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January 23, 2013 SUBSCRIBE

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Game Stop to close more stores and eliminate the Vice President of LP position 
With the game world going mobile and Angry Birds taking off, Game Stop continues to slide. With plans to close more stores this year worldwide and they are eliminating the Vice President of LP position more LP cuts may be in the near future as the two blood letting months of Jan. and Feb. make their marks.

LPRC Survey Shows Continued Market Shift to IP Video Surveillance in Retail with Intelligent Video Analytics and Business Systems Integration as Driving Trends The survey, commissioned by Axis in October 2012, shows the increased adoption of IP-based video surveillance technology by retail organizations and their growing interest in cross-functional uses of digital video systems, such as video analytics and point of sales (POS) integration for improved sales, marketing and operations. All companies surveyed currently use video surveillance in their stores, with nearly 64 percent of stores having some form of IP-connected system. This survey followed a similar LPRC study from 2010, which reported that only 31.3 percent of respondents had IP cameras or a combination of IP/analog in their stores. Additionally, the use and awareness of intelligent applications for purposes beyond security and LP has grown. (Source

UK retail crime up 15.6% last year costing $2.5B U.S. with e-crime now being the most costly form of retail crime  Retail crime against UK's stores and retailers has soared by 15.6 percent in a year to 1.6 billion pounds or $2.5B U.S.. Incidentally, fewer crimes are being reported to police. The 1.6 billion pounds or $2.5B U.S. covers retail crime of all types and includes the value of goods stolen and damage done plus the money retailers spend on prevention. The survey indicates that the retail sector as a whole suffers 2 million of these shoplifting incidents each year involving around 200 million pounds worth of goods. The average value of goods stolen in each offence has risen 28% to 109 pounds or $172.82 U.S. British Retail Consortium Director General, Helen Dickinson, said: "Systematic targeting of higher value goods by organised criminals is pushing up the cost of retail crime but the proportion of shoplifting incidents reported to police has plummeted to just one in eight – highlighting just how much there is to do to build retailers' confidence in the way police forces respond. (Source

Hackers hit 100 Zaxby's fast food stores and get customer credit and debit card numbers  They have 560 stores and would not not describe how the hackers operated or what types of systems were infected. Stores in 10 states – Georgia, Florida, Virginia, North Carolina, South Carolina, Kentucky, Alabama, Mississippi, Tennessee, and Arkansas – were affected by the breach, according to a news release from the restaurant chain famous for its fried chicken. Zaxby's would not confirm that the vandals actually made off with the credit and debit card data, but it said it would install additional security measures at its locations. (Source

J Crew continues to fly with Mrs. Obama wearing their clothes 
With great sales numbers its wonderful having the First Lady and her daughters wearing your clothes. Must be nice having the White House as an advertisement.

Dollar General to open 635 new stores in 2013 and add 6,000 new jobs - and that means at least 5 or 6 new LP Jobs  Dollar General has big plans for growth in 2013 with the creation of 6,000 new jobs and the planned addition of 635 new stores and 550 relocations. With the addition of these jobs in 2013, Dollar General will have created approximately 30,000 jobs in the last six years. (Source

Verizon Data Breach Investigation Report says Cyber attacks of all forms will continue to pose a threat to organizations this year  The Verizon report noted that 90 percent of threats this year will be in the form of authentication attacks and failures. But organizations should also prepare for any continued espionage, Web app exploits and social engineering that cyber attackers can launch at any time. (Source

Botnet takedowns drop spam to only 72% of all emails sent worldwide 
The fall is relative of course; even with an eight-point drop, spam continued still accounted for a staggering 72 percent of all email during the year, equivalent to tens of trillions of messages moving uselessly and malevolently across the Internet every year. In terms of distribution, China heads the table with one in five of all spam messages sent, ahead of the US with 15.6 percent; Latin America and Europe both dropped. Asia as a whole now accounts for half of all jump email. Arguably, the disruption of botnets - the platform used to send most spam - has probably had a larger effect, with the downing of several large distribution networks coinciding with the start of spam's decline in 2010. (Source

Privacy Visor - a way to foil face-recognition cameras.  Isao Echizen from the National Institute of Informatics in Japan is hoping his new idea with allow the wears the enjoy anonymity once again. The visor has a near-infrared light source that won't affect the user's vision, but will mess up security cameras by creaing noise that prevents computer vision algorithms from being able to recognize a face. (Source

Pharmaceutical cargo thefts down in 2012 according to FreightWatch International Report.  The report indicated that 30 pharmaceutical cargo thefts last year averaging $168,000 were down from an average dollar theft of $555,000 the previous year. Of the 30 pharmaceutical thefts in 2012, seven occurred in Texas, primarily Houston; four occurred in Georgia; while Florida, Michigan and New Jersey had three thefts each. (Source

Identity theft protection of little value according to Consumers Report. 
Nearly 50 million people have subscribed to the service of identity theft protection companies, many of whom have been hit with charges of misleading practices and false claims. Consumers spent $3.5 billion last year on trying to protect their credit. The use of fear tactics are used with some tricky math to make the consumer believe the threat is at their doorstep. Experian Protect MyID stated that id theft is the fastest growing crime and 765,000 households were hit, which would make your realistic chance of being a victim about 1%.

The number of reported retail thefts fell about 14 percent in 2012 in Orland Park, ILL due to increased police efforts & now they're creating a new specialist position to work with retailers year round  Retail thefts spiked 10 to 15 percent from 2010 to 2011, he said, which motivated the department to boost its focus on halting those crimes in 2012. The number of reported retail thefts fell about 14 percent in 2012, down to 684 incidents from 798 the year before, according to 2012 Illinois Uniform Crime Reporting statistics compiled by the department. Total thefts fell about 16 percent to 1,298 in 2012 from 1,548 in 2011. Last spring, the department conducted its own targeted retail-theft operation at major shopping spots in Orland Park. To continue the push against retail theft, McCarthy said later this year he also plans to create a specialist position for an officer who will be responsible for visiting every retail establishment in town to help managers protect the stores and their customers from crimes. (Source

Cargo theft down in year of key arrests in pharmaceutical industry
The protections the industry has put in place has turned theft from a crisis to a concern in the U.S., with the value of losses last year being only about 4.4% of what they were just two years ago. According to the 2012 FreightWatch International 2012 US Cargo Theft Report, the pharmaceutical industry last year saw 30 reported cargo thefts with an average loss of $168,219. Last year, the average loss was more than $555,500, and in 2010, losses were the highest across all categories, averaging $3.7 million per incident. Of the 30 pharmaceutical thefts in 2012, 7 (23%) occurred in Texas, primarily Houston; four (13%) occurred in Georgia; while Florida, Michigan and New Jersey had three thefts each (10% each), the report said. (Source

String of "smash and grab" burglaries hit North Jersey this past weekend 
The 10 burglaries and two attempted break-ins in New Milford, Garfield, and Clifton all occurred sometime between Saturday night and Sunday morning. The robbers shattered glass doors to gain entry and then took money from cash registers. "It’s unusual to have that many retail burglaries at one time,’" the New Milford Police Chief said, noting that the Bergen County Sheriff’s Department is helping in the investigation. (Source

Man Arrested on Theft Charges; Suspect in Murder 
According to state police, a man arrested in Hazleton, Pa., on retail theft charges is also a suspect in a murder case in New Jersey. Troopers said Cruz Martinez Jr., 41, of Hazleton was arrested Saturday attempting to steal a television. Troopers said Martinez made bail on the theft charges and then was re-arrested by police. (Source

Teenager sentenced to 20 years of hard labor in prison for shooting at the Mall of Louisiana 1 year ago  Judge Trudy White sentenced Johnny Williams, who was 17 at the time of the shooting, after Williams pleaded guilty to two counts of attempted first-degree murder. Williams was accused of firing into a crowd at the mall on Jan. 7, 2012 and hit two teens. (Source

Montana family added $70 million in bogus charges to phone bills. 
The lawyer for a Montana family accused of cramming $70 million in bogus charges on phone bills nationwide says his clients followed industry standards. The Federal Trade Commission accuses Steven Sann, his wife, son and accountant of running companies that added the unauthorized charges to customers' phone bills since 2008. The commission is asking a judge to force the Sanns to stop operating and to freeze their assets. (Source

O’Reilly’s Auto Parts store in Dayton robbed at gunpoint. 
At 9:30 pm as associates were preparing to close, a single gunman entered the O’Reilly Auto Parts store in Beavercreek, Ohio demanding money. No information has been released on how much money or merchandise was taken, but no injuries were reported. (Source

Miami Beach Verizon cell phone store smashed.  Thieves first tried to use a chain to pull the doors open. When that didn’t work they just backed the truck right through the doors. Two suspects went on a spree grabbing what they could. A day ago a very similar cell phone robbery also occurred in North Miami. (Source

Alert Walmart loss prevention catches a “Top 5 most wanted” fugitive in Boardman, Ohio.  Jason Sitnic was wanted by the U.S. Marshals Office on burglary charges, he just happened to show up at the wrong Walmart. A Walmart loss prevention officer noticed a suspected shoplifter from a previous case in the store, turned out to be Sitnic. The officer confirmed the man’s identity on the U.S. Marshals website and contacted the Boardman Police. Sitnic attempted to run from police, but was tazed outside the Walmart store. Found on him was a stolen credit card used to purchase a $500 gift card. (Source

McDonald's installs a DNA deterrent spray against thieves that remains on clothes for up to six months  McDonald's is installing a spray in more than 700 stores which covers thieves in DNA linking them to a specific crime for several months in Australian stores. The fast food giant is taking the drastic action following a spate of robberies in its Australian outlets over Christmas and New Year. The burger chain has linked with up with UK security firm SelectaDNA and will now install the system which covers thieves with the invisible, non-toxic spray in all its 780 outlets across the country. (Source

Strong arm robbery of Girl Scout cookie money at a Pathmark Store in Philadelphia.  Girl Scouts selling cookies in the front of a Pathmark Grocery store in Berwyn, PA had a frightening experience. A man walked up to the 4th grade Girl Scouts, reached into the cash box and grabbed $20; the young girl immediately closed the box and the suspect ran from the store. (Source

Quarterly Same Store Sales Results

Tuesday Morning 2Q up 5.6% with net sales up 4.5% but a net loss of $21.5M
Ahold U.S. 4Q up 2.8% with total sales up 7.5%



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Axonify - Read how Pep Boys reduced their shrink by 55% by overhauling their LP awareness program. Download.

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2012 Thought Challenge Awards Committee

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Axonify. Read how Pep Boys reduced their shrink by 55% by overhauling their LP awareness program. Download.

We are requesting your nomination(s) for the LAAORCA Investigator of the Year. Please download form at

LAAORCA is currently accepting nominations for Industry and Law Enforcement investigators of the year awards. We are asking that you nominate exceptional diligence, tenacity and results that made an impact in the area of Organized Retail Crime.

There is no limit to the number of nominees for each award. LAAORCA members as well as Non-LAAORCA members are eligible for these awards. Events for which the nominees participated must have occurred between January 1st and December 31 (2012). Due to the nature of investigations, leeway of 90 days before and 30 days after those timelines will be considered. Award Nominations cut off is February 7th, 2013.

The following criteria for the awards will be considered:

Industry Investigator of the Year - This award is bestowed upon a non-law enforcement investigator (private sector) for their excellent investigative skills and outstanding performance that reflects the intent and mission of LAAORCA. The nomination must be based on the investigators personal achievement not that of task force or team.

Law Enforcement Officer of the Year - The award for Law Enforcement Officer of the Year is based on the recipient's investigative pursuit, professional skills, and overall impact made toward the reduction of organized retail crime. The nomination must be based on the investigator's personal achievement not that of task force or team.

Member of the Year Award - The Member of the Year Award honors a LAAORCA member who goes the extra mile for the association. This member has dedicated time and effort in exemplifying and furthering the organizations intent and mission.

Nomination Procedure:

Award nominations must be completed in 500 words or less and submitted on the approved nomination form (word document). Please title the form to which you are nominating!!! Do not include photographs, newspaper articles or any other supporting documentation. Do not send nominations as a pdf.

Nominations on approved word document must be submitted via E-mail by February 7th, 2013.

Winners will be recognized at the conference!

Send your nominations Questions call 213-996-4288.




Woman shot dead in West Miami-Dade police shooting headed retail theft ring
The unarmed West Perrine woman fatally shot by police after a car chase earlier this month was the ringleader of a group of shoplifters who targeted Walgreens and CVS stores, swiping medicine and other goods for re-sale at inner-city markets, authorities say. When she was killed, Yolanda Thomas, 34, was out on bond while awaiting trial for organized retail theft. The noose was tightening. One of her cohorts recently pleaded guilty and agreed to cooperate against her, foreshadowing a plan by prosecutors to file a racketeering case. (Source

San Francisco Police bust another electronics fencing operation  San Francisco police have busted what they believe to be a big fencing ring. Smartphones and laptops were among the items police recovered on December 27 in one of the biggest hauls of stolen electronics they've ever seen. The bust was the second huge bust police made in a period of two months. In November, they recovered more than a thousand items worth up to half a million dollars from another fencing ring. Cellphones, laptops, as well as other expensive items were among the goods recovered. Three people were arrested. (Source

Counterfeit ring leader gets 2 years 9 months in prison after hitting Nordstrom, Target, and Fred Meyer  Sophanthavong pleaded guilty last September for his role in printing as much as $120,000 in high-quality fake bills. Prosecutors said the 34-year-old was the leader of a group of counterfeiters that used the fake money to buy goods from retailers including Nordstrom, Target and Fred Meyer. They either kept them or returned them to the retailers for cash, prosecutors said. (Source

Man Responsible For Shoplifting Spree At Walmart: Repeated Television Theft 
Matthew Colleluori, 33, was arrested Tuesday afternoon, after attempting to steal his fifth big-screen LCD television from the Marple Crossroads Center Walmart. (Source

Nashville woman arrested for shoplifting $5000 of merchandise from the mall at Green Hill.  Police arrested 41-year-old Charmette Pitts as well as two other suspects in Nashville following a search of her. During the search they discovered over $5000 of merchandise. Pitts had stolen $1000 worth of items from Victoria Secret, $1000 worth from Kate Spade, $500 from J Crew and $3000 worth of products from Burberry. (Source

Vacuum Cleaner thieves apprehended at a Alton, IL Walmart 
Matthew McDonough and Wayne Sprinkle were arrested on theft charges of $798 dollars of merchandise, Sprinkle also had a bottle of medication called suboxone which he did not have a prescription for. McDonough was in the store last week and pushed out a shopping cart with two sets of headphones and a high end vacuum cleaner. He got away. McDonough returned to the store two days later possibly to hit again but was observed by Loss Prevention who contacted police. Following the apprehension by police, a search of McDonough’s car revealed one pair of the headphone. (Source


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Vendor Spotlight

MacKay Leverages Axonify to Deliver Learning to Employees
in an Innovative, Engaging Way

Making learning fun, personalized and engaging with bite-sized content delivered every day

WATERLOO, ON, January 22, 2013 – Today, Axonify Inc. announced that MacKay LLP, a leading accounting firm in Western Canada has selected its next generation eLearning platform to reinforce employee learning in a fun, engaging and rewarding way. MacKay was looking to drive retention and keep employee knowledge levels current through the everyday delivery of personalized, bite-sized content.

“At MacKay, the development of our people is strategic to our organization’s success and continued growth,” said Jackie Morton, Director of Human Resources at MacKay. “With Axonify, we can ensure that our employees are the most knowledgeable in the industry by motivating them to learn the most current and accurate information to do their jobs in a way that makes the information actually stick.”

Through the Axonify platform, MacKay employees will receive 3 targeted questions a day on topics such as accounting practices, systems and procedures. When an employee demonstrates a knowledge gap in a certain topic area they’ll receive a short training burst to reinforce learning. As knowledge is retained, the employee will auto-graduate to more and more difficult questions with the system identifying and closing knowledge gaps along the way. Employees will be rewarded with points that they can accumulate and put towards both monetary and non-monetary rewards.

“We’re thrilled that MacKay is at the leading edge of thinking about how employees learn and remember complex, frequently changing information,” said Carol Leaman, President & CEO of Axonify. “This application further proves the value of what we’re doing across yet another vertical market,” she added.

“The Axonify solution is at the forefront of how eLearning has to evolve in today’s corporate environment. It is the only solution that we’ve discovered that leverages the latest in brain science by providing short bursts of gamified learning where employees follow their own personalized knowledge path, ” continued Jackie.

Media Contact
Laura Martin
Axonify, Inc.
1 519 585-1200 ext. 203


Thought Challenge

Thought Challenge Review

By Bill Petropoulos
Project Manager
Loss Prevention Foundation

as published on August 7, 2012

Recently, I was asked an intriguing question, "What does courageous leadership mean to you?" To be honest I was surprised by this question. It is not often this question comes up in a conversation, but it should. Our industry is known for having courageous leaders, and there are many. Think about the LP professionals that have made a difference in our industry. Recently an industry leader left us. Fred Wilson was known for his leadership, innovative thinking, and people development style. Think about the LP leaders fighting ORC today; law enforcement partners, LP professionals, solutions providers, industry associations. Think of the leaders in our industry that innovate; Target and their state of the art forensic lab, Ebay and their fraud programs and teams, industry certifications LPQ, LPC, CFI, and CFE, and all the leaders that make a positive difference in their organizations, the industry, and in the lives of their teams. For all of these reasons I decided to submit my perception of what courageous leadership is.

1. Stay Hungry. In the words of non-other than Steve Jobs, "Stay Hungry". Never get comfortable with the current status of the business or personal accomplishments. Before you get comfortable is time to push to the next level.
2. Share the vision. Leadership is having a vision and being able to share that vision in a way that will inspire the team. What is your vision for your area of responsibility? Have you shared the vision in a way that gets your team is excited about the possibilities? Is the team on board? Is it the right vision?
3. Get down to the trenches. More often as we grow and advance in our career, we start to get complacent. We quickly forget how things were in the front lines. A courageous leader in my view will step down in the trenches and stay connected with the reality of the business. Connect with the team, understand the daily challenges, and stay close to the action if you will.
4. Humble. Courageous leadership is not about "I" but it is about "We". Leaders that are not afraid to recognize their team, and put the team first and not themselves.
5. I am wrong. Leaders that are not afraid to say they are wrong or made a mistake, and apologize.
6. Challenge. Leaders that are not afraid to challenge conventional wisdom in a professional and productive way.
7. Passion. Leaders that have passion for the business and expect the best from and for their team.
8. Integrity. Leaders that demonstrate integrity in their daily lives, and pass that strength on to their team.
9. Honesty. Leaders that value honesty and influence the teams to do the same.
10. Being the best. Leaders that develop and train their teams to excel and drive to be number one with the end result in mind.

In the words of Peter F Drucker, "Leadership is not magnetic personality, that can just as well be a glib tongue. It is not "making friends and influencing people", that is flattery. Leadership is lifting a person's vision to higher sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations."

Bill Petropoulos is an executive with 20 years of progressive experience in loss prevention management. Petropoulos is currently with the Loss Prevention Foundation as a Project Manager where he manages various strategies including the newly created "Career Development" project. The Career Development project is a leading concept where Executive Loss Prevention Professionals share their success and career mile stones in order to benefit loss prevention professionals interested in advancing in the industry. Petropoulos has held various executive positions in loss prevention and asset protection, including; store, district, regional and corporate positions. Petropoulos has an Associate’s Degree in Administration of Justice, and is currently working on a Bachelor’s degree in business management. Petropoulos can be reached at or (760) 508-5518.


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World's Simplest Ways to Stay Energized   Some people are as solid as granite. Not only are those individuals rare, but all too often, their seemingly concrete constitution is just a facade. As some level, they've got the same sort of ups and downs the rest of us have. (Earthquakes)

Feeling Stuck? 3 Ways to Get Moving
Just when you felt like you were making good progress, everything comes to a grinding halt. It becomes clearly apparent that what's worked before is  no longer what works today. So you push harder and struggle. (No impact)

Why You're Not a Leader  Everybody thinks they're a leader -- most are far from it. The harsh reality is that we live in a world awash with wannabe leaders. As much as some don't want to admit it, not everyone can or should become a leader. (Character, skill and courage)

How to Hire Leaders  It costs companies a lot of money to search, hire and train new employees, so you want to make sure you hire the right person the first time. One way to help ensure success when you're scouting for talent is to look for applicants who have leadership qualities. (Non-leadership role)

3VR - video surveillance, video intelligence


Listening and hearing what your internal customers are saying is critical if you expect to be successful with any program or project. Oftentimes, the speed of delivery negatively impacts the process of success and keeps us from hearing exactly what we need to hear when we so passionately roll out our programs and projects. After testing and reviewing our plans and being so committed to our beliefs, we oftentimes don't hear our retail partners once we've committed ourselves to a specific path. And sometimes it's not what they say that's important as much as what they don't say or as much as what they quietly say beneath their breath or maybe even how they react. Whenever you're rolling out a new program or project, use those interrogative skills, in a positive way, and read the reactions of your internal customers because they will determine the success regardless of how good it is.

Just a Thought,

Gus Downing

Gus Downing

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