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June 30, 2014

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News Brief
Sponsored by WG Security Products, Inc.

100 Corporate Board Members Meet Over Cybersecurity   After a series of high-profile data breaches and warnings, corporate boards are waking to cyberthreats, grappling with security issues they once relegated to technology experts. Even before hackers stole 40 million credit- and debit-card numbers from Target Corp. stores last year, Wal-Mart directors received frequent rundowns from outside consultants on cyberthreats, including gangs of Russian-speaking hackers who target payment-card data, a person familiar with the meetings said. Nearly 100 board members and top executives met in Chicago for the first cybersecurity summit of the National Association of Corporate Directors. They heard a former official of the Federal Bureau of Investigation and representatives of federal agencies warn that many companies aren't prepared for Internet intruders. Some attendees at the Chicago conference bemoaned their inability to understand their own tech employees. Others worried because bloggers often learn of data breaches before executives at the affected companies. (Source wsj.com)

Anti-Hacking Team Sees 'Red Threat' Unless Companies Share Data - Retailers given incentive to do so 
The five-year-old National Cybersecurity and Communications Integration Center has largely occupied itself monitoring threats to government networks. Now, with backing on Capitol Hill, it is poised to bolster its role as an anti-hacking coordinator between U.S. banks, utilities and other companies operating the networks that millions of Americans use daily. U.S. lawmakers are fast-tracking a measure that would legally protect companies that tell the center and each other about malicious activities on their networks. The legislation is designed to address industry executives’ concerns that disclosing these vulnerabilities could expose them to lawsuits or regulators’ scrutiny, or that certain communications with competitors could invite antitrust actions. (Source bloomberg.com)

New NRF IT Security Council Fighting Data Theft - More than 130 members leading the way  
Shortly before NRF’s BIG Show in January, word started trickling out about a series of data breaches at large retail chains. As the NRF CIO Council met during the BIG Show, technology leaders and experts from many of the nation’s most innovative retailers discussed what they needed to do to get ahead of the situation. NRF and the CIO Council quickly organized a community of retail IT experts. Formed under the leadership of Books-A-Million CIO Cy Fenton, the new NRF IT Security Council is an invitation-only committee made up of retailing’s leading technology security experts. With more than 130 members, the council provides a forum for networking, collaboration and exchange of information, and is tasked with developing industry best practices and key components of an effective security and risk management framework. It also assists NRF as a voice on Capitol Hill to educate lawmakers on what is needed to combat data theft and the resulting fraud that occurs. (Source nrf.com)

Battling Fraud With Phone Location - AT&T, Visa and MasterCard tying purchases to the location of a shopper's smartphone to prevent fraudulent transactions  Banks and card networks like Visa Inc. and MasterCard Inc. are working with wireless carriers to cut down on fraudulent transactions by tying purchases to the location of a shopper’s smartphone. In the next few months, AT&T Inc. will test a service that verifies transactions by using a phone’s whereabouts -- as long as it has customers’ permission. The telecommunications provider is one of several companies, including smaller firms such as Syniverse Technologies LLC and Ondot Systems, developing fraud-detection services based on a simple premise: people who are out shopping normally carry their phones with them. (Source bloomberg.com)

American Apparel Rejected Charney’s Request for Meeting  American Apparel Inc. rejected ousted Chief Executive Officer Dov Charney’s request for a special shareholder meeting as the board adopted a one-year rights plan aimed at preventing him from gaining control of the retailer. (Source bloomberg.com)

Canada’s Supreme Court rules Wal-Mart must compensate workers for store closings  Canada's Supreme Court ruled Friday that Wal-Mart must compensate former workers at a Quebec store that was closed after they voted to become the first Wal-Mart store in North America to unionize. The high court ruled in 2009 that Wal-Mart was entitled to close the store in Jonquiere in 2005, seven months after workers voted to unionize. But the workers filed a new case that said Wal-Mart contravened a section of Quebec labor law, which says working conditions must not be altered in any way, shape or form during a unionization process. The court ruled in a five-to-two decision that the world's largest retailer modified working conditions for the employees without a valid reason when it shut down. The court ruled an arbiter will determine appropriate reparations, possibly with damages and interest. The store never re-opened. The Arkansas-based company opened its Jonquiere store in 2001. In September 2004, the United Food and Commercial Workers Union was certified to represent employees of the store. Wal-Mart closed the store in April 2005, just before an arbitrator was to impose a collective agreement for the 190 recently unionized employees. A spokesman for Wal-Mart Canada said Friday the company will consider its options. (Source yahoo.com)

9 Things You Didn't Know About Wal-Mart
Wal-Mart is an absolute behemoth in the world of retail. It hauls in a massive $405 billion dollars in sales annually. That's more than Kroger, Target, Costco, and Walgreens combined! And the incredible facts don't end there. (Source yahoo.com)

Sobeys to close one B.C. store, another 30 across Western Canada after Safeway acquisition  Grocery giant Sobeys will close around 50 “underperforming” stores across Canada – most of which are in Western Canada – following the completion of its acquisition of Canada Safeway, the company announced June 26. (Source biv.com)

Micros, Elavon partner on integrated payment solution   
Micros Systems Inc. and global payments provider Elavon have integrated their respective gateway and security products to deliver encryption and tokenization for the food and beverage industry, facilitating a secure environment throughout the payment transaction cycle. Integration has been provided for the Micros Payment Gateway and Elavon's Fusebox gateway solution. Benefits of the integration include streamlined PCI compliance, as well as consolidation of multiple interfaces and certifications for electronic payment processing. (Source chainstoreage.com)

WiFi world wide a Big Security Issue
What usually happens is that the criminals establish Wi-Fi hotspots that trick people into thinking they are legitimate public Wi-Fi locations—people take the bait and log on. The crooks can then watch your communications through their Wi-Fi access points, and steal your personal information like passwords and credit card numbers. A computerweekly.com report warns that anything you send via a public Wi-Fi may potentially fall into the hands of fraudsters. (Source information-security-community.com)

FBI warns businesses “Man-in-the-E-Mail” scam escalating; millions have been lost by companies paying fraudulent invoices  The FBI and Internet Crime Complaint Center (IC3) are warning businesses to be on the lookout for growing scam that tricks them into paying invoices from established partners that look legitimate but in fact are fraudulent. The FBI says the scam is a tweak of the timeworn “man-in-the-middle” scam and usually involves chief technology officers, chief financial officers, or comptrollers, receiving an e-mail via their business accounts purportedly from a vendor requesting a wire transfer to a designated bank account, the FBI said. (Source networkworld.com)

Supreme Court to rule on Hobby Lobby case
A majority of Americans (53 percent) do not believe a company should be allowed to exclude contraceptives from its health insurance plan while 35 percent think it should, according to a survey by Reuters/Ipsos. (Source reuters.com)

Finish Line Q1 profit doubles; sales boosted by online and in-store Macy’s shops

Forever 21 to double size of company over next 3 years - 1,200 store goal

ID-theft laws in Arizona may be vulnerable in court

The rise and fall of the shopping mall

Last week's most popular news article --

Realizing the American Apparel Chief Isn’t Wearing Any Clothes  Dov Charney is completely naked. He is dancing in what looks like an office or studio, talking on his cellphone while he jams to “This Must Be the Place” by Talking Heads. Two women are there with him, possibly employees. “I’m dancing right now for Daisy,” Mr. Charney, still the chief executive of American Apparel at the time, announces, glancing at one of the women. The other woman records the entire scene on a mobile phone, and asks him to “shake your booty.” Before the video cuts out, Mr. Charney looks at the camera and says: “Stop it. You’re going to get me in trouble.” Well, it is a little late for that now. Mr. Charney, who founded American Apparel, once an upstart darling retailer, was ousted last week by the company’s board. (Source nytimes.com)

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"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.


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e-commerce
Sponsored by The Zellman Group

Ethical hacking: Getting inside the minds of cyber criminals  Just when you think you've got yourself all covered on the security front, an attack comes out of nowhere and bites you on the arse. You think to yourself: How did I not see that coming? That's where penetration testing, or ethical hacking, comes in. The idea is to get a third party to think (and act) like a hacker to test your organisation's resilience to attack. And the stakes are high, says Hacklabs senior consultant Jody Melbourne. "Nobody is concerned with targeting websites or going after your database -- that's old," Melbourne says. "The real bad guys are trying to steal your IP, your business intelligence or business information. [The criminal] is going after you internal network." A network could be compromised with just $100 worth of innocuous-looking hardware that most employees wouldn't even recognise as a threat. (Source csoonline.com)

Android apps are more likely to produce high-risk transactions than Apple apps  According to a recent study, on Android devices, 0.41% of transactions on mobile web sites were considered high risk and 0.32% of transactions coming from mobile apps. On Apple devices, 0.28% of transactions on mobile web sites were considered high risk and just 0.08% of mobile app transactions. When looking at operating systems, Apple’s iOS has the lowest risk of high-risk transactions with just 3% on the iPhone and 2% on the iPad. Devices using the Android operating system had a 4% risk of fraud, the report found. Devices using Windows, BlackBerry or other operating systems had a 6% risk of fraud. Across Android devices, iPhones and iPads, the most common type of fraud was credit card fraud.  (Source internetretailer.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

 

Retail Crime News
Sponsored by NuTech National

Armed Shoplifting suspect shot dead over a burrito in Centralia, WA  A 43-year-old Centralia man was shot and killed Sunday morning after being confronted by a Centralia Police officer, following a report that the man had shoplifted a burrito from an area store. The officer approached the suspect and when he attempted to place him into custody a fight ensued. The officer, a 15-year veteran of the Centralia Police Department, and also a K-9 officer, deployed his K-9 to assist with the arrest. While fighting with the suspect the officer called for backup. As the fight continued, the suspect attempted to reach into his pocket, but the K-9 grabbed a hold of the suspect’s arm preventing him from pulling his hand from his pocket. The K-9 momentarily released his hold on the suspect. The suspect then put his hand back into his pocket and pulled out a handgun. At this point, the K-9 bit onto the arm of the suspect again and the officer observed the weapon. The officer then drew his duty weapon and fired at least one round striking the suspect. (Source theolympian.com)

Belleville, IL suspect taken into custody after eight hour standoff with SWAT: Armed Robbery of a Title Max Multiple police departments and an armed SWAT truck were outside an apartment complex in Belleville waiting for a suspect in an armed robbery to come out for eight hours on Saturday. Authorities said they tried to catch the man at his apartment and arrived on the scene around 5:30 a.m. Officers on the scene used a PA system and loud alarm sounds before kicking the door down to the suspect's apartment after the eight hour stand off. According to police, the man allegedly walked into a Title Max store on Friday and demanded money from store employees. Police said the suspect displayed a gun during the robbery. (Source kmov.com)

Woman claims Victoria’s Secret store in West County Center Mall, St Louis, MO racially profiled her  Moore also said the manager at the mall apologized for the experience, but defended her associates decision to contact security. Moore contacted Victoria’s Secret’s corporate office who said via a spokesperson that it is their expectation that every customer be treated respectfully and "regret in this case our expectations were not met." (Source kmov.com)

Credit Card Thieves Caught on Tape Using Skimmers in California  A new breed of credit card thieves is stealing unsuspecting customers' credit card information at gas pumps and drive thrus by installing "skimmer" devices that steal a purchaser's data as quickly as one swipe of a credit card. The "old way, they used to come in here with a gun, or they used to break the windows at night when you were gone," said Ahmad Motlagh, a California gas station owner who has been in the business for 33 years. (Source yahoo.com)

Robbers' latest strike at The Jewelry Source in Houston, TX  There's crime alert in north Houston after a group of men have been linked to several armed robberies. Harris County Sheriff's Office investigators said five men, with guns drawn and wearing masks, entered the Jewelry Source store in the in the 1000 block of FM 1960. Before busting the jewelry cases, investigator said some of the men tried to force the employees to one area of the store while the other suspects tried to get into the stores vault. Investigators said the suspects took off with an undetermined amount of jewelry. (Source abc13.com)

Victim's Instagram photo leads to Dollar General Armed Robbery arrests in Douglas, GA  Sheriff investigators say a crime victim’s Instagram account helped them break an armed robbery case wide open. By coincidence, detectives say the victim was following Walker on the social networking site. She didn't know him, but called police immediately after spotting the picture. They tracked the men through social media. Longtime customer Gwendolyn Bridges is stunned at how crooks are showcasing their crimes online. (Source ajc.com)

Walmart hopes new video will nab violent robber in San Diego  Investigators Friday made public surveillance video showing a suspect in two armed robberies at the same Rolando-area Walmart store six months apart. The most recent heist at 3412 College Ave. was about 10 p.m. on May 6, according to police and Crime Stoppers. The suspect approached a cashier, pulled a gun and demanded money -- but fired into the ceiling before the employee could open the cash register, authorities said. He then grabbed money from the register and fled. (Source cbs8.com)

Police search for suspects in Country Club Hills, IL Radio Shack Armed Robbery

Credit-card skimming hits Central Florida gas stations, ATMs

Robberies and Burglaries

Anthropologie – Westport, CT – Armed Robbery – 2 men arrested / police chase
Circle K – O’Fallon, IL – Armed Robbery – suspect charged
CVS – Lincoln, NB – Armed Robbery – threatened with a Possible Bomb
CVS – Bristol Twp, PA – Armed Robbery
CVS – Grand Rapids, MI – Armed Robbery
CVS – Jacksonville, FL – Armed Robbery
CVS – Saratoga Springs, NY – Armed Robbery – suspect arrested
Dollar General – Sarasota Co, FL – Armed Robbery
Fastpac – Wichita Falls, TX – Armed Robbery
Food Land - Philadelphia, PA – Armed Robbery
Guerrero Grocery – Shawano, WI – Armed Robbery – 56 yr old female w/ knife arrested
Kwik Stop – Greensboro, NC – Armed Robbery
Kum and Go – Colorado Springs, CO – Armed Robbery / Standoff w/ Police
MacEdge – Portsmouth, NH – Burglary
Metro PCS – Orlando, FL – Armed Robbery
Mighty Mart – Dickinson, NY – Burglary
MotoMart – Cedar Hill, MO – Armed Robbery
Rite Aid – Visalia, CA – Armed Robbery
S&J Beauty Supply – Philadelphia, PA – Robbery/ Assault – Bleach thrown in employee’s face
Save A Ton – Chattanooga, TN – Armed Robbery/ Shooting – clerk shot
Shop N Go – San Antonio, TX – Armed Robbery/ Shooting – clerk shot, suspect arrested
Sparks – Las Vegas, NV – Armed Robbery
Super Fresh – New Castle, DE – Armed Robbery
Thrift Mart – Houston, TX – Burglary –truck used for smash and grab
Tip Top – San Jose, CA – Robbery – Police id person of interest
Verizon – Centerville, OH – Burglary
7-Eleven – Fort Myers, FL – Armed Robbery

 

ORC News
Sponsored by Security Resources

$1M in stolen cargo merchandise recovered in Toronto  Over $1 million worth of merchandise that was stolen during transportation to various retailers has been recovered, York Regional Police said Friday. Investigators with the auto and cargo theft unit recovered 15 loads of lifted cargo from warehouses in Vaughan and Toronto that had included baby products, barbecues, tools, musical instruments and forklifts. Police said they had been investigating the case since early May after they received a tip about significant losses of goods from trucks. Police also said that most of the goods have been returned to owners. (Source torontosun.com)

Burglary suspect at Jersey City mall was arrested 77 times  A Jersey City man with 77 prior arrests in three states has been charged with burglarizing a Newport Centre Mall store on Thursday night. He is charged with forcing open a rear door at the Loft store at the Jersey City mall about 2:45 a.m. Thursday and taking 29 T-shirts, 29 blouses, 26 skirts, 27 dresses and five jackets with a total value of about $5,300. (Source nj.com)

Sweetwater, FL Officer’s Gun Discharges While Taking Down Alleged Burlington Coat Factory Shoplifters  A Sweetwater officer’s gun went off while trying to apprehend shoplifting subjects at the Dolphin Mall Sunday. According to police, four men were reported shoplifting at the Burlington Coat Factory and when approached about the stolen property, they took off through the mall. Two Sweetwater officers caught up with a suspect, while trying to arrest the man, one of the officer’s guns discharged inside of its holster. The officer was injured, but is in good condition. (Source cbslocal.com)

Target Distribution Center Employee in Tucson arrested for $6500 theft  The Tucson Police Department has arrested a man on suspicion of stealing from the Target Distribution Center. In April, UPS contacted the Target Distribution Center in Tucson and said that several packages had been tampered with. Target investigators and UPS security personnel worked together and found that at least 11 iPads, speakers, headphones, an iPod and a camera, had been stolen from the shipping packages. All the merchandise totaled $6,500. (Source kvoa.com)

3 arrested after robbery and police chase through Lynn, MA  Two men and a woman were arrested Saturday in Lynn after robbing a Radio Shack and leading police on a chase. At about 12:30 p.m., three people allegedly robbed the Radio Shack on State Street armed with weapons and fled the scene. (Source myfoxboston.com)

Four men charged in Louis Vuitton raid in London  A “large quantity of bags and belts” have been recovered by officers following at the raid at the designer’s Sloane Street store in central London on Thursday, a Scotland Yard spokesman said. (Source irishexaminer.com)

Three Women Charged with Theft from Sears Store in Bismarck, ND  Three women face felony charges for taking more than $2,500 in clothes. (Source kxnet.com)

Arrest made in Academy Sports $1000 theft case in north Nashville

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Vendor Spotlight
 

Zellman Fraudnet

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Zellman Fraudnet is feature-rich in technology. With advanced analytics, you have greater insight to detect, identify and stop fraud before it starts. Removing the threat of online fraud allows retailers to focus on growing revenue through higher conversion rates and other initiatives, like adding new products or international expansion.

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How to Help an Underperformer
As a leader, performance is a critical factor, but sometimes you may encounter an employee who isn't performing at the level needed. What do you do about someone who isn't performing up to snuff? Use these tips to stage a productive intervention. (Don't ignore it)


Simple Ways to Increase Confidence and Overcome Fear of Rejection  Confidence is key to getting what you want out of life and at work, however we're not born with confidence, we acquire it. Listen to this interview and find out how to turn that fear into a confident mindset. (Achieve greatness)

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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)

The Two-Step Process for Getting Your To-Do List Down to Zero  This Senior Vice President for Cold Stone Creamery has some great advice on holding yourself accountable while at work. Kate Unger approaches each day with two rules and watches her productivity increase as a result. ("O-H-I-O rule")

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Tip of the Day
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Competition is a good thing because it's what has made America so strong. Whether it's competition between companies or between executives, it has a tendency to bring out the best in most people and in most organizations. It leads to innovation, invention, growth and it instills a sense of competition in everything we do that tends to motivate and challenge people to reach beyond their own self-definitions of what they can do or can't do. Without it, progress, which is slow to begin with, would be stifled but, with it, you have inspiration and purpose. The whole key is how you compete in the open market, whether as a company or as an executive, reflecting professional standards and a code of ethics is critical even when your competition isn't. The #1 rule should always be never speak ill of the competition because in actuality it's more of a reflection of who you are and not who they are.

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