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January 24, 2014

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News Brief
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Data Breach Records Exposed Hit New High in 2013 - 740 Million-Plus Records  Cybercriminals exploiting weaknesses in how users employ passwords is a significant factor behind an increase in records exposed in breaches during 2013, says Craig Spiezle of the Online Trust Alliance. Cybercriminals are getting very, very smart," Spiezle says in an interview with Information Security Media Group. "They're recognizing that consumer are sometimes lazy and they reuse passwords and user names. So if they're able to compromise a very large target, then they use those to compromise other accounts downstream." Spiezle says the number of data breaches in 2013 was about the same as in 2012, but the amount of credit card numbers and Social Security numbers exposed in breaches grew five-fold in just one year. (Source govinfosecurity.com)

Target CFO to testify before Senate in data breach investigation  Target Corp’s chief financial officer will testify before the U.S. Senate Judiciary Committee on Feb. 4 about a massive data breach in what is likely to be the first time the retailer publicly answers questions about the unprecedented attack. Representatives of the Federal Trade Commission, the Secret Service and the Department of Justice are also slated to testify at the hearing, according to the committee’s schedule. (Source wtax.com)

Lawsuit claims - Target's delay in notifying consumers of breach caused banks significant losses  Putnam Bank filed their class action lawsuit against Target claiming the above. Bringing into question how much time Target took to notify consumers - the primary bulls eye in all of the cases to date for all breaches. After all once the cat's out of the bag retailers are super concerned how it'll impact sales. Especially when the holiday season is right at the door. The issue is what's the process internally and who makes the final call to go public. Govinfosecurity says the latest legal actions are merely the tip of the iceberg. At the end of the day this will cost billions. (Source retailfraud.com)

Neiman Marcus web site post - 1.1 million accounts hacked  We deeply regret and are very sorry that some of our customers' payment cards were used fraudulently after making purchases at our stores. Here is the information we have learned so far, based on the ongoing investigations:

● Social security numbers and birth dates were not compromised.
● Our Neiman Marcus and Bergdorf Goodman cards have not seen any fraudulent activity.
● Customers that shopped online do not appear to have been impacted.
● PINs were never at risk because we do not use PIN pads in our stores.

While the forensic and criminal investigations are ongoing, we know that malicious software (malware) was clandestinely installed on our system. It appears that the malware actively attempted to collect or "scrape" payment card data from July 16, 2013 to October 30, 2013. During those months, approximately 1,100,000 customer payment cards could have been potentially visible to the malware. To date, Visa, MasterCard and Discover have notified us that approximately 2,400 unique customer payment cards used at Neiman Marcus and Last Call stores were subsequently used fraudulently. (Source neimanmarcus.com) (Source internetretailer.com)

Neiman Marcus says malware defeated its security  Neiman Marcus was unaware attackers had harvested payment card details until six weeks after the activity had ended, when its merchant processor zeroed in on a fraudulent spending pattern. Neiman Marcus characterized the malware involved as "complex" and described in part how it collected card details despite security measures that the retailer says exceeded industry recommendations. (Source csoonline.com)

FBI warns retailers to expect more credit card breaches  The FBI has warned U.S. retailers to prepare for more cyber attacks after discovering about 20 hacking cases in the past year that involved the same kind of malicious software used against Target Corp in the holiday shopping season. The U.S. Federal Bureau of Investigation distributed a confidential, three-page report to retail companies last week describing the risks posed by "memory-parsing" malware that infects point-of-sale (POS) systems, which include cash registers and credit-card swiping machines found in store checkout aisles. "We believe POS malware crime will continue to grow over the near term, despite law enforcement and security firms' actions to mitigate it," said the FBI report, seen by Reuters. "The accessibility of the malware on underground forums, the affordability of the software and the huge potential profits to be made from retail POS systems in the United States make this type of financially motivated cyber crime attractive to a wide range of actors," the FBI said. (Source yahoo.com)

Wal-Mart says it will match Amazon service in 2 years  Wal-Mart is building warehouses across the U.S. used to distribute online orders, and is building more online distribution centers. Wal-Mart global e-commerce CEO Neil Ashe said within two years, his company will match Amazon's (NASDAQ: AMZN) quick shipping time and range of products. (Source bizjournals.com)

C-stores account for 34.3% of all U.S. retail outlets

Kmart to close two Philadelphia stores

California Judge rules Raley's store manager liable for shoplifter injury  The clash happened when plaintiff Johnny Ramirez was stealing a bottle of rum from the Windsor Raley’s, according to a tentative ruling from Sonoma County Superior Court Judge Arthur Wick. Ramirez tucked the glass bottle into his waistband and ran out the door, only to be stopped by manager Shea Carpenter, who tackled him to the asphalt, Wick wrote. The bottle broke when he hit the ground, causing injury that required emergency surgery. Ramirez later sued the grocery chain and the manager for monetary damages. He argued Carpenter acted with negligence because he was aware of the fact that the bottle was in his waistband and could break if he tackled him. Under the law, negligent behavior warrants higher punitive damages. This week, Judge Wick said there were no grounds for Ramirez to seek punitive damages from the store. But he said Carpenter could be held liable because he knew the consequences of his actions and failed to avoid them. The lawsuit illustrates a tension retailers face in preventing loss while avoiding being sued by thieves. Chris McGoey, a Los Angeles-based security consultant, says the law allows merchants to use force to detain shoplifters. It just has to be applied reasonably. (Source pressdemocrat.com)

Corporate Executives and the New Secret Weapon: Learning Data  If you ask most C-level executives in 2014 what keeps them awake at night you’ll likely get a combination of the following: sales growth, competitive positioning, and product innovation. However, for the savviest executives today, a rapidly emerging concern is heading to the top of the list: employee motivation and retention. See the rest of this article written by Carol Leaman, CEO of Axonify, next week here in the Daily. (Source learningsolutionsmag.com)

Foscam IP surveillance cameras web interface hackable - simply pressing "OK" in dialog box

Houston Mattress Store's Ill-Advised NFL Promotion Ends Up Costing $600,000  If you're a store owner looking to capitalize on a football game, you should probably go with the time-tested shutout promotion. This contest encourages customers to buy goods with the promise that, if a certain team does not score any points, customers will get their money back. It hardly ever happens (although it's not foolproof). Not only did Jim "Mattress Mack" McIngvale, who owns Gallery Furniture in Houston, shun that contest, he and his staff gave customers a much, much easier option for the AFC and NFC championship games. All customers had to do in order to get their money back was buy at least $5,000 worth of furniture and correctly select the winners of each contest. That's it. Both favorites advanced to the Super Bowl and about 100 people got their money back. That totaled more than half a million dollars in refunds. (Source thepostgame.com)

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eBay News

eBay India launches ‘9 Hour Delivery’ service in Mumbai

CHENNAI: Online marketplace eBay India has launched its '9 Hour Delivery' service in India. This service delivers purchases of select technology products within nine hours of it being purchased on eBay India, and a special microsite features products available under this service, according to a statement from the company.

"The '9 Hour Delivery' concept gives consumers a faster and improved shopping experience. This is the first phase of the service, which is available to our Mumbai customers on popular technology product categories and will be scaled to key cities in India in a few months. The service is a good option for convenience oriented savvy shoppers who are in a hurry to get their hands on their favourite gadgets," Vidmay Naini, business head - technology, PaisaPay & PowerShip, eBay India, said.

Read more here.

For further information on PROACT, email inquiries to PROACT@eBay.com.

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Press Releases

Industry Veteran Joins Rolland Safe & Lock
Joe Mignone named VP & Director of Global Sales

Dallas, Texas - January 23, 2014 - Rolland is pleased to announce we have hired Joe Mignone who is joining the organization as Vice President and Director of Global Sales. In his new role, Joe will be responsible for leading the organization's sales efforts in the U.S. and abroad.

Joe brings over a quarter century of experience in supporting the Loss Prevention & Security community in various leadership roles with companies including ADT/Tyco, Ingersoll Rand and most recently at Bass Security.

About Rolland
Rolland is an international security company headquartered in Dallas, TX. Since Rolland’s founding in 1905, the business has grown from a regional locksmith service to a global leader in security solutions. No two industries, and no two businesses, have the exact same security needs. Rolland seeks to truly identify what keeps our customers awake at night and remedy that concern through a dedicated team that is inspired to serve.


Canadian Push
Sponsored by Vector Security

Canadian pharmacists - Looking down the barrel of guns, knives and home-made flame throwers - Criminals hitting pharmacies are using 'increasingly unusual weapons'   Brandishing weapons ranging from guns and knives to home-made flame throwers, criminals continue to siphon away a large chunk of the nation’s powerful narcotic painkillers, Health Canada figures indicate. Hundreds of thousands of units of oxycodone, morphine and other “opioids” are still being robbed, pilfered or otherwise lost from the pharmacy supply chain, despite some recent improvements, the statistics reveal. The numbers suggest theft and other losses from those business continue to be a significant source of the country’s rampant prescription drug-abuse problem — and the thriving street trade that helps fuel it. The criminals who hold up pharmacies seeking opioid drugs have resorted to increasingly unusual weapons, including lighter-aerosol-can combinations that can be turned into instant “flame throwers” to, in one case, simply dousing a pharmacist with gasoline and threatening to set the druggist alight. (Source nationalpost.com)

Mail theft on the rise and expected to increase  The union representing Canadian postal workers says thieves are making off with Canadians’ mail and the problem will only get worse with the plan to replace doorstep mail delivery with community mailboxes. Stephen Gale, president of local 739 of the Canadian Union of Postal Workers, said he hears many complaints from postal workers dealing with angry customers who have to drive to the post office because their community boxes have been broken into. “We’re hearing a lot of frustration and shock too at just the numbers,” Gale said. “We don’t know the numbers but it seems to be increasing everyday almost. It’s a big problem." Canada Post had previously projected an annual loss of $1-billion a year by 2020 if it were to continue with door-to-door delivery. (Source ctvnews.ca)

Loblaw to invest $100 million in Quebec stores
Loblaw has announced it will invest $100 million in its Quebec brands in 2014, after spending the same amount in 2013. The money will go toward renovations of some Provigo, Maxi, Maxi & Cie stores and rebranding of some Loblaw stores to the new Provigo le Marché banner, said Loblaw spokesperson Anita Jarjour. (Source canadiangrocer.com)

Canada November sales increase 0.6%


Big Data
Sponsored by Verint
Can Big Data Crack Fraud?
How many jailed criminals receive unemployment benefits? How many people are working while claiming unemployment benefits? How many unemployment benefits recipients are driving high-end BMWs? These questions are not always very easy to answer. Part of the problem is the increasing number of services delivered through online methods. Registering with Medicare or Social Security and then receiving can be done in a fully virtual environment. The situation is complicated further by various jurisdictional boundaries - local, state and federal governments. This problem is probably less pronounced in countries with two levels of government, but it still exists, nevertheless. However, the above questions are becoming easier for authorities to answer by using Big Data. And, smaller jurisdictions, with correspondingly smaller budgets and "narrower" view of their constituents, are going to be some of the biggest beneficiaries. An example of using Big Data to identify fraud is the work done by LexisNexis in US. The company compared Medicaid recipients against vehicle registrations. The check discovered quite a number of people receiving Medicaid benefits and driving everything from Bentleys to Aston-Martins to high-end Mercedes-Benz vehicles. According to Andy Bucholz, director of Government Fraud Solutions for LexisNexis, a much more holistic view of citizens and their activities is very likely to solve some of the fraud-related problems. (Source isaca.org)

How Big Data Helps Stores Like Macy's And Kohl's Track You Like Never Before  What is big data in terms of its relevance to the retail industry? In the simplest terms, big data offers a means to understand shoppers via myriad digital touch points – from their online purchases to their presence on social networks. It's giving retailers a competitive advantage when it comes to engaging customers. Kohl’s, for example, is testing real-time, personalized offers in five of its stores. Shoppers who walk into one of those stores can opt in for offers via their smartphones. So if a shopper lingers in the shoe department, for example, they’ll receive a coupon based on “the shoes they looked at online but never bought." And there’s a good chance Kohl’s will earn that sale. That’s because “customers are more likely to respond to an offer when it’s at the moment of purchase when they’re shopping.” (Source forbes.com)

The 7 Steps Of Big Data: How To Make It Work
Today, it's not only important to have Big Data tools in place, we also need a system to filter the captured data, allowing it to actually become useful. The organizations that will win in the big data game aren’t the ones who have the most access to it. The winners clearly define their goals, create the necessary operational boundaries, and establish the set of tools needed to get the job done. Apply these seven logical steps to help apply big data to your business: 1. Break The ‘Game’ Down Into Its Component Parts; 2. Devise A Strategy You Think Will Get You Where You Want; 3. Test And Analyze; 4. Study The Key Components; 5. Research And Understand; 6. Collect Data And Apply It At Actionable Points; 7. Repeat Points 4 – 6 Until You Get There. (Source forbes.com)

C-Level Execs Value Data - But Have No Idea What to Do With It  Almost all C-suite executives at large enterprises believe data and analytics are important to their business, but most are struggling to become data-driven businesses -- and more than half say they don't even know what data to collect. "Long before the term 'big' was first applied to data, organizations were struggling to make sense of all the information they had," says Mark Toon, CEO of KPMG Capital and global leader, D&A. "Over the past five years that focus on data has started to shift. Today, the issue is no longer about owning the most data but rather about how to gain the most insight from it. In short, how to turn data into insights, and insights into real business advantage." (Source cio.com)

Retail Crime News
Sponsored by Sony

Two women busted selling stolen Home Depot gift cards in Niagara Falls  Two Welland women, including one previously sought by police in an alleged coat scam, have been arrested after allegedly running a gift card scam in Niagara Falls. During two different incidents, on Dec. 16 and Dec. 17, two people were bilked out of hundreds of dollars after responding to online advertisements on the classified website Kijiji. The ads promoted Home Depot gift cards — worth $1,000 and $2,000 — being sold for half their value. On both occasions, the victims agreed to meet the seller, one of two women allegedly involved in the scam, in a parking lot in Niagara Falls to purchase the cards. Upon arrival, the accused said she would call Home Depot to verify the value of the cards. She would dial a number on speaker phone and the person on the other end confirmed the cards were legitimate. What the victims didn't realize, however, is that the voice on the other end belonged to a co-accused pretending to be a Home Depot employee. The victims paid cash for the cards, $500 and $1,000 respectively, only to later learn the cards were blank and had been stolen from Home Depot, said NRP spokesman Const. Derek Watson. (Source wellandtribune.com)

7-Eleven Worker Killed in Gaithersburg, MD
The 63-year-old employee at the convenience store is dead and police have arrested the man they say stabbed him to death. Montgomery County police said they were called to the 7-Eleven at 9051 Snouffer School Road at 1:49 a.m. Thursday. Inside the store, officers found Abdul Ghaffar, 63, of the 18500 block of Cherry Laurel Lane in Gaithersburg, suffering from cuts to his neck, chin and wrists. Ghaffar was taken to a nearby hospital, where he died. Police said they have arrested Shaun David King, 36, and charged him with first-degree murder. Police did not disclose King’s residence or any motive. When officers, responding to a reported stabbing, arrived at the store, they saw King leaving the store with what appeared to be blood on his hands and clothes, according to a police news release. He had a box cutter-style knife in his sweatshirt pocket and tried to run away, but was caught by officers. Two 7-Eleven employees were in the store when King entered, according to a preliminary police investigation. He attacked Ghaffar, unprovoked, and the second worker called 911, police said. Margaret Chabris, corporate communications director for 7-Eleven, explained that all store personnel have been trained in 7-Eleven’s Operation Alert crime-deterrence and safety program, which teaches employees to keep no more than $50 in the cash register and $30 during the night. All stores maintain video camera systems with audio and zoom capabilities and alarms that operate 24 hours. (Source gazette.net)

Two sought in Plantation, FL Jewelry Robbery
Plantation police are searching for two burglars who stole an estimated $115,000 worth of jewelry by breaking in through the roof of the Westfield Broward Mall. Police released surveillance video Thursday of the Jan. 15 burglary at Gordon's Jewelers in the mall, 8000 W. Broward Blvd. The video of the 2:47 a.m. incident shows two suspects dressed in black descending into the jewelry store from the roof with a large pickaxe. It also shows them climbing back up through the ceiling with a sack. One wore what appeared to be a T-shirt wrapped around his head; the other wore a hoodie and had a bandanna across the lower half of his face. They also wore gloves, the video showed. (Source sun-sentinel.com)

Arrest Made in CVS Robbery of Elderly Woman

Hueytown, Ala., Walmart evacuated after man hand delivers bomb threat

Enraged male customer whose credit card was denied at an El Cajon jewelry store Wednesday afternoon pulled out a hatchet beats owner with the blunt end then stole a gun from him before fleeing

Elkhart Police investigating CVS Robbery; suspect claimed to be in danger, forced to steal drugs

19-year-old W. Salem, OR man arrested for armed robberies at Tobacco Pouch and Plaid Pantry

Kinston, NC Police searching for 2 Armed Robbery Suspects who held up Sam's Mini Mart

Police Investigating 6 Armed Robberies within 24 hours in Salinas, CA

Robberies and Burglaries

Four Arrested In Lenoir County Armed Robberies
Armed robberies hit convenience stores in North Tonawanda, Amherst, N.Y.
Restaurant Owner, Customers Hold Robbery Suspect For Police in Omaha, NE
Two arrested for Madison, Ala., Captain D's robber
Suspects in bank robbery at Bessemer, Ala., Walmart captured
Abala Pharmacy- Armed Robbery – Tracy, CA – no injuries reported
Rite Aid – Armed Robbery – Whittier, CA suspect stole $200 of booze, brandished weapon to keep employees away
S & A Dollar – Armed Robbery – Gardena, CA – suspect caught on tape
7-Eleven – Armed Robbery – Buffalo, NY – no injuries reported


ORC News
Sponsored by Protection 1

3 member ORC gang hitting Home Depots in Nassau County for gift card scam busted for $28,800  According to Detectives, an investigation from September 4, 2013 to January 22, 2014 revealed a debit/gift card scam involving various Home Depot Stores throughout Nassau County. The defendants would steal various items and then return the items to receive debit/gift cards in the amount of the return price. The defendants were then able to sell the cards to a Pawn shop and receive cash. The proceeds from the various Home Depot stores was approximately 37 cards totaling approximately $28,800. On January 22, 2014 at approximately 5:00pm Detectives observed the three defendants carry out the larceny, sell the gift cards and then proceed to buy a substance believed to be heroin. At 6:00pm Detectives arrested all three defendants in front of 976 Hempstead Turnpike in Uniondale. (Source longisland.com)

TV ORC thief busted hitting Walmart store multiple times selling them on Craigslist in Genessee County  A man was arrested for retail fraud and organized retail crime after admitting to stealing electronics from the Hartland Walmart, according to a report from the Livingston County Sheriff's Department. After questioning the suspect at his Owosso Township home, police said, the man admitted to stealing the additional electronics using the receipts to look as though he had paid for them. The suspect then told police he would return one television set to the store and would then sell the additional TV on Craigslist. (Source brighton.patch.com)

Glendale, Calif., Skimming gang member indicted in Boise for multi-state skimming  A federal grand jury meeting in Boise last month indicted Vachik Babayan, who resides outside Glendale, Calif., on charges connected to the Caldwell gas station skimming operation. He also is accused of being part of a group that used skimmers to steal credit card information last year in Glendale, Calif., and make counterfeit credit cards. The false cards were used to purchase large amounts of gasoline, which was then sold for half-price, according to the Glendale Police Department. (Source idahostatesman.com)

ORC gang of 4 men hit Aeropostale at North Star Mall in San Antonio - Police offer reward  Detectives say a manager at the Aeropostale store contacted police on April 12, 2013 after noticing a large amount of merchandise disappearing from the store. Video surveillance was set up and captured images of the group entering the store on April 15th and making off with a large trash bin full of clothing. SAN ANTONIO -- Police say four men stole merchandise from a store at North Star Mall. They've identified three of the men, but need your help to track down the fourth suspect. CRIME STOPPERS will pay up to $5,000 for information which leads to the arrest of the person(s) responsible for the Aeropostale Burglary. (Source news4sanantonio.com)

Five Men Sentenced in NC and SC Cigarette Smuggling Operation  Five men are headed to federal prison over their roles in what authorities say was a $20 million cigarette smuggling operation based in the Carolinas. U.S. District Court Chief Judge Frank Whitney in Charlotte handed down sentences Wednesday ranging from 14 months to 18 years in prison. The men were convicted last year of conspiring to sell 486,000 cartons of what they believed to be stolen cigarettes at retail outlets across North Carolina and South Carolina. Sentenced on Wednesday were Tha'er Ismail Ayyad of Kernersville, Ziad Hashem Najjar of Greensboro, Ahmed Samy Hosney Kareem of Matthews, and Kamal Zaki Qazah and Ahmed Ibrahim of Columbia, S.C. Six others involved in the ring were previously sentenced to prison terms and probation. Another man should appear in court next week. (Source jdnews.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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Your Career
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Creating and Keeping a Positive Company Culture  Your company's culture is an important aspect, not to be overlooked. The culture that you create inside your organization should instill your values and should enforce a positive culture right from the get go. Use these tips for doing just that. (It's ok to not have all the answers)

5 Rules for Boosting Your Value in the Workplace  Most of us probably don't work in an isolated environment, we probably interact with others in some shape or form on a daily basis. This interaction needs to encourage collaboration and cooperation, so follow these rules to make the most of your work relationships. (Boost your value too)

The Art of Effective Feedback
Feedback is a constant piece of working organizations: people need feedback and people give feedback on a daily basis. While good feedback is key to getting good outcomes and enforcing good behavior, it also needs to be effective. Here are five elements that your feedback should have to be effective. (It should be natural)

How to Overcome Self-Doubt and a Lack of Motivation  We all encounter these emotions from time to time: you feel in a rut or like you're just not good enough at your job, and think to yourself "I just don't feel like doing anything today." In order to escape this mentality, and get yourself back to reality, use these mind tricks. (Step out of the center of the universe)

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Tip of the Day
Sponsored by Vector Security

As many of us speed through our days and work hard to accomplish our objectives, oftentimes the one thing that suffers is our active listening skills. These skills are important if we expect to truly change behavior or direction as quickly as today's pace requires. Active listening is difficult for some and requires an individual to hear things they may not be open to hearing or just hearing things that aren't said because oftentimes it isn't what's said that's important, it's what isn't said that can mean the most. Hearing that usually takes place upon reflection because most of us aren't intellectually fast enough to respond instantaneously. Active listening is a tool and a skill that can help an executive every day. It merely requires the thought and the practice.

Just a Thought,
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