State Law Enforcement Targets Retail Theft Networks As Cases Surged 60% Since 2020

What can look like a simple shoplifting case at a retailer can sometimes lead investigators to something much larger, Pennsylvania law enforcement authorities have found.

Pennsylvania Attorney General Dave Sunday on Tuesday marked the two-year anniversary of the office’s Organized Retail Crime Section at a Walmart in Cranberry Township, north of Pittsburgh.

The section was created following passage of Act 42 of 2023 and has become an investigative hub for large-scale theft cases that cross municipal, county and state lines.

Since its creation, special agents have opened more than 170 complex investigations, made more than 100 arrests, served more than 222 search warrants, and recovered millions of dollars in stolen property and counterfeit merchandise.

“Organized retail crime is not a victimless crime, and it is not a problem any one agency, retailer or community can solve alone,” Sunday said. “Our Organized Retail Crime Section has made significant progress over the past two years because of the partnerships we have built with retailers, law enforcement, community members, and the Legislature.”

The investigations, however, increasingly go beyond traditional retail theft.

Sunday said investigators are finding connections to transnational criminal organizations, including groups operating out of China and South America.

The section also has investigated sophisticated fraud schemes involving tap-to-pay technology and identity theft targeting Pennsylvania residents, including older adults.

“These are not isolated shoplifting and fraud operations,” Sunday said. “These are organized, coordinated criminal enterprises.”

The scope of the section’s work can be seen in cases involving fraudulent benefit cards, stolen customer accounts, electronics and gift cards.

In Allegheny County, investigators uncovered a scheme involving 450 fraudulent EBT cards and more than 800 transactions totaling more than $178,000 in purchases that were later resold through businesses.

In another investigation spanning four counties, suspects targeted Best Buy stores, causing more than $44,000 in losses through stolen electronics.

A separate scheme operating across five counties, including Bucks County, involved stolen Lowe’s customer accounts and nearly $50,000 in fraudulent purchases of construction materials.

A gift card fraud investigation involving Dick’s Sporting Goods uncovered a coordinated criminal operation responsible for more than $180,000 in losses nationwide.

The Organized Retail Crime Section has active investigations in 50 of Pennsylvania’s 67 counties, Sunday told reporters.

The section’s work also includes efforts to identify theft before consumers suffer losses.

During the recent NFL Draft in Pittsburgh, special agents inspected more than 270 retail locations, including 883 point-of-sale terminals, 775 gas pumps and 170 ATMs. The operation resulted in the recovery of nine skimming devices, with the activity estimated to have prevented more than $9 million in consumer losses.

“Our goal, anytime we can do it, is to prevent crime from happening before it does, because it’s much easier to keep it from happening than to have to investigate these cases and prosecute people after the fact,” Sunday said.

Statewide court data shows the scale of retail theft.

According to data from the Administrative Office of Pennsylvania Courts, retail theft offenses increased from 27,840 in 2020 to 44,694 in 2024.

The data shows the gender of offenders is close to equally split, with defendants ages 26 to 35 making up the largest age group.

In Bucks County, retail theft accounted for 5.77 percent of all criminal offenses during that period. The amount of retail theft cases increased by 84 percent from 2020 to 2024.

The attorney general said the financial impact of retail theft extends beyond businesses.

Stolen proceeds, he said, can flow into broader criminal enterprises and potentially help fund human trafficking, drug trafficking, and other illegal activities.

“When people steal from the companies, where does that money go after? Oftentimes it goes to fuel other very, very dangerous criminal activities as well,” Sunday said.

The section frequently uses the state’s RICO statute in its cases, which allows investigators to pursue criminal organizations as a whole rather than focusing only on individual offenders. The statute carries significant felony penalties.

The press conference brought together representatives from Walmart, American Eagle Outfitters and Giant Eagle, as well as local law enforcement and state lawmakers.

Nathan Smith, counsel for Walmart, said retailers cannot address organized theft without law enforcement and government partners.

“Organized retail crime is a growing challenge, affecting the quality of life for our customers, associates, and the communities we serve,” Smith said. “This isn’t a problem we can solve alone. We appreciate the support from Attorney General Dave Sunday, local law enforcement, and leaders across Pennsylvania to combat the issue.”

Walmart has 116 Supercenters and 24 Sam’s Clubs in Pennsylvania and employs more than 60,000 people in the state. The company also supports 131,000 supplier jobs across Pennsylvania.

Mount Lebanon Police Chief Haberman, who also serves as president of the Western Pennsylvania Chiefs Association, said cooperation between businesses and law enforcement remains critical.

“Whether you’re an independent business or whether you’re a big-box store, we are with you,” Haberman said. “We are going to be there to understand and make sure that in fact we not only deter this crime, but we bring these individuals to justice when we do identify these incidents of organized retail theft.”

Haberman asked businesses and community members to share information with local police departments.

For Sunday, the investigation into organized retail theft is increasingly about tracing the networks and determining where the money and stolen goods go after they leave a store.

“Pennsylvania businesses should not have to fight organized retail crime alone,” Sunday said. “We will continue bringing retailers, law enforcement, prosecutors, and policymakers to the same table, sharing information, holding these organized criminal networks accountable.”