Introduction

Fencing is the act of receiving and distributing stolen goods (Siegel, 2019). After a criminal has stolen goods, they must find a way to sell them quickly. Most criminals choose to find a “fence” as a quick way of offloading their stolen goods instead of fencing the goods themselves. A fence is a person who will knowingly purchase stolen goods and resell them for a profit. Fences usually hide their criminal activities through legitimate businesses such as pawnshops and flea markets. In order for fences to properly operate, they need to know thieves or be able to contact thieves personally quickly. Like in any business, connections are essential in order for them to thrive.

History of Fencing

Fencing has been around as long as there has been something worthwhile to steal and resell. One of the earliest fencing records was in early 18th century England with two famous fences, Charles Hitchen and Jonathan Wild. Charles Hitchen was a London city marshal and thief-taker, which captured thieves for profit. Many started this career as rewards were offered from the Crown for each captured criminal. Hitchen would use this job as a gateway to his career as a fence by controlling the thieves to steal for him to resell in exchange for clemency or offering intelligence (Beattie, 2004).

Hitchen would later be caught and tried for many counts, including his homosexuality and sodomy acts. Hitchen was quickly replaced by his former assistant Jonathan Wild, who would rule London’s underworld for a time. He was given the title “Thief-Taker General” and was known for his ruthless intimidation tactics to control the city’s thieves. His endeavors would soon reach the English government’s ears, which tried and hanged him (Beattie, 2004).

Categories of Fencible Goods

Anything that has value to someone is something that can be stolen and fenced for profit. There are many “black markets” out there for any product a person could be looking for across the globe. Some of the more common markets include illegal drugs, firearms, stolen merchandise, prostitution, and human trafficking. Other markets include art, antiques, artifacts, diamonds, child pornography, pirated media, and endangered animals (Sutton, 2010).

Organized Crime

Fencing is an essential part of organized crime. Whenever anything is stolen for profit, the process needs a proper fence to resell it. Organized crime has been around since the beginning of the 19th century. According to the author and criminologist Paul Lunde, “Piracy and banditry were to the pre-industrial world what organized crime is to modern society.” (Lunde, 2004). This quote examines how crime has evolved from small groups of pirates and bandits to the organized crime groups we see in today’s society. Organized crime groups go by many names depending on which country you live in. Mafia, syndicate, triads, yakuza, ring, and the mob are just a few of the many different titles organized crime groups can take.

Regarding fencing, organized retail crime takes its place. Organized retail crime, also called organized retail theft, refers to large-scale theft and fraud committed by organized groups of shoplifters. For some, these organized groups of shoplifters are known as “boosters,” which commit large-scale theft to sell it to fences for profit. These “boosters are considered professionals in their field compared to normal shoplifters who steal for personal gain or consumption. Organized retail theft does not only include theft from retail stores but can also include theft from distributors and manufacturers (Finklea, 2012).

Fences use a variety of methods to resell stolen merchandise. Some fences will try to resell the stolen merchandise back to the victims through illegal means. Others use legitimate businesses like pawn shops, convenience stores, and salvage yards to cover their shady deals. Flea markets and other resale marketplaces are perfect places to fence stolen goods as fences can sell any damaged goods there when they cannot resell them back to the victims. These places also become the perfect places for meetings and recruiting new “boosters” into the fold (Finklea, 2012).

E-Fencing

E-Fencing is the act of fencing through the utilization of the Internet. Since the advent of the Internet, fencing has grown from a small, local market to a global market with many new opportunities (Siegel, 2019). As technology has continued to grow and blend itself into our lives, new commodities have been created, i.e., our personal information and personal data. Things like our credit card numbers, bank accounts, social security numbers, and other digital information can be stolen and sold online (Maryville University, 2018).

There are many places to find stolen items, including online marketplaces like Amazon, Craigslist, or eBay, mobile apps, social networks, and more often, the dark/deep web of the Internet (Maryville University, 2018). Most thieves and fences choose to use darknet markets to sell their products will less chance of being caught than in traditional markets. Many darknet markets have existed to fence stolen goods globally, and many are still currently active.

Current Laws & Strategies

The act of fencing is illegal in every country globally, and many laws and regulations have been enacted to combat fencing. In the United States, Title 18 of the U.S. Code is the federal government’s main criminal code. Specifically, Title 18 U.S. Code § 2315 refers to the act of fencing or the sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps (Office of the Law Revision Counsel).

Regarding organized retail crime, many retailers have used various systems to decrease the chances of theft. These systems include alarms, audio/video recording equipment, closed-circuit TVs, safes, locks, chains, and security guards. In America, various law enforcement agencies have also involved themselves in restricting theft and fencing. Some of these groups include the FBI, ICE, USSS, and the USPIS (Finklea, 2012).

With E-Fencing, there are new strategies that retailers and other organizations are enforcing, such as the utilization of background checks, encryption, identification verification measures, various security measures, and stricter sales guidelines (Maryville University, 2018). Law enforcement has implemented various strategies to combat e-fencing. Some of these strategies include establishing multiagency partnerships, encouraging civilians to report suspicious trades, publicity campaigns to discourage the purchase of stolen goods, and improving their agency’s capacity to investigate stolen goods (Sutton, 2010).

Strategies are also being enforced as attention grows to the e-fencing of goods from organized retail crime. Online marketplaces like eBay and Overstock have been putting new measures in place to combat e-fencing. In April 2008, eBay created the PROACT (Partnering with Retailers Offensively to Attack Crime and Theft), a program to combat e-fencing on their website (Finklea, 2012).

Conclusion

Fencing is a crime as old as thieves have been around. By maintaining a vast network, a fence would have multiple opportunities to turn a profit. Anything that has value to someone can be stolen and fenced for profit. As society progresses, so does crime, which also includes organized crime. As technology has progressed, new commodities have been created, and the Internet has created new opportunities to sell them. Fencing is illegal in every country globally, and many laws and regulations have been put in place to combat it.

References

Beattie, J. M. (2004). Policing and punishment in London 1660-1750: Urban crime and the limits of terror. Oxford, Oxfordshire: Oxford University Press.

Finklea, K. M. (2012). Organized Retail Crime. Congressional Research Service. doi:https://fas.org/sgp/crs/misc/R41118.pdf

Lunde, P. (2004). Organized crime: An inside guide to the world’s most successful industry. London: DK.

Maryville University. (2018, August 14). What is E-Fencing. Retrieved December 08, 2020, from https://online.maryville.edu/blog/e-fencing-who-does-it-what-it-is-and-how-to-fight-it/

Office of the Law Revision Counsel. (n.d.). 18 U.S. Code § 2315 – Sale or receipt of stolen goods, securities, moneys, or fraudulent State tax stamps. Retrieved December 09, 2020, from https://www.law.cornell.edu/uscode/text/18/2315

Siegel, L. J. (2019). Economic Crimes: Blue-Collar, White-Collar, and Green-Collar. In Criminology: The Core (Seventh ed., pp. 412-413). Boston, MA: Cengage.

Sutton, M. (2010). Stolen Goods Markets. Retrieved December 08, 2020, from https://popcenter.asu.edu/content/stolen-goods-markets-0