I-TEAM

I-TEAM: E-Fencing And Organized Retail Crime

(WCCO) Everyday, thieves shoplift from retail stores. At Target, it's the large variety of merchandise paints the stores with a real bullseye for thieves.

For electronics, shoplifters focus on trying to rip-off stores like Best Buy. For tools and equipment, they hit stores like Home Depot.

However, this shoplifting isn't just Little Johnny swiping a little item. These are highly organized criminal operations, or booster rings, that send out teams of career criminals.

"They'll literally swarm into a town like locusts and hit just about every retailer out there going for high value items," said Nate Garvis, Target's Vice President of Government Affairs.

The value of items is being stolen from stores staggering compared to what might be stolen from someone's home.

Last year, burglaries around the country racked up about $4 billion in lost property and auto thefts equaled about $8 billion in losses.

Combining those numbers and the amount is not even close to losses from stores. The National Retail Federation said organized retail crime accounts for $30 billion in stolen merchandise.

So where do all of the things go?

Sgt. Tina Kill of the St. Paul Police Department said anyone can log onto the Internet to get the answer. She said stolen items can be found on Internet auction sites like eBay.

"It's going more to these Internet crimes where there's absolute anonymity. You never know who you are talking to," said Kill.

Retailers said 70 percent of their stolen goods end up at online auction sites, and eBay is the biggest player.

The goods can run the gamut from iPods to medications to baby formula. Fencing is a police term which means to dispose of stolen goods.

With their speed, efficiency and anonymity, online auction sites are a fencers dream.

"Certainly there's lots and lots of legitimate things on eBay but there also a fair amount of things that have been stolen and that's not said lightly, it's proven through investigations that Target has been a part of and others have been a part of," said Rick Lautenbach, manager of the Target Forensic Lab.

Target even built its own forensic lab years ago to prevent retail crime, knowing the police are focused on murders and other criminal activity that's more serious than shoplifting.

Casey Kespohl, a WCCO employee, got a good deal on some Nike Air Jordon shoes from an eBay power seller. They came new in a box.

Kespohl doesn't know if they were stolen but like most online auction shoppers, hearing about e-fencing was a revelation.

"It was a bit of an eye opener for me," Kespohl said, to learn about the even the possibility that the shoes could have been stolen. "To find out, wow, there's organized crime that is basically then using this as a facilitator of that to sell products was sort of alarming."

He'd now be more inclined to shop from someone who could prove they are a credible seller.

That's the type of awareness Target is trying raise. Garvis said people should think about who's getting the money from stolen property, not the fact buyers may have saved a buck.

"It isn't just that your getting a deal, you're getting a deal on money that's going to bad guys that are doing bad things in your neighborhood," said Garvis.

EBay said it takes the sale of stolen items very seriously. It strongly encourages sellers to list vehicle identification numbers on cars sold on eBay motors.

However, when it comes to serial or lot numbers for most other items, there is no rule or recommendation. EBay said sellers have a blank canvas to describe as much or little as they want about an item and anyone can then bid and buy from whoever provides the most information.

However, the problems aren't just on eBay.

Someone stole Ken Hayden's lawnmower from his St. Paul garage this summer. The next day, Hayden found someone listing his $700 mower for sale on Craig'slist for $300. He arranged a meeting with the seller, and brought the police with him.

When asked about Web sites that sell property, Hayden said "I think it gives the criminals an easy way to pawn off their goods. They really don't have to go out to a pawn shop where they're more regulated they have to track the serial numbers and things like that."

It seems even in a high tech world, some very old sayings still apply: If it seems too good to be true, it probably is.

 

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