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February 14, 2013 SUBSCRIBE

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News Brief - Sponsored by WG Security Products

Amazon lands top spot as America's most reputable company 
Edging out last year's Apple, Amazon now now has everyone's ear and fingers for that matter, in new Harris poll of 14,000. (Source

New survey by BDO USA, LLP, retail CFOs project a 3.2% increase in total store sales, down from last year's expected 4.5% increase  Following uneven sales results in December and January, retail executives are moderating their expectations for 2013. But still in line with recent projections released by the National Retail Federation. (Source

CEO of SK Foods who paid kickbacks to purchasing officers at Kraft Foods, Frito Lay, and B&G Foods sentenced to 6 yrs in prison and forfeits $3.45M  Convicted of racketeering and price fixing, the CEO of this tomato paste and other processed agricultural products, encouraged his food broker to pay kickbacks and bribes to purchasing officers in return for sales. He admitted that he operated SK Foods as a racketeering organization. At his direction, SK routinely falsified lab results for its tomato paste and ordered employees to sign the documents. U.S. Attorney Wagner said: "Scott Salyer used bribery and fraud to deceive his customers about SK Foods’ products in order to maximize his profits. Over a period of years, he turned his company into a machine of corruption and economic crime." (Source

Best Buy founder may scrap buyout bid-sources 
Founder Richard Schulze instead may line up investors to take a minority position separate from his current 20% stake, as he is the single biggest shareholder of Best Buy stock. He has been unable to get enough support from banks to finance a deal to take it private, three sources said. (Source

Tablets Poised to Become a Key Driver of e-Commerce 
Consumer purchasing on tablets fueling rapid growth for search ads; conversion rates set to eclipse those on desktop computers. Tablets will drive 20% of Google’s paid search ad clicks in the US by December 2013, up from 10.7% in December 2012. And how is the LP industry utilizing Tablets? One retail LP team has taken them to the hilt. (Source

Yesterday's news about Retailers becoming "prime targets" for cybercriminials for the first time is making the news everywhere  For the first time in three years, retailers accounted for the highest percentage of investigations done by the Trustwave, which provides security compliance management services. Cyber criminals are realizing just how fat a target retail represents, said Chris Pogue, Trustwave's director of incident response and forensics. "There are eight to nine million retail merchants in the United States. That's a whole lot of potential targets." As true Loss Prevention or Asset Protection executives are you involved in protecting the enterprise? (Source

The Marketplace Fairness Act of 2013 introduced today 
The bill would allow brick-and-mortar retailers to compete more effectively against out-of-state Internet sellers. This bill is said to resolve the differences in the first three attempts Congress made and looks to have major support from both parties. At the end of the day the consumer will be paying more, the government will get their piece, and the online retailers will have to pay like everyone else. It's time to level the playing field. (Source

GameStop to close 250 stores in 2013 
US video games retailer GameStop is planning to close 250 stores in 2013 but will also open 60 to 70 outlets in new locations. (Source

Security failure costs Stroud Mall $50,000 in legal settlement. 
Mall Security failed to act on a report of a fight that may have taken place at the Stroud Mall in Stroudsburg, Pennsylvania. A Mall Security guard was informed by a kiosk vendor that a fight may occur between three juvenile shoppers. The guard noted the concern of the vendor and walked away. Later, just outside the mall entrance, one of the juveniles was beaten by the other two juveniles, breaking his jaw. The victim’s attorney believes Mall Security failed to protect and react prior to the violence. The jury in Monroe County Court agreed and ordered the mall to pay $50,000 to the victim. (Source

OSHA proposes $55,000 fine at a Forever 21 store in Burlington, Vermont.  
The Occupational Safety and Health Administration has cited retailer Forever 21 with two repeat violations of workplace-safety standards, with $55,000 in proposed fines. The alleged violations occurred in December at Forever 21's store at the Burlington Mall. OSHA said Forever 21 workers faced the hazards of being struck by boxes that fell from piles of stock in the store's back room that were not secured against collapse or displacement. Additionally, the store's emergency-exit route was compromised by boxes of stock narrowing the route to the extent it compromised escape in the event of fire. (Source

Over 1 in 5 UK adults admit to buying counterfeit fashion 
Results of a new survey have revealed that 22% of people have knowingly bought counterfeit fashion items, with a further 10% saying they may have bought a fake item but could not be sure. Obviously reflective of the North American market as well, this type of acceptance and consumer attitude won't help the worldwide battle on counterfeit merchandise. If anything it'll continue to feed its growth. Interesting how we take pride in our "Zero tolerance" areas and merely laugh off how we got a great deal on some name brand merchandise. Meanwhile child labor, employee safety - ie - warehouses burning down killing hundreds, slave labor, and all the injustices continue out of control. (Source

Convenience store employee theft in the UK up 88% in 2012 
According to an Association of Convenience Stores (ACS) survey – staff theft is up by 88 per cent in 2012. ACS Chief Executive James Lowman said: "The significant spike in staff theft is particularly shocking. The reality of theft from criminals who seek out and then a position of trust is particularly hard for retailers to stomach." (Source

Memphis retailer Essex Bargain Hunt stores subject of TV undercover investigators for selling damaged and worn child safety products  A Nashville-based sales company with retail locations in the Mid-South is re-evaluating its inventory control measures after The Action News 5 Investigators found damaged and worn child safety products -- including a recalled car seat -- on its stores' shelves. (Source

FBI busts three NY men for two T-Mobile robberies where employees were tied up  Federal authorities say Carl Williams and a conspirator tied up employees of a T-Mobile store in Linden on Sept. 20 and then robbed the T-Mobile store in Woodbridge on Oct 2. They delivered the stolen phones to a cell phone store in Brooklyn. (Source

Miami Dade Police Officer stabbed by Most Wanted felon in a Walmart parking lot in Texas.  A Miami-Dade police officer was stabbed Monday night by a suspect he was transporting across state lines. Miami-Dade Police were taking Alberto Morales to Las Vegas, Nevada, on a flight from Miami to Houston. The officers noted the suspect acting strangely; bumping his head on the seat of the passenger in front of him, on the plane so they got off the plane, rented a car, drove to Dallas and stopped at Walmart. The Officers were told by the airlines they could not board the plane with this gentleman anymore. When one of the Detectives went inside the Walmart, Morales stabbed Detective Pardinas four times and ran away. Authorities say he stabbed the officer in the back and chest with what police in Texas believe was a broken pair of eyeglasses. (Source

Tempe, AZ Police seized nearly 1800 fraudulent ID’s last year. The use of a fake identification in a college town like Tempe, Arizona is only going to get someone in real trouble. A total of 1800 state identification cards and driver’s licenses from all 50 states, military ids and even Mexican voter registration cards have all been used to access drinking establishments in the Tempe area. Tempe Police actually say the numbers for 2011 were higher, with 2100 phony identifications seized. Many of the fake IDs were purchased online from a now closed internet site based in China. (Source

Two Lord and Taylor Associates assaulted during Yonkers, NY store robbery.  At 6 am, three armed suspects managed to enter the employee entrance door of the Lord and Taylor store. The three smashed out several jewelry display cases but nothing was taken. One male and one female associate were assaulted, suffering minor injuries. (Source

Waffle House in Atlanta charging Customers 20% for Security.  The Waffle House in Downtown Atlanta has hired off-duty Atlanta Police to patrol the restaurant, charging customers an additional 20% for a “Property Management Surcharge”. Some customers failed to notice the sign on the door and notices posted on the menu, some didn’t care, others said they would never come back. The Atlanta property is the only restaurant in the chain with the 20% surcharge. (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

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

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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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IOBSE - Save the date! May 8-10, 2013 Spring Conference. Hosted by Limited Brands in Columbus, OH

2012 Thought Challenge Awards Committee

Northern Michigan University, located in Michigan’s incredible Upper Peninsula, offers one of the only baccalaureate loss prevention management programs in the United States. It is offered completely online and accepts up to 92 transfer credits. An affordable investment into a dynamic and growing profession. Learn more here

The Daily's 2013 Media Kit. New - exciting opportunities. Delivering your brands message every day. Request now.

The Library of Loss Prevention - Search data now...


The 2013 FMI Asset Protection Conference is right around the corner! Don't miss the exciting education and professional development we have planned.


Professional Development Workshops will take place on Wednesday, March 13, 2013, from 9:30 am - 4:00 pm. All conference attendees are welcome and encouraged to attend the workshops after the closing session. Conference attendees will have the opportunity to sign-up for ONE of the workshops listed below during the registration process.

1) Interviewing for Title VII Infractions – Handling Hostile Work Environment Scenarios
Instructor: Bret Ward, CFI, Wcklander-Zulawski & Associates

2) Managing Real Assets with Intentionality
Instructor: Mike Whitehead, Center of Intentional Leadership

3) Developing a Risk Management Program for Your Organization
Instructor: John Bugalla, ermINSIGHTS

4) Open Source Intelligence Investigations
Instructor:  Joshua McAfee, McAfee Institute

*All workshops are eligible for Continued Education Units (CEU's).

Register Today


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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    
Connecticut $54,371,639,518 1.26% $377,500,371 6.35% $23,971,274
D.C. $6,442,777,339 0.15% $44,731,975 6.00% $2,683,919
Florida $282,927,546,331 6.55% $1,964,355,955 6.00% $117,861,357
Georgia $130,324,613,844 3.02% $904,839,188 4.00% $36,193,568
Hawaii $21,625,622,363 0.50% $150,145,932 4.00% $6,005,837

*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.

Boise man arrested in four-year retail crime scheme - aimed at guns  Daniel Hermosillo, 34, of Boise, was arrested Tuesday afternoon following an investigation into retail crime in the Boise area. The suspect has been involved in multiple fraudulent transactions at sporting goods stores beginning in 2009. “The investigation indicates the suspect would commit thefts, then return the items to stores in exchange for gift cards. Those gift cards have been used to purchase multiple firearms over the last several years. The suspect was taken into custody (Tuesday) at 10:00 a.m. as he exited a West Boise sporting goods store carrying a firearm purchased with gift cards,” McClure said in a news release. Officers later obtained a search warrant for Hermosillo’s home -- and recovered firearms he allegedly obtained in the scheme. (Source

St. Louis woman accused of stealing from Sam’s Clubs in 7 states, arraigned in Federal Court yesterday.  Tammy Baggio allegedly stole merchandise from Sam’s Club locations in St. Louis and seven different states and sold the goods online to buyers throughout the U.S. She faces five years in prison and fines up to $250,000. Baggio reportedly would go to Sam’s Club stores, empty a large box with an inexpensive item, then fill the box with electronics, Frontline Pet Products and other pricier merchandise, reseal the box and check out. (Source

One female busted tied to an extensive fraud ring operating in St. George, Ut.
Rachel Ellefson "is tied to an extensive fraud ring" according to St. George police. They've booked her on numerous charges for fraud and are in the process of investigating it further. (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

Vendor Spotlight

QuickClip: Advanced Object Tracking Analytic


Most DVRs, NVRs, and VMS use basic motion detection to send alerts or to create an event that makes it easier to search for a suspect in low-traffic areas. 3VR’s Advanced Object Tracking analytic takes motion detection to the next level. In this video, as part of 3VR’s QuickClip series, we show you how you can use the analytic with forensic search to find the color and direction of a suspect car. The analytic can also be used to search by size, shape, and speed and can also be set up as an alert. This makes it easier to find a suspect or, in the case of the video above, a suspect car. Basic motion detection on a busy street is impractical, so a search must be done manually, meaning, the alternative is to search through hours and hours of video. In the QuickClip video above, a busy street is no problem for 3VR's Advanced Object Tracking analytic when trying to find a suspect car in a matter of minutes.

3VR’s Advanced Object Tracking is a Core Analytic that is an included option on 3VR’s P-Series and X-Series NVR/HVRs and is also available as an option for the S-Series, P-Lite, and VisionPoint VMS.

Watch more videos from 3VR's QuickClip series:

•  Forensic Search Using Motion
•  Demographics Analytic

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

Thought Challenge 

Thought Challenge Review


By Matt McGarrigle
Loss Prevention Lead
Sears Ontario, Canada

as published on October 31, 2012

Leader, mentor and coach are all great terms and there are all kinds of articles to read about these roles in loss prevention. What about teacher or trainer? You can be all three of the above mentioned through your status in the company but does that mean you're a good teacher or trainer? Retail organizations all expect the loss prevention department to show value, what are we doing to address that? Operations are now a strong focus of the loss prevention department in today's age. Why wasn't it before? How many times do you remember being asked? How many apps you have? Or catch anyone today? Is that LP operations?

Training and development within the loss prevention department needs to expand with the right leaders, mentors and coaches who are able to train and teach their teams. Do we have set programs to develop our teams to be operationally strong? In your LP division do you have set champions that can assist you in the training? On monthly conference calls do you have a guest speaker from store operational departments to talk about specific areas of the business that affect shrink? UPC, Invoicing, front end, receiving, claims and inventory departments all are great opportunities for reducing shrink that have nothing to do with apprehensions. Using your people within your district and recognizing them as champions gives them a great opportunity to take pride and help teach your teams expanding their knowledge on business operations. Some say it's up to the LP associate to learn, do we not have an equal responsibility to teach someone trying to learn?

Organizations are now turning to store managers to become loss prevention managers, is it simply because the loss prevention departments haven't changed? If your LP teams were educated in depth about operations through training and development would this be the case? Wouldn't your LP team be better qualified to easily make the transition into an LP manager role? LP managers with no LP experience is this the quick fix?

We've all done the exercise of one story being told to a person outside the room, that person tells the next person and so on. If you're the LP speaker telling all your regional or district LP managers the new programs or direction at the company conference, what parts of the direction didn't reach the stores? And what changed? Maybe we need to look at a complete training tool that reaches all. Train 100% of the entire LP team instead of 20% of your team receiving 80% of the training. Simply put. We in Loss Prevention can't change who we are, but we can certainly change who we can become!!!

Just a Thought


3VR - video surveillance, video intelligence

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Area Asset Protection Mgr Cabela's Various Cabela's
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AP Asst Mgr Cabela's Kearney, NE Cabela's
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Loss Prevention District Mgr Loehmann's Paramus, NJ Loehmann's
Sr Ops Business Analyst - AP Home Depot Atlanta, GA Home Depot
District Loss Prevention Mgr TJMaxx Germantown, MD TJMaxx
Loss Prevention Mgr Sears Tucson, AZ Sears Holdings Corp
Loss Prevention Mgr Sears Thornton, CO Sears Holdings Corp
Loss Prevention Mgr Sears Laguna, CA Sears Holdings Corp
Manager, Shrink Operations Corporate Hoffman Estates, IL Sears Holdings Corp
Security Manager Gateway Casinos Edmonton, AB, Canada Workopolis
Loss Prevention Mgr DC Harbor Freight Moreno Valley, CA Harbor Freight
Loss Prevention Mgr Amazon Seattle, WA Amazon
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Dept Mgr Store LP & Safety Lowe's Cape May, NJ Lowe's
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12 Simple Things a Leader Can Do to Build a Phenomenal Team  Whether you're just starting to hire or expanding your existing team, attracting and encouraging top talent can be difficult. You want to find the best of the best - and find ways to help them thrive in your company. (Happy and successful)

3 Steps to Build the Right Team The question you should be asking is not if you need to build a team, but rather how to build the right team. There are lots of tips, but I use three steps that are critical. (A successful core)

5 Tips for Getting Complacent Employees Urgent The human mind is always urgent. We're always seeking an outlet for our mental urgency, something to believe in, something that gives us purpose. If employees are told they shouldn't, mustn't, or can't, they become urgent about what they cannot do. (Do nothing)

Is Leadership all about Communications? Most of us assume that we are primarily conscious beings with an intellect that plans, weighs objectives and options, and directs action -- like having a movie director sitting in our heads. (Our unconscious)

3VR - video surveillance, video intelligence


Going beyond your job description and taking responsibility for things outside your scope broadens your "runway" and quite frankly we hear that term all the time when it comes to defining an executive's future. It's not the job that's defining you, it's your own perceptions of what you can do that determines how far you go. Opening your mind and embracing what you don't know will allow you to change your own perceptions and thus lengthen your runway. And in today's environment where we've all been stretched, you've got to be focused on the value you're adding to the company you're working for. If you can focus there and be able to specifically list the value you're adding, odds are, regardless of what happens to the company your working for, you'll do great!

Just a thought,

Gus Downing

Gus Downing

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