One important thing about buying from Amazon, you could be buying stolen goods. The widespread shoplifting from drugstores and chain stores all over the country is an organized crime...
That's according Ben Dugan, the director of organized retail crime and corporate investigations at CVS Health. On Tuesday, he testified alongside fellow retailers at a Senate judiciary committee hearing to discuss the illegal sales of stolen and counterfeit goods online.
it's an issue Dugan has personally investigated for over 30 years - and he said it's only getting worse due to the lack of regulation surrounding online marketplaces such as Amazon and eBay.
"The ease with which online sellers can open and close their sites, essentially undetected, is directly related to this increase in criminal activity in our stores," he told legislators, adding that an estimated $500 billion in illicit stolen and counterfeit goods are sold on third-party marketplaces like Amazon each year.
"Let me just be clear about what organized retail crime is not. It is not everyday shoplifting," Dugan told the committee. "It is not individuals committing singular opportunistic thefts for personal reasons. It is organized, it is sophisticated, and it is massive in scale."
He said these complex crime rings often begin with a "booster" who steals from stores directly or recruits others to steal for them. The use of a weapon or physical violence during these thefts has more than doubled in the last year and a half, Dugan added.
The booster then delivers the haul to a "fence" who collects and transports the stolen goods to a consolidation site such as a warehouse.
From there, "the stolen goods can be sold directly online to unsuspecting customers, to other third-party sellers (some of whom know the goods are stolen or counterfeit) or distributed to the marketplaces themselves to fulfill orders," he explained.
Crimes like these cost retailers an estimated $45 billion in losses each year, according to the The Coalition of Law Enforcement and Retail.