|April 20, 2015|
The LP Industry's #1 News Source - Informing, Educating and Instilling a sense of community
Custer, CFI was named Director of Analytics for Sears Holdings Corporation's
Asset & Profit Protection unit. Johnny is a
career Asset Protection / Loss Prevention leader with more than 20 years
experience - serving as both a solutions provider, and a practician. He is
recognized throughout the industry as a specialist with a "holistic" approach to
asset protection and profit management. Johnny has worked heavily with retail
data for more than a decade; developing and working with algorithms that touch
all areas of the retail business enterprise. He has managed and directed teams
using this holistic approach and had tremendous success in the reduction of
shrink and margin erosion across multiple retail platforms.
Prior to joining SHC, Johnny served as a consultant to several C-suite executive teams, most recently as Vice President, Solutions Research & Marketing at SysRepublic Inc. He has worked in the field for several major retailers including: CVS/Caremark, K-mart/Super-K, and Value City Department Stores. He is widely published and has appeared in a number of mainstream and industry media outlets, including: Loss Prevention Magazine, Security Director News, Fox News, The New York Daily News, and on NBC's "The Today Show" among others. Johnny proudly carries the Certified Forensic Interviewer (CFI), and Loss Prevention Qualified (LPQ) & Certified (LPC) designations. Congratulations Johnny!
Retail Breaches Now Cause 59 Percent Of ID Exposures The year 2014 saw far-reaching vulnerabilities, faster attacks when those security holes became public, files held for ransom and far more malware than ever before - and retailers were among the hardest hit, according to Symantec’s “2015 Internet Security Threat Report.” Retailers represented 11 percent of all breaches Symantec recorded in 2014 - only health care was harder hit, with 37 percent. And when it came to the number of identities exposed in those breaches, retail represented a breathtaking 59 percent, with financial at 23 percent, software vendors at 10 percent, and no other category accounting for more than 3 percent. And the percentage of all breaches in which financial information was exposed doubled from 18 percent in 2013 to 36 percent in 2014. pymnts.com
Forums address alternatives to correctional system for juvenile retail theft in Macon County - Restorative Justice approach in Macon Cty., IL? "It is clear that the No. 1 reason juveniles are being arrested is for retail theft. Jackie Bullard, a member of the Illinois Juvenile Justice Commission, said the further juveniles are pushed into the correctional system, the more likely their recidivism. "I think in some ways, we've lost our way with how we deal with children," she said. "If you're a hammer, everything looks like a nail." The purpose of the forum was to study the juvenile data and demographics while generating possible solutions to the problem. The group made a consensus that in order to prevent juveniles from committing retail theft and other offenses, they need to be engaged with the community. "Once they realize the harm they've done to the community, and once they become connected with the community, they will try to keep it safe," said Jeanelle Norman, president of the Decatur branch of the National Association for the Advancement of Colored People. Possible prevention initiatives discussed included inviting children to community business events hosted by the Greater Decatur Chamber of Commerce and generating funds for an online course educating them on the consequences of shoplifting. herald-review.com
PwC survey says only 12% are true risk management leaders A survey of about 1,200 senior executives and board members by PwC about their organization's risk management practices found only 12% have policies that would mark them as true risk management leaders-this despite the fact 73% of respondents said the risks to their companies are increasing. Rather than being a hindrance to the company's success, of those firms cited as risk management leaders, 55% reported increased profit margins and 41% reported an annual profit margin of more than 10%. "Risks are increasing dramatically and executives are constantly faced with making decisions to protect their businesses, while also trying to improve their financial performance," said Dean Simone, leader of PwC's U.S. risk assurance practice. "By integrating risk management into the business life cycle, these two objectives can easily come together to work in unison. Developing an effective strategy requires investment, but the payoff and competitive advantage can be enormous." wsj.com
Lawsuit Alleges Lumber Liquidators Hired a Mold Lab to Conduct Formaldehyde Testing - Alleges violations of RICO Act The suit alleges that Lumber Liquidators "has hired a mold lab to conduct formaldehyde gas emissions testing and is trying to lull its customers into a false sense of security with the accreditation and proficiency of its chosen lab." The lawsuit seeks an injunction against the defendants from continuing to misrepresent the accreditation of the lab and that the Bio-Badge home test kit is the same as used by "professionals" to test for formaldehyde in indoor. This lawsuit is the first case filed against Lumber Liquidators alleging violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO"). The suit alleges that Lumber Liquidators and the testing companies it has hired engaged in a pattern of racketeering, through mail and wire fraud, to conceal the true concentrations of formaldehyde gas emissions from Lumber Liquidators' laminate flooring by using a laboratory which is only accredited to analyze microorganisms (such as mold) and is not accredited to conduct analysis on chemicals, such as formaldehyde. Plaintiffs hired outside testing firms which showed excessive levels of formaldehyde gas several times above the minimum risk levels published by the EPA. businesswire.com
True Religion sub-contractors billed with $78.5M insurance fraud - not reporting 'hundreds of millions' in payroll California Department of Insurance detectives stated the siblings, whose companies were sub-contractors of Vernon-based True Religion, allegedly conspired using their CPA to cover hundreds of millions in payroll to prevent having to pay workers' compensation insurance rates and underreported $78.5 million in payroll to multiple insurance companies, such as the Condition Compensation Insurance Fund and 2 insurance providers possessed by Berkshire Hathaway. The state's insurance commission, brought by California Insurance Commissioner Dork Johnson, has billed sub-contractors of True Religion Brand Jeans with underreporting greater than $78 million in payroll to insurance companies. list-online.com
Wal-Mart U.S. adds 'department manager' layer at store level - eliminates zone managers - Shuffle hopes to improve sales Wal-Mart Stores Inc said on Friday it would eliminate the position of zone manager in its U.S. stores while adding up to 8,000 new department heads as part of an overhaul of its store operations. There are about five zone managers in each of Wal-Mart's 3,407 supercenters, and those employees will be reassigned to department manager or assistant manager positions. In addition, Wal-Mart, the world's largest retailer, plans to add 7,000 to 8,000 department manager positions. The moves are part of broader strategy by the retailer to rejuvenate sales in the United States by bolstering customer service and addressing other perceived weaknesses such as poorly stocked shelves. Increasing the number of people overseeing just one department, such as electronics or produce, will allow managers to focus more narrowly on engaging with workers and ensuring their department is meeting customer needs, Lundgren said. Zone managers, had been in charge of a handful of departments. channelnewsasia.com
American Apparel Workers Take Complaints to National Labor Relations Board Rumbles that the company's factory workers are close to formally organizing continue with four fresh grievances filed Wednesday with the National Labor Relations Board. The common theme among the complaints allege American Apparel in some way interfered with workers' rights to talk with union organizers. In March, establishing the Coalition of American Apparel Factory Workers United to Save American Apparel sent American Apparel's board of directors a letter outlining reductions in workers' hours and alleged threats by security guards. A company spokesperson said the claims were "without merit." "Workers' rights and respect for our employees are core principles of American Apparel," the spokesperson said. "This is clear from our Code of Business Conduct and Ethics, which reflects our efforts to ensure that American Apparel's workplaces are free from harassment, bullying and intimidation, and which promotes fair treatment of employees and compliance with labor and employment laws. We are dedicated to a culture of free speech and social commentary." wwd.com
Seven Simple Steps to Better Cybersecurity
If companies did seven things they would dramatically cut down on the chances they become victimized, he said. These include being vigilant; making your people the first line of defense; only distributing and keeping information on a "need to know" basis; fixing vulnerabilities promptly; encrypting sensitive data; using two-factor authentication; and paying attention to physical security. "If these were put in place before or during a breach, they might have mitigated the impact of the breach in whole or in part." wsj.com
IBM unveils cyber threat intelligence sharing platform The X-Force Exchange builds on IBM's tremendous scale in security intelligence, integrating its portfolio of deep threat research data and technologies like QRadar, thousands of global clients, and acumen of a worldwide network of security analysts and experts from IBM Managed Security Services. Powered by IBM Cloud this collaborative platform provides access to volumes of actionable IBM and third-party threat data from across the globe, including real-time indicators of live attacks, which can be used to defend against cybercrime. net-security.org
Samsung to launch fingerprint mobile payment service Samsung SDS, the IT service affiliate of Samsung Group, has announced that it is launching a new fingerprint mobile payment service with local payment gateway firms KG Mobilians and KG Inicis within South Korea, with global expansion planned for later. The South Korean tech giant has also signed a memorandum of understanding (MOU) with Korea Information Certificate Authority (KICA), a government-backed certificate licenser, and will later launch other authentication services based on biometrics, the company said. "Going forward, we plan to not only target hardware manufacturers that make smartphones, but to also provide our biometric solutions to online service and security companies," said a Samsung SDS spokesperson. "We plan to offer clients that need biometrics solution with various business models and offer differentiated authentication services." zdnet.com
Saudi Arabia on alert over possible oil or Mall attack Saudi Arabia has put security forces on alert for a possible militant attack on a shopping mall or energy installation, Interior Ministry spokesman Mansour Turki said on Monday. "There was information about a possible act targeting a mall or Aramco installations. We passed this information to the security forces to be on alert," he told Reuters. Turki said he had no further information about the threat. Saudi Arabia, the world's biggest oil exporter and key strategic ally of the United States, has been a target of jihadist militant groups for years, including al Qaeda and Islamic State. reuters.com
Rite Aid post Director, Pharmacy Loss Prevention on LinkedIn two days ago
Insider Threat - Former IT Mgr faces 7 fed. charges for cyber attacking former employer -intercepting emails - sharing conf. info with 3rd party
Speedway LLC to acquire Hess Corp retail network - will have 2,733 c-stores = #2 largest in U.S.
Office Depot, Walmart named top companies for women
Simply Fashion Files for Bankruptcy to Liquidate 250 Store Chain
Frederick's of Hollywood is preparing to file for bankruptcy
Last week's most popular news article --
JC Penney exec inadvertently discloses Q1 same-store sales (up 6%)
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Loss Prevention News Network
As technology has evolved to the point where everyone is interconnected and has the ability to access virtually any information, there's more exposure than ever before to our data, our assets and our organizations. The Insider Threat is often an overlooked and under-valued subject for retailers, however, Charles Delgado, VP Asset Protection, Meijer, tells us why it isn't just a corporate IT problem but something Loss Prevention members in the field should be cognizant of as well. Learn why EMV technology is shifting the threat from outside hackers to low-level employees coming in just to identify retailers' vulnerabilities.
Amber and Joe
catch up with
Bill Titus, Managing Director, PwC. An
agent of change for the LP industry for many years, Bill talks about current
opportunities and challenges for LP executives when it comes to omnichannel, big
data and cybersecurity.
Solution Providers, have a video or commercial you want to publish? Contact us.
"U-Tip - The Two Minute Tip"
Joe Troy, Sr. Loss
Prevention Manager of Operations for J. Crew, offers some advice on social media
in this "U-Tip" video. Social media has become an everyday part of our lives,
both personally and professionally. Whether you're using it for an investigation
or to keep up with friends and colleagues, it can play a critical role in your
future movement throughout the industry. Know the laws that govern social media,
as they are changing everyday. Know if and to what extent you're allowed to use
social media for an investigation. Don't post anything proprietary. Treat your
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One little piece of advice could make all the difference in someone's career.
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New Mexico police department joins nationwide movement, creates 'safe site' for
Craigslist transactions A well-lit parking lot with 24-hour
surveillance. A never-ending stream of police officers coming and going. There's
no better place for a Craigslist transaction than Los Lunas police headquarters.
Los Lunas is joining the wave of police departments and sheriff's offices around
the country that are establishing safe sites for such transactions. They've
popped up everywhere from Connecticut's capital to cities in Florida and
counties in Colorado. foxbusiness.com
Oneida County, N.Y.'s 2013 leadsonline.com law is helping ID ORC
An Oneida County law that went into effect in 2013 requires second-hand dealers
and pawn shops to register the transactions carried out in their stores though
the website leadsonline.com. Obviously the main goal would be able to lower
crime, and I think this shows one thing - that these people who commit multiple
larcenies do it as a business. If you can take down one of these people and get
them off the street, it drastically reduces the number of crimes being carried
In Rome, the law has led to around 40 arrests since its inception for everything from possession of stolen property to burglary to grand larceny, said Rome police Capt. Timothy Bates. "It has certainly helped us solve crimes, not only burglaries, but others as well," Bates said. "Thefts, retail theft and shoplifting as well as organized retail thieves that work in groups. We have been able to certainly help the retail community as well. We can identify property and in many cases find those responsible to those thefts, which occurs pretty much on a daily basis." uticaod.com
Californian pleads guilty to fraudulent purchases of $114,191 in luxury watches in cross-country scam - actually did $1M to $2M A California man has admitted traveling across country buying luxury watches by using fraudulent driver's licenses and credit cards. When Phil Nguyen of Garden Grove was arrested last July in Centre County, the president of the New York-based Jewelers' Security Alliance said: This gang did considerably more than $1 million in fraudulent credit transactions, and probably closer to $2 million, spread over dozens of transactions." The alliance had issued alerts about the scam it said involved a "gang of Asian suspects. Nguyen Friday pleaded guilty in U.S. Middle District Court to a wire fraud charge and agreed to make restitution totaling $114,191. Nguyen and others involved in the scheme searched the Internet to identify jewelry stores that were authorized to sell expensive watches, Rocktashel told Judge Malachey Mannion. Between September 2013 and the date of his arrest, Nguyen admitted using fake documentation to buy and return watches in New Jersey, New York, Nevada, Massachusetts, Florida, Michigan and in the Pittsburgh area. pennlive.com
20 Arrested In $83,818.72 - Lowe's Retail Theft/Return Scheme in Western PA Police have arrested 20 people in connection with an elaborate retail theft and return scheme involving area Lowe's stores. According to police, 21 thefts happened from Feb. 9 through April 15 at several stores in five different counties across Western Pennsylvania. We had a number of individuals that were shoplifting various items from Lowe's stores," said Sgt. Chuck Mascellino, of the Cranberry Police Department. "They would then return them throughout Beaver County and Butler County for the gift cards or cash cards."
In all but one case, two men would enter the store and grab a five-gallon bucket or hand-held shopping basket. The men would walk through the store and load up on tools and other small, valuable items. At that point, they would make their way to the front of the store, where they would wait for employees to be tied up with customers before running outside. The stolen merchandise was then given to other people to return to the store. The value of the returned items were placed onto a Lowe's merchandise credit card, as is store policy for items returned without a receipt. The returns were made only to the Lowe's stores in Center Township, Beaver County, and Cranberry Township, Butler County. It's a larger case because of the dollar amount and the number of people involved," said Sgt. Mascellino. "We have had smaller cases before, but eventually they will be caught." Once the credit cards were obtained, they were sold to several Beaver County pawn shops for a percentage of the value on the card. The total value of the credit cards ended up being $27,780.40. cbslocal.com
Kingsbury, NY man sentenced to 6 years for thefts from Walmart; merchandise
seized in a trailer and storage unit A Kingsbury man who was found
with a van loaded with tens of thousands of dollars worth of items that had been
stolen from area department stores will serve up to 6 years in state prison for
the theft spree. Matthew J. Keeley, 34 of Deer Run, was caught in December in a
truck loaded with merchandise that had allegedly been stolen from stores around
the region, and that seizure led officers to a storage unit loaded with more
ill-gotten televisions, electronics, computers and other items, authorities
said. He pleaded guilty to felony criminal possession of stolen property for the
items, and agreed to serve a prison term of 3 to 6 years in state prison. That
term will run concurrently to a thee-year prison term imposed last month in
Saratoga County for a grand larceny conviction that originated at the Wal-Mart
store in Wilton last year. Keeley had a prior felony conviction that required a
prison sentence for the Wilton and Queensbury cases when he was convicted of an
additional felony. He is banned from Wal-Marts around the region because of
numerous shoplifting arrests.
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London's $200M+ largest ever jewelry heist Easter weekend - Same Crew hit Berlin Bank Vault in 2013 for $11.9M U.S. The gang of thieves who carried out one of Britain's largest ever heists in London's jewellery quarter may have struck before in Berlin, it has emerged. A burglary of bank vaults in the German capital two years ago bears many of the hallmarks of the Easter raid and the perpetrators have never been found, The Times reported. Scotland Yard described the gang behind the multi-million pound crime as "highly audacious" after they escaped Hatton Garden Safety Deposit Ltd with wheelie bins full of diamonds and jewels. The thieves disabled a lift to get into vaults, where they used a heavy duty drill to bore holes into its reinforced, two-metre-thick wall and access 70 safety deposit boxes, in an operation lasting three nights. In Germany, private security guards were to blame for ignoring an alarm going off in the Volksbank's vaults two days before the crime was discovered. Both burglaries saw the use of heavy duty drills to bore huge holes into the reinforced concrete protecting the safe deposit rooms. independent.co.uk
Spain bust major organized cyber crime gang of 54 - using POS stolen fraudulent
credit cards from U.S. & other countries The Spain National Police
have arrested 54 people of a cyber crime network dedicated to counterfeiting and
fraudulent use of foreign credit cards ,across Spain. According the Police an
international cyber criminal organization dedicated to the fraudulent use of
foreign cards in Spain, simulating effects sale transactions or provide services
in POS terminals companies without business was settled in Spain. The Police
found several commercial, fictitious or no real activity, requesting data phones
in major banks in Spain. Later they found that from the US, Dominican Republic,
Colombia and Venezuela bank cards supplied the leaders of the organization to
"pass them" by POS terminals establishments. cyberwarzone.com
Shots Fired at Monroeville Mall again Saturday morning - At #AllWhiteAffair2015.
(The event's title referred to the party's theme of dressing in all-white
attire.) Chief Cole said that at least 500 college-age adults, and possibly
more than 1,000, showed up at the restaurant around midnight Friday for a party
that was heavily promoted on social media. The chief said students from
California, Indiana, Edinboro and Slippery Rock state universities came in buses
for the event. The event was advertised through social media as
#AllWhiteAffair2015. (The event's title referred to the party's theme of
dressing in all-white attire.) "Social media got us again," said Chief Cole,
referring to a December incident in which fights broke out at the mall after
teens were drawn there by online postings. I saw buses showing up, and around
12:30 a.m. we shut the party down" for fear the crowd was becoming too large. As
the restaurant closed, he said, "There were a lot of people outside, so my
manager called the police to say, 'Hey come down before it comes to a brawl.' "There was just a lot of people" and one person with a gun who
"wanted their two
minutes of fame. While there have been security concerns at the mall, Winghart's
stands outside Macy's with its own entrance. Chief Cole said last night's
incident "could have happened anywhere," and noted the mall itself had closed
for the evening. Mall security was "blindsided" by the event, he added, and
local police were also unaware of it. While Chief Cole said 20 area police
departments responded to word of the shooting, only one person has been charged
with disorderly conduct in the incident. post-gazette.com
Former Dollar General Store Manager / Arsonist asked to pay $1M restitution in
Kentucky Federal Prosecutors want a woman imprisoned for the fire that
destroyed the Horse Cave Dollar General store to pay more than $1 million for
damage caused to the building. Debra Fowler Kessinger, 58, of Smiths Grove, is
serving a six-year sentence after being found guilty of arson in connection with
the 2011 fire at the store she managed. At her sentencing hearing last month in
U.S. District Court in Bowling Green, a dispute over how much money Kessinger
owed in restitution was not resolved. Assistant U.S. Attorney Jessica Malloy
filed a motion Thursday asking a judge to set restitution at $1,085,144.12. The
amount Malloy argues that Kessinger should pay is the sum of the inventory lost
in the blaze and the money that Owners Insurance Co., which insured the
structure, paid to property owner Paul Sanderford. The June 27, 2011, fire
occurred shortly before the store was to open for the day. The building was a
total loss. Phil Bramlett, Loss Prevention Investigator with Dollar General,
testified at last month's sentencing that $519,667 worth of inventory and
materials used to display the inventory were inside when the fire occurred.
"Bramlett also testified that the store was missing $2,289 in deposits on the
day of the fire," Malloy said in her motion.
Thieves drill through concrete ceiling - steal 51 iPads & 38 computers -
$100,000 from Simply Computing in Sahali Centre Mall in B.C. Canada
Police are searching for clues after an elaborate Kamloops Mac heist straight
out of a Hollywood script. Hayes said no alarm was sounded because of how the
thieves broke in - through the mall's concrete ceiling. He said the crooks
climbed onto the mall's roof sometime overnight, where they were able to get
into an empty second-storey office through a window. Once inside, he said, they
drilled through the concrete floor and then into the drywall of Simply Computing's ceiling Friday night sometime after closing.
"It's Oceans 11 stuff,"
Hayes said. The RCMP investigation into the burglary is ongoing.
VP of LP
Appearing One Day Only
View our Internet Jobs Archives here
Home of the Industry's Original
Johnny Custer, CFI
was named Director of Analytics for Sears Holdings Corporation’s Asset & Profit
Carolyn Doran was named Asset Protection Manager - Flagship, Herald Square for Macy's.
Sonya Richey was named Loss Prevention Manager - Distribution Center for Dick's Sporting Goods.
Smail Maouche was promoted to Senior Asset Protection Investigator for Abercrombie & Fitch, Hollister Co.
Martha Zamudio was promoted to Priority Team ORC Investigator for TJX Companies.
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How to Handle Employees Who Avoid Criticism When it comes to feedback,
sometimes we get a little resistant. In order to bring down the walls, trust
needs to be established so that others can see that your feedback as a leader is
intended to support their success and allow them to grow.
Stop 'Shirking' When You Give Constructive Criticism To be a great leader, you can't be afraid of being the "bad guy/girl." You will have to give constructive criticism and tough feedback at some point, and when you do you have to own up to it, even if that means being seen as the tough boss. No blame game
Last week's most popular articles--
The Science Behind Using Humor and Gratitude to Motivate Your Team Your team's dynamics, how well they work together and making sure that everyone's skill sets are honed, is critical for success. Here are some lessons every leader should know about the importance of team chemistry. Share a laugh
What to Do When You're Passed Over for a Promotion While your first reaction to getting passed over for a promotion may be to quit, there are other options that may be more helpful. The first step is to give yourself some time to let the anger pass, and then figure out what you can do about the situation. Make some inquiries
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