FBI, retailers to share crime data

Computerworld - Two retail trade groups are linking hands with federal law enforcement officials to create a database designed to help fight retail crime.

The National Retail Federation (NRF), the Retail Industry Leaders Association and the FBI yesterday unveiled the Law Enforcement Retail Partnership Network (LERPnet) system, a Web-enabled database that will allow retailers and law enforcement agencies to securely share information about organized retail crime. The effort targets burglaries, robberies, counterfeiting and online auction fraud.

"Organized theft rings steal billions of dollars of merchandise every year, which victimizes retailers, endangers the safety of retail employees and raises the price of consumer goods," Joseph LaRocca, the NRF's vice president of loss prevention, said in a statement. "With this system, retailers are banding together with law enforcement to send a clear message to criminals: We will not tolerate your behavior and we will stop you."

The problem is severe. According to the NRF's 2006 Organized Retail Crime survey, 81% of retailers claimed to have been victimized by organized retail crime; half of those surveyed reported an increase in such crimes in their stores.

In response, a group of retailers, law enforcement officers and IT experts has been working on the LERPnet for two years. After the database is launched on Monday, retailers and law enforcement officials hope it will become the nationwide standard for sharing retail-related crime information. Currently, all crime incidents are reported by retailers to local police; law enforcement officials in other counties or states who may be investigating similar crimes, possibly by the same criminals, have no way of sharing relevant data with each other.

With LERPnet, a victimized retailer can directly share crime data with other companies and agencies -- passing along such key bits of information as suspects' identities, getaway vehicles or the identification numbers of stolen products. This allows for quick data analysis and response by law enforcement officials. The system will also send automatic e-mail alerts to retailers when crimes are being committed in their area. It can also sift reported crimes and monitor online auction sites to see whether stolen items are being sold there.

The NRF said several retailers are already using LERPnet, with more awaiting training and access to it.

Evan Schuman, a retail industry blogger, said the program's success will ultimately depend on the vigilance and awareness of rank-and-file store employees. "The associates and cashiers at the stores are the first link in this chain, and it's where retail security usually falls apart."

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