
Business leaders urge Congress to help combat organized retail theft
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Diverging Reports Breakdown
Support Grows for Grassley’s Combating Organized Retail Crime Act
The Combating Organized Retail Crime Act has 26 bipartisan Senate cosponsors and is endorsed by 38 state attorneys general. The legislation has garnered significant support from advocacy groups, including the world’s largest retail trade association, major law enforcement organizations and a coalition of over 260 impacted businesses. The bill would establish a multi-agency response to organized retail crime, enhancing coordination between retail industry representatives and law enforcement. It would also strengthen reporting efforts, create new tools to assist in the investigation and prosecution of retail and supply chain crime, and support efforts to recapture stolen goods and their proceeds. Watch experts, industry leaders and local, state and federal organizations and businesses offer statements of support for the bill. The Senate Judiciary Committee held a hearing on the bill on Tuesday. The House of Representatives is expected to hold a similar hearing in the coming weeks. the bill is sponsored by Sen. Chuck Grassley (R-Iowa) and Sen. Catherine Cortez Masto (D-Nev). The bill has been referred to the Senate Committee on Judiciary.
Grassley and Sen. Catherine Cortez Masto (D-Nev) introduced the bill to establish a multi-agency response to organized retail crime, enhancing coordination between retail industry representatives and law enforcement. The legislation would also strengthen reporting efforts, create new tools to assist in the investigation and prosecution of retail and supply chain crime, and support efforts to recapture stolen goods and their proceeds.
The Combating Organized Retail Crime Act currently has 26 bipartisan Senate cosponsors and is endorsed by 38 state attorneys general. Additionally, the legislation has garnered significant support from advocacy groups, including the world’s largest retail trade association, major law enforcement organizations and a coalition of over 260 impacted businesses. Reps. David Joyce (R-Ohio) and Susie Lee (D-Nev.) are leading companion legislation in the House of Representatives.
Watch experts and industry leaders discuss the Judiciary Committee’s hearing and the Combating Organized Retail Crime Act below, followed by statements of support from local, state and federal organizations and businesses.
VIDEO
The National Retail Federation and a coalition of over 260 impacted businesses:
“We respectfully urge Congress to advance and pass the Combating Organized Retail Crime Act of 2025 without delay. This bipartisan, commonsense legislation is essential to modernizing our national response to organized retail crime, which threatens not only public safety but also the health and security of America’s supply chains and consumer access to goods. By strengthening coordination, enforcement and prevention, CORCA will help protect American businesses, workers and families. The time to act is now.”
The National Association of Attorneys General:
“As Attorneys General of Connecticut, Georgia, Illinois and South Carolina, we are joined by the 34 Attorneys General of the undersigned states to encourage action during the 119th Congress to support our efforts to combat the nationwide organized retail crime epidemic… CORCA would provide the necessary resources at the state and federal level to bring the organizations and individuals behind this nationwide problem to justice.”
The National Police Association:
“The [National Police Association] extends its gratitude to Sen. Grassley and Rep. Joyce for introducing the Combating Organized Retail Crime Act, a federal bill that would allow the private sector and law enforcement partners at all levels to work in tandem to fight these crime syndicates. The government’s priority is to provide for the safety and welfare of its citizens, and this bill goes a long way in accomplishing this.”
The American Trucking Association:
“The trucking industry takes great pride in delivering America’s freight safely and on time; however, the billions of tons of goods transported by trucks from coast to coast have increasingly become a prime target for organized crime rings, including transnational organizations, putting truck drivers at risk and raising costs for consumer. ATA commends this bipartisan group of leaders for addressing this alarming trend and safeguarding our supply chain. By empowering federal agencies to improve cooperation across jurisdictions and ramp up enforcement actions, this bill would strike an effective blow against organized crime.”
Brenda Neville, President and CEO of the Iowa Motor Truck Association:
“We commend the Senate Judiciary Committee for shining a spotlight on the growing problem of cargo theft. Chairman Grassley’s legislation is vitally important for Iowa’s trucking industry and the more than 100,000 Iowans who work to keep freight moving safely and efficiently. Cargo theft not only threatens the security of Iowa’s freight—it puts these hardworking men and women at serious risk. We are thankful to Chairman Grassley and the entire committee for their efforts to protect the people and the industry that are vital to Iowa’s economy.”
Matt Hart, Executive Director of the Illinois Trucking Association:
“Cargo theft is an epidemic affecting the entire supply chain, and Illinois is at the epicenter of the problem. Our state is among the top three nationally in cargo theft occurrences, and it is critical that Congress pass common-sense legislation that deters these criminal actors and gives law enforcement the tools it needs to combat these sophisticated crimes. On behalf of the nearly 340,000 Illinoisans who work throughout the trucking industry, we call on Senator Durbin to support the Combating Organized Retail Crime Act.”
Eric Sauer, CEO of the California Trucking Association:
“Cargo theft is an issue impacting the entire supply nation across the country, but nowhere is it more acute than in California. Without this much-needed legislation, sophisticated criminal organizations will continue to operate with impunity at a great cost to consumers, highway safety, and the hardworking men and women throughout our industry. Senator Padilla’s support of the Combatting Organized Retail Crime Act means law enforcement has the tools it needs to prosecute these criminal actors.”
The Association of American Railroads:
“Organized criminal operations continue to evolve and escalate their targeted attacks against our nation’s supply chain and retailers. This alarming trend affects every industry – including the nation’s largest railroads, which experienced a 40 percent spike in cargo theft last year. Disrupting these organized crime networks requires a unified, federally-led response. Chairman Grassley and Rep. Joyce’s bipartisan legislation provides the strategic framework necessary to disrupt these criminal networks and safeguard our supply chain.”
The Retail Industry Leaders Association:
“Organized criminal enterprises are endangering communities across the country through brazen and violent criminal acts that put retail employees and customers in harm’s way. Whether stealing mass quantities of products from retail stores or hijacking consumer goods throughout the supply chain, these gangs are wreaking havoc. And these criminal rings use the profits from retail theft to support larger illicit activities such as human trafficking, gun smuggling, narcotics, and terrorism. In order to expose and prosecute these sophisticated criminal rings, we need federal, state and local law enforcement to be coordinated, which is exactly what CORCA will do.”
The International Council of Shopping Centers:
“Across the United States, communities small and large are facing an unprecedented number of [organized retail crime] incidents. The Combating Organized Retail Crime Act would provide the necessary resources to bring the people and organizations behind this nationwide problem to justice by establishing formal coordination between law enforcement and the private sector. We applaud Senators Grassley and Cortez Masto, and Representatives Joyce, Lee and Titus, for reintroducing the Combating Organized Retail Crime Act. We believe the bill represents a huge step in the right direction towards addressing this growing issue.”
The Intermodal Association of North America:
“The Combating Organized Retail Crime Act offers commonsense solutions to identify and deter organized crime throughout the supply chain by enhancing legal frameworks, improving enforcement capabilities, and fostering collaboration across relevant federal, state and local agencies. The legislation will strengthen the U.S. economy by enhancing supply chain efficiency, penalizing dangerous crime groups and protecting American workers and consumers.”
The National Insurance Crime Bureau:
“On behalf of the National Insurance Crime Bureau (NICB), I write to express our strong support of S. 1404, the Combating Organized Retail Crime Act of 2025. As a leader in the fight against insurance fraud and crime, NICB urges the Committee to take up and advance this bipartisan measure, which will deter retail and cargo theft that harms American consumers and job creators; finances organized, transnational criminal networks; and increases costs for all.”
The Home Depot:
“The Home Depot strongly supports CORCA, and we are pleased to see that the Senate bill has over 20 bipartisan cosponsors. The bill would create the Organized Retail Crime Coordination Center, bringing together federal, state and local law enforcement and private sector experts to share information and collaborate on strategies to keep our stores, customers, and associates safe and secure. The bill would allow us to expand upon the progress made at the local and state levels and address cases that reach certain thresholds or cross state lines.”
Ulta Beauty, Inc.:
“We support CORCA’s goal to establish a coordinated federal approach to fighting these crimes. By enabling real-time data sharing and cross-jurisdictional collaboration between federal, state and local authorities, CORCA would empower law enforcement to pursue and prosecute [organized retail crime] offenders more effectively, deterring future activity and protecting retail workers and consumers. We believe this bill represents a meaningful and necessary step toward a safer, more secure retail environment, and we respectfully urge Congress to advance its passage.”
Donna Lemm, Chief Strategy Officer, IMC Logistics:
“It is imperative that action is taken at the federal, state, and local levels to confront and neutralize this growing threat. The trucking industry and our supply chain partners need more cooperation and interagency information-sharing, as well as a more robust investigative and prosecutorial posture, to tackle these challenges head-on. For those reasons, we are proud to support and endorse the Combating Organized Retail Crime Act, a bill that will provide the tools and resources necessary to facilitate that unified response.”
Scott McBride, Chief Global Asset Protection Officer, American Eagle Outfitters, Inc.:
“As a professional dedicated to protecting customers and associates, I implore all members of the Congress to work together to ensure that the Combatting Organized Retail Crime Act urgently becomes the law of the land. This critical legislation will help us stop these senseless crimes in our communities.”
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Business leaders urge Congress to help combat organized retail theft
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what’s in the article. Retailers in North Carolina lost $1.8 billion in revenue to theft in 2022. Organized retail crime amounts to much more than simple shoplifting. It represents a sophisticated criminal enterprise perpetrating massive thefts and crossing jurisdictional lines to avoid prosecution. The average American family pays more than $500 annually in additional costs due to the impact of organized retail theft. The problem has grown so large with repeatedly victimized retail stores, it has disrupted supply chains. The loss to stores of $2.6 million amounts to a loss of $6 million to the workforce over the past two-year period (2023 and 2024) The toll on the workforce takes a toll on a workforce of over 2.5 million people, said the president of the National District Attorneys Association, Summer Stephan. The cost of the loss of the workforce is estimated to be over $6.5 billion.
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what’s in the article. Reporting mistakes helps us improve the experience.
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what’s in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways
As organized retail theft rises, more stores are opting to lock-up merchandise rather than risk it being stolen. Retailers in North Carolina lost $1.8 billion in revenue to theft in 2022. (Photo: Getty Images by Spencer Platt)
If you’ve ever shopped at a big-box store like Walmart or Home Depot, chances are you’ve noticed merchandise locked away behind glass cases or tightly bound by a security tag. A few years ago, retailers used these tools to deter occasional shoplifting. Now it’s estimated that the average American family pays more than $500 annually in additional costs due to the impact of organized retail theft.
Scott McBride, the chief global asset protection officer for American Eagle Outfitters, told the U.S. Senate Judiciary Committee last week that organized retail crime (ORC) amounts to much more than simple shoplifting. It represents a sophisticated criminal enterprise perpetrating massive thefts and crossing jurisdictional lines to avoid prosecution.
Scott McBride, the chief global asset protection officer for American Eagle Outfitters (Photo: U.S. Senate Judiciary Committee video feed)
“While ORC is not new, its veracity, sophistication, and frequency and geographic reach have dramatically increased in the post-COVID era,” McBride explained. “These groups use encrypted message apps to recruit thieves, coordinate the consolidation of stolen goods, liquidate them through illicit online tertiary and black market sites, and even exfiltrate stolen products out of the country.”
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McBride said American Eagle Outfitters, which operates 23 stores across North Carolina, notes the problem has grown so large with repeatedly victimized retail stores, it has disrupted supply chains.
A recent case involving the federal agency Homeland Security Investigations as well as state and local law enforcement, successfully recovered to almost 2,000 pairs of American Eagle jeans along with other retailer merchandise totaling almost $2 million.
“The retail jeans were valued at $100,000. RFID research revealed that those stolen AEO jeans came from 35 stores in 13 states,” McBride testified.
That one case underscores the urgent need for national level involvement, McBride said, to support local and state government, district attorneys, and state’s attorneys general in prosecuting such cases.
Cargo theft on the rise with technology resulting in more creative schemes
Donna Lemm testified on behalf of the American Trucking Associations that the frequency and sophistication of cargo theft incidents have increased exponentially over the past several years.
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A few years ago, cargo theft was barely on her company’s radar.
Donna Lemm, IMC Logistics (Photo: U.S. Senate Judiciary Committee video feed)
“In 2021, we had five cargo thefts reported. In 2024, we had 876 cargo thefts reported.”
Lemm explained how last year fraudsters sent work order information using a spoofed email address that appeared to be from a real customer.
“Our team fulfilled the instructions and completed three loads. We did not learn that the customer’s identity had been stolen until we attempted to send them an invoice. Ultimately, IMC Logistics was on the hook for the value of the lost cargo.”
In another incident, fraudsters outfitted a truck with fake placards and printed counterfeit IDs for the drivers. Lemm said IMC Logistics’ vehicles were equipped with GPS units, but the criminals were savvy enough to disable them within 20 minutes of leaving the lot.
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“The trucking industry is doing everything right, but we are still vulnerable because Organized Theft Groups (OTGs) know that cargo theft schemes that cross state lines and span multiple law enforcement jurisdictions are unlikely to be investigated or prosecuted in a meaningful way,” said Lemm.
Theft takes a toll on the workforce
Summer Stephan, president of the National District Attorneys Association, said over the past two-year period (2023 and 2024), her office in San Diego County, California filed criminal cases involving organized retail theft against 218 defendants with a loss to stores of $2.6 million.
Stephan said the aggregation of theft amounts is critical because it distinguishes between somebody who maybe shoplifting to feed an addiction versus those who are habitual organized criminals.
“We used to have criminals coming in with the calculators to go right under $950, thus leaving them at a citation misdemeanor level,” explained Stephan. “That’s what caused all our products to become locked up.”
Summer Stephan, president of the National District Attorneys Association (Photo: U.S. Senate Judiciary Committee video feed)
Stephan said she’s especially sympathetic to store employees who are anxious about being victimized by the rise in organized retail theft.
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“I went to an Ulta Beauty store where there’s 20-year-olds aspiring to become makeup artists. The way those young clerks looked was very different than the past. They’re looking over their shoulder. They’re waiting for something bad to happen.”
Stephan was talking about employees in California, but the same could be true for workers in North Carolina. In May, four individuals were charged with stealing tens of thousands of dollars’ worth of merchandise at a Ulta Beauty Store in Holly Springs.
Authorities believe that case was part of a larger east coast theft ring, with the merchandise easily resold at a lower price.
Stephan testified that an often-overlooked impact of retail crime is the loss of jobs in the retail industry.
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“When organized crime becomes rampant within a community, store closures and reduced hours usually follow. Each store closure and reduction of hours directly translates to a loss of jobs or hours for all employees at that location,” she explained.
In 2022, the U.S. Chamber of Commerce reported that more than 650,000 jobs were lost nationwide due to organized retail crime.
Stephan along with Lemm and McBride voiced support for the Combatting Organized Retail Crime (CORCA) Act. The legislation sponsored by Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sen. Catherine Cortez Masto (D-Nev.) would empower federal agencies to take a leading role in the coordination of enforcement activities while providing law enforcement agencies with the tools necessary to tackle the increasingly complex crimes targeting interstate and international supply chains.
Sen. Ted Budd (R-N.C.) is among a dozen bipartisan co-sponsors of the bill hoping to see its passage in the 119th Congress.
Sen. Dick Durbin (D-Illinois) (Photo: U.S. Senate Judiciary Committee video feed)
One note of caution
Sen. Dick Durbin (D-Illinois) said while he is not critical of the bill’s intent, he has reservations about the additional authority it would give to the Department of Homeland Security, which has been singularly focused (and in his opinion, overly focused) on deportations under the Trump administration.
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“I don’t doubt for a second that what we’ve had described to us today is part of a much bigger network. But to say we’re worried about whether someone who’s cutting grass on a golf course today is undocumented, and we ought to put the resources of the federal government into putting them in a detention facility and deporting them. I don’t think that’s as high a priority as the subject of this hearing today,” said Durbin.
Senator John Cornyn (R-Texas) said Homeland Security has the capacity to do more with $170 billion in new funding recently allocated for Immigration and Customs Enforcement.
As losses mount, states forced to respond
While apparel and electronics top the list of the most stolen items, food and beverages along with infant formula make the list because they are easy to resell and hard to track.
Lemm, the logistics executive, said these cargo thieves are constantly adjusting their schemes to capitalize on consumer demand. During recent nationwide egg shortages, approximately 100,000 eggs were stolen from a semi-trailer in Pennsylvania. That loss alone was estimated at $40,000.
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North Carolina lawmakers passed a law three years ago to increase penalties for organized retail theft based on the value of stolen merchandise. The legislation also included a provision to expedite the return of any recovered goods to the retailer or corporation. In the case of perishable items like eggs, the food cannot be resold.
Recent research by Capital One revealed that retailers in North Carolina lost $1.8 billion in revenue to theft in 2022. Return fraud cost North Carolina retailers another $2.4 billion.
Left unchecked, the report projects that shoplifting could cost the nation’s retailers over $53 billion in 2027.
Fighting the rising national threat of retail crime
Organized retail crime is a growing national threat impacting retailers, workers, consumers and communities. Retailers face increasingly aggressive and often violent theft orchestrated by coordinated criminal networks. 38 state attorneys general urged swift federal action to address what they described as a national “epidemic” The National Retail Federation is bringing the voice of the retail industry to the Hill to amplify the growing consensus that federal leadership is essential in the fight against organized retail crime. The Combating Organized Retail Crime Act of 2025 (S.1404/H.R.2853) aims to do just that, establishing a federal coordination center within Homeland Security Investigations focusing on organized retail and supply chain theft. The bill has significant momentum. More than 150 bipartisan members of Congress supported it in the 118th session and, in just one month since its introduction in the 119th Congress, 77 members have already signed onto the bill. For American businesses, workers and families, the time for Congress to act now is now.
Organized retail crime is more than a headline — it’s a growing national threat impacting retailers, workers, consumers and communities nationwide. Retailers face increasingly aggressive and often violent theft orchestrated by coordinated criminal networks, not isolated individuals. These groups often operate across state lines and international borders and are frequently tied to broader criminal activity, including drug trafficking and money laundering.
But it’s not just about what happens inside stores. Organized retail crime spreads across the economy — disrupting the supply chain and online marketplaces, and through various financial frauds and schemes impacting consumers.
ORC’s impact on communities
As David Johnston, NRF’s vice president of asset protection and retail operations, shared in recent testimony before a House Transportation and Infrastructure Subcommittee roundtable on cargo theft: “Organized criminal groups are increasingly stealing cargo from railcars and trucks, posing a direct threat to our supply chain, commerce and retail industry.”
These thefts aren’t random — they’re calculated operations. “These sophisticated and often transnational groups exploit weaknesses in security, infrastructure and law enforcement coordination,” Johnston said. “Their targets range from consumer goods and electronics to pharmaceuticals and essential supplies, fueling further criminal activity.”
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Gift card frauds and other schemes have become lucrative opportunities for organized criminal groups. Criminal activity that includes gift card “tampering” and various phone scams have impacted consumers across the nation. Homeland Security Investigations has established “Project Red Hook,” an online awareness campaign to alert consumers and retailers about Chinese organized crime groups conducting these frauds in the United States.
The concern around ORC is echoed by a growing chorus of law enforcement officials across the country. In a February 2025 letter to congressional leadership, 38 state attorneys general urged swift federal action to address what they described as a national “epidemic.”
“Organized retail crime has reached a level never before seen in this country,” the letter stated. “No community is immune from the economic impact and the violence that comes with it.”
The letter emphasizes the impact that many retailers —from household names to Main Street businesses— continue to face sustained losses, rising violence against employees and substantial cost increases to protect products from theft. Consumers see the impact through increased security measures, the removal of products from sales floors or product unavailability due to high frequencies of theft.
Federal legislative action is needed
The attorneys general called for stronger federal coordination, enhanced penalties for supply chain theft, and more resources to support investigations and prosecutions at the state and local level: “Our resources are finite. A new federal coordination center would act as a force multiplier for our offices and help us dismantle these complex, cross-border criminal networks.”
That’s exactly what the newly reintroduced Combating Organized Retail Crime Act of 2025 (S.1404/H.R.2853) aims to do. This bipartisan bill would:
establish a federal coordination center within Homeland Security Investigations focusing on organized retail and supply chain theft;
improve data-sharing and investigative collaboration across jurisdictions and between local, state and federal agencies and private sector organizations; and
expand criminal penalties and tools to prosecute organized theft groups and their evolving methods of criminal activity
It’s a serious solution to a serious and escalating problem — and it has significant momentum. More than 150 bipartisan members of Congress supported it in the 118th session and, in just one month since its introduction in the 119th Congress, 77 members have already signed onto the Combating Organized Retail Crime Act of 2025.
That’s why the National Retail Federation is bringing the voice of the retail industry to the Hill — to amplify the growing consensus that federal leadership is essential in the fight against organized retail crime.
Take action Organized retail crime is on the rise. Join us and tell Congress to act now.
Our message is simple: Organized retail crime is more than a retail issue. It is not a victimless crime. It extends beyond a single community or state. It’s a matter of national safety and economic security, and it threatens the stability of America’s supply chains and consumer access to goods. For American businesses, workers and families, the time for Congress to act is now.
eBay Urges Congress To Fight Brick & Mortar Organized Retail Crime While Ignoring Digital Fraud & Theft
eBay’s head of North America Criminal and Regulatory Investigations, Christian Hardman, has taken to the Fox News opinion section, urging Congress to pass the Combating Organized Retail Crime Act (CORCA) Hardman cites statistics from the National Retail Federation reporting a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019. Hardman says eBay’s PROACT (Partnering with Retailers Offensively Against Crime and Theft) department works diligently with law enforcement to tackle Organized retail crime but that these efforts need additional help from Congress.Hardman conjures up frightening images of smash and grab looting and cites NRF reports on the use of violence in physical brick and mortar retail theft. The bill is heavily influenced by National Retail. Federation and other lobby groups who have their own incentives for framing Organized. Retail Crime in this narrow brick andmortar retail light – and that bias is reflected in the language of. the bill, Hardman writes. The focus on this narrow definition of Organised Retail Crime helps divert attention from the massive amounts of digital fraud, theft, counterfeits and other illegal activity being funneled through the eBay marketplace.
In the opinion piece, Hardman says eBay’s PROACT (Partnering with Retailers Offensively Against Crime and Theft) department works diligently with law enforcement to tackle Organized Retail Crime but that these efforts need additional help from Congress.
Hardman conjures up frightening images of smash and grab looting and cites statistics from the National Retail Federation reporting a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss due to shoplifting over the same time period, offering a carefully crafted message aimed at only one specific type of Organized Retail Crime.
We’ve all seen the videos on our local news of shoplifters brazenly grabbing goods off store shelves, filling up garbage bags and running out of a store. As a result, it has become increasingly common to find locked plastic cases lining the aisles of our favorite stores, making it harder to grab a razor, medicine or even soap.
While waiting for an employee to dispense your razor is just a minor inconvenience – the costs of organized retail theft (ORC) are a much bigger deal. Hundreds of millions of dollars of inventory are lost to theft each year. To combat this growing problem, retailers are spending more on security, technology and insurance – costs that are all passed on to consumers…
…Retailers, law enforcement and online marketplaces, such as eBay where I work, must partner to find and implement a solution that makes organized retail crime a thing of the past….
…Our industry-leading initiative, Partnering with Retailers Offensively Against Crime and Theft (PROACT), facilitates cooperation and partnerships that enable more effective investigations and prosecutions of those suspected of retail crime. In 2023 alone, we helped prevent an estimated $50 million from being stolen at CVS locations in 2023 through PROACT.
This experience has shown us that we cannot solve the problem alone. Successfully stopping organized retail crime requires collaboration between e-commerce companies, retailers, law enforcement and even Congress. Law enforcement and prosecutors need the tools to go after the sophisticated criminal syndicates behind organized retail crime.
Fortunately, Iowa Republican Senator Chuck Grassley and Nevada Democrat Senator Catherine Cortez Masto introduced the Combating Organized Retail Crime Act (CORCA), to address the escalation in theft, fraud and other property crimes against retail stores and elements of the supply chain.
CORCA is heavily influenced by National Retail Federation and other lobby groups who have their own incentives for framing Organized Retail Crime in this narrow brick and mortar retail light – and that bias is reflected in the language of the bill.
For example, SEC. 2. Findings explicitly refers to ORC as a crime involving “groups of individuals specifically targeting retail stores” and cites NRF reports on the use of violence in physical brick and mortar retail theft.
So why does eBay want to keep the focus on this narrow definition of Organized Retail Crime?
Because it helps divert attention from the massive amounts of digital fraud, theft, counterfeits and other illegal activity being funneled through the eBay marketplace while Hardman’s PROACT turns a blind eye.
For example, triangulation fraud has run rampant across the marketplace with eBay’s full knowledge and complacency for over a decade – I know because I personally experienced this fraud perpetrated through eBay in 2020, when it hit my then-employer to the tune of over $160,000 in less than 4 months, using over 150 suspected fake or hijacked eBay accounts.
This sophisticated form of digital shoplifting occurs when a buyer makes a genuine purchase on a third-party marketplace, but the seller fraudulently purchases the product from another legitimate merchant, often using a stolen credit card for that purchase.
Krebs On Security wrote a fantastic article about triangulation fraud in 2015.
Interestingly, the triangle graphic used in this article actually came from an eBay help page at the time – showing eBay has been aware of this fraud for over a decade at this point.
Triangulation fraud. Image: eBay Enterprise.
Dr. Nina Kollars, an Associate Professor in the Cyber and Innovation Policy Institute at the United States Naval War College, also shed light on what triangulation fraud is like from the buyer perspective in her Confessions of a Nespresso Money Mule presentation at DEFCon 2019.
In my experience, after contacting then Florida Attorney General Ashley Moody’s Office with my concerns, the matter was punted back to eBay’s PROACT department, citing a direct complaint process they had with eBay.
Upon receiving the complaint, eBay responded saying they would investigate and take appropriate action – which was enough to get a rubber stamped “case closed” from Moody’s office.
Unfortunately, despite the cute acronym, PROACT was anything but proactive. They stonewalled, pretended to send emails that “must have gone to the spam folder” (they didn’t), and then eventually just stopped responding at all.
I had undertaken an extensive investigation of this fraud in my role for the company and offered everything I had found to PROACT on a silver platter – including a list of ~4,000 tracking numbers for fraudulent purchases that eBay could have easily cross referenced in their systems to identify accounts used for fraud on their platform.
To my absolute and utter astonishment, PROACT declined to accept any of the information I offered, assuring me they had their own proprietary algorithms to flag fraudulent activity on accounts and appropriate action would be taken, which clearly never happened.
Since the company I worked for was one of the top 5 sellers in our category, as a last ditch effort I approached our category manager for help – he candidly admitted to me eBay had been aware of this kind of fraud for years, he was not surprised to hear about losses of $100k+ and he knew of several very large sellers who had quit selling on the platform after being targeted but (according to him) there was nothing eBay could do to stop it.
Since that time, I’ve spoken to over a dozen ecommerce business owners who have been targeted by some variation of this kind of fraud operating on eBay – and every one of them has relayed a similar experience of hitting dead ends when trying to get help from eBay.
It’s difficult to pinpoint the exact costs of triangulation fraud as it’s often lumped in with other types of general credit card fraud, but estimates range from ~$10 Billion to $30 Billion+ a year – which may be under-reported as, in my experience, many merchants may not even be aware of this type of fraud or how to distinguish it from normal chargebacks they may receive for other reasons.
If that number is anywhere close to reality, that puts it far above the “hundreds of millions of dollars in inventory” Hardman says is lost through brick and mortar retail theft every year.
And allowing this fraud to operate unchecked spawns other types of fraud and increased demand for stolen identity information as well.
For example, when eBay transitioned from using PayPal for payment processing to their own internal Managed Payments system eBay was required to issue 1099-Ks directly for the first time, exposing even more fraudulent activity as people who had never bought or sold on the the platform began to receive tax forms for tens of thousands of dollars in sales on fraudulent accounts created using their stolen identity information.
I tracked public and private reports totally over $750,000 across 76 account, many of which showed red flags of engaging in triangulation or other types of fraud.
To be fair, online fraud isn’t just an eBay issue – Amazon, Etsy, Mercari, Poshmark, Facebook Marketplace, Walmart, and others all have similar problems and all take a similar stance, proclaiming to take fraud and illegal activity on their sites very seriously but often failing to proactively protect users and prevent crime in practice.
In fact, a group of Amazon sellers who have been hit by a variation of triangulation fraud have even filed a lawsuit against Walmart, alleging the company profits from and fails to prevent this online organized retail crime perpetrated through their marketplace.
But eBay, Amazon, Walmart and the rest know they don’t have to do anything beyond Minimum Viable Compliance box checking because they are protected by Section 230 of the Communications Decency Act of 1996 – also known as “the 26 words that created the internet.”
Section 230 states:
No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.
Big Tech companies know they can wield Section 230 as a “get out of liability free” card with courts consistently ruling in their favor.
Meanwhile, many consumers and legitimate businesses suffer very real and devastating economic harm as international fraud rings are emboldened and enabled to continue expanding their criminal enterprises across the web.
Aside from the obvious fees and commissions collected on every sale, marketplaces have enormous financial incentives to lobby to keep Section 230 protections in place and oppose state level efforts to hold them accountable for product liability claims.
Just as one example, eBay faced a potential $2 Billion fine in a lawsuit brought by the EPA seeking to hold them accountable for prohibited chemicals and illegal emissions control cheat devices sold on the platform.
The company pursued a Section 230-based defense, arguing eBay is “never itself a seller” and only “a pure 3rd party, peer to peer marketplace” – a position that has been demonstrably false since August 2023, when eBay set up shop on its own platform as its owned-subsidiary TCGPlayer.
But that didn’t stop US District Judge Orelia Merchant from siding with eBay and dismissing the case on Section 230 grounds – and while the Department of Justice had initially indicated they planned to appeal the decision, they have since dropped the appeal, leaving that ruling to stand as precedent which will certainly be used by Walmart and others in future cases.
Importantly, it’s not just the spectre of direct fines or lawsuits that has eBay and others clamoring to hold onto the Section 230 shield at all costs – if that protection went away, it could expose just how much of their publicly reported Gross Merchandise Volume comes from illegal activity, potentially impacting stock prices and leading to shareholder action and/or SEC investigations.
In theory, the INFORM Consumers Act should have helped curb this type of fraud with provisions requiring marketplace to vet and verify “high volume sellers” – but in practice, it hasn’t put a dent in it.
Some legislators and regulatory agencies have recently been considering reworking or sunsetting Section 230 completely, indicating they are open to the idea that these very large tech companies should bear at least some liability for activity on their sites.
The Trump administration could take steps to accelerate action on Section 230 with Federal Communications Commission, Brendan Carr already pushing for reforms, largely aimed at Big Tech battles over social media censorship.
Carr, who wrote the Project 2025 chapter on the FCC, has said, “The FCC should work with Congress on more fundamental Section 230 reforms that go beyond interpreting its current terms. Congress should do so by ensuring that Internet companies no longer have carte blanche to censor protected speech while maintaining their Section 230 protections.”
In the end, Hardman may be right that eBay and others need Congress to “help” in the fight against organized theft and crime – but it may not come in the form that eBay wants if Carr and others have their way with Section 230.
If the government truly wants to protect consumers in this area, they should pass bills and apply regulations forcing marketplaces to take accountability for cleaning up the massive amounts of fraud, counterfeit, stolen and illegal goods flooding their sites – or pay the price in fines and liability lawsuits.
SpaceX Falcon 9 to launch on NASA satellite mission: Will it be visible in Arizona sky?
The next SpaceX rocket launch is scheduled for Tuesday, July 22, from the Vandenberg Space Force Base in Santa Barbara County, California. The rocket will carry twin NASA satellites that will orbit Earth in tandem while studying how the sun’s powerful activity can disrupt our planet’s magnetosphere. Because of Arizona’s proximity to the launch site, there’s a good chance people there can see the spacecraft streak across the sky, especially at night or very early morning. The launch window opens at 11:13 a.m. PT, according to NASA and a launch alert from the California base. SpaceX will provide a webcast of the Starlink launch on its website beginning about 15 minutes before liftoff, along with updates on social media site X. The TRACERS mission (Tandem Reconnection and Cusp Electrodynamics Reconnaissance Satellites) will make use of the company’s famous two-stage 230-foot Falcon 9 rocket, one of the world’s most active.
Instead, aboard the spacecraft will be twin NASA satellites that will orbit Earth in tandem while studying how the sun’s powerful activity can disrupt our planet’s magnetosphere.
But that information may not matter much to those on the ground who just want to see a rocket thundering high overhead after getting off the ground.
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Visibility for those in Arizona may be tough: The next launch from the Vandenberg Space Force Base in Santa Barbara County, California, is scheduled for the daylight hours – making the Falcon 9 much more unlikely to be visible as it soars upward.
What’s more, rocket launches can be – and often are – scrubbed or delayed due to any number of factors, including poor weather conditions or unexpected issues with spacecraft. Check back with azcentral.com for any updates on the rocket launch.
In the meantime, here’s what to know about the launch from Southern California, as well as when and where to potentially spot the rocket in neighboring Arizona:
California rocket launches: SpaceX rocket launches have increased in California, and not all residents are happy
What time is the SpaceX rocket launch from California?
A Federal Aviation Administration operations plan advisory indicates the launch is being targeted for Tuesday, July 22, with backup opportunities available the following day, if needed.
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The launch window opens at 11:13 a.m. PT, according to NASA and a launch alert from the Vandenberg Space Force Base.
Where is the next rocket launch from California?
The launch will take place from Launch Complex 4E at Vandenberg Space Force Base in Santa Barbara County, California. Most launches from Vandenberg fly at a south or southeast trajectory.
What is the next mission launching from Vandenberg?
An artist’s concept of the TRACERS mission, which will help research magnetic reconnection and its effects in Earth’s atmosphere.
SpaceX will serve as the launch service provider for a NASA mission to launch twin satellites to study solar activity’s effects on Earth. The TRACERS mission (Tandem Reconnection and Cusp Electrodynamics Reconnaissance Satellites) will make use of the company’s famous two-stage 230-foot Falcon 9 rocket, one of the world’s most active, to get the satellites into orbit, where they will observe observe how solar wind interact with Earth’s magnetosphere.
How to watch SpaceX Starlink launch livestream
SpaceX will provide a webcast of the Starlink launch on its website beginning about 15 minutes before liftoff, along with updates on social media site X.
California rocket launch could be visible in Arizona: Where to watch
Because of Arizona’s proximity to the launch site, there’s a good chance people there can see the spacecraft streak across the sky, especially at night or very early morning.
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Here’s a list of some possible viewing locations compiled by The Arizona Republic, a USA TODAY Network publication.
What is SpaceX?
Elon Musk, the world’s richest man, founded SpaceX in 2002.
The commercial spaceflight company is headquartered at Starbase in South Texas near the U.S.-Mexico border. The site, which is where SpaceX has been conducting routine flight tests of its 400-foot megarocket known as Starship, was recently voted by residents to become its own city.
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SpaceX conducts many of its own rocket launches, most using the Falcon 9 rocket, from both California and Florida. That includes a regular cadence of deliveries of Starlink internet satellites into orbit, and occasional privately-funded commercial crewed missions on the Dragon.
The most recent of SpaceX’s private human spaceflights, a mission known as Fram2, took place in April. SpaceX was also famously involved in funding and operating the headline-grabbing Polaris Dawn crewed commercial mission in September 2024.
SpaceX additionally benefits from billions of dollars in contracts from NASA and the Department of Defense by providing launch services for classified satellites and other payloads.
This article has been updated to add new information.
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Eric Lagatta is the Space Connect reporter for the USA TODAY Network. Reach him at elagatta@gannett.com
This article originally appeared on Arizona Republic: SpaceX rocket launch, NASA mission: Will people in Arizona see liftoff