Retail Council of Canada Participates in Fraud Prevention Month
Organized Crime is Estimated to Cost Canadians $5 Billion a Year
Toronto, March 1, 2007 – For Canada's retail industry, retail organized crime is a serious problem and includes everything from shoplifting, container theft, counterfeiting, refund fraud, to the use of fraudulent credit, debit and gift cards and identity theft. Fraud can rear its ugly head in many forms and as each year passes, these crimes become increasingly sophisticated and brazen. The Royal Canadian Mounted Police (RCMP) estimates that organized crime costs Canadians $5 billion a year.
"Retail Council of Canada is proud to be part of Fraud Prevention Month and to work with the Competition Bureau to help prevent Canadians from becoming victims of fraud by educating them on how to recognize it, report it and stop it," says Diane J. Brisebois, President and CEO, Retail Council of Canada (RCC). "It is estimated that retailers lose more than $3 billion a year, or $8 million a day, to store theft. What is more worrisome, however, is that today's thieves are becoming increasingly sophisticated, therefore posing an even greater risk to the health and safety of the Canadian public."
Fraud Facts*:
- Organized retail crime in North America is pegged at $40 billion annually and growing.
- Credit card fraud in Canada resulted in losses of $201 million to major credit card companies in 2005.
- Debit card fraud in 2005 resulted in losses of $70.4 million.
- In 2005, 422,447 counterfeit bank notes were passed and seized in Canada.
- Container theft has been pegged at $20 billion worldwide.
During the month of March, RCC will undertake a variety of educational activities to help spread this important message. RCC is working with VISA Canada to provide educational materials to retailers as part of a countrywide fraud awareness mall visit campaign. In addition, RCC is partnering with the Bank of Canada to communicate best practices for spotting counterfeit currency with its members. RCC's Web site will also contain fraud prevention tips and information for both retailers and consumers.
Brisebois continues, "Fraud affects retailers, of every type, of every size and in every part of the country. With increased competition in retail and the industry's need to keep prices at a level where customers experience value, fraud, and in particular, retail organized crime, is one of the biggest threats to a retailer's continued growth and profitability."
RCC has long been involved in educating Canadian retailers about fraud and sharing practical strategies for reducing, preventing and mitigating theft. Most recently, RCC formed a national Retail Organized Task Force to specifically deal with the growing problem of retail organized crime and work with governments, law enforcement and other partners.
In addition to these efforts, RCC's long-standing Loss Prevention Committee provides retailers with educational, information sharing and networking opportunities. The Committee produces a quarterly Loss Prevention Newsletter to communicate the latest news and best practices with retailers across Canada. RCC also hosts the annual Retail Loss Prevention Conference and regional workshops that bring the retail community together to explore and learn about new retail crimes and prevention strategies. RCC members can also benefit from access to counterfeit detection equipment through a RCC partnership with Gemsys.
"Canada's retail industry still has significant work ahead to combat the problem of fraud, however, by partnering with the Competition Bureau and participating in Fraud Prevention Month, we can make significant inroads by educating the Canadian public on this critical issue," concludes Brisebois.
* Sources: Visa Canada, Interac, Bank of Canada
About Retail Council of Canada
Retail Council of Canada (www.retailcouncil.org) is the Voice of Retail. It is a not-for-profit association representing more than 40,000 stores of all retail formats, including independent merchants, regional and national mass and specialty chains, and online merchants.
For more information, contact:
Stephanie Petroff
Manager, National Public Affairs
Retail Council of Canada
Tel.: (416) 922-0553, ext. 228
E-mail: spetroff@retailcouncil.org.