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The D&D Daily Mobile Edition

March 21, 2014

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News Brief
Sponsored by WG Security Products, Inc.

African American Dillard's customer wins $600,000 for racial profiling - bad stop law-suit at Perimeter Mall, Atlanta, Ga.  Damien Solomon, 36, sued the department store after being falsely accused of shoplifting a pair of Levi’s jeans, and subsequently arrested in the case, according to court documents. Solomon told the Atlanta Journal-Constitution he’s still trying to clear his name from the criminal charges. He said he pursued the lawsuit because companies like Dillard’s shouldn’t be able to bully people. Solomon, who is black, said when he left Dillard’s his hands were empty, and video surveillance makes it clear that he did not take anything. "I didn’t have a bag, I didn’t have a coat and I didn’t have on a sweatshirt or anything,” he said. “I couldn’t have hidden anything. So why’d they pick me? Why did they do this to me?” Solomon’s lawyer, James Hugh Potts II, said the store fabricated a story and kept spinning the same lie for five years. The verdict included $250,000 in general damages and $350,000 in punitive damages. (Source vahi.patch.com)

Why So Many Retail Stores Get Hacked for Credit Card Data  Is there something wrong with PCI’s standards? Retailers and banks were on the hook for more than $11 billion in global card fraud in 2012, a 15 percent increase from the previous year. Almost half of all card fraud occurs in the U.S., though the country accounts for just a quarter of global card spending. That’s partly because of light enforcement of PCI rules and a lack of accountability for assessors, most of whom are drawn from a pool of hundreds of approved consulting firms, says Avivah Litan, a cybersecurity analyst with Gartner (IT). “They have no responsibility,” she says, drawing a comparison to credit-rating agencies in the runup to the 2008 financial meltdown. While intensive audits cost tens of thousands of dollars and run for months (Target spokeswoman Molly Snyder says the company’s annual reviews take nine months), some assessors charge a couple hundred dollars for simpler audits they finish in an afternoon. Auditors can get certified over a weekend through courses that end in an open-book test. Small retailers assess themselves. People should not think an audit is some kind of insurance policy. “It requires exertion of effort every day of the year.” She says companies deemed PCI-compliant before a major breach have later been found to be out of compliance at the time of the attack. Bob Russo, general manager of the PCI Security Standards Council, says, “We do not hear about all of the attacks that are prevented by the security implemented through adoption of PCI standards.” The U.S. has lagged other countries in adopting stronger security measures, such as authentication chips in cards, point-of-sale data encryption, and secondary ID numbers that substitute for card numbers online. The current PCI standard gives every party in the payment system a credible way to redirect blame for a breach, says Jeremiah Grossman, founder of online security company WhiteHat Security. “Basically you have the council blaming the victim, the victim blaming the standard, and the cardholder caught in the middle,” he says. “Nothing will change, because the incentives in the system are broken.” (Source businessweek.com)

Retailers likely to opt for credit cards without expirations on private label cards to save money  As the U.S. card industry transitions from magnetic stripe technology to smart cards with embedded microchips, consumers likely will see expiration dates extended to four or five years for the network-branded cards. (Source toledoblade.com)

Mobile POS Set to Grow 95% Worldwide in 2014 & Number of Devices Used in U.S. Will Triple This Year  The adoption of Mobile devices for POS transactions is exploding worldwide, as retailers and consumers alike get more accustomed to retailers asking for payment on mobile devices. According to IHL Group, shipments of new mobile POS device shipments are expected to grow more than 95% worldwide and will surpass 108% growth in North America in 2014. “The move to Mobile POS in certain segments is radically changing the face of retail and hospitality, particularly mall-based retailers,” said Greg Buzek, President of IHL Group, a Franklin, Tennessee-based retail market research firm. “The number of devices used by Department Stores, Apparel and Shoe stores in particular will nearly triple this year.” (Source businesswire.com)

Supervalu plans streamlined independent business operation - going from 3 to 2 operating regions - cutting 80 jobs

Could Our Food Supply Be A Target For Terrorists? FDA Proposes new rules  The Food and Drug Administration (FDA or we) is proposing to require domestic and foreign food facilities that are required to register under the Federal Food, Drug, and Cosmetic Act (the FD&C Act) to address hazards that may be intentionally introduced by acts of terrorism. These food facilities would be required to identify and implement focused mitigation strategies to significantly minimize or prevent significant vulnerabilities identified at actionable process steps in a food operation. FDA is proposing these requirements as part of our implementation of the FDA Food Safety Modernization Act (FSMA). (Source regulations.gov)

Walgreens Pharmacies Compromising Security Of Patient Information?  Walgreens is under attack and facing accusations from a labor-backed consumer group that it could be exposing customers’ private medical information with its new pharmacy consulting desks. The setup is offered in stores in 30 states. CBS 2’s Dorothy Tucker talks to the group, which has provided undercover video that customers in Illinois may have been victims. Thursday afternoon, the pharmacist at the Walgreens in Oak Park staffs the new consultation desk at the drug store. But Change to Win is releasing video alleging that sometimes the desk is empty. It claims photos show information about customers’ prescriptions and medicine is left unattended. (Source cbslocal.com)

Spotlight on Leadership column coming Monday on one of the top Women in the Loss Prevention industry

Verint Systems to host Global User Conference in Florida in June

Verint's Global User Conference, "Driving Innovation 2014," will be held at the Hilton Orlando Lake Buena Vista Hotel in Lake Buena Vista, Fla., from June 9-12, 2014. This multiday conference will feature opportunities to network and share best practices in a variety of venues, including keynote and breakout sessions, special activities, and social media channels. Learn more here.

Quarterly Same Store Sales Results

Tiffany Q4 up 6% with revenue up 5%
New York & Company Q4 up 1.2%

Books-A-Million Q4 down 1.8% with revenues down 3.7%
Shoe Carnival Q4 down 2.5% with adjusted net sales up 3.5%
Darden Restaurants Q3 down 5.6% with total sales down 1.1%
Wet Seal Q4 down 16.5% with net sales down 30%
dELIA*s Q4 down 26.9% with total revenue down 34.3%

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eBay News
 

eBay Investigative Team Partnership with Broward County ORC Unit Leads to Arrests Of Alleged Fraudsters

 

A couple was arrested Thursday by the Broward County Sheriff’s Office and the federal south Florida task force on multiple fraud counts, armed drug trafficking and possession of stolen firearms. The couple is alleged to have attempted to defraud eBay and PayPal by making large purchases totaling more than $50,000 in an elaborate nonpayment scheme involving banks, Pay Pal accounts and eBay. The case which started in June 2013 ended Thursday with the seizure of vehicles, cash and weapons.

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Loss Prevention News Network
 

NuTech National

Your External Business Partners Series

Greg DeTardo, President of NuTech National, talks about the history of his company and how it has grown into one of the largest alarm service networks in North America. With the primary goal of delivering complete customer satisfaction, NuTech National has embraced technological change over the years, adapting to the evolving needs of the retail industry. Greg reveals why NuTech's model has been so successful. Watch the interview here.

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e-commerce
Sponsored by The Zellman Group
N.Y. to License and Regulate Bitcoin Exchanges  The Bitcoin fervor, created by the spectacular failure of Bitcoin exchange Mt. Gox, has abated but New York stepped up to remind the Bitcoin community of the uphill battle it faces in terms of increased government scrutiny. The state’s Department of Financial Services (NYDFS) said last week it will license virtual currency exchanges based in New York. To obtain a license to operate a Bitcoin exchange, companies will have to submit formal applications and proposals to NYDFS and abide by regulations the agency said will be proposed publicly before July 1, 2014. (Source cardnotpresent.com)

Digital bill folders help restaurants boost security, convenience  Dickie Brennan & Co. has begun using a new payment solution aimed at both helping its restaurants improve the customer experience and comply with upcoming changes in credit card technology. In September the company introduced digital bill folders, or check presenters, at its new 200-seat Tableau restaurant and debuted them at its 200-seat Palace Café in late February. One plus is that they allow guests to swipe their own payment cards. Another security advantage is that the card readers are readily adaptable to a new, more secure, payment standard. (Source nrn.com)

Biometrics: Mobile payments' new challenger
Security is a major concern in mobile payments, and passwords seem insufficient to many consumers. Now that the latest versions of Apple's iPhone 5S and Samsung's Galaxy S5 have fingerprint scanners, it looks like biometrics could be a contender in the mobile payments game, says an article from Vice Magazine's Motherboard blog. Despite its merits in terms of security, biometric matching is nothing more than a high-tech replacement for the PIN, Steve Wilson, an analyst with Constellation Research, writes in a blog post. NFC is much more important for identity, he adds. (Source fiercemobileit.com)

NFC takes another blow as 7-Eleven, Best Buy shut it down

Mobile POS use in department stores to nearly triple: report

DSW elevates store outlook, invests in omnichannel
 

Canadian Push
Sponsored by Vector Security
$3.4M security upgrade coming to Yorkdale mall in Toronto  New surveillance cameras with the ability to capture license plates on vehicles in the parking lot are part of a $3.4 million security upgrade at Yorkdale Shopping Centre. Last year, one man was fatally shot and another was wounded in what police said was an “ambush” at the mall. Michael Nguyen, 23, was killed on March 30, 2013. Nearly two months later, a man was shot while he ate at the Joey’s restaurant the mall. Shopper safety is our number one priority and this security installation will make Yorkdale a very undesirable place for criminal activity,” Anthony Casalanguida, Oxford Properties’ Director of Retail, said in a statement Monday. “We now have one of the most technologically advanced surveillance coverage systems available to help deter crime, assist police investigations, and help people feel safe. There are three components of Yorkdale’s security upgrade:
• Complete 360-degree coverage delivering almost 100 per cent surveillance coverage of public spaces
• Exceptionally high resolution image capture that allows magnification in remarkable detail; up until now, surveillance images didn’t always provide sufficient detail to assist police investigations
• A surveillance room staffed by trained security officers monitoring live feeds 24/7 from all surveillance cameras (Source citynews.ca)

Two men sought in retail store thefts in Ottawa-Gatineau area  Police want the public’s help to identify suspects in a series of thefts targeting retail stores in the Ottawa-Gatineau area. During January and February, Ottawa police say thieves hit businesses and made off with several items, including electronics and men’s fragrances. One suspect is a white man, in his mid-30s to mid-40s. He wore dark pants, a grey hoodie and black toque with a logo on the front. The second suspect is a white man, 25 to 35 years old. He wore a black hoodie and black baseball cap. He has short dark hair and is unshaven. (Source ottawasun.com)

Three arrested in alleged $1.6-million fraud at York University  Police have arrested three York University employees over an alleged $1.6-million fraud – the second seven-figure theft uncovered at the school in the past four years. The alleged scheme involved fraudulent billing over seven years – from November, 2005 to October, 2012 – when York officials were alerted by a whistle-blower and contacted police. Vittoria Caparello, 51, and Yossi Zaidfeld, 38, are both charged with fraud. Melissa Caparello, 27, is charged with possession of property obtained by crime. (Source theglobeandmail.com)

5 cellphone store employees in north Toronto charged in theft ring  Five employees of a cellphone parts and repair store in the city’s north end are facing a total of 18 charges for their alleged roles in what police are calling a “sophisticated” cellphone theft ring. “This is the most sophisticated cellphone operation that I have seen,” said Det. Const. Ron Chhinzer. “I haven’t encountered anything like this.” (Source citynews.ca)

Images released of Kitchener Queen Stop store robbery suspect  Police are hunting for a suspect after two attempted robberies of variety stores in Kitchener on Tuesday. At 7:43 p.m., a man entered the Queen Stop store, 432 Queen St. S., and demanded money, Waterloo Regional Police report. He left the store empty-handed. At 7:54 p.m., a man with a similar description entered the Big Bear Food Mart., 159 Highland Rd. E. There, the man said he had a gun and argued with the clerk. Again, the suspect left without money. (Source therecord.com)

Retail Fast Facts: February 2014

Highlights:
Total monthly retail sales changed by 2.1% over the comparable month last year.
Total sales excluding food, automotive and gasoline changed by 0.3% over the comparable month last year. Read more (Source retailcouncil.org)

 

Big Data
Sponsored by Verint
IBM Fraud Squad Fights Scammers With Big Data  IBM has announced a "Smarter counter fraud" initiative, intended to fight crime with new software that will let organizations tap into mobile, social, and Internet data to locate sketchy behavior and stop fraud before it happens. IBM's software will pick up on "non-obvious relationships" and links between entities. It uses "enhanced visualization technologies that can identify and connect fraudulent patterns closer to point of operation, and machine learning to help prevent future occurrence based on previous attacks and behaviors," IBM said. (Source pcmag.com)

Major Companies Not Making Full Use of Big Data to Spot Fraud  Most companies are spurning the chance to improve their anti-fraud and anti-bribery efforts by not taking full advantage of big data analysis, according to research from business consulting firm EY. EY found that 63% of senior executives surveyed at leading companies around the world agreed that they need to do more to improve their anti-fraud and anti-bribery procedures, including the use of forensic data analytics (FDA). Advanced FDA technologies including statistical tools that incorporate predictive modeling, anomaly detection and risk-scoring algorithms, can mine such big data to detect potentially fraudulent transactions in real- or near-real-time. (Source cio.com)

Retailers still downplaying Big Data's impact on Loss Prevention, study shows  The 2014 Big Data in Retail Study shows that U.S. retail executives differ on where they think Big Data will have the greatest impact in retail. Only 16 percent of respondents said "Loss Prevention processes" could benefit the most from Big Data technology. As shown in the graph, LP still falls behind other marketing and merchandising-centric areas of retail. Download the full report here. (Source businesswire.com)

NRF Blog: "Four big lies about data security" from recent Congressional Hearing

Venture capital firms pouring hundreds of $ Millions into Big Data startups

Verint Systems to host Global User Conference in Florida in June

 

Retail Crime News
Sponsored by Sony

Plot to shoot up Walmart store brings 15-year prison sentence in Bolivar, Mo.  A 21-year-old man from Bolivar received two concurrent 15-year prison sentences on Thursday for thinking about shooting up the Walmart store here in late 2012 after he told police he first thought about a mass shooting at a movie theater here. Senior Judge William Roberts convicted Blaec Lammers in January of first-degree assault and armed criminal action. Polk County Prosecuting Attorney Ken Ashlock argued this wasn't Lammers' first criminal act and that a longer sentence is appropriate. He asked for the maximum 15-year sentence for first-degree assault. He had threatened an employee at Walmart in the past, about three years prior to this incident happening, and he also assaulted a co-employee where he worked, Trent Slagle, with a weapon of sort, a rope with an item tied to a piece of metal,” said Ashlock. Ashlock said the act of buying the gun and purchasing a ticket to a movie theater a month ahead of time showed the elements of a plot to harm someone. Police said Lammers told them that he first planned to shoot up the theater and then changed his mind and decided to do the shooting at the store because he could get more ammunition there. (Source ky3.com)

7 alleged California gang members indicted for crime spree, bragging on Facebook  Starting in 2012, the gang members began to commit a number of crimes, including armed robberies of Rite Aids, Safeway and Walmart stores as well as home-invasion-style robberies, authorities said. The indictment says the Landry Crew boasted about their crimes on Facebook, Twitter and other social media sites. Some of the gang members took photos of themselves after their crimes rolling around in cash and stolen items. (Source foxnews.com)

911 Calls Released from Conway, AR Walmart Shooting  KARK 4 News has obtained the 911 calls* from the Feb. 1 shooting inside the Walmart store on Skyline Drive. The shots left one woman critically injured. Dozens of people reached for their cell phones when they heard the gunshots inside the store. Each one of the callers offers a different glimpse into that terrifying night. "Somebody got shot...like gunfires going everywhere," reported one caller. Another told dispatchers this: "My husband and I were in line checking out and he came up behind us and started shooting this lady, and he shot 5 times maybe, I don't know, and we all hid, but the man out here is saying the lady needs help she's been shot." The calls were made to the Conway Police Department and the Faulkner County Sheriff's Office. The magnitude of calls could be heard through the phone lines and it sounded like every operator on that Sunday night was taking calls from the scene. A suspect was arrested in the case the next day and is awaiting trial. (Source arkansasmatters.com)

Target burglary suspect fatally shot by state troopers at Maryland House  State troopers fatally shot a burglary suspect at the Maryland House Travel Plaza Friday morning after the man rammed a police car, injured an officer and fled. State Police spokesman Greg Shipley said the suspect was driving a red Dodge Caliber. The dead man's identity has not been released, pending notification of his family. Aberdeen police went to a Target store in Aberdeen at about 2:30 a.m. to investigate a report of a burglary and saw a suspect fleeing the store, Maryland State Police said. The man did not stop and rammed his car into an Aberdeen police car, injuring the officer and leaving the police car not drivable. State police, who said troopers arrived to assist, said the driver rammed other state police and Aberdeen police cars as they pursued him along both northbound and southbound Interstate 95. At the I-95 southbound entrance ramp to the Maryland House rest stop area, police shot at the driver, who was the only person in the car. The driver was flown to the Maryland Shock Trauma Center, where he was pronounced dead. (Source baltimoresun.com)

Kroger Moves To Disarm Security Guards
Changes are in the works when it comes to how Kroger stores handle their security. The grocery chain has confirmed with 10TV that it is in the process of transitioning to unarmed security guards across the company. Kroger says that armed guards will remain in some locations but not in any of its Columbus area stores. 10TV obtained a letter that U.S. Protection Service, the company that provides security guards to Kroger, sent to its employees. The security company says in the letter that effective March 29, its guards will be “completely unarmed--no weapons, no handcuffs, no chemical repellant, no baton, etc." (Source 10tv.com)

Arrests made in Foley, Alabama burglary and robbery spree targeting several Dollar General and Advanced Cash locations  Larry Shoots was one of the suspects in the robberies. The investigation led to a search warrant of Larry Shoot's residence where evidence of the robberies was recovered. On March 20, the Foley Police Department arrested Larry Shoots and charged him with the burglary of the Approved Cash Advance (North end location), Robbery of the Dollar General (North end location), Robbery of the Dollar General (South end location), robbery of the Approved Cash Advance (South end location), theft of ATM machine from Gelato Joe's and theft of ATM machine from Glen Lakes Golf Course. (Source gulcoastnewstoday.com)

Trial Ordered For Couple Accused Of Using PetSmart Jobs To Commit Burglaries In San Mateo County  Allegedly Kirk used her knowledge of customers who were out of town through her job boarding dogs at PetSmart to ransack the empty homes and take items including electronics, jewelry, and in one instance a silver Porsche 991S from a Portola Valley home, according to prosecutors. The couple had pleaded not guilty to more than a dozen burglary and car theft charges, along with gang allegations. Ortega-Ramos is believed to be a Norteno gang member and Kirk his associate, according to prosecutors. (Source cbslocal.com)

Fort Worth police looking for robber who hit a Metro PCS employee with rifle barrel  The man entered the store in the 3600 block of East Rosedale Street, south of East Lancaster Avenue, about 7:40 p.m. and pointed a rifle at two employees working behind the counter, police said. The man “displayed a very demanding and violent demeanor,” police said. (Source dallasnews.com)

Wilke-Barre, PA Man allegedly stole from store minutes after release by police on retail theft charges 

Harris County District court judge's office “skimmed” with device - cards used at two Wal-Mart's in Houston

Brookhaven, Ga., Emissions Express raided by police for three dozen cases of credit card fraud

Slidell police looking for 2 women accused of using stolen credit cards at Kohl's

Fayetteville Jewelry store armed robber gets 27 yrs. in prison

Robberies and Burglaries

 

ORC News
 
Solvay pair’s retail scheme a growing trend nationally and locally in Syracuse, N.Y. Stealing - Refunding for gift cards - Selling to pawn shops  Police say a pair of women from Solvay were caught in a large scale larceny scheme and are calling their arrests a small victory in the ongoing battle against organized retail theft. 29-year-old Jessica Brettschneider and 29-year-old Sara Michlovitch teamed up to rip off several dozen chain stores throughout Onondaga County, according to police. Investigators say the women would steal merchandise from one store, such as Target, and return the items to another Target store in exchange for gift cards. They would then sell the gift cards to pawn shops to get half their face value in cash, police said. “Several (gift cards) per day, the investigation is still ongoing, but several per day for several months, right now we are in excess of $5,000,” said Manlius Police Investigator James Gallup. The scheme is not uncommon, according to DeWitt Police Sgt. Scott Kapral, who pushed for the formation of the Greater DeWitt Retail Theft Coalition. (Source localsyr.com)

ORC suspect busted with booster bag after hitting Vacaville Premium Outlets  Vacaville police arrested an Oakland man Wednesday evening after authorities say he stole thousands of dollars worth of merchandise during a shoplifting spree at a number of local businesses. Christopher Cooper, 30, was taken into custody by officers. During a search of Cooper's vehicle, officers reportedly found thousands of dollars worth of merchandise from a confirmed eight (and suspected nine) stores -- six from the Vacaville Premium Outlets, Nadasdy said. Officers also identified merchandise from two stores that are not in Vacaville, and were attempting to contact representatives from the Westfield Mall in Fairfield. According to Nadasdy, Cooper utilized a tin foil-lined "booster bag" in order to sneak the merchandise past the various stores' anti-theft sensors. (Source contracostatimes.com)

Alleged Vera Bradley Purse Thief Cast a Wide Net in Michigan  Laura Anne Pochmara of Rochester may be implicated in Vera Bradley thefts Saline, Dexter and several other cities. She now faces felony charges or organized retail fraud. The arrest of a Rochester woman in Milford two months ago for the alleged theft of thousands of dollars in Vera Bradley designer purses is helping authorities in several other southeast Michigan cities wrap up similar crimes that date back more than two years. Authorities allege Laura Anne Pochmara, 37, would sell the purses on craigslist.com or eBay, return them to retail stores for cash or store credit, or sell them at discounted prices to friends and acquaintances. (Source patch.com)

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Lead from a Place of Confidence, not Fear  Great leadership, and ultimately success, comes from having confidence in your endeavors and that you will overcome any obstacles that will, undoubtedly, come your way. Don't let fear get in the way of accomplishing your goals; focus on these areas and you will go far. (Follow the Wright Brothers)

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Which is More Profitable: Employee or Customer-Centered Leadership?  All leaders have employees and customers, and it can be difficult to manage and balance the interests of both parties. There's no right or wrong answer, and it ultimately comes down to learning and accepting both perspectives. (Besides, you can't have one without the other)

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A career is like a horse race that starts fresh every day, every week, every inventory period, every management change and with every new employer. Quite frankly, it never stops and you don't want it to actually because if it does, then you're not in the game and being in the game is what it's all about. And as in every race, some days you win, some days you show, some days you place and some days you just down right lose. The bottom line is learning how to lose with dignity and how to win with humility. But the most important thing is just staying in the game and keeping focused.

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