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February 13, 2013 SUBSCRIBE

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News Brief - Sponsored by WG Security Products

For the first time, the retail industry made up 45% of Trustwave data breach investigations (a 15% increase from 2011) with e-commerce attacks emerging as a growing trend surpassing the amount of point-of-sales attacks. In their highlights report of 450 global data breach investigations retailers are starting to take center stage. They're at the door and trying to break in, ladies and gentleman. The battle is on. (Source

Kohl's leading the way with Digital Tags - Who'll be next? 
Small battery-powered wireless digital price tags on the shelves. Eliminating price tag discrepancies, reducing payroll, and going paperless. It's rather expensive and according to the developer has a two-and-a-half year ROI. A number of grocery retailers in Europe are already there and we will be sooner or later. But Kohl's is leading the way in the states with just having rolled them out. It's an inevitable development that will eliminate hours of mundane audits. (Source

Penney's ups its credit facility to $1.85B with options to borrow another $400M 
Entering its second year of its transformation Penney's is expected to report later this month its fourth consecutive quarter of big sales drops and net losses since it implemented its new pricing strategy. The worry is that Penney won't be able to stem the bleeding of sales in time to finance the transformation of the stores. (Source

Game Over? Why Video-Game-Console Sales Are Plummeting - Here comes the cloud  At a quick glance, it looks like it could be “game over” for the video-game-console business. Sales of consoles in the U.S. dropped 21% in 2012 to just over $4 billion, and figures from the manufacturers of the three top systems were lackluster over the crucial holiday season. Most important, the industry is in the nascent stages of a digital revolution. NPD says sales of digital games grew 16% over the past two years. If you compare the gaming industry to the music industry, right now it’s in a pre-iTunes, pre-Pandora era. Discs are still the primary way people consume this media. Ward says there are a host of technical reasons why people aren’t downloading games or playing them on a cloud-based service yet, but industry observers say it’s just a matter of time. (Source

Stage Stores to close its Regional Operations center in Virginia, 180 positions eliminated.  The consolidation move by Stage is said to reduce expenses and increase efficiency, moving merchandising, planning, human resources and other positions back to the corporate headquarters in Houston. The Houston office will see an additional 75 position created by the move. The Company expects that this consolidation will result in annual cost savings of approximately $5 million. (Source

Toys R Us CEO Gerald Storch is stepping down.  
Toys R Us Inc said today that Gerald Storch, 56, will step down as chief executive of the world's largest dedicated toy retailer, while remaining chairman of the board. The company said it will start a search for a successor. Storch, who joined Toys R Us in 2006 after it was taken private by KKR & Co LP, Bain Capital and Vornado Realty Trust in a $6.6 billion deal, will continue as CEO during the transition period. (Source

Blockbuster to close an additional 164 stores in the UK 
They're in bankruptcy mode in the UK and are trying to sell the rest of the stores. (Source

A number of retailers blame delayed tax refunds for soft sales the last few weeks  Four specific retailers blamed the missing tax refund checks for their current woes and two of them are seeing double digit sales decreases the last 3 weeks.

Executive order on cybersecurity coming, but is it only a 'down payment on legislation'?  Based on various leaked versions of the order, it is expected to put the Department of Homeland Security (DHS) in charge of organizing an information-sharing network in which government would distribute classified, sanitized summaries of intelligence reports about possible cyberthreats aimed at specific targets. (Source

ATM skimming ring hit over 6,000 bank accounts 
Fed's indict two ring leaders on international ring skimming ATMs at banks in New York, New Jersey, Illinois, and Wisconsin. The co-conspirators also installed hidden “pin hole” video cameras on ATM machines that secretly recorded customers’ Personal Identification Numbers (PINs) as the customers pressed these numbers on ATM keypads in order to access their accounts. (Source

Sobeys (grocery stores) Warehouse Workers Strike in Canada 
MILTON, Ontario — More than 400 workers at a Sobeys distribution center here went on strike Monday, saying they were unhappy with terms of a contract offer from the retailer. (Source

Proactive approach to combating Cargo Theft during the long Presidents Day weekend.  Barry Tarnef, the Assistant Vice President and Senior Risk Specialist, Loss Control services, for Chubb’s Commercial Insurance, believes the long holiday weekend is prime for cargo thefts. Here are seven tips to ensure proper procedures are in place to making this coming weekend less profitable for thieves. (Source

Retailers in North Side Chicago warned of suspect passing counterfeit $100's 
The man enters retail clothing stores and attempts to purchase single items of clothing with counterfeit $100 bills, according to an alert from Area Central detectives. (Source

Footlocker store in North Lauderdale robbed, Police still searching for gunman. 
Broward Sheriff's Office is actively searching for a armed gunman who forced the employees to open the safe and had the time to wait for associates to find him two pairs of shoes by specific sizes. The two Foot Locker Associates were unharmed. (Source

DNA helps solve a 3 year old jewelry store robbery in West Hartford, CT.
Santo Feliberty of Springfield, one of three or four men police say burglarized a jewelry store more than three years, thought he was free and clear when U.S. Marshals picked him up last week. The Harstan's jewelry store was burglarized Nov. 10, 2009. Police were notified of a burglar alarm at 3:20 a.m. and five minutes later, when the first officer arrived, the burglars and $51,000 worth of watches and jewelry were gone. The state crime lab has been dealing with a substantial backlog of cases, and the evidence submitted shortly after the burglaries is now getting processed. (Source

Supervisor at Bealls Outlet store in Port Richey, FL arrested for $2k in phony refunds.  Aimee Mayler was under investigation by Loss Prevention for conducting fraudulent refunds totaling nearly $2300 during the last month. Pasco County deputies arrested Mayler who admitted to the thefts. She has been released on bond. (Source

Serial shoplifter busted in Ontario, Canada 
Lorelei Trudeau has a real problem with shoplifting. Her condition is so bad that when she was approached by staff members of a New Sudbury Centre jeans store about unpaid items she took Nov. 17, she fled without her children's stroller, which contained the concealed merchandise. Hitting stores all over Sudbury this 34 yr-old now faces 18 charges. (Source

Walmart shoplifters in Prescott, Arizona tried to escape from jail. 
Stephanie Isban and Michael Brandon were observed stealing over $1000 in merchandise from the Prescott Walmart, but somehow made a quick escape from the store. Police found the car later driven by Isban, she was driving while impaired from narcotics. Both suspects were returned to the Yavapai County Jail where Isban kicked a deputy and then attempted to escape the holding area. Isban was caught almost immediately. (Source

Youngstown Macy’s shoplifter charged with $13,000 in damages during apprehension. The Macy’s in the Southern Park Mall had a shoplifting incident last Friday that turned into big problem for the accused Michael F. Lewis. Lewis has now been charged with $13,261.98 of vandalism, following his fight during his apprehension that destroyed several glass displays and mannequins. A total of 355 items of merchandise from the areas of the disturbance were possibly covered with shards of glass and will not be sold. Michael F. Lewis is charged with vandalism, intimidation, obstructing official business and theft. (Source

Senior LP executives - We'd like to hear from you
If you are a senior Loss Prevention executive in retail and have any IT security responsibilities we'd like to hear from you and find out exactly what they are. This is an informal study meant to determine exactly where we are today and where we might be heading. So anyone that is a senior LP executive within the traditional retail model and has components of the IT security areas let us know. Even if it includes your involvement in the mobile roll-outs, tablet roll-outs, privacy issues, internal threat analysis. We will not share names or company identities but would like to present our findings from an industry wide prospective. Contact me directly at


Axis Communications

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University of Florida, Security Research Project - Request the 2011 National Retail Security Survey: Final Report. Email Dr. Hollinger. You must send your name, title, company and address to receive password to open the .pdf file.



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Free Webinars to
Combat Organized Retail Crime

 How to Pass State ORC Legislation
First Topic

Rancho Cucamonga, CA – February 12, 2013, a major source of information, education and collaboration in combatting organized retail crime (ORC), will host a series of free webinars beginning February 28 to better equip everyone engaged in combatting ORC. The semi-monthly events will feature subject matter experts who will cover current topics such as ORC trends, theft methods, prevention techniques, investigations, legislation, and how to work with law enforcement.

The first webinar will feature Michigan State Representative Joseph Graves who sponsored two successful 2012 Michigan House Bills, 5843 and 5902, that make organized retail crime a felony and punishable by up to five years imprisonment, a maximum fine of $5,000, or both.

Based on his successful bills, Graves’ presentation will provide practical information on crafting and passing state ORC legislation including drafting effective but acceptable language, garnering support and overcoming challenges and opposition. In addition, he will provide suggestions on how webinar attendees can approach and work with legislators to generate similar legislation.

“Organized retail crime is a growing menace to our economy and society,” said Rep. Graves. “It was my duty to sponsor legislation to protect retailers and law abiding citizens from these emboldened thieves. I hope to be able to help others duplicate my success across the nation.”

Adel Sayegh, founder of and president and CEO of Universal Surveillance Systems, said “We are fortunate to have such a knowledgeable leader not only as our first guest on our webinars, but on our side fighting against ORC.”

The webinars are open only to those engaged in combatting ORC including loss prevention professionals, law enforcement officials, legislators, prosecutors, judges and security experts.

To register for the upcoming February 28 ORC webinar by Rep. Graves, visit or call 1-800-488-9097.

The mission of is to fight organized retail crime through information sharing, education and advocacy, while strengthening the cause of loss prevention on a global level. provides a comprehensive centralized resource on ORC for anyone requiring current news and information. It is supported by an advisory board made up of ORC authorities Nelson Harrah, GAP, Inc.; John Morris, Macys; Mark VanBeest, JCP; David Nance, Sabre, Inc.; Scott Sanford, Barnes & Noble, Inc.; Frank Muscato, The Muscato Group; Jason Gonzales, Rite Aid; Dennis Dansak Sr., The Kroger Co.; and Lauren Cunningham, eBay.


The mission of is to fight organized retail crime through information sharing, education and advocacy, while strengthening the cause of loss prevention on a global level. provides a comprehensive centralized resource on ORC for anyone requiring current news and information, such as loss prevention professionals, law enforcement officials, legislators, prosecutors, judges and students writing research papers. Current major areas of emphasis are up-to-date news article postings of ORC crimes and educational webinars by ORC experts.

Sponsored by Universal Surveillance Systems, LLC, is a non-profit, non-commercial site that does not endorse any company or product. As a collaborative resource, welcomes submissions of articles and papers relating to ORC by those focused on fighting ORC. An advisory board of ORC experts provides input and direction to the site. There is no cost to utilize the site, but only pre-qualified users can access restricted sections to prevent sensitive industry information from being disseminated to the general public.

About Michigan State Representative Joseph Graves:

Elected to the Michigan House of Representatives in February 2012, Joseph Graves serves the 51st Michigan House District. His background includes service in the U.S. Army, 32 years as an engineer for GM, and current owner of J&D Select, a real estate, property management and engineering consulting business. He’s earned a bachelor's degree from Sienna Heights University and an MBA from Baker College.

Rep. Graves serves on the Michigan House Committees on Energy and Technology; Health Policy; Military and Veterans Affairs; Local Government; and Criminal Justice.

In 2012, Rep. Graves sponsored two Michigan House Bills, 5843 and 5902 that were signed into law by Governor Snyder. H.B. 5843 created the “Organized Retail Crime Act”, while H.B. 5902 amended the Code of Criminal Procedure to include a violation of the Organized Retail Crime Act in the sentencing guidelines. These House Bills make organized retail crime a felony and punishable by up to five years imprisonment, a maximum fine of $5,000, or both.

As a result of his dedicated work to combat organized retail crime, Rep. Graves was named Legislator of the Year for 2012 by the Michigan Retailers Association in January 2013.

For more information, contact:

Scott Richardson
Corporate Communications Manager
StopORC Foundation



Organized Retail Crime:
Estimated Lost Sales Tax Revenue by State

The Food Marketing Institute has released a report containing Organized Retail Crime: Estimated Lost Sales Tax Revenue by State. Over the next several days the Daily will publish these figures. Stay tuned to see your state estimate!

State Annual Sales - Retail Trade and Food Services (2009) State % of Annual Retail Sales Est. Amount of Stolen Merchandise Attributed to ORC (by State) State Sales Tax Rates Est. Lost Sales Tax Revenue Attributed to ORC (by State)
United States $4,320,920,742,646   $30,000,000,000    
Alabama $65,008,159,844 1.50% $451,349,356 4.00% $18,053,974
Arizona $93,052,595,234 2.15% $646,060,880 6.60% $42,640,018
Arkansas $38,330,197,315 0.89% $266,125,205 6.00% $15,967,512
California $519,572,073,157 12.02% $3,607,370,540 7.50% $270,552,791
Colorado $75,326,144,250 1.74% $522,986,757 2.90% $15,166,616

*Note: States with no state sales tax were omitted (AK, DE, MT, NH, and OR)

For more information on organized retail crime, visit FMI's issue page.

Boulder, Colorado area couple behind bars for stealing thousands from Walmarts with their children.  Ricky Woodall and Christina Rogers-Woodall are accused of stealing thousands of dollars in merchandise from Walmart stores in Longmont, Loveland and Lafayette. The Woodall’s would bring their children ages 9, 12, and 17 to steal DVD’s, video games and household items, placing the items into used Walmart bags and pushing the cart out the front door. (Source

Police alert - ORC couple hitting Seaside, Oregon area retailers with fraudulent checks and bad credit cards  A female described at white in her mid to late 20’s, skinny, with dark hair showing blond highlights and a a white male 6-foot with scratches on his face and neck wearing a stocking cap have been hitting stores in the area. The vehicle involved in the Seaside activity is described as a white 2012 Chev Malibu four door Oregon License 753FTJ. The vehicle is a rental car out of Tualatin Oregon. (Source

Do you have an ORC case to share? Publishing it educates the LP & retail community
which might fuel even more jobs and funding.
Share your ORC news and help the industry grow

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Thought Challenge 

Thought Challenge Review

Reducing Labor Expense, an Ally to Loss Prevention Initiatives

By Adam Smith, CFE, CFI
Senior Regional Asset Protection Manager
Winn Dixie Stores

as published on October 30, 2012

At the conference room table, everyone has an agenda. Resources are limited, and everyone needs some portion of them to affect change in their area of the business. In most cases, initiatives with the most significant financial impact are awarded these resources. Most organizations are focused on growing sales and cutting expenses to an extent far greater than the impact of inventory shrinkage.

However, if we take a closer look, we may be ignoring an ally. Proactive Loss Prevention departments routinely examine and refine controls and processes. These activities may have a direct impact on the labor required to perform them. In many cases, there may be labor savings. If so, it may make sense to include them in a formal presentation.

Retail salaries can exceed 10% of sales and account for one of the leading expenses for a retail store. When salaries become part of the conversation, they can add a significant financial impact to an inventory shrinkage initiative, which is a much smaller expense at 1.5% of sales (NRF average). The same could apply to retail utilities or any other positive impact to the business. On the other hand, there may be negative impacts which would reduce savings from an initiative. Nevertheless, Loss Prevention initiatives that positively impact multiple areas of the business may warrant more attention from the organization.


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Agreeing to give a reference on someone is a serious obligation and responsibility because that executive is now depending on you to provide a favorable account of their work performance. Most often executives who ask you don't ask what are you going to say about my weaknesses or mistakes. They naturally assume that your long-term friendship and desire to see them succeed will rule the day and in some cases they're legitimately right. However, when making this commitment you also have a responsibility to make sure you don't overextend your support and help put them in a position to fail. And if the executive conducting the reference is extremely thorough, then you will be reviewing the executive’s weaknesses and strengths.

Just a thought,

Gus Downing

Gus Downing

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