What happened
The National Retail Federation's "Impact of Retail Theft and Violence 2026" report, released in late July and widely covered on August 2, found that classic shoplifting and merchandise theft declined for the first time in several years. But the relief is partial: phone scams targeting retailers and their customers jumped 69%, loyalty program fraud rose 51%, and gift card theft and fraud climbed 42%. NRF's David Johnston said retailers are beginning to see theft levels stabilize thanks to security investments and employee training, but warned that organized criminals are simply moving to softer targets. The report also found AI adoption for fraud detection is still early: only 37% of retailers currently use generative AI tools for fraud prevention, even though close to three-quarters expect AI-driven fraud attempts to keep growing.
Why it matters for your business
If you run a retail storefront, restaurant, or any business with a loyalty program or gift card offering in the DC, Maryland, or Virginia area, this data describes exactly the kind of fraud your team is most likely to encounter next. Phone scams often target store employees directly, tricking them into processing fraudulent returns, sharing gift card codes, or approving fake loyalty redemptions over the phone. Because criminals are shifting to these lower-risk, higher-reward tactics precisely as physical security has improved, a store that only trains staff to watch for shoplifters is leaving a growing gap open. Employee phone-scam awareness is now as important as camera coverage.
What to do about it
- Train frontline staff to verify caller identity before processing any refund, gift card, or loyalty request by phone
- Require a callback to a verified number for any "urgent" vendor or customer request
- Set a policy that gift card balances and loyalty points can never be disclosed or transferred over an inbound call
- Review your fraud-prevention budget: 63% of merchants surveyed plan to increase spending on fraud-prevention technology this year