Bomb Threat Ransoms Join Retailers’ List of Security Headaches

Retailers are facing a new breed of scammers using bomb threats to achieve their goals.

As The Wall Street Journal (WSJ) reported Sunday (June 25), these criminals are targeting chains like Kroger, Walmart and Whole Foods, in some cases demanding money gift cards or bitcoin and threatening to set off bombs if their demands weren’t met.

The WSJ notes that while bomb threats and phone scams are nothing new, threats that demand ransoms are unusual, and could represent a new type of extortion.

“It’s yet another evolving scam,” Lisa LaBruno, senior executive vice president of retail operations at the Retail Industry Leaders Association, told the WSJ. 

And Doug Baker, vice president of industry relations at food trade organization FMI, said the recent spate of threats against retailers began months ago and escalated during the spring. He said his group is working with investigators from the FBI and Department of Homeland Security. 

“It’s disruptive,” Baker said, “If I’m a retailer … I’ve gotta close stores and have to call law enforcement. And send customers out.”

These threats are part of an escalating series of security-related headaches facing retailers. As PYMNTS wrote last month, retailers like Target, Kohl’s and Foot Locker all recently identified inventory shrinkage, retail theft or both as contributing factors driving down profits or negatively affecting on gross margins. 

In its previous fiscal year, Target saw a loss of about $763 million due to shrinkage, and also projected that shrinkage will have an even larger impact in its ongoing fiscal year, with an estimated drop in profits of more than $1 billion.

Speaking during an earnings call, CEO Brian Cornell, expressed deep concern about the threat. He stressed the far-reaching impact this problem has had on numerous merchandise departments around the country. Cornell underlined that the situation was not showing signs of improvement but worsening with time. 

“Left unchecked, organized retail crime degrades the communities we call home. As we work to address this problem, the safety of our guests and our team members will always be our primary concern,” Cornell said. “Beyond safety concerns, worsening shrink rates are putting significant pressure on our financial results.”

Meanwhile, Foot Locker saw a 4% drop in margins during the first quarter, a drop the company blamed on the twin impacts of major discounting and a rise in retail theft. 

“The impact on merchandise margins was primarily driven by heightened promotional activity, according to the company,” PYMNTS wrote. “It remains uncertain whether retail theft influenced these results or if promotions were the primary factor behind the loss in profits.”