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The D&D Daily Mobile Edition

April 11, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Shift to chip and PIN doesn't solve all for retail  Protecting and securing payment systems and consumer data is a never-ending task for all parties in a payment network, and it's also a moving target. Credit card companies, banks, payment processors, regulators and retailers all have the same fear: as soon as a new system or firewall is put in place, hackers have already figured out how to bypass it. "The fundamental problem is you can't provide 100 percent protection for a house of straw," explained Mallory Duncan, SVP and general counsel for the NRF. The migration certainly isn't cheap. Duncan estimated it will cost retailers between $26 billion and $30 billion to upgrade systems to be EMV-compliant, while it will only cost about $2 billion to replace consumers' cards with the new chip-embedded technology. (Source cbnc.com)

Man pleads guilty for involvement in $50M scam - 54 other members charged - majority of group still at large  A Georgia man has plead guilty to racketeering charges related to a credit card trafficking ruse that resulted in more than $50 million being lost globally. Cameron Harrison, also known by his online alias “Kilobit,” faces years behind bars and a hefty fine for his part in the Carder.su criminal collective since June 2008, according to court documents. Harrison is accused of taking part in stealing credit card information, as well as other personal identifying information. The ID stealing group was broken up by authorities in 2012, and 55 of its members have been charged for similar crimes. Of those charged, eight have pleaded guilty, while a majority of the group remains at large. (Source scmagazine.com)

Customer data leaked at Korea's number one credit card company; 35,000 Victims  Yet another huge credit card company in Korea has failed to protect its clients' personal information. Financial sources said Friday that the data of some 35-thousand Shinhan Card customers has been leaked. The information includes credit card numbers and passwords for the company's loyalty cards. Since many clients use the same passwords for their credit and loyalty cards, this data breach has the potential to lead to mass credit card fraud. This latest discovery came as the Financial Supervisory Service looked into a recent case in which a gang hacked into a private server and stole information on credit card transactions. Aside from Shinhan, the personal information of more than 60-thousand customers from companies like Kookmin Card and Nonghyup Card was compromised. (Source arirang.co.kr)

Federal-contractor Deltek suffers cyber attack putting 80,000 employees of vendors at risk  About 80,000 employees of federal contractors are at risk of identity theft after a hacker broke into business research firm Deltek's GovWin IQ system. In an email to vendors, Mike Corkery, the company's president and CEO, said it discovered on March 13 it had suffered a cyber attack where a hacker obtained GovWin IQ usernames and passwords, and potentially the credit card information of about 25,000 of those 80,000 customers. (Source federalnewsradio.com)

Slideshow: Top 10 retailers likely to close stores in 2014 
A number of retailers have gone by the wayside — many of them leaving sizable chunks of vacant real estate in their wake. Still other retail companies have announced plans to either close underperforming stores or certain store sites that are deemed “non-strategic.” Online resource National Real Estate Investor has compiled a list of what it describes as the 10 retailers “most likely to leave your center in 2014.” The companies likely to close stores were identified based on lagging same-store sales results, debt loads and other factors. View their Top 10 list here. (Source bizjournals.com)

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e-commerce
Sponsored by The Zellman Group

The ‘Heartbleed’ bug has e-retailers’ hearts racing with anxiety  Called the Heartbleed Bug, the flaw could help hackers steal information, including credit card numbers and personal consumer data, from inside servers that operate e-commerce sites. The attack also could enable criminals to create web sites that mimic real ones and which could be used to steal from consumers, experts say. While those experts could point to no such thefts yesterday, they say retailers will have to keep their eyes open to make sure they are not victims of fraud. The flaw involves free web encryption tools called OpenSSL. Consumers can typically identify sites that use OpenSSL by a digital representation of a padlock or the HTTPS at the beginning of a web address. “The error allows an attacker to trick the server into disclosing a substantial chunk of memory, repeatedly,” says Ivan Ristic, director of application security research for web security firm Qualys. E-commerce operators and companies involved in online marketing yesterday acknowledged the seriousness of the Heartbleed bug and reassured consumers that security was under control. Online marketplace Etsy Inc. No. 38 in the Internet Retailer 2013 Top 500 Guide, says it learned about the bug Monday. Such e-commerce giants as Amazon.com Inc., Google Inc. and eBay Inc. reportedly were found safe from the bug after testing, but none of the companies provided immediate comment. (Source internetretailer.com)

Hackers Lurking in Vents and Soda Machines - They could be attacking from anywhere  Companies have always needed to be diligent in keeping ahead of hackers — email and leaky employee devices are an old problem — but the situation has grown increasingly complex and urgent as countless third parties are granted remote access to corporate systems. This access comes through software controlling all kinds of services a company needs: heating, ventilation and air-conditioning; billing, expense and human-resources management systems; graphics and data analytics functions; health insurance providers; and even vending machines. Ideally, security experts say, corporations should set up their networks so that access to sensitive data is sealed off from third-party systems and remotely monitored with advanced passwords and technology that can identify anomalous traffic — like someone with access to an air-conditioning monitoring system trying to get into an employee database. Even though Target used security technology supplied by FireEye, a company that sounds alerts when it identifies such anomalous activity, its I.T. personnel ignored the red flags, according to several people who confirmed the findings of a Bloomberg Businessweek investigation last month but could not speak publicly about Target’s continuing internal investigation. (Source nytimes.com)

Bitcoin-Based ATM And Paycards Now Available


11% of UK retailers expect 50% of online sales to be made via mobile by end of year

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet

 

Canadian Push
Sponsored by Vector Security
Canadian privacy bill floats $100k fine PER BREACH VICTIM not notified  On Tuesday, the Digital Privacy Act was introduced in Canada's Parliament, proposing stiff penalties for organizations that fail to adequately respond to breaches. Of note, the bill seeks to impose a hefty fine on businesses – up to $100,000 per every data breach victim not notified of the incident. The legislation, which would update Canada's Personal Information Protection and Electronic Documents Act (PIPEDA), would also penalize companies that “deliberately” fail to report a data breach to the Privacy Commissioner of Canada. (Source scmagazine.com)

U.S. retailers find tough going in Canada - Target lost nearly a Billion dollars there last year  For years, Canadians would cross the border to the U.S. to shop at Target. Exporting its cheap chic there seemed like a no-brainer. But a year after opening more than 100 stores north of the border, Target has found business isn’t so easy. Shelves are hard to keep stocked. Shoppers complain the prices are higher than at U.S. stores. Sales have been weak, and the retailer lost nearly a billion dollars in Canada for the year. Target’s difficulties expose the challenges of doing business in Canada that have bedeviled other retailers. Some of the problems are old, like the web of costly regulations. But there are new ones, such as a slower Canadian economy and increasing competition that’s making the retail landscape look a lot like the United States’. (Source buffalonews.com)

Toronto mall’s security upgrades ‘raise the bar’ - Now safest in Canada, tops in North America, expert says 

Shoppers Drug Mart, Lululemon Athletica and Canadian Tire rank in Top 50 of most-valuable retail brands

Edmonton man gets 7 years for robbing a jewelry store of $245,000 on Rolex watches at knifepoint  An Edmonton man who robbed a downtown jewelry store at knifepoint – stealing 32 Rolex watches worth $245,000 – was handed a seven-year prison term on Tuesday. William Israel Ramos, 23, earlier pleaded guilty in Court of Queen’s Bench to charges of robbery, unlawful confinement and possession of a stolen vehicle. Ramos apologized in court for letting his parents down after noting in a prepared statement that they had emigrated to Canada to provide their family with a better life and had raised him to know right from wrong. (Source edmontonsun.com)

Windsor police looking for Hotel smash and grab thieves 

Lake Cowichan Mounties find Robbery suspect in lake 

Retail Fast Facts: March 2014

Highlights:
• Total monthly retail sales changed by 3.8 per cent over the comparable month last year.
• Total sales excluding food, automotive and gasoline changed by 3.0 per cent over the comparable month last year. Read more (Source retailcouncil.org)

 

Big Data
Sponsored by Verint
You've heard of credit scores. But how about Fraud Scores?  Imagine being able to stop a fraudster from acquiring a cell phone in your store under a false identity. Now retailers can run a Fraud Score and predict if a customer is not who they claim to be or if they may be up to some mischief. Unless you live off the grid, big data companies know all about you. They constantly collect information about the things you buy and the websites you visit, plus thousands of other bits of personal information gathered from public records and your social media activity. You can get your credit score, but there is no way to find out about these other consumer scores that have an ever-increasing impact on your life. Credit bureaus are highly regulated. Big data is not. (Source cnbc.com)

Proposed California Law Would Make Retailers Financially Responsible for Data Breaches  When it comes to massive data breaches - such as the ones at Target and Neiman Marcus - in which millions of customers’ credit and debit card numbers were breached, who should foot the bill? Banks and credit card companies have been stuck paying for the damages stemming from hacking of payment data in such crimes, but a new law introduced in California last week seeks to pass the buck right on back to the retailers. The bill, AB 1710, would make retailers responsible for notifying customers of any data breach incident, as well as hold them liable for reimbursing customers' financial damages. The bill would require the business that maintains the data to notify affected people within 15 days of the breach. (Source sophos.com)

Privacy-Sensitive Germans Not Biting Into Apple’s iBeacon 
New in-store tracking technologies that give retailers data about the shopping habits of their customers is slowly making its way into brick-and-mortar stores around the world. But the uptake is happening slowly in Germany, a country especially sensitive to privacy rights. Since revelations that the U.S. spied on German Chancellor Angela Merkel’s cell phone, Germans are increasingly looking more to European vendors than Americans for their server needs. (Source wsj.com)

Report: Data breaches up 62 percent in 2013

Big Brown Finds Big Money from Big Data


U.S. urges businesses to share cyber threat data with each other 

 

Retail Crime News
Sponsored by NuTech National

Man convicted in the 2012 Visalia Mall shooting gets 406 years to life in prison  The man convicted of opening fire in 2012 inside the Visalia Mall, Visalia, CA during an attempt to kill a rival gang member was sentenced Thursday to a 406-year-to-life prison sentence. And the man convicted of being Adrian Esquer’s accomplice in the shooting that wounded two people, Anthony Hansen, was sentenced to 346 years to life. “I have no problem with these sentences, where men, women and children were present, and you shoot indiscriminately,” Assistant District Attorney Anthony Fultz said after Tulare County Superior Court Judge Joseph Kalashian handed down the maximum sentences for the 20-year-old Visalia men. (Source visaliatimesdelta.com)

Man ties up jewelry store owner in Stafford County robbery  An armed man got away with money and jewelry after robbing and tying up the owner of a Stafford County jewelry store Thursday morning, police said. Sheriff’s spokesman Bill Kennedy said the heist took place about 9:53 a.m. at Darian Jewelers in North Stafford. The owner reported that he had just opened the store when a man came in behind him and threatened him with a handgun. Kennedy said the robber forced the owner to open a safe, then tied his hands and locked him in a bathroom. (Source fredericksburg.com)

Hialeah, FL Teen Charged In Smash & Grab, Police Investigate Connection To Others  Hialeah Police believe they may have caught a break in their investigation into a string of smash and grab burglaries. On Wednesday they arrested 16-year-old Cristian Gonzalez and charged him with one burglary. Now they are trying to determine if he was responsible for five others. “They’re the same M.O. we know the same people did it but five of those cases remain open and we want to close all six of these cases,” said Hialeah Police spokesman Carl Zogby. (Source cbslocal.com)

Johannesburg, SA Armored Car hit outside grocery store, G4S guard wounded

Elkhart, IN man gets 120 yrs. for part in deadly convenience store shooting

Warren Co., KY Woman Charged With Arson of Dollar General store

5 suspects linked to Norton Shores, MI Sprint store burglary also connected to Ottawa County crimes 

Red Wing Shoe employee arrested for $13,000 theft in Shreveport, LA

Man arrested in Smash and Grab spree that covered three states
 

Robberies and Burglaries

AT&T – Bristol, VT – Armed Robbery – suspect arrested
Bi- Mart – Eugene, OR – Robbery – suspect arrested
Circle K – Yuma, AZ – Armed Robbery - suspect arrested
Circle K – Douglas Co., GA – Robbery – suspect back in court
CVS – Portland, OR – Robbery
CVS – Birmingham, AL – Armed Robbery – police release video
Dollar General – Marion Co. MN – Armed Robbery – teens arrested
Fast Lane – Maytown, KY - Armed Robbery – suspect arrested
Gametraders -Bay City, MI – Armed Robbery – suspect to undergo psych evaluation
Giant Foods – District Heights, MD – Bank Robbery
Gossett's Jewelry – Carlsbad, CA – Burglary
Jackson’s Food - Pocatello, ID – Armed Robbery
Kelly Express – Topeka, KS – Aggr. Burglary – Police release new photo
Kroger Pharmacy – Westerville, OH – Robbery – suspect arrested
Kum & Go – Springfield, MO – Armed Robbery
Lolita’s Market – Boulder, CO – Armed Robbery – suspect arrested
Metro PCS – Colusa, CA- Armed Robbery – suspect arrested
Mike’s Corner – Midland Co.,MI - Armed Robbery - suspects appear in court today
Rockbrook Camera – Omaha, NE – Burglary - $25,000 of camera equipment stolen
Speedway – Mayfield Hts, OH – Armed Robbery – suspect arrested
State Line Cigarette Outlet – Newark, DE – Armed Robbery – suspect charged
Subway – Charleston, SC – Robbery – suspect arrested
Walgreens – Adrian, OH – Armed Robbery

 

ORC News
 

41 people, including 12-year-old, Arrested in Retail Theft Ring Bust in Florida  Polk County Sheriff's Office deputies said they arrested 41 people within two days during an investigation into an organized retail theft ring. Sheriff Grady Judd held a news conference Friday to announce the arrests. Judd said the thieves were hitting popular stores and supermarkets. Judd said the people arrested were behind many kinds of other crime in the community. The youngest person arrested was 12 years old, and the oldest was 67 years old. Deputies said the thieves were hitting stores like TJ Maxx, Marshalls, Walmart and Publix. Judd said that of those arrested, 18 were receiving some sort of government aid or public assistance, and that 32 of them have criminal histories. (Source wftv.com)

Dallas jewelry store employee arrested for theft, re-selling items  A Dallas jewelry store employee originally arrested for stealing one item had actually been taking items for months according to Dallas police. The employee, Mary Gregory, had been stealing items from Kendra Scott Jewelry in Uptown since January and selling them on Craigslist. Police believe more than $18,000 worth of merchandise had been stolen since the start of the year. Gregory had a theft charge filed against her on Tuesday, but when police began to investigate on Wednesday they discovered more thefts. Store management provided police with surveillance video that showed one of the thefts. Police were then able to obtain a warrant and found additional merchandise in the woman's purse. Gregory confessed to stealing from the store since January and another warrant found more items in her apartment. The suspect has been jailed on multiple theft charges. (Source myfoxdfw.com)

Six Arrested In Attempted Flash Mob Burglary Of Upscale Ventura County Store  Six Bay Area women were arrested, after law enforcement officers say they tried a flash mob style burglary of an upscale women’s clothing store in Ventura County. Ventura County Sheriff’s deputies say that just after 3:30 yesterday, a group of six to eight women walked into the Tory Burch store in the Camarillo Premium Outlets. Investigators say the women had large bags, which they began filling with merchandise. About 30 seconds later, when one of the store employees contacted one of the women, the group fled from the store, and ran to a van. The employees called 911. Responding deputies quickly reviewed surveillance video, and identified the van, and other officers stopped it on the 101 Freeway in Westlake Village. The six women, who ranged in age from 21 to 39, were arrested for burglary, conspiracy, possession of stolen property, and possession of burglary tools. (Source kclu.org)

Double Bust at Moraga, CA HomeGoods Store Tuesday  Two women were arrested Tuesday -- as their small children sat nearby -- after allegedly "returning" items stolen from the Moraga HomeGoods store, according to police. The suspects reportedly entered and took items from inside the store, then took the pilfered goods to a clerk to claim as returns -- receiving cards for store credit, police said. Johnson is allegedly a repeat offender and familiar to the Moraga store employees, who documented her previous offenses on March 31, April 3 and April 5, and reported them to law enforcement on April 7, police said. (Source patch.com)

Pharmacy armed robbery suspects arrested with $250K of drugs in Conyers, GA

Lancaster Co., PA Convenience Store clerk and friends wanted in $14K theft

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

Vendor Spotlight
 

Is Your Back Door Protected?

Detex introduces a maximum security, multi-point lock so big and strong that it stands up to assault by the bad guys and reduces employee and customer theft.

The ECL-230X-TDB is a heavy-duty, easy to install three-bolt multipoint lock whose construction takes panic hardware to a whole new level of toughness and eases your back-door security worries. It is designed with a larger deadbolt that goes deeper into the frame than other locks in the category. Connecting rods are solid steel, rather than the less reliable hollow rod/cable construction. Life safety and code compliant, the new Detex ECL-230X-TDB serves as both panic hardware and a maximum-strength locking device.

The ECL-230X-TDB includes a photo-luminescent sign available in more than 10 color/language combinations, 100 decibel alarm and 3 locking points per door.

● Top Deadbolt – approximately 1” wide by ½” thick deadbolt, the top bolt provides additional stability to the top corner of the door.
● Side Deadbolt – 2 ¼” tall by ½” thick deadbolt with a 1” throw allows for ¾” penetration into strike (Detex recommends Flush installation for maximum security). With 1.6875 square inches of bolt engagement, the side deadbolt provides superior defense against pulling and prying on the side of the door.
● Bottom bolt – 5/8” HEX bolt with ¾” throw, engages the floor with 5/8” penetration provides better attack resistance and superior defense against the “peeling up” of the bottom of the door.

Together, the 3 bolts withstand 16,000 lbs. of pull force.

Add suffix DX3 (ECL-230X-TDB-DX3) for 6 locking points for even stronger security. Single- and double-bolt and weatherized models are also available. Optional accessories include hinge side locking bolts and inside pull handle.

Combining the ECL-230X-TDB with Detex’s DX Bolts provides an additional line of defense against break-ins via additional locking points. Even if the exterior door hinges are compromised the DX bolts keep the door locked and secure. These passive deadbolts are easy to install and offer another layer of attack resistance.

Other 230X models include ECL-230X (Dead Bolt Only), ECL-230X-W (Weatherized Dead Bolt), ECL-230X-TB (Top and Bottom Bolt), ECL-230X-W-TB (Weatherized Top and Bottom Bolt), ECL-230X-TD (Top and Dead Bolt), ECL-230X-W-TD (Weatherized Top and Dead Bolt), and ECL-230X-W-TDB (Weatherized Top Bolt, Dead Bolt and Bottom Bolt).

Almost all hardware and accessories can be customized with different finishes, colors, sizes, and more. Ask us how this new generation of life safety and security hardware can make a powerful difference at your back door.

Visit Detex’s website at www.detex.com or call us at (800) 729-3839.

 

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Sponsor this section of the Daily
Dealing With Feelings: How to Be an Emotionally-Aware Leader  Understanding what drives your employees, what makes them feel engaged, is critical to the success of any organization. Without being emotionally aware, you won't get the results you want to see. Emotion is not a handicap in the workplace, instead it can add fuel. Use these tips to help you get in touch with your emotions. (4 skill sets to learn)

16 Leadership Quotes to Inspire You to Greatness  Inspiring others is an important quality of a leader, but sometimes leaders need some inspiration too. It's good when other leaders share a thing or two on what they know. Read some of these quotes on how to be a better leader, and maybe they will help you lead your employees on the path to greatness. (Admit when you're wrong)

Gratitude is the New Willpower
Patience makes the business world go 'round, but it is very hard to muster sometimes. It requires saying no to some things you want, in order to acquire or prepare for things you need. When our willpower fades, as it so often does, having an alternative source of patience, maybe from something good that happened to you, can make all the difference. (Patience is a virtue)

The Problem with Being Too Nice
Leaders are placed under a lot of pressure to be relatable and liked, but they also have to make the tough decisions, that most people don't want to have to make. Being too nice can result in inefficiency or bad decisions for the organization. Here are some instances where being too nice won't do you any good. (Don't be a doormat)

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Tip of the Day
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"I can't" - From the retailers prospective

What a phrase. We've heard it or said it so many times that we tend to minimize it or even accept it when we hear it or say it. The problem is that it sends such a negative message that it can leave a permanent impression on whomever hears it. To use that phrase in any situation draws boundaries and limitations that restricts growth and in actuality impedes relationships that are so critical to maintain and develop in the retail environment. The phrase itself feeds exclusion and increases the divide that many already complain exist between LP and Operations. And while it may be at times the honest response, one must remember that it's the message it sends they remember in six months and do you want them to really remember you can't?

So the next time you're tempted to say "I can't" think about how you can and find a way to add value in that situation itself. Because quite frankly every time you say that phrase you risk hurting a relationship and diminishing your creditability.

Just a Thought,
Gus Downing

Gus Downing

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