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April 24, 2013

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News Brief
Sponsored by WG Security Products, Inc.

E-commerce is increasingly providing a route for criminals to commit fraud in-store  which is being made possible by most retailer's lack of integration of fraud solutions across their multiple channels. The reality for most retailers is that their fraud solutions have been developed separately for their stores and their e-commerce operations. As the channels increasingly merge – through the likes of click & collect and reserve online - then Frame says problems are increasing. In most companies each channel has its own focus and strategy, with loss prevention not merged in any way. The challenge is to get them to talk together, but most importantly we’ve got payments and fraud together. (Source theretailbulletin.com)

Tropicana's Top Security Executive to Speak at NFSSC  Chuck Barry, Corporate VP, Security & Surveillance, Tropicana Entertainment, will be a featured speaker at the NFSSC 34th Annual Conference, August 4-7, in Las Vegas. Mr. Barry will provide an insiders look at gaming surveillance and security - allowing attendees to compare and contrast security responsibilities and think outside-the-box for solutions to their LP challenges. Register to attend the Conference today at http://www.nfssc.com.




Slow 1st Quarter and now a cold, slow April has some retailers looking to freeze headcount  Word has it a number of retailers are considering freezing headcount and not filling some open field positions in Loss Prevention. It's just talk at this point, but where there's talk often times there's action sooner or later. Let's hope May brings customers out.

Jones Group to close 170 U.S. stores, and slashing its work force by 8 percent
The company is cutting 18 percent of the staff in its stores and 2 percent of its corporate and supply chain jobs. Jones Group expects the streamlining of the company to cost of $40 million to $60 million over the next 15 months. They've been operating a streamlined LP program for some time and didn't replace their Director level position after the last one left for medical leave. This company has been consolidating for years and closed a number of warehouses over the last five and eliminated the Dir. of LP for that group a few years ago, as they're really more of a manufacturer than retailer. (Source Associated Press)

Argentina demands names and proof in Ralph Lauren bribery case after Tuesday's SEC announcement of $1.6M settlement  Argentina wants the U.S. Securities and Exchange Commission to name names and provide proof that Ralph Lauren Corp. bribed customs officials for years to allow its products into the South American country. Tax chief Ricardo Echegary came out swinging Tuesday and blamed private customs brokers and former Ralph Lauren executives for any violations, and suspended their tax ID numbers, which are necessary to do business legally in Argentina. (Source Associated Press)

The Sr. VP of Retail Operations job at Apple has been a revolving door since Ron Johnson left for Penney's - "Hey Ron your old job is vacant - take it!"  Says one writer and former co-worker. If Apple's CEO Tim Cook were to make a perfectly timed move within the VP level, it would be to court Ron Johnson back to Apple. (Source t-gaap.com)

One-third of retailers see more than 20pc of traffic coming from mobile
Pointing to the quick growth of mobile use for shopping, 29 percent of retailers now see more than 20 percent of their traffic coming from mobile devices. In terms of revenue, 27 percent see more than 10 percent of their revenue coming from mobile. 72 percent of retailers said they are currently selling through the mobile channel, while 76 percent of retailers say mobile initiatives are key for reaching their strategic goals in 2013. (Source luxurydaily.com)

20,000 skimming crimes in 2012 in U.S. with average lost of $50,000 costing about $2,500 per ATM  Skimming Protection Solution (SPS). NCR’s innovative SPS provides financial institutions with a proactive way to address today's ATM skimming challenges. SPS thwarts skimming activity, notifies a financial institution of an attack in real time, and adapts quickly to new types of attacks as they become increasingly sophisticated. (Source yahoo.com)

NFL beefs up security for this week's draft
About 20% more security personnel and increased K-9 explosive detective teams are on site, with everyone subject to screenings, including use of metal detectors and pat-downs, and searches of personal property. Even league officials, players and their families will be subject to such measures. All sports events have ramped up security since the Boston Marathon bombings last week. (Source nytimes.com)

Cybersecurity practitioners are facing the same identity crisis issues that retail LP practitioners felt for decades - Do they adopt some sort of licensing and certification regime in the U.S.?  Should IT security practitioners be deemed professionals like those in medicine and law? That's not an easy question to answer, says Ronald Sanders, former human capital officer at the U.S. Office of the Director of National Intelligence. "We have to figure out whether we should adopt some sort of licensing and certification regime for the U.S. cyberworkforce, and whether that will, on one hand, improve quality, but, on the other hand, potentially decrease supply." (Source govinfosecurity.com)

Face recognition stops ID fraud in its tracks
Asking applicants to ‘upload their face’ with their ID details is a solution to the problem of people using multiple identities to defraud. Technology company Facebanx has developed a new online facial recognition solution that will significantly help in fraud prevention within the financial services industry as well as reduce call centre costs by speeding up ID checking processes. Appling this to loyalty programs and customer membership programs could have significant impact. (Source retailfraud.com)

COPDOT - the new anti-theft tool rolled-out this week in Southern Florida  Cop Dots contains a micro dot with a serial number unique to the person who owns the items. The substance will be sold for $30 at the 41 Lowe's department stores throughout Central Florida. Using Cop Dots will also help victims get their stolen items back faster. (Source clickorlando.com)


Edmonton, Canada fatal shooting at Londonderry Mall last night
Man in his 20's fatally shot in parkade at Londonderry Mall last night at 9 p.m. Police are investigating and looking for multiple suspects. No one else was hurt in the incident, but a number of people were stuck inside the mall as the investigation unfolded in the parkade. (Source ctvnews.ca)
 

LPRC Supply Chain Protection
Working Group Moves Quickly

Several executive retailers have successfully formed the Supply Chain Protection Working Group to facilitate expert collaboration combined with field research efforts to address issues with cargo/transportation security, theft-deterrent programs, and learning how to better integrate technology.

Supply Chain Working Group leader Kevin Taparausky from MarMaxx, along with co-leaders, Willson Burggraff, Sears, Mike Combs, The Home Depot, Steve Main, Kroger Company, and Jeff Silvia, Big Lots have already held group calls, are assigning current participants to sub-groups to ensure each objective is being ensued, as well as planning their first face-to-face meeting in May. This group is making real progress toward accomplishing the group’s quarterly deliverables, which will provide actionable results to the LP industry.

These motivated leaders are supported by group members from Barnes & Noble, Office Max, Toys R’ Us, Neiman Marcus, Ferguson, Best Buy, TJX, AutoZone, and Rite Aid.


Read Hayes, PhD
Research Scientist, University of Florida
Director, Loss Prevention Research Council
321-303-6193
rhayes@lpresearch.org
rrhayes@ufl.edu
www.lpresearch.org
 

Colorado bill will increase threshold for felony theft from $1000 to $2000; some lawmakers see that as decriminalizing theft to some degree.  Many Colorado police departments are concerned about the impact the law change will have on retailers. A Colorado Springs Police Sergeant noted that felony theft is $500 in neighboring New Mexico, "Might this create a situation where thieves from NM cross into Colorado to commit thefts knowing they can steal more without facing a felony charge?" Republican Minority Leader Mark Waller of Colorado Springs supports the bill, in fact co-sponsored it, saying the values have not been updated in nearly 20 years, its time to adjust for inflation. (Source csindy.com)

Cop shot and robber killed this morning in Whataburger robbery in Fort Worth, TX.  About 6:30 a.m. when the officer responded to a hold-up call at a Whataburger the robber shot him. The officer returned fire and shot and killed the robber. (Source cbslocal.com)

JC Penney LP Manager pleads with judge for leniency of a shoplifting suspect. 
Loss Prevention Manager, Juanita Murphy was kicked in the knee while apprehending a shoplifter outside the JC Penney store in Canton, Ohio. Murphy’s knee was severely damaged, which required surgery and cost her $10,000 in medical bills and lost wages. Murphy, a former Ohio Corrections Officer went to court to face her assailant who had plead guilty to robbery, instead of being bitter, Murphy pled for leniency on the 19 year old suspect for making a mistake. (Source cantonrep.com)

 
Family Dollar store robbery suspect tackled in the middle of the street in East Orange, New Jersey.  The East Orange Police seemed to have the suspect boxed in from every direction as he was apprehended for robbing the Family Dollar store. Khaiuan Purnell, 26, walked into the Family Dollar Store Monday morning at 10 a.m., pulled a handgun and demanded all the money in the register. The dollar-store clerk triggered the silent alarm, police responded and had a description in a very short period of time. (Source nj.com)


Dollar discount stores a target in Greenville, South Carolina; fifth store robbery in 2013.  Dollar General and Family Dollar have both fallen victim to robberies in the area. One Greenville Family Dollar store has been robbed by armed suspects twice in the few last months. (Source reflector.com)

Payless Shoe Store robbery in Tewksbury. Tewksbury Police are investigating a robbery of the Payless Shoe Source store at Stadium Plaza Tuesday morning. The suspect entered the store shortly after opening and demanded cash and fled the area on foot. Officers were stationed at each of the plaza's two exits asking people whether they had seen the suspect. The man was not armed, and no one was injured. (Source tewksbury.patch.com)


Suspected shoplifter steals $1300 of merchadindise, ends up in the hospital after fighting with the owner of a Hobby Shop.  Police in Lake Elsinore, California are still looking for one suspect who got away, but his friend is now in detention following a brief hospital visit. The owner of a hobby shop followed the two theives out of his store and conformted them, one of the suspects jumped into his car and fled with $1300 of merchadise. His friend was left behind to deal with an upset store owner. When police arrived the suspect was requesting medical attention for chest pains. (Source swrnn.com)

Burglar escapes after break-in at Bi-Mart in Damascus, Oregon; possible former employee suspected.  The Clackamas County Sheriff's Office is looking for burglar who broke into a Bi-Mart in Damascus early Monday morning. The store's alarm was triggered at 1:08 am, the suspect fled the scene before deputies arrived. After searching the area, they determined that burglar gained entry through the roof. Three rifles were stolen, the suspect knew where to find the keys to gun safes, and police were looking into the possibility it was a former employee. (Source kgw.com)


Houston burglars used a stolen pickup truck to smash down a shoe store security gate.  Houston Police recovered a stolen F150 pickup inside a shoe store on Houston’s southwest side. At least two suspects ditched the vehicle after the failed burglary attempt. The store owner gave the suspects a piece of advice. “Please get an education and a job. This kind of business is short-lived for them. They can get hurt, they can get in trouble, they can get in jail,”. (Source khou.com)


Two sisters arrested for shoplifting and assault in Rock Hill, South Carolina; one bit the LP agent, the other hid in the trunk of a get-a-way car.  Two women were stopped by a Target Asset Protection agent for concealing nearly $100 of merchandise. One suspect bit the arm of the LP agent, breaking the skin, both suspects got away. A short time later both suspect were seen across the street at a gas station and approached by police. Ladorea White fought with police till handcuffed, while her sister fled flagging down a car, jumped into the backseat, folding it down and crawled into the trunk. When police stopped the vehicle, Damaria White was apprehended inside the trunk. (Source heraldonline.com)

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In Memoriam
 
Funeral for a Friend- More Comments For Angelo

We are deeply saddened to announce that Angelo Longo Jr. of Blacklick Ohio recently passed away while away on business. A lifelong loss prevention professional and loving father will be laid to rest on:

Thursday, April 25, 2013 from 5:00 p.m. – midnight in Miami, FL. There will be a religious service at 8:30 p.m. and it will take place at:

Funeraria Memorial Plan Westchester
9800 SW 24th Street/Coral Way
Miami, FL 33165
305-227-3333

Your piece on the sudden passing of Angelo Longo was truly touching. I am blessed to be able to count Angelo, and his late brother Jeremy, as early LP colleagues of mine from 20+ years ago. As a fellow Cuban-American who also grew up in this business working in the Miami retail environment, I am proud to say no one did more to represent our Cuban heritage in the LP industry than Angelo. When I reflect back on my LP career, I will always remember Angelo and be thankful I had the chance to know him. Angelo was a true professional, in every sense of the word, and I will miss him very much.
Osbey Orozco/Winn Dixie  

 

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ORC News
 

Torrance police break up alleged identity theft ring spending their loot at high-end retailers  Torrance police detectives have broken up an alleged identity theft operation in which hundreds of thousands of dollars were stolen from victims from San Diego to Simi Valley. The theft ring used victim's names and credit information to purchase men's Dolce & Gabbana and Louboutin designer clothing and shoes, stereo equipment, computers and cameras as well as to make cash advances, police said. (Source dailynews.com)

Mesa police bust ORC gang of 3 hitting JC Penney  Three people were arrested Saturday on suspicion of maintaining an organized retail theft scheme that involved exchanging shoplifted goods for more than $6,700 in gift cards from the Valley stores they hit, according to a police document. Store officials documented 10 instances of shoplifting by way of fraudulent returns involving the three suspects. Parker and Valles would return stolen items to the store in exchange for gift cards. Rouse, Parker and Valles will face charges in organized retail theft and felony shoplifting, police said. (Source azcentral.com)

ORC? Five arrested for felony retail theft hitting Best Buy in Quincy, IL  According to Quincy Police, there were reports of several shoplifters at Best Buy late Monday night. A witness reported seeing four people stealing items. The witness also gave a description of their vehicle as well as a license plate number as the car headed south on I-72. The vehicle was stopped by Illinois State Police near Pittsfield. Numerous electronic items were found in the vehicle. All four people, as well as a fifth person who had been waiting in the car at Best Buy were arrested. Starlette Higgins, Alexia Robinson, Willisha Brown-Joiner, Silva Harris, and Leonski Higgins, all of Springfield, Illinois, were arrested and are currently lodged in the Adams County Jail. (Source wgem.com)

Nine suspects hit a Victoria’s Secret store in Newark, California.  Eight females and one male entered the Victoria’s Secret store in the Newpark Mall last Thursday evening and emptied racks of merchandise. As mall security approached, some of the suspects dumped the merchandise before fleeing. (Source sanfrancisco.cbslocal.com)


Senate Passes Five Zeldin Bills Targeting Organized Retail Crime

By Lee M. Zeldin on Monday, April 22nd, 2013

The New York State Senate today passed a package of legislation, sponsored by Senator Lee M. Zeldin (R-C-I, Shirley), that would crack down on anyone participating in Organized Retail Crime.

“According to the FBI, organized retail theft costs United States retailers about $30 billion per year,” said Senator Zeldin. “In New York alone, these organized crime rings cost our local retailers hundreds of millions of dollars annually and, more importantly, compromise the health, safety, and welfare of unsuspecting New York consumers. In addition, for every item stolen, New York State and local governments lose out on millions in sales tax revenue. Organized retail theft is the most serious security issue facing many retail merchants, including apparel and accessory retailers, mass merchandisers, do-it-yourself stores, drug stores, and supermarkets. It's a crime that has grown substantially over the past decade, and has continued to grow at an unprecedented level. Retailers are forced to offset these significant costs through higher prices meaning that honest consumers are forced to endure the impact of these professional shoplifters.”

Senate bill 2926-A would allow any county in the state to prosecute someone who participates in a pattern of organized retail crimes when at least one of the offenses occurred within their jurisdiction. These highly intelligent criminals are well aware of the jurisdictional limitations under current law and avoid committing multiple offenses in the same county to avoid harsher penalties. This bill would give law enforcement officials another tool in curbing organized retail crime.

Senate bill 2927-A would increase the criminal penalties on anyone who uses fraudulent or counterfeit credit cards, account numbers, gift cards, or other devices to illegally gain access to money, goods, or services. In addition to harming retailers, these offenses also harm honest consumers when their account numbers are stolen. This bill cracks down on these thieves by increasing the criminal penalties for retail theft to a Class A misdemeanor, Class E felony, or Class D felony.

Senate bill 2928 recognizes the fact that organized retail thieves have been known to hide in retail stores and wait for all employees to leave before removing large amounts of goods through emergency exits or by having a "get-away" car parked outside an emergency exit. This bill would allow the courts to charge someone with grand larceny in the fourth degree for using an emergency exit in furtherance of organized retail crime.

Senate bill 2929 targets organized retail crime from the top by classifying the leading, organizing, supervising, financing or managing of an organized retail crime enterprise as a Class C felony.

Senate bill 2930 would create the new crime of “theft of retail merchandise with an aggregated value of $1,000,” and changes the Penal Law to define this crime as “grand larceny in the fourth degree.”

The bills were sent to the Assembly where each have been introduced by Assemblyman Michael Cusick (D-Staten Island).

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Vendor Spotlight
 


Axonify will be at the RILA Retail Asset Protection Conference 2013, will you?

Find out how retailers like Pep Boys are utilizing the latest in eLearning to significantly reduce shrink and create a positive culture shift in their stores nation-wide. Combining the latest in brain science with engagement mechanisms such as rewards and gamification, Axonify's next generation eLearning platform is the leader in loss prevention reduction.

Creating long lasting and impactful results with the power of interval reinforcement and with only a few minutes a day Axonify is generating compelling shrink reduction results for retailers everywhere. With Axonify, employees follow a personalized knowledge map that ensures they are learning, retaining and most importantly implementing what they learn. Axonify easily identifies and fills the knowledge gaps. Content is stored and managed through a secure administration interface that is easy to use.

Axonify will be exhibiting and showcasing its platform in booth #513 at the Retail Asset Protection Conference, April 28 to May 1st in Orlando, FL. Stop by and experience the platform for your self and hear first hand how industry leaders like Chad McIntosh, VP Loss Prevention & Risk Management at Bloomingdale's are taking loss prevention to the next level.

See you at the show!

RILA Retail Asset Protection Conference 2013
Gaylord Palms Resort and Convention Center - Orlando, Florida
April 28 - May 1

Contact
Laura Martin
Axonify, Inc
1-519-585-1200 ext. 203

lmartin@axonify.com

 

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Eight Lessons from the Great Man (or Woman) School of Leadership  The "Great Man" theory according to this article is based on the idea that men and women are not shaped by history, but in fact they shape it.  Men and Women are successful because they have pushed it into being so. Do you, leaders, follow this theory? (Check out these eight traits)

5 Leadership Lessons for Today's Executive  As this author delves into the leadership commonalities that can be derived from the war film 12 O'clock High into our modern workplace, take note and make sure you, as a leader, are following these guidelines. Herein lies the difference between if you will succeed or fail as a leader. (Micro-managing is a no-no)

Leadership 310: The Four Principles of 'Followership'  After attending a conference, this author wrote on the key notes he learned about leadership. The key to being a good leader isn't even about leading, it's about your followers, and in order to be an effective leader, you need to garner a faith in those who follow you. Do you have a strong followership?  (Do you have these four key attributes?)

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"Speed Kills" As we all sprint virtually every day to accomplish our tasks, one must remember that, without stepping back and getting out of your box to see exactly where you're going or where you've been, you won't ever be able to see where you really need to go. And in that case speed really does kill and you may never even see it coming because you're moving too fast. That's why three-day-weekends are so great; they make you stop and listen. You've just got to make sure you hear it.

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Upcoming Events

Retail Asset Protection Conference 2013
April 28-May 1
Orlando, FL


2013 Annual Spring IOBSE Spring Conference
May 8 -10, 2013
Columbus, OH

NRF Loss Prevention Conference & EXPO
June 12-14, 2013
San Diego, CA

NFSSC Annual Conference
August 4-7, 2013
Las Vegas, NV

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November 5-7, 2013
Atlanta, GA


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