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The D&D Daily Mobile Edition

April 17, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Wal-Mart has 1,000 U.S. stores terminals ready for 'Chip and Pin' - the rest will be ready by years end  Wal-Mart Stores Inc., the world’s largest retailer, says it has 1,000 stores ready for a transformative change in credit card technology and plans to have the rest of their U.S. stores ready by the end of 2014. An official with the National Retail Federation told a congressional panel Wednesday (April 16) that the retail industry is committed to safeguarding and protecting consumer data and information from highly-motivated and sophisticated cybercriminals and hackers. He described NRF’s support for immediately transitioning away from fraud-prone credit cards that utilize 1960s technology (magnetic-stripe and signature) to more advanced and secure cards that incorporate a Personal Identification Number or PIN, or Chip and PIN cards that include a computer microchip. Wal-Mart told The City Wire that it has long supported the adoption of chip and pin technology within the United States. "We are glad to see this discussion taking place. The rest of the world is already using this technology and we think it’s past time for card issuers to adopt this technology in the U.S.,” said Brooke Buchanan, spokeswoman for Wal-Mart Stores Inc. (Source thecitywire.com)

Can RFID save brick-and-mortar retailers after all?  It's been more than a decade since Walmart shook the retail world with a bold plan to plaster its supply chain with RFID. It bombed -- but rising from the ashes is a "barcode on steroids" that might just be a savior for Macy's and other retailers. Based on early pilot success, Macy's began installing RFID infrastructure in all its 850 stores. Starting this month, Connell says, Macy's is expanding substantially the number of vendors it is asking to ship items that are pre-tagged with RFID. By the end of the summer, the retailer plans to have half of all replenishment vendors sending RFID-tagged merchandise. As it turns out, RFID helps retailers much more significantly on the sales floor than in their supply chains. This is especially true with apparel, which thanks to multiple size and color combinations can be troublesome to keep properly stocked. "A warehouse can be Six Sigma, but [inside] a store is No Sigma," Hardgrave quipped. "Stores are chaotic. The processes are not repetitive; customers don't behave the same way every day; the weather isn't the same every day and that impacts buying patterns. So this is where RFID has the most value." (Source cnn.com)

Amazon Acquires Sears - One analyst thought  If you have any doubts, just wake up and think about it. It’s a win-win for both Jeff “Get Big Fast” Bezos and Eddie “Take the Money and Run” Lampert. Amazon gets roughly 2400 US stores (or “buildings”), overnight (1300 Sears, 1100 Kmart). The acquisition becomes Bezos’ answer to omnichannel and the proven revenue synergy of consumers’ ability to shop online and off; the convenience of proximity for pick up and returns; and facilitation of even greater delivery speed. So just as Walmart’s 4500 stores double as distribution centers, so would Amazon’s acquired Sears/Kmart stores. The real estate assets would be the primary reason for Amazon’s interest in acquiring Sears Holdings. However, there are several other valuable assets and operations, which Amazon could enhance and grow. What Eddie gets in such a sale is a potentially profitable exit strategy that many analysts, myself included, believe he is pursuing. In fact, in several of my past articles I have opined that Lampert was, indeed, managing the business into liquidation. And regarding the real estate assets, Lampert has been methodically selling, leasing (partial or in total), and/or closing Sears and Kmart locations. Indeed, he indicated not too long ago that Sears Holdings was considering shuttering its entire fleet of Kmart stores. So if he is seeking an exit, a far less painful and certainly more profitable option would be a sale to Amazon. This could fall nicely into Bezos’ hungry little hands. Amazon might be able to cut an incredible deal, at least far less costly in time and capital, than building or leasing its own nationwide distribution centers/stores. (Source therobinreport.com)

Tyco expands Global Center of Excellence in Birmingham, Ala.  It’s like the United Nations of security at Tyco’s new Global Center of Excellence. Walk through the office and you’ll hear engineers speaking Chinese, Russian and Arabic. Fourteen languages are spoken here. In addition to linguistic fluency, employees must also understand the business culture in their countries of expertise, Daryl Haga, director of Tyco’s GCoE, told Security Systems News. From here, Tyco supports its global enterprise customers in 38 countries around the world. Ninety employees—design engineers, CAD operators, program managers, system engineers and others—are responsible for working with Tyco’s largest customers to develop, maintain and support its customers’ security operations. (Source securitysystemnews.com)

Transportation Intermediaries Association (TIA) Issues Fraud Task Force Report  The Transportation Intermediaries Association said it has taken a step to reduce fraud and theft-related losses for brokers by issuing a task force report. The group’s 2014 Framework to Combat Fraud, rolled out April 12 at the annual meeting here, is designed to counter five situations by using best practices identified by other members. They are cargo theft, financial theft, identity theft, fraud prevention and post-fraud follow-up action. This framework presents a compilation of best practices that TIA members and Fraud Task Force participants have used to protect themselves,” said Geoff Turner, who is TIA’s board chairman and CEO of Choptank Transport. “This resource complements TIA Watchdog, a Web-based forum for the industry to report information on problems to each other,” Turner said. (Source ttnews.com)

Jones Group split into four independent retailers by new owners - LP Jobs? Or LP consulting services needed? Solution providers opportunities as well  Sycamore Partners announced that it has reorganized the remaining businesses of The Jones Group into four independent operating companies: the Nine West Group, a jeanswear company (which will be named later), Jones New York, and the Kasper Group. Each will operate as an independent company led by its own management team. (Source chainstoreage.com)

Barnes & Noble Chairman & majority owner reduces stake further - sold 3.7M shares yesterday after selling 2M in Dec.

Smarter Cards - EMV (Europe Master Card & Visa) Coming soon to your stores  An info graphic (Source businessweek.com)

Quarterly Same Store Sales Results

Sherwin Williams Q1 paint stores up 7.9% with net sales up 16.4%
Canada's Metro grocery stores Q2 up 1% with sales up 1.7%

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"The New Customer
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New Episode

Ted Potrikus, Exec. VP and Director of Gov’t Relations for the Retail Council of New York State, discusses the new Customer Bill of Rights, which was drafted and implemented last holiday season after high-profile accusations of racial profiling in NYC stores shook the retail industry, causing every LP program in the country to review its practices and policies. Ted talks about the NYPD’s stop-and-frisk policy, his interaction with civil rights leaders and how the LP industry can move forward in a positive way from this hot-button issue. Watch the interview here.

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e-commerce
Sponsored by The Zellman Group

8% Of Employee-Committed Frauds Involve Data Theft  While most companies work hard to ensure data protection and prevent fraud, they often overlook the fact that many data breaches and thefts are the result of employee actions. The need to give inside and outside threats equal attention has been highlighted by a new report. According to its Employee Fraudscape publication, the number of frauds committed by staff members increased by 18% in 2013, with 8% of all cases involving data theft. As a result of such incidents, sensitive information can end up in the hands of criminal elements, who can then use it to commit various cyber offences such as siphoning off money from bank accounts. (Source misco.co.uk)

Hackonomics: Street prices for black market bugs  The Juniper Networks blog post Hackonomics: A First-of-Its-Kind Economic Analysis of the Cyber Black Markets concluded that the "Cyber Black Market" is more profitable than — and poised to surpass in profitability — the global illegal drug trade. As a RAND report explained, the black market for cybercrime, once a "varied landscape of discrete, ad hoc networks of individuals motivated by ego and notoriety, has now become a burgeoning powerhouse of highly organized groups, often connected with traditional crime groups (e.g., drug cartels, mafias, terrorist cells) and nation-states." The cost for data records or credit cards varies, naturally — certain cards and accounts are more expensive than others. The experts at RAND stated, "Prices for credit card data may start at $20–$45/record if supply is limited or the cards are freshly acquired, or $10–$12 if there is an influx." (Source zdnet.com)

Pier 1 makes web a higher priority; web sales represented 4% of total sales for 2014 fiscal year

Cyber Security: 60% of Techies Don't Tell Bosses About Breaches Unless It's 'Serious'

"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

 

Big Data
Sponsored by Verint
Verint Retail Solutions Shine at Retail Asset Protection Conference  Last week, at RILA's Asset Protection Conference, Verint showcased their industry-leading loss prevention, retail analytics and situational awareness solutions, all of which help retailers to better understand customer behavior, reduce fraud and loss, and improve store operations. Verint is dedicated to helping retailers reduce theft and fraud, while also giving them the opportunity to leverage their surveillance technology into actionable business intelligence. Click here to see the two leading technologies Verint showcased at the RILA conference last week. (Source verint.com)

Google Using Big Data to Match Web Users to Their Purchases in Stores  Retailers have long struggled to determine whether online ads fuel sales in their bricks-and-mortar stores. Now, Google is testing a way to solve that puzzle. A pilot program begun by the Internet company is helping about six advertisers match the anonymous tracking cookies on users' computers to in-store sales information collected by Big Data companies. One participant in the program is the arts-and-crafts chain Michaels Stores Inc. Other retailers are unknown at this time. (Source wsj.com)

5 Reasons Why Too Much Data Can Be Risky
Chasing the promises of Big Data, and enabled by cheap storage, CIOs have gotten in the habit of holding onto consumer data for unknown future purposes, said Gerald Ferguson, a data privacy attorney at the law firm Baker & Hostetler LLP. That customer data may be laying dormant across dozens of systems, like payment and marketing platforms. To lower Big Data risks, Mr. Ferguson says, companies should maintain an inventory of what personal data is stored and why and if there isn’t a compelling reason to hold onto the information it should be deleted. “Data that you’re storing and not making money off is a liability,” Mr. Ferguson said. According to the article, 5 reasons why too much data can be risky include: 1. Europeans Want You To Forget Them. 2. Hackers Can Find Data You Shouldn't Have. 3. Customers Can Discover You Know More Than You Should. 4. Too Many Alerts Without Being Alert. 5. Indiscriminate Collection Can Lead To Breaking The Rules. (Source wsj.com)

 

Retail Crime News
Sponsored by NuTech National

Portland shootout with retail burglars at 3 a.m. kills K-9, Injures Officer: 3 Suspects in custody  Portland Police Bureau K-9 German Shepherd was shot and killed early Wednesday, and his handler was wounded, during the investigation of a burglary at a retail store in Southwest Portland, Ore. Police were investigating a burglary at the Blumenthal Uniform & Equipment store on Southwest Barbur Boulevard in Southwest Portland. Officers spotted three intruders exiting the store and saw them get into a white Suburban. The three suspects ran out of the SUV, and one of the officers sent his police dog after them, Portland Police Chief Mike Reese said. Take that suspect!” the officer instructed the dog, and then a shootout began, according to Reese. The suspected shooter, whose name has not yet been released, was carrying a weapon similar to an AR-15 rifle, and fled on foot after the shots were fired. The weapon was later recovered on the scene. (Source webpronews.com)

Man Sentenced To Life In Prison In Phone Store Armed Robberies  A 29-year-old Detroit man convicted of using a gun to rob phone stores has been given an extraordinary sentence of 116 years in federal prison. He was accused of robbing phone stores in Detroit, Highland Park, Eastpointe, and Warren, Ohio between December 13, 2010, and December 1, 2012. (Source cbslocal.com)

Police investigate shooting outside Fayetteville Food Lion store  A person was shot Wednesday afternoon outside a Food Lion store in Fayetteville. It happened just before 3:30 p.m. on Rosehill Road. Witnesses said one person was reportedly shot in the shoulder. There's no word on that man's condition. Two suspects were seen fleeing the area on foot, another was reportedly left the area in a vehicle. (Source abclocal.go.com)

Norfolk, VA Police investigating fatal shooting at a Pawn/ Gun shop  Norfolk police spokesman, said it is being investigated as an undetermined death, but appears to have been a suicide. The victim was not an employee of the store. (Source hamptonroads.com)

Woman arrested after robbery, kidnapping at Chesterfield, MO mall  Police have arrested one of two women allegedly involved with the kidnapping of another woman after robbing a store at Chesterfield Mall on March 21. But authorities say another suspect in the case remains at large. Authorities say the suspect who was arrested Wednesday walked into the mall’s H&M store with another woman, 22-year-old Cierra Baker. Police say the two tried leaving the store and were confronted by a security guard. Baker then allegedly reached into her purse, grabbed a can of mace and sprayed the security guard. The suspects fled the store, separating in the parking lot. Authorities say Baker then assaulted a woman sitting in her car and jumped into the passenger seat. She took the woman’s cell phone and forced her to drive to a gas station. Baker then made the woman wait until getting picked up by another vehicle. (Source kmov.com)

Cargo Theft is Back and on the Rise in Europe
Cargo theft worldwide remains a very serious issue. One piece of good news of late had been that theft levels in Europe had been declining in the recent years. But that changed in 2013, according to a new report from Freightwatch, a provider of cargo security services that monitors events worldwide. Thefts in Europe were up more than 60% last year, the company says, and much of that due to the activities of organized cargo theft gangs. In some areas of Europe, violent hijackings are still common, something rarely seen in the US. (Source scdigest.com)

Palm Harbor, FL customer robbed and assaulted as she leaves the Trust Pharmacy  The Pinellas County Sheriff's Office released new surveillance video Wednesday of a brutal robbery outside a Palm Harbor pharmacy. The attack happened April 8 at Trust Pharmacy on US Highway 19. A man can be seen in the video pacing outside the business, waiting for a woman inside to leave. "As she exits the pharmacy, he runs up to her, pushes her to the ground, attempts to choke her, makes some threatening statements towards her, grabs her prescriptions and flees," said Cristen Rensel, of the Sheriff's Office. Just a few days after the robbery, someone tried to rob St. Marks Pharmacy about 8 miles away on Ridgemoor Boulevard in Palm Harbor. (Source myfoxtampabay.com)

Local stores’ remedy to liquor theft in Yakima, WA  The side effect of the two-year-old liquor privatization law continues to plague some businesses. When prices increased, so did the amount of liquor being stolen. Some local stores found a way to beat the problem. Watching for liquor thieves is something Wray's Market Fresh doesn't take lightly. The Owner said he learned plenty of lessons since his store began selling liquor almost two years ago. Denying easy access is the key. Locked cabinets are among the security features that have been installed. Keeping empty liquor boxes on shelves is another method. Paying customers have to ask an employee to get the alcohol. (Source kimatv.com)

Bank Robber, 74, who was homesick for prison to be sentenced in Chicago  74-year-old Walter Unbehaun, an ex-convict from Rock Hill., S.C., allegedly told investigators he intended to get caught so he could live his final years behind bars. On Thursday, April 17, 2014, Unbehaun is scheduled to be sentenced in Chicago. In 50 years, he has spent just six out from behind bars. His case highlights a wider societal dilemma about what to do with an increasingly elderly ex-cons, many of whom spent so much of their lives inside prison that they, like Unbehaun, can't cope with life on the outside. (Source lethbridgeherald.com)

A 'hot' hot tub: thief caught on video stealing tub from Colorado Custom Spas in Denver  The suspect tried to cover the shop's security cameras, but failed. He was taped draining a 500-pound hot tub of water and stealing it from a north Denver store. (Source nydailynews.com)

Two arrested for robbery spree of 5 stores with one CVS in west Harris County, Houston, TX

Weis Market in Lancaster, PA seeking suspect in a $360 baby formula theft

Helzberg Diamonds in the Chandler, AZ Premium Outlets the victim of a $2499 gold chain Grab and Run

Zales Outlet in San Antonio the victim of a $1700 Invicta watch Grab and Run


Gwinnett County, GA More Than Diamonds store window busted from attempted burglary

Two armed men rob Michael's Jewelers in Danbury, CT; bank robbed in area an hour later

Robberies and Burglaries

Check n Go – Fenton, MO – Armed Robbery/ Shooting – suspect shot by Police
Ed’s Pet World – Mitchell, SD – Burglary
Family Dollar – Chattanooga, TN – Armed Robbery
First Choice Grocery – Winslow Twp., NJ – Burglary – couple arrested
Hawkeye – Marion, IA – Armed Robbery
Metro PCS – Perris, CA - Armed Robbery
Payless Shoe – Linden, NJ - Armed Robbery – suspect arrested on DNA evidence
Smoke House – Fort Wayne, IN – Arrest made in the murder of Owner
Tops – Rochester, NY – Robbery – suspect charged in multiple Tops robberies
Walgreens – Litchfield, IL - Armed Robbery – no weapon displayed
Wisconsin Vision – Racine, WI - Robbery

 

ORC News
 


7 big ORC cases in last 3 weeks alone

128 suspects - $30 million and counting


(
And that's not even including the small cases.)

Over the last three weeks, we've seen major organized retail crime groups busted from coast to coast - north to south - into Canada - and throughout North America. The operations have been complex and varied, with suspects ranging from sophisticated criminals to gang bangers, ex-cons and even murderers. Since March 25th, the D&D Daily has reported on seven huge ORC cases, with $30 million in merchandise stolen and 128 suspects involved - 102 of which have already been arrested. Of truly special note, and for the first time in the Daily's history, we've seen a female ORC suspect in San Antonio, Texas, busted twice for ORC in 6 months. (The ring she was involved with appears to be linked to the Mexican cartel.) The startling numbers above don't even factor in the "lesser" ORC operations we report on a daily basis in our e-newsletter. The complexity and frequency of the larger cases, however, truly underscores the importance of our industry in a world where retail crime is only increasing. LP programs throughout the country have been instrumental in the investigative efforts of both law enforcement and other retailers. In recent weeks, ORC investigators from Kroger, Walgreens, CVS and others have helped put an end to criminal networks in Florida, Arizona, California and Ohio - just to name a few. We at the D&D Daily would like to thank all the LP teams involved for their efforts in these multi-month and even year-long investigations. We will continue to provide our readers with exclusive information not found in any other news source. While Retail Loss Prevention continues to do its part, we will continue to do ours. Stay tuned to the D&D Daily, LP's #1 Digital News Source.

Daily update: More on Operation Crossover in Long Beach - 'Insane Crips' gang ORC ring bust - Estimated value $5M according to retail source  Ten search warrants were served in connection with “Operation Crossover” triggered by as many as 100 crimes were allegedly committed by members of the Long Beach gang “Insane Crip Gang.” 10 arrested and 4 still on the loose. (Source ktla.com)

Female ORC suspect hitting Marshall's stores in Oklahoma City with getaway driver  Larceny investigators say on Wednesday, April 9, the woman went to Marshalls located at 1425 W. I-240 around noon. A security guard at the store told police the woman was carrying 10 purses and walked out of the store without paying. The purses have a combined value of $1,300. Then, on Sunday, April 13, around 11:30 a.m. a woman matching the same description entered the Marshalls located at 13730 N. Pennsylvania Avenue. An employee told police the woman lifted six pieces of miscellaneous merchandise totaling $220 and left the store, running to a yellow Jeep, saying "I am coming. I am coming." (Source news9.com)

Minn. city's 'outside-the-box' charges nail organized retail thieves  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 securityinfowatch.com)

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Vendor Spotlight
 

Checkpoint Systems and Mojix Partner to Bring Hands-Free RFID Inventory Management to Retail

Partnership Targets Improved Store Operations and Omni-Channel Program Execution via Hands-Free RFID Solutions

Orlando – April 8, 2014 – Checkpoint Systems, Inc., a leading global supplier of merchandise availability solutions for the retail industry, and Mojix Inc., the leading provider of wide-area, fixed infrastructure, passive-RFID solutions, today announced here at RFID Journal LIVE that they have entered into a global partnership. This relationship will bring end-to-end solutions designed to improve store operations and omni-channel program execution to brick-and-mortar retailers.

The end-to-end solution incorporates the best-of-breed Merchandise Visibility Solution from Checkpoint, together with Mojix’s OmniSenseRF advanced inventory tracking system for retail. The combined solution delivers multiple proven business benefits to retailers for continuous, perpetual inventory, item tracking and location identification.

Checkpoint’s Merchandise Visibility Solution includes:
 

- Industry-leading OATSystems software
- RFID tags
- RFID-trained field engineers to deploy and support the implementation
- RFID-based EAS leveraging the OneTag™ approach and Wirama Radar
- RFID-based point-of-sale solutions
- RFID compliance tools

Mojix’s OmniSenseRF advanced fixed infrastructure solution features a continuous inventory count engine and an item location engine leveraging Mojix’s experience and patented technology for Real Time Location Systems (RTLS) using phased array antennas. OmniSenseRF continuous count engine provides continuous visibility of EPC Gen2 tagged goods throughout the store. The OmniSenseRF location engine offers omni-channel retailers increased visibility for pick and ship from store, to find misplaced items and monitor inventory movement throughout the store.

“We see an increase in the number of apparel retailers interested in the benefits of an always-on, hands-free RFID solution,” said Farrokh Abadi, president and chief operating officer Merchandise Availability Solutions for Checkpoint Systems. “Together with Mojix, Checkpoint is pleased to offer a powerful fixed infrastructure solution proven to significantly boost same store revenue.”

Read more here.

 

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5 Reasons Nice-Guy Leaders Actually Finish First  Television and movies portray the successful and iconic CEO's or leaders as people who use fear to drive performance, but that is what causes their eventual downfall. Don't be the bad guy in your workplace, instead use these five traits to get ahead. (Be encouraging)

Why Leaders Should Network Inside Their Own Companies  The importance of networking can't be stressed enough. This is also true for networking internally: you need to be in the loop on what your team is working on and what their strong skills are. Your job as a leader is to understand the pieces of your department so you can strengthen it. (Just ask)

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