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July 7, 2014

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News Brief
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Suni Shamapande was named Director for Pricewaterhouse Coopers.  Suni was the previous Divisional Vice President of Sales Development & Presentation for Sears Holdings Corporation before taking on this new role. He has been with Sears Holdings Corporation since 2009 where he started as the Divisional VP, Sears Retail LP. He has also held a variety of other high level positions such as VP of Asset Protection & Supply Chain Security at BCBG Max Azria, Sr. Director of Global AP at Ralph Lauren and US Corporate Manager of Operations LP for Nike. Suni earned his Bachelor of Arts degree in General Communication from State University of New York at Albany. Congratulations Suni!

Fraud Reporting on the Rise - 1/4 of companies reported fraud in Q4 2013
The quarterly examination of fraud reporting activity for the fourth quarter of 2013 from almost 15 million employees worldwide by governance, risk and compliance services firm The Network Inc. and BDP Consulting reached a record-high of 25.83%. The survey of more than 1,400 organizations measures fraud reporting in comparison to all compliance reporting activity. “Fraud continues to be a huge risk in the workplace, and while it is concerning to see fraud growing as a percentage of all compliance issues, it’s reassuring that these incidents are being caught and reported,” said Luis Ramos, chief executive of The Network. “Organizations continue to implement more effective training and policy management programs in order to create a ‘speak-up’ culture where employees recognize fraudulent activity and know how to properly report it.” (Source

The Rise of Thin, Mini and Insert Skimmers - New theft devices fit inside ATM's card acceptance slot  Like most electronic gadgets these days, ATM skimmers are getting smaller and thinner, with extended battery life. Here’s a look at several miniaturized fraud devices that were pulled from compromised cash machines at various ATMs in Europe so far this year. According to a new report from the European ATM Security Team (EAST), a novel form of mini-skimmer was reported by one country. Pictured here is a device designed to capture the data stored on an ATM card’s magnetic stripe as the card is inserted into the machine. While most card skimmers are made to sit directly on top of the existing card slot, these newer mini-skimmers fit snugly inside the card reader throat, obscuring most of the device. “New versions of insert skimmers (skimmers placed inside the card reader throat) are getting harder to detect,” the EAST report concludes. The miniaturized insert skimmer shown here was used in tandem with a tiny spy camera to record each customer’s PIN. (Source

NRF Debuts Top 100 Retailers List for 2014 - Amazon becomes first pure-play e-retailer to crash the top 10  The current retailing revolution isn’t about overthrowing the old elite; it’s about the speed with which the old dogs are learning new tricks. One such example: has joined the uppermost ranks of STORES magazine’s Top 100 Retailers. Last year Amazon was beaten — percentagewise — in e-commerce sales growth by Wal-Mart. Amazon’s total online volume dwarfed Wal-Mart’s, but Wal-Mart’s 30 percent increase in web sales outpaced Amazon’s 20 percent. Amazon aside, the largest e-commerce merchants remain those that started in bricks-and-mortar. The online success of traditional retailers contributes to the stability of the Top 100; only two companies on this year’s list were not in the 2013 Top 100. See the full chart of the Top 100 here. (Source

Bed Bath & Beyond Shifts to Seamless Inventory, New POS  
Bed, Bath & Beyond is making substantial investments in online, mobile and social media channels to enhance the customer's overall experience. This is a period of significant investment for Bed, Bath & Beyond, and the retailer is making the appropriate investments to provide a seamless customer experience across the in-store, online, and mobile shopping channels. (Source

2014 ISCPO Conference Coming Sept. 9-10 - Full Conference Agenda Released  The International Supply Chain Protection Organization will be hosting its two day “Securing your Global Supply Chain” conference in Dallas, Texas, on September 9-10, 2014. ISCPO's annual event will address topics related to supply chain security, industry theft trends, investigations, and resources. There will be a wide range of speakers from both private sector and public law enforcement, speaking on topics that are currently affecting the global supply chain. The conference will also provide a great venue to network with global industry peers and law enforcement. ISCPO members and any other interested parties should consider attending. See the full conference agenda here. Register here

NRF's Video Recap of the 2014 LP Conference & Expo  It was a busy 4 days in Ft. Lauderdale last month, and with so much happening, you may not have seen it all. Check out the NRF's 2-minute video recap of the conference! Also, stay tuned to the LPNN column below for our continual broadcast of "Live in Ft. Lauderdale" - an NRF LP first - where we interviewed NRF leaders, industry veterans, and the key players changing retail loss prevention ... all while streaming live online! Save the date next year - June 23-26, 2015 - for the NRF PROTECT Conference in Long Beach, CA.  

Rise in IT security training and awareness
Companies not only improve their security posture but also gain in terms of savings and competitive advantage. The major benefits of a proper IT security awareness training program is not just limited to making employees more aware of how they can protect their data at a corporate level; it also benefits them on a personal level, since such training can help increase their awareness of how to protect themselves against identity fraud and phishing attacks. Companies also benefit in terms of cost savings, since they not only reduce the number of incidents that could have incurred previously, they also reduce the chances of downtime. By establishing a strong security culture, companies will be able to reduce the chances of failing to comply with regulatory requirements. (Source

Investor wants PetSmart to consider strategic alternatives  Under pressure from hedge fund Jana Partners LLC to pursue alternatives including a sale, said it’s reviewing changes to its capital structure to return more money to shareholders. There is no assurance that the review will lead to any actions, and the timing of potential changes is uncertain, the Phoenix-based pet-supply retailer said in a filing today. PetSmart shares surged the most in two years last week after Jana, the $10 billion firm run by Barry Rosenstein, took a 9.9 percent stake in the retailer and said it was pursuing discussions with management, the board and other investors. Jana said the company should consider a sale and that it needs to return “significant” capital to shareholders while improving its operating performance. (Source

Retail Adds 27,800 Jobs in June - Up 230,800 year-over-year

Dubai to build world's biggest mall - 8 million sq. ft. planned

Concept Grocery Store in Germany Eliminates Food Packaging

Google Maps' enduring security holes put businesses at risk

More Than 60 Shot, 9 Dead in Chicago's Bloody Holiday Weekend

June Same-Store Sales Results

Walgreens up 8.9%
Rite Aid up 3.9%
Uniqlo up 2.6%

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Most of Zale Leadership Resigns in Signet Shake-Up; Hrabak Takes Over Sterling; Signet CFO Departs 

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

Steve Ippolito and Gary Johnson –
“Planning content for the LP industry’s
biggest event”

Steve Ippolito, Dir. of LP at Talbots and Chair of the NRF LP Content Planning Committee, and Gary Johnson, VP of LP for The Vitamin Shoppe and former Chair of the NRF LP Advisory Council, talk about the year-long process that goes into planning the NRF LP Conference & Expo. The show has evolved over the years to address the educational needs and increased scope of the LP profession. Steve and Gary tell us how the NRF conference reflects the direction and future profile of the successful senior LP executive.

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LPNN Quick Take

In this LPNN Quick Take, Joe LaRocca and Rex Gillette, VP National Accounts Retail for Protection 1, meet up with Barry Vaughn, Area Investigator with Old Navy. Barry was awarded the LP Case of the Year Award from the National Retail Federation. Listen as Barry discusses the case valued in upwards of $800K.

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Opening Comments -
Why We're Here

Vicki Cantrell and Robert Moraca from the NRF

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EMV: What About Card-Not-Present Fraud?
When the U.S. transitions to chip-secured payment cards, banking institutions will see a significant uptick in card-not-present fraud. What can they be doing now to prepare? In the wake of recent retail breaches at Target Corp., P.F. Chang's and other merchants, stakeholders are calling for the U.S. to expedite its transition from magnetic-stripe payment cards to chip-based cards that conform to the EMV, the Europay, MasterCard, Visa, standard. "Fraudsters are always going to look for the soft spot," Davie says. "We can take our cues from portions of the world that have already migrated to EMV. If you look at the U.K., parts of the E.U. [European Union], or even Canada, you can see that there is a pretty material increase in new types of fraud - specifically card-not-present fraud - once the migration to EMV is complete." (Source

How Bitcoin Is Changing Online eCommerce
Within the last six months bitcoin has been steadily increasing its mainstream process. Stores like Overstock, Lord & Taylor, TigerDirect, Virgin Galactic and earlier this week NewEgg all are now accepting the digital currency. But, after it was announced that Dish Network would be accepting bitcoins, the future’s looking brighter. John Donahoe, CEO of eBay, has stated that not only is bitcoin exciting, it’s also going to play an “important role” in the future of PayPal. Apple, who banned bitcoin wallet apps last year, is beginning to lighten up on the digital currency. Even Amazon, who claimed that it would steer clear of bitcoin, has recently been awarded a bitcoin-related cloud computing patent. All of this is great for bitcoin in restoring its reputation from early in the year after the arrest of bitcoin pioneer Charlie Shrem for money-laundering and the collapse of Tokyo-based Mt. Gox. But, can bitcoin get past these devastating examples of mistrust and change online eCommerce? (Source

"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

Teen shot outside Western Hills Mall, Fairfield, AL waiting to buy new Air Jordan sneakers  A 15-year-old boy is recovering, after being shot in the foot, while waiting in line for the new Air Jordan shoes. It happened early this morning at Western Hills Mall in Fairfield. Fairfield Police Chief Leon Davis says right now two people have been detained for questioning and he expects charge to come down soon. One of those people is juvenile. The incident happened around two this morning. Davis says some fifty to sixty people were standing outside in line waiting to get the new shoes. He says there are conflicting stories about exactly what happened. Some witnesses saying there was an altercation prior to the shooting. Others says a car just passed through and someone inside began shooting. (Source

Ace Hardware Employee accused stealing thousands of dollars from store in Sunrise, FL  Stealing from her boss. That's what Nicole Dellafave is accused of doing. She told Naples Police she only worked at Sunshine Ace Hardware for the last 7 months. But investigators say that was enough time for her to steal four thousand dollars from the business. (Source

Pampillonia Jewelers in Washington, DC hit with a $50,000 daytime Smash and Grab  D.C. police say two thieves made off with about $50,000 worth of jewelry in a daytime smash-and-grab robbery. The robbery occurred around 12:35 p.m. Thursday at Pampillonia Jewelers inside the Mazza Gallerie mall in northwest Washington. Police spokesman Officer Araz Alali said that two men entered the store, put on masks and smashed display cases with a hammer. They took some jewelry before fleeing in a car. (Source

Former mobile phone store employee must repay almost $8000  Raymond Joseph Mahoney pleaded guilty to theft over $5,000 and two counts of fraud. He was given a five-month conditional sentence, with a year’s probation, Thursday in provincial court in St. John’s, CN. The sentence, imposed by Judge Mark Linehan, also includes a restitution order for Mahoney to repay $7,743.72, which he took from the Wirelesswave kiosk in the Avalon Mall. The 30-year-old took most of the money when he left the company in June 2012. (Source

Belk Loss Prevention Associate assaulted in Huntsville, Al Madison Square Mall

Dollar General employees Ambushed before store opens in Tulsa, OK

I-75 shut down as Campbell County, TN fireworks store goes up in flames

WWE’s Emma arrested for shoplifting at Walmart in Hartford, CT

Undercover operation nets arrests in $10K silver robbery in Largo, FL

A nose for crime: counterfeit wines; Maureen Downey armed with the tools of her anti-counterfeit wine trade

Fake credit cards used for $1,426 in transactions at Rue 21 in Richmond, KY

Police Searching for Austin, TX $30,000 Zoo Robbers

Suspected shoplifter breaks ankle during police chase in Bridgewater, N.S. CN

Ohio man breaks into Hilton Head Reebok store, steals one $18 shirt

Robberies and Burglaries

AT&T - Cincinnati, OH – Burglary – 1 caught, 2 flee
Circle K – Charlotte, NC – Armed Robbery
College Grocers – Wakesiah, BC, CN - Armed Robbery
CVS – N. Kansas City, MO – Armed Robbery – suspect arrested
CVS – Knoxville, TN – Armed Robbery
CVS – North Charleston, SC – Armed Robbery
CVS – Crown Point, IN – Robbery - suspect arrested
CVS – Upper Gwynedd, PA – Armed Robbery
Dollar General – Tulsa, OK – Armed Robbery
IDA Pharmacy – Napanee, ON, CN – Armed Robbery
Kmart Pharmacy – Bluefield, WV – Armed Robbery
Kum & Go – Council Bluffs, IA – Armed Robbery
Little Caesars – Tulsa, OK – Armed Robbery
Logan – Waterloo, IA – Shooting – 2 injured
Mac’s - Sault STE. Marie, CN – Armed Robbery
One Stop Foods – Flint, MI – Burglary – Smashed truck into store
Shell – Fresno, CA – Armed Robbery
Speedway – Lexington, KY – Armed Robbery
Smokers Friendly – Ogden, UT – Armed Robbery
Subway – Abingdon, MD – Robbery
Valero – Huntsville, AL - Shooting – 1 injured
Victoria Medical Pharmacy –Niagara Falls, CN – Armed Robbery
Walgreens – Lansing, MI – Robbery – suspect arrested
7-Eleven – Roxborough, PA – Armed Robbery
7-Eleven – Kanawha Co. WV – Armed Robbery


ORC News
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Law Enforcement in FL Bust 2 Multi Million Dollar ORC Cases: $3.2M

TALLAHASSEE, Fla.— Attorney General Pam Bondi’s Office, the Florida Department of Law Enforcement, the Brevard County Sheriff’s Office, the Orange County Sheriff’s Office, and the Pinellas County Sheriff’s Office today announced the arrest of three women for an organized retail theft of baby formula. Alicia Tondreau-Leve, of Rockledge, Fla., allegedly operated a business on Craigslist named “Formula Mom.” According to the investigation, Leve recruited Guilyanna Guzman, of Orlando, and Alexis Lyn Dattadeen, of New Port Richey, to help her steal large quantities of baby formula and then ship the formula to New York, Wisconsin, and California. Leve allegedly generated up to $2 million from this scheme.

"I am grateful to our law enforcement partners who helped dismantle this alleged retail theft ring who targeted local stores," said Attorney General Pam Bondi.

“Quality cases like this are a result of the strong partnerships within the Florida law enforcement community,” said FDLE Commissioner Gerald Bailey. “My appreciation to each officer and analyst who worked this case.”

“The Orange County Sheriff’s Office was glad to work with the Attorney General’s Statewide Prosecutor, the Florida Department of Law Enforcement and several sheriff’s offices to bring to justice white-collar criminals who were preying on local grocery stores,” said Orange County Sheriff Jerry Demings.

Each defendant is facing charges of Conspiracy to Commit Racketeering punishable to 30 years in prison. The Attorney General’s Office of Statewide Prosecution will prosecute this case. The Casselberry Police Department, Ocoee Police Department and Cape Coral Police Department assisted with this case.


Volusia, Seminole deputies bust $1.2 million retail theft ring in Central Florida; 5 people arrested Thursday  Deputies in Volusia and Seminole counties have busted a large retail theft ring operating in the Central Florida area, officials say. Deputies said they have already arrested several people accused of stealing more than $1 million in property in the last year from stores like Target, Walmart and Publix. Investigators said the suspects would resell the stolen items on eBay. Deputies said the ring leader was 41-year-old Marc Kolarik, of Deltona. He was arrested on charges of racketeering, conspiracy to commit racketeering and dealing in stolen property. His bond was set at $45,000. Deputies said he made more than $1.2 million running his illegal operation. (Source


Drug chains battling meth scourge in West Virginia  After prodding by U.S. Sen. Joe Manchin, CVS Pharmacy stores in West Virginia have stopped selling a popular cold medication that criminals use to make illegal methamphetamine.CVS, with 50 stores across the state, no longer sells cold medicines that solely contain pseudoephedrine, a key meth-making ingredient. CVS’s single-ingredient pseudoephedrine sales ban also extends to another 40 stores within 15 miles of West Virginia’s border — stores in Kentucky, Maryland, Ohio, Pennsylvania and Virginia, said Mike DeAngelis, a CVS spokesman. Also, Walgreens notified Manchin’s office last week that the drugstore chain plans to stop carrying single-ingredient pseudoephedrine products in West Virginia. A Walgreens spokesman confirmed the change, and said the company was “still working out details.” Walgreens has 17 stores in the state. (Source

Baltimore Business Owner gets prison time for $400K gift card theft scheme; John Tadros used others to steal items, return them for gift cards  Prosecutors said 45-year-old John Tadros' fraud scheme led to the theft of hundreds of thousands of dollars from businesses. He was sentenced on charges of wire fraud conspiracy and money laundering. Tadros owned Busy Bees Convenience Mart and J&J's Bar and Liquor in Baltimore. According to his plea agreement, from January 2009 to February 2013, he directed several people known as boosters to steal merchandise from large retail stores in Maryland, Virginia, Pennsylvania and Delaware. Those boosters would use modified Maryland driver's licenses to exchange the stolen items for gift cards and sell them to Tadros for 50 percent of their value. Retailers in Maryland lost $401,326 because of the scheme. (Source

UK: Police hunt shoplifting gang who snatched $1300 worth of clothes from Marks and Spencer  A gang of shoplifters escaped with clothing worth more than $1300 in a raid on a Marks and Spencer store. Now CCTV images of suspects have been released by police in a bid to put names to their faces. Police said three men ‘worked as a team’ to plunder items including 10 pairs of jeans and 30 floral patterned scarves from Marks and Spencer on George Street in Altrincham. One was carrying a large Sports Direct bag and another a large Next bag. (Source

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Vendor Spotlight

Protection 1 Announces Second Annual Day of Service for July 19

“All For 1 Day” Dedicated to Improving Local Communities Across the Country

CHICAGO – June 27, 2014 – Protection 1, the largest full service business and home security company in the U.S., today announced the second annual All For 1 Day will take place July 19, 2014. All For 1 Day is designated as a day of service for all Protection 1 employees, nationwide. Team members at the company’s more than 70 locations will get together to identify a need in their local community and create a plan that will help address it. Last year, Protection 1 was able to positively impact more than 50 organizations ranging from Loaves and Fishes in Illinois and the Cherokee County Animal Shelter in Georgia to larger organizations such as Habitat for Humanity and the American Red Cross.

“Our desire to serve our communities is equal to our desire to provide top tier service to our customers,” said Timothy J. Whall, chief executive officer at Protection 1. “Last year, our teams expressed great passion for the causes they became involved with, going above and beyond our expectations for the day. Giving back to our local communities exemplifies our company values and priorities and we look forward to making a difference as our teams get involved on our second annual day of service.”

Instead of supporting one organization at a national level, teams are encouraged to look closely at their own communities, finding ways to make them better and safer, sharing their plan and their progress with the rest of the company via social media with the hashtag #AllFor1Day, a practice they will repeat on July 19th.

Last year’s local initiatives organized food and clothing drives, volunteering efforts at local shelters, clean-up efforts, fundraising activities for local arts programs and other worthy causes, bringing employees together.

In 2013, Protection 1 team members dedicated over 25,000 hours of service work in their communities. For more information on last year’s events and those being scheduled for this year, visit us at


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Suni Shamapande was named Director for Pricewaterhouse Coopers.
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When you think you’ve got your job mastered think again. That’s usually when something bad happens in ones career or company. If you reach that point, and most everyone does, its time to re-evaluate everything you’re doing. Go on the hunt for new technology, new ideas, rewrite your program, take a fresh look at every aspect of your department and maybe even bring in a consultant you don’t know or have ties to. Someone who will challenge you and debate with you, and won’t be there to merely confirm what you’re doing and agree with your approach. But someone who will test you and force you to grow someone who you may even be uncomfortable with. Get out of your comfort zone and have some fun!

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