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January 23, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Target hackers will be tough to find
The hackers behind the recent Target data breach are likely a world away and nearly impossible to find. That's the consensus among outside cybercrime experts as Target, the Secret Service and the FBI continue their investigation of the pre-Christmas data heist. But in cases where such a massive amount of information is stolen, experts say criminals generally divide the data into chunks and sell the parcels through online black markets, creating an even more complicated global web of crime. (Source scsun-news.com)

Could EMV Have Prevented Recent Security Breaches?  Experts disagree over whether Europay, MasterCard and Visa (EMV)-based credit cards could have prevented the recent breaches that affected millions of Target Corp. and The Neiman Marcus Group customers. Although today’s "EMV 101" webinar, presented by the EMV Migration Forum, did not tackle these specific breaches directly, presenters did say EMV cards are superior to magnetic stripe cards and can help prevent a variety of potential breaches. EMV-enabled cards are superior because the chip allows for a risk assessment to be performed when a transaction is taking place at the POS, Berg explained. "Once the risk assessment is performed, a decision is made to approve the transaction or not," he said. "Also, EMV security mechanisms can help monitor skimming and data breach threats." (Source csnews.com)

Global Cybercrime Dominated by 50 Core Groups, Crowdstrike Report Finds  Cybercrime in 2013 was dominated by a core of around 50 active groups, including Russian and Chinese 'threat actors' whose activities are only now coming to light, a report from monitoring firm CrowdStrike has found. (Source cio.com)

Target cutting 475 positions and eliminated 700 vacant jobs - that's 1,175 total jobs gone  The company has struggled recently. First, like other middle-priced retailers, it has lagged the performance of very high-end and very inexpensive retailers. The 1,900 store chain employs 361,000 people, Snyder said. The affected workers will get at least 45 days severance, though longer-tenured workers may get more, she said. The company is continuing to recruit in some areas, especially to support its online and mobile commerce initiatives, she said. Snyder declined to say what parts of Target bore the brunt of the cuts. Local outlets in the Twin Cities reported large cuts in marketing, finance and technology services functions. (Source freep.com)

Lawsuit Claims Apple Illegally Collected Customer Info  A high-profile consumer rights attorney has filed a lawsuit against Apple on behalf of three men who claim retail store employees refused to process their credit card transaction unless they provided personal identification, including their residence ZIP Code. It also claims that Apple has been selling the plaintiffs’ personally identifiable information (PII) to other companies without compensating the men. As a condition of using their credit cards,” the lawsuit states, “Plaintiffs were required by Apple to enter personal identification information associated with the credit card, including their full and complete zip codes. (Source ifoapplestore.com)

Macy’s continues RFID rollout in 2014
Macy’s is now using RFID on all shoe displays at 850 stores, which has allowed it to increase shoe display compliance from 65-70 percent to nearly 100 percent. Last year Macy’s added men’s shoes and luggage to the display sampling solution. The men’s department is a very penetrated category, with most dress shirts, slacks, suits, belts and fashion accessories carrying RFID tags. Some specific vendor categories within home furnishings are also being tagged. Pam Sweeney, senior vice president of logistics systems at Macy’s, says that additional products will be rolled out in 2014, although the main focus is to increase penetration with existing categories being tagged. Sweeney says that 50 percent of Macy’s total replenished category vendor partners have committed to using RFID at some point in time. (Source rfid24-7.com)

TycoIS, ISC lawsuits settled
A lawsuit involving integration giant TycoIS and Integrated Security & Communications over alleged employee poaching and trade secrets stolen has been settled, Michael Thomas, ISC CEO told Security Systems News. Thomas is unable to discuss details of the settlement offer, but said he’s “happy that this is behind us, as it was a distraction for the business from doing what we are passionate about. Now we are able to continue with our growth and expansion of the business at an even faster pace.” The initial lawsuit was filed by TycoIS in May. In June, ISC filed a counterclaim. At the center of the lawsuit were three current ISC employees who were former employees of SST, Thomas Catagnus, John Pichola and Joel Richman. SST was the platform for ADT (Now TycoIS) to launch into the systems integration business. (Source securitysystemsnews.com)

Sears moving to Shop Your Way - order online pick up at store membership - big time  In Eddie Lampert's blog posted this week, he noted that data from the 2013 holiday season is “feeding a growing consensus: store traffic has decreased significantly across the industry and may never return to previous levels.” His initial point was that Sears Holdings launched a “major transformation” of Sears and Kmart years ago because it saw that consumers had “permanently changed how they shop” due to the Internet, social networking and mobile devices. That change, the Shop Your Way membership program, entails buying online and picking up in the stores. It’s what Lampert refers to as the foundation for Sears’ integrated retail strategy. (Source wwd.com)

Online e-retailer hit by hackers for payment data  Criminals have stolen personal and credit card information from online customers of Easton-Bell Sports Inc., the sports equipment e-commerce and store operator says today. The announcement represents the latest retail data breach to hit U.S. consumers, though it is the first one in recent months in which the data stolen came from online shoppers. The payment card numbers and other data stolen from Target Corp. and The Neiman Marcus Group Inc. came from their stores. The company says that “vendor servers were subject to a malicious software computer intrusion” that enabled access to data for e-commerce customers. The information stolen involves online purchases made between Dec. 1 and Dec. 31, 2013 and “may have included” names, home and e-mail addresses, telephone numbers, credit card numbers and the three- or four-digit security codes on credit cards that are often used to confirm purchases. The retailer offered no further immediate details about the stolen information. (Source internetretailer.com)

SW24, NYPD team up on video surveillance
SecureWatch24, a full-service security company here, has been awarded a $1 million contract to install 80 camera boxes in two Brooklyn neighborhoods—one of which was the setting of a high-profile crime in 2011. The video from all 80 cameras will be streamed to the NYPD’s Real Time Crime Center as part of SW24’s public-private partnership, the Citywide Safety Initiative. (Source securitysystemnews.com)

US Investigations Services LLC accused of filing 660,000 flawed background investigations to U.S. Government  The Justice Department on Wednesday accused the government's largest private security background check contractor of defrauding the country of millions of dollars by methodically filing more than 660,000 flawed background investigations—40% of the cases it sent to the government over a four-year period. Prosecutors accused former top US Investigations Services LLC executives of directing improper practices that became a subject of internal jokes among company officials who helped secure millions of dollars in bonuses from the U.S. government. "Flushed everything like a dead goldfish," the complaint quoted one USIS official as writing to two of the company's top quality control officials in 2010. In a statement, USIS said that "integrity and excellence are core values" at the company, which has 6,000 employees. (Source wsj.com)

New York Officials Arrest Man in Famous 1978 Lufthansa Heist - that was the basis for "Goodfellas" movie  Three decades after the heist at John F. Kennedy Airport, authorities are charging one man in connection with the infamous caper as well as four others for unsolved crimes, according to court records. The investigation dates back to December 1978, when thieves stole cash and jewelry from a Lufthansa cargo building at the airport—among the largest robberies in the nation's history. An organized crime member who acknowledged his role in the case became an informant in the 1980s—and his story would be the basis for the movie "Goodfellas." (Source wsj.com)

Self checkouts taking greater hold in UK

eBay reports 13% sales growth, rejects PayPal spinoff

Lookingglass Cyber Solutions named finalist in Global Excellence Awards

Chinese Internet Traffic Redirected to Small Wyoming House  In one of the more bizarre twists in recent Internet memory, much of the Internet traffic in China was redirected to a small, 1,700-square-foot house in Cheyenne, Wyo., on Tuesday. A large portion of China’s 500 million Internet users were unable to load websites ending in .com, .net or .org for nearly eight hours in most regions of China. (Source yahoo.com)


Quarterly Same Store Sales Results

Delhaize Group (Food Lion) U.S. Q4 up 2.8% with sales up 2.6%
McDonald's Q4 down 0.1% with revenue up 2%

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NE ORC Session:
Law Enforcement and Retailers Partner to Combat ORC
Part 2

John Dell'Anno and Shaun Frank, DIV Manager of AP from Wegmans food Markets and Tyler Barrus, retired Monroe County Sheriffs Department, talk about ORC and how both law enforcement and retailers can partner to battle ORC. They talk about how the partnerships of law enforcement and retailers helped them with their criminal busts especially in two operations that they were involved with. They stress the importance this partnership has in gaining and sharing information about criminal activity, as well as helping to dig up information and eventually shutting down ORC criminal activity.

Upcoming Episodes – Be on the lookout as we re-release some of our most recent episodes as we gear up for more to come in season 2.

Jan 22, 23, 24: NE ORC Session: Law Enforcement and Retailers Partner to Combat ORC

Jan 27, 28, 29: Albuquerque Police Department Interview

Jan 30, 31: Interview with Lisa LaBruno, Senior Vice President Retail Operations at RILA

Feb. 3: NE ORC Symposium and Trade Show: Gus Downing

Feb. 4, 5, 6, 7: NE ORC Symposium and Tradeshow Keynote Address

Feb. 10, 11, 12: NE ORC Session: Joe LaRocca, Senior Advisor at RetaiLPartners

Feb. 13, 14: Interview with Tatiana Sandino, Professor Harvard Business School

Episodes filmed last week in NYC will start airing on Monday, February 17th.
Stay tuned to see when your favorite episode will be released!

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Press Releases

Combating data theft in retail – will banks step up?

By Bill Thorne, SVP, Communications and Public Affairs

When it comes to protecting customer data, there is more than one stakeholder. As NRF President and CEO Matthew Shay’s letter to Congress reiterated, retailers recognize the need to continue investing in new point-of-sale-technology and take other precautionary measures. But the financial industry also has a critical role to play in making sure their cards are secure.

The safest cards are encrypted with PIN and chip technology, which is widely used in Europe. Unlike signatures, PINs can be encrypted, so that even if the data is grabbed, as it was in the most recent case, the encrypted PIN serves as an additional layer of security to help protect consumers. But in America, most cards are issued with signatures and magnetic strips, making customer information vulnerable to criminals. Hackers are using 21st century technology to take advantage of 20th century cards. As long as cards are issued with signature and magnetic strips, theft will occur. According to Verizon’s 2013 Data Breach report, 37 percent of breaches affected financial institutions, up from the previous year’s report. Less than a quarter of data breaches occurred in retail environments and restaurants in the same period, a decline from 2012.

During Retail’s BIG Show, Shay and NRF Board Chairman Stephen Sadove addressed recent fraud committed against retailers and their customers on CNBC. They emphasized that retailers are prepared to put additional resources behind preventing data theft. Shay and Sadove aren’t alone. Costco co-founder Jim Senegal, HSNi CEO Mindy Grossman and Macy’s Chairman and CEO Terry Lundgren have all said that these incidents are a wake-up call to take further steps to prevent future cyber attacks – their customers and their businesses are at stake.

The question remains: is the financial industry ready to do the right thing by their customers as well?

*Published on the NRF Retail's BIG Blog


Retail Crime News
Sponsored by Sony

Man, Woman Sought In Target Credit Card Fraud In Concord, NH  Police say a man and woman tried to buy a pair of $1000 gift cards at a Target in Concord, New Hampshire, using two bogus credit cards with two other people’s credit card numbers. (Source cbslocal.com)

Armed robberies at three Game Stop stores in Henderson, Nev.- two suspects sought  Henderson Police are seeking the public’s help to identify two men involved in a series of armed robberies at three Game Stop retail stores that began last week. (Source mynews3.com)

Suspect arrested in smash-and-grab burglary spree on I5 corridor in Bellingham, Wash.  Police say 44-year-old Douglas Leif Jones from Mount Vernon committed more than two dozen business break-ins from Bellingham to Burlington since summer. Most of the business had their front glass doors broken by a big rock and lost between $100 and $1,000 in cash. (Source komonews.com)

Attempted jewelry store robbery in Sumter, SC ends in suspect shooting/ killing himself  Police in Sumter are investigating the attempted armed robbery of a jewelry store that ended with the suspect shooting himself in the head. Sumter Police say officers were called to Galloway and Moseley Fine Jewelers for an attempted armed robbery Thursday morning. Police say just before 8 a.m., the man tried to rob two employees as they opened the store. Chief Russell Roark says one of the store employees holds a concealed weapons permit and was armed. Roark says the employee drew his gun in self-defense and pointed it toward the suspect. Roark says the suspect turned his own weapon to his head and shot himself. The suspect died at the scene. (Source wistv.com)

Suspects wanted by Palm Beach, FL Sheriff’s for fraudulent purchases worth $83,000  Palm Beach County Sheriff’s detectives are looking for a group of people allegedly involved in credit card fraud that has resulted in more than $83,000 of merchandise losses in 20 stores across south Florida. (Source palmbeachpost.com)

Shoplifter bites Best Buy employee in Howell, NJ  Best Buy security saw Ashley Mason, 51, taking prepaid Samsung phones and putting them in a backpack, when they tried to stop him. While trying to detain Mason, he opened the backpack and tossed a phone at one of the loss prevention officers. An altercation ensued and Mason bit one of the security officers on the hand. (Source nj.com)

Raleigh man had 22 fake credit cards

Salt Lake City cops - suspect stole credit card info with ‘skimming’ device on postage vending machines

Michigan State University Police Investigating Credit Card Fraud at Campus Bookstore

Cargo of clothing items stolen, recovered in Florida

Target shoplifter in Omaha, NB charged with Assaulting a Police Officer, Criminal Impersonation, Possession of a Financial Transaction Device and Unauthorized use of a Financial Transaction Device

Walmart multiple television thief pleads guilty to felony count in Laramie, WY

Walmart Associate busted for theft of $3000 in cash from her register in Selinsgrove, PA

Walmart employee accused of stealing $6000 over a month’s time from Aiken, SC store

Former Sprint employee accused of felony theft from her store in Elyria, OH

Smash and grab suspect wanted for at least 4 crimes in Lincoln and St. Charles Counties, MO

Rocklin, CA Police Arrest Two after Strong Armed Robbery and Short Pursuit from Walmart; teenage suspects were stealing alcohol

Dothan, AL Police arrest a felony shoe thief; suspect stole $600 worth of product from ‘Shoe Station’

Zales Outlet hit with a Grab and Run in Tulalip, WA for a men’s diamond ring valued at $3700

Kay Jeweler at the Dolphin Mall in Miami ht with a Grab and run of 2 pre-owned Rolex watches, total value of $45,000

Robberies and Burglaries

Violent assault and robbery at an El Cajon jewelry store
Suspect in Frederick, Va. jewelry store robbery guilty of federal gun charge
Police Investigate 2 Armed Robberies Committed During Storm in Burlington, N.J.
2 armed robberies in Danville, IL.
Walmart armed robbery in Cordele, GA
Man pleads guilty to 8 burglaries in Kane County, IL.
Albertsons – Armed Robbery – Spokane, WA – demanded oxycodone, no injuries
Circle K – Armed Robbery – Urbana, IL – no injuries reported
Circle K – Armed Robbery – Destin, FL – man w/ knife, no injuries
Corner Pantry – Burglary – Naperville, IL – suspect entered through the roof top
Dollar General – Burglary – Socastee, SC - thief stole the store safe, $3600
Rite Aid – Burglary - Alexandria, LA - suspect apprehended, attempting to steal drugs
Rock Creek Pharmacy – Armed Robbery – Jefferson County, AL –video of suspect demanding drugs and cash
Unocal Station – Armed Robbery – Redlands, CA – one arrested, police seeking 2nd suspect
U.S. Cellular – Armed Robbery – Columbia, MO – Police arrested two suspects
Walgreens – Armed Robbery – Des, Moines, IA – suspect w/ knife, no injuries
7-Eleven – Armed Robbery - Newark, DE - suspect apprehended armed with a BB gun, no injuries


ORC News
Sponsored by Protection 1

Woman arrested for ORC in Bell County, TX
Bell County constable on Tuesday arrested a woman wanted by Williamson County Sheriff’s Department in connection with a charge of organized retail theft between $1,500 and $20,000. Precinct 3 Constable Thomas Prado arrested Myra Yvette Perez, 40, of Temple. (Source tdtnews.com)

3 adults and two teens were working together to steal from Bealls, Ross and Marshalls in Jupiter, Florida  Police say three adults and two teenage boys worked together to shoplift ties, wallets and more from the Bealls department store in Jupiter, before being stopped by store security Tuesday. And a search of their car turned up items, tags still attached, from Ross and Marhalls stores. (Source palmbeachpost.com)

2 more charged in Kohl’s thefts in Fort Wayne, Indiana  Two more people were charged Wednesday in a series of thefts and scams at local Kohl’s stores. On Tuesday, Shane L. Cavinder, 37, was charged with one count of corrupt business influence and three counts of felony theft. On Wednesday, prosecutors charged Cavinder’s girlfriend, Jamie Norris, 33, and Brandy Parrish, 38. Parrish and Cavinder are accused of switching price tags of high-priced shirts with items on the clearance rack and then returning those high-priced items to a different Kohl’s store for refunds with Norris’ help. (Source journalgazette.net)

Darien, CT Police seeking suspect in the theft of 37 packages of Prilosec for a CVS store  A lightening-fast shoplifter only took several minutes to enter CVS last weekend and then leave with 37 packages of Prilosec (a pill for digestive problems) and several electronic toothbrushes. The total amount taken from the store. was $1,072.63 worth of Prilosec, a Sonicare toothbrush priced at $82.99, two Oral B toothbrushes with $307.98, and four other Oral B toothbrushes $339.96. Total price: $1,803.56. (Source patch.com)

“Protection 1 is proud to be sponsoring the D&D Daily ORC column to ensure the LP industry gets the information, education and critical data they need to fight this  national epidemic.” Rex Gillette, VP Retail Sales, Protection 1.

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Vendor Spotlight

The Analytics Ecosystem for Retail

Verisk Retail — a leading source of information about risk — provides systems and services to help retailers prevent loss, manage risk, and ensure compliance with laws and regulations.

Data Management and Analytical Services

Verisk offers data management and analytical services to help retailers manage and analyze their own data.

Aspect Loss Prevention

Exception-based reporting for retail loss prevention

Aspect Loss Prevention serves retailers with advanced analytical systems that can identify fraud, suspicious activity, employee compliance issues, and more. Aspect systems identify “exceptions” to normal point-of-sale activities. Such exceptions can indicate employee theft and fraud, as well as training deficiencies and operational flaws. Aspect also offers web-based reporting, protection for credit card transactions, linking of transaction data with security camera footage, integration with case management systems, and more.

Asset Protection Information System

Data management and advanced analytics
The Asset Protection Information System (APIS) is a case and data management platform used by loss prevention and risk management divisions at many of the world’s leading retailers.

Databases for Crime Prevention
Verisk offers two unique crime databases that collect, share, and analyze crime data to support law enforcement and reduce the economic effects of crime for retailers and their supply chains.

The Law Enforcement Retail Partnership Network

Combating organized retail crime

The Law Enforcement Retail Partnership Network (LERPnet) is a national database and secure information-sharing system for retail crime incidents. The system allows retailers to share and analyze retail crime data in a controlled and secure environment. LERPnet connects retailers with local, regional, and national law enforcement agencies.


The cargo theft prevention and recovery network
CargoNet is a national database and information-sharing system managed by crime analysts and subject matter experts. The system is designed to prevent cargo theft and improve recovery rates through secure and controlled information sharing among theft victims, their business partners, and law enforcement. CargoNet offers advanced analytics, integrated databases, a theft alert system, 24-hour support for investigations, and a tractor/trailer theft deterrence program.

Learn more about the Verisk Retail Analytics Ecosystem.


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Get Your Employees to Work 'Like Nobody's Watching'  When your employees are in the zone, they can be inspiring and empowering to watch; the way they are so focused on what they are trying to accomplish, even doing things that may seem dangerous, for the sake of innovation. In their eyes, there is no failure. Use these ways to encourage your team members to take more risks. (Reward risks)

11 Ways to Stay Motivated While Working From Home  If you get to work from home on a regular basis, or even every so often, you may hear from other people that they couldn't perform your job. The self-discipline that it takes, some may not have. How could you get anything done without someone to push you, or hold you accountable? Here are some tips to keep your nose to the grind. (Set a time to wake up)

8 Common Causes of Workplace Demotivation  Employees or leaders completely unmotivated or disengaged at work? It could be costing your company a lot of money in lost productivity! Figuring out the root cause of this disengagement is the first step. Chances are, it falls under one of these reasons, that so many people just don't like their job. (Micromanagers beware: you're reason #1)

Why Positive Encouragement Works Better Than Criticism  It's no secret that when your teams are happy, they are more likely to perform better and be more productive at work. There is a scientific reason behind that: negative emotions inhibit your concentration and your brain begins to actually prepare your body to save you. Improve positivity in your workplace by focusing on these three things. (Starts with empathy)

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Tip of the Day
Sponsored by Vector Security

For all the people that complain about never catching up and always say I'll never catch up - I've got so much to do and seem like they're carrying the world on their shoulders. All I have to say is - If You ever catch up they'll catch up to you. And then you're done. So thank the lord you've got so much to do because somebody right behind you is waiting for you to slip.

From a guy who's been nipped at my whole career and even bitten a few times - Oh well - it keeps you running

Just a Thought,
Gus Downing

Gus Downing

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