How PayPal uses 'deep learning' and detective work to fight fraud
Hui Wang has seen the nature of online fraud change a lot in the 11 years she's
been at PayPal. In fact, a continuous evolution of methods is kind of the nature
of cybercrime. As the good guys catch onto one approach, the bad guys try to
avoid detection by using another. Today, said Wang, PayPal's senior director of
global risk sciences, "The fraudsters we're interacting with are... very unique
and very innovative. Our fraud problem is a lot more complex than anyone can
think of." In deep learning, though, Wang and her team might have found a way to
help level the playing field between PayPal and criminals who want exploit the
online payment platform. Deep learning models are good at identifying the
complex patterns and characteristics of cybercrime and online fraud.
Machine-learning-based pattern recognition has long been a major part of fraud
detection practices, but Wang said PayPal has seen a "major leap forward" in
its abilities since it began investigating precursor (what she calls
"non-linear") techniques to deep learning several years ago. PayPal has been
working with deep learning itself for the past two or three years, she said.
Some of these efforts are already running in production as part of the
company's anti-fraud systems, often in conjunction with human experts in what
Wang describes as a "detective-like methodology." The deep learning
algorithms are able to analyze potentially tens of thousands of latent features
(time signals, actors and geographic location are some easy examples) that might
make up a particular type of fraud, and are even able to detect "sub modus
operandi," or different variants of the same scheme, she said.
Alibaba Answers Counterfeit Claims
Alibaba Group Holding Ltd. is under fire for allowing counterfeit goods to be
sold on its websites and for permitting companies to make deceptive claims in
their sales pitches to consumers. The company has since issued statements and
made changes in the leadership of its e-commerce shopping sites to show it is
taking the issue seriously. The Chinese government issued a paper alleging, in
addition to allowing the sale of counterfeit goods, Alibaba ignored the practice
by some vendors of faking transactions to make their sales volumes appear higher
and did nothing to stop merchants from using tactics such as false and
misleading advertising. Alibaba also said it welcomed additional supervision, as
well as greater efforts by law enforcement to crack down on fakes. Alibaba and
the government agreed to work together to combat counterfeits.
'Smoking Hole' Cybersecurity Attacks Pose New Threat to Retailers
Following a recent series of data breaches targeting both large and medium sized
retailers, many retailers are investing in technology that will help encrypt
credit card data at the point of sale. Although a meaningful way to reduce risk,
endpoint encryption is not the silver bullet solution hoped for by many
retailers. We're witnessing a new type of cybersecurity incident we're calling
"Smoking Hole Attacks". Smoking Hole Attacks are designed to destroy a
company's whole IT infrastructure, leaving nothing behind, potentially putting
the company out of business! These attacks will steal and erase data, knock
critical IT services offline, and severely impact the victim organization's
entire ability to operate. For retailers who don't have the skills and
technology to detect and prevent a Smoking Hole Attack, the best defense is to
plan for the worst contingency and have a way to restore critical systems. Your
best bet is to implement strong detective controls that offer defensive
capabilities to deter attacks and identify suspicious activity on your network
before it leads to a Smoking Hole.
Can software-based POS encryption improve PCI compliance?
In the wake of the recent Verizon report that shows that 80 percent are out of
PCI DSS compliance between audits, some vendors are urging the PCI Council to
consider approving software-based point-to-point encryption, in addition to the
current hardware-based standard. PCI-approved, hardware-based P2PE allows
merchants to drastically shrink the systems subject to compliance, reducing both
risks and costs, and will make it easier to stay compliant. According to Oder, software-based
P2PE, combined with tokenization, is a secure alternative to hardware-based
encryption, and should be allowed under the PCI DSS standard.
Ransomware: Pay it or fight it?
Ask security experts what to do when hit with ransomware - the sophisticated
malware that infects a device or network, uses military-grade encryption to
restrict access, and demands payment for the decryption key - and you'll
typically get the same answer: "never pay the ransom." But for many, that's
simply not an option. For example, last November an employee in the Sheriff's
Department in Dickinson County, Tenn., accidentally clicked on a malicious ad
and exposed the office network to the infamous CryptoWall ransomware. Detective
Jeff McCliss told local News Channel 5 that CryptoWall had encrypted "every sort
of document you could develop in an investigation," such as witness statements
and evidence photos. Even after consulting with the FBI and U.S. military,
McCliss told the news station that the only solution was to pay the $500 to the
cybercriminals to get their files back.
Conference Date Change - Now held Sep. 30 - Oct. 1, 2015
The International Supply Chain Protection Organization would like to
announce the date change for 2015 ISCPO Conference. Mark your calendars for
September 30th and October 1st, 2015. The two day cargo theft summit will be
addressing topics related to supply chain security, industry theft trends and
investigations. We are currently seeking recommendations for guest speakers
and topics specific to Loss Prevention and Security in the supply chain. If
you would like to make a recommendation or would like to speak on a specific
industry topic, please contact us. The conference will again provide a great
venue to network with global industry peers, law enforcement, and select
vendors. ISCPO members and other interested parties should consider attending.
The conference will be held once again in Dallas, Texas at the Scottish Rite
Children's Hospital Conference Center (http://www.tsrhc.org/).
Submit your topics
and speaker recommendations to Byron Smith.
International Expansion Still High on American Retailers' Agenda
According to CBRE Research's annual "How Active are Retailers Globally?" survey,
international expansion remains high on the agenda for retailers in 2015, in
spite of uncertain economic prospects and cost escalation. American retailers
are among the most active, accounting for 16 percent of brands looking to expand
overseas - tied with Germany and the U.K. and followed by Italy with 11
percent. Of those Americas brands, 43 percent are looking to Japan, China and
Hong Kong as a top destination for expansion.
Couche-Tard to buy 21 stores, 151 dealer sites in U.S.
Alimentation Couche-Tard Inc. is purchasing 21 stores, 151 dealer fuel
supply agreements and five development properties through its Circle K Stores
Inc. subsidiary from Cinco J Inc. The 21 stores and development properties are
located in Texas, while the 151 dealer fuel supply agreements are located in the
Texas, Mississippi and Louisiana.
IKEA bans 'Hide & Seek' in
European stores after tens of thousands conceal themselves in
IKEA has stopped plans by thousands of people to play hide-and-seek in
its maze-like stores in the Netherlands. After a spirited round of the
children's game attracted hundreds of people to a Belgian Ikea outlet last
summer, the world's biggest furniture retailer has forbidden similar events in
several of its Dutch stores, citing safety reasons. More than 32,000 people have
signed up via Facebook to play hide-and-seek at Ikea's Eindhoven store, while
19,000 registered interest in a game in Amsterdam and 12,000 for one in Utrecht.
"It's hard to control," Ikea Group spokeswoman Martina Smedberg said by phone.
"We need to make sure people are safe in our stores and that's hard to do if we
don't even know where they are." People were hiding in fridges, under stuffed
toys, under Ikea's blue shopping bags and even in the storage space under beds,
said De Rijck, a regular Ikea shopper.
McDonald's workers in 19 cities are getting ready to sue over 'workplace
hazards' McDonald's workers in 19 cities have filed complaints
over burns from popping grease, a lack of protective equipment and other
workplace hazards, according to labor organizers. The complaints are the latest
move in an ongoing campaign to win pay of $15 an hour and unionization for
fast-food workers by publicly pressuring McDonald's to come to the bargaining
Most Companies Expect To Be Hacked In The Next 12 Months
10 Tips to Mitigate Data Breaches
Opinion: 'Companies have little incentive to invest in better cybersecurity'
Burlington to open 25 net new stores in 2015
Quarterly Same Store Sales Results
DSW Q4 up 7.6% - full year comp's up 1.8%
Burlington Stores Q4 up 6.7% - full year comp's up 4.9% with net sales up 8.7%
446 delegates, 337
retailers, 109 vendors, 30 internationally acclaimed speakers,
3 presentation stages...
Retail Fraud - London; April 23,2015
This year's Retail Fraud - London is the "must
attend" event of the year for anyone involved in retail fraud and
loss prevention. Not only are we continuing to provide the very
highest calibre of thought leadership, discussion and networking
opportunities, but we are pulling in decision makers from outside of
the LP department, and encouraging them to join our core audience.
● Stand shoulder to shoulder with the top people in loss prevention;
delegates, speakers and vendors
● With more than 82% of the top 250 UK retailers attending last
year, the show is the number 1 in Europe for retail fraud and loss
● A great opportunity to network in pleasant, informal surroundings
● Share experiences and gain insights into how to best meet your own
● See the latest technology, talk to the people behind it and get
● Stimulating agenda provides the latest in thought leadership and
best practice in dealing with the challenges we are all facing in
Interested in selling to the LP
Community? Be at Retail Fraud - London!
Retail Fraud is the biggest LP conference in Europe bringing
together the largest number of senior LP decision makers to network,
seek out new technologies, discuss best practice and form new vendor
We are the only conference that brings together online and offline,
cross departmental decision makers and leading experts and academics
from around the world and provide FREE entry to all
delegates, FREE refreshments throughout the day and an
excellent lunch, free of charge.
No wonder it is great!
And this year, only exhibiting vendors will be given access.
There are no vendor delegate passes available.
If you are serious about selling to the LP community you should be
at Retail Fraud - London. Don't miss out. Call Client Services on
0207 100 3 999 for further details or email
All the News - One Place - One Source - One
The D&D Daily respects your time & doesn't filter retail's reality
White Paper - Specialty Beauty Retailer Offender, Shopper, Employee Feedback
Study: LM Tag
The Loss Prevention Research Council (LPRC) conducted a series of in-person
survey interviews in the Gainesville, FL. A specialty beauty retailer's StoreLab
in order to understand the impact of the LM Tag on associates, shoppers and
shoplifters. This research focused on the LM Tag's impact on protecting high end
fragrances, one of the specialty beauty retailer's high loss products.
93% of customers rated the LM Tag's effectiveness above a 5, indicating they
think the LM Tag is effective at preventing theft.
90% of the associates surveyed agreed that they like the LM Tag and that it is
easy to apply.
In this study, all 7 shoplifters indicated they would not attempt to steal a
product that was protected by the LM Tag.
Click here to download the complete report.
2015's Let's Get LP Social
We still want your Group LP Selfies
- So keep them coming retail LP teams!
Submit a group selfie of you and your LP team and you could get a plaque. Please
submit a high resolution photo (300 dpi) and logo at 5" wide for your printed
plaque, and if you have a tagline or slogan either from your team or from the
company, please send it to us as well for inclusion on the plaques and here on
Click here for more details.
LP Team Group Selfie
Showcasing each team in order!
Team - Your Pride
Kroger Loss Prevention Team
Assets, Driving Sales"
*Originally published on September 25, 2014
View all the selfies
Turning Point Justice is a rapidly growing cloud technology company that
provides collaborative solutions to retail theft that cultivate positive change
through restorative justice. Lohra Miller, CEO, Turning Point Justice,
tells us about the Cloud Justice Platform, which provides consistent, quality
reporting based on retailers' individual policies and procedures, while
Barbara Staib, Director of Communications,
National Association for Shoplifting Prevention, tells us how the proactive
approach of TPJ's Court Alternative Program is a win-win-win for retailers,
their communities, and the offenders who are given the opportunity to change
LPNN Quick Take #9
As the solution provider portion of the Daily's "Live in NYC" 2015 broadcast
concludes, Amber provides a rundown of what's to come in a jam-packed LPNN
schedule full of leading loss prevention leaders speaking on a variety of
high-impact topics. Stay tuned!
Solution Providers, have a
video or commercial you want to publish?
How do Target and Walmart stack up in the e-commerce wars?
Cowen & Co gives Target a slight edge over Walmart in terms of e-commerce
firepower but says each retailer has its own areas of leadership. Target and
Wal-Mart Stores were relative late-comers to e-commerce, each only getting
serious about the channel in the last few years. While they both still have a
lot of catching up to do-each retailer gets about 3% of sales through digital
commerce, compared to 6% of retail being online industrywide-they have made huge
strides. In the most recent holiday quarter, digital sales at Target rose 40%,
while those at Walmart jumped 18%.
In a research note on Wednesday by Cowen & Co, analyst Oliver Chen and his team
gave Target a slight edge over Wal-Mart thanks to its lead in mobile commerce
(shopping and purchasing done via a smartphone) though he warned Wal-Mart was a
"Target's more nimble size allows agility to drive sustainably higher online
growth," Cowen analysts wrote.
Earlier this month, Fortune detailed the missteps Target has made in recent
years that ultimately hurt its cachet and made it an e-commerce laggard. But
Cowen's survey of 2,500 customers at each chain showed how much goodwill there
still is for Target, meaning a successful digital execution can be a boon. The
survey found 81% of Target customers are satisfied with the shopping experience
there, compared to 71% at Walmart.
U.S. Retail E-Commerce Will Continue To Grow Until
USPS Reshaping Digital Services
Mobile wallets don't feel as secure as Bitcoin to
CA Store Owner Says Theft Of $200,000 In Luxury Eyewear Took Suspects Mere
Minutes Authorities say they're searching for seven suspects in
connection with the theft of hundreds of thousands of dollars in designer
eyewear from a Glendale store. Officers said the burglary at Blue Eyes Optical 1
½ blocks from a police station on West Wilson Avenue occurred about 3:45 a.m.
Sunday, and security cameras captured the group's every move. Gor Vartanyan, the
owner of the store said the suspects made off with $200,000 worth of luxury
glasses in two minutes exactly. Adding to the Vartanyan's outrage, he says the
incident wasn't the first time the store has been hit. Security video from 2012
showed a suspect make off with $40,000 in designer glasses. Investigators say a
pair of designer glass can fetch hundreds of dollars and are easy to resell.
NH Police seeking identity of a woman believed to be part of an ORC Ring
stealing 13 iPads from Walmart Police are looking for a woman
suspected of taking 13 iPads from a Wal-Mart in Amherst, New Hampshire, over the
weekend. Amherst Police said the theft happened early Sunday. The iPads are
worth about $8,500. Police believe the woman may be part of a theft ring. She's
described as having long, white fingernails and her hair dyed red at the ends.
Kingsbury, NY sentenced to 3 years; Police seized tens-of-thousands in
merchandise from storage unit A Kingsbury man who faces felony charges
in Saratoga and Warren counties for theft of tens of thousands of dollars worth
of items from local department stores was sentenced Monday to up to 3 years in
state prison in Saratoga County. Matthew J. Keeley, 34, of Deer Run, pleaded
guilty to fourth-degree grand larceny for a December shoplifting arrest at
Wal-Mart in Wilton. He was arrested while stealing more than $1,000 worth of
items. Four days later, Keeley was arrested in Glens Falls in a rental truck
loaded with merchandise that had allegedly been stolen from stores around the
region, and that seizure led officers to a storage unit loaded with more
ill-gotten televisions, electronics, computers and other items, authorities
said. Keeley has a prior felony conviction that required a prison sentence for
the Wilton case when he was convicted of an additional felony. He is banned from
Wal-Marts around the region because of numerous shoplifting arrests.
arrested at Target in Levittown, NY stealing $3,500 in teeth-whitening strips
The Second Squad reports the arrest of two men for Grand Larceny that occurred
on Thursday, January 22, 2015, Tuesday, February 10, 2015, Wednesday, February
18, 2015 and Tuesday, February 24, 2015 in Levittown. According to detectives,
on Monday, March 16, 2015 Second Precinct officers responded to Target, 3850
Hempstead Turnpike for two subjects who were identified by the loss prevention
specialists from previous larcenies of Crest Whitening Strips. Defendant McDonal
has an additional charge of Grand Larceny 4th for the unlawful removal of Crest
Whitening Strips, and razors from a Westbury Target store.
Man accused of stealing more than $2,000 in merchandise from Margate, NJ CVS
An Atlantic City man has been charged with stealing more than $2,000 worth of
electronics and hair products from Margate's CVS store, police said. Casey
Bucceri, 30, was allegedly caught shoplifting on surveillance tape on four
separate occasions. Detective Joe Scullion saw a man who matched the description
of Bucceri getting off a bus just outside the CVS at Washington and Ventnor
avenues Friday morning. Additional officers responded and Bucceri was taken into
custody without incident.
Two Milwaukee women arrested for theft of $1,300 of merchandise from Kohl's
According to the complaint, a loss prevention manager at Kohl's noticed a tan
SUV backing into a parking spot near the exit and two women getting out. He told
police he saw them going through the store, grabbing infant and adult clothing
and Nike shoes and throwing them into bags without checking sizes or pricing.
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 grow1font color="#FFFF00" style="fon1-size: 8pt">!
Nye Co. Nevada investigators uncover massive identity theft operation
Nye County Sheriff's detectives say at least 200 people were victims of a
massive identity theft scam. Detectives on Monday said it is the largest such
investigation in department history. Investigators put in overtime working on
Operation Super Lake, uncovering information about a burglary ring and ID theft
operation. So far, deputies have arrested nine of the 11 identified suspects.
The other two remain at large. Deputies said the operation involved mail theft,
check forgery and cashing. Investigators said they uncovered an elaborate
printing operation at the Pahrump home of suspect Diane Lake.
Employee accused of stealing more than $54K from Dahl's Grocery store in Des
Moines An 18-year-old has been accused of stealing more than $54,000
from a Dahl's grocery store in Des Moines when she worked there. Authorities say
Selma Suljic is charged with theft. Online jail records say Suljic remained in
Polk County Jail on Tuesday, pending $10,000 bail. A police report says two
managers at the Dahl's store where she worked reported seeing Suljic take money
from the store's safe and say they think she took more than $54,000 over a
Hot Topic Employee in Twin Falls, ID Charged with Grand Theft
A 25-year-old woman who was a manager at the Twin Falls Hot Topic store has been
charged with two counts of felony grand theft. Brittny Ann Anderson, of Twin
Falls, was arraigned on the charges Friday in Twin Falls. Prosecutors say she
stole $1,634 from the store over the course of a year. A District manager began
looking into Anderson's transactions and found many of them were returns, which
was unusual. The managers investigated and found Anderson was pulling items off
the racks, ringing up the item as if it had been sold, then ringing up a return
for it. She then pocketed cash from the register.
14-year-old, accomplices stole $5,000 worth of cell phones in New Orleans
Police arrested a 14-year-old boy and are looking for two more suspects in
connection with the burglary of a wireless store in New Orleans East Sunday.
When the 14-year-old was apprehended by police, he had about $5,000 in stolen
cellphones from iStar Wireless, according to the New Orleans Police Department.
Around 4:30 a.m., surveillance footage showed "three males chiseling through the
store's wall. Once inside, the suspects placed numerous iPhones in their pants
and a backpack and fled the location," said a statement from police.
Task Force arrests man on charges of selling counterfeit merchandise A
man has been arrested in Salt Lake County for allegedly selling counterfeit
items. The Utah Attorney General's Office SECURE Strike Force arrested
28-year-old Marcelo Christian Veizaga. According to SECURE, Veizaga has been
selling the items to unsuspecting customers in parking lots throughout Salt Lake
County for the past several months. Some of the items include Beats by Dre
headphones, Instyler hair styling devices and Beachbody workout DVDs. He was
also selling a prescription drug only available through a licensed pharmacist.
Hong Kong: Watch Store Robbery Shooting: Employee Shot In First Theft With
Gunfire Since 2004 Hong Kong police are searching Friday for a man who
robbed a Tsim Sha Tsui watch store of goods valued at $709,665 and shot an
employee before fleeing the scene. Hong Kong had not experienced gunfire during
a robbery in more than a decade. The suspect, described by police as a "calm and
savage" man in a gray suit, first entered the watch store Thursday afternoon,
according to the South China Morning Post. He returned to the scene that night,
clad in a wig and a surgical mask, and asked employees to show him nine watches
worth $709,665. The man briefly displayed a credit card, then grabbed the
merchandise and attempted to flee. When a 57-year-old employee attempted to stop
him, the suspect pulled a gun, police sources said.
Walgreens cigarette thieves crash during high
speed Police chase on I-4 in Seminole Co, FL
Miami Police searching for suspected ATM Skimmer
Card numbers, pins stolen at Albuquerque ATMs
Newark, NJ Jury Delivers Quick Guilty Verdict In
Wireless - Elkhart, IN - Armed Robbery
Mart - Leonardtown, MD - Robbery
Quick - Shelby, NC - Armed Robbery
Mart - Pickering, Canada - Armed Robbery/ Assault
General - Huntington, WV - Robbery
General - Orangeburg, SC - Armed Robbery
General - Bay Co, FL - Armed Robbery
Dollar - Normandy, MO - Armed Robbery
- Archdale, NC - Armed Robbery
Drug - Milton, VT - Robbery
Sport and Tactical - Clovis, NM - Burglary
- San Antonio, TX - Burglary
& Flanigan furniture - Seekonik, MA - Armed Robbery
Hill - E. Hempfield, PA - Armed Robbery
Coin and Jewelry - S. Burlington, VT - Burglary
- Houston, TX - Armed Robbery
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Mike Ferrendelli was named Regional
Loss Prevention Manager for AutoZone.
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5 Signs a Leader is Burned Out
Leaders of all types get burned out, except the signs that indicate they aren't
on top of their game can be missed. The problem with leadership burnout is that
nobody will let you know when you've reached that point. Here are five signs to
watch out for so you can make a change before it's too late.
You talk to the same people
Being Boss Means Being Able to See Yourself as Others See You Do you
know how your employees really see you as a boss? Finding out how others truly
perceive you can be insightful, maybe even a little hurtful, but it all helps
you become a better leader. To help uncover the truth, here are some effective
strategies that won't put anyone on the spot.
How New Bosses Can Lead Without Experience One of the biggest tasks a
leader has is building trust. It takes time and is not an easy task, especially
if you're placed into a management position without a lot of experience. Your
team will look to you, the new boss, to get the job done, and to help them do
the same. Here are some tips to help build your trust.
The 5 Things that Separate True Leaders from Managers Understanding
the difference between management and leadership can help you, your company and
your employees. Instead of focusing on how to manage the organization or
employees, it's key to develop your leadership strategy. Here are some
strategies to help you.
You need a high IQ and EQ
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Asking for advice is a great thing and we all need it from time
to time merely because as the old adage goes we're too close to the trees to see
the forest. However, the key is who you ask for it and what are their agendas,
because we all have them and even well-intentioned advice can be swayed by an
individual's need or desire to accomplish their objectives. Advice is the
easiest thing to give and the hardest thing to practice. But getting a second
opinion is always good. You've just got to realize that we're all just humans
and even the best advice givers and mentors are influenced by their own needs.
Just a Thought,
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