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January 28, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Retailer Data Breach Trend Not Likely to End Soon  In all three of the recent high-profile cases, attackers were apparently able to plant malware on point-of-sale (PoS) systems to gather credit card information from unsuspecting shoppers. There are a few factors that combine to fuel this trend. First, credit card data and related customer information are a goldmine for attackers. "Attackers no longer spam at will," says Steve Durbin, global vice president of Information Security Forum. "They are increasingly targeting--learning the habits and preferences of their potential targets to better tailor malware to the intended audience. There's little chance that this threat will diminish, and more targeted attacks will make it difficult to track, analyze and protect against them." (Source cio.com)

Consumer sues Michael's for data breach
An Illinois consumer has reportedly filed a lawsuit against Michael's Stores in federal court relating to the retailer’s possible recent data security breach. According to Bloomberg, Illinois resident Christina Moyer filed suit in Chicago federal court on Monday, Jan. 27, claiming the retailer broke an implied promise to protect the personal data of her and other consumers. Moyer, who claims she and other Michaels customers will have to spend time and money dealing with the reported data breach, has asked the court to declare a class of consumers who used a payment card to make a purchase at Michael's on or before Jan. 25. Unconfirmed reports indicate a breach occurred from Jan. 23-25. Michael's has not formally confirmed a breach occurred, although it has publicly stated it is investigating a possible breach. The retailer did not reply to a request for comment before the article was published. (Source chainstoreage.com)

RILA Launches - Cybersecurity and Data Privacy Initiative  To address the challenges we all face in this regard requires collaboration across the industry and with other stakeholders, including other industries and policymakers. That is why today, with the support of the RILA Board of Directors, RILA is launching the RILA Cybersecurity and Data Privacy Initiative. The initiative seeks to bring public- and private-sector stakeholders together. Read more here Retail Industry Leaders Association's Cybersecurity and Data Privacy Initiative

Data Security: Retail’s New Top Priority
In recent years, customer engagement has become much more of a mission-critical function for retailers. While nobody would argue that retailers must engage their customers in a way that recognizes the disruptive effects of leading-edge technologies like social and mobile, there is a priority that looms even larger. Namely, data security. (Source chainstoreage.com)

Merchandise returns account for nearly $270 billion in lost sales - retail fraud = $9.1B to $16.3B in U.S.  Merchandise returns in 2013 cost U.S. retailers more than $267 billion in lost sales. That’s one of the findings contained in The Retail Equation’s 2013 Consumer Returns in the Retail Industry study, which analyzes results from the National Retail Federation’s annual survey on merchandise returns and the 2012 Canadian Retail Security Survey from The Retail Council of Canada National Retail Federation. The report found that retail fraud and abuse accounted for $9.1 billion to $16.3 billion in the United States, an increase of 2.6% from last year. In the competitive world of retail, it is critical to understand how returns and return fraud reduce net sales and contribute to shrink – clear causes of lost profits,” said Mark Hammond, chairman and CEO of The Retail Equation. “The results within this report offer the industry’s best look at merchandise return policies and procedures, as well as potential fraud and abuse. This information can be used by loss prevention professionals to compare and contrast their own program results to those reported here, with an eye toward reducing losses.” The report showed a 15% increase in employee collusion versus last year, from 80.7% to 93.1%. This implies that exception reporting systems are not sufficiently preventing this type of fraud, according to Retail Equation. The report also revealed that four-out of five main tender types (e.g., cash, gift card/merchandise credit, credit card, debit card and check) showed increased fraud. In fact, fraud increases outpaced decreases by 42%. For a copy of the report visit www.retailequation.com (Source chainstoreage.com)

Mall security in the spotlight in wake of shootings - Is Airport Security coming to the Malls?  Security experts say shopping centers face a dilemma when it comes to protecting customers and employees — people want to be safe while they're at the mall, but anything too overt, from metal detectors at entrances to armed police at every turn, would vastly change the leisurely appeal of the mall experience. "That just wouldn't be realistic given the shopping culture that we have in the U.S.," said Joseph LaRocca, a security consultant who previously headed loss prevention efforts of the National Retail Federation and the Walt Disney Co.'s retail division. "People going to the food court and the movies, or shopping — the thought of having to stand in security lines...would send even more people to online retailers." As a result, LaRocca said, many malls have instead installed sophisticated camera systems and trained employees on how to react to emergencies. Their corridors and parking lots are patrolled by private security guards, uniformed and plainclothes, and off-duty police officers. (Source baltimoresun.com)

2014 e-retail will be more mobile and more global

IKEA pleased with world economic recovery; posting record profits

Michael Jeffries No Longer Chairman at Abercrombie & Fitch

Apple Plans Fingerprint Based Mobile Payments; May Do Physical Goods 

Wal-Mart, Kroger have PIN-and-chip hardware ready 

Retailers realizing multiple benefits of RFID adoption  With UK supermarket group Asda recently announcing the start of an RFID pilot alongside Tyco Retail Solutions, it is clear that the technology is increasingly being touted as an essential component of a retailer's toolbox. The Walmart-owned grocer has teamed up with Tyco to pilot the introduction of RFID in stores on an item-level inventory accuracy project for its George clothing business, but recent research shows that there are a whole host of reasons why retailers are embracing this technology. Other retailers, including Macy's, Saks and Walmart itself, are using RFID on billions of their items, while the recent NRF Big Show in New York highlighted how top retailers are keen to investigate the different options available to them in this field. (Source essentialretail.com)

Self-checkout aisles, a gift to shoppers - StopLift software making an impact at the register lines  Theft at the self-checkout aisles played a role in their removal, said Claire D'Amour-Daley, Big Y vice president of corporate communications. A host of other issues with self-checkout aisles were unique to Big Y, she said. The grocery industry loses 35 percent of its profits as a result of merchandise not being scanned at checkouts, according to the National Retail Federation. Supermarkets in particular operate on small margins, and so losing a third of all profits is devastating. Not all of this theft is conducted at self-scanning checkouts. Some of the loss is due to store employees who do not scan certain items, either by accident or on purpose. The NRF reported thefts of $34.5 billion at all categories of national retailers in 2012. One area of concern is that self-scanning or express checkout lanes make it easier for shoplifters to steal merchandise. "Scan avoidance is the dirty little secret in retail theft," said Sherry Alpert, a spokeswoman for StopLift Checkout Vision Systems, a Cambridge-based technology company that specializes in preventing retail theft. StopLift software works with video surveillance cameras at retail stores to detect scan avoidance. The software, the company said, has revealed that shoplifting is at least five times more likely at a self-checkout than at a cash register with a clerk. But the company also uncovered that some cashiers have been seen regularly "sweethearting" items, giving away merchandise to family and friends. The multiple ways in which shoplifting occurs makes it hard for surveillance to detect an individual incident. (Source telegram.com)

"Watch Out for the $9.84 charges on your credit cards"  This is popping up all over the internet as warnings to consumers. Is it the Target cards or Neiman's or Michael's - quite possibly. The scam has been running that way for years now, where the criminals try to sneak in without the consumer noticing with small charges that don't cause as much of a reaction. But multiply it by 70+ million and you have almost a billion dollar exposure. (Source perezhilton.com)

How Can Congress Counter Credit Card Fraud?Bloomberg’s Nela Richardson discusses retailers coming under cyber attack and legislation concerning data breaches. She speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “Market Makers.” (Source bloomberg.com)

CEO of Bitcoin exchange taken down for money laundering  Efforts to raise Bitcoins to legitimate status are not going to be helped by the arrest of the chief exec of a prominent exchange, funded by the Winklevoss brothers. U.S. government agents have arrested Charlie Shrem, the CEO of Bitcoin exchange BitInstant, charging him with laundering money for customers of online drug bazaar Silk Road. The U.S. attorney in the Southern District of New York said Shrem helped someone he hadn't met in person, Robert Faiella, sell more than $1 million worth of bitcoins to Silk Road customers. Faiella, a 52-year-old Florida man, allegedly ran an underground Bitcoin exchange using the alias BTCKing. Shrem was arrested at John F. Kennedy International Airport in New York on Sunday, and Faiella was arrested at his home in Cape Coral, Fla., on Monday, prosecutors said. Both are charged with conspiracy to launder money and operating an unlicensed money transmitting business. Additionally, Shrem faces a charge for not tipping off the feds to what was allegedly going on. (Source cnn.com)

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In this three part series, Chief Raymond Schultz of the Albuquerque Police Department and Karen Fischer, Albuquerque's Strategic Support Division Manager discuss how their public-partnership model emerged and came together to help fight organized crime, how it works, and what the future will bring it. Learn how their model evolved into the highly efficient database sharing and website that helps law enforcement and loss prevention executives fight retail crime.

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Press Releases

Brookshire Grocery Company Deploys Retail 20/20

Replaces Navistor for exception reporting and shrink reduction

MOUNT LAUREL, NJ, January 28, 2014 – Agilence, Inc., the leader in cloud-based exception reporting solutions, today announced that Brookshire Grocery Company has deployed Retail 20/20 exception reporting to reduce shrink and improve in-store operations. Texas-based Brookshire Grocery Company operates 152 stores in Texas, Louisiana, and Arkansas.

“We needed a powerful reporting application to get the most out of our data and a team to help us drive it,” said John D’Anna, chief information officer for Brookshire Grocery Company. “After a six month pilot, it was clear that that Retail 20/20 was able to deliver a significant return on our investment.”

“The adoption rate of Retail 20/20 has outpaced even our own expectations,” said Russ Hawkins, CEO, Agilence, Inc. “Brookshire Grocery Company is another validation point of the success of our solution and team.”

About Agilence
Agilence (www.agilenceinc.com) is the industry leader in next-generation exception-based reporting solutions for retail loss prevention and operations. Agilence develops Retail 20/20, a highly flexible and powerful, cloud-based reporting solution that provides visibility into daily store operations to reduce fraud and operational inefficiencies. Retail 20/20 provides users with a complete view of their business, empowering them to make informed decisions faster, to increase efficiency and improve profit margins across the enterprise. Founded in 2006, Agilence, Inc. is headquartered in Mount Laurel, NJ. To learn more about Agilence, please email sales@agilenceinc.com or call 856-366-1200.

Derek Rodner
VP, Product Strategy



Retail Crime News
Sponsored by Sony

Pleasanton, CA.: Restaurant shooting wounds one, suspect arrested Sunday morning  A restaurant patron suffered a gunshot wound but was expected to survive after a man opened fire inside the dining establishment early Sunday morning, police said. Witnesses had told police that a man inside the restaurant was acting strangely and pacing back and forth. A short time later, they heard popping sounds and saw him with a silver handgun shooting into the ceiling of the main bar area from a stairwell at the rear of the restaurant, Rohovit said. By the time police arrived, the suspected gunman had escaped through the south exit of the restaurant, Rohovit said. Police executed a search warrant of Landes-Caballero's residence and seized evidence related to the crime, Rohovit said. (Source insidebayarea.com)

Online counterfeit credit card maker arrested, $34.5 million in fraud  Three men, who have allegedly run a one-stop online shop selling counterfeit credit cards and holographic overlays to be used by criminals to make fake identifications, face federal charges in an ongoing investigation that has already resulted in 11 additional arrests, including a customer facing federal charges. (Source arizonadailyindependent.com)

Eighth Pilot Flying J Employee Pleads Guilty to Fraud in company's fuel rebate program to customers  According to the 120-page affidavit that outlines the fraud allegations against the company, one of Mosher's former subordinates, Cathy Giesick, told investigators that Mosher was engaging in rebate fraud targeting approximately 20 customer accounts for which Giesick was responsible. The affidavit includes transcripts of a secretly recorded sales meeting in which Mosher allegedly led multiple break-out sessions about manual rebates, which are at the center of the criminal investigation, the newspaper reported. (Source csnews.com)

Security at Park City in Lancaster, PA: How the mall protects shoppers  A mall spokeswoman said Park City has emergency plans and security in place, but declined to answer specific questions or reveal any details of those plans at the mall, which is owned by the same company that owns The Mall at Columbia. "We do not discuss our public safety measures because by doing so would compromise our efforts," said Jillian Fikkert, Park City's marketing manager, in a written statement.” While we have implemented extra precautions, the safety and well-being of our shoppers are always our top priorities, not just when events/tragedies like this occur," she said. "We have a customized public safety program that entails different measures for various scenarios." (Source lancasteronline.com)

Charlotte Area Law Enforcement team up to solve a series of Pharmacy Robbery: thieves hit 2 CVS stores and a BI-LO  On Jan. 25, detectives with the Sheriff’s Office and Monroe Police conducted two undercover buys of oxycodone pills from the suspects. The purchases yielded more than 100 dosage units of oxycodone. The two suspects were arrested in the parking lot of Midway Barbecue in Monroe without incident. Their vehicle was seized. Medicine bottles matching those stolen from the CVS Robbery on Jan. 24 were recovered from their possession, as well as more than $3,000 in cash. (Source charlotteobserver.com)

U.S. Marshal shoots suspect in rifle theft outside Food City store in Phoenix  Gunfire erupted in the parking lot of a Phoenix grocery store Monday evening. A U.S. Deputy Marshal shot a man suspected of stealing a rifle from the vehicle of a Pinal County law-enforcement officer. The U.S. Marshals Service had been watching the suspect, who has not been identified, since the theft, tracking him to Phoenix. According to the Phoenix Police Department, that suspect and a man they identified as Cosso Juarez were in a Mustang stopped outside a liquor store near the Food City when a Deputy U.S. Marshal moved in to make an arrest. With the driver-side door blocked a law-enforcement vehicle, the suspect climbed out of the passenger window. Shots were fired and the suspect was wounded. (Source azfamily.com)

Fire at a Target store in Enfield, CT deemed Arson  Store employees said they believed the fire broke out after candles were lit inside the store's seasonal department. The fire that broke out at the Target store at The Enfield Square Shopping Center at 90 Elm Street on Monday evening has been deemed arson and the store is being considered a crime scene. Store employees said they believed the fire broke out after candles were lit inside the store's seasonal department, but fire officials haven't officially identified the cause. No injuries were reported and the fire was contained to one aisle. No one has been taken into custody. (Source nbcconnecticut.com)

Kay Jewelers hit with a Roof Top burglary in Ocala, FL; thieves flee with nothing  Criminals cut a hole in the Mall’s roof and dropped down into the Store using ropes. However, once in the Store, they did not steal any merchandise or damage any showcases. All required items were pulled and secured.

Kay Jewelers store in Oak Court Mall, Memphis, TN robbed; suspect apprehended  For the second time in barely 10 days, a jewelry store in a Memphis mall was robbed. This time, the robbery happened at Kay’s Jewelers in the Oak Court Mall Monday morning. The lone suspect, apparently armed with a gun, entered the jewelry store on the upper level of the East Memphis mall just before 11 a.m.. He grabbed several items, then ran out of the store, which is just above the food court on the mall’s western end. The suspect apparently didn’t have a getaway vehicle, and ran from the mall on foot toward the railroad tracks along Southern. Memphis police dispatched officers, air support and dog units to the scene, and the suspect was soon caught in a wooded area near. (Source commercialappeal.com)

Pennsylvania man pleads guilty to selling counterfeit goods, including military- grade integrated circuits  A Pennsylvania man who prosecutors say sold thousands of counterfeit goods, including military-grade integrated circuits, has pleaded guilty to conspiracy. Twenty-five-year-old Hao Yang of Bloomsburg, Pennsylvania, entered the plea Monday in federal court in Baltimore. He faces a maximum of 10 years in prison at sentencing March 28. According to his plea agreement, Yang and others operated companies in Maryland and Pennsylvania to import counterfeit goods from China and sell them in the United States. Prosecutors say the items included hundreds of professional sports jerseys, DVDs, computer software and nearly 8,000 integrated circuits. (Source therepublic.com)

Rooftop burglary suspects arrested at K-Mart in Spokane, Wash.

Palestine, TX., PD bust two for passing counterfeit bills in 10 to 12 active cases

Carlisle, PA shoplifter caught for his fourth offense stealing saw blades from Lowes, now it’s a felony

Pennsylvania State Store employee caught stealing $2100 in cash

Macy’s Fine Jewelry suffers a $22,000 Grab and run in Sacramento, CA

Jared Grab and Run suspect flees with $2200 in merchandise from the store in Rivergate Parkway, Goodlettsville, TN


Robberies and Burglaries

West Springfield, Mass., convenience store armed robbery - female & teenager arrested
Taylorville, ILL., Armed Robberies Already Exceed 2013's
Sioux Falls, South Dakota, investigating 4 armed robberies
Two retail burglaries in Sugarcreek Borough, PA.
Myrtle Beach PD seeks male suspect in at least 5 armed robberies
Tempe, AZ jewelry store armed robbery - two suspects sought
Batavia Pantry – Armed Robbery – Batavia, IL – suspect with knife, fight ensued, only injury
CVS – Armed Robbery - Roanoke, VA – suspect demanded cash, no injuries
Dollar General – Armed Robbery – Huntsville, AL – Police release video of suspect
Dollar General – Armed Robbery- Madison, AL – police arrested a 20 yr. old suspect in Dec. robbery
Domino’s – Armed Robbery – Hope, AR –  employee fought for gun, believed suspect was shot
H&H Grocery – Armed Robbery – Waxahachie, TX - suspect in custody
Longs Drugs – Armed Robbery – Honolulu, HI – Police release video of suspect
Masked Armed Robbers Order People to Floor, Steal $45,000 in Liquor From Brooklyn Store
Staples – Armed Robbery – Hanover, MD – no injuries
Sunoco – Armed Robbery – Dummerston, VT – State Police are leading the investigation
Walgreens – Armed Robbery – Dover, DE – suspect demanded cash, no injuries
7-Eleven – Armed Robbery – Denton, MD – suspect arrested, police followed footprints in the snow


ORC News
Sponsored by Protection 1

Two female suspects hitting stores from Columbia to Nixa, MO. for shoplifting - gift card fraud  The Osage Beach Police Department is requesting the public's assistance in identifying women involved in an alleged shoplifting and gift card fraud scheme. The younger of the two women went directly to the service counter advising the clerk that she had purchased gift certificates at another store but had lost them. She produced a receipt in an attempt to convince the clerk to provide her with replacement certificates. The transactions for both suspects were denied. The older female placed the items back in the shopping cart and left the store with the items. Both women left the area in a silver Jeep Liberty SUV. It is believed that these women have been involved in this type of criminal activity from Columbia to Nixa. Receiving, in essence, stolen gift cards from redeeming stolen merchandise the gift cards are sold for less than their value to unsuspecting victims. The suspects go to a Walmart or other chain store and claim that the cards have been either lost or stolen at which time they may receive replacement gift cards. The people who then purchase the cards from the suspects are unable to redeem the cards and become fraud victims also. (Source lakenewsonline.com)

Cadillac, MI., woman sentenced to 300 days in jail for ORC role with husband  Bates allegedly helped her husband, Harold James Bates, 37, as he enlisted people to shoplift items from local stores. The Bates allegedly allowed individuals to live in their home in exchange for bringing them stolen merchandise to sell through online sites such as Craigslist, according to Wexford County Prosecuting Attorney Tony Badovinac. (Source cadillacnews.com)

Cops bust female ORC thief selling stolen merchandise online in Gresham, Ore., hitting Safeway stores  Gresham police arrested a woman accused of stealing small, high-priced items valued at thousands of dollars from Safeway stores all over the area, then sold them online through “an organized fencing operation she created,” said Detective John Rasmussen, public information officer for the Gresham Police Department. The three-month investigation into Hudson's activities showed her utilizing social media sites similar to craigslist and eBay to conduct her scheme and sell the stolen items,” according to a press release from Gresham police. “Investigators have identified Hudson as the suspect in dozens of thefts from local Safeway stores across the Portland metropolitan area, from Gresham to Beaverton.” (Source portlandtribune.com)

ORC gang of four busted hitting St. Louis retailers  City police stopped four alleged fleeing shoplifters from St. Louis on Sunday who indicated they return stolen items to stores and receive gift cards in exchange. An Alton police report says the three men and one woman had three cards and return receipts from big-box hardware stores, in addition to the pair of men’s 501 Levis that one of the men allegedly stole from the Alton Kohl’s. (Source thetelgraph.com)

North Carolina Authorities put brakes on big rig theft ring in Franklin County  Nearly a million dollars of equipment was seized in Franklin County. Franklin County Sheriff Jerry Jones says two men are responsible for an eight county commercial chop shop crime spree, which spanned three states. Rodger Nipper and Sonny Marks are charged with stealing tires, engines, tanks, and even 18-wheeler trucks. The sheriff says this is the largest commercial cop shop he has ever seen. The items stolen are worth a lot of money. (Source abclocal.go.com)

Mystery Washington convenience store clerk steals $10,000 in merchandise and cash, then vanishing  An AM/PM convenience store manager in the Seattle suburb of Renton says she's in shock after store surveillance cameras recorded a previously helpful employee stealing about $10,000 worth of cash and merchandise during his last few solo shifts, then vanishing. Lane says the employee "just took everything he could," finally bringing in a duffel bag during his last shift. He showed up three months ago, saying he was from Ohio. Workers say he taped an "out of order" sign on a credit card reader so customers would pay in cash. Video even shows him giving away store candy. (Source therepublic.com)

UK gang stole $1 Million of parts from Nissan to sell on eBay  Using inside men at the Washington car manufacturer, the gang stole expensive car parts them sold them on eBay for a fraction of their value. (Source thejournal.co.uk)

“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

Looking for Security and Power in a Stand-Alone Solution?
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Designed to display tablets, mobile phones, cameras, GPS devices and more, the system not only provides power to merchandise, it provides maximum security through multiple trigger points. An internal alarm and flashing LED indicate if the merchandise is tampered with and a back-up battery maintains constant security even if power is lost or power supply is interrupted.

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The Neuroscience of Effective Leadership 
This director of research at the National Preparedness Leadership Initiative has found out that books on brain science offer more insight into leadership and that advice your grandma gave you years ago? Yeah, she knew what she was talking about. (Keep an open book)

Great Leaders See, Say, and Do
To be truly effective as a leader, you have to put these three actions together, clear vision, clear communication, and meaningful action, in order to truly make a difference. In this interview with Dr. Kathryn Cramer, she highlights how leaders can produce better results by shifting these processes. (Look out for what is valuable)

7 Common Sense Principles of Leadership 
This Coach of the Year, NFL Head Coach Dick Vermeil, knows a thing or two about leadership. Follow his example, and watch this video or read the summary of his seven principles to lead by that will help you succeed and develop. (Let people know you care)

How to Coach Your Really Good Employees  You probably give most of your attention to those employees who just aren't quite performing up to the standard. That's ok, and it makes sense, but don't forget about those employees who are star players. Every employee needs to be managed, and use these tips to help coach them. (Think of their future)

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Tip of the Day
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Asking for advice is a great thing and we all need it from time to time merely because as the old adage goes we're too close to the trees to see the forest. However, the key is who you ask for it and what are their agendas, because we all have them and even well intentioned advice can be swayed by an individuals need or desire to accomplish their objectives. Advice is the easiest thing to give and the hardest thing to practice. But getting a second opinion is always good. You've just got to realize that we're all just humans and even the best advice givers and mentors are influenced by their own needs.

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