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The D&D Daily Mobile Edition

May 8, 2014

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News Brief
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New senior leadership team at Regis Salons makes Asset Protection a priority - Over 30 new AP jobs!  About a year and a half ago a new senior leadership team was installed at Regis Salons, the worlds largest salon operator located here in the U.S. With over 9,757 salons throughout the world, 7,600 of which being corporately owned locations in North America and the UK, Regis eliminated the LP effort and team a couple of years ago, and it didn't take long for the new senior leadership to recognize the need to rebuild the program and make a sizeable investment. Earlier this year it became such a priority that the CEO and President actually got involved in the search process to the point of literally flying out to personally recruit their new Vice President of Asset Protection, Ken Warfield. With over 8 years of previous salon experience at the 1,200 locations salon chain, Ratner Companies, Ken has been able to quickly identify Regis's exposures, risks, and opportunities. Armed with that information and absolute support and commitment from the CEO and entire senior leadership team, Ken's now in the process of rolling out what might end up being 2014's largest AP roll-out of the year for the entire LP industry. With adding four Director level executives, twelve Regional AP Managers, three Regional Investigators, three Regional Training Managers, four Revenue Analysts, one Manager of Analytics, two AP Coordinators, two AP Analysts, and one Supervisor of Analytics, they've added over 32 new positions and have plans to keep building the team over the next twelve months. With the focus on increasing top line sales and margin, as well as reducing their shrink, this AP group approaches the business rather differently then main stream retail. As a heavy cash business with the stylists driving the business by building their clientele, eliminating or reducing the exposures has a direct and more immediate visible impact on top line sales. Given that awareness, knowledge, and Ken's background, couple that with the new CEO's support, and what you've got is an AP program that is literally in a great position to truly make a huge impact on a retailer who had just a short time ago wiped out the entire effort. And at a time when store closings are at the top of the news it's great to see a growth opportunity in the AP industry. We at the Daily wish Ken and his entire team the best of luck and look forward to following this story for the whole industry to see how an AP team can truly make a difference.

If you think it's tough keeping a top job in LP - Just think about the new CEO job in an Omni world - Here's a story on their talent shortage  'Big Retailers Find It Hard Shopping for a CEO' Target, J.C. Penney, American Eagle Outfitters on the Hunt for New Chiefs. A handful of others are also on the hunt for chief executives. The turnover at the top—and in some cases the extended searches for replacements—are further evidence of the pressure on an industry where once successful models are out of step with Americans' new shopping habits. Target signaled its appetite for change by saying it would look outside the company and even outside the industry for candidates who can transform the retailer. It was a remarkable statement for a corporation that has developed all of its leaders internally for 112 years. Finding candidates who can navigate the threats posed by online retailers and resolutely frugal shoppers isn't easy. "There are not a lot of sitting CEO candidates who have had extensive experience managing both brick and mortar and online, the number of retailers seeking new leaders "is the most we have seen in five years.'' The challenges at Target reflect a structural change in American retail, with traffic at brick and mortar stores in what may be permanent decline as shopping moves online. Teen retailers like American Eagle have been hammered by the rise of cheap, "fast fashion" chains like Forever 21 Inc. and Swedish retailer Hennes & Mauritz AB, known as H&M. Robert Hanson, CEO of American Eagle, left in January as the teen-apparel chain struggled with the intensely competitive environment. Sales in the year that ended Feb. 1 fell 5%. Meanwhile, rival Abercrombie & Fitch Co. is hunting for two brand presidents who might be able to ascend to the top office eventually. The cautionary tale with transformative retail CEOs is J.C. Penney. There isn't a deep bench of executives who have good track records leading major retailers, so some companies have turned to foreign candidates and executives in other industries, like travel and consumer goods. Best Buy hired Hubert Joly, a retail industry novice, as CEO. Toys "R" Us Inc. turned to Antonio Urcelay, head of the company's European operations, for the CEO job last year after an eight-month search. "The half-life of retail leadership has diminished," said Mark Cohen, former chief executive of Sears Canada. Editors note: The bottom line is the retail industry is changing more now then ever before at every level and now every leader in every discipline is expected to not only embrace the online business but to master it as well. So the line that's separated LP from IT Security in the past is disappearing and the expectations are becoming that the senior leadership team is as seamless in their abilities to manage the Omni world as the stores are to manage the omni-consumer. And the question then becomes as an Asset Protection leader how are you positioning yourself and your team to be able to maximize your deliverables and your impact in an omni-business. Because if you want to stay at the senior table you've got to be able add value to the online business. (Source wsj.com)

EMV Migration Means Card Not-Present Fraud is on Deck for Issuers  It’s certainly happening in Europe, where CNP fraud surged more than 21 percent in 2012. Of course, fraudulent online, mail order and telephone transactions posed a significant and growing threat long before the EMV standard began to take hold around the developed world. Today’s CNP fraudsters aren’t exactly on the cusp of a new trend; their tactics have been effective for decades. CNP fraud makes up 16% of the entire U.S. card fraud picture today, which resulted in more than $5.3 billion in losses in 2013. Much of the CNP fraud growth is fueled by consumer comfort with online transactions. As well, the development of several new payments tools has made electronic transactions so simple they become almost carefree. By 2017, U.S. consumers are expected to spend more than $430 billion on e-commerce transactions. With CNP fraud running at about 1% of e-commerce revenue, we can expect to see losses sore over the next three years—unless the industry pulls together an effective CNP fraud loss solution. (Source paymentssource.com)

Apple drops opposition to "kill switch" and post detailed Wed page: Store Data Is Available to Law Enforcement for Investigations  The company has posted a detailed Web page explaining to law enforcement what investigative information it can provide, and the procedures required for obtaining it. The page reveals exactly what data is available from retail store purchase transactions, and confirms that store surveillance video is generally available only for 30 days. It also covers emergency disclosures of customer information, records preservation requests and extracting data from passcode-locked iPhones. Apple requires a subpoena or search warrant to obtain information about store purchases, including the type of card associated with a particular purchase, name of the purchaser, email address, date/time of the transaction, amount of the transaction, and store location. Requests for videos can be made directly with a store’s manager, Apple said. See the details of the page here. (Source ifoapplestore.com)

Journal of Commerce reports global cargo theft resulted in losses of $22.4B worldwide in 2013  and remains a huge challenge for global importers and transportation companies, especially those with high-value and liquid goods. Check out the JOC’s global infographic and full article by clicking the image below:



 

Retailers Experience Rash of Skimming Incidents in Florida - NACS recommends using security tape to discourage pump tampering  In recent weeks, both Shell and Hess have reported credit card skimming devices at Florida gas stations, WPTV reports. According to the U.S. Secret Service, more than 130 cases have been reported in the state over the past three years. "They are gaining access inside the pump,” said John Joyce, the Special Agent in Charge of the Tampa office of the U.S. Secret Service. Skimming devices are small and fit easily inside gasoline pumps. “It still lets the transaction go through but it captures the credit card information,” he said. One way gasoline stations can protect their customers from this type of fraud is to use security tape over the door of the pump’s credit card reader. That allows an employee or customer to see right away if the tape is secure. (Source nacsonline.com)

Survey: 25 Percent of Breaches Go Undetected for More Than 24 Hours

Up in Smoke: How Marijuana Shops in Colorado Are Protecting Themselves From Losses  The real issue? Banks cannot legally perform transactions with businesses that are associated with the Schedule I substances. Some banks are willing to still do business with marijuana dispensaries on a very tentative basis under the store owner's name. But there's always a good chance those accounts may be abruptly shuttered if compliance investigations occur. With nowhere to put their money, retail marijuana shops in Colorado are restricted to operating solely with cash. This leaves business owners to fend for themselves as they attempt to protect their businesses, their earnings and, of course, their employees. "We think that this issue needs to be solved now that marijuana is legal in Colorado," says Amanda Averch, director of communications for the Colorado Bankers Association. "In the current state of affairs, these businesses are a public safety affair given the amount of cash in the shops." If nothing else, trying to avoid being an attractive target to would-be robbers and thieves costs money. While Fox does not know the exact amount, she estimates that her company spends roughly $5,000 to $10,000 a month on security alone, and that number is only going to increase. Forty cameras cover 10,000 square feet of selling space and guards are at the front entrance checking ID's of every customer. All guards have extensive backgrounds and normally are ex-military. "I think we're really impervious to robbery because we have so many people on site at all hours of the day and night, and they're in multiple locations throughout the facility," says Fox. "There are cameras watching [both buildings on the store's grounds] so there's always a lot of communication. Everybody has radios, so if something were to happen, the police would be notified immediately." As for the guards themselves, they are currently armed with "almost lethal tasers," though none of them are armed with guns at the moment. But it won't stay that way for long. We are changing that; all of our security guards will have guns," says Fox when asked about plans for the future. Moving the money is the trick... (Source cio.com)

April Same Store Sales Results

Cato up 18%
L Brands up 8%
McDonald's up 1.2% globally
The Buckle up 0.8% with net sales up 2.4%
Fred's down 2.3% with total sales down 1.6%

Quarterly Same Store Sales Results

L Brands Q1 up 2% with net sales up 5%
Wendy's Q1 corporate stores up 1.3% with sales down after closing 418 stores ly
Weis Markets Q1 down 1.3% with sales up 0.6%
Roundy's Q1 down 5.2% with net sales up 1.9%

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Stuart Levine, CEO of The Zellman Group, speaking at NRF LP Conference  Stuart will be speaking with Johan Gerber, Group Head of Global Fraud for MasterCard International. The session is EMV Impact and an Omni channel Approach to Reducing Fraud. In this session you will gain a greater understanding of the 2015 shift in liability for in-store credit card transactions and see the impact that these changes had on documented fraud in other regions of the world. You will be exposed to the latest technology to protect your company from e-commerce fraud and find out what you can do to get your company ready for change. Don't miss this session on Wednesday June 11, 11:30-12:30pm in room 304-305.

Cyber Insurance Goes Mainstream as Data Security Threats Prevail  Nearly 90 percent of U.S. organizations consider cyber-attacks to be their greatest risk; according to PricewaterhouseCoopers' 2014 Global Economic Crime Survey, U.S. businesses were hit harder financially by cybercrime relative to other countries in recent years: 19 percent of U.S. organizations lost between $50,000 and $1 million, compared with just 8 percent of global respondents. Target's data breach alone resulted in $17 million of net expenses, with $61 million of total expenses partially offset by the recognition of a $44 million insurance receivable. The damage done by just one security breach can bring a small-to-medium-sized enterprise to financial ruin; almost 60 percent of small businesses that are hit by cyber-attacks close within six months of the breach. Cyber insurance has been deemed the answer to business continuity plans because it assists them in preserving their current financial position in lieu of a cyber-attack by reducing the financial losses with regard to cyber extortion, public relations to repair the insured's reputation, and expenses occurred by violation of consumer privacy protection laws. (Source prnewswire.com)

Apple Jumps to Second Place in Online Retail

"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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Target Says Man Used Fraudulent Card In Texas - Police back off original claim he was involved in Target breach - as one industry source mistakenly reported  A Texas police department backtracked on claims it made earlier that it had arrested a man believed to be linked to the massive Target data breach, issuing a statement that said "it is not believed he was responsible" for the information heist. "While it was initially suspected that Guo Xing Chen's activities could have somehow been connected to the larger Target credit breach, at this time there is no indication where he obtained the fraudulent card information," the statement said. "It is not believed he was responsible for the initiation of the breach at Target.​" The felony criminal complaint and affidavit asserts that police arrested Chen after being called to a Target store in Georgetown, Texas, on a report that a man had used a stolen credit or debit card to purchase gift cards. It said officers learned Chen had an outstanding arrest warrant from Arkansas involving fraudulent use or possession of identifying information. In responding to the call from the Target store, officers were told "the same subject had used several stolen credit/debit cards the previous day at a Target store in nearby Temple,'' Texas, another 40 miles away.  (Source usatoday.com)

Polo Ralph Lauren employee busted for $41,000 in voiding sales and fraudulent refunds at Tanger Outlet in Gonzales, LA  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. 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. Investigators added the two employees stated Pack showed them how to steal from Polo. (Source wafb.com)

Henrico, VA Employee Killed in Jewelry Store Robbery  Richmond Police are searching for the person who shot and killed a clerk during a robbery at a downtown jewelry store on Monday afternoon. Around 4 p.m. on May 5, officers were called to Victoria Jewelers at 509 E. Broad St. for a report of a person down. Police arrived on scene to find a male employee dead from an apparent gunshot wound and believe he was killed during an armed robbery. On Tuesday, Richmond Police identified the victim as 29-year-old Muhammad H. Baig. (Source wric.com)

Albany, GA Police want wall-busting burglars
Albany Police are warning businesses about an uptick in smash and grab burglaries. Crooks hit at least seven businesses just Monday and Tuesday. They hammered holes into walls of several of those businesses. Albany Police and obviously the business owners and managers involved are very concerned by this wave of smash and grab business burglaries and they are asking the community to help stop them. Police spotted the two holes in the wall at the Enmark Store on Clark Avenue about 4:15 Tuesday morning. Investigators say two crooks used large hammers to pound the two holes, but both times they hit pipes and electrical wiring inside the wall that stopped them. (Source walb.com)

Walgreen’s Shoplifter in Critical condition following a Taser Shock from Chicago Police  Dominique Franklin was charged with two counts of resisting a peace officer and a one felony count of retail theft. Franklin was taken to Northwestern Memorial Hospital early Wednesday morning after hitting his head on a light pole after officers used a Taser on him. Authorities said Franklin was running away after stealing from a Walgreens store on North Wells. (Source nbcchicago.com)

Over $75,000 of Jewelry stolen during an Armed Robbery of Kay Jewelers in the Folsom Premium Outlet, Folsom, CA  The lone gunman was only in the store for a minute, ordering the sales staff to the floor as he emptied the Diamond Fashion showcase into his backpack. The incident occured at 6pm, no one was injured during the incident.

Bank ATM skimmer busted in Evesham, N.J.

Man charged with 7 Subway robberies in Columbia, Md.

Great Falls, MO Man arrested for the theft of 3 Hot Tubs

Robberies and Burglaries

Advance Auto Parts – Milwaukee, WI – Armed Robbery – ATF offers reward
Big Horn Market – Lynchburg, VA – Robbery – employee arrested
Big Mans Party – Grand Rapids, MI – Armed Robbery
Diamond Shamrock - Colorado Springs, CO - Armed Robbery
Gate – Jacksonville, FL – Armed Robbery
H&S 98 Cent – East Hollywood, CA – Homicide/ Armed Robbery –store owner was killed
Kay Jewelers - Bluffton, SC - Armed Robbery  - 2 nearby schools locked down
Kings Pharmacy – Wilmington, NC – Armed Robbery
Mayfair Nail Salon - Philadelphia, PA - Armed Robbery - video released
Metro PCS – Roosevelt, NY – Armed Robbery – suspect had a stun gun
Texaco – Terrebonne Parish, LA – Armed Robbery – suspect in custody
Valero – San Antonio, TX – Armed Robbery – suspect in custody
Walgreens - St. Cloud, FL - Armed Robbery - suspect arrested
7-Eleven - Gaithersburg, MD - Armed Robbery - suspect arrested

7 Eleven – Baltimore, MD – Armed Robbery – suspect pleads guilty

 

ORC News
 
7-Eleven store manager busted stealing $20,000 in gasoline scheme with male accomplice in Brownsville, TX  A scheme to steal thousands of dollars worth of gasoline has ended with two men behind bars in Brownsville. Cameron County District Attorney's Office investigators arrested Larry Muñoz and Cesar Augusto Rodriguez on Wednesday. Investigators allegedly watched as Muñoz allegedly provided Rodriguez with $244 dollars worth of gasoline. Authorities believe that more than $20,000 dollars worth of gasoline has been stolen from the store over the past few months. (Source valleycentral.com)

Three face charges in South Florida organized theft ring
Members of what detectives call an organized theft ring were arrested this week, accused of stealing from Targets, Walmarts, Best Buys and other stores throughout South Florida. Justin Noel McCommon, 32, of Sunrise, is accused of stealing video cameras, headphones, digital cameras and other electronics mostly from the Target Superstore at 3599 W. Hillsboro Blvd. in Deerfield Beach, according to several arrest reports. The three men have been linked to thefts at stores in Fort Lauderdale, Hollywood, Coconut Creek, Wilton Manors, Deerfield Beach and Delray Beach. We are contacting other districts through the Broward Sheriff's Office to find other cities that have been victimized but at this time we know that Mr. McCommon, Mr. Hansen and Miranti are involved," said Detective Jason Dorsett with the BSO Burglary Apprehension Team. On Monday, the group stuffed electronics into a Reebok duffel bag in the Target store at 1200 S. Federal Hwy. in Deerfield Beach, but they left empty-handed, detectives said. Security personnel recovered the merchandise and alerted other stores in the area, investigators said.Later that day, the suspects went to the Target Superstore on Hillsboro Boulevard and stole several Go Pro video cameras worth about $400 each and nine digital cameras worth an estimated $1,350 combined, according to the police reports. Target security officials were waiting for them and called the Broward Sheriff's Office. (Source sun-sentinel.com)

Second Arrest Made in Organized Retail Theft Scheme in College Station, TX  College Station Police made a second arrest Tuesday in connection with six thefts over a five week period during beginning January 19. Twenty-five-year-old Stephanie Rivera of Bryan is out of jail on bond, charged with organized retail theft. Police said her accomplice, 38-year-old Stephen Peterson was able to bypass security at the Target on Texas Avenue by removing a sensor called “spider wrap.” Lieutenant Chuck Fleeger said the specialized key used to defeat the security measure allowed them to elevate the charge from a state jail felony to a third degree. Police reports value the stolen merchandise at nearly $1,200, over half of which was sold to the nearby Hastings for less than $200. Peterson was arrested April 24 on the same charges and posted bond the next day. (Source wtaw.com)

West York Borough, PA Police seek men in “distraction” theft ring  West York Borough Police are on the lookout for three men wanted for their involvement in a multi-state commercial distraction theft ring. The trio were charged in April 2013 for their roles in two separate distraction thefts in the borough. The first took place on December 28, 2012 at the Giant Foods Store. Once suspect distracted a clerk, another acted as a lookout while the third broke into the store office and took cash. The second incident happened on April 28, 2012 at Smokers Outlet. Two suspects distracted the clerk, while two more acted as lookouts and a another entered the office, removed a safe and a large sum of cash from the store. After an extensive investigation, several of the suspects were identified and charged. Borough police also identified at least 8 people that have been in the group, that have committed several similar style thefts throughout Pennsylvania, Maryland, Virginia, and West Virginia all within the last eight years. (Source fox 43.com)

Organized Retail Theft Videos from Congressional Testimony and other sources
Check out these various videos on the growth of organized retail crime, how to prevent and mitigate the North American problem, and how retailers are partnering with investigators throughout the United States:

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5 Ways Psych 101 Can Help You Build Stronger Teams  Did you pay attention in this college class? According to this basic psychology principle, Maslow's Hierarchy of Needs, people make fundamental decisions based on what they need, and they can't move up the pyramid until those needs are met. Use this same principle when hiring, or keeping your employees, and see how it helps. (Top to bottom)

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Tip of the Day
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Always doing what's right for the industry, for your company and for yourself is obviously what everyone wants to do every day. However at times the three objectives may be at odds with each other and the balancing act is what you have to live with at 2 a.m. when you're staring at the ceiling alone. In the beginning it's easy because one doesn't yet understand the bigger picture and how your actions impacts not just your career but also the people around you. But as you progress, or just get older, you begin to realize that you're a part of a bigger industry and that your actions and decisions are impacting the company's and people you're working with. Thus you begin to face the ultimate leaders dichotomy - making the decisions that are right for your company and role but are not viewed by your colleagues as what's right for the people. And then, fueled by those claiming to be industry saviors, you face, or should I say you hear behind your back, the criticisms. All the while knowing that those same executives would be forced to do what you did if they were the ones responsible for making those same decisions. At the end of the day it's all about doing what's right for your business because quite frankly if you don't you won't even be in a position to do anything at all for your industry or for yourself.

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