New weapon in war against online retail theft

NATIONAL: The battle against Australia's $3 billion a year retail theft crisis has received a shot in the arm, following the release of a software package aimed at quashing the online sale of stolen goods.

GenuNet, a fifth generation internet monitoring service used by international fashion brands such as Cartier, Montblanc and US-based sportswear label Mitchell & Ness, will make its domestic launch this month amid mounting concerns over illegal sales on auction sites such as eBay.

Australian Centre for Retail Studies director Jeff Rogut said while it was difficult to determine the financial impact such sales had on domestic retailers, the growing popularity of online auctioneering meant thieves had a lucrative and anonymous source for on-selling stolen goods. Late last month, police arrested a 39 year-old-man on the outskirts of Sydney after he attempted to sell close to half a million dollars worth of stolen goods on eBay.

"The challenge for online sites is to work actively and collaboratively with retailers, brand owners and law enforcement agencies on finding effective ways of discouraging the use of their sites as an 'e-fence' for stolen or indeed, counterfeit goods," Rogut said.

GenuNet, a package officially endorsed by eBay and distributed by Melbourne-based security specialist Checkpoint Systems, claims to do just that. The program provides businesses with an automated monitoring service that tracks activity which infringes on its intellectual property (brand names, trademarks and counterfeiting) or indicates the unauthorised or illegal commerce of products. According to a report by American online security publication CSO, the program enabled Mitchell & Ness to shutdown 270,000 eBay auctions over a two year period.

Checkpoint Systems managing director Mark Gentle said trial sessions with leading Australian retailers had already yielded promising results. During a one week sampling session with a major Australian department store late last month, the program discovered 2315 products listed on eBay by 1121 unique sellers, with a combined value of $72,000. Gentle said although 827 ended in a sale, this would have contributed to a total of $1.6 million worth of transactions per year.

"The filtering process highlights sellers who have multiple products in multiple sizes," he said, adding that a large portion of stolen goods sold online are a result of employee theft. "Once contact details of unauthorised sellers are obtained, companies can then cross reference that with their employee database, helping to reduce internal shrinkage."
Gentle said that in the case of discount department store Target, one trader was found to have the Stella McCartney collection in multiple sizes, styles and ranges.

"There are many other cases where the products sold online haven't even hit store shelves yet," he said. "The system provides a quick and easy way for filtering these results and creating reports for analysis. After a review, and if necessary, the auction site will be contacted and any illegal or unauthorised auctions shut down."
Rogut said while cyber crime specialists offered retailers a means to identify and track potentially stolen goods, it was vital for businesses to maintain the front line.

"The issue of retail theft continues to be a major one for all retailers and with the growth of online auction sites, this is a seemingly more anonymous and easier way of on-selling the stolen goods than 'down at the pub'. The initial task for retailers is to ensure the security of their stock to prevent theft by both staff and customers."  

By Assia Benmedjdoub