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News Brief
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Security steps to safeguard shoppers from terrorism

The terrorist atrocities in Manchester and London have put security at the top of the national agenda. But how can shopping centres and retailers protect shoppers?

The breaking news alert was ominous – casualties at the Manchester Arena due to a possible explosion. Within minutes, and with a sickening inevitability, reality dawned: this was no accident.

In the grim aftermath of a terror attack, there are questions to ask. With close surveillance of suspects, how could this have happened? Could more have been done to protect the public that night? And if it can happen at a crowded arena, or at a bustling nightspot such as Borough Market, are other public places, like shopping centres, just as vulnerable?

Sadly, this last question has already been answered. The brutal terrorist attack on the Westgate Mall in Nairobi in 2013 exposed just how vulnerable shoppers and shopping centres can be.

Protecting shopping centres

Indeed, the UK National Counter Terrorism Security Office (NaCTSO), in a comprehensive guidance document for shopping centres, is explicitly clear that malls “are likely to feature in the attack plans of terrorist organisations in the future”.

So with the possibility of further attacks now all too real, what is the latest thinking in shopping centre security? And what do centre managers and occupiers need to know to mitigate the risk?

As times have changed, so has terrorism, says Robert Clark, director of specialist security training company Templewood Training Services. “Now we’re dealing with a very dangerous threat because it’s totally unpredictable; it could be an individual with a knife or an individual who plans to make an improvised explosive device (IED), or a group that is committed and equipped. They used to make demands, now they just want to murder as many people as possible.”

Reacting to new threats

Hammerson portfolio security manager Graham Williams says that recent times have been a learning process for all retail property managers. “It has enabled us to develop mechanisms to rapidly distribute information and intelligence and as a shopping centre ‘community’ we work in a much more collaborative style, acknowledging there are no commercial sensitivities in co-operating to protect everyone coming to our centres.”

Schuh head of store operations Phil Whittle agrees: “It’s all about the training as you don’t know what you’re faced with until you’re in the situation. A bomb attack is very different to armed gunmen,” he says.

Schuh has had a plan in place for the past 18 months, following the attacks in Paris in November 2015. Following the Manchester Arena attack, the training course has been refreshed and redistributed to all of Schuh’s store staff.

The footwear retailer also has a “grab bag” in each store, which provides staff with essentials for emergency situations, including torches, cling film for first aid, and maps of the store.

The big dilemmas

In the aftermath of the Manchester Arena bomb, Brent Cross shopping centre searched every person entering the development and all bins and charging points were removed from the building.

“Anywhere the public gathers in large numbers is a potential target for terrorism and needs to be managed in that way,” says Blight. “But it has to be done in a way that gives people access and freedom to go about their day; it’s got to be commensurate with the threat level. There’s a fine balance.”

Part of this balance is managing the most conspicuous form of protection – security guards.

In its own guidance to shopping centre owners, high street landlords and retailers, Revo says that security officers are “on the one hand, the first and last line of defence from a safety and security perspective, however, on the other hand, are a very valuable customer-facing asset”. retail-week.com

Orlando Rampage
Disgruntled ex-employee kills five and himself in workplace shooting
Five people were shot and killed at an Orlando business on Monday morning by a "disgruntled" former employee who then turned the gun on himself, police said.

Officers responded to a call about an active shooter at Fiamma off Forsyth Road in Orange County, near Full Sail University, just after 8 a.m., Orange County Sheriff Jerry Demings said in a news conference. Deputies arrived two minutes later, where they found three men and a woman dead at the scene. A fifth person, a man, was rushed to the hospital, where he was pronounced dead. Seven people survived the shooting.

Demings said that the alleged shooter, who killed himself, was identified as a 45-year-old man who had been fired from Fiamma Inc., an awning manufacturing company, back in April. The employee had a criminal history "minor in nature," with arrests for possession of marijuana and DUI. Officers had been called to the company back in June 2014 for a "workplace violence incident" in which "he allegedly battled another employee here in the business," Demings said. orlandosentinel.com foxnews.com

Webinar: 'Recognizing Security Blowback'
Active Shooter Prevention and Response and Best Practices
The CIA coined the term “blowback” in 1953, denoting the unintended consequences, side-effects, or suffered repercussions of a covert operation. To the civilians suffering the blowback of covert operations, the effect typically manifests itself as "random" acts of violence without a discernible, direct cause.

With active shooter situations, security professionals can mitigate the event more successfully if they know the circumstances of why an employee or outside party wants to create harm. Thus, blowback is an important and relevant term for security professionals to prevent and respond to active shooters.

Jim Sawyer, Director of Security for Seattle Children’s Hospital, presents this compelling Web Seminar on active shooter prevention. This webinar takes place Tuesday, June 27 at 2 PM ET. Register here.

Police in Kent., Wash., Will No Longer Respond to Non-Verified Business Alarms
Effective June 1, Kent, Washington law enforcement officers are no longer responding to non-verified, nuisance or chronic security alarms at businesses in order to free up officers to deal with crimes across the city, located about 20 miles south of Seattle.

The Kent Police Department says it spends more than five hours per day responding to business alarms, often triggered by employees at opening or closing time, Chief Ken Thomas told the newspaper. Thomas says about 99% of the nearly 3,000 alarm calls the department receives each year turn out to be false. “It’s a waste of resources,” Thomas said. “We spend about $80,000 a year in response to false alarms.”

Police will establish a verified alarm response protocol to other alarms that must meet a certain criteria. Officers will continue responding to high-risk alarms like gun stores or pharmacies. securitysales.com

Whole Foods Market overcharging allegations resurface
On Friday, June 2, the 2nd U.S. Circuit Court of Appeals in New York City ordered Whole Foods Market to face a proposed class-action lawsuit accusing it of overcharging shoppers in New York City. The suit claims the chain overstated the weight of pre-packaged food in its supermarkets, according to Reuters.

The chain underwent an investigation in 2015, accused of routinely overcharging customers on groceries. These inspections dated back to at least 2010.

Lead plaintiff Sean John’s July 2015 complaint alleged that Whole Foods Market Group Inc. overcharged for its prepackaged foods, and John attached a report issued by the New York City Department of Consumer Affairs to support his claims. The report showed that the DCA had tested 80 types of Whole Foods prepackaged goods in the city and found that 89 percent of them were missing more product than is allowed under federal guidelines. chainstoreage.com law360.com

Compliance Officers Less Worried About Liability
Concerns about personal liability have lessened somewhat for compliance professionals but a survey shows they continue to be a big worry for those tasked with handling compliance for their organization. A survey of 137 corporate in-house counsel, compliance professionals and board members worldwide by law firm DLA Piper found 67% of chief compliance officers said they remained at least somewhat concerned about their personal liability, down from 81% in 2016. “The fact that two out of every three respondents remain concerned is significant–and indicates that an evolving compliance landscape, both in the U.S. and abroad, still keeps many executives up at night,” stated the survey report. “It could also indicate a general sense that compliance executives should never rest easy.”

Asked what area of their program was weakest, 46% of compliance officers said monitoring, down from 66% in 2016. Training is another area of focus, as 44% of directors said they have yet to receive training on compliance issues. Eighty-four percent of the compliance people said they had sufficient resources to do their jobs, up from 77% last year - while 38% said they didn’t have enough resources, up from 28% in 2016. wsj.com

Ex-CEO Tells 2nd Circ. Feds Implied Others' Guilt On Him
The former CEO of a defunct vending machine sales company asked the Second Circuit on Wednesday to toss his fraud convictions, because the government improperly implied in its rebuttal argument that he was guilty because eight co-defendants pled guilty, and the judge did not immediately issue a limiting instruction to the jury.

Edward Morris Weaver, the former head of Multivend LLC, was convicted in 2015 of mail fraud, wire fraud, a related conspiracy and making a false statement. Back in 2012, a DOJ indictment said Weaver and a number of employees ran a fraudulent business selling 25-cent candy vending machines as "business opportunities," sometimes for more than $10,000 for 20 to 30 machines, promising owners they could make $800 a day or more in return.

Multivend, which did business as Vendstar, would connect the buyers with "locators" who promised to put the machines in busy areas, not telling them the locators and Vendstar were working together, according to the indictment. law360.com

Melbourne, Australia: Businessman's novel approach to preventing retail crime
A businessman has come up with an innovative way to overcome the recent spike in Melbourne's retail crime and cut costs at the same time. Hari Shotham has a thriving 24-hour convenience store in St Kilda. But he doesn't spend any money paying security or shop staff, unlike the 7/11 next door. Mr Shotham's novel approach to retail: a shop filled with nothing but vending machines. "We want to be a convenience store at a price that people are happy with, as well. We're not here to rip off the customer, we are here to make the customer happy," he told A Current Affair. 9news.com

Security Systems News '20 Under 40' Nomination Form

Central Grocers' $205M Ch. 11 DIP, Sale Plan Approved

Lidl to open 100 supermarkets on the East Coast by Summer 2018

NRF: Father's Day Spending Reaches Record-High of $15.5 Billion


Quarterly Same Store Sales Results
Five Below Q1 comp's up 2.6%; net sales up 20.8%


Last week's #1 article --

Michael Kors closing 100 to 125 stores following 'catastrophic' sales declines

Suspect involved in eBay counterfeit airbags scheme pleads guilty

Vitaliy Fedorchuk, 28, of Antelope, pleaded guilty today to five counts of mail fraud for an international scheme to sell counterfeit airbags via eBay and other internet sales sites, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 23, 2014, and July 27, 2016, Fedorchuk offered for sale airbag modules, covers, and manufacturer emblems at his eBay online store, redbarnautoparts. Fedorchuk falsely advertised that the counterfeit airbags were original equipment from major automobile manufacturers such as Honda, Fiat, Chrysler, Nissan, Toyota, GMC and Ford. During the scheme, Fedorchuk sold hundreds of counterfeit airbags and obtained more than $95,000. Read more here

For further information on PROACT, email inquiries to PROACT@eBay.com.

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Apparel Source Tagging for Today's Retailers

Electronic Article Surveillance (EAS) Source Tagging and EAS Tag Recirculation are playing a large role in the evolution of retail logistics and loss prevention. Retailers realize that in-store tagging is very expensive, time consuming, and highly inefficient, and they are looking toward solutions that move EAS tagging to the most economical place in the logistics chain - out of the store, and back toward where the merchandise is manufactured.

Enterprising early adopters, such as Kohl's, Gap, Inc., Zara and bebe have proven that EAS Tag Recirculation provides important benefits, including:

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● No customer issues with tag pollution, when un-deactivated EAS sewn-in labels set off alarms.
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By implementing EAS Tag Recirculation, retailers achieve higher levels of efficiency and customer satisfaction through this sustainable, innovative growth program spearheaded by their loss prevention department.

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Learn about All-Tag's Exceptional Employees
In this video, learn about All-Tag's community outreach program and how their workers help them with their RF Label manufacturing and tag recirculation business.

Asda reduces workload with Profitect data analytics
Asda is using data analytics to identify a series of patterns to reduce unnecessary information in its weekly reports. The grocer conducts 95 weekly reports, but is working with software company Profitect to reduce the noise in those documents which are not actioned by the business.

"I have a small team of five, and just under 100 pieces of reporting gets circulated around the business - drowning in reports is the position we found ourselves in," said James Newton, insight manager at Asda. "We became leaner in our retail model, but our reporting didn't suit that."

So far the retailer has identified 50 patterns with Profitect to help improve its weekly reporting. One such pattern will reduce the workload involved in price changing by 60%. essentialretail.com

How AI like Machine Learning & Vision Recognition Prevents Fraud
Machine Learning (sometimes called Adaptive Learning) is crucial to the high-risk processing industry’s ability to detect and respond to fraud. Generally speaking, Machine Learning describes a process by which a software model is constructed and vast volumes of data are compared against it. Learning algorithms enable the model to evolve in response to changes in the incoming data.

For example, financial services companies develop Machine Learning models with rules that outline typical fraudulent activity. The software can review data as it comes in and flag patterns that match the fraud model - indicating the transactions should be investigated. As more and more transactions and patterns are examined, the model can develop itself based on learning algorithms.

Such Machine Learning models can also help high-risk payment companies optimize product offerings, detect money laundering schemes, and perform online risk management.

One example of how machine learning can help the high-risk merchant industry combat fraud is Simility’s introduction of a new AI-based fraud prevention platform. The company’s Adpative 3-D Secure software uses Machine Learning to create rule-based models that can evaluate each transaction in real-time. The AI looks at device fingerprinting, behavioral analytics, proxy filtering, and geolocation to identify high risk transactions. And, because of that AI model, Simility is able to ask for secure authentication only for truly high-risk transactions where fraud could be present. This makes the payment process easier for customers, while offering chargeback protection for merchants.

Vision recognition technology is a breed of AI that allows the software to identify objects. In the high-risk payments industry this is particularly applicable to fingerprint or facial recognition as second level authentication methods. The technology enables customers to easily make mobile payments and provides security from fraud at the point of sale. Apple Pay uses this type of AI to secure POS payments by requiring fingerprint ID for each iPhone or iPad transaction. Flint and Square use the technology to allow merchants to accept payments on their mobile - using the phone’s camera and VR capabilities to confirm that the card information being processed is legit. In the high-risk processing world, VR is important because it’s authentication capabilities reduce chargeback rates for companies targeted by fraudsters. pointofsale.com

Using Bitcoin to prevent identity theft
A reaction to the 2008 financial crisis, Bitcoin is a digital-currency scheme designed to wrest control of the monetary system from central banks. With Bitcoin, anyone can mint money, provided he or she can complete a complex computation quickly enough. Through a set of clever protocols, that computational hurdle prevents the system from being co-opted by malicious hackers. Researchers from MIT’s Computer Science and Artificial Intelligence Laboratory presented a new system that uses Bitcoin’s security machinery to defend against online identity theft. The system piggybacks on the digital currency’s security protocols to thwart hijacked servers. homelandsecuritynewswire.com

Wal-Mart invests in VR for HR
Wal-Mart has been testing virtual reality in 31 of its training facilities in recent months and plans to soon expand the program, a spokeswoman for Wal-Mart said in an email to Retail Dive.

On a company blog, Wal-Mart said the technology could be used, among other things, to help prepare employees for busy store conditions, such as during the holiday season and to help associates learn how to execute tasks without disrupting the flow of shopping in stores.

The retailer anticipates it will ultimately use VR to help train some 140,000 associates annually at its employee “academies,” which are expected to number 200 by the end of the year, the Wal-Mart spokeswoman noted. retaildive.com

e-commerce
Sponsored by The Zellman Group

The security shadow over e-commerce
It seems that only a few years ago, consumers just clicked on a link and quickly bought their desired products. That experience has now transformed into a full-fledged shopping phenomenon complete with product research, price comparisons, recommendation reviews, three-dimensional fitting—and this is all before the actual purchase and shipping option selection.

Accommodating customer needs and creating this rich tapestry of virtual merchandise displays requires a variety of functionality. Those new functionalities, however, are not as homegrown as they once were, which presents a bevy of risks to the e-commerce operator.

At one time, 90% of all code executing on a typical website was owned and operated in-house. Today, that figure has almost been completely inverted with at least 78% of code now provided and managed by third parties that deploy their applications outside of the purview of the website operator’s IT, data privacy and security infrastructures. Increasingly, this code is unknown to IT and, therefore, becomes a significant contributor to “digital shadow IT”.

The problem with digital shadow IT is that it is frequently targeted by hackers and cybercriminals who—knowing they can evade detection by the website operator—continuously probe those applications for vulnerabilities to inject malicious code.

Magento’s open source content management system tailored for e-commerce and used by more than 200,000 companies worldwide, was one such example in which cybercriminals in 2015 used malware to infect thousands of domains in a matter of days through third-party extensions.  digitalcommerce360.com

Ex-Exec Pleads Guilty Over E-Commerce Investment Scheme
A former executive of a now-defunct e-commerce company has pled guilty in Florida federal court to a conspiracy charge linked to an alleged scheme that exaggerated his company's value to be worth between $450 million and $540 million despite the business earning little, if any, money.

Terrance F. Taylor, the former executive vice president of finance at Savtira Corp. Inc., copped to a wire fraud conspiracy charge on Wednesday over what prosecutors say was a fraudulent investment ploy based on false company valuations.

Prosecutors charged Taylor and alleged co-conspirator, Timothy Munro Roberts, in September 2015, saying they labeled Savtira as profitable while touting its patents and agreements with nationally known technology firms. The pair claimed Savtira offered a centralized, cloud-based shopping cart platform that could be used by online and traditional retailers during online purchases regardless of the device being used by the buyer, according to the government. In reality, Savtira owned no patents and never had a working product, authorities said. law360.com

McDonald's: 1 in 4 U.S. restaurants will have delivery by end of June

Nearly two-thirds of U.S. internet users visited Amazon in the first quarter

ORC News
Sponsored by NEDAP

Retail Crime News
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Shootings & Deaths

Kissimmee, FL: 2 teenagers die when car plows through strip mall
Two teenagers died late Thursday when a car plowed into a vacant strip mall. At least five people were in the vehicle when it crashed at about 11 p.m. on West Vine Street east of North Thacker Avenue, Kissimmee police Lt. Christopher Succi said. One passenger died at the scene and a second passenger died at a hospital, Succi said. They were identified as Sebastian Suarez-Palacio, 16, and Melanie Peguero. wftv.com

Laredo, TX: Police shootout in Laredo leaves 3 Officers injured, murder suspect dead
Laredo Police PIO Joe Baeza says one of his officers is in critical condition and being treated at a San Antonio hospital after a convenience store shootout with a homicide suspect. Baeza confirms officers were in the area looking for 55-year-old Antonio Gerardo Rodriguez in connection with the murder of Reyna Zamora Gonzalez, 50, who was found dead in her Laredo apartment Friday morning. Officers saw Rodriguez’s vehicle at a Stripes convenience store. Officers approached the suspect and exchanged gunfire. Other officers arrived at the scene also shooting the suspect.  news4sanantonio.com

Live Oak, FL: Walmart Shoplifting suspect dies in high speed crash during Police chase
A Florida shoplifting suspect died in a car crash while fleeing a sheriff’s deputy. The Florida Highway Patrol says 41-year-old Jannie Hodge of Madison was driving faster than 100 miles per hour on Interstate 10 near Live Oak when she lost control of her car and struck a tree. She was thrown from the car and died at the scene. Troopers say the chase began at a Walmart where she tried to ram a Suwannee County sheriff’s deputy’s car with hers. jacksonville.com

Los Angeles, CA: Armed Robber misfires gun at clerk during Metro PCS robbery
Detectives are searching for a robbery suspect who they believe also came close to killing a Boyle Heights Metro PCS employee. Surveillance video shows a hooded robbery suspect hold up his gun...and tries shooting a woman inside a Boyle Heights Metro PCS store Saturday afternoon. "It appears in the video he's shocked by the malfunction," said LAPD officer Steven Juarez. LAPD say a gun misfire is what saved the young workers life. foxla.com

Robberies & Thefts

Update: San Mateo, CA: Police arrest Safeway shoplifter accused of dragging San Mateo Police Officer with car
Officers arrested a woman who allegedly injured a San Mateo police officer last month by dragging him with her vehicle during an alleged robbery at a Safeway grocery store, police said Friday. On Thursday, officers arrested 33-year-old Allisa Thomas. Thomas was witnessed stealing a cart full of alcohol. The officer tried to stop the suspect but as he grabbed her and told her to turn off the vehicle, she allegedly drove away. The officer was allegedly dragged about 35 feet before he let go and fell to the ground. He suffered minor injuries. kron4.com

Lafayette, IN: Why a rash of pharmacy robberies fizzled out
After a rash of drug store robberies in Tippecanoe County, there's been quiet at the pharmacy counter for more than a year. Overall, pharmacy robberies in Indiana fell by 54 percent last year, according to Drug Enforcement Administration statistics. Indiana led the nation in 2015 with 168 pharmacy robberies. In response to the wave of holdups, CVS Health began hiding the sought-after opiates in time-delay safes, allowing more time for police to arrive on scene, said Michael DeAngelis, a spokesperson for CVS Health. jconline.com

Waycross, GA: Ware County Assistant DA arrested after shoplifting from Belk
A Ware County assistant district attorney was arrested Wednesday after she shoplifted $600 worth of clothes from the Belk department store in Waycross, authorities said. Emily Williams was fired the following day, according to the district attorney's office. "The reality, though, is her role in law enforcement, her ability to enforce the law, that's over," said Randy Reep, a local attorney who is unaffiliated. news4jax.com


Vineland, NJ: 2 charged in Armed Robbery at Burger King

Leavenworth, KS: Boa constrictor stolen during pet store burglary

Greensboro, NC: Man charged in string of Drive-Thru Robberies

Kay Jewelers in the Southcenter Mall, Tukwila, WA reported a Grab & Run on 6/1, item valued at $9,339

Counterfeit

Philadelphia, PA: City & Homeland Security investigators seize $300,000 in counterfeit designer clothes
Police raided a local business wheeling out boxes of merchandise they say were all fake. Box, after box, after box all loaded into a big truck parked on North Fifth street Friday as city and federal homeland security investigators raided one of Philadelphia's biggest counterfeit clothing vendors. Only FOX 29 was there as police executed search warrants at "Off the Corner" in the 5500 block of North Fifth. The owner, Hassan Darwich, was charged with selling $300,000 in fake Polo, North Face and True Religion clothing. fox29.com

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