The D&D Daily Mobile Edition

July 3, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Michael McCarthy was named VP Operations, Administration and Fleet Services for Pep Boys.  Along with his duties as VP Operations, Administration and Fleet Services, Michael will also lead the Asset Protection Department.  He brings his over thirty years of experience from Sears Holdings Corporation with him. Michael has held numerous titles for Sears Holdings Corporation including SVP Sears Retail - FLS, SVP Sears Retail Operations and Specialty Retail Formats, Region Vice President, VP Merchandising/Marketing - Home Town Stores, Hardlines Region Merchant, Director of Merchandising Planning/Placement - Brand Central and Director of New/Remodel Stores - Hardlines. Congratulations Michael!

Is security just the store’s concern? Not so fast
Brunswick Group, a business communications firm, among other conclusions finds that 70% of consumers it polled “believe that retailers should be held financially responsible for consumer losses that result from a breach, not banks or card issuers.” (That’s not the most damning of its findings. Brunswick says 61% of respondents believe retailers are directly responsible for the breaches in the first place, almost as many as those—79%—who put the blame on the criminals themselves.) Javelin Strategy & Research, in its own survey, concludes that, in cases of breaches, “consumers tend to avoid retailers the most, compared to other industries such as banking and credit card issuers.” But before bankers take too deep a breath, yet another, global, survey by ACI Worldwide and Aite Group finds not only that fully one in four consumers has been victimized by card fraud in the past year, but that almost a fourth of these have changed their financial institution because of it. (Source ababj.com)

POS Machine Vendor Warns of Possible Payment Card Breach at Restaurants, Including Taco Bell and Dairy Queen  Information Systems & Suppliers (ISS) Inc., the vendor of point-of-sale (POS) electronic cash registers and security systems used by restaurants including Taco Bell and Dairy Queen, has warned its customers that it may have experienced a payment card breach. Due to the better track inventory and accuracy of records, Point-of-sale (POS) systems are being used in most of the industries including restaurants, lodging, entertainment, and museums around the world. It can be easily set-up depending on the nature of the business. Despite that, Point-of-sale (POS) systems are critical components in any retail environment and users are not aware of the emerging threats it poses in near future. So, it is one of the apparent target for cybercriminals and the recent security breach at Information Systems & Suppliers (ISS) proves this. (Source thehackernews.com)

Survey: Retail shrink translates into $57 billion loss; cash theft jumps 20%  Shrinkage levels average 1.27% of sales, which translates to a $57 billion loss to the industry, according to the U.S. Retail Fraud Survey, which is based on research into the systems and strategies used by 100 leading North American retailers. The biggest area of store loss remains employee theft (38% of shrink), up 3% from last year, according to the study, published by U.K. based Retail Knowledge and sponsored by Volumatic and Kount. It is followed by cash theft (24%), up 20% from last year, administration and book keeping errors (21%), down 9%, and shoplifting (11%), down 15%. (Source chainstoreage.com)

SEC actively investigating data breach at Target and other retailers  The Securities and Exchange Commission (SEC) is reportedly investigating whether Target Corp. adequately protected its data and informed shareholders about the possible consequences relating to its fall 2013 data breach, according to Bloomberg. The report said that Target is one of several public companies that suffered a data breach which is being investigated by the SEC. The prospect of enforcement actions against companies that have been victims of cyberattacks marks a new front in the agency's efforts to combat the rising threat hackers pose to public companies, brokerages and financial markets. Previously, the SEC had focused on guiding public companies on how to disclose those risks and making sure financial companies have adequate defenses against hackers. (Source chainstoreage.com) (Source sfgate.com)

Ousted American Apparel CEO hands over stake to hedge fund  Ousted American Apparel Inc (APP.A) Chief Executive Officer Dov Charney has handed over his entire stake and voting rights in the struggling retailer to Standard General LP, enabling the fund to negotiate directly with the independent directors over the company's future, two sources close to the matter said on Wednesday. Earlier Standard General had loaned its American Apparel shares to Charney, according to regulatory documents, allowing him to boost his stake in the company from about 27 percent to 43 percent. Charney had hoped to gain majority control, but American Apparel countered with an anti-takeover plan that prompted him to change his strategy. As a result, the 45-year-old American Apparel founder handed over his entire holdings to his ally Standard General, according to the sources, who requested anonymity because the talks are private. (Source reuters.com)


Cisco uncover cyber criminal group hiding since 2007, malware almost entirely undetectable by anti-virus systems  The so-called ‘String of Paerls' attackers were exposed by Cisco's Jaeson Schultz, Joel Esler and Richard Harman in a 30 June blog as targeting “high-profile, money-rich” industries such as banking, oil, television and jewelry. They are so named because one of their domain names is ‘londonpaerl.co.uk', mimicking the name of a legitimate UK-based jewelry business, London Pearl Ltd, which supplies cultured pearls and cultured pearl jewelry. Cisco says the criminals have been operating since at least 2007, and have run several different campaigns involving “many pieces of malware”. But they remained hidden because they preyed on small numbers of victims using “extremely targeted” spear phishing emails and adopted various other means to cover their tracks. (Source scmagazineuk.com)

Treasury Targets Transnational Criminal Gangs
The U.S. Treasury Department said Wednesday it leveled sanctions against an array of criminal organizations and their leaders. Treasury’s actions were taken under an authority that targets transnational criminal organizations and their supporters. The designations announced Wednesday target the Camorra, the Yakuza, the Brothers’ Circle, and Mara Salvatrucha, also known as MS-13. Editors Note: Some of these gangs are obviously tied to ORC and in some cases, like MS-13, are actively involved in ORC. (Source wsj.com)


A Moment in Time at the NRF LP Show

Bill Titus makes his key point in "The Profiling Debate" with Dr. Read Hayes


On the third day of the NRF LP Conference & Expo in Ft. Lauderdale, Florida, Bill Titus, Managing Director at Price Waterhouse Coopers (pictured left), and Read Hayes, Director of the Loss Prevention Research Council and Research Scientist for the Univ. of Florida (pictured right), led a session titled "The PROFILING DEBATE - Who's Watching Whom and Why?" While some would say profiling is never appropriate, others feel it is a part of the experience factor and overall assessment when conducting surveillance. Mr. Titus and Dr. Hayes each represented a different approach to the discussion, while underscoring the reason why the "Profiling" debate persists today.

Kount Puts Mobile Users into the Shoes of Global Fraudsters with New Game "Fraud Tycoon"  Fraud and risk management technology leader Kount is flipping the script, putting potential victims into the shoes of global fraud networks to drive education and awareness through a new mobile game, Fraud Tycoon. Developed through a partnership between Kount and game-based storytelling company PonyWolf, Fraud Tycoon is designed to educate everyone about the tools and techniques fraudsters use to commit crimes that impact businesses, consumers and our economy. “Don't be mistaken – this isn't a 'how-to guide' for would-be fraudsters, but a wake up call for retailers and consumers alike,” said Don Bush, VP of Marketing at Kount. "By putting users into the mindsets of these criminals, Fraud Tycoon provides a unique opportunity to create awareness of fraud through game-based storytelling." Fraud Tycoon is free, with no in-app purchases or ads. Download the game on iTunes, Google Play or at www.fraudtycoon.com. (Source kount.com)

LP Team Photo Challenge

A submission from the LP Team at PetSupermarket, thanks guys!

Keep those selfies coming, and
let's see those smiles!

In observance of Independence Day, the Daily will not be publishing Friday.

Have a fun and safe 4th of July!


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"Live in Ft. Lauderdale at the NRF Show 2014"


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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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LPNN Quick Take

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e-commerce
Sponsored by The Zellman Group

Consumers Blame Merchants For Data Breaches  With recent news of major security breaches involving retailers like Target and Sally Beauty populating media sites around the nation, merchants and issuers are likely wondering how this is affecting U.S. consumer behavior as a whole – and rethinking their own security strategies. Just how aware are consumers of these incidents, who are they putting at fault? Consumers, about 64 percent, indicated that they held merchants responsible for these breaches, while 28 percent said the banks and card networks were at fault. However, 67 percent said they expected their banks and card networks to notify them when these incidents occur. And when it comes to making up for the damage and making the situation right, 61 percent of consumers said that it was up to the banks and card networks. To view more statistics, check out the infographic titled “Consumer Insecurity About Data Insecurity” here. (Source pymnts.com)

E-Commerce in Canada Expected to Reach $34 Billion in 2016  Nextopia created this very interesting infographic on e-commerce in Canada, including its projected sales of $34 billion by the year 2016. Canadians are increasingly shopping online, with sales growing substantially year-over-year. The infographic shows the biggest spenders by province, how many of us shop online, what products we buy, and how we compare to other countries. (Source retail-insider.com)

Pier 1 E-Com Sales Jump 260%

Kroger accelerates e-commerce channel growth with acquisition of Vitacost

Mobile payments speeding past desktop, but still trail cards: report

"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

$10,000 worth of Canadian Motorcycle Company vests smash and grabbed from a Langley City store Thieves rammed a downtown Langley City store to steal 100 leather motorcycle vests in late June, Mounties say. Around June 22, the thief or thieves backed a vehicle into the front door of Up Your Leather. The ramming tactic created a large hole in the front of the business and damaged the structure, said Cpl. Holly Marks, of the Langley RCMP. The thieves swiped more than 100 CMC (Canadian Motorcycle Company) vests, in a number of styles and sizes. The vests are valued at approximately $100 each. (Source langleyadvance.com)

Armed man robs Pitt Meadows Superstore on Canada Day  Ridge Meadows RCMP were called to the Real Canadian Superstore in Meadowtown Centre around 11:45 p.m. Tuesday after two female employees were threatened by a thief. The store was closed when the robbery took place but police said the doors may still have been open as the man did not break in. The man ordered the employees into an office that contained the store’s safe and forced the women to open it. He fled with an unknown amount of money. (Source mapleridgenews.com)

Surrey teen charged in string of cell phone store robberies  A 15-year-old Surrey boy has been charged with four counts of robbery related to a string of cell phone store robberies in Newton and Whalley. The boy's name cannot be published because the Youth Criminal Justice Act shields his identity. "While this is great news for many businesses in our community," Surrey RCMP Cpl. Bert Paquet said of the arrest, "our investigation into these robberies is still very active. Our officers are now focusing their efforts on bringing further criminal charges against other persons believed to be involved in these offences." (Source vancouversun.com)

Tim Hortons, CIBC launch technology-enhanced Visa card

Break and Enter at the Belmont Liquor Store in Prince Rupert
 

Op/Ed
 
Response to a Recent "Closing Thoughts" Posting on the Daily

"Tip of the Day" published June 23:  Providing a reference on an executive is a serious commitment and should never be taken or given lightly as references play a critical role in the decision process regarding major investments companies make when they hire a new executive. For example, when a company hires a $100,000 a year executive, they'll spend close to $200,000 on that executive in the first year alone merely to get the executive up and running. And if your recommendation isn't accurate, it could lead to problems not only for the company referencing the executive, but also for the executive themselves and that's the real concern. So when you're asked to give a reference, make sure you understand the position they're looking to fill and give an accurate assessment based on your experience and knowledge of that person and of the needs of that position. Because the last thing anyone wants is to have an executive fail in their new position if it could have been avoided.

Rolland Trayte
President & CEO
Future Sentry


People’s lives change ... How often have you heard that someone you knew was involved in something you could never have imagined that totally annihilated their reputation? Or suffered some major medical malady that completely changed what they were able to do in the field?

It happens more and more as we get older unfortunately and as we struggle to remain relevant.

It was the “Closing Thoughts” piece that got me thinking about my friend Curt and the two references I provided for him at his last two positions he held before his untimely passing. We'd worked together for more than 15 years and I knew him as well as anyone - I thought. Providing an employment recommendation was as much a reflection on me as it was on him.

On Sunday after church, Curt complained to his wife Stacy about another incredible migraine and asked that she get his medicine. As he washed down the pill, water dribbled uncharacteristically out of one side of his mouth and onto his shirt as he sat on the arm of the couch in their San Diego home. Stacy recognized what she thought were symptoms of stroke and after dialing 9-1-1 called a neighbor who was a paramedic. He assessed Curt in those anguishing minutes until they heard the ambulance siren. Thanks to his training, an anti-clotting drug was administered, but not before damage was done that took years to be recognized.

When Curt returned to work months later, after weeks of 24-hour-a-day hiccups, speech and physical therapy, friends rejoiced that "good old Curt” was back. But it was soon clear to co-workers, that it really wasn't the old Curt, but a guy who looked like Curt, acted like him to some degree, but struggled when faced with challenges and tasks that he previously digested and charged ahead. Curt hid what he could, but he knew himself that somehow, things were different. He told me once that when interviewing a dishonest employee, his brain was already 4 or 5 steps ahead of the employee with clear questions formulated in his head. Today, he confessed, if the employee quickly answered, a panicked Curt would think “Crap, what do I do now?” Soon, the company “cut back” and let Curt go with a modest severance and best wishes.

As his friend who only e-mailed and talked on the phone, I was pissed. How could they? And I resolved to do anything you would do for a friend - especially one that seemed to overcome such challenges - to get back in the saddle with another company. I was a reference for Curt (the old Curt as it turned out), with two companies eager to hire a tenured LP executive. But he struggled at both and after a year at a quick-serve chain and only a couple of weeks with another regional retailer where I'd been the glowing reference, he was out again for vague, seemingly unprovoked "business decisions."

It wasn’t long before Curt came to grips with the long-term repercussions of being a stroke victim and how life, logic, relationships and business performance can change as a result of this debilitating illness. I encouraged Curt to keep looking, do some consulting or file for SSI Disability, but he never did. And a year ago last March, he couldn’t imagine living up to his own high standards and decided to stop trying.

In part, I blame myself for not recognizing his precipitous path and for providing a five-star reference for a man I no longer really knew. I wanted to share this story - for what it’s worth - that reinforces your message but with a twist, as those in the tightly knit industry endure the process of change and the responsibility we have to our friends and colleagues.

 

Retail Crime News
Sponsored by NuTech National

Police investigate deadly shooting behind Food 4 Less in Las Vegas  Las Vegas Metro police are investigating two separate deadly shootings that occurred Wednesday night. The first shooting occurred behind a Food 4 Less grocery store located on East Sahara Avenue at Nellis Boulevard. Police received multiple calls about shots fired in the area about 8:50 p.m. When police arrived, they located a victim with gunshot wounds. He or she was pronounced dead at the scene. Witnesses told police they saw a man leave the scene in a burgundy truck. Police have yet to locate that man. (Source fox5vegas.com)

Garda Armored-truck driver used cellphone before crash  Garda armored-truck driver, who was reportedly using his cellphone, flipped the vehicle on its side Tuesday morning, smashing in the hood of an oncoming pickup truck carrying a family of three, according to Phoenix police officials. The driver of the pick-up is in very critical condition. (Source azcentral.com)

Man stabbed in Food Court of the Stroud Mall in Stroudsburg, PA  Police are looking for a suspect who stabbed another man during a fight in the food court of Stroud Mall, early Tuesday evening. The incident happened about 6 p.m. The victim, who has not been identified, was taken to Pocono Medical Center. His condition is not known. (Source poconews.net)

Radio Shack employee tied up by armed robber in Beloit, WI  A store clerk was tied up by an armed robber Wednesday in Beloit, with the suspect fleeing after taking merchandise. No one was injured in the robbery that happened at 9:15 a.m. at Radio Shack, 2690 Cranston Road, Beloit police said in a news release. The clerk was alone in the store when the suspect, armed with a handgun, entered the store. A second suspect entered the store and both fled with an undetermined amount of electronics. The clerk was able to get free and called 911. (Source madison.com)

Dothan, AL Police warn against credit card skimming  The Dothan Police Department reports that they are seeing an increase in credit card fraud in the area. Credit card skimming is not anything new but in Dothan, police say they've received new reports of this type of credit card fraud on a weekly basis over the last few months. "It is something you have to be leery of because of the growing increase, and because it is so rampant in the Wiregrass area and around the county," Corporal Devellus Butler said. (Source wsfa.com)

Two Univ. of North Texas Football Players Arrested, Accused of Shoplifting From Wal-Mart 

Ex-Old Dominion Univ. football player charged with credit-card fraud 

Woman facing Robbery charge after she threatens Dollar General employee during theft 

Burglars hits Jupiter, FL Online shoe retailer for $50,000 of inventory on cusp of opening a brick and mortar store

Burger King Manager in Troy, MO accused of stealing $37,000 in cash

$5K worth of fireworks stolen from Castleton, IL pop-up store; caught on tape

Zales in Richmond Heights, OH hit with a Grab and Run, suspect fled with 2 diamond solitaires valued at $14,480

Kay Jewelers in the Dover Mall, Dover DE, hit with a $3149 Grab and Run; suspect fled with a gold chain

Robberies and Burglaries

Apple Creek Market – Hudson, MA – Robbery – Suspect arrested
Big Bang Pawn – Corinth, MS – Burglary – 2 suspects charged
BP – Topeka, KS – Armed Robbery/ Shooting – victim’s condition upgraded
D&D Quick Mart – Florence, AL – Burglary
Discount Tobacco – Knoxville, TN – Armed Robbery – hit Twice in a Week
Dollar General – Huntsville, AL – Armed Robbery
Dollar General – Sarasota Co. FL – Robbery – suspect fled with nothing
Exprezit – New Bern, NC - Shooting – suspect arrest, no one injured
Kris and Bella Grocery – Schenectady, NY – Shooting – Suspect arrested, 1 person injured
Mini Mart – Philipsburg, PA - Burglary – 4 suspects, 1 facing charges
Penn Station Subs – High Point, NC – Armed Robbery - shot fired, no injuries
Safeway Pharmacy - Upper Marlboro, MD - Armed Robbery – 3 gunmen, no injuries
Shopper’s Choice – Lexington, KY – Shooting- 1 victim injured, non life threatening
Stevenson’s Pharmacy – Buchanan Co, MO – Armed Robbery – suspect sentenced to 40 yrs
Sunrise Food – Jackson, MS – Burglary – suspect arrested
7 Market - Camas, WA - Armed Robbery – Clerk struck with an axe

 

ORC News
Sponsored by Security Resources

Bibb Co, GA Deputies arrest 22 in RICO Identity Fraud Ring  Bibb County deputies received a fraud alert in May from Prevatek, one of the vendors for accounts inmates use to pay for phone calls, commissary goods and bonds. “They noticed that different account holders’ credit card information was being used to deposit money on inmates’ accounts,” investigator Jason Batchelor said. “It was all originating from the same (computer) IP address.” After several weeks of investigation, including listening to inmates’ recorded phone conversations and reviewing financial records, deputies have arrested 17 people in connection with a credit card fraud racket involving an estimated $20,000. Arrest warrants have been issued for another five people. Denise Krieger, 41, allegedly stole identities and credit card information from people across the country while working for Internet businesses such as 1-800-FLOWERS, running an unlicensed tax preparation business and reselling overstocked goods, according to the sheriff’s office. (Source 41nbc.com)

Oscar’s Diamonds in Bridgeport, IL the victim of a $100,000 Smash-and-Grab  A store in the South Side Bridgeport neighborhood lost nearly $100,000 worth of jewelry during a smash-and-grab robbery early Tuesday. Three males broke into Oscar’s Jewelers in the 3400 block of South Halsted Street and stole about $100,000 worth of jewelry. Officers who responded to a burglar alarm found a broken glass window at the front entrance to the store, and a hammer inside a bucket near the broken window. (Source myfoxchicago.com)

Pasco, WA man arrested in suspected theft ring; stolen Levi’s heading TO Mexico  Authorities found more than $20,000 worth of stolen items and merchandise at the home of a Pasco man believed to be involved in a retail theft ring, according to Richland police. The search of Fernando M. Cano's home was the result of a two-month investigation into area retail thefts, Capt. Mike Cobb said. Cano, 49, was arrested following the search and booked into jail on suspicion of organized retail theft, trafficking stolen property and possession of a stolen firearm. Authorities found hand tools, lawn care tools, food stamp cards, stolen gift cards, a stolen gun and more than 130 pairs of stolen jeans in a shed on the Pasco property. There was also more than $40,000 in cash found at the house. When authorities from the Richland Street Crimes Unit and Metro Drug Task Force raided the house June 26, they also arrested Kaleb A. Shaffer, 38, on suspicion of trafficking stolen property. The Pasco man was allegedly trying to sell Cano stolen tools in a nearby alley when police showed up. Detectives received information in April that Cano had stolen and sold between 150 and 200 pairs of Levi's jeans, Cobb said. He apparently arranged for the jeans to be sold in Mexico. (Source bellinghamherald.com)

Burglar steals sunglasses valued at $14,000 from Lenscrafters in Middletown, PA  Police said $14,000 worth of designer sunglasses were stolen from the Lenscrafters store at Oxford Valley Mall. The burglary occurred sometime between 8:30 p.m. Sunday and 9:30 a.m. Monday, Police found a security gate unlocked. How the burglar or burglars broke in was not known, but 70 pairs of Oakley and Ray Ban sunglasses were taken in the heist. (Source buckscountycouriertimes.com)

New England Retail Crime Symposium and Trade Show. The New England Retail Crime Symposium and Trade Show serves to bring retailers, law enforcement, prosecutors and policy makers together to discuss and further expose the important issue of Organized Retail Crime. As in previous years, this will be an all-day event with breakfast, lunch and two coffee/snack breaks. The 8th Annual NEORC will take place at the DCU Center in Worcester on Thursday, September 18. (Source retailmaine.org)

Bonita Springs, FL traffic stop leads to credit card fraud arrest

Two Oakland women linked to CVS Baby Formula thefts in Scotts Valley, CA

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The Weekly Meeting: Necessary--or Evil? 
The weekly meeting is a staple in many workplaces, but is it worthwhile, or are they beneficial for the company and its employees? Here are some arguments for and against them, and some tips on how to make the most of weekly meetings if you have them. (Keep it short)


Get Up! Standing Meetings Improve Creativity, Teamwork  The next time you have a meeting, don't just sit there, get up! Standing boosts the excitement around creative group processes according to a new study. Changing up the scenery helps too. (No chairs)

Four Ways Introverts Can Get Heard in Meetings  If you're an introvert you may find it difficult to make yourself heard in meetings. You may feel drowned out by others trying to get a word in, but it doesn't make what you have to say less important! Use these tips to help play to your own strengths and be heard. (Chime in early)

5 Ways to Make Sure You Know What the Heck is Happening  As a leader, it's important to know what is going on around you. Speed and access to information matters, so what do you do if you think you're not getting it all? Use these tips to get all the facts. (Be random)

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Tip of the Day
Sponsored by Vector Security

Spending an entire day interviewing at a corporate office is an exhausting experience. All the preparation, homework, store visits, family discussions, and mental exercises take back seat and now its up to you to find your rhythm and your zone. Remember, everyone you meet, including the receptionist plays a part in developing their perception of you and its up to you to send the right messages and carry yourself like a professional. Much to often executives loosen up and start feeling comfortable and that's where the slips happen. You've got to focus and stay in the game every second you're in that office regardless of who you're with and where you are. Some real basics are; stay hydrated-drink plenty of water, do not chew gum or suck on any breath mints, use the facilities often even if its merely for a mental break, and always smile and be positive!

Just a Thought,
Gus Downing

Gus Downing

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