Independents
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Jewelers' Security Alliance 2008 Crime Report
Amateur jewelry crimes on the rise
By Michelle Graff
May 01, 2009
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| At Sissy's Log Cabin in Pine Bluff, Ark., employees use a Radio Frequency Identification (RFID) tag system that allows them to scan merchandise in the case and quickly determine if anything is missing. |
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New York--Crimes against jewelers jumped nearly 17 percent last year, and while it's tempting--and perhaps partly accurate--to point a finger at the slumping economy, the recession isn't the only reason behind the rise, according to the Jewelers' Security Alliance (JSA).
The JSA 2008 Annual Crime Report found that the total number of jewelry industry crimes rose from 1,291 in 2007 to 1,505 in 2008, a 16.6 percent increase.
Dollar losses were up 6.6 percent, from $97.1 million to $103.5 million.
While the figures themselves are easy for jewelers to understand, JSA President John Kennedy says explaining what is behind the crime statistics is more difficult.
Kennedy, who has been studying gang activity for 25 years, says organized, professional gangs are responsible for almost all major crimes against the jewelry industry, including armed robberies, safe burglaries and attacks on traveling salespersons.
A myriad of complex issues, including law enforcement budgets, police activity, and cultural and economic factors, contribute to the ebb and flow of organized crime.
"It really doesn't make sense to say increases in crime and decreases in the economy are congruent," he says. "There is no easy, simple sound bite to explain increases in crime."
While the reasons behind the rise in organized crime are nearly as complex as the economic crisis, there is one statistic that Kennedy can explain.
In 2008, the number of grab-and-run crimes--offenses classified as "amateur crimes"--rose sharply, from 243 in 2007 to 362 in 2008, a 49 percent uptick.
"There is no question the amateur crimes have a big increase when the economy is bad," Kennedy says. "These crimes require essentially no skill, anyone can do them. They're very unsophisticated crimes and they are a crime of opportunity."
Sissy Jones, owner of Sissy's Log Cabin in Pine Bluff, Ark., has had experience with criminals trying to seize such opportunities at her jewelry store.
That is why, about a year and a half ago, Jones sunk more than $15,000 into a Radio Frequency Identification (RFID) tag system from Jewelry Computer Systems (JCS).
The system works by outfitting each piece of inventory with an RFID tag containing its SKU and serial number.
The tag enables employees to use a special wand to scan inventory while it's still in the case so that they can determine if a Rolex or diamond ring that was inside the case in the morning disappeared somehow during a hectic day.
The tags also give jewelers a way to track any inventory that does go missing.
For Jones, the system paid for itself about six months ago when a pair of criminals who came in at closing time used sleight of hand to make off with a Rolex watch.
By using the JCS system, the staff was able to quickly determine that a watch was missing and alert police.
In addition, because the high-end timepiece was outfitted with an RFID tag, police were able to track it down at a Dallas pawnshop.
"You get some money involved in this in a hurry," Jones says. "But if you lose one Rolex and get it recovered the next morning, is it worth it? Sure it is."
Jones uses the system to run inventory checks on various display cases between three and five times a week.
"You need to have a way to check your inventory quickly, especially if you have a suspicion," she says.
Another trend in jewelry crime is the decline in recent years in the number of jewelry industry personnel killed during robberies.
According to JSA statistics, 16 industry personnel lost their lives in 1995. By 2005, the figure had dropped to four, which then declined to two in 2006 and one in 2007.
Only two industry members (one retail jeweler/relative and one traveling salesperson) were reported killed during incidents in 2008, but eight people who were allegedly attempting to commit crimes were killed, up from four in 2006 and three in 2007.
Kennedy does not attribute this trend to more gun ownership or better firearms training among jewelers. He says that jewelers are no more armed today than they were 10 or 15 years ago, but they are now more familiar with what to do during a robbery. In addition, criminals are jailed more quickly and for longer periods today than in the past, perhaps serving as a deterrent to violence.
"I think jewelers have become more aware," Kennedy says. "They don't resist as stupidly as they have in the past, so [they] don't wind up getting killed."
Safe and sound
Jewelers' Security Alliance President John Kennedy offers the following tips to help jewelers keep their stores safe.
--Be extra-vigilant during opening and closing. Historically, most store robberies take place at the beginning or the end of the day, when merchandise is being moved around and there are, perhaps, fewer staff members present.
--More people on the floor means less crime. Retailers cutting back on employee hours in this slow economy should note that amateur criminals are deterred by extra staffers on the floor.
--Never resist in the event of a robbery. This is something the JSA stresses to jewelers, and Kennedy says not resisting has helped to reduce the number of on-the-job fatalities among industry personnel.
--Be prepared for a rise in jeweler fraud and memo fraud by wholesalers and manufacturers. "When business is really bad, a small percentage of people will resort to illegal, unethical and fraudulent activity," Kennedy says.
For a copy of the complete Jewelers' Security Alliance 2008 Crime Report, click here.
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