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 10/31/18 LP, AP & IT Security's #1 News Source d-ddaily.net





LP Leadership in a Digital Age

Quick Take 12


Quick Take 11

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Q4 RAM LP Committee Meeting
Nov. 28
Axis Experience Center
Chelmsford, MA

RLPSA Connect
Nov. 15

D&D's Live in NYC
At NRF Big Show

Monday, Jan. 14

The Daily's New Year's
Kickoff Reception

Honoring NRF LP Council
Tuesday Evening Jan. 15

NRF Big Show
Jan. 13-15

ISCPO 2019 Conference
March 6-7

RILA AP Conference 2019
May 5-8

CNP Expo 2019
May 21-24

NRF Protect 2019
June 11-13

RLPSA Conference 2019
Aug. 4-7

See More Events



'18 National Retail Security Survey

2017 NRSS Survey

2016 NRSS Survey

2015 NRSS Survey



"Our Future's so bright, We gotta wear shades!"

Florida based CIS Security Solutions, Inc. is there for you, rain or shine. CIS truly enjoys finding the right solutions for you. 30 Years of experience, excellent customer service, and the ability to have a product made, improved, or customized is what makes CIS so special. Our CIS Family is growing. CIS' unique line of IR protected tags and tethers is growing and has recently been part of a study with the Loss Prevention Research Council (LPRC). Visit our website to learn more.

Back row: Pres. - Peter Morello Sr., Customer Relations/Shipping Mgr - Mandy Cass, Account Mgr - Barbie Bordas

Front Row:
VP - Pete Morello, Jr., Office Mgr - Savanna Mulvaney, VP-Marketing & Inside Sales - Donna Carey

Happy Halloween from CIS!


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In this third video, Alan Rabinowitz and Bob Bonstrom tell us how Delta Lock has responded to the challenge of "product sweeps" committed by shoplifters in stores with their Hook Locks and Hold Downs. Learn how they can custom-design these solutions to meet their retail customers' specific requirements.

Delta Lock was founded on the belief and principles that make a positive difference with their customers and employees by understanding and meeting their respective needs. As a Total Solutions Provider, Delta Lock offers and supports Turnkey Products, mechanical and electronic locks, designed to meet customer requirements, applications, and how these products must work and function.

'Group LP Selfie'  Pizza Party Drawing!

Who wants some free pizza?

Find out which three lucky LP/AP teams won a free pizza party, courtesy of the D&D Daily, as part of our latest "Group LP Selfie" drawing with MCs Joe LaRocca and Amber Bradley, Brent Gable from OpenEye, and Gus Downing - who all take a fun group selfie of their own.

Submit your team's picture and you could win at our next drawing
at the NRF Big Show in January!


FTC Regulations - Requirements - Audits - Fines?
FTC Announces Agenda for the Seventh Session of its Hearings on Competition and Consumer Protection in the 21st Century
Session at Howard University to Focus on Algorithms, Artificial Intelligence, and Predictive Analytics

The Federal Trade Commission announced the agenda for the seventh session of its Hearings Initiative, with a two-day hearing at the Howard University Law School in Washington, D.C., on November 13-14, 2018. Howard University is a co-sponsor of the event.

The hearing will examine competition and consumer protection issues associated with the use of algorithms, artificial intelligence, and predictive analytics in business decisions and conduct. See detailed agenda.

The hearing will inform the FTC, other policymakers, and the public of:

● the current and potential uses of these technologies;
● the ethical and consumer protection issues that are associated with the use of these technologies;
● how the competitive dynamics of firm and industry conduct are affected by the use of these technologies; and
● policy, innovation, and market considerations associated with the use of these technologies.

To further its consideration of these issues, the agency seeks public comment on the questions listed below, and it welcomes input on other related topics not specifically listed here.

Background on Algorithms, Artificial Intelligence, and Predictive Analytics, and Applications of the Technologies

Common Principles and Ethics in the Development and Use of Algorithms, Artificial Intelligence, and Predictive Analytics

Consumer Protection Issues Related to Algorithms, Artificial Intelligence, and Predictive Analytics

Competition Issues Related to Algorithms, Artificial Intelligence, and Predictive Analytics

Other Policy Questions

Comments can be submitted online and should be submitted no later than February 15, 2019. If any entity has provided funding for research, analysis, or commentary that is included in a submitted public comment, such funding and its source should be identified on the first page of the comment.

Additional sessions of the FTC Hearings initiative will be held throughout the fall and early winter. The following hearings have been announced and are upcoming. ftc.gov

Editor's Note: Given the subject matter and extensive use of these technologies in LP/AP, IT Security, and retail as a whole and considering that the outcomes could potentially drive regulations, external & internal audit requirements especially with AI bias being such a hot button in the news, and also it might establish fines. Therefore it would seem appropriate that solution providers delivering these services and the retail industry itself be engaged and participating.

Is Your Team a Spreader or Preventer?
Are They Immunized? - 80,000 Died Last Year - Highest Number on Record
CDC director Robert Redfield says pandemic flu is "very possible"

The Centers for Disease Control and Prevention is keeping a close watch on the flu after the highest number of deaths from the virus last year since modern tracking began. It's been 100 years since the devastating Spanish Flu pandemic killed 50 million people worldwide. In an interview with "CBS This Morning" co-host John Dickerson, CDC director Dr. Robert Redfield said one of his greatest fears today is another pandemic, which he says is "very possible."

You know, people ask me what keeps me up at night. And the thing that keeps me up at night is just what you brought up, pandemic flu. So I think it's very possible," he said. "And we're at risk for another pandemic. Our best preparation for that pandemic is to optimize our response to seasonal flu...But, John, I think that is, you know, remains a serious possibility."

The U.S. government estimates that 80,000 Americans died of flu and its complications last winter -- the disease's highest death toll in at least four decades. "We lost more children last year from flu deaths than any year before since we started recording...the majority of those children that died were not vaccinated," Redfield said. "I want to come back and argue that immunization is one of the most critical tools we have to eliminate diseases...in this case, it's the most important tool we have to minimize flu." cbsnews.com

"Women's Walk" Protest Today
Google Engineers Are Organizing A Walkout To Protest
Company's Protection Of An Alleged Sexual Harasser

In a new email, Google CEO Sundar Pichai told employees that he supports the planned "women's walk" to protest issues of sexual misconduct at the company.

A group of more than 200 engineers at Google, while the NY Times reports 1,000, are organizing a companywide "women's walk" walkout for later this week to protest recent revelations about the search giant's protection of employees that had allegedly engaged in sexual misconduct, according to four people familiar with the situation inside Google.

The protest, which is expected to happen on Thursday, comes in light of a story by the New York Times last week into the alleged misbehavior of Android creator Andy Rubin and other executives at the company, some of whom still have positions of prominence at Google. Google gave Rubin a reported $90 million exit package in 2014, following an investigation into an allegation that he had coerced another employee to perform oral sex on him. That investigation reportedly found that allegation to be credible.

On Thursday, Google executives hosted an all-hands meeting, during which they attempted to explain their treatment of Rubin and apologize to employees.  buzzfeednews.com nytimes.com

Documents suggest Orlando Police facial recognition pilot training and communication inadequate
The Orlando Police Department's pilots of Amazon's facial recognition technology have had mixed early results, according to documents obtained by Buzzfeed News under a Freedom of Information request.

Now in its second phase, Amazon told the OPD as the first phase of the pilot was being set up that the proof of concept "may generate as many questions as answers."

The deployment is concerning to Senator Ron Wyden (D-OR) and others because of a lack of clear, written policies governing the technology's use, such as to deal with misidentification and appeals. Further, a police representative told BuzzFeed News that officers did not receive training from Amazon on standards for uploading images, and the department does not appear to have provided training on rules for submitting images to add "persons of interest" to the database. biometricupdate.com

Ocean's Eleven-like Crew in 16 Bold Jewelry Heists Over 11 Years Busted
The "incredibly sophisticated" burglary crew that stole $2 million worth of merchandise from a Manhattan jewelry store in December 2016 -- and another $2 million worth from a Los Angeles jewelry store three months later -- had every specialist needed for their caper.

Acrobats, strongmen and electronics experts were part of the so-called Pejcinovic Enterprise, named for alleged ringleader Damir Pejcinovic, which federal prosecutors in New York said struck 16 times between 2006 and 2017 in the United States and Europe, according to New York federal prosecutors.

Pejcinovic and two alleged members of his crew were arrested last week and pleaded not guilty in a case that had all the trappings of a real-life Hollywood heist.

The crew included people who knew how to disable security systems, jam cellphones and cut phone lines that connected jewelry stores with their security companies, according to court records.

Beside the jewelry heists in New York and Los Angeles the crew has also been linked to burglaries in Portland, Kansas City, Beverly Hills and Frankfurt. abcnews.go.com

Victoria's Secret employees say they witness shoplifting almost every day but that they'll be fired if they try to stop it
Rare Article Points Out Retailers Are Doing The Right Things
Do a simple Google search for "Victoria's Secret shoplifting," and you'll find dozens of wild stories documenting shoplifting incidents at locations of the lingerie retailer across the United States.

A bra specialist who works in a Victoria's Secret in South Florida told Business Insider, "It's so normal, it's ridiculous." She said that despite the frequency of shoplifting in her store, she's not able to do anything about it. That's because Victoria's Secret has a strict policy where its employees are instructed not to accuse, approach, discuss, or point out shoplifters in any way.

Those who do so risk losing their jobs, five employees, who asked to remain anonymous for fear of retribution, told Business Insider.

A representative for Victoria's Secret confirmed to Business Insider that sales assistants are instructed not to approach shoplifters directly. Employees are asked to be observant and alert the asset-protection team, a security unit that works with police to file charges, about any incidents.

Racial profiling is a concern It turns out Victoria's Secret has a common approach to shoplifting - it and other stores, like Walmart and Macy's, have policies designed to not only protect employees' safety, but prevent situations where a customer could be falsely accused of shoplifting.

But some workers say that refusing to address shoplifting could create an uncomfortable working environment.

"The ease of access to stealing merchandise and even returning it for profit has caused associates to stop taking their job seriously and also even made observing customers feel that we are a joke," Galindo said. businessinsider.com

Barnes & Noble alleges ex-CEO 'sabotaged' sale
Details Sexual Harassment in Lawsuit

Barnes & Noble has snapped back at a lawsuit filed in August by ex-CEO Demos Parneros, alleging the executive (who was fired in July for violating the company's conduct code) "intentionally sabotaged a potential acquisition of the Company to further his own self-interests, in direct contravention of the Board's clear instruction to proceed with negotiations and facilitate the potential transaction," according to court documents filed Tuesday.

In the lawsuit Barnes & Noble claims: First, the sexual harassment: As set forth in paragraphs 103 and 121-122 below, on two separate occasions, Parneros inappropriately touched a female subordinate and, during
the second incident, he made an advance and used sexual language, making her feel uncomfortable and uneasy in his presence. Second, he mistreated and bullied members of the executive team, including one
of his direct reports, an officer of the Company. retaildive.com

Amazon Go is attracting return shoppers, long visits
About 44% of Amazon Go shoppers already have visited the cashierless store more than once, and shoppers average about 27 minutes in the store per shopping trip, according to a 60-day analysis of the first five Amazon Go locations conducted by digital advertising and data firm inMarket. retaildive.com

National News Outlet Contacts 'The Daily' Asking:
Are Retailers Doing As Much As They Can?

In a call last week, a journalist from a highly read national news outlet reached out to the Daily inquiring about whether retailers are doing as much as they can to stop all the Apple store thefts and to respond to the increased violence/aggressiveness he's heard about. It certainly seemed as though he had been researching the subject, following the retail news, and expected to hear industry deficiencies - in anticipation of writing a high impact story. Or at least that was our interpretation.

In explaining that the industry is doing as much as it can do given the resources it has and that much like in the public venue, law enforcement's limited resources, and the reality of society and the opioid epidemic, you just can't eliminate crime or risk.

With that answer the conversation came to a quick end. Sometimes honest reality doesn't make great news. Just a call we had. Gus Downing

Majority of UK consumers trust fingerprints over PINs and want biometric payment cards today

Publix Recognized as one of Fortune's Best Workplaces for Women

Consumer & Sr. Mgt. Big Disconnect - 40% vs. 20% Ranking Price Top Factor

Destination Maternity reducing headcount as part of restructuring

Quarterly Results

eBay Q3 gross merchandise volume (GMV) up 5%, revenue up 6%
The Container Store Q2 comp's up 1.3%, net sales up 2.8%
Big 5 Sporting Goods Q3 comp's down 2%, net sales down 1.5%

All the News - One Place - One Source - One Time
The D&D Daily respects your time & doesn't filter retail's reality



Arecont Vision Costar Targets Sales Growth in Europe, the Middle East, and India

New resources provide enhanced support to customers and partners

Los Angeles, CA and Dubai, UAE (October 31, 2018) - Arecont Vision Costar, the leader in network-based video surveillance solutions, announces the promotion of a key staff member and the addition of skilled new sales resources to improve customer and partner support across several international growth regions.

The company, a business unit of Costar Technologies, Inc. (OTC Markets Group: CTSI), is increasing its presence in Europe, the Middle East, and India through strategic hiring. The international sales organization has its regional headquarters in Dubai, United Arab Emirates, and is responsible for all worldwide Arecont Vision Costar sales and support activities outside of the Americas.

"We are truly excited to promote and add these skilled and experienced team members and sales partners to both enhance our presence and deliver improved sales support to our end user customers, systems integrators, consultants, and technology partners," stated Sanjit Bardhan, Vice President - International Sales, Arecont Vision Costar. "The new Arecont Vision Total Video Solution and its component megapixel cameras, video management system, video recorders, and cloud-based web services offer valuable new choices to the market, and our expanded team will help bring these products to our customers around the world."

Vineet Panwar has been promoted to Technical Director - International, leading all technical support activities across Europe, the Middle East, Africa, India, and Asia-Pacific. Mr. Panwar first joined the company in 2015, as Regional Technical Manager for the Middle East, Africa, and India.

Read More Here

Visit Arecont Vision Costar online at www.arecontvision.com to learn more, or find sales contacts around the world at https://www.arecontvision.com/where-to-buy.php.


Destructive Cyberattacks Spiked in Q3
Third Party "Island Hopping" Attacks Increasing

Instead of simply fleeing when discovered, adversaries are actively engaging with incident response teams, a new Carbon Black study finds.

New data gathered from more than three dozen providers of incident response services reveals a disturbing increase in the past quarter of destructive cyberattacks targeting US organizations.

What is not clear is whether the attacks-many of them from countries like China, Russia, and North Korea-are a response to the current geopolitical climate, or demonstrate increasingly punitive attempts by attackers to hide their tracks after being discovered.

Either way, the implications of the trend are serious for enterprises, says Tom Kellermann, chief security officer at Carbon Black, the security vendor behind the report. Between the second and third quarters of this year, there was a three-fold increase in destructive attacks where adversaries deleted or encrypted data, destroyed logs and backups, and caused system outages in ways designed to paralyze victims.

Thirty-two percent of the breaches that the 37 incident responders in Carbon Black's study investigated last quarter involved such attacks compared to 10% in the second quarter.

Compounding the severity of the situation was the fact that more than 50% of the attacks that the IR firms investigated involved so-called "island hopping," Kellermann says. These are attacks where threat actors target an organization so they can access an affiliate's network, like that belonging to a customer or partner. Thirty percent of victim organizations in the Carbon Black study saw their websites being turned into a watering hole by adversaries seeking to attack an associated company's network, he notes.

"Enterprises need to understand how their biggest customers and partners could be indirectly targeted either from or through their infrastructure," Kellerman says. "They need to do a better job of understanding East-West movement and do hunts and incident response in a more clandestine manner." darkreading.com

How the FBI weighs cybersecurity risks against other criminal threats
Dan Patterson: When you have conversations with your colleagues, how do you prioritize learning versus action? And there are a lot of other priorities that the FBI works on in the, even the private enterprise work on, so how do you prioritize where and how to spend money and actions? What type of conversations do you have?

Leo Taddeo: Right. This is a continuing challenge for the FBI, for US law enforcement, and for the US intelligence community. And that is, how do you stack cyber threats against all of the other threats that are facing us? Counterterrorism, for example, is a program that can't be ignored. Our own FBI efforts against public corruption, and major crimes here in the United States can't be ignored.

So as an FBI executive, there's a balancing. You don't have infinite resources, you don't have unlimited budgets, and you have to allocate according to the potential impact that you are trying to prevent, the potential adverse impact that you're trying to prevent. So for someone like the Director of the FBI to remove agents from an important program like counterterrorism, and transfer them to the cyber program is an enormously difficult decision to make because what we address on the cyber program may wind up being unaddressed in a different program, and the answer for most of us is just hire more FBI agents and analysts and solve all of the problems that we have. But that's not such a simple solution. techrepublic.com

Crypto-Locking Kraken Ransomware Looms Larger
Ransomware-as-a-Service Operation Joins Forces With Fallout Exploit Kit

A slick ransomware-as-a-service operation called Kraken has begun leveraging a new exploit kit to help it score fresh victims, and unfortunately, that combination may prove challenging to defend against, according to new research released by analysts at McAfee and Recorded Future.

The two security vendors have collaborated on a new report into the Kraken Cryptor, which the companies say first appeared on a top Russian-language forum in August.

Many of the insights into the ransomware come from one of its customer service representatives, who goes by the nickname "ThisWasKraken." That individual runs Kraken Cryptor as an affiliate program, which enables others to license fresh versions of the ransomware that have been designed to avoid anti-virus software.

"Kraken's goal is to encourage more wannabe cybercriminals to purchase this RaaS and conduct their own attacks, ultimately leading to more money in the developers' pockets," writes Gary Davis, chief consumer security evangelist for McAfee, in a blog post.  govinfosecurity.com

RFID: Technologies, Applications and North American Markets
Report Scope: This report addresses the need for an objective, quantitative analysis covering emerging RFID technologies in the context of the North American RFID market. The report provides a snapshot of the North American RFID market and the share of principal applications and end-use industries that constitute it. Read the full report. yahoo.com

Analysis of Growth & Security of the Global RFID Retail Market 2018-2022:
Omni-channel Retailing a Key Driver for Growth


Dawson Creek, BC: Smash-and-grabs up 200% at businesses, police say
Stores increasing security, requesting more police patrols

Commercial break-ins are reportedly up by more than 200 per cent in Dawson Creek, B.C., prompting an emergency meeting between business owners who are finding themselves out of pocket. RCMP say they've received 47 reports of commercial theft since Jan. 15, compared to 15 in the same period last year. The local chamber of commerce held an emergency meeting over the weekend to discuss the spike in crime. Kathleen Connelly, chamber president, said it was a "packed" house. Many at the meeting called for more police patrols. Switzer, for his part, said he and his colleagues have increased security in and outside the store. cbc.ca

Four out of five security officer programs face significant budgetary pressure
A recent practitioner poll by the Security Executive Council, a research and advisory firm, found that while a majority of uniformed security officer programs face budgetary pressure from executive management, many security leaders still do not use metrics to show the value of these programs. 94 percent of respondents have experienced requests to reduce uniformed security officer budgets, the poll shows.

However, results also show that many security leaders aren't doing all they can to protect or optimize those threatened budgets; nearly 30 per cent of respondents provide no reports on officer activity, improvement or performance quality. Full results of the poll can be found here. canadiansecuritymag.com

Silvia Fraser, head of security, City of Mississauga, named Security Director of the Year
Recognized for her revitalization and transformation of Mississauga's security program, Fraser is the recipient of the 13th Security Director of the Year award, sponsored by Anixter Canada. Fraser has only been with the department for about a year, but has already affected tremendous change in that time (read more about Fraser in the Sept/October issue of Canadian Security magazine). canadiansecuritymag.com

Vancouver, Canada's Marijuana Capital, Struggles to Tame the Black Market
When Canada legalized recreational marijuana, on Oct. 17, one of the central aims was to shut down the thousands of illegal dispensaries and black market growers dotting the country. But taming an illegal trade estimated at 5.3 billion Canadian dollars is proving to be daunting.

The Canadian government faces many challenges in stamping out the illegal marijuana industry. For one, there are too many black market shops like Mr. Briere's for the government to keep track of. And as sluggish provincial bureaucracies struggle to manage a new regulatory system, licenses to operate legally are hard to come by, giving illegal sellers added impetus to defy the law. At the same time, the police and the public have little appetite for a national crackdown. nytimes.com

With pot legalized, job openings surge in Canada's cannabis industry - including retail positions

Check out Canada's first week cannabis sales numbers province-by-province

Canada May Not Have Enough Legal Weed for a Year

Canadian Retail Sales Stumble at Modest Pace
Canadian retail sales keep stumbling along at a modest pace, according to the latest Statistics Canada data. For the 3 months ending August, total Canadian retail sales were up 3.7% on a non-adjusted basis. This is about half the 7.1% gain recorded for last year overall. retail-insider.com

Canada Store Openings
Graff Diamonds and Patek Philippe to Enter Canada with 1st Retail Stores

Matt & Nat Launches Aggressive Standalone Store Expansion
American Apparel returning to Canada with online store
BonLook expands to Western Canada with two locations in Metro Vancouver
Louis Vuitton Sees Weekend Crowds with Calgary Opening

Canada Post Strike May Hurt Canadian Workers as Businesses Shift Services

Saskatoon Co-op workers may hit picket lines Thursday

Click-and-collect debuts at 22 Walmart stores in Canada

Longo's tests self-checkout in Toronto

All-day breakfast boosts Tim Hortons' growth

Winnipeg, MB: Dramatic video shows police firing guns, tackling man to end standoff at beer vendor
A prolonged standoff at a beer vendor came to a dramatic end Thursday night when police used non-lethal bullets to subdue the suspect as he tried to flee. The incident began when police were called to The Bottle Shop, a beer vendor after a man entered the store armed with two knives. He said employees were able to leave the store while the man locked himself inside. At around 7:20 p.m. the police tactical team fired "less-lethal" bullets at the man and he began to run away. He appeared to be heading toward a nearby strip mall. A number of officers managed to tackle the suspect to the ground and took him into police custody. cbc.ca

RELATED: Beer store standoff suspect was involved in meth-fuelled crime spree

Toronto, ON: Two teenage males arrested in fatal strip mall shooting of security guard
Two teenage males have been arrested in connection with a fatal shooting at a strip mall near York University earlier this month. Dwayne McMillan was found dead with gunshot wounds to his upper body in the area of Keele Street and Canarctic Drive around 9:30 p.m. on October 2. The commercial building houses an auto-detailing shop on the main floor and an unmarked marijuana dispensary on the upper floor. On Thursday, police arrested two males in connection with the shooting. Jahnoye Carpenter, 19, of Toronto and an unnamed 16-year-old male have been charged with second-degree murder and arson to property. citynews.ca

Toronto man used 28 aliases in $500,000 cargo-redirection & identity theft scheme

Toronto, ON: Eaton Center shooter will argue he is "not criminally responsible" for deadly 2012 shooting

Leduc, AB: Police investigate massive $50,000 sporting goods theft

(Update) Edmonton, AB: Evidence in Mac's store killings can't support murder conviction, defence argues

Winnipeg, MB: Man arrested for assaulting loss prevention officer

Robberies & Burglaries

C-Store - Prince Rupert, BC - Armed Robbery
C-Store - Windsor, ON - Robbery
C-Store - Thunder Bay, ON - Burglary (ATM)
Jewelry Store - Hagersville, ON - Robbery
Variety Store - Toronto, ON - Armed Robbery (Yonge Street and York Mills Road)
Variety Store - Toronto, ON - Armed Robbery (Victoria Park and Van Horne Avenues)


Instart: Halloween Is the Spooky Start to Online Fraud Season
As holiday e-commerce increases in scale, transaction volume and complexity, criminals are opportunistically driving an increase in fraud. Recent attack trends documented by Instart include high-fidelity human behavior imitation used for credential stuffing attacks and fraudulent purchases with stolen user information, as well as native mobile API endpoint attacks, wherein APIs intended for use by mobile applications are abused directly by bots and attackers. In addition, hackers are now coordinating attacks across multiple botnets to obfuscate malicious activity, making it difficult to detect and block. At the same time, harmful applications and browser extensions are being hidden within trusted websites, exploiting user trust and complicating security efforts.

For online retailers looking to the ghouls and goblins of Halloween and the joy of the holidays that are just a few weeks hence, identifying the problem of online fraud is only the first step, observed Dan Druker, CMO for Instart. This year, we are expecting an uptick in cybercrime related to tags and cloud services. Retailers have been under pressure to add as many as 50 different tags and cloud services to deliver compelling functionality for their customers. But when your application is running across 50 different places on the internet, none of which you control, its very easy for the bad guys to hide. This year retailers should take special care to catalog and inspect every one of their tags and cloud services to make sure nothing nefarious is going on. globalbankingandfinance.com

How Vulnerable Is Your E-Business to Employee-Assisted Fraud?
When you think of employee-assisted (or occupational) fraud, you probably get the image of a retail worker sneaking merchandise out the back door of a shop or pocketing cash from the till. Employee-assisted fraud is not just a problem for brick-and-mortar sellers, however. It can impact any business that takes on seasonal workers, including e-commerce retailers.

Workers you bring on as seasonal help probably will not work in high-level positions within the company. They're in positions of lower authority. However, they tend to have more direct interaction with both customers and cash, and those conditions can enable fraud. This speaks to an important distinction when looking at occupational fraud among seasonal employees: It's mostly amateur fraudsters.

Eighty-six percent of people who committed fraud had no previous fraud activity, based on recent research. There are three primary reasons that explain why an otherwise-honest employee might commit fraud: Opportunity, Financial Trouble, Attitude.

This holiday season, you're facing the threat of ORC infiltration, plus the opportunism, desperation and resentment that are three primary triggers of employee-enabled fraud. That points to one very simple question: What can you do about it?

Fortunately, there is a solution. Here are five simple suggestions you can adopt that might help cut back on your exposure before and after the holidays:

1. Know Your Employee
2. Recognize Your Employees
3. Embody an Ethical Culture
4. Enable Employees to Report Fraud
5. Mandate Purchase Orders

DCI, QPS partner to expand fraud prevention services

Infiniti Research Unfolds the Future of Ecommerce by Highlighting the Top E-commerce Trends




Large-scale multi-state credit card fraud scheme busted
3 Miami Men Get Fed. Prison For Counterfeit CCs - Hitting Minnesota Sam's Club Stores

Pedro Lorenzo-Concepcion, 37, Miami, Florida, got 46 months. Jorge Consuegra-Rojas got 60 months. At the sentencing hearing, Judge Peterson recognized that Lorenzo-Concepcion was an active participant in a large-scale multi-state credit card fraud scheme and noted that Lorenzo-Concepcion continued to engage in credit card fraud in other states after the incident in Mauston. Judge Peterson also expressed concern that Lorenzo-Concepcion had served three years for a felony drug trafficking offense shortly before the credit card fraud activity in Wisconsin.

At the time of arrest after hitting a grocery store in Mauston, Wisconsin, a search of their vehicle revealed false identification documents, counterfeit credit cards, multiple cellular telephones, two computers, three flash drives, six credit card skimmers, a credit card reader/writer, and 280 gift cards valued at over $23,000.
A forensic search of the flash drives and computers revealed a total of 1,679 stolen credit card numbers, some of which had been used to purchase the recovered gift cards. The investigation also revealed that Lorenzo-Concepcion used fraudulent credit cards to conduct dozens of purchases at Sam's Club stores throughout Minnesota between September 9 and September 12, 2016, for a total of $8,072.38 in fraudulent charges. justice.gov

Redmond, WA: Two brothers/employees steal $200,000 worth of laptops from Microsoft
Two brothers are accused of stealing 180 new Surface laptops, worth about $200,000, from Microsoft's Building 88. Both worked for the company - one was a full-time employee and another was a vendor - and the two were behind a "high-dollar theft," according to Redmond Police. Court documents say 37-year-old Craig A. Garcia and his brother, 31-year-old Cordaro L. Galvan, are charged with felony theft. kiro7.com

Albuquerque, NM: Pawn Shop owner, employees bought, sold $5,000 - $10,000 of stolen goods
An undercover operation discovered the owner of an Albuquerque pawn shop was allegedly buying and selling stolen property. The owner and two employees at "We Buy It" were arrested Monday. According to court documents, an undercover officer went into the business on several occasions and delivered stolen property, some with security tags on them. APD said they discovered $5,000 to $10,000 worth of stolen goods inside the store. Tuesday, the "We Buy It" pawn shop doors were locked. Behind the red "closed" sign, store shelves were in disarray. Some devices, cases and products are scattered on the ground. The pawn shop owner Aaron Sheridan, and employees Fatu Ulale Jr. and Paul Skersick are all facing charges. According to court documents, not only did the shop buy stolen property, but they also allegedly made requested certain items. kob.com

South Easton, MA: Man stole thousands in razors from Targets in Easton, Taunton
Police are searching for a man they say has stolen thousands of dollars worth of razor blades from Target franchises across southeastern Massachusetts. A loss prevention officer from an Easton Target said the suspect has stolen around $2,000 in razor blades from his store. Easton police, who are investigating the case, say the suspect has also stolen from Target franchises in Hanover and Taunton. Easton police said the man has shoplifted on six or seven occasions since late August, typically concealing $300 to $800 dollars worth of razor blades before leaving.  tauntongazette.com

Pasco deputies are asking for the public's assistance in identifying two suspects in a theft at the Land O' Lakes Wal-Mart
On Oct. 29 at approximately 2:25 a.m., three unknown black males entered the Land O' Lakes Walmart. One of the males acted as lookout as the other two loaded up a shopping cart each. One of the two other males passed all points of sale without attempting to pay and exited the Walmart with $718 worth of merchandise and later abandoned the merchandise, which was later recovered, at the bus stop located in the far south side of the Walmart parking lot. The other male abandoned his cart of merchandise in the store before exiting.
Anyone who can identify either of the pictured two suspects is asked to call the Pasco Sheriff's Office Crime Tips Line at 1-800-706-2488, reference case #18-43265. facebook.com

Latah County, ID: Update: Northwest River Supplies Employee sentenced to 60 days, 14 years probation and $89,000 restitution; theft and sale of over $200,000 in merchandise

Racine County, WI: Mt Pleasant Police seeking 3 Walmart Shoplifters

Sonoma, CA: Friedman's Home Improvement nab tool thief; nearly $900 of merchandise recovered from multiple stores

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Shootings & Deaths

Spokane, WA: Update: Police arrest second suspect in deadly 7-Eleven
machete stabbing

Spokane police have arrested a second suspect in connection with last week's stabbing death outside a downtown 7-Eleven store. Alexander M. Maravilla, 32, was arrested on a second-degree murder charge on Friday. The charge stems from a large brawl in the early hours of Oct. 23 in the parking lot of the 7-Eleven at Division Street and Second Avenue in which Lance Ogle was stabbed in the heart with a machete. Witnesses told police they saw Andre A. Conway, 29, take a machete out of his backpack and strike Ogle in the chest. Conway, who has a lengthy criminal record, appeared in court on first-degree-murder and robbery charges and remains jailed on a $500,000 bond. spokesman.com

Robberies, Incidents & Thefts

The Time Bandits of Southern California
The true story of a ring of thieves who stole millions of dollars' worth of luxury watches-and the special agent who brought them down.

On a quiet Monday around noon, two men dressed in black stepped onto an ascending escalator in the underground parking lot of an open-air mall in Century City in Los Angeles. By the time they had reached the top, they'd pulled on ski masks and they were sprinting.

"They're coming, they're coming!" yelled Damian Dupre, a security guard at a Gearys luxury-watch boutique, when he saw the men running toward the store. Dupre is a solid six feet three inches, but as he rushed to lock the front door, the men were already pushing their way in. The first intruder, a short, stocky man carrying a rifle, burst in and his gun went off, shattering a glass case. "Get on the ground!" he yelled, and the guard and three other Gearys employees dropped to the floor. "Hurry up!" the man shouted to his partner. "We got to go!"

Just four days earlier, a man built like one of the robbers had visited Gearys, posing as a customer. Employees noticed his outlandish outfit-a checked blazer and long denim shorts-and the way he used his phone to film the case that held the priciest watches. Now the store's assistant manager, Daniel Arce, was lying facedown next to that same case as the robbers attacked it with hammers. Arce said a prayer as splinters of glass flew everywhere. I'm going to die, he thought.

Less than two minutes had passed before the robbers fled with 36 watches, worth $1.6 million. They sped away in a stolen gray Toyota that police would soon discover outside the mall. Its doors were flung open. Its engine was still running. And the thieves were long gone. Read full story: gq.com

Beckley, WV: Bystanders and Papa John's employee help police foil
an Armed Robbery

West Virginians show their strength and solidarity in confronting a criminal in Beckley. It began just on Monday, before 8 p.m., when officers were called to the Save-A-Lot. The initial call came in as a fight, but the details in the case developed quickly. Investigators said the suspect, Kevin Saunders. had stolen several packs of cigarettes by attacking the store clerk. That is when a concerned citizen stepped in and was hit by Saunders.

The suspect then went across the parking lot toward Papa John's. Witnesses and victims told police Saunders attacked a woman on the way and tried to steal her car. That is when another bystander stepped in and prevented the robbery allowing the woman to get away. Officers said Saunders tried to take two other vehicles but was unsuccessful when the victims refused to cooperate.

When the suspect finally arrived at Papa John's, investigators found he had threatened to shoot employees and took an undisclosed amount of cash. As he ran from the store, he ran into Beckley Police Officers. In an attempt to get away he was tased and ultimately taken into custody by Ptl. Nicole Rowe with the help of a Papa John's employee. wvnstv.com

Morrisville, NJ: NJ woman charged with stealing $430K from Morrisville business; even gave herself 3 pay raises
Yolanda M. Torres, 43, of Hamilton, Mercer County, began stealing almost immediately upon getting her job in July 2016 at Shu Dental Laboratory, Inc. She was arraigned Tuesday on 10 felony counts stemming from the alleged theft. A review of the company's accounting books showed Torres issued 188 unauthorized checks, each fraudulently stamped with the signature of the company's owner. Investigators determined that she falsified documentation to make 177 of those expenditures appear legitimate. The other 11 had no supporting documentation, according to the DA's Office.

She also gave herself three unauthorized raises, increasing her pay by $.50 an hour in September 2016 and again by $.50 in November 2016. The following June, she gave herself a pay increase of $1 per hour. Through these wage increases, Torres collected an additional $6,114, authorities said. theintell.com

Puyallup, WA: Suspect bit off a Loss Prevention Agent's ear after being caught stealing polo shirts
A security guard had part of his ear bitten off when he tried to stop a man stealing polo shirts from a Puyallup store. The guard first noticed three young men in the store Friday and decided to watch them closely. He saw an 18-year-old fold up two polo shirts, go into a changing room and come out with them hidden in his jacket. When the man and his two friends left the store without paying, the guard followed the would-be shoplifters and stopped them.

The guard was wrestling with the 18-year-old on the ground when the suspect's two friends allegedly began hitting the guard and threatening him. As the guard tried to flip the suspect over, the suspect bit his ear, "latching onto it," shoved his hand in the guard's mouth and grabbed his hair, records show. "As the Loss Prevention Officer tried to get the defendant to let go of his ear, the defendant bit harder, tearing a portion of the ear lobe." The guard needed 10 stitches to reattach his ear. On Monday, the 18-year-old pleaded not guilty to first-degree robbery and second-degree assault. thenewstribune.com

Brown Deer, WI: Three women arrested for attempting to fight employee at Walmart

Houston, TX: Man arrested following 'under scanning' at Walmart, fought with Loss Prevention

Hall County, GA: Suspect arrested in three 2016 burglaries tied to All About Money gang investigation

Crossville, TN: Two additional suspects indicted in Dollar General Robbery

Spartanburg, SC: Beer, steaks and jewelry go flying after SC shoplifting suspect crashes moped

Sentencings & Charges

Tobacco Wholesaler Admits Smuggling Scheme - Defrauding CT $5.8M+ in Taxes
Between January 2013 and April 2017, KDV acquired almost $12 million in tobacco products, primarily cigars and other products, from suppliers in Pennsylvania, and distributed these products to hundreds of customers in Connecticut that stocked tobacco products for retail sale. justice.gov

Washington Man gets 30 Months For $64K Credit Card Fraud in CT

Waterbury Man Admits Committing Multiple Retail Violent Armed Robberies

Menlo Park, CA: Man sentenced to 12 years in prison for two Pharmacy Robberies

Marietta, OH: Man pleads guilty to robbing McDonald's; facing 11 years

Longview, TX: Man sentenced to 9 years in prison for stealing steaks from Grocery store; has 17 prior theft convictions

Stone Mountain, GA: Two men sentenced in Armed Robbery that netted $30K worth of devices from AT&T


C-Store - Granite Falls, NC - Armed Robbery
C-Store - Santa Barbara, CA - Armed Robbery
C-Store - St. Landry Parish , LA - Armed Robbery
C-Store - Terre Haute, IN - Armed Robbery
C-Store - Massillon, OH - Armed Robbery
C-Store - Sanford, ME - Robbery
Clothing Store - Cumberland County, ME - Armed Robbery
CVS - Tysons Corner, VA - Robbery
Cupcake Shop - Cleveland, OH - Armed Robbery
Family Dollar - Eaton County, MI - Armed Robbery
Foot Locker - Glendale, NY - Armed Robbery
Gas Station - Berea, KY - Armed Robbery
GNC - Patchogue, NY - Robbery
Grocery - Beckley, WV - Robbery
Grocery - Houston, TX - Armed Robbery
Grocery - Reno, NV - Robbery (Bank)
Hotel - Hartford, CT - Armed Robbery
Liquor Store - Quakertown Borough, PA - Robbery
McDonald's - Chesapeake, VA - Armed Robbery
McDonald's - Hartford, CT - Armed Robbery
Metro PCS - Columbus, OH - Robbery
Pawn Shop - San Antonio, TX - Armed Robbery
Restaurant - Beckley, WV - Armed Robbery
Restaurant - Santa Barbara, CA - Armed Robbery
7-Eleven - Lee County, FL - Armed Robbery
7-Eleven - Burbank, CA - Armed Robbery



Daily Totals:
26 robberies
0 burglaries
0 shootings
0 killings




David Wallace
promoted to Senior Analyst, Fraud Detection & Investigations for Staples

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Making an Impact as a Mentor, How Workplaces Benefit from
Mentorships and How a Mentor Can Help You Reach the C-Suite


How Leaders and Employees Should Harness the Power of Mentorship
As companies work to attract and retain top talent, they should use the benefits and power of mentorships. A successful mentorship program can encourage values and increase productivity and loyalty. Start small

The Best Way to Make a Huge Impact as a Mentor
Through mentoring your employees, you can have a huge impact. You can also make an impact outside of your organization through mentorships with young adults and students. Through sharing your wisdom and skills you know, you could change their life. They are the future

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Managing your career upwards is a difficult task because it requires absolute commitment in every situation and environment. You have to stay focused on what's in front of you and make sure your attitude matches your actions. And remember, always be West Point. There's a reason every single U.S. citizen respects graduates of West Point. It's almost a universal code so to speak. Clean, crisp, sharp, alert, intelligent, and always a gentleman or gentlewoman.

Just a Thought,
Gus Downing


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