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 May 13, 2014


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News Brief - Sponsored by WG Security Products

U.S. accounts for 51% of global payment card fraud 
Here are the key points for 2013:
• The cost of global payment card fraud grew by 19% last year to reach $14 billion.
• The cost of U.S. payment card fraud grew by 29% to $7.1 billion.
• In the rest of the world, card fraud grew by 11% to $6.8 billion.
Record-breaking data breaches at major retailers (most notoriously, Target) in 2013 added about $500 million to the total fraud cost in the U.S. (Source

Global Information Security budgets up 51% over last year and nearly doubled from 2010  The good news is that security budgets are rising broadly. The bad news? So are successful attacks. Perhaps that’s why security budgets averaging $4.3 million this year represent a gain of 51% over the previous year – and that figure is nearly double the $2.2 million spent in 2010 – all according to our most recent Global Information Security Survey, conducted by PricewaterhouseCoopers. The 11th annual Global Information Security Survey of 9,600 executives also found that the number of organizations reporting losses of greater than $10 million per incident is up 75 percent from just two years ago. The costs of these breaches also are rising, with data breaches up 9 percent in 2013 from 2012. (Source

From retail palace to zombie mall: How efficiency killed the department store
The once-vibrant shopping mall has one foot in the grave these days. About 20 percent of the 2,000 largest U.S. malls were failing in 2008, and by 2012, only 1,513 remained in operation. Current numbers predict more than 200 existing big malls will collapse in the next 10 years. Often, the mall's anchors, the big chain department stores, are the first to go. It seems that the 2008 recession and dominance of the Internet—where you can buy anything and everything with a few clicks—have taken their toll on brick-and-mortar behemoths like JCPenney, Sears, and even Macy's. As the Computer Age thrusts us into the future, would-be mall rats are spending all their time on Facebook, and the breath-taking range of products, once so meticulously displayed for our delight, is being crammed into our PCs, tablets, and smartphones. (Source

Retail sales slow- rose only 0.1 percent to $434.6 billion in April
Signaling a disappointing start to the second quarter and potentially weakening the economic outlook that had been buoyed earlier this month by the strong April employment report. Specialty stores posted a seasonally adjusted 1.2 percent gain in sales to $21 billion last month, while department store sales rose 1.8 percent to $14.2 billion. General merchandise stores, a category that includes department stores, edged up 0.2 percent to $55.4 billion in April. (Source

Fighting fakes: ahead of U.S. IPO, Alibaba takes a tougher line
Security teams at the big three- Alibaba, Amazon, and eBay  Some security experts say the Chinese group's stricter standards on piracy and fake goods may even surpass those of Inc and eBay Inc. In its IPO filing last week, Alibaba Group Holding Ltd said the perception that its sites are cluttered with counterfeit items could hurt its ability to win over customers, investors and U.S. retail partners. Almost a quarter of Alibaba's 20,000-plus workforce, plus volunteers, form an IP protection team, and the company spends over 100 million yuan ($16 million) a year fighting counterfeit goods. In the past year, it removed more than 100 million hyperlinks to products suspected of IP infringement. eBay spends as much as $20 million each year on "buyer protection programs", such as reimbursing buyers for fake goods they bought on eBay's market. The San Jose, California-based company also set up a "Trust and Safety" department with some 4,000 employees, including more than 200 who focus just on combating infringement, and 70 who work exclusively with law enforcement. As of 2012, Amazon had more than 100 employees "in risk investigation, including counterfeit listings," according to a California court filing that year. The company estimated it blocks 5,900 sellers a year suspected of "infringing conduct", and "cancelled 4 million seller listings" over the course of a year. (Source

Apple Upgrading EasyPay, Changing Hardware
The new EasyPay devices will support the chip-and-pin (EMV) technology that major credit card companies will begin using in the U.S. next year to avoid fraud and security breaches, along with NFC features, enhanced barcode and mag-stripe reading, and a physical PIN entry pad. the VeriFone device supports NFC contactless transactions, a technology that many consumers have dreamed of having in a future iPhone model. Now, having NFC in an EasyPay raises the possibility that one day a customer with an iPhone could make a purchase at the Apple store by simply touching it to an EasyPay device. (Source

New RFID Lab will focus on the store of the future
Retailers are still embracing RFID for the improved inventory accuracy that the technology provides, but many first adopters are beginning to look beyond inventory use cases. Use cases like loss prevention, consumer engagement and multichannel store checkout options will be a major focus of the new RFID Lab when the facility moves from the University of Arkansas to Auburn University next month. Justin Patton, the longtime director of the RFID Research Center, which will go by the name of RFID Lab when it moves, says that many retailers are inquiring about what their stores will look like in 10 years when item level RFID is commonplace. With that in mind, part of the new RFID Lab will be devoted to a “95 Percent Store” concept, emblematic of how a retail store will function with inventory accuracy levels at a constant 95 percent or higher. As the new RFID Lab is built at an old supermarket near the campus of Auburn University, the “95 Percent Store” store concept will emulate what processes might look like between back room and front room inventory, what processes employees will follow, and how those processes will impact checkout, display, promotions and other retail strategies in the future. (Source

Why an NFC iPhone Could be Big for Enterprise Security - Access control
While some NFC-based features have proven to be pure novelty, one use of NFC could be particularly valuable to enterprises: NFC-based access control. This idea is not a new one; for example, HID Global, a maker of physical-access cards and readers, already offers NFC-based systems. One iPhone feature in particular could give it an enterprise edge over other popular devices: The Touch ID fingerprint reader. When Touch ID was released last fall along with the iPhone 5S. Touch ID has become a favorite iPhone feature, because it's simple to use, works well and is very reliable. Combining NFC access control with Touch ID authentication on the iPhone 6, and other iOS devices, would add an extra layer of security to access control systems, both physical and digital. And it could go a long way toward validating NFC for the enterprise, as well as the mass market. (Source

Staples starts to sell medical scrubs, traffic safety cones, and educational toys

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 The Gap

Quarterly Same Store Sales Results

American Apparel Q1 down 7% with net sales down 1%

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Month # of reports
Jan 401
Feb 332
March 329
April 365
Total 1427




MO. Total
Jan 91 $28,694,545
Feb 78 $62,949,449
Mar 76 $24,748,992
Apr 87 $25,056,828
Total 332 $141,449,814



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Interview with Keith White, Senior VP of LP for The Gap Stores

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MO. 2013 2014 %ñò
Jan 385 374 2.8%ò
Feb 310 313 .95%ñ
Mar 294 301 2.3%ñ
Apr 377 330 12.5 ò
Total 1366 1315 3.7%ò




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"ORC in the Retail Industry"
Organized Retail Crime Series

Scott Sanford, Director of Investigations & Training for Barnes & Noble, discusses where he thinks the loss prevention industry is going and how we're making progress in the fight against Organized Retail Crime. A subject matter expert on the topic, Scott has a unique gift and ability at resolving ORC cases and has been extremely involved in the national effort for many years. Learn how you can be better prepared to combat the North American epidemic that is ORC.

LP Executives – 2014 LP Video Challenge

Have a video the industry could learn from?
Your training video, your investigative video, a case video – any video you think your colleagues would enjoy or learn from. Or maybe one that's just downright funny or interesting. Send it to us and be entered into the new 2014 LP Video Challenge.

Don't miss out on this great opportunity to win!
1st place - $2,000
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Stuart Levine, CEO of The Zellman Group, speaking at NRF LP Conference 
Stuart will be speaking with Johan Gerber, Group Head of Global Fraud for MasterCard International. The session is EMV Impact and an Omni channel Approach to Reducing Fraud. In this session you will gain a greater understanding of the 2015 shift in liability for in-store credit card transactions and see the impact that these changes had on documented fraud in other regions of the world. You will be exposed to the latest technology to protect your company from e-commerce fraud and find out what you can do to get your company ready for change. Don't miss this session on Wednesday June 11, 11:30-12:30pm in room 304-305.

59% of U.S. seriously concerned about other people obtaining and using their credit or debit cards - Nearly 40% would stop somewhere else  Credit and debit card fraud tops Americans' security concerns in 2014, against a recent backdrop of major retail and banking security breaches, according to the 2014 Unisys Security Index released today by Unisys Corporation in partnership with Lieberman Research Group. Reflective of widespread concerns over financial security, nearly 60 percent of Americans surveyed say that a security breach involving their personal or credit card data would make them less likely to do business at a bank or store that they commonly use. Nearly 40 percent said they would not be likely to change how they shop or do business following such a breach. (Source

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet




Counterfeit-wine dealer should get 14-year prison term, U.S. says biggest & most successful wine counterfeiter in the world  Rudy Kurniawan, a dealer once “the biggest and most successful wine counterfeiter in the world” sold at least $20.7 million (U.S.) of purportedly rare French wines he created in his home kitchen, federal prosecutors in New York said Monday in a memo to the sentencing judge. Kurniawan, who purchased luxury cars, a Beverly Hills mansion and fine art with the proceeds of his crimes, was convicted in December of two separate frauds, including one to defraud Fine Art Capital, a lender to individuals and art dealers, assistant U.S. attorneys Jason Hernandez and Joseph Facciponti wrote. The FBI found thousands of labels from the most expensive wines in the world in his home during a search after his arrest. Kurniawan, who has been in custody since he was charged in 2012, has asked the court in his own filing to sentence him to the time he has been held. In addition to serving 11 to 14 years, prosecutors said, he should forfeit $20.7 million and any remaining assets the U.S. can identify. Sentencing is May 29th. (Source

Jury convicts trio in warehouse theft capers in Las Vegas
Three men who stole controlled substances and designer goods from warehouses and delivery vans in the Las Vegas area were convicted Monday by a federal jury of robbery. Diaz and Simon broke into warehouses, storage facilities, and delivery vans from October 2012 through April 2013. They stole designer handbags and controlled substances and sold the goods for their own financial gain. The defendants broke into warehouses by cutting through doors, and broke into delivery vans and other vehicles left unsupervised in commercial parking lots. In April 2013, the defendants conspired to kidnap and rob a delivery van driver with a firearm to obtain control and possession of the van containing controlled substances. Each face 20+ years in prison. (Source

Shootout in Fort Smith mall parking lot leaves 1 dead, 1 wounded in Arkansas
Sullivan says Herrera and another man told officers they were talking with Qandil's estranged wife Saturday night when Qandil arrived and pulled out a handgun. Herrera and the other man also pulled out handguns and the three exchanged gunfire with Qandil and Herrera being hit. (Source

Rite Aid Pharmacy employee shot and killed in East Lansing, MI; suspect in custody  The man suspected in two fatal shootings Monday was known to be involved in drunken arguments that lasted for hours. The night before police say the man shot and killed an employee at a Lansing Rite Aid and then a second man in East Lansing, he’d been involved in a shouting match with a neighbor. Shortly after 11 a.m. Monday, police said the man walked into the Rite Aid drugstore near Frandor Shopping Center and shot a 35-year-old male employee. (Source

Baton Rouge Walmart employee arrested for $20,000 safe theft
Investigators reviewed surveillance footage since the last previous audit of the safe...and [Stimage] is the only person seen accessing the safe between the previous audit and the audit that determined that $20,000 had been removed from the safe." (Source

Burglars Smash California Apple Storefront With Car - They're Back!
After a long pause of major crime, burglars used a passenger car to smash the front door and security grating of the Fourth Street (N. Calif.) Apple store overnight, and steal several products from the display tables. The suspects escaped after the 2:52 a.m. incident and police believe the car had been stolen. The vehicle was left about 20 feet inside the store with skid marks on the stone floor behind it. Several wood tables were bumped out of the way by the Pontiac sedan. The glass doors were broken by the adjacent taller glass panels were undamaged. Starting in 2011 criminals across the country discovered they could smash the front door of Apple stores, enter and rip display products from their power and shoplifting connections before police could respond. In some cases the burglars were armed and confronted security guards. In one case the burglars left behind their vehicle’s license plate are were later arrested. In another, an armed security guard shot and killed an armed burglar. The U.S. incidents faded away in late 2012 after Apple installed security gratings at about 30 street-facing stores, including at Fourth Street. But the Berkeley store was hit in July 2012 by a door-hammer attack after the security grate installation, and the high-profile, stone-faced Kurfürstendamm (Berlin) retail store was targeted in December 2013, seven months after it opened. (Source

UK’s Heathrow Airport Employees jailed for theft of Cargo
The men were arrested after police at Heathrow began an investigation into the theft of cargo items passing through the airport destined for overseas locations, including the Middle East and Afghanistan. As a result of the operation, Embery and his supervisor, McKeown - who worked at the airport - were arrested on suspicion of theft on 17 December 2013 and a significant quantity of high value electrical items and other property was recovered. Embery was subsequently charged with five counts of theft by employee and two counts of possession of criminal property. McKeown was charged with two counts of theft by employee and one count of possessing criminal property. (Source

Granada Hills, CA Man Guilty of Credit Card Thefts; 38,000 credit card numbers
A 44-year-old Granada Hills man pleaded guilty last week to stealing credit card information by using a credit card skimming device at gas stations in Harris County, Tex., Arkadi Minassian was reportedly part of a Los Angeles-based criminal ring which distributed highly sophisticated credit card skimming devices to various cities, including Houston, Las Vegas and Mojave, Calif. Minassian wirelessly uploaded credit card numbers to his laptop computer from skimming devices at two Valero gas station on March 29, 2011. He was caught near the gas station. Aleksandr Goukasian, 53, of Glendale, was sentenced in December 2012 to 20 years in prison for his role in the theft ring. Prosecutors in that case said the crew amassed 38,000 credit or debit card numbers and stole more than $280,000. (Source

Former NAPA Store Employee Charged with $70,000 theft in Abbotsford, WI  A 51-year-old Dorchester, WI man is charged with theft after he's accused of falsifying return transactions. Investigators say Kirk Kalepp defrauded the Abbotsford NAPA Autoparts store out nearly $70,000 during a six year span. An investigation began in December 2013 after a manager notice an unusual amount of returns from Kaleep. Surveillance camera were installed an allegedly caught Kaleep taking money from a cash register. Kalepp admitted to taking the money cited medical bills and credit card debit. (Source

Smash-and-grab robber hit an Advanced Auto store in Atlanta  Police are investigating a morning smash-and-grab robbery at an Advanced Auto Parts store in southwest Atlanta. Police said a suspect broke a window and made entry into the business at Metropolitan Parkway. The person got away with an undisclosed amount of cash. (Source

Atlanta Police release video of Church van Smash and Grab  It's been almost two weeks since three men allegedly drove a stolen church van into the front of a southwest Atlanta store and helped themselves to merchandise. In a matter of seconds, the three suspects swiped 30 shirts, 10 pairs of pants and five pairs of shoes before leaving in the van through smashed glass, Atlanta police said. Today, police released surveillance video of the smash-and-grab burglary to help identify the suspects. Shortly after 3 a.m. April 25, police were called to the City G.E.A.R. store at 3030 Headland Road and arrived to find the front of the store smashed, according to an incident report. Surveillance cameras in the store and a nearby grocery store captured the crimes, which involved a white van with “International Ministries 2000” on the side. (Source

Smash-and-grab at a Chesapeake, VA Jewelry Store
A smash-and-grab at a Chesapeake jewelry store is under investigation. Police were called to Long Jewelers in the Woodford Square Shopping Center around 12:10 a.m. Tuesday. Police officers arrived to find one of the front windows had been smashed. Once inside, the burglar(s) smashed several jewelry cases. No value has yet been determined. (Source

Tucson, AZ Police search for Safeway robbery suspect; stealing a cart full of liquor  The Pima County Sheriff's Department asks for the public's help in identifying a strong arm robbery suspect who targeted a Safeway store. Two suspects reportedly threw a garbage can and attempted to punch a Safeway employee who confronted them as they tried to leave the store without paying for a cart full of liquor on May 7, sheriff's officials confirmed. Deputies responded to the store and arrested 20-year-old James Alvarez on charges of aggravated robbery but seek another suspect who fled the scene. (Source

Waffle House pitchfork robber arrested in Tenn. murder

Shell warns of credit card skimmers found at Sarasota gas stations

$20K Reward offered to solve Smash and Grab Firearms Theft in Atlanta

Facebook tip leads to Dollar General Armed Robbery arrest in St Johns Co., FL

Man sentenced in killing of Las Cruces, NM store clerk

Troy, NY Repeat Offender caught stealing Baby Formula and Meat at Price Chopper

Family Dollar – Desoto Parish, LA – Robbery – 2 suspects arrested
Grand Central Station – Bellevue, WI – Armed Robbery
Haven Smokes – Lansing, MI – Armed Robbery
Main Street Foods – New Britain, CT - Armed Robbery
Market Basket – Portage, WI – Burglary
Pawn Plus – Bullhead City, AZ – Burglary – 2 arrested
Penn-Taft Pharmacy – West Mifflin, PA – Pharmacy Robbery – trial postponed
7 Eleven – Orlando, FL – Armed Robbery


Las Vegas: Baby formula on the black market  Drugs and sex aren’t the only commodities found on the black market in Las Vegas. Baby formula brings big bucks. Thieves are ripping off stores such as Walmart, Von’s, Smith’s and Walgreens – boosting as much baby formula as they can. Some steal to feed their drug habit. Others do it to make ends meet. Few think they are doing anything wrong. “I just think of it like Robin Hood... because these parents need it, and they can't afford formula,” one thief said in a YouTube video. Organized retail theft investigator Darin Fredrickson says each heist costs honest consumers. “Some of these retailers are losing, easily, in excess of a million dollars just in formula alone,” he said. (Source

ORC suspect just won't quit hitting Walmart stores in Arizona - busted 14 times and served time - busted again  A Superior man who already served prison time for 14 Walmart thefts has been arrested again after allegedly stealing from the San Tan Valley Walmart, the Pinal County Sheriff's Office said. Michael Lopez, 41, was booked into jail on six counts of burglary and six counts of organized retail theft. On April 25, an asset protection agent with Walmart told deputies she saw Lopez drive into the parking lot in a white pickup truck. The agent said she noticed the vehicle was the same white pickup truck he has previously used to commit a number of thefts from Walmart, PCSO said. Just three days earlier, $554 worth of merchandise was stolen from the store and never recovered. The agent said Lopez filled a shopping cart with $743 worth of store products and appeared to be getting ready to flee without paying. The Walmart asset protection agent reported Lopez has 14 previous thefts from local area Walmarts, including stores in Mesa and Apache Junction. (Source

Suspects accused of stealing 22 cell phones from Walmart in Winston-Salem, N.C.  Winston-Salem police are looking for two suspects accused of breaking into a display case at Walmart and stealing 22 cell phones valued at over $13,000. (Source

Printer ink theft ring in Milton, GA; Staples employee says they were hit for hundreds of cartridges  Local stores have been the victims of a group of people who are stealing printer ink cartridges by the hundreds. Milton Police reported they checked on the Staples store on Ga. 9 April 28 to advise them to be on the lookout for the thieves. While there, store employees told police they had a similar incident occur a few days prior, resulting in $2,200 worth of printer ink stolen. They said three men entered the store April 22. One man, with a driver's license for Vernan Hutchinson, of New York, has been in several times. They said he goes to the customer service counter or cashier and tries to pay with a fraudulent check or to return items without a receipt. When employees refuse to serve him, he starts to create a loud fuss. While this is happening, his two companions go to the back of the store and steal the ink. Other stores in the Atlanta region have also reported being hit by similar scams. (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

LP Software Unveils its Service Request Management System

Do service and repair requests get missed or take too long to resolve?
Have trouble tracking when service contracts are set to expire at a multitude of locations?
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SRMS (Service Request Management System) helps track service and repair requests throughout the organization. SRMS will allow personnel to submit tickets for service and repair requests at their location. These tickets will then be tracked and reported on during every step of its lifecycle. Further, SRMS will help manage related contract information—imagine having contracts available at your fingertips, along with other details such as classification, department, and expiration date.

SRMS can also be used to track vendor performance and related service costs. Examples of tickets that can be submitted within the application include broken equipment (CCTV cameras, elevators, EAS, computers, etc.) and application support (new user, password reset, system down, etc.). SRMS can also be expanded to handle IT requests or other service-related uses.

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Job Opening




Director of Loss Prevention Belk Birmingham, AL Belk
VP of Operations Checkview Chanhassen, MN Checkview
VP of Loss Prevention Dunkin Donuts Canton, MA Dunkin Donuts
Central Investigator - ORC Home Depot Elmont, NY Home Depot
District LP Manager Sears Los Angeles, CA Sears Holdings Corp
Business Development Mgr Intelligent Loss Prevention Rockford, IL Intelligent Loss Prevention
Business Continuity Mgr Bi-Lo Holdings Jacksonville, FL Bi-Lo Holdings
Regional LP Manager Michaels Denver, CO Michaels
National Account Mgr Confidential Dallas, TX Downing & Downing
District LP Manager Confidential Phoenix, AZ Downing & Downing

National Account Mgr



Downing & Downing

Dir of Loss Prevention


Philadelphia, PA

Downing & Downing

Regional LP Manager Confidential San Francisco, CA Downing & Downing

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Today's Daily Job Postings from the Net - Appearing Today Only
View our Internet Jobs Archives here

Job Opening




AP Manager in Training Walmart Delano, CA Walmart
AP Manager in Training Walmart East Setauket, NY Walmart
AP Manager in Training Walmart Commack, NY Walmart
AP Manager in Training Walmart Valley Stream, NY Walmart
AP Manager in Training Walmart Elizabethville, PA Walmart
AP Manager in Training Walmart Vicksburg, MS Walmart
AP Manager in Training Walmart El Reno, OK Walmart
District LP Manager Kmart Raleigh, NC Sears Holdings Corp
District LP Manager Sears Los Angeles, CA Sears Holdings Corp
LP Manager Sears Ocean, NJ Sears Holdings Corp
Dept Mgr Store LP & Safety Lowe's Shawnee, OK Lowe's
Dept Mgr LP & Safety Lowe's Long Beach, CA Lowe's
Dept Mgr LP & Safety Lowe's Boynton Beach, FL Lowe's
ETL Assets Protection Target Louisville, KY Target
District Operations Mgr Home Depot Virginia Beach, VA Home Depot
Asset Protection Manager BJs Wholesale Club Newark, NJ BJs Wholesale Club


Oscar Martinez was named District Loss Prevention Manager for National Stores.
Vincent Vita was named Loss Prevention Manager - Supply Chain for Amazon.
Eduardo Alamo Jr. was named Loss Prevention Supervisor for Burlington Stores, Inc.

Post Your New Job or Promotion! Click Here


What Leadership is Not
If you hear someone telling you that leadership is all about these three qualities, run the other way! Here are a few myths about what is involved in being a leader. While they are great qualities to have, they are not building a leadership foundation. (It's not Einstein)

5 Toughest Personalities at Work--and How to Manage Them  Every  leader encounters that one person, who may give you some problems in the workplace. You can't just avoid dealing with this person, and conflict could arise if you confront him or her head on. What's a leader to do? Here are some tips for five challenging personalities. (Narcissists to Guilt Trippers)

The Delicate Art of Managing Both Your Boss and Your Employees  As a leader, your employees aren't the only ones who you have to manage. You are also responsible for adapting to the needs of those above you. Use these tips to help you manage up, as well as manage down. (Get what you need)

The Best Leaders are Humble Leaders
In a recent study, humility is one of four critical leadership factors to help create a welcome and inclusive environment for employees from various demographic backgrounds. When employees observe leaders behaving selflessly, they feel part of the team. Use these tips to embrace this leadership style. (Mistakes are teachable moments)

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Perception becomes reality slowly on a macro level and it's difficult to change it if it's incorrect or doesn't portray the truth. It's the same reason law enforcement separates witnesses to ensure clarity and truth. The group mind becomes influenced by opinion and agendas and distorts the true reality. One can only rely on daily vigilance based on doing what's right to hopefully impact the individuals one works with on a daily basis to carry the experience forward and be witness to what is right.

Just a Thought,
Gus Downing

Gus Downing

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