such as Hubstream can alert store personnel or loss prevention teams any suspicious activities across the region, such as unusual return patterns or repeat offenders. Retailers are increasingly integrating these technologies into both in-store and online environments, enabling them to detect fraud across multiple channels and locations in real-time.

Collaboration with Law Enforcement:

Retailers are strengthening their partnerships with law enforcement and industry associations to combat organized retail crime (ORC). In the U.S., the Retail Industry Leaders Association (RILA) collaborates closely with law enforcement agencies to exchange intelligence and develop strategies to dismantle organized crime rings.

Another example of successful collaboration occurred when the California Highway Patrol’s Organized Retail Crime Task Force, working alongside several law enforcement agencies, dismantled a retail theft ring responsible for stealing over $1 million worth of merchandise from Apple stores across multiple counties in California and beyond.

Integrating Online and Offline Loss Prevention Strategies

Integrating online and offline loss prevention strategies is essential for reducing retail theft and improving overall operational efficiency. Here are three effective approaches:

The rise of Organized Retail Crime (ORC) and multi-channel theft presents a growing challenge for the retail industry. As criminal syndicates adopt their tactics to exploit both physical stores and online platforms, retailers must evolve their loss prevention strategies. By investing in advanced technologies, collaborating with law enforcement, and integrating online and offline loss prevention strategies, retail brands can better protect themselves against this pervasive threat.