Hawkeye Reporter

Organized retail crime is causing significant financial losses for both businesses and consumers in the United States. Criminal groups are targeting retail stores and cargo fleets through sophisticated schemes, including cybercrime and fraud. These activities have led to average losses of over $200,000 per cargo theft incident, with total supply chain losses reaching up to $35 billion each year. The impact is felt by consumers through higher prices and increased insurance costs.

According to the National Retail Federation, more than 73 percent of retailers have reported an increase in violence and aggression from shoplifters compared to the previous year. These crimes involve stealing large quantities of merchandise from various points along the supply chain, which are then resold through illegal channels.

Senator Chuck Grassley, chairman of the Senate Judiciary Committee, recently held a congressional hearing on this issue. "As chairman of the Senate Judiciary Committee, I held a congressional hearing in July to hear from retailers, shippers and others impacted along the supply chain by these crimes. An executive with the American Trucking Association called for a coordinated federal response to address this dangerous and costly criminal activity and backed my bipartisan bill, the Combatting Retail Crime Act, to establish a multi-agency response, giving law enforcement new tools to respond to the surge in cargo theft across the country."

Grassley also referenced recent actions by federal authorities: "At the hearing I brought up recent efforts by the U.S. Department of Justice that indicted 11 defendants, including nine illegal immigrants, with stealing nearly a half-million dollars of Nike shoes from rail cars. Even more serious is when criminals steal from the food supply chain, like from a pallet of groceries or infant formula, since they break the safety seal of the shipping container and ruin the entire cargo container of goods." He mentioned another investigation connecting thefts at a mall in Katy, Texas to a cartel believed responsible for over $100 million in theft nationwide.

The Department of Homeland Security has identified links between organized retail crime and other criminal activities such as terrorism and human trafficking. Grassley stated: "The Department of Homeland Security has found that cartels, terrorists and human traffickers facilitate organized retail and supply chain crime and use the proceeds to finance other crimes. It’s a criminal hamster wheel that spans the globe and demands an informed and beefed up response from the nation’s counterterrorism and intelligence agencies."

Efforts are being made at both state and federal levels to improve prosecution strategies against repeat offenders. At a recent Senate hearing, Grassley discussed with San Diego County's District Attorney why aggregating stolen goods' value helps distinguish between minor offenses driven by necessity versus planned criminal acts intended to avoid felony charges under certain monetary thresholds.

Homeland Security Investigations estimate that organized retail crime results in more than $500 in additional annual costs for each American family due to its effect on prices throughout consumer markets.

Grassley continues his legislative efforts: "A few years ago, I convened a roundtable in Cedar Rapids to hear concerns and learn from local retail leaders and law enforcement about the rise in organized retail crimes. Since then, I’ve pushed for a coordinated response at the federal level...I’ll continue pushing in Congress for criminal action to be met with criminal punishment."