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The D&D Daily Mobile Edition

May 12, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Murray Sinclair was named Director, Asset Protection Field Compliance for Regis Corp.  Congratulations Murray!
Clint Merritte was named Director of Asset Protection Premium Salons, Regis Corp.  Clint was previously the Regional Loss Prevention Manager for CVS Caremark Corporation, and had been with them for over seven years. He was also part of the Loss Prevention Management team at Stop & Shop and Galey and Lord LLC. Congratulations Clint!
Mark Reeves, CFI was named Director  of Loss Prevention/Field Audit - North Zone for Payless ShoeSource.  Congratulations Mark!

 

Should Companies Monitor Their Employees' Social Media?

It's becoming an increasingly important question. The number of people fired over social-media posts is rising, and many employers look closely at a job candidate's online presence before making a decision. A CareerBuilder survey found 39% of employers dig into candidates on social sites, while 43% said they had found something that made them deep-six a candidate—such as posting inappropriate photos or information, or bad-mouthing a former boss. On the flip side, 19% said they found information that sold them on a candidate, such as communication skills or a professional image. Below are arguments for and against monitoring employees' social media activity. Where do you fall on the topic?

The Yes Argument: Keeping an Eye on Employees Helps Companies Protect Themselves:  Management has a right and responsibility to monitor how employees are using social media at all times. If companies don't pay attention, they may end up facing any number of serious problems. It's all too easy for disgruntled or tone-deaf employees to go onto social media and criticize customers, harass subordinates and otherwise misbehave. Sometimes that can bring workplace tensions and complaints, sometimes it can damage a company's reputation in the marketplace, and sometimes it can lead all the way to lawsuits or regulatory action. (And, like email, social-networking records can be subpoenaed and used as evidence.) In fact, a significant chunk of employees acknowledge posting information that they shouldn't. In a recent survey by the ePolicy Institute, 14% of employees admitted to emailing confidential company information to third parties; 6% sent customers' credit-card data and Social Security numbers; and another 6% transmitted patients' electronic protected health information. In many other cases, employees have griped about their company online, or posted joke videos that put it in a bad light and took a considerable amount of damage control to undo. Strict monitoring allows employers to spot potential problems early, get the information offline as quickly as possible and discipline the employees involved.

The No Argument: It Too Often Becomes a Fishing Expedition Unrelated to Work Issues  Employers don't need to practice wall-to-wall monitoring of employees' social media to protect their legitimate interests. Yes, employers have a legal right to monitor employees' conduct on their work computers. But the only time employers have a legal duty to monitor employee communications is when the employer has reason to believe that the employee is engaged in illegal conduct. Many successful companies do exactly that—monitor only when there is a solid reason to suspect employee wrongdoing. These policies have been in place for years and work well. The fact is, the vast majority of what employees do on the Internet has nothing to do with work, takes place during their private lives and is done on their personal computers. It's simply too easy to turn social-media searches into fishing expeditions. Employers are human and cannot avoid being offended by employees' private behavior that goes against their values. Experience shows that employers fire employees for reasons having nothing to do with work. (Source wsj.com)

The Future of Retail Checkout: No Checkout at All? "People have said when checkout is working really well, it will feel like stealing."  "You grab a pair of shoes and you just walk out.” That’s how Michael Chui, a partner at the McKinsey Global Institute, describes the retail-checkout experience in your not-too-distant future. This coming transformation in the way you pay for items in bricks-and-mortar stores will occur through a network of sensors placed strategically around stores, which will enable retailers to recognize you (through your smartphone or other devices) when you walk through the door. Inexpensive sensors also will be attached to (or embedded in) items available for purchase. And the stores will already have your preferred payment information on file, so when you exit the store with your chosen merchandise, you’ll simply be billed automatically, totally skipping any traditional checkout experience. Dorf advises merchants to avoid a “stalker” configuration as they deploy these new technologies and adopt a “butler” configuration instead. “The stalker wants something from you and typically is trying to get as much information as possible and wanting to directly impact you.” By contrast, “The butler is kind of always in the background, always helping you, pointing things out that might be of interest, trying to make your life easier.” (Source theatlantic.com)

DSW buys 49.2% stake in Canadian shoe retailer Town Shoes - 182 locations

7-Eleven begins construction of new 300,000-square-foot HQ this summer - operates, franchises or licenses 10,300 stores in North America

Consumer year-over-year spending growth of 4.1% gained momentum in April 2014

Cybercrime boss offers a Ferrari for hacker who dreams up the biggest scam  The leader of a global cybercrime syndicate offered his associates a Ferrari for the hacker who came up with the best scam, according to a senior European security source. The gift – made on a professionally produced video hidden in a dark recess of the internet – formed the basis of a bizarre "employee of the month" competition for the organised crime gang. On the tape, a presenter is pictured in a car showroom alongside a Porsche, a Ferrari and glamorous female assistants who offer the prize for the most successful hacker. Troels Oerting, the head of the European Cybercrime Centre (EC3), said this was a sign of the lengths that organised crime will go to recruit and retain young technological talent. EC3 – the focal point of the EU's fight against cybercrime – said that the agency was seeing 85 per cent of cybercrime activity from Russian-speaking territories, where law enforcement has traditionally found it difficult to prosecute cyber criminals targeting Western countries. (Source independent.co.uk)

N.J. mall evacuated when sound of car fire mistaken for gunshots  Panic ensued at Westfield Garden State Plaza Mall in Paramus, with some taking to Twitter to say a shooting had occurred. A car's battery or fuel tank caught fire and caused a small explosion, creating the noise some people mistook for gunfire, a law enforcement official told CNN. Due to that car fire ... smoke started entering the mall there," Lt. Kenneth R. Ehrenberg of the Paramus Police Department told CNN affiliate WABC. (Source cnn.com)

Quarterly Same Store Sales Results

Tuesday Morning Q3 up 6.4% with net sales up 2.6%
Cache Q1 down 8.9% with net sales down 11%


Last week's most popular news article --

"Departure of Target CEO puts Canadian retreat on table" With 2013 results including a $941M US operating loss in Canada & anticipating a Canadian loss of $314M for 2014 we could see them pull out of Canada  Industry observers suggest that the Minneapolis-based company, which suffered a massive data breach five months ago, needs to look at major changes to its fledgling Canadian stores and possibly close some of them. Some company watchers say Target will have to consider shutting its operations here entirely within the next year or two if their performance doesn’t improve significantly. “It is conceivable that they will close Canada,” Faye Landes, retail analyst at Cowen and Co. in New York, said in an interview. “I assume with a new CEO, everything will be on the table.” And while the spotlight has been on Target’s data breach problem, “the so far very disappointing launch in Canada is the bigger issue at hand,” said Christopher Horvers, retail analyst at JPMorgan. Paul Trussell, retail analyst at Deutsche Bank in New York, said the new CEO will need to re-assess the Canadian business and mull shutting some of its weakest stores. Nine more are planned this year. The new leader will have to rethink the company’s staying in Canada within two years if its performance here doesn’t get much better, Trussell added in an interview. (Source bnn.ca)


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"North America's
Conversion to IP"


Jackie Andersen and Hedgie Bartol of Axis Communications discuss how the conversion from analog to digital video is progressing in North America. As the market leader in network video, Axis has been a driving force behind this shift, paving the way for a more secure, smarter and safer world. Jackie and Hedgie tell us where the technology is going from a surveillance standpoint and how retailers can make the migration. Watch the interview here.

Episode Sponsored By:

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e-commerce
Sponsored by The Zellman Group

Clicks Convert To Bricks: Retail's Channel-Agnostic Future  Current retail sales data shows that the percentage of retail sales placed through e-commerce platforms hovers at around 6 percent for U.S. retailers, however, a new study, “US Retail Ecommerce: 2014 Trends and Forecast,” shows that e-commerce influences a much larger percentage than just 6 percent of sales. The 6 percent of actual e-commerce sales does not factor in how many shoppers use e-commerce platforms for assistance in making shopping decisions. As more consumers shop cross-channels, the lines between e-commerce and in-store commerce are quickly becoming blurred. The report illustrates what analysts have long suggested: clicks convert to brick sales. Measuring direct conversion rates is becoming more complex in the omni-channel shopping environment. The data shows that of the Internet’s 219.4 million users, 196.6 million users reported they planned to shop online in 2014 while 163.2 million users reported they would actually make a completely digital purchase. The disparity between the two numbers shows that the definition of “shopping” online needs to be widened to include those who webroom or shop online and buy in store. A 2013 report released by Accenture indicates that 88 percent of shoppers currently ‘webroom’; this percentage is expected to increase throughout 2014. (Source retailsolutionsonline.com)

E-Commerce Turning to Print to Boost Sales

"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

 

Canadian Push
Sponsored by Vector Security
Target says no intention of slowing down in Canada  Target has no intention of retreating from Canada, according to a memo sent to Target Canada employees. The financial media is reporting we might dial back our Canadian expansion,” reads the employee memo released to the Star. The memo is signed by Kathee Tesija, executive vice president, merchandising and supply chain, for Target. Some have gone so far as to suggest we might close our doors altogether. No doubt, coverage like this creates anxiety for you and your teams. So I thought I’d send a note to put these rumors to rest. We have no intention of slowing down in Canada. It’s all hands on deck to determine the best way to get our business on track.” (Source thestar.com)

Canada's new rules on prepaid cards come into effect  Finance Minister Joe Oliver highlighted the new rules for issuers of prepaid cards during a news conference last week.

• a ban on maintenance fees for the card for at least one year after the card is activated
• a ban on assigning an expiry date to prepaid cards
• a requirement that federally regulated financial institutions disclose a list of all the fees associated with the card in an information box that is printed in a visible location on the card's packaging
• a requirement that all other key information be given to the consumer before the card is issued in a manner that is "clear, simple and not misleading"

The new regulations apply to all federally regulated institutions, including banks, and the Financial Consumer Agency of Canada (FCAC) will be responsible for enforcing compliance with the new rules. And applys to all prepaid cards currently in the market starting last week, regardless of when the cards were purchased. (Source ctvnews.ca)

Canadian Push Casualty - Canadian fashion chain Boutique Jacob 92 stores closing its doors across Canada  The Montreal-based company, which has 92 stores across Canada, will liquidate its inventory in the coming weeks after filing a notice of intention Tuesday to make a proposal to its creditors under the Bankruptcy and Insolvency Act. Jacob’s expiry comes after years of steady penetration into Canada from international cheap chic fashion giants such as Zara, H&M, Forever 21 and Aeropostale, all of whom sell apparel at low price points. (Source financialpost.com)

Calgary counterfeit credit card manufacturing lab found in home - two men busted in elaborate scheme  Calgary police have charged two men in connection with a scheme to make fake credit cards and skim personal information from unsuspecting residents. Police seized credit card skimming equipment, gas pump overlays, hundreds of counterfeit credit cards, drugs, $16,000 in cash, and $20,000 in stolen property. The investigation is ongoing. (Source ctvnews.ca)

Montreal trio face 112 charges for theft, fraud in Toronto; Investigators believe similar incidents also took place in other parts of Ontario, Quebec, B.C.  Three men from Montreal were arrested in Toronto Wednesday after a $200,000 fraud investigation. The men allegedly travelled to Toronto from Montreal on multiple occasions since 2013, according to Toronto police. They allegedly pickpocketed in downtown bars and restaurants, broke into a hotel room, and stole wallets, money and ID cards, police said. They then used the ID information to change PINs and use the stolen cards to purchase high-end items from Toronto stores, police said. The men, aged 27, 32 and 48, were arrested near Queen Street West and James Street. They face 112 fraud- and theft-related charges. Investigators believe similar incidents also took place in Peel Region, Ottawa, Laval, Quebec and Vancouver. (Source cbc.ca)

Study suggests fewer than half of Canadians showrooming

Kobo e-reading company cuts 63 jobs from its Toronto office

American Girl opens first two locations in Canada with 15 more coming

Two Regina convenience stores hit by robbers armed with knives

Arrest made in gift card scam, second suspect still at large in Barrie

Retail Fast Facts: April 2014

Highlights:
• Total monthly retail sales changed by 4.0% over the comparable month last year.
• Total sales excluding food, automotive and gasoline changed by 3.6% over the comparable month last year. Read more. (Source retailcouncil.org)
 

Retail Crime News
Sponsored by NuTech National

Los Angeles Fashion District Merchants Banned, Fined $26M For Selling Counterfeit Goods  Two downtown merchants have been banned and fined $26M, the largest penalty on record, for selling counterfeit goods. They operated T.J. Accessories, a clothing store. They've been convicted of selling counterfeit goods five times and given nine ceases and desist letters advising them to stop. Undercover LAPD investigators coordinated with the FBI recovered nearly 10,500 counterfeit apparel and related items at the store. They also can not operate a business in California related to manufacture, sale or storage of goods commonly counterfeited. (Source cbslocal.com)

46 arrested in raid on counterfeit merchandise warehouse at two flea markets in Boston area  Agents from the Department of Homeland Security and Lawrence police arrested 46 people Saturday afternoon in what an official described as a "huge" law enforcement operation at a warehouse at 468 North Canal St. Today marked the culmination of a long-term investigation. The operation targeted counterfeit merchandise and violations of intellectual property rights," a DHS spokesman said. An official who spoke on the condition of anonymity called it a "huge operation" with a significant amount of evidence to process. He said the investigation had been going on for several months. (Source wcvb.com)

Man pleads guilty to skimming 38,000 credit card numbers from gas pumps in Houston  A California man has pleaded guilty in a Houston-area scam involving skimming devices slipped on gas pumps and data stolen from about 38,000 credit cards. Investigators say Minassian on March 29, 2011, stole thousands of credit card numbers using skimming devices attached to gas pumps at two stations in Harris County. Minassian obtained the numbers without removing the devices and wirelessly uploaded the information to his laptop computer. (Source chron.com)

Shooting in front the Sun Fresh Market in Westport, MO has residents on edge  An overnight double shooting near a popular 24-hour grocery store in Westport has shoppers on edge. KCMO police say it happened in the parking lot of Sun Fresh Market on Mill Street just before 3 o’clock Sunday morning. Dozens of shoppers showed up just hours later. Police say both victims were men in their 20’s who later showed up at area hospitals. One of them was shot in the leg and the other remains in critical condition. Police believe a third person was also involved, but have yet to find him or determine who shot the gun. (Source fox4kc.com)

One Man Killed in Sunday Afternoon Shooting at Vowell's Marketplace, Meridian, MS  The Meridian Police Department says one man has died after being shot in front of a Meridian grocery store on Sunday afternoon. Detective Dareall Thompson said it happened in front of Vowell's Marketplace on North Hills Street a little before 1:00. Thompson says the victim was quickly transported to a Meridian hospital where he was pronounced dead. The MPD says it is unclear what led to the shooting. (Source wtok.com)

Suspected robber surrenders after six hours inside  Denver record store Denver police looked for and talked to a suspected robber for six hours Sunday afternoon before he surrendered to negotiators. The man has not been named. Detective Mary McIver said the man tried to rob the Second Spin record store at 1485 S. Colorado Blvd. at about 2:30 p.m. Police arrived before he could leave the store, and he was trapped inside, although the employees inside were either let go or ran out on their own, she said. (Source denverpost.com)

Armored car guard robber outside Pearland, TX., Walmart

Grab and Run thief hits Kay Jewelers, Friendly Center, Greensboro, NC for a $5599.00 diamond ring

Phoenix Police seeking 3 men for string of armed robberies

Customer Refused Refund now facing Arson & Attempted Murder Charge in Nashville 

Knife pulled on a JC Penney’s Loss Prevention Agent in Eugene, OR 

Walmart shoplifter in Biggs Co., GA holds a knife to the Loss Prevention Agents throat, leads Police on chase 

$100,000 Distraction Theft at jeweler Artisan's Alcove in Cape May, NJ 

Robberies and Burglaries

Circle K - Colorado Springs, CO - Armed Robbery
Cumberland Farms - Westfield, MA - Armed Robbery
Dollar General - Coldiron, KY - Armed Robbery - suspect shot and killed by police
Dollar General - Dirksen, IL – Armed Robbery
Dollar General – Toledo, OH – Armed Robbery
Dollar General – Marietta, GA – Armed Robbery
Dunkin Donuts - South Bend, IN - Armed Robbery
Family Dollar – Buffalo, NY – Armed Robbery – cashier injured
Gulf Express - Springfield, MA - Attempted Robbery - suspects arrested, getaway car destroyed
Kangaroo Express – Newton, NC – Armed Robbery
M&M Grocery – Lexington, KY – Robbery – suspect arrested
Plattekill grocery – Plattekill, NY - Burglary – Father and son arrested
Pit Stop - Otsego Co., FL – Armed Robbery – 3 suspects arrested
Radio Shack - Winston-Salem, NC - Armed Robbery
Rite Aid – Myrtle Beach, SC – Armed Robbery
Valero – Jacksonville, FL - Armed Robbery – 2 arrested
Verizon - Pohatcong Twp., NJ – Burglary
Walgreens - Albuquerque, NM - Armed Robbery
Walgreens - Cuyahoga Falls, OH - Armed Robbery

7-Eleven - Eltham, VA - Armed Robbery - 2 suspects arrested
7-Eleven - Sparks, NV - Armed Robbery

7-Eleven – Smithville, TX – Shooting – 2 killed in gunfire outside the store

 

ORC News
 
Prosecutors in the UK begin to "dismantle the criminal empire built by the UK's most notorious shoplifting gang"  Jean McGovern and Annette Daniel orchestrated high-value stealing sprees across the country, including a 35,000 pound raid on luxury store Harrods. Their faces became so well known to security guards the pair used wigs and hats as disguises, and even covered up with burkhas. Both are behind bars, having been caged last month for targeting Harvey Nichols in Edinburgh and taking designer bags, clothes and make-up. It’s now emerged Crown Office officials have moved against McGovern, 47, and are believed to be using proceeds of crime laws to target her home in the Springburn area of Glasgow. On Friday, the 52-year-old appeared at ­Glasgow Sheriff Court and admitted stealing almost £1000 of clothes from designer shop ­Hollister on October 1 — while she was on bail. Her co-accused, 20-year-old Declan Paxton, from Ruchill, ­Glasgow, also pled guilty to the charge. Sentence was deferred, with ­Daniel remanded in custody and Paxton released on bail. McGovern, due to be released from prison next month, is the cousin of murderer Paul McGovern, 40, and drug dealer Tony McGovern, 35, who was shot dead in 2000. (Source sundaypost.com)

ORC gang of 6 busted hitting Paramus Mall
The mall’s loss prevention officers alerted Paramus Police Officer David Bentacourt to the six last Saturday. Bentacourt found the subjects in the mall’s parking lot entering a Nissan Murano, where he and another officer found fragrance bottles from Jimmy Choo, Gucci, Armani and Coco Chanel, Paramus Police Deputy Chief Robert Guidetti said in a news release. The officers said they also discovered clothing from Burberry, a foil-lined bag, which is commonly used by organized theft crews to steal merchandise without activating alarms, and a stun gun, in the suspects vehicle last Saturday. Virginia Bland, 45, Ashley Davis, 18, Mariah Young, 20, and Khalif McDaniels, 24, all of Newark, were arrested along with Hasonna Porter, 40, of Irvington and Elaine McDaniels, 49, of East Orange. They were charged with possession of stolen property and possession of burglary tools. Porter also was charged with possession of a stun gun. (Source northjersey.com)

Two arrested for ORC in Lewis County, WA.
Aaron E. Kyllonen, 27, of Longview, and Kinzy R. Murray, 19, of Kelso, were both arrested and booked into the Lewis County Jail for suspicion of organized retail theft after they both were caught working together to shoplift from multiple outlet stores on the 100 block of West High Street shortly before 5 p.m. Thursday. (Source chronline.com)

California ORC trio sentenced in theft from Oregon stores  Hitting Nordstrom stores with stolen credit cards a a search of the vehicle and the trios’ hotel room, police reported recovering $20,000 in property, $5,000 to $10,000 in gift cards, $1,500 in cash and more than 100 counterfeit cards. The property reportedly included high-end clothing, money orders and Apple iPads, iPad Minis and iPhones. On April 1, Linda Vongphakdy pleaded guilty to one count of aggravated identity theft and two counts of first-degree theft. On April 2, Matthews pleaded guilty to three counts of aggravated identity theft, one count of aggravated first-degree theft, one count of organized retail theft and two counts of first-degree theft. On May 1, Melissa Vongphakdy pleaded guilty to one count of aggravated identity theft and two counts of first-degree theft. Matthews was sentenced to two years of probation; if Matthews violates probation, he faces two years and four months of prison. Matthews was ordered to pay $1,400 in fines, $929 in attorney’s fees and forfeit all property seized. Linda Vongphakdy was sentenced to 60 days in jail, followed by two years of formal probation. She faces a possible one year and eight months in prison if she violates probation. Linda Vongphakdy was fined $600 and assessed $900 in attorney’s fees. If she returns to California, she is required to meet with an investigator in the Santa Clara County District Attorney’s Office and provide truthful, accurate information, according to Matthew Hall, deputy district attorney for Washington County. Melissa Vongphakdy was sentenced to one year and eight months in prison, followed by two years of post-prison supervision. She was assessed fines and fees. (Source oregonlive.com)

Shoplifting incident leads to police chase three men who had hit Nike Outlet in Sevierville, Tenn.  Officers responded to a call from the Nike Outlet just before 11 a.m. Friday morning, that three men fled the store with bags full of unpaid merchandise. Police saw the suspects' vehicle driving recklessly on the Parkway. At one point an officer, who was standing on a sidewalk along the Parkway, had to get out of the way as the vehicle jumped the curb toward him. Authorities captured the suspects after a brief chase and search. (Source wbir.com)

South Bend man charged in Sam’s Club felony thefts in Hobart  Felony theft charges have been filed against a South Bend man who allegedly stole thousands of dollars worth of merchandise during the winter from the Sam’s Club store on U.S. 30. Clifford D. Bonds, 23, who has three prior felony theft convictions, and an accomplice went to the store Feb. 27 and March 6 and stole computers the first time and flat-screen televisions the second, according to police. Detective James Gonzales said Bonds was observed on surveillance video loading merchandise onto a cart and leaving through an emergency exit where a pickup truck was waiting. Bonds and the driver can be seen loading the stolen goods into the truck. During a continuing education class, Gonzales spoke to a South Bend police detective who was also attending and showed him a photo of the thief. The detective identified Bonds, having dealt with him several times. (Source suntimes.com)

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Murray Sinclair was named Director, Asset Protection Field Compliance for Regis Corp.
Clint Merritte was named Director of Asset Protection Premium Salons, Regis Corp.
Mark Reeves, CFI was named Director of Loss Prevention/Field Audit - North Zone for Payless ShoeSource.
Ken Parsons was promoted to Regional Director of Loss Prevention for Dick's Sporting Goods.
Tameka McCray was named Regional Loss Prevention Manager for Michael Kors.
Brian Starling, CFI was named Regional Loss Prevention Manager for Payless ShoeSource.
Gregory Crossley was named Manager of Loss Prevention and Security - Mariano's for Roundy's Supermarkets, Inc.

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