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July 9, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Laroussi Elyaddasse was named Director of North America Loss Prevention for NIKE, Inc.  Laroussi was the previous Senior Group Manager, Corporate Security Services for Target, where he had worked for over five years. He started at Target as their District Assets Protection Team Leader, and worked his way up, being promoted to Assets Protection Business Partner and Group Assets Protection Team Leader before his most recent position. Laroussi earned his Bachelor's degree in Organizational Leadership from Chapman University. Congratulations Laroussi!

GIS releases the 2014 Retail Industry Background Screening Benchmarking Report   The report helps retailers gauge their background screening program as compared to the industry at large by delving into the thought processes and procedures behind retailers’ programs. This year’s report revealed that 30% of retailers report being unaffected by the Equal Employment Opportunity Commission (EEOC), with 41% saying that they have or will made changes to the services, 59% saying they have or will change their adjudication criteria, and a whopping 90% saying that they have or will implement individualized assessments. Other findings include what services retailers are using, why they’re conducting background checks, and more. To request your copy of the report, click here.

Kellogg’s rep pleads guilty to defrauding Supervalu - Claims co-conspirator was President - Split nearly $1.9M in reimbursements  Former Kellogg’s sales manager has pled guilty to a scheme by which he defrauded his employer and supplier Supervalu by filing phony deal sheets on behalf of a conspiring grocery retailer. The salesman, John Morrell Palmer III, faces up to 20 years in prison for the scam, which resulted in the retailer receiving nearly $1.9 million in reimbursements for transactions that never took place between 2009 and 2013. The grocery retailer, which federal lawmakers did not disclose, operates grocery stores around Richmond and elsewhere in Virginia. Authorities said Palmer’s unindicted co-conspirator was the president of the retailer. Palmer told investigators that his co-conspirator proposed the scheme to split proceeds from deductions for transactions that did not take place, and afterward arranged meetings in parking lots of the retailer’s stores to pay Palmer in cash. Palmer subsequently agreed to cooperate with authorities investigating the retailer and on Aug. 5 last year arranged an exchange between his co-conspirator at a grocery store parking lot while being monitored by law enforcement officers. Palmer pled guilty to a single count of conspiracy to commit wire fraud, and has agreed to cooperate with authorities further investigating the incidents. A Supervalu spokesman said the company was cooperating fully in the investigation. (Source supermarketnews.com)

American Apparel and Investors in Reported Deal on Retailer’s Future - Fired CEO investigation ongoing  The Dov Charney, the company's founder who was fired recently, the retailer and the New York investment firm Standard General have agreed on the terms of the deal, according to a person familiar with the negotiations. No documents have yet been signed. Mr. Charney had to essentially relinquish his right to vote his shares. Mr. Charney struck this deal, signing away his power, because he had few options and because he was afraid of the alternatives that were circling his weakened company. Whether Mr. Charney will stay or go depends on the outcome of an investigation the board began into his personal and professional conduct. Once the investigation is complete, the new board will decide what role, if any, he should have at the company, according to people with knowledge of the situation. (Source nytimes.com)

Senate Panel OK's Cyberthreat Info Sharing Bill Which its sponsors say would encourage the federal government and private sector to voluntarily share cyberthreat information. The White House has yet to say whether the Senate version meets its requirements to toughen privacy and liability protections. (Source govinfosecurity.com)

Xerox Fights Back Against Black Market Printer Supplies - "fake" toner  Recently supported raids and prosecutions around the world to protect customers from counterfeit consumables and products. (Source businesswire.com)

Amazon sued by retailer over counterfeit allegations  Amazon and Apple are facing a legal challenge from an electronics retailer accused of selling counterfeit goods. Hard 2 Find Accessories (H2FA) claims Amazon wrongly took down its product listings, at Apple’s request, causing it to lose more than $180,000 a month and effectively shutting its business down. It also says the allegations of trading in counterfeits amounts to defamation. Apple said that the products being sold were believed to be counterfeit because they were priced at a steep discount, while customer reviews suggested that they may not be genuine. "Upon information and belief, Apple and Apple’s agents relied on anonymous Internet postings from the above-referenced customers in order to execute its takedown," it says. (Source securingindustry.com)

Sears and Kmart collaborate to expand free store pickup  Sears and Kmart are expanding free store pickup to more than 2,000 locations. The online/in-store collaboration will allow customers to pick up sears.com or kmart.com orders at any Sears or Kmart store and orders will be ready in five minutes or less. (Source retailingtoday.com)

Cyber Criminals Getting the Mob Treatment - Prosecutors applying RICO Act to Russian Kingpin Hacker and other alleged credit-card thieves  Federal prosecutors are using mob-busting tactics to catch and disrupt online crooks, applying a law written to dismantle Mafia families to pursue loose affiliations of thieves scattered around the world. The capacity of hackers and thieves to steal millions of dollars—in part through online marketplaces on which they can trade stolen credit-card numbers—is prompting concern among prosecutors. Law-enforcement officials worry these virtual networks pose a greater threat than many other criminal enterprises because they transcend international borders and can hatch far larger thefts. In the first prosecution of its kind, the Justice Department is arguing the individuals using a website to buy and sell stolen credit-card numbers broke the Racketeering Influenced and Corrupt Organizations Act. The RICO law, originally used to bring down crime families, is now being utilized against hackers who in many cases have never met and don't know each other's real names. Monday, a judge in Seattle unsealed an indictment against Roman Seleznev, a 30-year-old Russian who, along with co-conspirators, allegedly made $2 million in three months selling credit-card numbers stolen from businesses ranging from a Seattle restaurant to the Phoenix Zoo. Mr. Seleznev allegedly sold some of the stolen card numbers for $20 on Carder.su, a marketplace whose members are the target of the first-ever RICO prosecution of alleged cybercriminals. (Source wsj.com)

Vermont Attorney General fines country store $3,000 for failing to notify consumers of security breach  Shelburne Country Store in Shelburne, Vermont, will pay a $3000 civil penalty for failing to inform 721 internet buyers of a security breach of their credit card information. In late 2013, the company’s website was hacked and credit card information stolen. Upon being informed of the breach in January 2014, the company quickly fixed the problem, but did not notify consumers until it was contacted by the Attorney General’s Office. “At this stage of the game, having seen widely reported data breaches at big retailers like Target and dozens of others, we will not accept the excuse that a business did not know of its obligations to report a breach. ” said Attorney General Sorrell. (Source vermontbiz.com)

Companies lose $3.5 million on average per data breach - $145 lost per compromised record  Information security today is seriously big business. While cybercriminals are making hay on the black market with stolen identities and records, cybersecurity breaches are also clearly costing companies much more than before. According to the Ponemon Institute's recent annual report, the cost of a data breach rose to $3.5 million in 2013. Companies lose an average of $145 per compromised record, according to annual Cost of Data Breach Study, while the average cost of a data breach rose 15% last year to $3.5 million. Anyone that still dismisses information security as just an IT issue is delusional. Just the simple mention of the leading US retailer Target should send shivers down the spines of CEOs everywhere. A total of 70 million records stolen that included the name, address, email address and phone number of Target shoppers. The cost to credit unions and financial institutions for reissuing the 21.8 million cards is estimated at $200 million, plus $100 million for Target to upgrade systems and payment terminals. (Source csoonline.com)

70% of Companies Using POS Systems - Retailers - Have No Way of Detecting a Cyber Attack 

Bojangles’ Opens 600th Location - Fastest-Growing Chicken Chain

Crumbs Bake Shops shutters 48 stores

Quarterly Same Store Sales Results

Havertys Q2 up 3.2% with sales up 2.4%
The Container Store Q1 down 0.8% with net sales up 8.9%

 

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



Steve Ippolito and Gary Johnson –
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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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Vicki Cantrell and Robert Moraca from the NRF

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e-commerce
Sponsored by The Zellman Group

The next revolution in online retailing
What if you could replicate the physical in-store experience on the web? The concept sounds incredibly powerful. Retailers could connect product experts with key audiences to demonstrate and sell physical products, just like in-store. Surprisingly, creating just such a live interactive product experience via the web is starting to happen. Some retailers and brands are building their own microsites for this; others are tapping vendors that offer these features as part of a branded platform. Other retailers and brands are using these live web-based events to sell products ranging from high-end boats and outdoor cameras to slow cookers and canning jars. But they’re not just selling the product, they’re selling the experience — the chance to examine products, interact with product experts, and even socialize with like-minded folks in real-time. And the more that experience is a reflection of the brand’s spirit, the stronger the customer connection. (Source retailingtoday.com)

PayPal report cites security fears as annoyance in mobile payments  Consumers continue to resist mobile payments as concerns over data security loom large in ecommerce transactions, according to a new global survey from digital-payments platform PayPal. While 78 percent of respondents said paying online is easy, a full 42 percent said they do not use mobile devices for payment. The survey, which polled 15,105 adult banked consumers in 15 countries, also found that Americans felt much more secure about sharing financial data online than consumers in many other countries. “The study shows that only 29% of the U.S. worries about sharing their data online, versus the global average of 59%, which shows how accustomed Americans have grown to the layers of security and the buyer protection companies like PayPal and others have built into the e-commerce experience, and how comfortable they feel as a result,” said Anuj Nayar, senior director of global initiatives at PayPal. (Source mobilecommercedaily.com)

Target continues to build digital team with three exec hires

"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

Man charged in death of St. Louis store clerk
A St. Louis man is facing charges of first-degree murder in the shooting death of a store clerk during a robbery. 36-year-old Antonio E. Muldrew is also charged with first-degree assault, first-degree robbery and three counts of armed criminal action. Abdulrauf Kadir was an Ethiopian refugee. He was working at a convenience store in the Dutchtown area of St. Louis, seeking to earn enough money to bring his wife and children from a refugee camp to St. Louis. He was shot and killed in a robbery at the store Sunday afternoon. Police say Muldrew took cash from the register after killing Kadir. Muldrew is jailed on $1 million bond and does not yet have an attorney. (Source stltoday.com)

Police investigating string of smash-and-grab burglaries at cell phone stores in Broward early Wednesday morning  T-Mobile, Team Wireless Unlimited, and AT&T stores hit. (Source nbcmiami.com)

Glendale man fires on shoplifting suspects at Arrowhead Mall - Thought his wife/customer feared for her life 

Rhode Island Police searching for credit card theft, fraud suspects  

Credit card skimmer caught on camera in Sandy, OR 

Police arrest second suspect in bungled Fresno, CA jewelry store robbery

Suspect in Clarksville, TN Aldi's robbery arrested in Florida  

Everett, WA Teens face Felony Robbery charges for shoplifting liquor with pellet gun at Safeway 

Liberty, TX Police seeking info on Coats Jewelers Burglary

Jared The Galleria of Jewelry in Charlotte, NC the victim of a $23,000 Grab and Run

Robberies and Burglaries

Cabot Street – Portsmouth, NH – Armed Robbery
Circle K – Robbery – Brentwood, ME – suspect charged in 4 robberies
Conoco – Stuttgart, AR – Armed Robbery
CVS – Houston, TX – Armed Robbery – 3 arrested
CVS – Akron, OH – Armed Robbery – suspect arrested, fled empty handed
CVS – Mountain View, AR - Shoplifting/ Bank Robbery – suspect arrested
Dollar General – Groesbeck Co. TX – Armed Robbery
Four Seasons Mart – Corpus Christi, TX – Shooting/ Armed Robbery – owner shot in leg
Kangaroo – Meridian, MS – Armed Robbery – suspect arrested
Little General – Raleigh, NC – Armed Robbery
Quik Mart – Columbia, TN – Armed Robbery
Reddi Mart – Fort St. John, CN – Armed Robbery
Saleh's Market – Elkhart, IN – Armed Robbery – 3 suspects arrested
Sunoco –Harrison Twp, OH - Shooting – 1 person injured
5550 Colorado Ave. – Washington DC – Homicide/ Armed Robbery – store owner beaten to death
7-Eleven – Newport News, VA – Armed Robbery

 

ORC News
Sponsored by Security Resources


Large-Scale Fencing Operation Busted in Chicago

Walgreens and CVS investigators work with Chicago-area Law Enforcement to Recover $19,000 in Stolen Retail Goods  Three Chicago men have been caught after a one-month investigation, resulting in the recovery of approximately $19,000 worth of stolen retail property, and the seizure of $14,000 USC and 5 vehicles. After a one month investigation, three search warrants were simultaneously executed on July 1 at two locations in Chicago and one in Oak Lawn. The investigation involved the combined efforts of the River Forest Police Department, the Chicago Police Department, the Porter County Sheriff’s Office (Indiana), the Cook County Regional Organized Crime Task Force, the Cook County State Attorneys Office, Walgreens Organized Crime Task Force and CVS Regional Crime Investigations. The investigation was initiated by River Forest Police after a Retail Theft offender provided information on a large scale fencing operation in Chicago. The fencing operation would purchase stolen retail merchandise for approximately 10 cents on the dollar. Further investigation revealed that some merchandise was resold in the Chicago region, while tens of thousands of dollars’ worth of stolen products was shipped to at least two locations in New York on a weekly basis. Also, records were located that indicated that some money netted from the sale of the stolen property was electronically transferred to the country of Jordon.

Thanks to Jerry Biggs, Dir. of ORC Division for Walgreens, for submitting this breaking news!

UK: Southampton 'highly organized' eBay gang sentenced  The gang from Southampton and Eastleigh, were involved in a conspiracy to shoplift from Homebase and B&Q stores in 13 counties. They are believed to have made more than $428,000 selling items such as showers, bathroom fittings and vacuum cleaners online. Six men and four women were jailed. Two others avoided jail. The orchestrator of the thefts George Mason, who was sentenced to five years in prison, was described by the Judge Peter Blair QC as "an arrogant, boastful, 31-year-old who appears to think he was untouchable". The court heard he had 14 previous convictions for theft. (Source bbc.com)

Kroger /Fred Meyer Investigators teams up with the Richland Police and Tri-City Metro Task Force bringing down an International ORC ring  A Pasco man pleaded innocent Tuesday to charges he has been fencing stolen goods for years to resell in a Mexico store. Fernando Cano allegedly placed large orders with people for merchandise -- like Levi's 501 jeans, boots, yard tools and gift cards -- and paid substantially less than the retail value during exchanges in the alley behind his home. Cano's arrest in June came after a two-month investigation by the Richland, WA police Street Crimes Unit and Tri-City Metro Drug Task Force into an area retail theft ring. A search of his home and an outdoor shed turned up dozens of pairs of jeans, money orders and shipping receipts to Mexico, a ledger detailing transactions and $42,000 cash. On April 23, Richland Police Officer Jeff Bickford met with another confidential informant who admitted stealing and subsequently selling an estimated 150 to 200 pairs of men's Levi's to Cano, along with weed whackers, tools and chainsaws. The informant reported receiving $13 to $14 per pair, adding that Cano only buys the jeans in quantities of 10 or more. Richland police contacted Kroger, the parent company of Fred Meyer, and arranged to get property to sell while undercover. The store in late May provided officers with 20 pairs of jeans inside a tote bin for a total value of almost $1,000. The plastic security tags were removed from the jeans but the store tags remained intact, which officers then marked with an ultraviolet pen to help identify if the merchandise was later recovered. (Source tri-cityherald.com)

Four Minnesota men charged with stealing from stores under fake names  Four people from Minnesota are arrested after being accused of creating in-store credit accounts at multiple stores in Eau Claire under fake names. The criminal complaint says Duy-Vu Truong Nguyen, Dat Quoc Ly, Nam Xuan Ngo, and Vinh Xuan Ngo came to Eau Claire from Minnesota and took out credit cards in Menards, Best Buy, and a few other stores in the city. In total, it says the group charged nearly $6,000 to the accounts. (Source weau.com)

Jefferson County, CO Grand Jury indicts 9 in ID theft ring  Nine people have been indicted by a Jefferson County grand jury as suspects in an identity theft ring. The 165-count indictment centers on five women and four men who allegedly used ill-gotten gains to buy methamphetamine and other illegal drugs, according to a Jefferson County District Attorney's Office news release. Members of the alleged ring would steal personal and financial information of people and businesses and use it to create fraudulent checks and identifications, including bogus driver's licenses and state ID cards. The ring would used fraudulent checks to obtain cash, merchandise, personal property, services, gift cards, food and other items. Investigators suspect some of the stolen personal and financial information was taken from mailboxes and cars. Angela Vigil and Sean Wyles are suspected of being the ringleaders and are charged with numerous counts, including racketeering and Violation of Colorado's Organized Crime Control Act. (Source denverpost.com)

Surveillance photos show iPad theft suspects at Walmart in Mansfield, Ohio  Mansfield police are looking for suspects in the thefts of iPads and other merchandise from Wal-Mart on Possum Run Road last week. Police are looking for a man and three women, said Mansfield police Lt. Doug Noblet of the Major Crimes Bureau. The suspects pried open display cases to steal 15 iPads, a laptop computer and a backpack worth a combined $6,000, on the night of July 1. (Source mansfieldnewsjournal.com)

Verizon Store Burglary thwarted by tracking device in Michigan  Seven men, five of them from Michigan, were arrested Saturday after their suspected burglary of a Verizon Wireless store was foiled by a tracking device in one of the stolen phones. At 3:28 a.m., officers Bradley Thompson, Scott Carl, Kevin Black and Daniel Poole responded to the Verizon Wireless store at 191 Newnan Crossing Bypass to check on a burglary alarm with multiple activations. According to Thompson, when officers arrived, they saw a back door had been propped open with a chair, and when they entered the store, they found merchandise scattered all over the floor. (Source times-herald.com)

Columbus, OH woman facing felony theft charges attempting to steal thousands from Sears  A Columbus woman is in jail on a felony theft charge after she was accused of trying to steal more than $1,000 worth of merchandise at a local store. Lesley D. Scaggs, 26, was arrested about 5 p.m. Monday at the Chillicothe Mall Sears store. Sears Loss Prevention saw Scaggs and an unidentified man on video placing items — including drills, drill bits, clothing and a watch — into two shopping carts. The pair took the carts to the fitting rooms, into which Scaggs went with an apparently empty handbag. (Source chillicothegazette.com)

Four Arrested in Connection to Glenpool, OK Theft Ring  Agencies were on scene serving a high-risk search warrant shortly after 4 a.m. this morning at 166th Street South and Highway 75 in Glenpool when a fire broke out. Authorities reportedly deployed tear gas, and are not sure if the tear gas started the fire or if the suspects started it. The warrant was connected to a "very large" theft ring, said Oklahoma Highway Patrol spokesperson George Brown. Three adults and one juvenile were arrested in connection to the incident. (Source ktul.com)

Scottsdale Community College football player arrested on ORC charges at Sports Authority in Tempe 

ORC trio hits Sandy Springs, Ga., CVS for $2,000 in personal care products

Man gets probation in Glendale, AZ Mall theft case

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Dept Mgr LP & Safety
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Metairie, LA
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Target
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Advance Auto Parts
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Advance Auto Parts
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Advance Auto Parts
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Belk
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Dollar General
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HEB
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Macy's
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Ralph Lauren
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Rite Aid
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Rite Aid
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Pasadena, CA
CVS Caremark
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CVS Caremark

 

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On the Move
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Laroussi Elyaddasse was named Director of North America Loss Prevention for NIKE, Inc.
Pam Tapia, CFI was named Regional LP Manager - West for Chanel, Inc.
James Dwyer, CFI was named Zone Manager of LP & Safety for Michaels Stores, Inc.
Brian Willingham was named Regional Director of Sales for USS.
Kevin Crook was named Regional Director of Sales for USS.

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How Resilient People Stand Back Up When Life Knocks Them Down  Don't just lie there, on the ground when life gets hard. Challenges and obstacles will face you at every turn, but things could always be worse. Use these tips to help you bounce back when faced with adversity. (No shame)

Make Sure Your Employees' Emotional Needs Are Met  When trying to figure out how to better engage your employees, most people look at the Hierarchy of Needs. This pyramid is designed to make sure the base needs such as safety are met before any higher needs, but the key is to figure out what your employees want most. (Motivation isn't simple)

10 Cheap Ways to Reduce Employee Stress  When your employees' stress builds up, it can result in loss of productivity and feeling disconnected. Don't let that affect work! Watch your productivity go up while costs stay down with these free and inexpensive ways to help your team de-stress. (Be flexible with their time)

Inspire Wellness in Your Workplace, and Watch Productivity Soar  The missing puzzle piece of effective leadership lies in self-care, lifestyle and personal health. With all of the stress and extensive travel, not to mention high workloads and constant pressure, burnout will probably happen. Use your leadership ability to improve self-care in your team members. (Social support)

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When anyone goes for an interview you’ve got to play to win. You should not allow: any outside variable, any future promotion thoughts or promises, your guilt feelings towards your current employer or boss, your preconceived opinions of the possible future employer, or any miss-step in the process on the part of the future employer disrupt or impact your performance

All interviews have long range implications on your career. The executives interviewing you are part of a community and you'll run into them again at another company. So if you do get involved and go for an interview, commit yourself all the way and play to win. It doesn’t mean you’ve got to take the job. It just means you have to perform at 100%.

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