Tourists Are Exploiting Visas to Steal From US Stores

International crime syndicates are exploiting visas to come to the United States to steal billions of dollars of domestic merchandise, according to new testimony by intelligence agencies.

A hearing on Tuesday in front of U.S. House lawmakers warned of a proliferation of theft at the hands of foreign crime rings from Europe and South America that have infiltrated U.S. retailers beyond the scope of shoplifting or the proverbial smash-and-grabs that gained widespread attention throughout the COVID-19 pandemic and continue today.

The results of these organized endeavors have led to approximately $112.1 billion in retail losses in 2022, up from $93.9 billion in the previous year, as cited in the 2023 National Retail Security Survey. Violence associated with organized crime rings remains a heightened concern among retailers, with more than two-thirds (67 percent) of surveyed respondents expressing increased violence and aggression from ORC perpetrators compared with a year ago.

"The FBI has an initiative targeting South American Theft Groups, which involves individuals from Chile and other South American countries exploiting tourist visas to travel in and out of the United States to facilitate theft and transport of stolen goods internationally," FBI Deputy Assistant Director of the Criminal Investigative Division Jose A. Perez said in written testimony addressed to the U.S. House of Representatives Committee on Homeland Security Subcommittee on Counterterrorism, Law Enforcement, and Intelligence Subcommittee.

Testimony was submitted by the National Retail Federation (NRF) as part of a hearing titled "From Festive Cheer to Retail Fear: Addressing Organized Retail Crime."

Ongoing investigations by the FBI and the Department of Homeland Security's U.S. Immigration and Customs Enforcement division continue to trace these individuals, according to written testimony submitted by Michael J. Krol, special agent in charge of Homeland Security Investigations.

"These investigations target the often-violent individuals profiting from the thefts," Krol wrote. "HSI investigations have uncovered several TCOs (transnational criminal organizations) involved in ORC. One example is the South American Theft Groups (SATGs), which include organizations based in Colombia, Chile and other countries.

"These groups recruit members and facilitate travel into the United States for individuals who then commit strategic thefts of high-value electronic devices. Items are stolen, consolidated, shipped to another location in the United States, and ultimately illicitly exported to foreign countries."

Newsweek reached out to the NRF, FBI and DHS via email for comment.

Krol cited an example of Romanian organized theft groups that recruit individuals from Eastern Europe to travel to the U.S. to commit retail theft and access device fraud. One recent HSI investigation in Missouri revealed a Romanian-linked group comprised of previously deported individuals who "wired illicit proceeds to Romania and other international destinations."

He said HSI is targeting OTGs that engage in three types of activities: ORC, cargo theft, and other related crimes. ORCs refer to groups of two or more individuals illegally obtaining items of value or otherwise.

Cargo theft is defined as widespread theft as part of an interstate or international shipment and can occur at any point along the supply chain.

"OTGs engage in large-scale theft which relies on criminal networks of boosters who steal goods from retailers, cleaners who disguise the origins of the stolen merchandise, fencers who resell the products through brick-and-mortar fronts and e-commerce websites, and professional money launderers who funnel the illicit profits to the criminals orchestrating the schemes," he said.

Such items become difficult to trace due to either being shipped to foreign markets or being sold via the dark web or other questionable websites with little to no standards of authenticity or verification.

Perez said that in April, more than 70 local police departments across Massachusetts and New Hampshire arrested seven OCR members in connection with stolen catalytic converters from over 470 vehicles, cash from automatic teller machines, and merchandise from jewelry stores—in total amassing an estimated $2 million in losses from thefts between 2022 and 2023.

Subcommittee Chairman Representative August Pfluger, a Republican from Texas, said in his opening statement on Tuesday that retail theft concerns are on display for all to see—citing how items like detergent and baby formula are often found behind anti-theft plexiglass, and some retailers are utilizing "smart" shopping carts equipped with automatically locking wheels to prevent thieves from exiting stores without paying.

"It has been said that organized retail crime is overblown," Pfluger said. "That is false. We cannot remain oblivious to the surge in organized retail crime throughout the country impacting every one of our districts.

"As many of us have seen, retailers are not overhyping the threats or challenges posed by this criminal activity. They are taking steps to ensure the safety of their staff, customers and products."

The NRF is encouraging lawmakers to move forward on legislation known as the Combating Organized Retail Crime Act for more cohesion in addressing theft from local, state and federal law enforcement.

Retail is the nation's largest private-sector employer, per the NRF, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs, or 52 million working Americans.