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The D&D Daily Mobile Edition

March 31, 2014

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The LP Industry's #1 News Source - Informing, Educating and Instilling a sense of community


 

Spotlight on Leadership
 

Rosamaria Sostilio, SVP Asset Protection, celebrating
25 years with Saks Fifth Ave, now Hudson’s Bay Company

With the exciting news earlier this year of being promoted to Senior Vice President of Asset Protection for Hudson’s Bay Company, comprising Saks Fifth Avenue, Saks Off 5TH, Lord & Taylor, Hudson’s Bay and Home Outfitters, Rosamaria has reached a career milestone that few obtain. As one of the industry’s leading executives she’s also the Chairperson for the National Retail Federation’s LP Advisory Council. Rosamaria has devoted her entire career to helping transform loss prevention into true stakeholders, by having a seat at the table and demonstrating how we can impact the entire organization, while also serving as a beacon in the community during times of crisis.

With an emphasis on inspiring, developing, and mentoring, Rosamaria has impacted hundreds of retail executives. Having helped to develop the NRF’s Women in LP caucus, she’s shown her sincere commitment to helping develop tomorrow’s leaders.

Rosamaria has close to 30 years of industry experience and is one of the first executives to assume a senior vice president position in Asset Protection.

All of us at the Daily, and we’re sure the entire industry, would like to congratulate Rosamaria on her 25 years with Saks Fifth Avenue/HBC; truly a job well done!

 

News Brief
Sponsored by WG Security Products, Inc.


Sponsored by LP Software
 

Adam Alford was promoted to Senior Director of Asset Protection for GameStop.  Adam was the previous Director of Loss Prevention Operations for GameStop before earning this new promotion. He has worked at GameStop since May 2007, and started as their Regional Loss Prevention Manager. Adam was also part of the Target Loss Prevention team as their Executive Team Leader in Assets Protection. Adam earned his Bachelor's of Arts degree in Criminal Justice from The University of Georgia, and went on to acquire his MPA in Public Administration from Valdosta State University and also his Juris Doctorate in Law from John Marshall Law School in Atlanta. Congratulations Adam!

True Cost of Fraud 2013 Study: Manage Retail Fraud  The annual LexisNexis True Cost of FraudSM study establishes the actual cost of fraud as borne by U.S. merchants, along with key findings and specific guidance for the industry. While the rebounding economy is softening the blow of merchant fraud losses, merchants are still paying $2.79 in costs for each dollar of fraud losses they incur, up $0.10 on the dollar from 2012 (see figure 1). A spike in online fraud is responsible for these higher costs, as fraud through the online channel burdens merchants with higher fees and replacement costs than fraud through in-person or other channels. The surge in online fraud is driven by the proliferation of malware and data breaches, which facilitate the theft and misuse of consumers’ payment card, merchant account, and alternative payments account information. Merchants would be wise to focus on customer identity and transaction verification, particularly for online transactions, as online fraud and identity fraud take a greater percent of fraud losses in 2013. Merchants are paying more per dollar of fraud in 2013 (2.69 in 2012 to 2.79 in 2013) as a result of an increased proportion of fraud through the online channel. Merchants are losing a lower percent of revenue to fraud this year, at 0.51%, compared to 0.54% in 2012. The distribution of fraud types is shifting towards those associated with the greatest costs. Data breaches represent a multifaceted threat to retailers. Visa’s™ recent change in chargeback liability assignment has negatively impacted the success rate of some issuers. EMV may prove to be a double edged sword for preventing retail fraud. Large E-Commerce merchants who perceive value in fraud prevention are swayed by their return on investment. The LexisNexis® Fraud MultiplierSM cost shows that international merchants have seen a decline in both the multiplier costs (from 2.52 to 2.32) and the percent of revenue lost to fraud (from 0.74% to 0.69%) in 2013. Identity fraud remained stable at 21% for international merchants, even as it increased from 12% to 17% for all merchants. Mobile merchants are incurring the greatest fraud losses as a percent of revenue among all merchant segments (.75% in 2013). (Source lexisnexis.com)

More than 12% of all ocean freight invoices are reportedly defective - retailers have $300M credit with ocean freight carriers - That's $300M in shrink  U.S. retailers reportedly have $300 million in refunds with ocean freight vendors, yet they are unaware of this because of invoice errors by their ocean freight transportation providers. According to a report from ocean freight auditing service Ocean Audit. Ocean Audit data indicates that manually-driven processes, which include invoicing, have an adverse effect on the accuracy of pricing for more than 40 million containers that are shipped annually to the U.S. More than 12% of all ocean freight invoices are reportedly defective. "U.S. retail companies have been paying overcharges to ocean freight vendors for decades,” said Steve Fereirra, president of Ocean Audit. “This is due to them not having robust controls in place to audit and identify these errors. Without preventive measures in place, these overcharges will continue to cost U.S. retailers millions of dollars in lost profits each year. To make matters worse, consumers end up bearing the brunt of these overages when they make purchases because retailers have no choice but to increase the in-store or e-shop retail price to ensure each imported product is profitable.” (Source chainstoreage.com)

Trustwave plans to fight "baseless allegations" over Target breach - Trustwave denies handling Target data security - one bank pulls out  Last week, Trustmark National Bank and Green Bank NA, filed a complaint in Chicago federal court accusing Target and Trustwave of failing to properly secure customer data, and enabling the theft of 110 million records, including 40 million credit cards. Trustmark and Green Bank are seeking $5 million at least in unspecified damages, but said that losses could top $1 billion for the card issuers they're looking to represent (if class action status is approved), and more than $18 billion for banks and retailers. In response to these claims, Trustwave's CEO, Robert J. McCullen, has issued a statement on the matter, promising that his company is prepared to go to court over this and fight. In addition, sources close to the matter have confirmed that Trustwave didn't offer any additional services to Target, something the statement touches on. Experts in the industry are saying about this lawsuit - "It's a significant development because auditors and security technology companies have never previously faced liability for failing to detect or mitigate breaches. It certainly raises the bar for auditors, who may modify their auditing practices to enhance the scrutiny of the companies they audit," said Olcott. (Source csoonline.com) (Source chainstoreage.com) (Source cio.com)

Spec’s, major Texas liquor store chain reports data breach  One of the biggest Texas liquor store chains reported a security breach that exposed personal information of customers at some of its smaller stores. The Houston-based Spec’s chain said in a Friday statement that the breach exposed data from Oct. 31, 2012, through March 20. Spec’s said that, depending on individual circumstances, information exposed may include information from checks and credit and debit cards. However, most customers weren’t affected and fewer than 5 percent of its transactions were hacked. Spec’s said the intrusion involved 34 of its smaller neighborhood stores operating under various brands in College Station, Corpus Christi, El Paso and the Houston area. (Source washintgontimes.com)

Men's Wearhouse & Jos. A. Bank merger goal - to achieve $100M to $150M in cost savings over three years - That means jobs 

New York State cracks down on cigarette smuggling - with over 50% of all sold - smuggled in 

Smartphone Kill-Switch could save consumers and retailers $2.6B per year, says report - could become law 

NY attorney general sues FedEx over unlawfully shipping $10M cigarettes to consumers

Albuquerque turning into a powder keg - Sunday's protest turned violent against police

Retailer Coldwater Creek Preparing to File for Bankruptcy in Early April

Last week's most popular news article --

WZ Blog: The Seven Deadly Sins of Interviewing  Wanting the admission so much that one is unable to recognize behavioral clues as to other areas of theft the subject might be involved with. When the focus is just on the admission, it is common for an interviewer to get admissions only on the evidence they had when they walked in. Don't let these seven sins slip into your interrogation techniques! (Source w-z.com)

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"Taking an AP Team & Program to the Next Level"

New Episode
Leadership & Development Series

Jim Connolly, SVP Asset Protection for Burlington Coat Factory, talks about the keys to establishing a successful LP program – and how you take that program “to the next level” once it has matured. In 2010, Jim successfully engineered the biggest re-organization of Burlington’s LP program in the history of the company. Here, he offers tips on how to retain, challenge and develop team members, while keeping it fresh and exciting for the executives. Watch the interview here.

Solution Providers, have a video or commercial you want to publish? Contact us.

e-commerce
Sponsored by The Zellman Group
Target's credit-monitoring offer not enough to protect consumers, experts say  It was the data breach that shook the retail world. When Target Corp. announced in December that 110 million of its customers' payment and personal records had been breached, the news was unsettling - both because Target is such an iconic brand and because the breach was so invasive. Target has been busily doing damage control, issuing major apologies, testifying before Congress and contributing $5 million to a nationwide cybersecurity campaign. The company's profits have plunged as wary consumers stayed away and Target still faces dozens of lawsuits by banks and others. Perhaps most importantly, Target has been working to quell anxieties and rebuild the confidence of its shoppers. In its biggest mea culpa, the company has offered Target customers free credit monitoring for a year. But the deadline is fast approaching. Consumers have until April 23 to get signed up for the free offer. But for those who sign up, it's no guarantee that cybercrooks won't steal your identity and wreak financial havoc in other ways, such as using stolen credit/debt card info to siphon money from your accounts. (Source sacbee.com)

Bitcoin Companies Partner with Jumio for Stronger Authentication  Jumio, a Palo Alto-based technology company specializing in identity authentication for mobile and online transactions, today said it is partnering with eight Bitcoin companies in an effort to jumpstart a culture of self-regulation in a cryptocurrency environment. The Bitcoin Identity Security Open Network (BISON) hopes to engender trust in an ecosystem that has endured more than its share of bad publicity. Members of the network—exchanges, wallets and ATM providers—will leverage Jumio’s Netverify technology to validate the IDs of Bitcoin users by scanning them with their smartphone’s camera. It also will populate the personal information on the ID into any transaction form being used. The process will bolster the KYC process for all the companies in the network. (Source cardnotpresent.com)
 

Press Releases
 

AXIS Camera Station 4.0:
Efficient Video Surveillance Made Easy

Re-designed GUI, intuitive setup wizard with camera discovery, improved ease-of-use, access control support and Extended Smart Search highlight 4.0 release

CHELMSFORD, Mass. – March 27, 2014 – Axis Communications, the global leader in network video surveillance, today launches a powerful yet easy-to-use release of its video management software with AXIS Camera Station 4.0. Click here to see demo movie.

AXIS Camera Station 4.0 is a complete video monitoring and recording solution designed to seamlessly match Axis’ extensive range of network cameras and video encoders.
The new release, which refines the software in its tenth year and after 50,000 worldwide installations, includes a re-designed interface, intuitive setup wizard with automatic camera discovery and improved features for alarm management and investigation – including the ability to investigate hours of HDTV-quality recordings within seconds with Extended Smart Search.

Additionally, AXIS Camera Station 4.0 features basic integration support for AXIS A1001 Network Door Controller, available in the U.S. and Canada.

Easy to install, use and manage
With the introduction of AXIS Camera Station 4.0, Axis provides user-friendly and efficient video surveillance for small and mid-sized installations with a complete video monitoring and recording solution. The new setup wizard, which features automatic camera discovery, guides the user through every step of the configuration process, allowing the system to be up and running within minutes.

The new user interface of AXIS Camera Station has been re-designed with a focus on ease-of-use and intuitive operation of key features, including live view navigation, event configuration and video investigation. The GUI (graphical user interface) allows for quick access to Axis network camera or video encoder views, split-views and simple navigation with the ability to drag-and-drop between multiple screens.

Read more here.

 

Retail Crime News
Sponsored by Sony

1 killed, 1 wounded in Indianapolis ‘Body Gear’ store shooting  Indianapolis police say two teenagers have been arrested after a shooting at a clothing store that left one person dead and a second wounded. Police arrived at the Body Gear store on the city's east side on Sunday afternoon and found two people suffering from gunshot wounds. Both victims were taken to a hospital. Sgt. Kendale Adams says the male victim died at the hospital during surgery. The female victim was transported in good condition. It is not clear whether either of the victims was a store employee. (Source sfgate.com)

$1 million cargo theft - drivers had counterfeit documents & false ID at San Pedro logistics company - Friday, March 21  On Friday, March 21, 2014, two male suspects entered a logistics company in San Pedro area and provided employees with counterfeit documents and false identification to pick up two containers with merchandise. On Sunday, March 23, 2014, the same two suspects returned to the location and attempted to make a second fictitious pickup but were unsuccessful. The Los Angeles Police Department’s Commercial Crimes Division Detectives are asking for the publics’ help in providing any information that would lead to the arrest of two male Hispanics responsible for a one million dollar cargo theft. (Source vvng.com)

Two New York men busted for $500,000 credit card fraud - buying prepaid debit cards in drug stores in New Jersey  Federal prosecutors in New Jersey say two New York men face credit card fraud conspiracy charges after they were arrested at an Atlantic City casino. Forty-six-year-old Tracey Coleman of Rosedale and 23-year-old Wanell Wallace of Fresh Meadow allegedly tried to fraudulently charge more than $500,000 using stolen account numbers. They were arrested early Saturday, but the charges against them were not made public until Monday. Prosecutors say Coleman and Wallace used fraudulently obtained credit card account numbers to buy prepaid debit cards in drug stores throughout the New Jersey area. Those prepaid debit cards were used to deposit funds into other accounts, which the men accessed for their personal use. They face 10 years in prison. (Source wsj.com)

Gang of robbers shot it out with police in one of the world's largest Malls (4.38 million square feet) Sunday in Manila  A band of robbers armed with guns and hammers shot it out with Philippine police inside one of the world’s largest shopping malls Sunday, sending Manila shoppers scrambling for safety, police and witnesses said. Waves of police commandos in bullet-proof vests and helmets and armed with assault rifles stormed the SM Mall of Asia (MOA), an AFP photographer saw, after the gang entered a jeweler’s shop inside. witnesses saw five to six men storm the mall, ransacking a jewelry store on the ground floor by destroying a display case with hammers around 7:30 p.m. Hundreds of frightened shoppers, waiters and store clerks ran for dear life amid gunfire toward the exits of the nearly four-hectare (10-acre) complex of department stores, boutiques, restaurants and entertainment establishments by Manila Bay. "Mall [security personnel] are working with the PNP on the situation and no one was hurt from the incident.” One of the robbers fired shots to trigger a commotion among the people and distract the security guards, Villacorte said. “Four of our policewomen were able to give chase to the robbers,” in the course of which one suspect was arrested. The rest of the gang apparently escaped. (Source inquirer.net)

Clinton Township, MI Police Looking for Suspects in Fatal Armed Robbery

Kay Jewelers in The Esplanade Mall, Kenner LA victim of a $1499 diamond switch 

Chesterfield, Va., Walmart evacuated for second time in 3 days after another bomb threat

Heber, Utah, Wal-Mart evacuated after inmate on work-release crew leaves device (pipe with electrical wires) at store, police say

Woman caught shoplifting at J.C. Penney in Haywood Mall, Greenville, S.C., tries to stab LP officer with knife

Two men each sentenced to 21 years for armed robbery of Sprint store last August

Shoplifter pulls a knife on a TJX Loss Prevention Agent in Bristol, VA

CVS Employee Stabbed by Robbery Suspect in Lincoln, Nebraska; suspect arrested 

Aurora, IL serial smash-and-grab burglar faces long sentence

Duo's robbery spree: A BB gun, a hammer and a fake bomb 

Alaska man sentenced to 9 years in prison for shooting manager over unleashed service dog inside Walmart 

$1500 Theft Charge Against Mall kiosk Employee Accused of Taking Money in College Station, TX 

Smash-and-grab heist nets thief $41,678 worth of jewelry from Pa. Kmart

Man pretends to be reporter to get Oxycodone pills at Little Egg Harbor Walgreen store 

Serial armed robber on the loose in Central Ohio – has hit a dozen pharmacies in past 7 months

Two men arrested for robbing store with toy gun – 5-yr-old boy found sleeping in backseat of getaway car

Two Baltimore men indicted in March 12 armed robbery at jewelry store

Robberies and Burglaries

 

ORC News
 
Polk County, Fla., Sheriff’s Office Organized Retail Crime Detectives Arrest Lake Wales Career Thief  Polk County Sheriff’s Office Organized Retail Crime detectives arrested 31-year-old Henry Earl Sanders, 203 West Orange Avenue, Lake Wales, on Wednesday, March 26, 2014, and charged him with Felony Retail Theft. After Sanders initial arrest however, other area law enforcement agencies linked Sanders to several cases and added 2 counts of Credit Card Fraud, and Burglary of Conveyance to his charges. On Wednesday, March 26, 2014, Sanders walked into the Wal-Mart Winter Haven, selected a blue Florida Gators tote bag, and then proceeded to the baby section of the store where he loaded the bag with infant clothing concealing it in the tote bag. All of this was caught on surveillance cameras. (Source polksheriff.org)

St. Paul's Police Department's ORC Unit 'outside-the-box' charges nail organized retail thieves - Burglary charges  A man walks into a St. Paul grocery store, loads up a cart with four large jugs of laundry detergent and wheels them out the front door without paying. The process takes less than four minutes. Police say the 50-year-old caught on store surveillance cameras in the Midway area is a professional shoplifter who has an "almost daily routine of boosting merchandise from retail stores," according to a police report. While police had several theft cases against Kelvin Dewayne Byrd of St. Paul, the value of the items stolen wasn't enough to charge him with felony theft under state law (it has to be at least $1,000), said Sgt. Charlie Anderson, who heads the St. Paul Police Department's Organized Retail Crime Unit, which he started last year. Instead, Anderson worked with prosecutors to take a different tack, charging Byrd with felony burglary. When Byrd was caught shoplifting, stores had issued "trespass" notices to him, which banned him from returning for one year. But because police say Byrd kept going back in the buildings without permission and stealing items, he was charged with two counts of third-degree burglary. The maximum sentence for that offense is five years in prison and a $10,000 fine. The charge is "outside the box ... it's creative," Anderson said, but, he added, Byrd's offenses fit the burglary statute. It's a strategy of the ORC unit to be tough on "egregious, brazen, repeat" offenders who are tied to organized retail theft, Anderson said. (Source twincities.com)

Gibsonville, N.C., store owner accused of shoplifting, reselling merchandise  The owner of a Gibsonville store was arrested on suspicion of shoplifting and reselling items from another store. Police allege Smith took merchandise from a Hobby Lobby in Greensboro and resold them at her store, as well as on eBay. (Source wxii12.com)

Woman with 11 larceny convictions arrested again in Hickory, NC  A Newton woman with 11 prior larceny convictions was arrested again for larceny Thursday afternoon, police said. Officers were called by loss prevention staff at Sears in Valley Hills Mall in reference to a woman in their custody who shop lifted, Aleia Burwell with the Hickory Police Department said. Loss prevention told police the woman was seen concealing fragrances valued at $104 in her purse. the suspect’s previous larceny convictions include nine in Catawba County, one in Iredell County and one in Lincoln County. (Source hickoryrecord.com)

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Vendor Spotlight
 

see what's in store

Look to Sony video for quality, insight and context.

Today, everything from loss prevention to business intelligence depends on video. So it's never been more important to start with the best possible picture. Which is where Sony comes in. We're the imaging experts in everything from cinematography to mobile phones. So we can sharpen your image at the cash register. Enable you to see entrances and parking lots in low light or severe backlight. And identify warehouse traffic details as never before. But, beyond loss prevention, Sony video for retail can help you analyze and improve your business in the process. To see everything you can, first you've got to see your Sony representative.
 

See Sony cameras in action at sony.com/security/retail

 

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Adam Alford was promoted to Senior Director of Asset Protection for GameStop.
Brian Keenan was named District Loss Prevention Manager for HomeGoods/TJX Companies.
Michael Toledo, CFI was promoted to Senior Manager, Loss Prevention & Safety for American Eagle Outfitters, Inc.

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Your Career
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5 Reasons You Need to Instill Values in Your Organization  A good company culture makes for happier employees and more engaged employees. If you can go beyond that, and instill values that everyone works by, then you go from a good company to revolutionary. Here are some good reasons why everyone should create a company culture that lives its values. (Game changing)

It's Not Enough to Manage, You Must Inspire  The ability to motivate and inspire others is a must have quality when considering leaders. It's already sort of a given that the leader can perform well, but can they get people to do what is needed?Without inspiration, how will your employees get through tough challenges? (Inspiration can foster motivation)

Last week's most popular articles--

5 Habits that Lead to Failure (and What to Do Instead)  If you keep performing these bad habits, you could be ruining your career and the company! Success is equal parts doing what works and staying away from what doesn't work. Stay away from these five mental habits, and see how successful you can be! (Nobody's a mind reader)

The Five Characteristics of an A Player
Who wouldn't want a top player on their working team? They have talent, skills and the drive to make a company successful, but you can't tell who is an A player in a huge crowd. How will you know when this person walks through your door? Look for these five characteristics. (They have no excuses)

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Tip of the Day
Sponsored by Vector Security

The retail environment changes every day and staying in tune with the ebb and flow of it is critical, especially if you want to reach the top of your field. There's much to say about job security and staying with one company most of your career. But if you truly want to reach the top, you've got to be willing to sacrifice, move, and take a risk. And as you can see from the list above retail is a volatile space, but if you keep your eyes open, listen to what's going on around you, take advantage of certain situations, and time it right you'll be able to navigate your way.

Just a Thought,
Gus Downing

Gus Downing

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