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The D&D Daily Mobile Edition

February 25, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Anne Sullivan was promoted Vice President, Asset Protection & Safety for CKE Restaurants. Anne was previously the Director of Loss Prevention for CKE Restaurants before earning this promotion. She had also been the Senior Director of Asset Protection and the Director Supply Chain Security & Compliance for Charlotte Russe, as well as Senior Manager Loss Prevention for Pacific Sunwear of California, Inc. Congratulations Anne.
 

Internet drives growth in European card fraud
The data show that 60% of the value of fraud in 2012 resulted from card-not-present payments, compared to just 23% from POS terminals and 17% from ATMs. In 2008, just 46% of fraud was CNP and 36% was POS. Yet the European Central Bank argues that the 21% rise in CNP fraud between 2011 and 2012 must be seen in the context of a similarly rapid growth in online transactions. As online shopping continues to gain in popularity, the ECB blames the 15% year-on-year rise in the value of credit and debit card fraud on higher Internet crime. (Source finextra.com)

Apples Bag Check Lawsuit Depositions Reveal Accuracy Issues  Attorneys for Apple have responded to a lawsuit by current and former employees asking for back wages for bag security checks, saying the plaintiffs have failed to prove the practice affects all store employees, and asking that collective-action status be denied. Apple also provided testimony from an expert who watched store video surveillance tapes, and disputed the plaintiffs’ estimates that bag checks take 20 minutes or longer to conduct. Two main plaintiffs filed the lawsuit in June 2013 claiming they’re owed back wages for off-the-clock time to conduct bag checks whenever they left the store for breaks, meal periods and at the end of the shift. Since the original filing, the plaintiffs have filed an amended complaint, Apple has filed an answer, and late last year Apple took depositions from nine employees who have joined the lawsuit. The court documents paint the plaintiffs as a rag-tag band of former Apple employees who have spotty memories, vague knowledge of Apple’s policies, and a history of terminations and disciplinary actions. Overall, Apple claims the bag checks are “not common,” apply only to those who bring Apple products to work, and consume a minimal amount of time. (Source ifoapplestore.com)

PayPal and Samsung to roll out fingerprint authorization on new Samsung Galaxy  PayPal and Samsung on Monday announced a collaboration that will make Samsung Galaxy S5 users the first to be able to log in and shop at any merchant that accepts PayPal on mobile and in-stores with only their fingerprint. (Source chainstoreage.com)

Card Backlog Extends Pain from Target Breach
Last week’s story about steeply falling prices on credit and debit card data stolen from Target mentioned several reasons why many banks may not have already reissued all of their cards impacted by the breach. But it left out one other key reason: A huge backlog of orders at companies that manufacture credit and debit cards on behalf of financial institutions. (Source krebsonsecurity.com)

60% of US businesses surveyed increasing their cyber security budget because of Target breach  53% of US companies surveyed now regard the threat from cyber attacks as one of their top three business risks. (Source net-security.org)

Cerberus Capital Management lead bidder for Safeway - The new Albertson's is on its way to adding 1,300 stores  Last year, a Cerberus-led investor group agreed to acquire Supervalu’s Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market grocery stores in a transaction valued at about $3.3 billion. (Source drugstorenews.com)

Bi-Lo, Delhaize get green light on acquisition
Bi-Lo Holdings and Delhaize Group have received approval from the Federal Trade Commission to proceed with the transaction in which Bi-Lo Holdings will acquire substantially all of the stores in the Sweetbay, Harveys and Reid’s supermarket chains from Delhaize. (Source retailingtoday.com)

Ross Dress for Less expanding in Florida, with four new stores - now has 130 in Florida

National chain-store sales fell 1.3% in the first three weeks of February

Nearly 90% of Shoppers Who Can’t Find Help Are Leaving Stores Empty Handed

Office Depot expects to complete a “comprehensive reorganization” of the company by the end of February  "With our leadership team now in place, we have moved quickly to establish a lean organizational structure with the best talent from across the legacy businesses as well as adding new external leadership,” Roland Smith, CEO said. The office supply retailer said Tuesday its loss grew to $144 million compared to a $17 million loss in the year-ago period amid weaker margins and expenses stemming from its merger with OfficeMax. (Source foxbusiness.com)

Carson Village Market server hacked - more than a dozen victims of credit card fraud now reported in Southeast Michigan and Detroit  Representatives of Carson Village Market, located west of Carson City, told authorities their server was compromised by hackers, but that IT personnel have stopped the unauthorized access and the store has since taken security measures. A spokesperson said customers are no longer at risk, according to the news release. (Source mlive.com)

London, England retailers complain about lack of police support and follow up - under-reporting crimes  The majority of shops hit by crime in London found the police unhelpful when they filed a report, it was claimed today. London Assembly Tories said a study showed that 64 per cent of shop owners felt the police had not taken their claim seriously and in future would not bother reporting crimes. Researchers found there was a “lack of faith” across the capital in the Met’s ability to deliver justice for small businesses. In spring 2014, the first MPS Business Crime Strategy will be published, which aims to build on and further improve engagement, information sharing and interaction between police and business communities. (Source standard.co.uk)

Restaurant Death at Walt Whitman shops in Long Island a 'Wake-Up Call' - Carbon-Monoxide Detectors Not Required for Businesses  Mr. Berkowitz, the restaurant owner where the manager died, said he hopes this tragedy makes officials rethink the need for carbon monoxide detectors in commercial spaces. "This is a terrible wake-up call to have but maybe it's an opportunity to focus everyone's attention on the need for commercial [CO] detectors," he said. (Source wsj.com)

Roof collapse at Performance Food Group Distribution Center in Kendallville, IN; eight employees treated for ammonia exposure  Officials believe the roof came in due to the weight of the snow being to much for the roof to handle. So far, officials believe 30 people were exposed to the anhydrous chemical leak and 8 people are being treated for symptoms. Performance Food Group is a food-service industry distributor with multiple locations around the country. The Kendallville plant employs between 1,000 and 2,000 employees. (Source indiananewscenter.com)

Quarterly Same Store Sales Results

Home Depot Q4 up 4.4% with net sales down 3%
Macy's Q4 up 2.3% with sales down 1.6%
Cracker Barrel Q2 restaurant down 0.6% & retail down 3.0% with sales down 2.5%
Office Depot Q4 North American Retail down 4%
Steve Madden Q4 down 6.7% with net sales up 8.7%

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Loss Prevention News Network
 

"ORC in the Retail Industry"
New Episode - Organized Retail Crime Series

Scott Sanford, Director of Investigations & Training for Barnes & Noble, discusses where he thinks the loss prevention industry is going and how we're making progress in the fight against Organized Retail Crime. A subject matter expert on the topic, Scott has a unique gift and ability at resolving ORC cases and has been extremely involved in the national effort for many years. Learn how you can be better prepared to combat the North American epidemic that is ORC. Watch the interview here.

Featuring:
Scott Sanford, Director of Investigations & Training, Barnes & Noble
Gus Downing, Publisher and Editor, The D&D Daily and LPNN

Filmed January 13, 2014 in NYC

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e-commerce
Sponsored by The Zellman Group

Fraud - The Hidden Cost of Breaches

Lauren Bridgeo
Vice President, LP Systems & Field Services
The Zellman Group

Credit card based data breaches are the hot topic lately. Recent breaches were facilitated through malware installed on merchants’ POS terminals, corporate electronic accounting systems, medical systems, and a variety of locations where a weak firewall allowed access. The estimated cost to financial institutions for recent breaches will surpass $200 million. This number doesn’t include the cost of fraud to merchants and the likelihood is that online merchants will sustain the greatest losses. The actual dollar value will be virtually impossible to determine because the credit card numbers obtained will be used across many merchants and many verticals.

The information obtained in most retail related attacks includes not only credit card magnetic strip data, but also personal data from databases such as name, address, telephone, email, date of birth, social security numbers, etc. If obtained, much of this information can be used to create new accounts or take over accounts. These are two very common methods of fraud, particularly as perpetrated against the online merchant. Issuing banks have not universally shut down accounts associated with most breaches. Most issuing banks will wait until fraudulent activity is identified through their fraud review process or by the card holder. Fraudsters, on the other hand, will display several personalities when it comes to using the data obtained through attacks. Some will use the information in a blitz attack hoping to use an account while it is still active and get as much value through physical or digital goods and services in a short burst of time. Some will hold the information for weeks, months or years before using the information. And yet others will sell the information or parts of the information to other fraudsters via the internet “black market”.

How do fraudsters monetize? They duplicate the actual plastic card to be used in card present scenarios (ATMs, retailers, kiosks). Or they sell the card credentials (number, address, cvv, email, etc) on the black market. Purchasers of the card credentials access online merchant sites and perform Card-Not-Present (CNP) transactions with correct account related details in both a physical goods and digital environment. Typically, fraudsters will first validate the viability of the account by performing an “authorization” only transaction at an unsuspecting merchant. Accounts with successful authorizations are then listed for sale. In the CNP environment, the merchant will almost always bear the liability for the fraud and subsequent chargeback. In the card present environment the issuing bank will likely bear the liability depending on merchant response to media requests for fraud related chargeback claims.

The eCommerce Fraud Detection software that powers Zellman FraudNet has detected a high volume of organized fraudulent activity in recent weeks with created “identities” originating out of non-US countries gaining exceptionally high authorization approval rates on U.S.-issued credit cards. On your ecommerce site, it would be prudent to pay close attention to high velocity on high value orders.

 

National Retail Federation
 

Credit cards: Stripe and swipe or PIN and chip?

Published on the NRF Retail's Big Blog

For more than a generation, U.S. credit cards have carried account numbers and other data on a magnetic stripe that has made them easy to swipe through a card reader at the cash register while the customer signs for the purchase.

Stripe and swipe was a great technology in the 1980s, the decade the cassette tape Walkman and the Apple Macintosh computer came out.

But in a day when thieves half a world away can hack into a computer system to steal card data rather than breaking into a bank to steal cash, “stripe and swipe” is about as high-tech as an 8-track tape.

That’s why NRF and the retail industry have been pushing cards that encrypt data on an embedded micro-chip and protect consumers by using a secret Personal Identification Number (PIN) rather than relying on the illegible scrawl most people pass off as a signature. You wouldn’t want to rely on a signature to get cash out of an ATM, so why rely on a signature when you use a credit or debit card?

This week, NRF boiled down the advantages of new PIN and Chip technology over old-fashioned stripe-and-swipe with a new infographic.

The easy-to-understand infographic shows two scenarios:

 

● When a physical card is stolen, a thief can use a magnetic stripe card simply by signing the cardholder’s name, while they are blocked from using a PIN and Chip card because they don’t know the PIN.
● When card numbers are stolen, a thief can easily create a counterfeit magnetic stripe card and sign for the transaction, but a chip card is almost impossible to duplicate and the PIN would block its use even if it could be duplicated.

“PIN and Chip prevents credit card fraud ... and protects you,” the infographic reads. “The safest cards deploy both PIN and Chip technology.”

The infographic and NRF’s Myths and Facts on card security were sent to Capitol Hill today. Both will be used as NRF continues to educate policymakers and the public on the retail industry’s efforts to protect consumers against criminals trying to steal their card data.

For more, go to www.nrf.com/datasecurity.

 

Press Release
 

Wicklander-Zulawski & Associates Unveil
New Distance Learning Modules

The WZ Distance Learning Modules are part of WZ’s newly packaged curriculum guide, “6 Milestones to Elite”

CHICAGO, February 24, 2014 – Wicklander-Zulawski & Associates (WZ) unveil new Distance Learning modules that incorporate instructor-led webinars with computer-based training as part of its newly packaged curriculum guide, “6 Milestones to Elite.”

“We’ve launched our 6 Milestones to Elite curriculum guide in response to an overwhelming number of requests for new topics and an organized way to approach professional development,” said Shane Sturman, CFI, president and chief executive officer of WZ. “We’re very proud of our new Distance Learning modules that add value to interviewing professionals no matter what their career level. Whether just starting out in the interviewing field or if you need a refresher of key concepts, professionals will find educational value throughout the 6 Milestones to Elite guide.”

The new Distance Learning modules tackle interviewers’ most challenging subjects, as well as combine self-guided and instructor-led training for maximum impact for the individual.

Example topics of the new webinars include:

It’s all about the behavior you can’t see: Tackling Telephone Interviewing
5 Reasons Your Rationalization Stinks
You Got It. Now What? Developing and Documenting an Admission
Reading Between the Behavior: Use behavior to narrow the scope of your investigation

Registration for individual webinars is now available. WZ will be rolling out packages available for purchase by bundle, individual or subscription in March. For more information, visit http://www.w-z.com/six-milestones-to-elite/.

About Wicklander-Zulawski & Associates
Wicklander-Zulawski & Associates, Inc. (WZ) continues to be recognized as the premier consulting and training organization on interview and interrogation techniques. We are dedicated to assisting public and private sector professionals to improve their ability to obtain the truth through legally acceptable techniques. To this end, WZ continues research to provide the highest quality training, products and professional services to an ever-increasing number of organizations throughout the world. Interview and Interrogation Training Courses by Wicklander-Zulawski provide human resources, police, loss prevention, and law enforcement with world-class interview and interrogation training certification.

 

Retail Crime News
Sponsored by Sony

14-year-old opens fire outside a Walmart in Easley, SC; Teen chased after caught shoplifting  A 14-year-old boy was arrested late Sunday night after police say he ran from an Easley Walmart security officer, then opened fire on bystanders. The teen fired at two innocent bystanders, who tried to help security catch the teen. Once outside the store in the parking lot, investigators said the teen turned and fire two shots at those men. Nobody was injured. Officers were able to catch up to and disarm the teen, who was carrying a 9 mm handgun. The teen faces two counts of attempted murder, armed robbery and possession of marijuana. (Source wyff4.com)

Shoplifting cases turn violent in Greenville, S.C.
Two incidents over the weekend have caught the public's attention. At Dillards on Sunday, police said a woman hit a security officer with her car while trying to get away with $1,000 worth of merchandise. Dechant said she sees shoplifting all the time and it no longer surprises her. But the violence, she said that sometimes goes along with it does surprise her. Also on Sunday, police in Easley said a 14-year-old pulled out a gun at Walmart after being confronted by a security officer for shoplifting. Not only is that person shoplifting, but they are carrying a weapon,” said Hunter West. West is the district manager of American Security, which provides trained security guards to businesses across the Upstate. West says unfortunately, his officers are seeing more violence in traditionally non-violent crimes. (Source wyff4.com)

California slaughterhouse under criminal investigation  A congressman says federal officials have launched a criminal probe of a Northern California slaughterhouse that recently recalled more than 8.7 million pounds of beef. The USDA has said Rancho processed diseased and unhealthy animals and circumvented federal inspection rules. The recalled beef was sold at Walmart and other national chains and used in products, including Hot Pockets. Huffman said investigators could not provide details, but he was told the suspected misconduct was grave. (Source canadiangrocer.com)

One Family Dollar store in Rock Hill, S.C. becomes battle ground for police to stop crime  The news channel was even told the crime rate could have led to the store closing. However a call from corporate denied that claim. Police have made 27 arrests for shoplifters in the last six weeks alone and have decided to get aggressive with a new approach for this store. "What we wanted to do was reach out to that store and see what we could do to help them," Lt. Vernon Harmon said. Since New Year’s Day, Rock Hill's street crimes unit is now putting undercover officers inside the store, keeping patrol cars nearby, and encouraging Family Dollar to call sooner when there's a shoplifter. Several sources told Channel 9 that the company considered closing the store because of the rampant theft and other crime problems. Since 2011 police have received over 100 calls. (Source wsoctv.com)

Blue Dot Card bomb threat hits Walmart store again in Tewksbury, Mass. - canine units swept the store - no bomb

Three suspects busted passing counterfeit $100's at Weis Markets and Gabriel Brothers in Dauphin County, Pa.

Three suspects busted hitting Sears store twice and Home Depot store in Ocan Township, N.J.

Zales Outlet in Rehoboth Beach, DE burglarized early Saturday morning; 15 items stolen total value of $3500

Hamilton Heights, NY check cashing store robbers threaten to explode bomb  Police are looking for two men wanted in connection with an attempted robbery in Hamilton Heights, and they're hoping surveillance video will lead to arrests. Authorities say the men caught on surveillance video went into a Pay-O-Matic Check Cashing store on Broadway around 8:30 a.m. on February 18 and demanded access to the safe. They threatened to blow up a bomb. An employee triggered a panic alarm, and the men took off empty-handed. (Source abclocal.go.com)

Zales in Brandon, FL hit with a Roof Top Burglary for $104,000 in just 3 minutes 175 items, including 34 Movado watches, 48 Bulova watches, 3 Citizen watches, 24 gold jewelry items, and 16 men’s jewelry items, valued at $104,482.00, were taken.

Hollywood, FL T-Mobile smash and grab early Tuesday morning  According to Hollywood Police, at around 4 a.m. a gold Nissan Armada backed over the sidewalk and into the store on Sheridan Street near North 46th Avenue. Two men then ran into the store and took an undetermined amount of merchandise. (Source local10.com)

Verizon offers $5,000 for information on Tallassee, FL burglary  Verizon has offered a $5,000 reward for the recovery and arrests of those involved in a burglary at one of their Tallassee store locations. Thieves stole $30,000 worth of electronics from the Verizon store according to the Tallassee Police Department. The theft occurred around 10 p.m. Feb. 8 after a person or persons used a tool to pry open the front door of the building. (Source montgomeryadvertiser.com)

Suspect in the theft of over $8000 in merchandise from 12 Minnesota Menard stores jumps bail  According to the Washington County attorney’s office, Phillip Charles St. John failed to appear at a Feb. 13 court hearing on the felony theft charges, and a warrant was issued for his arrest. In just a week and a half, two partners in crime stole $8789 worth of goods from 12 Menards stores in the metro area last summer. The thefts took place between June 4 and June 14, 2013. (Source lillienews.com)

Clay County, FL Deputies look for three thieves involved in Sunglass Hut theft Deputies in Clay County are looking for three thieves who stole two pairs of sunglasses from the Sunglass Hut at the Orange Park Mall. Deputies said the stolen sunglasses added up to $374.93.

Robberies and Burglaries
 

 

ORC News
 

Ringleader & "World's Top Salesman" - cybercriminal admits to selling 118,000 stolen credit card numbers costing $59M  Using the online nickname "Eskalibur," he became one of the world's top salesmen of stolen credit card numbers in a cyberfraud that crisscrossed the globe from Ukraine to South Florida and New York. On Monday, Egor Shevelev admitted trafficking more than 118,000 stolen or fraudulent credit card numbers with an intended or potential loss of more than $59 million. Shevelev, who turns 28 on Tuesday, admitted that he was one of the ringleaders of the fraud, which he operated from his apartment in Kiev. Shevelev might have gotten away with his crimes here if he had stayed in Ukraine, which has no extradition treaty with the U.S. He was arrested while vacationing on the Greek island of Rhodes in 2008 and extradited to New York in 2010. (Source sun-sentinel.com)

Male ORC suspect busted stealing $1,000 of tooth whitening strips from Aurora, ILL., Target store

3 Toledo women charged in Mentor, OH TJ Maxx theft  Three women are accused of being involved in the Feb. 23 theft of 13 purses from TJ Maxx in Mentor that had a total value of $2,379.87. Two of the women face one count of theft, a fifth-degree felony. A third co-defendant faces one count of complicity to felony theft, a fifth-degree felony. Bond was set for each woman at $30,000. (Source news-herald.com)

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Vendor Spotlight
 

Axis Introduces Interactive Camera Visualization Tool for SketchUp 3D CAD Software to Depict Real World Surveillance System Coverage in Building Design Plans

SketchUp users can select different Axis network cameras and place into design plans to conceptualize installation and visually depict camera field of views; Different mounting positions and view angles can be evaluated, and users can pan, tilt and zoom cameras to determine best video surveillance coverage

CHELMSFORD, Mass. – February 25, 2014 – Axis Communications, the world leader in network video, today introduces the Axis Camera Extension for SketchUp 3D CAD software providing interactive 3D models of Axis Network Cameras to aid in the planning and design of video surveillance systems. Users can conveniently select and place Axis cameras directly into CAD building plans to visually depict the areas the cameras will cover once installed.

The new SketchUp extension from Axis, which is free to download, allows users to see exactly how the cameras fit into the building’s layout and easily spot if camera views are obstructed by columns or walls. Different mounting positions and viewing angles can be evaluated through interactive camera models showing the respective camera coverage areas. This effectively reduces the risk of unexpected blind spots when planning and designing surveillance systems.

SketchUp users can select Axis Network Cameras from the toolbar to compare and evaluate different camera models and determine optimal mounting positions. Users can also pan, tilt and zoom to adjust field of views and define the best settings for optimal surveillance coverage. See the demo movie here.

SketchUp 3D CAD software also integrates with Google Maps, which makes it easier for integrators, architects and engineers to design surveillance systems for city surveillance or critical infrastructure projects.

“Our team continues to produce an increasing number of tools to make surveillance system design straightforward and more accurate for our A&E community and integrator partners,” said Geoffrey Bauer, A&E Program Manager for North America. “We’re excited to add the extremely popular and easy-to-use SketchUp for 3D camera design to our existing portfolio of CAD drawings, which includes Axis Coverage Shapes for Visio and Axis Camera Families for Autodesk Revit. SketchUp helps users select the right camera model, installation position and individual field of view in a virtualized 3D model based on the client’s building design. Providing this visual surveillance design tool further engages the customer in the design process to align their expectations more closely with a realistic solution.”

Axis’ broad portfolio of video surveillance system design tools also includes Axis Coverage Shapes for Microsoft Visio and Axis Camera Families for Autodesk Revit.

The Axis Camera Extension for SketchUp is available today and can be downloaded free of charge from axis.com/tools. The Axis Camera Extension for SketchUp is initially available in English, and more languages (French, Italian, German, Spanish, Russian, Japanese, Korean, Brazilian Portuguese and Chinese) will be added in Q2, 2014.

 

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Anne Sullivan was promoted Vice President, Asset Protection & Safety for CKE Restaurants.
Michael Robinson was named Regional Loss Prevention Manager for Family Dollar.
Ryan Destler was named Manager, Loss Prevention Investigator for Sears, Roebuck and Co.

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The Secret to Prioritizing Your Time
There's never enough of it, and it always seems to fly by. That's why it is important to make the most of your time when you have it, whether at work or at home. Try this method of prioritizing your time into categories and see if it helps you stay focused. (As easy as A-B-C)

How Always Being Busy Makes You Dumber  The way we perceive our lack of time can actually affect how we think. This study argues that busy people get distracted and easily overwhelmed, only thinking of the short term goals can lead to poor decisions. Deal with the business with these tips. (Make reminders)

5 Ways to Finally Stop Wasting Your Time 
As important as it is to keep your time prioritized, it's equally as important to weed out those distraction that constantly keep us from getting things done. Use these five ways to get your precious time back, and keep it there! (Stop people pleasing)

Turn Stress into Your Best Ally
Instead of hating stress and getting ready to attack it head on, view it in a new and more positive light. This Seattle Seahawks psychologist says that stress can actually be beneficial when channeled in positive ways like eating the right foods or getting enough sleep at night. (Make stress work for you)

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Tip of the Day
Sponsored by Vector Security

The drive home can be the longest drive of the day when looking into the rear-view mirror and seeing nothing but the day's events. It is a great time for reflection and evaluation of all that transpired over the last 12 hours, often times allowing you to realize that the briefest interaction with someone may have been the most important event of the day. Those one line snip-its often times are where the true feelings and intentions are expressed. Piecing them together can mean the difference between success and failure of a project, a program, and even an executive. It is only in reflection that we see the truth and give ourselves the ability to react to it the right way the next day. Take the time and look in the rear-view mirror. You may see something you had not seen.

Just a Thought,
Gus Downing

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