Shoplifting
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- For the album released by Straw, see Shoplifting (album).
Shoplifting (also known as retail theft) is theft of merchandise for sale in a shop, store, or other retail establishment, by an ostensible patron. It is one of the most common crimes for police and courts.
Most shoplifters are amateurs; however, there are people and groups who make their living from shoplifting, and they tend to be more skilled. Some individuals shoplift in an effort to resist selling their labor, and/or to protest corporate power. These individuals target --often exclusively-- chain stores; Wal-Mart is an especially popular target for political shoplifters. (see Evasion)
A common slang term for shoplifting in Australia, Britain, and the United States is "five-finger discount". In the U.S., it is often referred to as "jacking" or "racking" and in the UK as "nicking". Professional shoplifters or organized shoplifting groups are often referred to as "boosters."
[edit] Economic impact and response from shops
Retailers report that shoplifting has significant effect on their bottom line, stating that about 0.6% of all inventory disappears to shoplifters. In 2001 it was claimed that shoplifting costs US retailers $25 million a day. Other observers, however, believe industry shoplifting numbers to be greatly exaggerated. Studies have found that over half of what is reported as shoplifting is either employee theft or fraud.
According to the 2001 National Retail Security Survey conducted by the University of Florida retail operations suffered an average annual shrinkage percentage of 1.75% in 2000. Although most retailers experience a shrinkage percentage of less than 2% some smaller retailers often experience monthly and annual average shrinkage percentages as high as 20%. According a study by the National Retail Security Survey 30.6% of shrinkage comes from shoplifting, 46% from employee embezzlement, 17.6% from administrative error, and 5.8% from vendor fraud.
Companies have introduced many technologies to combat shoplifting. Many stores have video cameras filming all areas of the store; larger stores are often patrolled by undercover investigators. Security devices are often affixed to products that set off alarms at the store exit if they are not deactivated or removed by a cashier.
According to the 2004 17th Annual Retail Theft survey conducted by Jack L. Hayes International 689,340 shoplifters were apprehended by 27 of the major U.S. retailers. This figure was a 4.86% increase from total of 657,414 shoplifters apprehended in 2003. In 2004 $70,039,564 dollars were recovered from shoplifting apprehensions compared to $68,927,833 in 2003. In 2004 the average dollar value for a shoplifting apprehension was $101.60 dollars.
[edit] Legal status in different countries
[edit] Canada
There is no specific offence of "shoplifting" under Canadian law. Instead, shoplifting is covered under the general provisions of the Criminal Code of Canada that deal with theft. According to section 322 of the Code theft is defined as taking or converting anything fraudulently and without colour of right, with the intent to deprive the owner of it, either permanently or temporarily. For punishment purposes, section 334 of the Code then categorizes theft according to the value and nature of the goods that are stolen. If the goods are worth less than $5000 the maximum possible punishment is 2 years imprisonment and/or $2000.00 in fines, while if the stolen goods are worth $5000 or more, or are a testamentary instrument, the crime may be punished by imprisonment for up to 10 years.
[edit] United States
In most states in the United States, shoplifting is a misdemeanor crime of petty larceny when specifically committed against a retail establishment by a patron. Some states do not distinguish between shoplifting and other forms of petty larceny, although a judge may consider the context of any crime in sentencing.
In some jurisdictions within the United States, certain egregious instances of shoplifting involving large dollar amounts of merchandise and/or a high degree of criminal sophistication may be prosecuted and punished as burglary or otherwise as a felony. The dollar amount to constitute felony shoplifting can range from be quite low such as $100 in Vermont, to quite high such as $2,500 in Wisconsin. In some states a high dollar amount can constitute a higher felony, a prime example being Arizona where a shoplifting incident greater than $2,000 constitutes a class five felony. Indiana is the only state in the country where an act of shoplifting is considered a felony regardless of dollar value.
Shoplifting can lead to far more serious charges than normally would be assumed. In most states an employee who shoplifts from their employer can be charged with shoplifting and embezzlement. In Arizona a shoplifter who is caught attempting to steal without any means of payment is guilty of third degree burglary. In Illinois a shoplifter who resists detainment is guilty of aggravated battery. In some U.S. jurisdictions, a repeat misdemeanor shoplifting offender can be charged with a felony for recidivism.
Exactly when the crime of shoplifting has been committed varies from state to state. Most commonly, statutes dictate that a person must leave a retail store with intent not to purchase an item before they can be detained. Some states such as Arizona have more strict shoplifting statutes. According to Arizona law 13-1805 subsection B "Any person who knowingly conceals upon himself or another person unpurchased merchandise of a mercantile establishment while within the mercantile establishment shall be presumed to have the necessary culpable mental state pursuant to subsection A of this section."
Some recidivist shoplifters in the United States have been given long sentences under three-strikes laws, such as Leandro Andrade, who received a sentence of 50 years to life; such sentences have been affirmed as neither cruel nor unusual punishment by the U.S. Supreme Court. See also Fixing Broken Windows for an explanation of the theory underlying such laws.
[edit] United Kingdom
There is no specific offence of shoplifting in the UK and offenders are usually charged with the offence of theft but are liable to be made subject to orders for restitution and compensation by the criminal courts.
Increasingly, retail companies are using the civil courts as a means of recovering compensation and obtaining exclusion orders where appropriate. In addition, companies are issuing exclusion letters to offenders and those they suspect, as a means of attempting to encourage the police to charge those arrested for theft with burglary on the basis that they are trespassers. This remains a controversial issue and, generally, the police are reluctant to charge with the more serious offence.
[edit] Common Shoplifting Scams
[edit] "Accidental" Stealing
"Accidental" Stealing is when a thief takes their place in the queue with the items they intend to steal, and pay for only one of those items while holding what they want to steal in full view to cause confusion (or place said items into their pockets) but avoid suspicion due to their apparent intention of payment. In the unlikely event of being caught, the thief could simply pass off the attempt at stealing as accidental. Also referred to as "left handing," a reference to the stolen item being held in the left hand while payment is made with the right.
[edit] Baby Stroller Boxes
This scam involves the use of baby stroller boxes, which tend to be quite large in size. A would-be shoplifter removes the stroller from the box and proceeds to conceal a large amount of merchandise inside. The would-be shoplifter then reseals the box and takes it to a checkout aisle, where they pay the purchase price for the stroller. If the scam is successful the would-be shoplifter walks out of the retailer with concealed merchandise still inside the stroller box.
[edit] Bag Switching
Bag switching methods are generally attempted by a group of two shoplifters. Typically the first shoplifter will have a large bag and gather a large amount of merchandise quickly to get the attention of a Loss Prevention Investigator. Once the first shoplifter knows that they are being followed they will conceal the merchandise into the bag. The first shoplifter will then switch their bag with the second shoplifter, who usually has a matching bag that is already filled with items that don’t belong to the retailer. Often the Loss Prevention Investigator will miss the switch and arrest the first shoplifter. Subsequently, the first shoplifter may claim false arrest and receive a gift card from the retailer.
[edit] Booster Boxes (bag)
A booster box is a device that allows a would be shoplifter to conceal a large quantity of merchandise on their person. These boxes are lined with metal or some other substance to prevent security tags from setting off the security gates at the exit. Typically professional shoplifters of large girth most commonly attempt this scam. The use of booster boxes is most prevalent at clothing retailers due to the fact that clothing merchandise can easily be molded to fit better inside the box. Some professional shoplifters have been known in the past to attempt to use booster boxes to conceal electronics and DVDs.
[edit] Cash Drawer Theft
Cash drawer theft is usually attempted by a shoplifter purchasing a low dollar item and giving the cashier a large bill or by asking a cashier to change a large bill. As the cashier is counting change the item the shoplifter will attempt to create a distraction. One such is telling the cashier that the cashier is giving the shoplifter the wrong amount of change. Once the cashier looks down to recount the change the shoplifter will reach into the cash drawer and grab what they can. The cashier then hands the shoplifter back the change and shoplifter leaves the store. Usually cash drawer theft is not detected until audits of the register are completed and show a shortage. To combat cash drawer theft many retailers will not accept bills larger than twenty dollars or will not give out change at the register.
[edit] Counterfeit Bill Passing
Although the act of counterfeiting currency is a far more serious crime than the act of shoplifting, counterfeiters often use retail outlets to launder their fake bills and in effect are stealing merchandise at the same time. Typically, a counterfeiter will use a large denomination bill, like a fifty or a hundred, to purchase a low priced item. If the currency is accepted, the counterfeiter successfully launders the fake bill and leaves with the merchandise and legal currency as change. Most retailers require their cashiers to verify large bills with a counterfeit detection pen. However, due to poor training or when faced with long lines of customers this procedure is often disregarded.
[edit] Double Cart
Two shoplifters are usually involved with this scam. They fill two carts with goods and approach the checkout. They load the checkout with the high value goods first. The cashier scans the items and removes the security tags. One of the shoplifters bags the items and places them back into the now empty first trolley. As the second trolley is being scanned the first shoplifter leaves with the first trolley while the second shoplifter stays at the checkout. The remaining goods are scanned and the cashier awaits payment. The second shoplifter puts on an act of a forgotten wallet. This gives the first shoplifter time to load the goods into a vehicle. The second shoplifter then makes an excuse to go and get her wallet, and leaves the remaining goods at the checkout. She then leaves the store and they escape with the high value goods.
[edit] Fake Returns
Sometimes shoplifters will actually gather an item from the selling floor and try to receive money for it without a receipt at the return station. Although this method is not as fool proof as the receipt matching method, it is very effective particularly when done to an inexperienced cashier. Usually the shoplifter will start complaining to the cashier about their inability to return the merchandise. Typically the shoplifter will state that they lost their receipt or threaten the cashier by stating that they want to talk to their supervisor. To avoid confrontation the cashier will ring up the return and give the shoplifter the value of the merchandise. (See refund theft.)
[edit] Fitting Room Bagging
Typically this scam is seen in large clothing retailers. This scam generally preys upon the common Loss Prevention policy prohibiting apprehension of shoplifters when concealment is not actually seen by an investigator. A would be shoplifter enters a retail establishment with a large bag. The would-be shoplifter then selects a large amount of merchandise and takes it to a fitting room. Once inside, the would-be shoplifter conceals the merchandise into the bag out of sight of store employees and store investigators.
[edit] Gift Card Cloning
In this scam, a normal store gift card with no value attached is stolen from a store. The shoplifter then clones the magnetic strip on the back of the gift card and makes a copy or copies of it. The original gift card is then returned to the store by the shoplifter. The gift card is activated once purchased by another customer, and the dollar amount applied to the legitimate gift card is passed to all the cloned gift cards.
[edit] Grab and Run
A common shoplifting techinique is known by the Loss Prevention community as a "grab and run." Simply put, a shoplifter enters a retail establishment usually with prior knowledge of what they are looking for. The shoplifter moves very quickly toward the merchandise he or she wishes to steal. Once the shoplifter has found the merchandise, he or she proceeds toward the nearest store exit, usually while running. Due to the short amount of time that the shoplifter is inside the store, persons who attempt this scam are seldom caught or, in some cases, even detected.
Less common is for a group of people to rush into a store, grab as much merchandise as possible, and then rush out. The speed at which this happens as well as the large number of people involved make this approach difficult to stop.
[edit] The Milkshake Subterfuge
A less common shoplifting technique used for smaller high-dollar items is the milkshake subterfuge. A milkshake is purchased by the shoplifter and taken into the store. The shoplifter proceeds to drop small heavy items like jewelry into the milkshake. On leaving the store their milkshake is unlikely to be searched. Shoplifters using this method must be wary of drinking too much of their milkshake or the items will be revealed in the bottom of their cup.
[edit] Metal-lined Clothing or Containers
Metal-lined sacks, containers, or clothing (such as aluminum foil-lined undergarments) allow a would-be shoplifter to shield the RFID tags attached to merchandise concealed on their person from the scanners at the door of a store (see Faraday cage). 2001 Colorado House Bill 01-1221 made it a misdemeanor to possess, use, or know about and fail to report others who possess RFID shielding devices with intent to foil anti-shoplifting devices.
[edit] Other Return Tricks
Sometimes would-be shoplifters attempt to return packages to a retailer that contain no merchandise, a used item, or in some cases things like bricks. This scam is aimed at inexperienced or naive cashiers, in hopes that they will not check the package during the return. When successful, the fake return is usually not discovered for several hours.
[edit] Out the Wrong Door
This method requires a common outside door with two diverging doors from the vestibule: one for an entrance (which is not usually supervised) and one for an exit. Two people enter the store. One person retrieves merchandise from the selling floor. When this person is ready to leave the store, he waits at the entrance door. The other person walks around to the exit, walks into the vestibule and activates the entrance door on the way out, and the person with the merchandise also leaves. Sometimes the second person will just distract the cashiers while the person with the merchandise waits for some unknowing customer to enter the store and activate the entrance door.
[edit] Rope and Fenceline
In large retail stores such as Home Depots and Walmarts that have Garden areas where there is no ceiling, two shoplifters will attempt to steal merchandise. One shoplifter will wait outside, while the shoplifter inside will take a cart full of merchandise (such as drills or sawblades) to the garden center. The shoplifter inside will then tie the merchandise to the rope, and throw the rope over the fenceline, and the customer waiting on the other side will untie it and take it.
[edit] Receipt Matching
The receipt matching scam involves using receipts to match merchandise codes from the receipt to items found in a store. Most retailers use company specific merchandise codes on their merchandise so store personnel can identify the location more quickly and efficiently. Additionally the merchandise is used to verify merchandise that was purchased at a particular retailer during a return. This information is printed onto the receipts of purchased merchandise.
Typically shoplifters will search either retailer’s parking lot or trashcans looking for receipts that have a high dollar item on it. The shoplifter then enters the store and compares the code on the receipt to the codes printed on the merchandise in the store. Once the shoplifter finds a match they will take the merchandise to the return area and receive money for. Typically, to avoid detection, shoplifters will use a piece of paper with the merchandise code they are looking for written on it.
[edit] Self-checkout scam
At some larger retailers, such as Wal-Mart, customers have the option of using self-checkout lanes, in which customers do not interact with employees at all when making purchases but check themselves out at a computer. Customers are expected to scan the items that they wish to purchase, insert payment for the scanned items, then bag the items and leave the store. Shoplifters have been known to purchase small items with these machines, and place additional items in their bags without paying for them. Many shoplifters intentionally act slightly confused when using these machines, and act as if they are attempting to scan the item which they wish to steal, so that, if confronted, they can claim that they took the additional items by mistake.
- NOTE: The majority of these self check out machines have scales under the shopping bags (where you place the item after scanning). The scale checks that the amount of items in the bag weighs the same that is scanned. If the weight is off, generally, the supervising attendant will be signaled to come to the station for assistance.
[edit] Shopping Cart Magic
Shopping cart tricks are often disregarded by Loss Prevention personnel. Typically, older or professional shoplifters usually attempt this scam. The scam works in the following way: when the shoplifter first enters the store, they locate an empty shopping cart. The shoplifter finds the item they are looking for and typically place on the bottom or under the baby seat. The shoplifter then continues to gather a small dollar amount of merchandise and places it in the shopping cart. The shoplifter then brings the shopping cart to register and removes all the merchandise with the exception of the item they wish to steal. If the cashier is not paying attention the shoplifter will usually be able to get the merchandise past them without much effort. After paying for the smaller dollar items the shoplifter leaves the store and successfully pulls off the scam. The most prevalent method used to combat this scam is the use of door personnel who are trained to ask for receipts for high dollar and un-bagged merchandise.
[edit] Shopping Cart Passing
Shopping cart passing is usually attempted by a two-person group of shoplifters. The first shoplifter will gather the desired merchandise into a shopping cart and take it to the register. The cashier will then ring up all the merchandise and place it in bags. Once the total is rung up, the first shoplifter states that they forgot their wallet in their car. The first shoplifter will then exit the store and most cashiers will put the shopping cart off to the side and resume ringing up customers. At this point, the second shoplifter moves in and grabs the cart and walks out of the store with the stolen merchandise in bags.
[edit] Ticket Switching
Ticket switching is among the oldest shoplifting scams that retailers have faced. Typically, the shoplifter finds an item on clearance and removes the clearance tag. The shoplifter then finds a high dollar item and applies the clearance tag to it. The shoplifter then brings the high dollar item to an unsuspecting cashier and pays for it at a clearance price. Most retailers today now utilize electronic barcodes that when scanned will ring up the correct price. Usually, when the shoplifter challenges the price a cashier supervisor will refuse to ring up the item at the clearance price. Some more clever shoplifters are now utilizing modern printing and digital technology to copy low dollar barcodes for retail merchandise packages. These shoplifters then print bar code labels that will actually ring up at cashier registers. People have also been known to switch expensive merchandises barcodes with inexpensive merchandise barcodes.
[edit] Walk Out Technique
The walk out technique is the process of browsing the store and upon completion you walk out of the store, like you normally would, with item(s) in hand. This technique seems that it would be an impractical idea but generally is very effective due to the fact that people generally do not watch the "casual shopper" and pay attention to people who do more advanced and suspicious techniques. To other shoppers it seems like you are walking out with an item you bought but didn't bother to bag, or it was an article of clothing you walked in wearing but removed while shopping (ex. jacket).
This tactic is usually limited to small amounts of clothing, 4 being the practical highest amount. And is generally only done in large department stores like Macy's or Sears that have multiple entrances.
[edit] Power fail
In the event of a power failure where all lighting and and CCTV goes out, the shoplifter quickly grabs as much as possible and calmly leaves the establishment before power is restored.
[edit] Staff impersonation
A shoplifter acquires the staff uniform of the supermarket he wishes to shoplift from and enters the store with a shopping trolley. They then load there shopping onto the trolley and walk out the store. If questioned they say they are wheeling the shopping into the car park for a disabled customer.
[edit] Open up the item
This is a very simple form of shoplifting that has been used for years. The shoplifter gets a small valuable item, quickly puts it in a pocket, so that CCTV cameras and store staff don't notice. Then the shoplifter goes to the public toilet, opens up the item, and flushes wrapping down the toilet. The shoplifter is sure to unwrap the item so that alarms will not go off when he or she leaves. After finishing this, the shoplifter simply walks out with it in a pocket.
[edit] Anti-shoplifting options
[edit] Closed Circuit Television
CCTV monitoring is an important anti shoplifting method. Retailers focused on loss prevention often devote most of their resources to this technology.
[edit] Electronic Article Surveillance
Electronic article surveillance is second only to CCTV in popularity amongst retailers looking for inventory protection. EAS refers to the security tags that attach to a garment and cause an alarm to sound when removed from the store.
[edit] Famous cases
Probably the most famous legal case involving shoplifting occurred in 2001 when actress Winona Ryder was arrested for shoplifting at Saks Fifth Avenue department store in Beverly Hills, California. Ryder was eventually convicted of misdemeanor theft and vandalism. [1] In 2003, Will & Grace actress Shelley Morrison (who played Rosario Salazar) was arrested for shoplifting at a Robinsons-May store in California; the charges were later dropped. In early 2006, former White House aide Claude Allen was arrested for an alleged return scam at a Target store in Gaithersburg, Maryland.
[edit] Atypical Theft Offenders
Another category of shoplifters (who are almost invariably - and erroneously - labelled as suffering from kleptomania) are persons who clinical investigator Dr. Will Cupchik has labelled 'Atypical Theft Offenders'. These usually honest persons may steal in response to personally meaningful losses and/or other stressors. His book, Why Honest People Shoplift or Commit Other Acts of Theft (2002) provides data and conclusions of two studies conducted by Dr. Cupchik, as well as assessment and treatment methods. The major reasons that these persons should not be labelled as kleptomaniacs has to do with the fact that there are virtually always external triggering events that can be identified as just preceding the theft activity, and the fact that the stealing is virtually always an act of vengeance carried out in anger (althrough seldom recognized as such by the offender). The existence of an external trigger and the feelings of anger and desire for vengeance are factors that, according to the American Psychiatric Association's Diagnostic and Statistical Manual, would exclude the diagnosis of 'kleptomania'.
[edit] References
- Abbie Hoffman (2002). Steal This Book. Four Walls Eight Windows. ISBN 1-56858-217-X.
[edit] See also
- Refund theft
- Kleptomania
- Loss prevention
- Evasion - an autobiography detailing one anarchist's shoplifting- and dumpster diving-supported travels
[edit] External links
- Shoplifting Prevention
- Shoplifting
- On political shoplifting
- Shoplifting Bibliography
- To catch a thief - The Guardian - A November 2005 article about Terrence Shulman, a "shoplifting addict" turned public speaker on the issue. Includes statistics on shoplifting in the United States.
- [2] Web site managed by psychologist Dr. Will Cupchik, the most senior researcher/clinician in the area of 'Atypical Theft Offenders', i.e., usually honest persons who may occasionally steal in response to external triggering events and circumstances.
