Tobacco theft has become significant, with criminals realizing the high value of these products, as well as nicotine products. Many times, an armful of cigarettes and vapes is worth more than the cash in the drawer.
As a result, convenience stores are becoming prime targets for criminals seeking to exploit the demand for these high-value items.
Rich Marianos, assistant director (retired) at the Bureau of Alcohol, Tobacco, Firearms and Explosives, and a professor at Georgetown University, explained in a recent Convenience Matters podcast that tobacco theft is “the new face of organized crime.” According to Marianos, “It touches everyone from high-value targets, terrorist organizations, organized crime, street gangs, low-level wolfpack crews.”
Combating the problem, he suggested, requires informed research-based policies and effective security measures. Marianos also spoke at the inaugural NACS Loss Prevention & Safety Symposium held December 3-4 in Dallas.
Regulatory actions like flavor bans, increased taxes, and raising the legal purchase age to 21 have all contributed to the rise of a growing black market for tobacco and vape products.
Marianos explained that when these products are heavily taxed or banned, people will seek alternative sources to obtain them, which fuels the black market.
This illegal market thrives because product is sold at much lower prices, no taxes are collected, no age verification is taking place, and ultimately legitimate business owners suffer.
Marianos commented that the situation is exacerbated by bad policies that fail to address the root causes of the problem and instead create more opportunities for illegal activities.
"Bad policy creates crime," said Marianos, adding that prohibition does not work. “What happens is they will go to other sources to get it, and that's the black market. That is what is thriving right now and is hurting the legitimate business owner."
What should retailers be aware of if tobacco theft is happening in their area or potentially at their stores, and what actions can they take to address tobacco theft?
Marianos offered a several suggestions:
- Be cognizant of people driving around and staking out the area around your store. “On many occasions, law enforcement has identified a certain vehicle that had been used” in a crime, he said.
- Explore using cameras with artificial intelligence capabilities that can assist with overall safety and loss prevention in your stores.
- Maintain strong relationships with local law enforcement. Marianos suggested that citizen police academies should include retailers to foster relationships and a better understanding of things like police response times and how different units operate. These academies are typically multi-week programs hosted by local police departments with lectures and sessions ranging from department operations to crime prevention and criminal investigations.
“Police aren't going to solve problems behind the wheels of cars and convenience stores can't solve problems behind the counter. There has to be that interaction,” he said.
His final suggestion: Don’t be hero. “For the cashiers and store owners, what they should always do is protect their own safety.”
Listen to more from Marianos in “Mitigating Tobacco Theft.”