JEWELERS SECURITY ALLIANCE

Transcription

1 JEWELERS SECURITY ALLIANCE 2014 ANNUAL CRIME REPORT Jewelers Security Alliance 6 East 45 th Street New York, NY 017 Tel: Tel: Fax: jsa2@jewelerssecurity.org Prepared by: Scott F. Guginsky, John J. Kennedy, Ryan O. Ruddock, and Giovanni Sillau Published March 2, 2015

2 CONTENTS: EXECUTIVE SUMMARY, p. 2 PART ONE: ON-PREMISES CRIME, p. 3 PART TWO: OFF-PREMISES CRIME, p. DOLLAR LOSSES-INFLATION ADJUSTED- YEAR CHART, p. 13 HOMICIDE CHART-JEWELERS KILLED-2000 TO 2014, p CRIMES AND ARRESTS BY STATE, p. 15 JSA SOURCES OF CASE INFORMATION, p. 16 EXECUTIVE SUMMARY 1. The total number of crimes* reported to the JSA decreased from 1,414 in 2013 to 1,381 in 2014, a 2.3 % decrease. 2. Total dollar losses from crimes against jewelry firms in the U.S. increased from $66.5 million in 2013 to $77.8 million in 2014, an increase of 17.0%. While the total amount of dollar losses was up 17%, the number of crimes was down 2.3%. How does one explain this? The reason is that there was a greatly increased number of high-dollar robberies, particularly smash and grab robberies, and high-dollar burglaries, combined with a significant decline in lower dollar grab and runs and three minute burglaries. 3. Smash and grab robberies increased from 62 in 2013 to 1 in 2014, a 77.4% increase, resulting in major losses of high-end watches and diamonds. 4. Arrests by law enforcement increased from 422 in 2013 to 694 in 2014, an increase of 64.5%. This was due to intense work and cooperation by the FBI and local police in investigating major gangs operating throughout the U.S., including continuing investigations of crimes committed in prior years. 5. Despite the increase in dollar losses in 2014, the total amount of those losses was down 42.9% on an inflation adjusted basis since *JSA Crime Definitions: Robbery Taking of property from a person by use of force or fear. Burglary Entering premises after closing with intent to commit a crime. Includes hiding in a jewelry location, taking product and breaking out after closing Theft Taking of property without force or fear. Includes crimes such as check and credit card fraud, distraction crimes, diamond switches, sneak thefts and shipping losses that present evidence of criminal activity. The term shoplifting is too vague and not used to describe events in this report. 2

3 COMBINED ON/OFF-PREMISES LOSSES/EVENTS I. DOLLAR LOSSES CATEGORY 2014 Dollars 2013 Dollars 2012 Dollars ON-PREMISES $63.9 mil $56.3 mil $47.8 mil OFF-PREMISES $13.9 mil $.2 mil $12.4 mil Total: $77.8 mil $66.5 mil $60.2 mil II. EVENTS CATEGORY 2014 Events 2013 Events 2012 Events ON-PREMISES OFF-PREMISES Total: From 2013 to 2014 dollar losses increased by 17.0%, and the total number of criminal events decreased by 2.3%. A greater number of high dollar robberies and burglaries increased the dollar loss total for the year despite a decline in the total number of crimes. PART ONE: ON-PREMISES CRIME This section provides statistical data regarding criminal activity that targets jewelry locations as opposed to couriers or traveling salespersons on the road. For example, this section includes a robbery, burglary or theft committed at a retail jewelry store, at the plant of a jewelry manufacturer or the office of a wholesaler I. TOTAL DOLLAR LOSSES - $63.9 MILLION Available data regarding all on-premises crime categories indicates a 13.5 percent increase in dollar losses and a 3.7 percent decrease in criminal events. In 2014 the JSA received 1,323 on-premises crime reports compared to 1,374 reports in A. Dollar Losses/On-Premises Crime (in millions) CATEGORY Robbery $34.0 $26.1 Burglary $18.7 $18.6 Theft $11.2 $11.6 Total: $63.9 $56.3 B. INCIDENT PERCENTAGE BREAKDOWN/ON-PREMISES CRIMES CATEGORY Robbery 21.0% 20.7% Burglary 18.4% 23.7% Theft 60.4% 55.6% 3

4 II. ROBBERY A. Number of Robbery Events The number of robberies in 2014 decreased by 1.8% percent from There were 279 robberies reported to the JSA in 2014 compared to 284 in However, the number of Smash and Grab robberies increased from 62 in 2013 (16 with a gun) to 1 in 2014 (20 with a gun), a 77.4% increase. The majority of smash and grab robberies featured the rapid use of sledgehammers or hammers, and guns were not displayed. In 2014 there were 56 arrests of suspects in smash and grab cases compared to 30 arrests in B. Robbery Dollar Losses Robbery dollar losses increased significantly, that is, by 31.4 percent compared to Losses for 2014 were $ 34.3 million compared to $26.1 million for C. Most Active State/Robbery by percentage of total robberies California 15.7% California 20.4% Texas 14.6% Pennsylvania.2% New York 9.0% Texas 8.1% Florida 6.1% Florida 7.0% Note: Chart reflects the percentage of total number of on-premises robberies and indicates that 45.4% percent of jewelry industry on-premises robberies were committed in just four states. On-Premises robberies occurred in 38 States. D. Most Active Month/Robbery Most Active: January (12.5 percent of total robbery events) Least Active: May (5.3 percent of total robbery events) Average Robberies per month: 23.2 E. Most Active Time of Day/Robbery In 2014 the greatest number of robberies occurred between.00 AM and AM. The second most active time of the day for a robbery to occur was between 2.00 and There was no 60 minute time period during a normal work day when robberies did not occur. F. Most Active Days of Week/Robbery As reported in previous years, robbery events occurred with similar frequency on weekdays and with less frequency on weekends. Tuesday and Wednesday, respectively, were the most active days during Sunday, when many jewelry firms are not open for business, was the least likely day for a robbery to occur. 4

5 Events Number of Events Most Active Days of the Week - Robbery Days of the Week G. Percentage of Robbery Events With a Gun/Violence Robbery events with violence: % 21% 16% Robbery events with a gun: % 65% 66% The percentage of robbery events with a gun declined substantially in Most robbers used sledgehammers and hammers and displayed guns much less frequently than in prior years. H. Smash and Grab Robberies 2014 Smash and Grab Locations Dept. Store Downtown Shop Hotel Mall Stand Alone Strip Center Unknown Locations 5

6 Events Event Events Smash and Grab Robberies by Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Smash and Grab Robberies by Day of the Week Monday Tuesday Wednesday Thursday Friday Saturday Sunday Day 15 5 Smash and Grab Robberies By Hour of the Day AM -11 AM Time 6

7 III. HOMICIDE A. Homicide Victim Categories VICTIM CATEGORY Retail Jeweler/Relative Customer Traveling Salesperson Police Officer Total B. Near-Fatal Violent Incidents INCIDENTS Someone shot (not fatal) Shots fired, no one hit These near-fatal incidents had the potential of adding 21 additional homicides to the yearly industry total for IV. BURGLARY LOSSES - $18.7 million - 41 States A. Dollar losses increased. Losses were $18.6 million in 2013 compared to $18.7 million in 2014, which is a 0.5% increase in dollar losses. In 2014, 244 burglaries were reported to JSA compared to 327 in 2013, a 25.4% decrease in burglaries reported to JSA. B. Safe Attacks. The frequency of safe attacks increased by.5% in 2014 compared to In 2014, twenty one safe attacks occurred in 11 states and represented nine percent of the total number of burglaries against the jewelry industry. Florida and California were the most active states for safe attacks and the average loss for a burglary that involved a safe attack was $379K. C. Three-Minute Burglaries (B3M) $3.8 Mill. Losses 37 States These occurrences are identified as Three Minute Burglaries because that is the approximate time required to complete this crime. They are usually committed in the middle of the night by smashing a glass front door or window of a retail establishment, and then smashing display cases and stealing out-of-safe merchandise. The B3M category represents approximately 64.3 percent of the total number of burglaries experienced by the jewelry industry. Out of 244 burglaries reported in 2014, 157 were B3M compared to 233 in 2013, a decline of 32.6%. Three-minute burglaries occur only when jewelry is not secured and out of sight overnight. The average B3M in 2014 resulted in a loss of approximately $17K in jewelry, compared to $24K in 2013, a decline of 29.2%. In addition, B3Ms cause property damage, business interruption and possible negative customer reaction. 7

8 D. (B3M) Three-Minute Burglary - Frequency by day and month - DAY MONTH Mon 35 Jan 18 Jul 18 Tue 26 Feb 12 Aug 12 Wed 20 Mar 16 Sep 12 Thu 19 Apr 16 Oct 12 Fri 17 May 9 Nov 12 Sat 18 Jun Dec Sun 22 Burglary (Not B3M) - Frequency by day and month - DAY MONTH Mon Jan 8 Jul 8 Tue 9 Feb 9 Aug 8 Wed 16 Mar 9 Sep 4 Thu 7 Apr 9 Oct 8 Fri 8 May 7 Nov 3 Sat 17 Jun 6 Dec 8 Sun 20 E. Most Frequent Points of Entry/All Burglaries During high-tech burglaries that involve a safe or vault attack, entry is often gained by cutting a hole in the roof or an adjacent unprotected wall, ceiling or floor after an alarm system has been compromised in some manner. ENTRY POINT Front Door 27% 27% 35% Window 19% 22% 22% Roof 14% 11% 5% Wall 7% 4% 3% Veh. Smash 4% 4% 2% Security Gate 1% 2% 3% Unknown/Other 28% 30% 30% Note: In approximately 28 percent of the burglary reports received by the JSA, the point of entry was not clearly defined, could not be confirmed, or occurred in a manner not listed above. F. Rooftop Burglaries: Initial Entry through a Roof. JSA received reports of 36 rooftop burglaries from fourteen states in 2014 compared to 34 in 2013, a 6% increase. Florida was the most active state with thirteen rooftop burglaries. The majority of these burglaries resulted in large losses. Alarm systems, often without line-security, were compromised. In other cases when alarm signals were sent, responding police units, unable to detect any obvious evidence of a breakin during a cursory exterior inspection, and unable to conduct an internal search, left the scene while the burglars were possibly inside, on the roof or nearby. In most of the recent rooftop burglaries the suspects took merchandise left out in showcases overnight. G. Most Active States/Burglary STATE California 13% 11% Florida 12% 12% Texas 7% 6% North Carolina 7% 9% Illinois 5% Not listed Georgia 4% Not listed 8

9 Events Note: Chart reflects percentage of the total number of burglaries and indicates that approximately 48% of the total number of burglaries in the United States occurred in just six states. V. THEFT: $11.2 MILLION IN LOSSES (800 CRIMES) IN 2014 vs. $11.6 MILLION IN LOSSES IN A. Frequent Theft Methods CATEGORY EVENTS AVERAGE LOSS Grab and Run 337 $8,371 Credit Card & Payment 6 - Fraud Distraction 1 $16,176 Sneak Theft 91 $9,609 Switches 33 $8,870 Internal Theft 28 $42,502 Cut/Lift Glass 23 - Gold Buying Fraud 11 - Fence 9 - Grab and Run losses reported in 44 States. In 2014, there were 337 grab and run crimes reported to the JSA, compared to 476 in 2013, a decline of 29.2 %. Approximately 42 percent of all thefts reported to the JSA in 2014 were Grab and Run events. Police arrested and charged 58 suspects in connection with Grab and Run events in 2014, many of whom had committed multiple grab and runs. B. Theft - Grab And Run -Frequency by Hour of the Day Grab and Run Thefts By Hour of the Day am 11 - noon Time Based on 248 cases in 2014 in which the exact time of the loss was reported. 9

10 C. Theft - Grab And Run - Frequency by day and month DAYS MONTH Mon 47 Jan 29 Jul 38 Tue 68 Feb 22 Aug 39 Wed 57 Mar 19 Sep 29 Thu 43 Apr 30 Oct 31 Fri 58 May 24 Nov 29 Sat 35 Jun 32 Dec 21 Sun 35 PART TWO: OFF-PREMISES CRIMES This section provides statistical data regarding criminal attacks occurring away from the victim s business base of operations. For example, attacks against traveling jewelry salespersons, trunk and remount show operators, couriers, firms exhibiting at jewelry shows, retailers attacked away from their place of business, including at home, and other industry members traveling with jewelry. I. OFF PREMISES DOLLAR LOSSES - $13.9 MILLION 21 States Dollar losses increased by 36.2 percent during 2014 and the number of criminal events increased approximately 45 percent. This report compared 58 cases from 2014 to 40 cases reported to JSA in In 2014, nationwide off-premises attacks occurred at a rate of 5.2 per month, in 2013 attacks occurred at a rate of 3.3 per month. Off-Premise crimes were reported during all calendar months for 2014 except for November. The month of May had the most off -premise crimes reported 11. A total of 39 thefts involved a traveling salesman which was 67.2% of all off-premise crimes in CRIME CATEGORY Robbery $ 11.7 million $8.7 million $.9 million Burglary $22K $55K $576K Theft $2.2 million $1.48 million $968K Total $13.9 million $.2million $12.4 million II. PERCENTAGE OF TOTAL OFF-PREMISES CASES BY CRIME CATEGORY CATEGORY Robbery 62.1% 70% 72% Burglary 3.4% 2.5% 9% Theft 34.5% 27.5% 19% III. OFF-PREMISES ROBBERIES A. Violence There were 36 off-premises robberies in 2014, including traveling jewelry salespersons, retailers and couriers, which is up 28.6% compared to In 17.2

11 percent of all the off-premises crimes ( out of 58) reported to JSA in 2014, a victim was physically assaulted, usually in response to some level of resistance on the part of the victim. A gun was displayed in 15 of the robberies and a knife was displayed during 3 incidents. B. Off-Premises Robbery Losses $11.7 million $8.7 million $.9 million C. Trunk/Remount Shows In 2014 the JSA received one report regarding Trunk/Remount show losses. IV. OFF-PREMISES BURGLARY There was two residential burglary of a jeweler reported to the JSA in V. OFF-PREMIESES THEFT - $2.2 MILLION IN LOSSES There were twenty off premises thefts in 2014 including eleven from unattended vehicles. Unless expensive insurance riders have been purchased, this type of loss is not generally covered by insurance. There were six thefts at trade shows and two thefts while jewelers were parked in a rest stop. A. Off-Premises Theft Dollar Losses $2.2 mil. $1.48 mil. $968K VI. MOST FREQUENT CRIME SCENES Note: Overlapping occurs between some crime scene categories. CRIME SCENE Highways/Street 21% 13% 7% Parking lots 16% 13% 16% Show related 14% 5% 4% Residence 12% 18% 26% Gas Stations 5% 3% 3% Hotel/Motel 5% 15% 24% Restaurants 2% 8% 1% Airports 0% 3% 1% Highways/Street is the most common place of occurrence for off premises attacks. There are two home invasions of retail jewelers, meaning actual entry into the home, that are included in the Residence category for 2014, compared to three in The JSA received no reported losses at an airport during VII. SUSPECT PROFILE In the great majority of off-premises losses reported to the JSA, in which suspect descriptions were provided or arrests made, male and female Hispanic suspects were indicated. Based on law enforcement reports, the majority of those arrested were found to be from Colombia and residing in the U.S. illegally. Local and Federal law enforcement agencies have confirmed the existence of organized criminal groups identified as South American Theft/Robbery Gangs (SATG), that target the jewelry industry. SATG are also operating in Canada and throughout the world, including at 11

12 major jewelry trade shows, and are involved in major criminal activities related to organized retail theft and other non-jewelry related crime. VIII. MOST ACTIVE STATES - 21 States ( States) States with losses: CA, CT, DE, FL, IL, IN, MD, MN, MS, NE, NV, NJ, NY, NC, OK, OR, PA, SC, TX, UT, WA STATES 2014 STATES California 34.4% 1. California 23% 2. New York.3% 2. New York 13% 3. Florida 6.9% 3. Pennsylvania 13% 4. Nevada 6.9% 4. Washington % Total 58.5% Total 59% Percentages shown reflect the percentage of the total number of off-premises losses. The information provided in this chart demonstrates that 58.5% of all off-premises losses occurred in just four states during In 1999 the U.S. diamond, jewelry and watch industry experienced 323 off-premises losses, overwhelmingly of traveling jewelry salespersons and trunk show personnel. Since then there has been a steady decline in this category of crime. In 2014 JSA received just 58 reports of such crimes. Two important contributing factors regarding this reduction are the dedicated interest by law enforcement, particularly the FBI in cooperation with local law enforcement agencies, and the greatly reduced number of traveling jewelry salespeople on the road due to the changing methods of jewelry distribution and sales. 12

13 Dollar Amount (Millions) U.S. JEWELRY INDUSTRY CRIME LOSSES 2004 THROUGH 2014 LOSSES STATED IN 2014 INFLATION ADJUSTED DOLLARS YEAR LOSSES STATED IN 2014 DOLLARS 2004 $ million 2005 $ million 2006 $ million 2007 $1.36 million 2008 $ million 2009 $7.32 million 20 $87.31 million 2011 $89.40 million 2012 $61.79 million 2013 $67.58 million 2014 $77.80 million Note: Dollar losses are down % from 2004 to 2014 in inflation adjusted dollars. Inflation Adjusted Losses from 2004 to Years 13

14 Deaths JEWELRY INDUSTRY PERSONNEL KILLED DURING ROBBERY EVENTS Year Deaths TOTAL 66 Jewelry Industry Personnel Killed Durring Robbery Events Years 14

15 COMBINED ON/OFF-PREMISES 2014 CRIMES AND ARRESTS BY STATE All crime categories, robbery, burglary and theft, on-premises and off-premises, were included in the preparation of this chart. Arrests refers to the number of persons arrested during State AL AR AK AZ CA CO CT DC DE FL GA HI Crimes Arrests State IA ID IL IN KS KY LA MA MD ME MI MN Crimes Arrests State MO MS MT NC ND NE NH NJ NM NV NY OH Crimes Arrests State OK OR PA RI SC SD TN TX UT VT VA WA Crimes Arrests State WI WV WY Crimes Arrests TOTAL 2014 CRIMES: 1,381 (Crimes in ,414) TOTAL 2014 ARRESTS: 694 (Arrests in ) California, the state with the most crimes in 2014, also has the most jewelry retail locations, and has traditionally led the U.S. in jewelry crime. No reports of jewelry crimes were reported to the JSA from the states of South Dakota, North Dakota and Wyoming. Note: The number of crimes indicated in the eight states shown in bold represent approximately 54% of the total number of jewelry crimes reported to the JSA during The number of arrests indicated for those eight states represents about 62% of the total number of arrests during Note: Of the On-Premises crimes reported to JSA, multi-branch firms, retail chains and department stores had 36.2% of the robberies, 21.7% of the burglaries and 59.6% of the thefts, compared to independents who had the rest. 15

16 Site of On-Premises Crimes 2014 Robbery Burglary Thefts Mall Stand Alone Strip Center Downtown Shop Department Store Antiques Store Dot Com Flea Market Hotel Office Building Unknown JSA Sources of Case Information JSA Membership (over 21,000 retail, wholesale and manufacturing jewelry locations.) Local jeweler crime prevention networks JSA law enforcement information sharing network Jewelry retail chains information sharing network Non-member crime victims Associate trades: alarms, safes, private security, etc. Insurance companies, insurance brokers and adjusters Media, trade publications and online sources. The statistics provided in this report are based solely on case specific information obtained by the JSA. Only information that in the opinion of the JSA is credible, and can be verified in some way as to its accuracy, is used in the compilation of these statistics. Extremely large and/or suspect dollar amounts may not be included in some calculations to prevent skewing. The loss values reported should be considered conservative, and may be greater than indicated. JSA seeks to use loss values at cost, not retail value, and no values from past years are adjusted for inflation unless specified. It is not possible for the JSA to obtain information on every jewelry industry crime which occurs in the United States for several reasons, not limited to the fact that many go unreported, even to the police. However, the JSA database is the largest, most complete and accurate in existence. It is the opinion of the JSA staff that information pertaining to additional criminal events would not have a significant effect on the dollars or percentages derived from existing information. 16