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February 12, 2014

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News Brief
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Michael Lawson, CFE was promoted Director of Shortage Control for Macy's.  Michael was previously the Shortage Controller for Macy's before earning this promotion. He has also worked as the Safety Director for Macy's East, and was involved in the loss prevention department at Hecht's Department Stores. Congratulations Michael!

If Target got breached because of third-party access, what does that mean for you?  The Target data breach is the gift that keeps on giving. It continues to capture attention with new revelations and insights. The real opportunity for security professionals is to side-step speculation and use the coverage to spark productive conversations. The kinds of discussions that help others understand your value and set the stage for necessary changes. The latest development was the potential compromise through a third-party HVAC contractor. The concern over connecting vital networks with third-parties isn't new. However, the trend has accelerated in recent years. I know of one organization that went from a handful of connections five years ago to over 100 in the last two years. Attackers know this, too. If they can't get what they want through you directly, perhaps the third-party is the right vector. No more crawling through vents or dumpster-diving. Now they focus on remote access. (Source csoonline.com)

NYPD's New Commissioner Shakes Up NYPD - Did Stop-and-Frisk play a role? The Daily says yes it did.  Newly appointed New York City Police Commissioner Bill Bratton announced yesterday that he is replacing two of the department's top chiefs, the Chief of Detectives and the head of the Internal Affairs Bureau. The longstanding IAB chief, Charles Campisi, who has some 40 years on the force, has been in charge of Internal Affairs for nearly two decades, overseeing an expansion of the unit and its role in monitoring the integrity of New York’s Finest. Bratton's high-profile move is being seen by some as a partial reaction to the NYPD's controversial "stop and frisk" policy, which has received a lot of negative attention in recent months. (Source dnainfo.com)

More businesses at risk of credit card data breaches, says Verizon report  Many businesses who accept credit card payments are facing problems with compliance, which raises the spectre of security breaches, according to the Verizon 2014 payment card industry (PCI) compliance report. The report said that in most cases the main issue was implementation and not a failure of security technology. Initial compliance with the PCI standard had shown some improvement, however. In 2013, over 82% of organizations were compliant with at least 80% of the PCI standard when their annual baseline assessment was completed. This was compared with 32% the previous year. (Source csoonline.com)

CCTV predicted to reach a tipping point in 2014, according to research  In a new report called “The World Market for CCTV and Video Surveillance Equipment,” IMS Research consultancy forecasts that network video revenues will overtake those generated by analog equipment for the first time ever this year. One of the many trends for the new year includes the emergence of the global IP surveillance (network video) market. (Source ifsecglobal.com)

Alipay Overtakes PayPal As The Largest Mobile Payments Platform In The World  Alipay is the largest mobile payment platform in the world. Alipay operates as a third-party payments platform and is a business segment of China's Alibaba, an online commerce site similar to Amazon and eBay. On Saturday, Alipay announced on its Weibo account that it processed nearly $150 billion in mobile transactions in 2013. The company claimed that its mobile payments volume was greater than both PayPal and Square combined. PayPal's mobile transaction volume was just $27 billion in 2013, and while we can't say for sure what Square's total mobile transaction volume was last year because the company does not regularly report these numbers, it is almost certainly smaller than PayPal's. That means Alipay may well have processed more than triple the transaction volume of PayPal and Square, based on Alipay's reported numbers. (Source businessinsider.com)

Chinese Giant Alibaba Might Be Trying To Kill Amazon With Its New American Online Store  Alibaba – the massive Chinese online retailer – confirmed to Re/Code that it's creating a new, U.S. e-commerce site called 11 Main. The site has yet to launch, but it will be a marketplace for merchants to sell their goods online–much like eBay or Amazon. It will be run by two startups – Auctiva and Vendio – that Alibaba acquired in 2010. This launch also follows Alibaba's $15 million investment in the vintage e-commerce site 1stdibs and its $200 million investment in Shoprunner, another U.S. company. (Source businessinsider.com)

Kroger ventures into Silicon Valley, purchases digital coupon leader YOU Tech  The Kroger Co. announced it has purchased the assets of YOU Technology Brand Services, the Silicon Valley-based provider of digital coupons and promotions. Financial terms of the transaction were not disclosed. Founded in 2008, YOU Tech's retailer-centric, cloud-based platform bridges the gap between online engagement and in-store purchases, creating a measurable way for retailers and brands to drive consumer purchase decisions online, in-store, and on-the-go. Its network, which includes Kroger.com/digitalcoupons, includes over 10,000 retail stores representing over $100 billion in retail sales and 100 million U.S. households. YOU Tech will continue to serve existing and future retail customers. (Source chainstoreage.com)

Retail imports expected to drop in February
Import volume at the nation’s major retail container ports is expected to drop 8.4% in February from the same time last year as the shipping cycle reaches its slowest month of the year, according to the monthly Global Port Tracker report released by the National Retail Federation and Hackett Associates. (Source chainstoreage.com)

Will Harrods open flagship stores outside the UK?  Ahmad Al-Sayed, CEO of Qatar Investment Authority, the owner of Harrods, said the company is looking for expansion sites, including in cities such as New York. (Source fashionunited.co.uk)

Home Depot plans 80,000 spring hires

CVS reports 12.5% jump in 4th Quarter sales

United Natural Foods To Open $37.8 Million Distribution Center in Northwest Wisconsin

Illinois Attorney General's office says the number of identity theft complaints received by her office climbed 18 percent last year

2014 FMI Asset Protection Conference
March 9-12, 2014 Jacksonville, FL

Participate in interactive workshops & roundtable discussions, get inspired by the industry’s leading experts, and gain tools and resources to protect your companies bottom-line. This annual event incorporates key learning's and education from FMI's Loss Prevention, Safety and Risk Management components.  Register here today!  Interested in becoming a sponsor? Click here.

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New England ORC Symposium & Tradeshow - Joe LaRocca, Part 3

In this three part series, Joe LaRocca, Senior Advisor for RetaiLPartners, addresses what organized retail crime means today, how large it is becoming, how and who it is impacting, and the emerging technology that retailers are seeing more often because of this epidemic. He provides the audience with very interesting facts about ORC and how to combat it.

The Live in NYC schedule has been released! View here!

Solution Providers! Have a video or commercial? Want to get it out there?

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RILA AP Conference 2014

ORC offerings at the RILA’s Retail AP Conference 2014!

RILA’s Retail Asset Protection Conference 2014 is offering 3 dedicated ORC educational events at this year’s conference, each with top industry leading experts ready to share their knowledge and insight. These sessions are sure to aid you and your team in the battle to mitigate losses associated with ORC activity.

Registration is open and the conference is in less than 2 short months! Don’t miss out!

ORC Alliances & Associations: Leading Practices across the Board – (Breakout Session)  ORC continues to be a challenge for retail asset protection departments. Today, ORC associations and task forces help to fight this battle using different methods. Hear from top ORC associations and task forces on their leading practices regarding how to collaborate with law enforcement and prosecutors and how to benefit retailers while working together.

David Williams, Cook County Regional Organized Crime, Assistant State's Attorney, Cook County
Jason Adams, New England ORC Alliance, National Manager, ORC, Gap, Inc.
Rory Stallard, Georgia Retail Association ORC Alliance, Manager, Market Investigations, Toys R Us, Inc.

Organized Retail Crime Retail Collaboration – (Open Forum Session)
Retailers continue to see the total number of ORC cases and total loss amounts per case rise. Come to engage in open dialogue moderated by leading ORC professionals from various retail companies. Together we will collaborate as an industry, and continue efforts to mitigate risks associated with ORC.

Jerry Biggs, Director, ORC Division, Walgreen Co.
Deb Lussier, Senior Manager, Central Investigations, The Home Depot, Inc.
Kevin Morrison, Director, Fraud & ORC, Lowe's Companies, Inc.
Tony Sheppard, National Manager, ORC, CVS Caremark Corporation
David Williams, Assistant State's Attorney, Cook County Regional Organized Crime Center
Mark VanBeest, Director, Global Security & Investigations, JCPenney Company, Inc.

Surveillance Ops - Counter Intelligence Surveillance Methodologies & Techniques
This seminar will provide the asset protection industry with counter intelligence surveillance methodologies used by intelligence agencies. Surveillance Ops has taken these proven techniques and integrated them with criminal investigations to establish a hybrid training seminar, providing the highest level of relevant surveillance training for ORC directors, investigators and AP community.

Ricky Ansbro, Chief Executive Officer, Surveillance Ops LLP (www.surveillanceops.com)

**This is complimentary for all registered conference attendees and a unique, 4-hour training seminar on counter intelligence surveillance earning you valuable CEU credits towards LPC and CFI recertification**

For additional information, visit www.RILA.org/AP or contact Garth Gasse, director, asset protection, RILA.


Sponsored by The Zellman Group
An Award Winning Program That Eliminates Online Losses for Retailers  Fraudsters are no longer amateur hackers. They are sophisticated global networks of thieves working overtime to steal from you. Technology must be leveraged to have tactical advantage against widespread cyber attacks. The Zellman Group has spent the last two years focused on this problem, securing the best-in-class solution and developing their existing core infrastructure. Partnering with a leading innovator of eCommerce solutions, Zellman Fraudnet is designed to "Boost Sales and Beat Fraud" for business working in card-not-present environments. Zellman Fraudnet is powered by Kount, EMEA 2013 Payment Award winner for Anti-fraud/Security Solution of the Year Award. Zellman Fraudnet provides a turnkey, comprehensive solution. (Source d-ddaily.com)

"Card-Not-Present Fraud" Whitepaper: A Primer on Trends and Transaction Authentication Processes  As the U.S. moves to EMV chip technology to significantly curb counterfeit card fraud at the retail point of sale (POS), criminals may turn their attention to committing card-not-present (CNP) fraud via online or telephone channels. Methods for securely authenticating CNP transactions and preventing fraud is the topic of the new white paper from the Smart Card Alliance Payments Council, “Card-Not-Present Fraud: A Primer on Trends and Transaction Authentication Processes” (which can be downloaded here). Criminals will often go after the weakest link in the chain. Many countries that have implemented EMV chip payments have reported fraudsters shifting their attention away from the physical POS to e-commerce channels where it’s much easier to make fraudulent purchases. It’s important that the U.S. payments industry be proactive and evaluate ways to strengthen the security of CNP channels at the same time as the payments industry migrates to higher levels of security in-store with EMV chip technology. (Source smartcardalliance.org)

Winning online in age of digital deception - What should you be looking for?  Counterfeiting and brand theft are crimes that have been given unlimited new life and opportunity online — they affect all industries and all major brands on a global scale. Recently the watchdog agency Business Action to Stop Counterfeiting and Piracy (BASCAP) put a $1 trillion annual figure on global losses from counterfeiting and piracy, with 2.5 million jobs put at risk. Luxury apparel, accessories fakes and counterfeit pharmaceuticals are widely recognized as targets, but every brand in electronics and categories from food and drink to heavy industry are also at risk. Our recent research shows that more than three-quarters of online consumers think they are buying the genuine article — only 24% of buyers intentionally purchase fake brand items, while 76% (and climbing) intend to purchase the real brand and are being duped. Finding the fakes, knowing how to identify them and blowing their cover is a delicate and painstaking matter, but ultimately, individual sites or listings on marketplaces selling counterfeit products can be taken down. (Source retailingtoday.com)

Most online retailers suffer cyber attacks, while majority of retail fraud takes place online 
The BRC’s British Retail Crime Survey 2013 found that 63% of online retailers said they had experienced hacking while 50% had faced denial of service attacks in 2012-13. The most common attacks were from computer viruses and malware, experienced by four in five retailers. According to the survey, most of the fraud that retailers experienced last year took place online. Online payment card fraud accounted for 63% of total retail payment card fraud, online account credit fraud for 77% of all retail fraud using this mechanism, online refund fraud for 60% and voucher or gift card fraud for 53% of all fraud committed in this way. (Source internetretailing.net)

Sears launches "In-Vehicle Pickup" service for online purchases

Home Depot opens the first of three e-commerce fulfillment centers

Retail Crime News
Sponsored by Sony

Deadly Shooting outside the Spokane Valley Mall; Lone gunman shot and killed by Police  One man was shot and killed following a high speed pursuit that ended near the Spokane Valley Mall on Tuesday night. It started around 7:00 PM when Spokane Police received a call from a man who was in a car claiming to be unstable and threatening suicide by forcing police to shoot him. Officers from Spokane and Deputies from Spokane County responded and located the car the man was in. Police pursuit the suspect in a high speed chase that ended at the Spokane Valley Mall. Finally, the man got off of the Sullivan exit near the Spokane Valley Mall and got out of his car. Moments later deputies say he made a threatening move and they opened fire. Police say the man was heavily armed. Sheriff Ozzie Knezovich confirmed the man was a veteran who had earned the Purple Heart after serving in Afghanistan. (Source khq.com)

Amber Alert issued after carjacking, kidnapping at a Safeway store in Oakland, CA; suspect had an earlier altercation over possible shoplifting  An Amber Alert was issued Tuesday after a carjacking and kidnapping of a 13-year-old girl and adult was reported near a Safeway store on Redwood Road in Oakland. Police are still desperately searching for a red sedan and two people inside who are believed to have been kidnapped at knifepoint from the parking lot. The car the suspect is believed to be driving is a red sedan with California license plate 6JFM648. The suspect was inside the store just before 1 p.m., when he drew the attention of store employees who thought he was trying to shoplift. The man argued with a clerk and ran from the supermarket with a knife in hand and then jumped into a sedan at the Safeway on Redwood Road at Highway 13. (Source go.com)

One suspect charged with murder in Bensenville, IL store clerk slaying  Bellwood man has been charged with murder in the slaying Jan. 19 of a convenience store clerk in Bensenville, prosecutors said in a release. Kenneth Bardlett, 20, is charged with first-degree murder in the slaying of Husein Saghir at Sam's Tobacco and Foodmart in Bensenville. (Source chicagotribune.com)

'Ringleader' of ID fraud ring sentenced to 12 years and $4.8 Million in restitution in NJ  The convicted ringleader of a massive identity fraud operation that caused more than $4 million in losses to banks, credit card companies and other lenders was sentenced to 12 years in prison Tuesday. Hayden also ordered Park to pay about $4.8 million in restitution. Park will almost surely be deported to his native South Korea when he is released from prison. (Source sfgate.com)

Facebook, media help Toms River, NJ Police nab Kohl’s theft suspect  Police said tips received on their Facebook page helped them apprehend a suspect wanted for a January theft at a Kohl’s department store in the township. Todd Timmerman, 44, of Toms River was arrested and charged with shoplifting as well as eluding capture for a Jan. 6 incident in which police say he was observed by store security on surveillance cameras removing a Keurig coffee maker from the box and attempting to remove the security theft prevention device. (Source app.com)

Man with Utah ties charged with stealing 18 guns from Roosevelt store; $185,000 warrant issued  Authorities believe they know who stole 18 semi-automatic handguns last summer from a locked display case inside a Roosevelt store. On June 23, a masked man dressed in black broke into Stewart's Marketplace, 245 W. U.S. 40, about 2:30 a.m. Store surveillance video shows the man running directly to the sporting goods department, shattering the glass out of a gun case and loading handguns into a duffel bag before running off. (Source deseretnews.com)

Young male suspect uses counterfeit $100 bills at Mall at Wellington Green in Florida; faces charges of uttering a forged instrument  According to the arrest report, Edward Ulloa tried to make a purchase from American Eagle Outfitters using a counterfeit $100. When he was denied, Ulloa left the store without the bill. Ulloa was later stopped by a deputy in the mall and detained. During a search of Ulloa's wallet, the deputy found five counterfeit $100 bills all with the same serial number, the report stated. Receipts found in Ulloa's wallet revealed that he had used $100 bills to make purchases at Victoria's Secret and Express. When the deputy spoke to the managers at both stores, it was determined that the bills also had identical serial numbers, the report stated. (Source wpbf.com)

Shop owner in Winnipeg, Canada fined $4K for selling bogus NHL items  A dedicated Winnipeg small businessman has paid a steep price after RCMP caught him selling counterfeit NHL team merchandise. But, a Manitoba judge heard this week, Michael Stoel's copyright-infringement case likely had far more to do with disreputable online suppliers than a willful intent to peddle illegitimate pro-hockey wares. Stoel, who owns Winnipeg's two Pylon Pop Culture stores, pleaded guilty Monday to breaching the federal Copyright Act and was fined $4,000. (Source winnipegfreepress.com)

Former Wendy’s restaurant manager pleads guilty to $2400 theft in Queensbury, NY  She was arrested in October after $2,423 was taken from a safe at the restaurant when it was closed. The safe was not forced open, and only a handful of employees knew the combination. (Source poststar.com)

JC Penney store in the Berlin Mall, Berlin, VT, burglarized for thousands in jewelry

Robberies and Burglaries

AT&T – Burglary – Conway, Ark. – suspect taken in custody by US Marshalls
County Farms – Armed Robbery - Egg Harbor, NJ – 3 suspects being sought by police, no injuries
Dollar General – Armed Robbery - Fayetteville, NC – 2 suspects are being sought by Police
Dunkin' Donuts – Armed Robbery – Fitchburg, MA – female suspect arrested in 2 possibly 3 Donut shop robberies
Grab n- Go – Burglary- Gray, KY – damage to the store and cash missing
Hilo convenience store – Armed Robbery – Hilo, HI – suspect arrested for robbery, assaulting an officer
Lewistown Pharmacy – Armed Robbery – Lewistown, PA –Suspect in custody
Northside Corner Pantry - Armed Robbery- Huron, CA- suspect arrested, no injuries
Stewart’s Shop – Robbery – Newburgh, NY – 2 suspects in custody
Suzy's Tavern – ATM Burglary -Auburn, NY -2 suspects arrested for theft and attempted theft of 2 ATMs
7-Eleven – Armed Robbery - Pacifica, CA – store held up twice in past 2 weeks


ORC News
Sponsored by Protection 1

Punta Gorda, FL shoplifters caught by Walgreen’s employees; suspect’s car had hundreds of dollars of merchandise from other retailers  The Punta Gorda Police Department arrested Tallahassee residents Tuesday afternoon, after Walgreens employees allegedly witnessed them shoplifting. A male and female suspect were stopped by police outside a CVS store. Officers transported the suspects back to Walgreens where store employees positively identified them as the people responsible for the theft. Although there was a minimal amount stolen from Walgreens, there was hundreds of dollars of suspected stolen items from other retail stores within the vehicle. During the investigation, officers also found cocaine in the sock of one of the suspects. (Source winknews.com)

New Orleans Police discover 98 stolen credit cards found during traffic stop, 1 connected to Target breach  Two New Orleans men are facing 98 counts of identity fraud and access device fraud after they were found to be in possession of stolen credit cards. Officials tell us that one card is connected to the recent Target data breach. "It may be that somebody else used the card during the Target breach and then sold it to someone else. We really have no idea," Chief Ricky Fox, Vinton Police Department, said. (Source wafb.com)

Man sought in Vineland Walmart baby formula theft  Police are looking for the thief who shoplifted 16 containers of baby formula, worth about $250, from Walmart on Monday afternoon. After employees at the West Landis Avenue store reported the merchandise was missing from a shelf, security reviewed surveillance footage and noticed a man concealing formula in his coat. The man left the store and appeared to put the baby formula near a skid steer loader in the parking lot, which was on site to clear snow. (Source thedailyjournal.com)

Hollywood, Florida Radio Shack Burglarized
Hollywood Police are investigating a burglary at a Radio Shack on Taft Street after burglars smashed through the store's windows and stole merchandise. An SUV was used to smash down the storefront causing an estimated $20,000 in damage. No information on the total inventory loss has been released. (Source nbcmiami.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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Michael Lawson, CFE was promoted Director of Shortage Control for Macy's.
Adalbert Martinez, CFI was promoted Senior Regional Loss Prevention Manager for CVS Caremark Corporation.

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Relax, Being Anxious Makes You a Good Leader  Being a leader means you have a lot of decision making to do, but that freedom of choice also leads to much anxiety. That might pan out to your advantage, though, as anxiety may have an interesting connection to accomplishing your goals you set before yourself. Anxiety, in fact is essential. (Find that perfect amount)

When Managing Difficult Employees, Take the Long View  I'm sure everyone has had one or more of these types of employees: ones that are incorrigible, stuck in their ways, focusing on other areas besides their own responsibilities. There is a way to manage this employee but you have to get down to the nitty gritty. (Reinforce your expectations)

9 Essential Principles to Create, Lead, and Sustain  With new technology popping around every corner, we are constantly challenged to be innovative at every turn, stay ahead of the competition, and keep creativity flowing. If you use these tips on how to best work with yourself and others, you'll find that everything is connected. (The pieces fit together)

An Olympic Coach's Strategies for Getting the Best Performance From Your Team  All leaders, whether you're an Olympic coach or store manager, want their teams to do well and succeed. That only comes with proper guidance and setting them on the path to success. Follow these strategies for getting the best out of your team. (One size does not fit all)

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Networking has always been a key to career development and finding that next job. However, if you're not careful it can also limit you, eliminate you and even work against you. If your network is comprised of executives doing exactly what you do, then you may have competition and may even find some working against you. You've got to broaden and expand your network outside your immediate group and establish relationships outside your company and your professional circle. Remembering that quantity is no substitute for quality and, as in any mutually beneficial relationship, what you bring to the table for them is as important as what they bring to the table for you.

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