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The D&D Daily Mobile Edition

May 6, 2014

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News Brief
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A&P Deploys Agilence's Retail 20/20 Solution Chainwide Across More Than 300 Stores  Agilence, Inc., the leading provider of cloud-based exception reporting solutions, today announced that the Great Atlantic & Pacific Tea Company has selected Retail 20/20 to enhance their chain-wide effort to reduce shrink and fraud. “We needed a flexible reporting tool that made it easier to analyze all of our data in one place, and one that was also available as a subscription,” said Jim D’Arcy, Vice President Loss Prevention & Food Safety for A&P. “After evaluating all available solutions we chose Retail 20/20 because of its scalability and flexibility. The product will allow us to analyze the enterprise as a whole and also allow individual brand analysis which is critical due to the different go to market strategies each brand implements.” Based out of New Jersey, A&P operates more than 300 stores in the Northeast under the A&P, Food Basics, The Food Emporium, Pathmark, Superfresh, and Waldbaum’s banners. Retail 20/20 will be utilized in all of their locations. (Source chainstoreage.com)

Office Depot closing 400 U.S. locations
"Based on our preliminary analysis, we expect to close at least 400 locations in the U.S., with 150 stores slated to close in 2014. We anticipate the total store closures will generate annual run-rate synergies of at least $75 million by the end of 2016 and will begin to be accretive to earnings in 2015.” Office Depot ended the first quarter of 2014 with a total of 1,900 retail stores in the North American Retail Division, comprised of 1,082 Office Depot and 818 OfficeMax branded locations. Office Depot ended the first quarter of 2014 with a total of 353 stores in the International Division, including 146 company-owned stores, 92 OfficeMax stores in Mexico owned by the consolidated joint venture, and 115 stores operated by franchisees and licensees. (Source businesswire.com)

Target's Chief Executive Gregg Steinhafel's fall will heighten the attention CEOs in retail give to C-level security pros - It's the time for retail CSO's - Do we have what it takes?  The massive data breach that tarnished the career of Target Chief Executive Gregg Steinhafel and contributed to his resignation is a reminder of the worst-case scenario facing CEOs caught in a security SNAFU. Nevertheless, the breach announced last December that damaged the retailer's reputation and was behind a drop in sales during the busiest shopping season of the year was certainly a major contributor to Steinhafel stepping down. The breach was the straw that broke the camel's back," Avivah Litan, analyst for Gartner, said. The Target cyberattack, which was followed by intense media and congressional attention, was a "watershed event" for the retail industry, Litan said. Since then, CEOs have built closer ties to chief security officers, often having CSOs report directly to them. Other industry sectors have had their own catalysts for elevating the role of the CSO in business development. In the financial sector, the turning point were the 2012 distributed denial of service attacks by Iranian hacktivists that lasted for several months. For government agencies, it was former contractor Edward Snowden releasing sensitive documents last year on Internet spying by the U.S. National Security Agency. Taken together, these events have drummed security in the consciousness of many CEOs. Experts agree that C-level security officers should report directly to chief executives, rather than to the CIO. Company boards should invite C-level security pros to business development discussions, in order to get the security implications of decisions, High said. (Source csoonline.com)

International Organization of Black Security Executives unveils new website, hosts 2014 Spring Conference at Ross Stores HQ  The International Organization of Black Security Executives (IOBSE) just launched a newly designed website, which features up-to-date news, events and information about the organization and their objectives of developing and mentoring future leaders in the Security and Loss Prevention industry. IOBSE is the leading organization for minority security professionals. It was founded in 1982 by Black Security Executives who were concerned about the relatively small number of minority professionals in the industry, with the objective of providing career development and mentoring for young minority college students aspiring to the security industry. Seeing the importance of the non-profit organization, Downing & Downing partnered with IOBSE well over 10 years ago to help develop and host the group's original website. Today, Downing & Downing and the D&D Daily remain close partners with IOBSE - and helped develop the new website which helps continue its mission of developing future industry leaders for tomorrow's security and LP challenges. Last week, IOBSE held its 2014 Spring Conference in Pleasanton, Calif., at the corporate offices for Ross Stores. The organization remains dedicated to providing quality security-management-focused educational programs for minorities worldwide. And we at the Daily would like to recognize them for their unmatched efforts. Stay tuned for a re-cap of the conference coming soon.

Watch out here comes Apple retail - with the highest paid woman at Apple  Burberry's former CEO, Anglea Ahrendts takes the reigns of one of the retail industry's toughest jobs - Apple Retail. The job has been a revolving door ever since Ron Johnson left for J.C. Penney and we all know how that worked out. And Apple retail has struggled ever since his departure even though you wouldn't think it. But now that they have the person who re-birthed Burberry watch out for their growth and impact on all these stores within stores that all the electronics retailers have been throwing in, because she'll have an impact in that world. (Source wsj.com)

Checkpoint Systems Announces Organizational Changes Focused on Growth  Farrokh Abadi, President and Chief Operating Officer, Merchandise Availability Solutions, has been given an expanded role to lead Strategy and Corporate Business Development. Checkpoint also announced the appointment of Uwe Sydon as Senior Vice President Innovation. This is a new role for Checkpoint, moving innovation to the senior leadership team reporting to President and Chief Executive Officer, George Babich. In addition, Checkpoint announced the appointment of Bryan Rowland to Vice President, General Counsel & Corporate Secretary. "I am very excited about the future for Checkpoint,” said Mr. Babich. “Over the past two years we have right sized our portfolio and completed significant cost reductions and process improvements that enable us now to focus on growth. With the success of our LEAN program, we have the balance sheet to invest in R&D and to supplement our internal innovation with strategic acquisitions of technologies and products. The combination of this strong management team driving excellence in both operational execution and our growth initiatives will position us well to serve our customers and our shareholders.” (Source businesswire.com)

Domino’s set to open 11,000th location

Publix taps Apex to boost retail audit recoveries  Apex Analytix, a provider of services and software to safeguard disbursements, identify fraud and improve performance across the procure-to-pay cycle, announced it has been chosen to provide retail audit software to Publix Super Markets. (Source chainstoreage.com)

PayPal enables fast mobile checkout via fingerprint recognition  When a Samsung user links her fingerprint to her PayPal account, the Samsung device scans the fingerprint and generates a unique number based on three identifying factors: the fingerprint, the device and an encryption key from PayPal. This unique number is stored in a secure area on the device and provided to PayPal each time a user swipes her finger at a merchant that accepts PayPal. The fingerprint never leaves the device and no biometric data is ever transmitted. (Source internetretailer.com)

Lenox Square Mall in Atlanta hosted mock terrorist attack last Sunday  The FBI and the U.S. Department of Homeland Security partnered with Atlanta police and representatives from state and local law enforcement, fire and emergency medical services for the drill. (Source examiner.com)

Quarterly Same Store Sales Results

Office Depot Q1 North American Retail Division down 3% with consolidated sales down 3%
Alco Q4 down 11.7% with with net sales down 8.9%

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Can Wages Buy Honesty?

The Relationship Between Relative Wages and Employee Theft

With Harvard Professor Tatiana Sandino and
Jim O'Connor, VPLP, Bed Bath & Beyond

In this three-part interview, Tatiana Sandino, Associate Professor at the Harvard Business School, discusses her recent study, "Can Wages Buy Honesty: The Relationship Between Relative Wages and Employee Theft." She and her co-author wrote the study based on an interest in the challenges that can be faced when controlling employee theft in the retail sector, and how companies paying higher wages could affect employee theft.

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Improved Analytics Can Boost the Fraud Fight The dynamic, real-time challenges presented by payment fraud are an ideal environment for analytic intervention. In fact, payment fraud prevention was one of the earliest commercial successes of Big Data analytics. And improvements in analytics will be key to fighting fraud in the future. The constant adaptation of anti-fraud technology has not only kept pace with changes in payment and fraud patterns, it has actually made payments safer. In the U.S., credit card fraud was equivalent to roughly 18 basis points (0.18%) of all payment card activity in 1992. Today, payment fraud in the U.S. is closer to 5 basis points of all credit card payments. Because of this powerful technology, the payments industry has been able to introduce new payment methods and channels, such as e-commerce, mobile commerce and peer-to-peer payments that have lowered friction for the customer, albeit with new fraud vulnerabilities. (Source paymentssource.com)

Hackers Discover New Vulnerabilities: Retailers Beware  Cyber criminals are increasingly turning to RAM scrapping malware, a technique thought to have fallen out of favor among thieves in recent years, to orchestrate some of the biggest POS breaches in recent history. The use of RAM scrappers at the POS level allows for the theft of credit card information before it is processed and encrypted. This report paints a bleak landscape of retailers' ability to battle the increasingly sophisticated cyber criminals. Verizon's report asserts that most of the current cyber security hacks are originating by organized crime based in Eastern Europe and that the criminals are far outpacing retailers in speed and intricacy. "The bad guys seldom need days to get their job done," the report asserts. "While the good guys rarely manage to get theirs done in a month of Sundays." The top three threats to shopper data, according to Verizon, are Internet intrusion, stolen vendor credentials, and compromise at the corporate location. (Source edgl.com)

Data breaches 9% more costly in 2013 than year before

"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

 

National Retail Federation
 


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Retail Crime News
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The Ocean's 11 of Strip Mall Robberies

How Investigators Tracked Down Five L.A. Criminals Who Lived the High Life Off Rooftop Bank Heists - Stole Millions by 'Busting In From Above'

The men had their pick of eight banks at the busy intersection of Diamond Bar Boulevard and Grand Avenue in Los Angeles. They chose the Citibank branch that used to be a Blockbuster store. For more than a month, the five of them became regular customers. But unlike others who used that branch, they returned after dark — to watch and wait. Then, one night in April 2013, four of the men climbed out of a white van in matching Dickies jeans and long-sleeved shirts. Carrying a 6-foot ladder, roofing materials, a drill and other heavy equipment, they climbed onto the Diamond Bar bank's roof. For three hours, they cut and sliced through the rooftop. Using a sonar device, they were able to locate the vault and cut a hatch right over it. They stole nothing that night — in fact, they sealed the hole up before leaving. This was a two-night job, and they wanted to make sure bank employees never suspected a thing. For years, the crew was taking advantage of less-fortified one-story strip-mall banks with cuttable roofs and more easily breached after-market concrete vaults, investigators say. In one bank heist back in August 2011, the five men stole a million dollars in cash and emptied 65 safe-deposit boxes, which once held as much as $14 million in cash, gold and jewelry. Although they lived in modest homes in the Inland Empire towns of Beaumont, Banning and Yucaipa, their lifestyles were anything but modest: fast cars, a fleet of Ducatis, bottles of 1950s-vintage Dom Perignon, and trips to Las Vegas where they'd drop $60,000 in gambling sprees, according to court documents and prosecutors. "None of them worked and they were living the high life. They had all the toys," said Det. Nicholas Cannis of the L.A. County Sheriff's Major Crimes Bureau. "They spent most of their time spending money... They simply believed they were characters in 'Ocean's Eleven' or 'Fast and Furious.'" On the night of April 4, 2013, the suspects loaded up their van with their construction tools and set out for yet another L.A. bank. From a neighboring property, Cannis and other detectives of L.A.'s Major Crimes Bureau could see the rooftop activity. It was nearly 2 a.m. when the five men drove off from the bank. They didn't get far — a GPS device had been attached to the van. When they hit the highway, some 30 detectives and deputies stopped the van and the lookout car and handcuffed the men without a struggle. Two days later, they pleaded guilty to conspiracy to commit bank burglary and attempted bank burglary. They face up to 25 years in prison at sentencing this summer. Prosecutors are preparing to charge the men in at least two of the other bank burglaries. And there's something else, Cannis said: "All that money is still somewhere out there." (Source latimes.com)



(Pictured Left) A hole in the rooftop of one of the burgled strip mall banks.
(Right) A 1939 Chevrolet - among the assets seized in the case.

Burglars cut hole in Macy's roof - shimmied down rope - jewelry heist has Louisville retailers concerned at Oxmoor Center  Burglars in Louisville cut a hole in a Macy's store roof right over the jewelry department on Saturday night April 26th and took a large number of high-end watches. So far, no arrests have been made. (Source wlky.com)

Informant grilled on convictions in federal cargo theft trial  The government’s chief witness spent much of Monday under intense cross-examination as the federal trial of three Cuban immigrants charged in a major Las Vegas-area theft ring entered its second week. Defense lawyer Thomas Pitaro grilled six-time felon Yordani Corona Del Toro about his claims not to know what his FBI handler did to get him probation in two state burglary cases. Pitaro said FBI agent Shay Christensen even talked to the judge at Del Toro’s sentencing in one of the cases. Del Toro, 23, who also is a Cuban immigrant, got probation despite plea deals allowing state prosecutors to seek life in prison for him as a habitual criminal after he fled the county for several months last year. The three defendants — Julio De Armas Diaz, 54; Alexis Torres Simon, 46; and Alexander Del Valle Garcia, 42 — are standing trial on felony charges tied to the theft of drugs and high-quality merchandise from delivery vans and warehouses around the Las Vegas Valley. (Source reviewjournal.com)

Jewelry store employee dead after Richmond, VA robbery  A day after throngs of people gathered Sunday at the finish line of the USA Cycling Collegiate Road National Championships at North Fifth and Broad streets, a shopkeeper is believed to have been shot dead just two blocks away. Shortly before 4 p.m. Monday, police were called to Victoria Jewelers on the south side of the 300 block of East Broad Street. Police found a male employee, in his late 20s, inside the store dead from an apparent gunshot wound. (Source timesdispatch.com)

El Paso Police: Argument inside Wal-Mart led to parking lot shooting  A man shot Sunday evening outside a Wal-Mart had an argument with a group of people inside the store before he was shot in the parking lot, El Paso police said Monday. Police said there have been no arrests in the shooting that occurred at 6:25 p.m. in the parking lot of the Wal-Mart at 12236 Montana in the far East Side. The argument in the store continued outside before the 34-year-old man was shot once in the abdomen, police said. The group the man was arguing with left in a vehicle before police arrived. The man was taken to Del Sol Medical Center with a wound that was not believed to be life threatening. On Monday, police said that the man and the shooter may know each other but it has not been confirmed if they are related. Police had initially said the shooting appeared to involve family violence. (Source elpasotimes.com)

NYC Armed Robber Strikes Again, Uses Stun Gun on Store Worker in West Village  Police say the armed robber in a baseball cap wanted in a series of bodega robberies since November has struck again, this time at a West Village shop where he tied up the store clerk and shocked him with a stun gun. The suspect has robbed one bodega a month on the Upper East Side and Upper West Side since November, police say, tying up employees before making off with cash, cigarettes and lottery tickets. (Source nbcnewyork.com)

Police arrest Polo Ralph Lauren Outlet store employee wanted for $41,000 theft in Gonzales, LA  Police have arrested a man accused of stealing more than $41,000 in merchandise from the store where he worked. The Gonzales Police Department said Lyndon Pack, 25, of LaPlace, turned himself in Monday night. He is charged with felony theft. Investigators said Pack is suspected of making fraudulent transactions at the Polo Ralph Lauren Factory Store at the Tanger Outlet in Gonzales from November 10, 2013 until April 10, 2014. According to a report from the Gonzales Police Department, the transactions were done by voiding certain transactions or presenting a zero balance and fraudulent returns in which Pack received the money. An internal investigation by Polo into the suspicious employee activity revealed thefts by two additional employees. Those employees were not named, but they were arrested. (Source wafb.com)

PetSmart employee in Brownsville, TX surrenders after stealing cash  An employee at PetSmart has turned herself in after authorities issued an arrest warrant for theft after more the $6,900 went missing from the business. The incident happened on the 500 block of E. Morrison Road in Brownsville. Investigators said Jadesmi Saldana took a total of $6,960 from the store over a month from deposit bags. The investigation reportedly began April 9th, 2014 with the 20-year-old. According to police, Saldana would take $20 at a time. The 20-year-old turned herself in to police early Friday morning. (Source valleycentral.com)

Officers investigate spate of robberies in SW Florida  A spate of armed robberies at businesses in Lee and Collier counties since April 28 appear to be unrelated. The latest such crimes hit three Lee County sites on Sunday: a Dollar General store in Lehigh Acres, a Circle K in Bonita Springs and a Comfort Inn in Fort Myers. (Source news-press.com)

Hacking gang operating in Hazle Township, Luzerne County, PA., hacking wifi systems of businesses for credit-debit card info

Lewiston, ID man faces felony grand theft charge; Lowe’s Credit card fraud

Four arrested in pharmacy hold-up in Anne Arundel Co. Maryland

Police Make Arrest In Sanatoga, PA K-Mart Jewelry Burglary

Robbers take several phones from Odenton, MD Verizon store

Kay Jewelers in Castle Rock, CO the victim of a Grab and Run of an 18k Gold Rolex, valued at $11,400

Robberies and Burglaries

Central Pharmacy – Elizabeth Twp., PA – Robbery/ Assault – 2 suspects charged
Circle K – Bonita Springs, FL – Robbery
Circle K – Schriever, LA – Robbery – suspect arrested
CVS – Hickory, NC – Armed Robbery – suspect arrested / called for taxi
CVS - Viewmont, NC - Armed Robbery - suspect arrested after using cab as getaway car
Dollar General - Harris Co., TX – Armed Robbery – hit minutes after Family Dollar robbery
Dollar General – Lee Co, FL – Armed Robbery
Family Dollar – Harris Co., TX – Armed Robbery – 3 suspects
Dollar General - Lehigh Acres, FL - Robbery
H&K Food Mart – Albany, GA – Robbery – 5 people questioned by police
Huber’s West End Market – Lancaster, PA – Armed Robbery – Reward now offered
LaPlace Feed and Supply - St. John Parish, LA – Homicide/ Armed Robbery – 2 suspects charged
Long John Silver’s – Albany, GA – Burglary
Luckie’s – Glen Burnie, MD – Armed Robbery
Marathon Store – Athens ,TN – Robbery – 2 suspects wanted
Russels Quick Stop - Wilmington, NC - Armed Robbery
Three Way C-Store - New Bern, NC - Armed Robbery
Verizon Store - Odenton, MD - Armed Robbery
Victoria Jewelers - Richmond, VA - Armed Robbery - employee shot and killed

Walgreens - Tulsa, OK - Robbery
Wawa - Claymont, DE - Armed Robbery

7- Eleven – Asbury Park, NJ – Armed Robbery – suspect charged

 

ORC News
 
Another ORC $20,000 liquor bust at Ralph's grocery stores in Southern Calif. Kroger's ORC team hits again  Officers arrived at the Ralph's Grocery store and contacted Dominique Clayton, 22, as he attempted to get into his vehicle. The suspect was arrested for burglary and several bottles of alcohol, worth $132, were recovered. During a search of the suspect's vehicle $1,200 worth of alcohol, confirmed stolen from Ralph's by UPC barcode labels, was recovered in the trunk. The suspect was later identified in a series of alcohol thefts related to organized retail crime in which in excess of $20,000 worth of alcohol had been stolen during the last five months in four different Southern California counties. Ralph's Organized Retail Crime Investigators became involved in the investigation and the suspect admitted to alcohol thefts for the last three years. (Source myvalleynews.com)

DC man charged with 26 counts of theft, credit card fraud  Washington, D.C., man is charged with 26 counts of theft and related charges for what the state calls an “elaborate scheme” in which he used stolen credit cards to purchase gift cards and consumer goods. (Source carrollcountytimes.com)

Manchester police bust female fraudster shipping goods overseas to Ghana  Manchester police arrested a woman who fraudulently used credit cards at big box stores in New Jersey and Pennsylvania, then shipped goods overseas. Theresa L. Powell, 51, Ewing Township was charged with credit card fraud and identity theft following a multi-jurisdictional investigation which included: Manchester Township Police, Logan Township Police and West Windsor Township Police. (Source patch.com)

Chesterfield, Va., looking for two females hitting 'tons of stores' with stolen credit cards  Police say they hit Target, Hollister, Bath and Body Works- even Macy's. Then police say the duo went shopping at Short Pump, hitting up Macy's, Nordstrom, and even Toys R Us- racking up $3,800 on the stolen credit cards. (Source nbc12.com)

Why Theft Ring is Targeting Trader Joe's Stores in California  At least three agencies -- the LAPD, the San Diego PD, and the Ventura County Sheriff's Department -- are trying to stop a supermarket theft ring. Armed with nothing more than a common reusable shopping bag, a ring of thieves is stealing shoppers wallets--and identities--using a clever bag trick, at a growing number of Southern California supermarkets, an NBC4 I-Team investigation has found. "It's a nightmare. It's an ongoing nightmare," says Martha, who asked us not to use her last name. The thieves swiped Martha's wallet from her purse, which she put in her cart at Whole Foods in Del Mar. Surveillance video obtained by the I-Team shows how it happened. A male suspect sidles up to Martha's cart, and as she turned her head to look at a display, the suspect sticks his hand in her purse, blocking her view of the cart with a reusable shopping bag. (Source nbclosangeles.com)

Longview, WA couple stole $10,000 of liquor from Kelso Safeway  Longview couple allegedly stole $10,000 of whiskey from the Kelso Safeway during a six-month period. Gregory A. Stack, 57, and Lanette M. Stack., 54, haven’t been charged yet but confessed when interviewed by police, according to Kelso police reports. Their information has been forwarded to prosecutors, and they were released by police on their own recognizance for now. Police stopped the Stacks on Wednesday in the Safeway parking lot after the store's security staff called them. Officers reported finding a bottle of Gentleman Jack whiskey under a purse in the couple’s shopping cart. The rest of the groceries had been paid for. Lanette Stack said they’d forgot to pay for the liquor, but store security told police they had tapes showing the couple doing this many times before. (Source tdn.com)

One female busted one still on the run after hitting Walmart for over $30,000 in refund fraud in Madison County, N.Y.

NYC man faces Federal charges after hitting Target and Walmart stores for $156,000 in gift cards using stolen credit cards in Rhode Island

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Vendor Spotlight
 

The Great Atlantic & Pacific Tea Company Selects Retail 20/20 to Combat Shrink and Fraud

A&P will deploy Retail 20/20 in an effort to drive lower shrink across their chain


MOUNT LAUREL, NJ, May 6, 2014 – Agilence, Inc., the leading provider of cloud-based exception reporting solutions, today announced that A&P has selected Retail 20/20 to enhance their chain-wide effort to reduce shrink and fraud. Based out of New Jersey, A&P operates more than 300 stores in the Northeast under the A&P, Food Basics, The Food Emporium, Pathmark, Superfresh, and Waldbaum’s banners. Retail 20/20 will be utilized in all of their locations.

“We needed a flexible reporting tool that made it easier to analyze all of our data in one place, and one that was also available as a subscription,” said Jim D’Arcy, Vice President Loss Prevention & Food Safety, The Great Atlantic & Pacific Tea Company. “After evaluating all available solutions we chose Retail 20/20 because of its scalability and flexibility. The product will allow us to analyze the enterprise as a whole and also allow individual brand analysis which is critical due to the different go to market strategies each brand implements.”

“Retailers today are constantly evolving, and the data they collect reflects this,” said Russ Hawkins, CEO, Agilence, Inc. “That is why Retail 20/20 was built to be flexible, helping retailers like A&P personalize the solution for each of their brands.”

About Agilence
Agilence (www.agilenceinc.com) is the industry leader in next-generation exception-based reporting solutions for retail loss prevention and operations. Agilence develops Retail 20/20, a highly flexible and powerful, cloud-based reporting solution that provides visibility into daily store operations to reduce fraud and operational inefficiencies. Retail 20/20 provides users with a complete view of their business, empowering them to make informed decisions faster, to increase efficiency and improve profit margins across the enterprise. Founded in 2006, Agilence, Inc. is headquartered in Mount Laurel, NJ. To learn more about Agilence, please email sales@agilenceinc.com or call 856-366-1200.

MEDIA CONTACT
Derek M. Rodner
856-366-1200
drodner@agilenceinc.com

 

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It seems like we're always saying "get back to the basics" and "keep it simple" almost on a daily basis. We say it so much, most of us don't even hear it and certainly don't appreciate its absolute truth that it speaks to. In our self-motivating attempts to be great at what we do, oftentimes we run faster and try to do more and lose sight of one basic rule. Success begins with the basics. And it's only when we feel like we've evolved beyond them that we find we've only outsmarted ourselves and at that point we've all got to start over and just get back to the basics.

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