Monday, December 28, 2009


Retailing business, as it is organized to day world over, is based on a trust between the consumer and the retailer and pilferage is not expected on a large scale. The viability of the business depends heavily on limiting the losses due to pilferage from the shelves by a few unscrupulous customers. But honesty seems to be at a premium if the reports about losses incurred by the organized sector of retailing due to dishonest customers are to be believed.

"This isn't little Johnny going into a grocery store and stealing a pack of bubble gum or Aunt Betty selling a vacuum cleaner on an on-line auction site," he said. Rather the sophisticated practice costs retailers billions. Rep. Brad Ellsworth (D-IN) told the teleconference that the FBI estimates ORC will result in $30 billion in retail losses annually. "While businesses across the country are struggling, business is booming for the criminals," he said. Often these criminal gangs conduct counter surveillance, noting security sweeps and camera technology, before they hit a retailer. Once inside the store, the gangs use cellphones and hand signals to steal thousands of dollars worth of goods in minutes, LaRocca said"

Introduction of RFI tags was supposed to ensure fool proof security for products from being taken out side the premises without proper billing but the pilferage technology seems to be one step ahead of the industry! Probably stringent punishment to such criminals may only act as a deterrent in the long run and national legislative measures are being expected in many countries affected by such large scale retail level criminal activities.


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