The committee on Homeland Security comes to order. The purpose of this hearing today is to evaluate the uptick in retail crime in the United States. And your testimony. I recognize myself for Opening Statement. Good afternoon. We welcome you to todays important hearing on organized retail crime and threats to public safety. The topic of the hearing is the issue of organized retail crime , which has been rising throughout the committee, demonstrating a threat to and subjecting employees and customers to real harm. As Many Americans flock to stores to complete holiday shopping, Large Organizations are exploiting dashed to carry on an unprecedented spike in retail crime. Generally it involves two or more people obtaining items through theft or fraud through criminal enterprise. This is not the same thing as petty theft. Or shoplifting. This involves multiple events across stores and jurisdictions , further complicating efforts for Law Enforcement combat these crimes. We have reports that transnational groups are taking advantage of our open borders and they are engaging in retail theft. These criminals do not show any bias when selecting targets and this crime occurs across a wide spectrum from big cities to small towns and even rural areas. Organized retail crime is overblown some say but that is not even close. It is impacting every one of our districts. As many of us have seen, retailers are not overhyping the threats or challenges posed by the activity. They are taking steps to make sure to ensure the staff and products. They place common items like baby formula and detergent behind antitheft barriers. In washington, d. C. , where the Progressive City Council has implemented soft on crime legislation that has emboldened criminals to run rampant through the district. One cvs has resorted to displaying tissue paper and rolls of toilet paper as photographs, not the actual product, to prevent theft. In situations like this we must look at the Immediate Impact on families and consumers. This right here directly drives away somebody looking to buy diapers and formula at a Neighborhood Store or a family looking to quickly grab over thecounter medicine for a loved one. These chaotic and calculated robberies pose a risk to employees, customers, and store owners. There is a multifaceted domino effect on communities as well as the workload that occurs on Law Enforcement. The National Retail federation, which will be participating in the second panel today, surveyed Asset Protection professionals and found that 90 indicated that organized retail crime is more of a risk now than it ever was. Businesses of all sizes and all locations from Big Box Stores like home depot, target, cvs, walgreens and many others to momandpop shops are all worried about these alarming trends. They are sounding the alarm. Some of these cases have turned deadly. Just last week a Security Guard at a macys was fatally stabbed by a man attempting to steal merchandise. A second Security Guard was also injured. According to reports the suspect was discovered to have a history of incidents. At this macys location alone, they filed over 250 reports of retail theft in one year. Last year at a home depot in hillsborough, North Carolina an elderly employee was assaulted by a man attempting to steal a power washer. Mr. Razor, who is 82 years old was violently shoved during the theft and later died of his injuries. Sadly these incidents are not isolated. Similar tragedies have occurred across the country, notwithstanding that has included damage to storefronts. Organized retail crime is also responsible for financial losses to retailers. As a result they have been Closing Stores in certain locations and that creates a negative impact on the communities that they serve and it kills jobs for americans. According to a report, on the impact of organized retail crime, nearly 70 billion of goods was stolen in 2019. On a micro level call walmart has stated that it loses nearly 3 billion per year in u. S. Revenue due to theft. The severity of largescale left has led walmart to close several stores and has a raising of prices affect nationwide. Reports indicate that walmart plans to open a police force base within one of their stores. Target recently announced it would be closing nine Stores Across four cities. New york, seattle, san francisco, and portland, due to concerns about employee and customer safety from violence tied to organized retail crime. Part of the challenge in addressing organized retail crime includes the high theft threshold that have emboldened criminals to participate in organized retail crime. They pilfer items below the threshold for felony charges, recognizing that those are typically not subject to prosecution in certain jurisdictions. Criminals know that they will be released under week bail reform laws. They proceed to engage in similar or more severe criminal activities without encountering consequences. I look forward to hearing from the District Attorney who will be the next president of the national District Attorneys association on the Important Role that prosecutors play in the safety of communities, including addressing the challenge of retail crime. I look forward to this earring is an opportunity for a partisanship to come together and agree that we have a real issue. And if so, what can we be doing at this level . This surge in retail theft is more than just teenagers looking for a thrill. It is an abuse of soft on crime policy and evidence of a deeper rooted issue driving crime and fear. We have a distinguished panel of witnesses testifying today, including a federal panel of witnesses to investigate efforts to combat organized retail crime. We will hear from a second panel of witnesses in industry and State Government about their perspective on this challenge. I would like to see you go to the witnesses with us and i look forward to the discussion. I know recognize the Ranking Member and my friend. Thank you for working with us to call this earring on retail crime. Many of us have heard from retailers concerned by crime. The hearing today is to explore the scope of the crime and to determine how to best respond. Crime overall continues to be at historically low levels and has fallen even more in recent years. According to the fbi, a Violent Crime rate across the United States has fallen by more than half with homicides falling 35 and robberies falling by 76 and burglaries falling by 76 . The trend continues to this day. Violent crime decreased under 22 compared to the previous year. However, we must strive to do better to ensure that all americans are safe in their homes, schools, and neighborhoods. We have heard reports of organized retail crime becoming more prevalent and that leads us to todays hearing. We need to understand the nature of organized crime and the best practices for ending it. We are not talking about ordinary shoplifting committed by individuals working alone. We are talking about large organized groups who engage in systematic thrift of theft of retail goods and the resale of those goods for financial grime. It does not just impact large retailers. It impacts momandpop shops and retail employees. Beyond the important concerns about safety, these crimes raise cost for american consumers. Every time esther is robbed of products, they have to hire more security, replace broken windows and install Security Systems. Some of those costs will be passed on to shoppers. It is important that we get to the root of organized crime to keep people safe and lower costs for people across the country. This bipartisan hearing is a chance for us to hear from leaders in retail and from federal Law Enforcement agencies about their efforts to combat organized retail crime. I want to say you could to the panel is for joining us and without of john to objections, i would like to yield my remaining time to miss titus. Thank you member magaziner for yielding. I have been deeply involved in this for several congresses and it is one of the most talked about issues in business, Law Enforcement, and stakeholders. Eyewitnesses myself. I was at a walgreens in my district and we held a roundtable with representatives from Law Enforcement and business, including home depot. I agree with all that has been said before. We know that consumers and employees worry about their own safety. They worry about convenience when shopping and they worry that they are going to get caught up in one of these schemes or operations while they are out there during a holiday season. In addition, the retail crime but is organized has considerable monetary effects on the business and on our communities. In nevada, the organized Retail Crime Association estimates that in 2021, retail product that cost the state economy about 82 million. No community is immune. From the suburbs to the innercity to big business and small business, and it is particularly troublesome in a urbanized areas like my district downtown las vegas. Retailers have a strong presence there and they make a contribution to the economy and they are targeted. The bill that i have introduced combating organized crime is bipartisan. There are 47 republicans and 47 democrats and every democrat on this committee is a cosponsor. I want to thank them for their support. This hearing will highlight some of the trends around retail crime and it will underscore the need for federal action to allow dhs, investigators, and prosecutors to have the tools that they need to go after this organized crime and the associations, organizations, and activities that are tied to it behindthe scenes and many people dont even realize. Thank you again for the time and i look forward to hearing from our expert witnesses. I yield back. Opening statements may be submitted for the record. I am pleased to have two distinguished panels of witnesses here today on this topic. I ask that the first panel rise and raise the right hand. Do you solemnly swear that the testimony you will give before the committee on Homeland Security will be the truth, the whole truth, and nothing but the truth . Let the record reflect that the witnesses have answered in the affirmative. I would like to introduce the first panel. Mr. Michael krol is a Homeland Security investigator in boston massachusetts. Mr. Jason kane is a special agent in charge of the u. S. Secret Service National district. Finally, mr. Josi perez is Deputy Assistant director of the transnational organized crime, Violent Crime, and Operations Support section of the fbi investigative criminal support division. Thank you for joining us today and thank you for your service to this nation. I would like to recognize the witnesses. I know you have written statements. Please give it to five minutes. Mr. Krol, you are now recognize. Distinguished members of the subcommittee, thank you for the opportunity to appear before you today to discuss global efforts to combat organized retail crime and organized theft groups. It is the largest Investigative Agency within Homeland Security, we have unique authorities and an investigative mandate which impact our National Border and Economic Security. Our 6800 special agents are stationed in 253 domestic field offices and 93 international offices. While being supplemented by nearly 4000 state, local, federal, tribal Task Force Officers including 14 specialized and vetted transNational Criminal investigation units. The hsi combating Financial Crime and investigating cybercrime. Preventing crimes of exportation and victimization and upholding fairness in global trade and protecting National Security. The unlawful activity associated with organized retail crime intertwines with many of these aforementioned priorities and represents an area of our investigative focus. In 2022 c. O. P. Retail theft was responsible for 72 billion in losses according to the retail federation. In response, hsi initiated operation boiling point to communicate the severity of systemic theft. Operation boiling. 2. 0 is a multitiered strategy focused on integration of efforts to enhance public and private partnerships. Number two, creating efficiency of scale in investigative lee dissemination. 3 using this information to disrupt and dismantle affiliated organizations and finally, using hsis global reach to engage in a Robust Campaign to inform and educate consumers and industry about this threat among others. It is widely recognized that 21st century criminal networks diversify their criminal portfolios to increase profitability and influence. No longer tied with a single criminal scheme or enterprise, it is not uncommon for these groups to be affiliated with networks that perpetrate financials fraud, Identity Theft, human trafficking, illicit trade, money laundering, narcotics and weapons trafficking, among others. One thing remains constant. Organized theft groups must the origin of their illgotten gains. The use of traditional trade methods remain. At third Digital Assets in currencies can be used with relative ease to facilitate the immediate movement, concealment, and laundering of illicit proceeds. Recognizing the complexity of this finance, hsi collaborated with to publish it out for Law Enforcement investigators and Financial Crime professionals to help combat orc and ot g. Laundering training including moneylaundering associated with orc. Using existing infrastructure to support our efforts, we coordinate orc investigations across the full spectrum of Law Enforcement and private partners. This past year, mlbc had requests from state and local Law Enforcement. This information led to a doubling of each investigation which lasted as a yearlong. As we continue to see cyber m. A. Told crime, Identity Theft, complex global trade practices and other more technical methodology used in organized retail problems, they attacked this threat had on. Thank you again for your support of a chase i and the opportunity to appear before you today. Smacked the chair now recognizes mr. Kane for your Opening Statement. Thank you. Distinguished members of the subcommittee, thank you for inviting me to testify in the current investigative capabilities and how we may be of help in addressing organized retail crime. As one of the nations original investigative agencies, this includes conducting criminal investigations to protect the public, and infrastructure from criminal exploitation. Overtime, these have evolved from civil war to crimes that have become popular in the 1980s. Today, we have the authority to safeguard Payment Systems from criminal exploitation, even when those activities are becoming an increasingly international hr. The focus in respect to combating organized retail crime, we are providing shared resources and tools. We ate our partners for the specialized ability to track and seize illicit funds, often in the form of Digital Assets between criminal organizations. The secret service has the exceptional record of disrupting Transnational Criminal Organizations and we are dedicated to keeping up with the pace of technology to catch these cyber criminals. Have spent 2. 6 billion in 2022. These losses are victimbased such as compromises, pandemic related fraud, romance scams, and the dark marketplace. Congress has renewed its commitment to the National Institute by passing legislation that allows us to continue into fiscal year 2028. We must. One of the ongoing efforts of the Cyber Task Force which is directed by congress is to promote working environments. These task forces are in 42 offices across the United States. Through them, we were close with the u. S. Attorneys office to ensure our partners have the most relevant information used by organized criminal groups. Are well established and trusted relationships with Financial Institutions in combating financial currency and involving organized retail crime. We are fully engaged with our partners. This partnership is essential to fulfilling our mission. These are crimes of opportunity criminals exploit this. Efforts to stay had. Our efforts are paramount to preventing future crimes. While organized criminal crimes are not evidence based on the report of annual loss of over 100 million. Investigative focus of the secret service is to disrupt and deter criminal activity and recovering funds from americans to ensure those of criminal exploit are essentially prosecuted. Cyber enabled crimes are often transnational