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June 27, 2014

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News Brief
Sponsored by WG Security Products, Inc.

David Johnston was named Senior Director of Loss Prevention & Corporate Security for Dunkin' Brands Group Inc.  David was the previous Director, Business Development for LP Innovations, Inc for over eight years before taking on this new role. He was also the Regional Investigator for J. Baker, Inc., and the Internal Investigator for Jordan Marsh Company. David earned his Bachelors of Arts degree in Criminal Justice from University of Massachusetts at Lowell. Congratulations David!

1.2 Million Shoplifters and Dishonest Employees apprehended in 2013  Almost 1.2 million shoplifters and dishonest employees were apprehended in 2013 by just 23 large retailers who recovered over $199 million from these thieves, according to the 26th Annual Retail Theft Survey conducted by Jack L. Hayes International, the leading loss prevention and inventory shrinkage control consulting firm. “In 2013, the number of apprehensions and recovery dollars were up for both shoplifters and dishonest employees. For shoplifting, the apprehensions were up 2.5% and the recovery dollars 4.5%; and for dishonest employees the apprehensions were up 6.5% and 2.5% for recovery dollars", said Mark R. Doyle, President of Jack L. Hayes International. "What is also of importance is these increases follow similar increases reported the previous two years!" Mr. Doyle added, "Retail theft is a serious problem which is stealing retailers' profits, and causing consumers to pay higher prices to help offset these losses." For full survey results visit our website at: www.hayesinternational.com

Watchdog group blasts Google for ads tied to credit card fraud  The Digital Citizens Alliance says it found thousands of search results on YouTube.com providing information on how to obtain stolen credit card account numbers. Google says it has “stringent” ad guidelines and removes “millions” of videos from YouTube every year that violate its policies. Theft of credit card account information is making many consumers reluctant to shop online, according to new research commissioned by Digital Citizens Alliance. At the same time, the Internet watchdog group says online search leader Google Inc. is profiting from ads that offer to sell stolen credit card data. The alliance, a nonprofit organization dedicated to educating the public and government officials on Internet-based threats to payment security and other matters, says it conducted searches earlier this month on YouTube.com that showed thousands of videos in search results “that could lead” to sellers of stolen credit card data. (Source internetretailer.com)

Whoever came up with the phrase "the lazy days of summer" never worked on RILA's Operations Team!  In a letter from Lisa LaBruno, RILA's Sr. VP Retail Operations, she outlined all the exciting upcoming committee meetings and RILA's Summer Asset Protection Webinar Series that the operations team has been working on so diligently. This week RILA's Horizons Committee gathered at Gap Inc.'s headquarters in San Francisco for a two-day event focused on identifying innovative, next-generation technology across retail segments. Yesterday, kicked-off RILA's 2014 Summer Asset Protection Webinar Series, showcasing the top breakout sessions from RILA's 2014 Retail Asset Protection Conference held in Indianapolis. Next up: Returns & Return Fraud Investigations, Thursday, July 17, at 1:00 p.m. EDT. The team has also been working on planning their fall AP Leaders Council meeting to be held September 23 and 24 in Savannah, Georgia. They've also been busy making plans for RILA's Workplace Safety Committee meeting to be held September 9 and 10. Click here to read Lisa's entire letter.

NRF hails Obama’s Supreme Court setback
Executive authority suffered a blow this week when the U.S. Supreme Court sided with Pepsi distributor Noel Canning in a dispute over president Barack Obama’s use of an arcane “recess appointments” clause to load the National Labor Relations Board with pro-union choices. “The Supreme Court decision demonstrates that President Obama seriously erred in his attempt to circumvent Congress when he packed the NLRB with pro-union advocates. The court rightfully defended and protected the constitutional role of the U.S. Senate to provide advice and consent on executive appointments,” NRF SVP of government relations David French said in a statement. “While the decision does not affect the current composition of the NLRB since new board members have been seated with Senate consent, it does invalidate several important board decisions that will now have to be considered again by the new board.” (Source retailingtoday.com)

Dollar General CEO Announces Retirement Plans  Dreiling has served as CEO since January 2008 and was named chairman of the Board in December 2008. Under his leadership, the Company's annual sales have increased more than 80 percent to $17.5 billion in 2013 and store count has increased by 38 percent to more than 11,000 stores in 40 states. (Source businesswire.com)

Survey: Screening uncovers resume lies
More than nine-in-10 (93%) retailers who have conducted background screening of job applicants have discovered lies on resumes. According to the 2014 HireRight Employee Screening Benchmark Report, 71% of retailers said background screening uncovers issues that would not have been otherwise found. Retail survey respondents said better employees are the number one benefit of background screening. In addition, 49% said more consistent safety and security is a key benefit. Thirty-nine percent of retail respondents integrate screening with an applicant tracking system. (Source chainstoreage.com)

CVS's pay structure is questioned
CVS's pay structure is set up to tamp down raises among its higher paid hourly workers regardless of how well they perform, according to a Los Angeles Times report. The same article claims that CEO Larry Merlo makes 422 times that of the median worker at the company, the widest gap in the industry. (Source latimes.com)

Creditor not cutting American Apparel any slack Lion Capital is demanding full repayment of a $10 million loan to American Apparel following CEO Dov Charney's dismissal for cause last week, Lion, a British investment firm co-founded by Lyndon Lea, is informing American Apparel’s board that it won’t grant a waiver request from the retailer to keep the $10 million loan from going into default, said the people, who asked not to be identified because the decision isn’t public. (Source bloomberg.com)

Michaels raises $473 million in IPO
The arts and crafts retailer was looking to raise $500 million in its initial public offering. (Source cnbc.com)

Bitcoin to Get More Attention From U.S. Consumer Bureau  The Government Accountability Office, the investigative arm of Congress, wrote in a confidential report last month that the bureau, created by the 2010 Dodd-Frank financial regulatory overhaul, needed to become more active in developing U.S. digital-currency policies. In a written response, the agency agreed. (Source bloomberg.com)

Philippines destroys $150M in Counterfeit goods

Stalemate Over Garment Factory Safety in Bangladesh 

Russians Shop Less as Ruble Drop Hits Rolex-Selling Airports 

Philip Morris Sees $700 Million Boost From iQOS Smoking Device
 

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Loss Prevention News Network
"Live in Ft. Lauderdale at the NRF Show 2014"


LPNN Quick Take

In this LPNN Quick Take, MCs Amber Virgillo, Brand Strategist, Calibration, LLC and Joe LaRocca, VP & Senior Advisor, Loss Prevention, RetaiLPartners welcome us to the “Live in Ft. Lauderdale” event. They provide some history of the event and discuss the day’s agenda.


Episode Sponsored By:

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Greg DeTardo, President and
Tony Mancino, National Acct. Mgr.


Greg DeTardo, President, NuTech National, and Tony Mancino, National Account Manager, give us an update on where NuTech is, what the organization’s primary focus is on and how they continue to drive value for their clients. Embracing technological change, Greg and Tony discuss NuTech’s “Retail Interactive” business, including NuTech Live Connect – a complete software solution that brings retailers a data connection for all components of alarm data.

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e-commerce
Sponsored by The Zellman Group

Despite Target, Retailers Still Weak On Third-Party Security  The Target beach should have taught companies a lesson about the risks of letting business partners run pell-mell around one's network without paying any mind to their own security posture. However, according to new research from TripWire, at least one-quarter of retailers have not yet learned that lesson. On one end of the spectrum, 12% of retailers who responded say they require third-party partners to pony up regular reports on vulnerability scans on their network and Web applications. On the other end of the spectrum, 26% said, "We don't evaluate the security of our business partners." In fact only 70% of respondents said that the Target breach affected the level of attention that their businesses' executives pay to security. This number was even lower (57%) for online-only retailers. (Source darkreading.com)

Why HCE Is Causing A Revolution In Mobile Payment Security  When considering the security of customer payment credentials, host card emulation (HCE) has caused waves in the industry. Before the advent of HCE, storage models came in two versions; either storing credentials in a specialist security chip [secure element (SE)] in the phone, or using card-on-file credentials in the cloud. The first model effectively turns the phone into a mobile wallet, with the SE performing the same function as the chip on an EMV card. The “cloud” option, however, was simply a case of storing basic payment information, such as card number and expiry date or sort code and account number on the Internet. An exact software representation of the card no longer needs to reside on a physical chip since HCE has come along. This eliminates the need for the previously all-important SE and puts an end to the battle for ownership of it, lowering barriers to market entry for new players. (Source bsminfo.com)

"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
Top 3 Canadian Grocers for 2014 - By the numbers and by actual store visits by a 'Legendary investor'  Legendary investor Peter Lynch said it best: “Visiting stores and testing products is one of the critical elements of the analyst’s job”. With that in mind, what is the one thing we all do every week? We head over to the nearest grocery store and load our shopping cart with the essentials for the coming days. Day in day out, these stores take in a meaningful percentage of our hard-earned cash, so why not try and get some income from this essential service? 1st Place - Metro, 2nd Place - Sobey's owned by Empire Co., and 3rd place - the biggest retailer in Canada - Loblaw Companies. (Source fool.ca)

Hudson's Bay Corp. may sell some stores real estate to fund remodel's & Saks Fifth Avenue's Canadian Entry  HBC owns several massive Canadian flagships, with a combined worth into the hundreds of millions of dollars. Last January it sold its 850,000 square foot Queen Street Toronto flagship (and adjacent office tower) to Cadillac Fairview for $650 million. Cadillac Fairview, in turn, merged Hudson's Bay with the Toronto Eaton Centre, creating Canada's second-largest mall. Saks Fifth Avenue will occupy 150,000 square feet within the Hudson's Bay building as a result, and similar deals could happen in other Canadian cities. (Source retail-insider.com)

U.S. "invasion" causing more heat for Canadian brands - the pressure is on!  Bob Kirke, executive director, Canadian Apparel Federation, said there has been a plateau of U.S. retailers coming into Canada, except on the luxury side, in part because of Target’s costly failure. “We don’t have a marketplace to support that many more stores. Our market is only so big – it’s California,” said Kirke. The entry of Walmart into the Canadian marketplace in 1994 was a seismic shift, said Kirke. In 2004, the elimination of import quotas opened up what had been a restricted market in Canada. After the financial crisis of 2008, which started in the U.S., American retailers began looking to Canada as a source of growth. Harris said Canadian players don’t have the same deep pockets that global companies like H&M have to invest in stores to make sure they keep up with the times. "I believe there are at least three or four retailers who are hanging on by their fingertips and will go out of business after the New Year,” said Harris. “Most of them will survive, but for how long and how profitable will they be? Will they ever be as profitable as they were 20 years ago? Absolutely not.” (Source thestar.com)

Small formats in future for Walmart Canada? - You are where your leader takes you...  With the number of discount stores suitable for conversion dwindling, Walmart is again poised to follow the pattern of growth unfolding in the U.S. where the emphasis increasingly has shifted to smaller stores operating under the banners of Neighborhood Market, Walmart Express and Walmart To Go. The hiring of former Delhaize CEO Dirk Van den Berghe supports the thesis that Canada soon will see the development of alternative formats. None of the stores he led looked anything like the units Walmart operates in Canada which are massive by comparison. Even the company’s traditional Delhaize supermarkets average only about 20,000-sq.-ft., roughly half the size of a typical Walmart Neighborhood Market which is regarded as a small format in the U.S. (Source retailingtoday.com)

DNA could help solve 5-year-old Toronto pharmacy robbery case  Ryan Straker was found guilty Wednesday afternoon in a Jefferson County courtroom of an armed robbery at the Toronto Apothecary Pharmacy in November 2009. He will be sentenced next Tuesday morning. Earlier in the day, after hearing from two expert witnesses with the Bureau of Criminal Investigation, the defense asked the judge to dismiss the aggravated robbery charge, saying the state hadn’t provided enough evidence. Jefferson County Common Pleas Judge David Henderson overruled, partly because of testimony heard Wednesday morning on how DNA from the hood and cuffs of a sweatshirt hit in a DNA database, matching it to Straker. (Source wtov9.com)

The rise of open-air shopping in Canada

Amazon.ca targets the bottom line

Canadian businesses outdo U.S. counterparts in mobile device investments: poll

Bissell Centre Thrift Shoppe in Edmonton - fire causes $950,000 in damages

Vancouver PD raid East Van medical marijuana dispensary 

'Aggressive shoplifter’ goes on violent spree through Osborne Village in Winnipeg

Hawkesbury Canadian Tire employee faces drug, theft charges

Armed robbery at Paulatuk Northern Store was staged: RCMP

 

Big Data
Sponsored by Verint

iBeacon technology coming to a retail store near you  Within the retail sector, iBeacon technology is being applied as a method to overcome the threat of ‘showrooming’, whereby customers visit shops to examine products on the shelves before purchasing them at a lower price online. Several American retailers have so far used iBeacon technology to great success. For example, Macy’s was the first retailer to trial iBeacon technology across its stores in New York and San Francisco. The brand used a mobile app to create ‘ShopBeacons’, enabling Macy’s to track shoppers’ movements throughout the store and produce different offers based on the floor or department the customer is in. When a shopper enters the store, their phone instantly recognises the beacon signal and reminds the shopper to open the mobile app in order to receive walk-in rewards. (Source information-age.com)

CIOs share how their role in retail is changing - just like their LP counterparts  As the pace of innovation quickens and technology evolves ever more rapidly, the job of the retail CIO becomes even more critical to retail organizations, not just as the person who keeps the lights on, but as an integral part of strategic leadership for a retail organization. Hear from a few retail CIOs about their personal experiences – how their jobs have changed over the last few years, and what the next few years will bring. (Source nrf.com)

"Investors Couldn't Care Less About Data Breaches" 
On May 21, EBay revealed that it had suffered a cyber attack and data security breach, and users’ information—names, account passwords, e-mail addresses, physical addresses, phone numbers, and birth dates—was exposed to hackers. While security experts, the news media, and actual EBay users may have all been alarmed, the stock investors weren’t. EBay’s stock finished trading virtually unchanged that day, dropping all of 8 pennies to $51.88. That’s been the trend among companies that have suffered cyber attacks—the stock market practically ignores them. (Source businessweek.com)

Civil liberties groups reject biometric/facial recognition “best practices”

State of Montana sends out 1.3 million data breach notifications
 

Loss Prevention Research Council
All Star Member Program
The Loss Prevention Research Council (LPRC) recently kicked off its All-Star Member program. Each month, one retail and one solutions partner will be selected and honored for their hard work and exemplary contributions to the LPRC. Winning members will be featured in a short spotlight vignette each month that the LPRC shares on its social media and email outlets, honoring the winners while offering them well deserved notoriety and exposure to their peers.

June 2014 All-Star Member Selections:

Retail Partner Winner:
Lance Williams, Big Lots


Lance Williams is the Director of Asset Protection at Big Lots Stores Inc., a leading US broadline retailer, and a valuable LPRC member. We sat down with Lance to gain insight on his experiences:

LPRC: Lance, please describe what your company does in two sentences.

LW: As North America's largest broadline closeout retailer, Big Lots has the power to negotiate the best deals in the business. We sell a broad range of high-quality, brand-name products, including consumables, seasonal items, furniture, housewares, toys, electronics, home decor, tools and gifts.

LPRC: One tip to help other members like you get more out of their LPRC membership?

LW: Get involved. Only through collaboration and sharing of knowledge does the LPRC, solution providers and member retailers flourish. We make it a team priority to stay connected with, and participate in, the various working groups within the LPRC. Our view is that you get out of it what you put in!

LPRC: What’s your ideal lunch partner (historical figure, celebrity, etc.)?

LW: As a student of history I'd love to have lunch with Abraham Lincoln. Just to understand how he persevered through all of the trials in his life to become one of the best presidents in history would be fascinating.

Solution Partner Winner:
Robert Bull, Cam Connections


Robert Bull is the President of Cam Connections Inc., a leading LP solution provider, and a valuable LPRC member. We sat down with Robert to gain insight on his experiences:

LPRC: Robert, please describe what your company does in two sentences.

RB: Cam Connections is a full service, high quality Security Systems Integrator in business for more than 15 years. We deliver unmatched security solutions that are expertly tailored to meet the specific needs of each client.

LPRC: One tip to help other members like you get more out of their LPRC membership?

RB: CCI has been working with the LPRC for approximately 5 years and feel very fortunate to be part of the group. The primary reason the LPRC has been beneficial for us is due to our company’s level of involvement. Because of our involvement; the LPRC has given us the engine to design and deploy a variety of products in over 100 locations. Once the research is complete, we are able to give our customers the confidence that the solution they are investing in will have a positive ROI.

LPRC: What’s your ideal lunch partner (historical figure, celebrity, etc.)?

RB: My ideal lunch partner would be my grandfather, Charles Sellards. Unfortunately, he passed when I was very young and I was unable to spend much time with him. I have always heard from my family that I mirror his honesty, integrity, work ethic, and motivation. It would be great to give him a big hug and thank him.

 

Retail Crime News
Sponsored by NuTech National

Fight Breaks Out In TJ Maxx, Ends In Shooting in San Francisco  On Wednesday evening at around 9:20 p.m., a T.J. Maxx shopper was shot just outside the store, following an argument with another customer. According to SFPD, the suspect remains at large. Just what happened inside the store, where the altercation began, is a mystery. CBS SF, which was on the scene last night, called it a “scuffle” that moved from inside the T.J. Maxx at 855 Harrison Street to just outside. Local T.J. Maxx staffers were unable to tell SFist if the men knew one another or what sparked the fight. The victim, who was shot in the torso, was taken to San Francisco General Hospital. He is expected to survive. (Source cbslocal.com)

South Carolina flea market sting nabs 6 for $237,000 in counterfeit merchandise  The Secretary of State’s Office partnered with the Lexington County Sheriff’s Department and the Homeland Security to conduct a sting at the Metro Flea Market on Highway 1/Augusta Road in West Columbia on Wednesday, that resulted in the confiscation of nearly $237,000 in counterfeit merchandise. Dozens of fake brands were among those found, including Burberry, Chanel, Coach and Gucci. According to SC Secretary of State, the suspects were all charged with the illegal distribution of counterfeit goods and may face fines up to $20,000 and/or five years in prison. (Source wbtw.com)

Where to Spot the Fakes: Washington DC's Crime Museum  The museum just launched a new permanent exhibit featuring a wide array of counterfeit goods from the black market—gathered up with the help of several trade groups. The Louis Vuitton bags? Fake. The Les Paul guitars? Also fake. In fact, everything in the Crime Museum’s new exhibit—”Counterfeit Crimes: Are You Part of the Black Market?”—is a totally not-real, fakey-fake-fake counterfeit. Where’d the museum gather all these knockoffs? Easy: A few associations helped collect them. (Source associationsnow.com)

Sprint store Burglary suspect arrested in Greenville, NC

Man convicted after setting clothes on fire at Burlington Coat Factory

Boston Store Loss Prevention employees in Racine, WI assaulted during apprehension

Jackson County, IN man arrested on identity theft charges; charged w/44 felonies

UK: Security guard in collision with car as he attempted to stop shoplifter

Pepper spray can malfunctions during Radio Shack robbery in Taylor, MI

Smash and grab” reported at Radio Shack in Harrison Twp. Ohio

Robberies and Burglaries

Alltown – Stratford, CT - Armed Robbery – may be connected to Cumberland Farms robbery
Approved Cash Advance – Madison, AL – Employee Theft – Employee falsely reported Robbery/ Assault
AT&T – Ellicott City, MD – Armed Robbery -4 suspects charged
Carlson's General - McKean, PA - Burglary – cleaned out cigarette inventory
City Drug – Clearfield, PA – Armed Robbery – man found guilty, 5 to 10 years
CVS – Altoona, PA – Armed Robbery
CVS – Grand Rapids, MI – Armed Robbery
Dale’s Hardware – Fremont, CA - Burglary
Dollar Tree- Salt Lake, UT – Armed Robbery – suspect arrested
EZ Smoke – Wichita, KS - Burglary
K&T – New Orleans, LA – Burglary
Mountaindale – Thurmont, MD – Armed Robbery suspect had BB Gun, clerk wins w/baseball bat
Rutter’s – York, PA – Armed Robbery – suspect arrested
Subway – Colonie, NY- Armed Robbery
Sunoco -North Haven, CT - Armed Robbery
Walgreens – Twin Falls, ID – Armed Robbery – suspect arrested
7-Eleven – Somerset, MA - Armed Robbery
7-Eleven – Elk Grove, IL – Armed Robbery – suspect charged
7-Eleven – Madison, WI – Armed Robbery

 

ORC News
Sponsored by Security Resources

Robbery at high-end SF Union Square shop raises security concerns  A high-end store in San Francisco's Union Square hit by a group of shoplifters that stand out because of their distinctively colorful clothing has raised an alarm among retailers in the neighborhood. Many in San Francisco's Union Square retail community said they want more to be done about the brazen thieves. According to police, a group of five to seven people dressed in brightly colored clothing and head scarves -- mostly women -- hit the Tory Burch store on Maiden Lane last week. Investigators said they ransacked the store, grabbing purses, wallets and handbags. An employee was thrown to the ground trying to stop them. (Source ktvu.com)

Interstate Jewelry Theft Ring busted in Louisville, KY  St. Matthews Police and the Federal Bureau of Investigation arrested a man Thursday in connection with three jewelry store robberies in the Louisville area. Investigators arrested Yussuan Chamizo, 32, at a home in the 3200 block of Chinquapin Lane in Louisville, St. Matthews Police Det. Dennis McDonald said. But more arrests may come. Police are still searching for two other men who teamed with Chamizo in a theft ring to steal jewelry from at least 40 stores in three states. Police said Chamizo and the other two men were responsible for burglaries at Genesis Diamonds in St. Matthews, Macy's in Oxmoor Center and Treasures in Jefferson Mall since the beginning of the year. The most recent of the three burglaries took place at Genesis Diamonds on Shelbyville Road around 1 a.m. Saturday. The thieves got away with about $100,000 of jewelry. (Source wave3.com)

Four People Charged in Theft Ring
Four people have been charged in a theft ring at the Walmart in Quincy, WV. Derrick Walker, 33, of Charleston, Stephanie Woodrum, 27, of Dunbar, Temple Green, 32, of Elkview and Margie Redman, 64, of Elkview were charged with two counts of computer fraud and two counts conspiracy to commit a felony. Walker, Temple and Margie are related. West Virginia State Police said the group was having a 9 year old relative distract clerks at the store while one them stole merchandise. Then, that person would go to the customer service to return it for a merchandise credit as another item was taken. (Source wsaz.com)

FBI Agent to Speak on July 2 in Annapolis, MD on International Organized Crime in the Gem Trade

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Lowe's
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Portland, OR
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United States
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Celine
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Pasadena, CA
Kohl's

 

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How to Spot Your Own Strengths and Weaknesses (Before Your Boss Does)  There are so many ways to find out how well you're doing at your job, most of them are all around you. Look for these indicators to help you find out which skills are solid and which ones may need some work. (Repeat mistakes?)

Why You Should Never Cross Your Arms Again  Body language is more innate for us than language or facial expressions, but it's important to remember that our nonverbal communication tightly governs how people think or feel about us. The next time you go to strike that pose, think of these things first. (Just smile)

Why Venting About Work Frustrations Actually Makes You Angrier  The next time you are ready to vent to a colleague or co-worker, think about this first: you are not helping the situation, you're just making your anger worse! Instead of rushing to talk to someone, try these three ideas to help release your anger. (Timeout)

Why You're More Likely to Lie, Cheat and Steal in the Afternoon  Want an honest answer from someone? You better ask them first thing in the morning. A new study suggests that people were more likely to engage in unethical behaviors in the afternoon, when your mental force is weaker. (Fight temptation)

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Repetition is one of the keys to success. Developing and evolving your approach, your message, your actions and processes and focusing on repetitively delivering them, you'll be able to almost transcend your message and focus on its delivery as opposed to its action. We all have core things we do every day and if you can develop repetitive responses, that ensures continuity, you can then begin to master what you do and truly make an impact on the group you're working with.


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