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The D&D Daily Mobile Edition

February 20, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Ray Cotton named CCO for Lumber Liquidators - A huge industry announcement - The first time an LP Executive has acquired the position  Ray Cotton was promoted to Chief Compliance Officer for Lumber Liquidators. This is in addition to his role as VP of Global Security and Risk for the specialty retailer of hardwood flooring. This promotion is a major announcement for a number of reasons: It's an LP industry first - the first time an LP executive has acquired the position of CCO. It's also a major development for the Lumber Liquidators Company, which has made great strides since federal authorities raided their Virginia headquarters last September after claims by the Environmental Investigation Agency that they purchased illegal wood from protected forests in Russia through a Chinese-owned supplier. It now appears that Lumber Liquidators has come out on top, with Fourth Quarter sales up 15.6% and net sales up 22.7%. Add to that this new addition of a Chief Compliance Office in Ray Cotton, and you have a retailer that is absolutely on fire, outpacing everyone in the retail industry right now.

Prior to joining Lumber Liquidators, Ray was Head of Global Security & Safety for Riverbed Technology. He has held a number of upper-management Loss Prevention/Security jobs throughout his career, including roles at Facebook, TeleNav, Orchard Supply Hardware, Hooters and TJX Companies. Ray graduated from American University with a bachelor's degree in Criminal Justice. Congratulations on this huge and amazing promotion, Ray!
 

 

Just Released: 2012 National Retail Security Survey
by the University of Florida

Average shrink rate 1.47% of total retail sales - Cost U.S. retailers over $44 Billion

The University of Florida has just published its 2012 National Retail Security Survey, an annual security research project that analyzes shrinkage, fraud and various other topics related to retail Loss Prevention. Supervised by Professor Richard Hollinger, Ph.D., of the Univ. of Florida - the 2012 NRSS is the most recent annual report in a 20-year-long series of industry-wide empirical research studies. Since the first NRSS was published in 1991, this study has become the bellwether information source regarding retail loss prevention and retail store security practices in the United States. 93 corporate retail chains representing 22 different vertical markets took part in the research, including a majority of the nation's top 100.

This 2012 Survey found an average shrinkage rate of 1.47% of total annual sales of retailers - a figure that is up from the previous year but down overall from the highs recorded in the 1990s. "This year's relatively low shrinkage percentage of 1.47% still translates into a disturbingly large $44.247 billion annual loss to U.S. retailers," states the report. "All of this massive financial profit loss is directly a consequence of preventable inventory shrinkage occurring within the store."

*If you have questions about access to or interpretation of the report findings, please send me an Email to rhollin@ufl.edu.

To view the full 2012 National Retail Security Survey, click here.

The password is nrss2012.

Principal Sponsors:

Fire Sale on Cards Stolen in Target Breach
Last year’s breach at Target Corp. flooded underground markets with millions of stolen credit and debit cards. In the days surrounding the breach disclosure, the cards carried unusually high price tags — in large part because few banks had gotten around to canceling any of them yet. Today, two months after the breach, the number of unsold stolen cards that haven’t been cancelled by issuing banks is rapidly shrinking, forcing the miscreants behind this historic heist to unload huge volumes of cards onto underground markets and at cut-rate prices. Earlier today, the underground card shop Rescator[dot]so moved at least 2.8 million cards stolen from U.S.-based shoppers during the Target breach. This chunk of cards, dubbed “Beaver Cage” by Rescator, was the latest of dozens of batches of cards stolen from Target that have gone on sale at the shop since early December. (Source krebsonsecurity.com)

NFC gets boost from Visa, MasterCard support for HCE  Banks around the world have been applauding MasterCard and Visa's support for Host Card Emulation, or HCE. HCE allows NFC applications on Android devices to emulate smart cards and financial institutions to host payment accounts in a virtual cloud. Without HCE, NFC-based cards need to be stored in a secure element that is embedded in mobile phone SIM cards and controlled by mobile operators. We introduced HCE to make it easier for developers to create NFC applications like mobile payments, loyalty programs, transit passes and other custom services. (Source mobilepaymentstoday.com)

Before the fraud losses are even tallied for Target - it's cost Minnesota's credit unions $750,000 to replace cards

Safeway confirms grocer is exploring possible sale

Ross Dress for Less expanding in Chicago area

Stores can see where you go by tracking your phone - FTC holding hearings  The Federal Trade Commission held a workshop Wednesday on the issue, part of a series of privacy seminars looking at emerging technologies and the impact on consumers. FTC attorney Amanda Koulousias says the commission wants to better understand how companies are using phone-location technology, how robust privacy controls are and whether shoppers are notified in advance. Some of the major players in the field of mobile location analytics — iInside, Euclid, Mexia Interactive and others — have agreed to a "code of conduct" advanced by a Washington-based think tank, the Future of Privacy Forum. It calls for "hashing" MAC addresses, notification signs in stores for consumers and an opt-out website for people to enter their phones' MAC addresses to prevent companies from tracking them. The opt-out website can be found at www.smartstoreprivacy.org. (Source associated press)

Retail groups ramp up inspections of Bangladesh textile plants  The Accord, a consortium brought together by European retailers who committed to fund the effort and include outside oversight, is separate from the Alliance for Bangladesh Worker Safety, an effort by big U.S. retailers like Wal-Mart and Target to achieve the same ends. The Accord has more binding requirements, but the Alliance has set up its own inspection program. Several hundred factories fall under both. And both groups also have published databases listing the specific factories they cover, broadening disclosure about the network of plants that comprise the textile supply chain. Working with unions and advocacy groups, the two organizations have come up with common inspection standards, and Loewen said the hope is to both improve conditions in the short run and help Bangladesh build its own capacity to oversee the sprawling industry. (Source washingtonpost.com)

FDA initiates Secure Supply Chain Pilot Program with 13 prequalified pharmaceutical distributors  Thirteen prequalified companies have now been designated to take part, and will receive expedited entry for the importation of up to five selected drug products into the United States. The goal of the program is to enable the FDA to evaluate resource savings that will allow the agency to focus imports surveillance resources on preventing the entry of high-risk drugs that are the most likely to compromise the quality and safety of the U.S. drug supply. (Source drugstorenews.com)

Battlefield Mall Security Officers recognized for saving a life in the Loft store  It was Oct. 30 when Carol Johnson, 44, was found face down, unconscious and blue at the Loft — a store in Battlefield Mall. Officer Cody Kent, Sgt. Anthony Medici and Security Director Dale Booth from mall security responded to the call for help from a store employee. En route to the store, Booth called 911. At the store, Medici and Booth rolled Johnson on her back and determined she was not breathing. Kent brought in an automated external defibrillator from the mall security vehicle while Booth began performing CPR chest compressions. Medici attached the AED pads and administered two shocks. An emergency medical service team came on the scene and took over medical care, Sanders said. They confirmed she was in ventricular fibrillation, but while on her way to the hospital, Johnson began breathing on her own. In the days following, Booth followed up with the hospital where Johnson went for treatment and learned that she was recovering well. Booth remembers the nurse telling him, “Without a doubt, you guys saved her life.” Kent, Medici and Booth were awarded the Civilian Medical Life Save award by the Springfield Fire Department. (Source news-leader.com)

Quarterly Same Store Sales Results

Conn's Q4 up 33.4% with net sales up 44.8% (plans 15-20 new stores)
Genuine Parts Q4 sales up 13% (no store data provided)
Jack in the Box Q1 up 1.9%
Canada's Loblaw Q4 up 0.6% with revenue up 2.3%

Wal-Mart U.S. Q4 down 0.4% with net sales up 2.4% with net income down 21%



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The Loss Prevention industry's first-ever live broadcast. With over 2,000 viewers and great Guests, Cast and Crew, the D&D Daily's "Live in NYC" event covered timely subjects and delivered valuable information for the LP viewers. MC’ed by two dynamic and absolutely energized industry executives, the event was a huge success and showed how the Daily continues to lead the way in "Educating, Informing & Instilling a Sense of Community" for the LP industry.

Visiting with LP Leaders of various Solution Providers, Retailers, Academia, and Trade Associations, the sessions covered a wide array of timely and critical subjects that can have an impact on your career and add value to your performance. Watch it here.

Interview Sessions Include:

WG Security Products - (5:12)
"ORC in the Retail Industry" - (21:22)
"Internal Growth - Positioning Yourself for Promotion" - (46:13)
"It's a Mutual Investment" - (1:06:57)
"Emerging Loss Prevention Issues: Training is Key" - (1:29:49)
"North America's Conversion to IP" - (1:49:33)
"Taking an AP Team & Program to the Next Level" - (2:09:33)
"The Impact of IT Monitoring on Employee Theft and Productivity" - (2:33:08)
"The New Customer Bill of Rights" - (3:07:44)

 

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e-commerce
Sponsored by The Zellman Group
E-retail rolls in 2013
E-commerce spending increases nearly 17% in 2013, and 16% in the fourth quarter of last year, the U.S. Commerce Department says. Online shoppers in the United States spent $69.2 billion in the fourth quarter of 2013, up 16.1% from approximately $59.6 billion for the fourth quarter of 2012, according to figures released by the U.S. Commerce Department. Total retail sales, meanwhile, increased 3.8% year over year. E-commerce sales accounted for 6.0% of total retail sales in the fourth quarter, compared with 5.4% for the same period on 2012, according to the Commerce Department. E-commerce as a percentage of total retail sales excluding foodservice—mainly restaurant and bar sales—along with sales of autos and fuel—products not commonly bought online—stood at 6.4% for the fourth quarter, up from 5.9% from the third quarter of 2013 and 5.3% for the fourth quarter of 2014. (Source internetretailer.com)

Mobile purchases to reach 53 billion by 2016
The number of purchases through mobile devices is expected to almost double from 27 billion in 2013 to more than 53 billion per annum by 2016, according to a new report. According to a report from Juniper Research, about 80% of the purchases would include digital content and mobile ticketing solutions. Analysts believe that with the increasing number of OTT (Over The Top) storefronts introduced direct carrier billing solutions to supplement credit/debit card payment facilities, the number of transactions would grow significantly over the years. The storefronts that have rolled out direct carrier billing capitalise from younger generation customers and unbanked users for the first time, the report revealed. There is also a spike in paying users, frequency of purchase and average transaction value in storefronts which have already introduced direct carrier billing solutions. (Source cbronline.com)

eBay buys virtual fitting room provider Phisix
 

Retail Crime News
Sponsored by Sony

Tuesday's Jewelry store heist in Paramus caught on video  Eyewitness News has obtained video of a Paramus, New Jersey jewelry store robbery in Paramus where thieves got away with a safe containing up to $250,000 in jewelry. First they smashed a stolen Ford pickup truck right through the glass doors. Then they wrapped cables around the massive safe full of jewelry and hauled it out the door where a front end loader was ready to scoop it up and dump it into another getaway car. (Source abclocal.go.com)

Target Loss Prevention Associate assaulted during an apprehension in Bakersfield, CA  The Bakersfield Police Department is seeking the community's help in identifying and locating two suspects that they say robbed the Target on Ming Avenue. Police said that on Feb. 11 at 12:30 p.m. the suspects entered the Target and one concealed merchandise while the other acted as a "lookout." As both suspects were exiting the store the Loss Prevention Officer identified himself in order to detain the suspects, police said. Police said one of the suspects punched the Loss Prevention Officer in the face, then both suspects struggled with the Loss Prevention Officer before one of them brandished a knife. There were no injuries from the struggle. (Source turnto23.com)

Shooting at Little Havana, FL supermarket leaves 3 injured; Police say security guard shot the offender several times  One person was shot, another was injured with a machete and a third fainted at a Little Havana supermarket Wednesday night. It all started at the Presidente Supermarket with an altercation between a security guard and an offender. The security guard shot the machete carrying offender several times after police said he made death threats to several market patrons, began an argument with a woman and hit the security guard over the head. (Source local10.com)

Security video released of man setting himself on fire at a Kroger store in Covington, GA  Security video of a horrific scene inside a Newton County Kroger where a man set himself on fire in the middle of the grocery store. It is 10 seconds of video that is chilling to watch. Security video from inside Kroger on Highway 278 in Covington showed the police officers doing everything they can do to save Timothy Singleton, on Tuesday. But, at one point in the video, Singleton is seen fighting off three officers as he used a lighter to set himself on fire. Seconds later, a puff of smoke from a fire extinguisher used on Singleton is visible. A Kroger manager used it to put the man out. Officers then dragged the Singleton to safety. The officers suffered minor burns to their arms and the man had second-degree burns on his body. Police said they still don’t have an explanation for the man’s outburst. (Source wsbtv.com)

University of Md. Security Breach Impacts over 300K Students and Staff  The University of Maryland is the latest victim of a massive data breach. The school admits more than 300,000 social security numbers were stolen from a database containing information on anybody who received a school ID since 1998. UMD's Diamondback newspaper reports staff and student birth dates, names, university identification numbers in addition to social security numbers were among the information stolen. The university confirmed that no financial, medical or academic information was compromised. (Source kticradio.com)

Homeland Security Investigations Special Agent Chad Reynolds was awarded the Assistant Attorney General’s Award for Distinguished Service for his work on Operation Island Express  Because of his work, a black market identity fraud ring was dismantled. (Source beloitdailynews.com)

Skimmer found on NY State Thruway gas station pump in Sloatsburg

Skimmers found inside Hess gas pumps in Brooksville - Tampa, Fla., area

Niagara Falls, NY man pleads guilty to $13,000 burglary from an Electronic Cigarette store

Cross-dressing armed robber of a Dollar General store in Dearborn Height, MI sentenced to 9 to 15 years in prison

NYPD seeking suspects in 2 rooftop burglaries; 99 Cents Deal and Super Pioneer Supermarket both in Queens
 

Robberies and Burglaries

Man wanted in string of armed robberies in Greensboro
Three convenience stores violently robbed last night in Houston, Tx.- person wounded in gunfire
Smash-and-grab burglars hit Midtown T-Mobile phone store in Atlanta

Circle K – Armed Robbery – Chula Vista, CA – police believe suspect tied to gas station robbery
Jiffy Food Store – Robbery - Brookneal, VA – suspect plead guilty to wielding baseball bat in robbery
Noble Conv. Store –Armed Robbery – Syracuse, IN – Teen suspect called police, turned himself in
Our Store – Armed Robbery – Pendergrass, GA – suspect fled empty handed, police identified suspect
Penacook Pharmacy – Armed Robbery – Concord, NH – suspect demanded drugs, no injuries
Rite Aid – Robbery - Powdersville, SC – while clerk was getting change, man took $30 from register
Sally Beauty – Armed Robbery – Ft. Worth, TX –coat seen by store; may be tied to other robbery 
Shell Station – Armed Robbery – Fort Meyers, FL – no injuries reported
Stewarts Conv. Store -Armed Robbery –West Rutland, VT – female suspect held up store at gunpoint

Super Mass Market – Armed Robbery – Lawrence, MA - suspect arrested yesterday
Wellington County area pharmacy- robbery – Wellington, CN – suspects stole 10 vials of flu vaccine

 

ORC News
Sponsored by Protection 1

2014 GRAORCA Retail Crime Conference!

The Georgia Retail Association Loss Prevention Council (GRALPC) and the Georgia Retail Association Organized Retail Crime Alliance (GRAORCA) would like to invite you to attend the
2014 GRAORCA Retail Crime Conference!

May 7, 2014
8:00am-5:00pm
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The Conference is open to all Law Enforcement Professionals, Loss Prevention Professionals, and Retail Owners/Executives and we anticipate POST Certification and CFI credits for attendance.

Registration opening soon! More to come!

Sponsorship opportunities are available for both Retailers and Vendors

Two Brooklyn men busted buying gift cards with fake credit cards hitting multiple Target stores in Paramus and Hackensack, N.J.  James E. Jenkins, 27, and Basil N. Chambers, 24, were arrested outside a Paramus Target Tuesday night after using fraudulent credit cards there and at a Hackensack Target earlier in the evening, said Hackensack police Capt. Thomas Salcedo. Police believe the accused did the same thing at other Target stores in the area because of receipts found in their car, Salcedo said. Police still were examining those receipts, he said Wednesday. He said there is no reason to believe the suspects are connected to a widely publicized breach involving credit card numbers stored by Target. Police still were trying to determine whether the accused used legal credit cards that had been stolen or made counterfeit credit cards using stolen credit card numbers, Salcedo said. (Source northjersey.com)

One member of ORC credit card gang convicted hitting Best Buy stores & others buying gift cards with fake credit cards in Beaverton  One of three suspects accused last fall of making fraudulent purchases from metro area retailers with counterfeit credit and gift cards has been convicted and sentenced in Washington County Circuit Court. On Oct. 21, Beaverton police began an investigation after employees at Beaverton Best Buy reported a woman had made more than $1,400 in purchases with suspicious-looking credit cards. She then left the store in a rented SUV. The same day, a Nordstrom’s loss prevention manager reported the woman used a Texas ID and alias while checking out. On Oct. 23, an employee of Enterprise Rent-A-Car reported the woman was going to exchange the SUV at Enterprise’s PDX branch. Police stopped the vehicle as it pulled into the business and three suspects were arrested. (Source oregonlive.com)

ORC felon convicted on 9 burglaries and 6 thefts - hitting Walmart stores-selling goods with female accomplice in Shenango Valley, Pa.  Hassel was sentenced Feb. 8 to 2 to 6 years in state prison, which was put on top of a sentence of 5è to 15 years that was imposed in September for a series of other burglaries and crimes. He also admitted stealing merchandise with a total value of $2,515, including video games, six times between July 24 and 30 from Walmart, Hermitage. (Source sharonherald.com)

Police looking for ORC suspect hitting Dillard's three times in Greenville, S.C., Haywood Mall  Officer Johnathan Bragg said the man was wearing the same clothes on three different occasions when he entered the Dillard's store and took a total of $6,000 worth of merchandise. (Source foxcarolina.com)

Wal-Mart smash & grab couple caught on camera in Lafayette, GA; $30,000 from 2 stores  Police in North Georgia are on the lookout for a couple that got away with tens of thousands of dollars in merchandise from local Wal-Mart stores. The smash and grabs were caught on camera. Police warn the thieves may strike again. Wal-Mart surveillance cameras clearly show the same couple bust open glass cases and take off with a total of around $30,000 in electronics. First the Trion Wal-Mart, then the Lafayette Wal-Mart, and police worry they won't stop there. Two North Georgia Wal-Mart’s that are 20 minutes apart were hit by the same pair of thieves Monday night. Both thefts were late in the evening, not long before their midnight closing times, when there are fewer customers and workers in the store. (Source wrcbtv.com)

3 female shoplifters assault a Marshall’s Loss Prevention Associate in Greensboro, NC  Police released photos of three women suspected in the assault and thefts of purses that happened at 9:25 p.m. Monday. The women entered Marshall’s department store and took several expensive purses and ran. They assaulted a loss prevention officer who tried to stop them. (Source news-record.com)

Hy-Vee in Peoria, IL hit by ring of baby formula thefts  Thieves have once again targeted infant formula at a local grocery store. An employee at Hy-Vee reported 28 cans of Enfamil formula were stolen some time last week. Large quantities of baby formula have recently been reported stolen from area Kroger stores, as well. The Hy-Vee theft involved 12.6-ounce cans of the product worth a total of $419.72. (Source pjstar.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.

Do you have an ORC case to share?
Share your ORC news and help the industry grow

Vendor Spotlight
 



Vector Security Introduces Hosted Video Solution

CloudControl Provides Scalable, Efficient and Reliable Video Security Monitoring

PITTSBURGH, February 18, 2014 – Vector Security announced today the companywide launch of CloudControl, its hosted video solution for commercial and residential customers. CloudControl is an alternative to conventional analog cameras that offers HD image capture and mobile access to real-time IP video.

To date, the company has piloted more than 50 CloudControl offerings in select areas, installed with hundreds of cameras, in a range of business and residential applications.

The solution has proven especially effective for helping businesses monitor multiple locations remotely, reduce internal resources needed for enterprise-level security, and improve internal processes through more intelligent customer and employee monitoring. Businesses piloting the solution are using it for multiple scenarios including review of foot traffic to properly staff locations, document theft, employee training and vandalism notifications.

“Vector Security has been a leading provider of video solutions to commercial and National Account customers for many years,” said Rick Simpson, Vector Security Vice President of Technology. “We launched CloudControl to fulfill a need for quality video that is easily accessible and tamper-proof with little-to-no maintenance. We have heard one too many times that when a customer goes to access video that a DVR or other device wasn’t working properly. As a result, what they thought would be there wasn’t. CloudControl takes this worry out of the equation.”

Key CloudControl benefits include:
 

Low up-front investment with no software or equipment updates required.
Simultaneous multi-site viewing via smartphone or desktop web browser.
Health monitoring for all cameras with triggered alerts to your mobile device.
Tamper-proof to ensure access to video when you need it most.
Rapid access to both low- and high-resolution video via web browser.
Scalable and secure enterprise solution that grows with the business.
In-camera analytics to leverage data for business needs.

“As technology continues to mature, Vector Security is committed to providing innovative security solutions that meet customer needs, both today and in the future,” said Pam Petrow, Vector Security President and CEO. “Hosted video surveillance, backed by Vector Security’s top of the line security and managed broadband solutions, enables businesses and individuals to achieve highly effective, reliable monitoring that is affordable, operationally efficient and scalable as their needs evolve.”

About Vector Security
For more than 40 years, Vector Security, Inc. (www.vectorsecurity.com) has been a premier provider of intelligent security solutions tailored to the needs of the customer. Headquartered in Pittsburgh, the company offers a full suite of electronic security services for residential, business and national account customers across North America and the Caribbean through a network of branches and authorized dealers. Vector Security is a sister company of the Philadelphia Contributionship, a mutual insurance company founded in 1752, and currently provides cost-effective, technology-based security solutions to more than 270,000 homes and businesses.

 

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On the Move
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Ray Cotton was promoted to Chief Compliance Officer for Lumber Liquidators.
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8 Tips for Collaborative Leadership
In a world where everything is constantly changing, it's important for leaders to be able to rely on their team's intelligence and ability to be resourceful. Collaboration is a key ingredient for the recipe of success. Use these tips to help build collaboration in your team or company. (Get rid of silo mentalities)

The One Behavior that Guarantees Failure  Have you ever heard of a leader who was afraid, yet still accomplished what he or she had set out to accomplish? If you don't try something, or tell yourself it won't work because of x, y and z, you're already failing. Auto-Preemption Syndrome makes your brain freeze, and avoid ideas you deem unsuccessful. (You must suspend disbelief)

Why the Coach Approach Beats the Manager Mentality  Coaches and managers are quite different from one another, even though we sometimes use the terms interchangeably. Managers show people how to do something, whereas coaches help people realize their full potential. Use these four ways to adopt a coach mentality. (Motivate, don't direct)

True Leaders Have True Grit
What makes up a leader? Determination, prowess, skill? All of these things make up a true leader, as well as a whole slew of other qualities. What's especially important is how much grit you have. Do you have that gumption, that stick-to-itiveness to keep going when the going gets tough? Take this quiz and find out! (Do you have what it takes to be a true leader?)

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Tip of the Day
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Managing Change

Yeah right. Most of the time it manages you and you merely hold on for dear life hoping that you survive the change coming right at you. There's volumes written about managing the change process, so if you're looking for the academic answer it's out there and it's important to study it and understand the stages one goes through. But when faced with the reality of it, academic responses often times are like plays written on a chalk board. They're great in design but when faced with execution we all make mistakes. And making a mistake during a change process can be deadly.

The one rule that seems to be the common thread in all of the literature and with all of the executives who lead or teach the processes is that in order to truly manage it or survive it, one must embrace it, support it, and even profess your loyalty to it. Because it's a time when everything is being questioned and all things are being changed. And corporate America is looking for those who support it and those that don't. So its critical that when faced with change, you look like the person leading it and you act like the person who thought of it.

Just a Thought,
Gus Downing

Gus Downing

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