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July 11, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Frederick Bealefeld was named Vice President & Chief Global Security Officer for Under Armour. In his new role, Frederick will be responsible for the development, implementation and oversight of all global security efforts for Under Armour; including personal security for UA teammates, facility and asset protection. Prior to joining Under Armour, he served over 30 years in the Baltimore Police Department, most recently as the Police Commissioner from 2007 through 2012. Frederick is also a member of the Bureau of Justice Assistance LE Forecasting Group with U.S. Dept. of Justice. Frederick also taught criminal justice at Stevenson University from January 2013 to June 2014. Congratulations Frederick!


The Global Retail Theft Barometer (GRTB) -
the only global benchmark report

Get involved and complete yours today.
This is the last week to participate.
Let's make sure the U.S. is represented.

A few highlights for the GRTB this year:

  • Report will be published in early November 2014

  • Ernie Deyle, ex-VP LP for CVS, will be the author/spokesperson for the report.

  • The questionnaire takes 10 minutes to complete - all online.

  • All information is confidential and goes to The Smart Cube, a research firm that stores and analyzes the results.

  • Checkpoint does not see ANY of the responses - only see the aggregate once the analysis is completed.

  • Report will include 25 countries, assuming there are at least 30 retailers responding for each country.

  • If US does not get up to at least 30 retailers, they will be excluded from the report.

  • Retailers that complete the report will receive a free early copy of the report.

Report: Wal-Mart seeks to keep bribe probe files from investors  Wal-Mart Stores Inc. is reportedly seeking to keep files regarding an internal probe of possible bribes paid to Mexican officials to aid real estate deals out of the hands of investors. According to Bloomberg, Wal-Mart is arguing in a case before the Delaware Supreme Court that the files in question are protected by attorney-client privilege. In 2005, executives in Wal-Mart’s Mexican operation told senior management that at least $24 million in bribes had been paid to Mexican government officials in order to ease the process of building warehouses and stores. The payments were not disclosed in regulatory filings until 2011 and U.S. and Mexican officials are investigating whether the payments can be considered criminal. (Source

35% of consumers would stop shopping at a store where their data was hacked  According to a recent survey of almost 2,000 consumers by software consulting firm Software Advice, another 22% would be much less willing to shop there. Meanwhile, if their confidence in a retailer’s data were secure, 33% of consumers would be much more likely to shop there and 22% would be somewhat more likely. In addition, only 20% of respondents would feel more confident if a retailer communicated that they are taking security measures to protect their personal data. (Source

Weary Retailers Battle Weak Demand, Traffic 
There’s been some improvement from the first quarter — but that’s not saying much. By June it seemed everything was promotionally priced. Retailers would have preferred to be reordering or “chasing” products rather than having to clear them out to make way for fresh goods. “Traffic is really tough out there,” said Rebecca Duval, analyst at BlueFin Research Partners. “The Fourth of July was more promotional this year. It was 50 to 60 percent off. Last year it was 30 to 40 percent off.” (Source

Bed Bath & Beyond Shifts to Seamless Inventory, New POS  The retailer will move forward with initiatives by adding new functionality and assortment to its selling websites, mobile sites and apps; furthering development work necessary for a new and more robust POS system; continuing deployment of systems and equipment to allow stores to take advantage of new technologies and processes; continuing to strengthen IT, analytics, marketing, and e-commerce groups; and opening an additional distribution facility for both direct to customer and store fulfillment. (Source

FTC sues Amazon for kids buying apps/ games using parents' cards  The Federal Trade Commission has accused of billing its customers for millions of dollars in charges racked up unknowingly by children. The FTC filed a lawsuit on Thursday against Inc., seeking to require refunds for parents and other account-holders and to ban the practice in the future. An Amazon representative did not immediately return a call or email for comment. Parents or other account-holders who believe they may qualify for a refund should file a complaint with the FTC. A number of tech companies, including Apple Inc., have faced this issue with applications they sell and the devices that run them. The problem arises when children play application-based games, which offer extras or bonus features for a fee. Consumer groups say young people aren't always aware how quickly costs can add up for extras such as "coins," "stars," and "acorns." (Source

Major League Baseball All-Star week in Minnesota; law enforcement team to prevent counterfeits.  MLB has joined with federal, state and local law enforcement agencies to crack down on the production and sale of counterfeit merchandise, and undercover investigators will be searching for problematic merchandise throughout the Twin Cities during MLB All-Star Week. (Source

Cole Haan looking to open 100 stores a year globally - redesigned - with a new team leading it

Sears 'Shop Your Way' expands rewards program to include 50+ brand-name partners

Shipping companies' computers compromised by malware-infected Chinese scanners

Gordmans continues it's Director of Loss Prevention search - with candidates headed to interviews with CEO

June Same Store Sales

Gap Inc. down 2% with net sales up 1%

Quarterly Same Store Sales Results

Tractor Supply Co. Q2 up 1.9% with sales up 8.8%
Rent-A-Center Q2 up 0.6%
Lumber Liquidators Q2 down 7.1% with net sales up 2.3%

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Are Mobile Payment Apps a Boon for Both Customers & Fraudsters?  Clearly consumers love the ease of mobile remote deposit -- the ability to deposit checks anywhere, any time with their smartphones. Now considered a competitive differentiator for financial institutions, mobile remote deposit capture (RDC) moves customers away from more costly item processing systems and expensive branch and ATM visits, so it's a boon to banks. But could the age of mobile payment apps, a valuable extension of self-service banking, prove to be a boon to fraudsters, too? The truth is, much like customers, fraudsters follow speed, flexibility, and convenience. As past evidence shows, the more restrictions are placed on customers -- like low daily item and amount limits and multi-day holds -- the higher the frustration and customer attrition rates are. How do financial institutions manage to keep customers happy without helping fraudsters? Unlike other areas of fraud, deposits require both monitoring and potentially restricting access to money coming in and going out of the account. Keeping the fraudster in mind, the check-image clearing process should move only so fast -- to maintain certainty that the funds being made available actually are available right up until the time the check clears. (Source

Online banking following retail's digital path
Banking apps for mobiles and tablets have now reportedly been downloaded more than 14.7 million times, which represents a 2.3 million rise since January and is equivalent to a rate of around 15,000 per day in 2014. Internet banking services typically receive seven million log-ins a day, too, as consumers increasingly conduct their personal finance affairs in the digital world. Another finding, which will directly impact the retail industry, suggests that spending on contactless cards is expected to rise to 6.1 pounds million a week this year. Numerous retail indices and individual retailer trading results highlight how online sales are growing as a percentage of the overall UK retail market – that is no longer a surprise – but e-tail trade association IMRG's latest eCommerce report, indicates that it is increasing at a faster-than-expected rate. (Source

Email drives 27pc of sales on mobile, social just 0.6pc: 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
Ontario Provincial Police launches new online crime reporting system.  Victims of crimes such as theft from vehicles and property damage can now report these to provincial police online. Ontario Provincial Police say the new Citizen Self Reporting portal will allow the public to report select, non-emergency incidents. An officer will not be immediately dispatched, which the force says will free up police to focus on other, more serious crime enforcement efforts. People will only be able to report incidents that do not involve an injury, a suspect or evidence. If requested, an officer will be dispatched. The system is meant to make reporting more convenient and police say it’s hoped more crimes will be reported as a result. The system is available at (Source

Canadian Tire to pay $7k to customer for being handcuffed to chair after refund attempt  Court was told the customer brought back the training wheels, which were the wrong size, and presented his bill but was denied a refund or exchange by an employee and the manager on the grounds they were no longer in the original packaging. He then threw them on the ground and attempted to leave the premises, but was intercepted by four security guards, who forced him into a room and handcuffed him to a chair until the arrival of police 30 minutes later. Police released him after hearing both sides. No charges were laid. (Source

Police looking for suspects in Airdrie Walmart $2000 theft. 

Man in custody for Superstore robbery in Pitts Meadows, BC.

Pace of online sales growing five times more than traditional retail

Big Data
Sponsored by Verint

Decoding myths about security, data breaches - Fact: Poorly managed breaches destroy reputations  Security and data breaches don’t favor one organization or industry over another and are taking place every day. Companies should consider the “how” of a breach — as opposed to the “who” — to evaluate their exposure to a similar event. Retail operations remain a target to hackers due to the volume of information in their systems, including credit card information, confidential information for loyalty programs, and employee data. The victims of these attacks are an organization’s most valued assets: their employees and customers. Until recently, many thought data risk was trivial compared to other threats such as theft, slip and falls, and workplace violence. But with data compromise occurring at much greater frequency, it’s one risk you don’t want to underestimate. Reputational harm stemming from a poorly managed data breach can be catastrophic. (Source

Survey says 45% of shoppers don't trust retailers to keep their data safe  According to a recent report by retail marketing firm Interactions, 44 percent of shoppers surveyed have had personal information stolen from a security breach. The risk is higher for the core millennial market, with 60 percent of 18-to 24-year-olds indicating they have had their information stolen. Of those shoppers surveyed whom have had their information stolen through a security breach, 85 percent tell others about their experience. (Source

Future LP Security Execs will have Greater Focus on Data Protection

Data Sharing: 'It Takes Two to Tango'

iBeacon shipments to surpass 60 million units in 5 years

Chinese Hackers Pursue Key Data on U.S. Workers

Retail Crime News
Sponsored by NuTech National
Deals and Discounts Furniture Owner arrested in $1 Million Arson in Jonesboro, LA. The State Fire Marshal's Office is reporting an arrest has been made in a fire at Deals and Discounts furniture store in Jackson Parish. Miriam Kay Gunter turned herself over to deputies Thursday evening, charged with arson with intent to defraud. Brant Thompson with the State Fire Marshal's Office says it's believed that Gunter burned down her own store in order to collect insurance monies. He says the May fire caused more than $1 million commercial loss. Since her arrest, Gunter is out of jail on $10,000 bond. If convicted, Thompson says Gunter faces up to 5 years in prison and up to $20,000 in fines. (Source

Shots Fired At Lowe’s in Springs, CO as Shoplifters Flee Scene.  Shots were fired at a Springs, CO Lowe’s home improvement store Thursday afternoon as a pair of shoplifting suspects fled the parking lot. The incident happened at 3:39 p.m. Thursday at the Lowe's on North Academy and Platte. According to police, the suspects were spotted stealing merchandise from the store. When confronted, they ran to a car in the parking lot, where a third suspect was waiting. Immediately after jumping into the vehicle, police say someone inside fired a weapon. No one was injured. Fifteen minutes later, police spotted a car matching the vehicle description and tried to pull it over. The driver sped off and was able to get away. The occupants later ditched the car. Police are still looking for the suspects. (Source

Conspirators sentenced in massive Tyler, TX Identity Theft Ring.  The case of an elaborate identity theft ring that victimized more than 50 people and put two dozen criminals behind bars, is finally over. Thursday, the last defendant, 26-year-old Blake Gee, was sentenced to 30 years in prison. According to Tyler police, the ring stole sensitive information like names, addresses, phone numbers and social security numbers. Then, they applied for online loans, deposited that money into different bank accounts and spent the money after splitting it among themselves. In May 2013, a supposed ring leader, Brandon Sessions, was among the first arrested. In the days following Sessions' arrest, 20 other people were arrested. Kenneth Biggs, Smith County Assistant District Attorney. prosecuted the cases after Tyler Police uncovered the ring. In total, 22 people were sentenced after taking out false loans that damaged the credit of more than 50 victims. However, it's the organizers and recruiters to the ring that got handed the heaviest punishments. (Source

Charges dropped against man accused in Rite Aid and Albertson’s pharmacy robberies in Washington Co, WA pending further investigation.  A motion to dismiss robbery and theft charges against 28-year-old Adam Michael Horstman was filed Wednesday and he was released from the county jail the same day, said Senior Deputy District Attorney Jeff Lesowski. The charges were dropped because the case required additional investigation, Lesowski said Thursday. Hillsboro police accused Horstman of robbing pharmacies at a Rite Aid and two Albertsons in Hillsboro as well as an Albertsons in Beaverton in May and June. The suspect stole bottles of Oxycontin, Oxycodone and Ambien during the robberies. Horstman was arrested on July 4 after police say he went to the Hillsboro Rite Aid four days earlier to get a legitimate prescription filled and pharmacists identified him as the robber. When investigators showed Horstman a printout of surveillance footage showing the suspect from the May Rite Aid robbery, he said it was him in the photo. (Source

Suspect sought after attempted robbery and shooting at Santa Rosa Jewelry store. Santa Rosa jewelry store owner Ty Visscher has been robbed before and has even shot at robbers before, but that didn't make it any easier when he ended up in a gunfight after two armed men burst in Thursday afternoon. "To come in so aggressively," he recounted, "no care in the world but to take something for the dollar, and not caring about peoples lives, it's traumatic." "He jumped over the counter, grabbed her by the hair, then the shootout began," explained Bob Oropeza, who's wife works at Bennett Vallley Jewelry. She was there when store manager Suzanne Dodd was struck in the arm by a bullet. "They started shooting and Ty started shooting, and it was a real live shootout; unbelievable," said Oropeza. At that point, Visscher chased the robbers from the store, and firing from the doorway, hit one of them twice. The suspect fell to the ground and an off-duty cop at a neighboring restaurant ran outside to keep him there. (Source

Dept. of Homeland Security raids Detroit computer store.

Two men plead guilty smuggling six million cigarettes into Rhode Island

Four arrested as London's Dorchester hotel hit by second smash-and-grab raid in a month

Serial shoplifter wanted in Rochester, N.Y.  Police on Thursday reported that Domenic Beraldi, 20, a transient with strong ties to Rochester, is being sought by police on multiple charges, including felony robbery, receiving stolen property, theft by deception and criminal trespass. (Source

Zales in Poughkeepsie, NY the victim of a Grab and Run, merchandise valued at over $2000

Distraction Thief hits Kay Jewelers in the Penn Square Mall, Oklahoma City, OK; Diamond ring valued at $1099.

Grab and Run at a Zales in Danbury, CT; male suspect fled with 3 pairs of diamond earrings valued at over $10,000.

Police are looking for this vehicle in connection with the armed robbery of the Bluefield, WV Kmart.

Robberies and Burglaries

- Alon Station - Abilene, TX - Armed Robbery - 4 suspects arrested
Casey’s General - Fairmont, MN - Armed Robbery - former employee arrested
Crown Pawn - Hollywood, FL - Burglary
CVS - Columbus, OH - Armed Robbery
CVS - East Baton Rouge, LA - Armed Robbery
CVS - W. Springfield, MA - Armed Robbery
Eastwood Grocery - Rochester, MN - Armed Robbery
Flash Fresh - Douglas, GA - Armed Robbery - Police Officer shot
Kangaroo - Baker CO, FL - Armed Robbery - Couple turns in grandson
Kangaroo - Spring Lake, NC - Armed Robbery
- Modern Tactical Gun Shop – Lansdale, PA - Burglary
Old Time Pottery - Madison, AL - Armed Robbery
People’s Pharmacy - Escanaba, MI - Armed Robbery - surveillance photo released
Speedway - Middleport, OH - Armed Robbery
Stop and Save - Fall River, MA - Armed Robbery - connected to 4 or more robberies
Valero - Oklahoma City, OK - Armed Robbery
Walgreens - Omaha, NE - Armed Robbery
7-Eleven - East Moline, IA - Armed Robbery - 2 arrested


Press Releases

CHICAGO, July 10, 2014 – Wicklander-Zulawski & Associates, Inc. (WZ), the industry leader in interviewing and interrogation training, takes the issue of false confessions seriously. In a continued effort to educate interviewing professionals about the dangers and warning signs of false confessions, WZ released its latest blog, “7 Danger Signs of a False Confession” by Angela Nino, CFI, speaker and investigator with WZ.

The blog educates readers on the three categories of false confessions as well as the seven “red flags consistent with false confessions” and how to avoid them.

Read the “7 Danger Signs of a False Confession” here

“It’s extremely important to WZ to ensure we educate the interviewing professional on what to look for and how to test to ensure the confession they receive is legitimate,” said Shane Sturman, CFI, CFE, president and CEO of WZ. “The WZ Method and our company’s foundation is built on finding the truth. We teach this principle in every interaction we have with interviewing professionals: Investigate and interview to discover the truth.”

WZ is also supportive of various organizations that work to free those wrongfully convicted due to a false confession.

Amber Virgillo


ORC News
Sponsored by Security Resources

Two Albertsons’ employees and 3 others arrested in credit card scheme in Albuquerque, NM. Five people are under arrest, accused running a sophisticated credit and debit card theft ring that started with a waiter at an Albuquerque restaurant. Police said the group racked up more than $15,000 in fraudulent purchases. “I'm not just surprised, I'm shocked,” said Salim Khoury who owns Flamez Burgers & More. According to court documents, one of the restaurant’s waiters, John Ocanas, admitted to using what’s called a “skimmer” to record customer’s credit and debit card information. In the court documents, detectives said Ocanas would give the stolen card numbers to Andrew Aragon and Dustin Swanson. The two men would allegedly make fake credit cards with the stolen information. Aragon’s girlfriend, Jessica Lopez, worked at the money counter in Albertsons. She’s accused of using those fake cards to buy more than $15,000 worth of gift cards and money orders. Police also arrested fellow Albertsons cashier Tonya Russell because they said she helped with the scam. Four of the suspects were in court Thursday afternoon. They’re all facing felony charges including fraud, identity theft and conspiracy. (Source

Police investigate fight, uncover Bellevue, WA ID theft ring. Bellevue police made four arrests, uncovering what investigators call a prolific case of identity theft. Detectives removed several hundred documents from a unit at the Hidden Creek Condominiums. Some type of fight or disturbance last week led officers inside the unit where they found several people with outstanding warrants. One of the people was also holding three fake Washington I.D. cards. Police got a search warrant and discovered an I.D. factory. Police said they've confiscated 39 false Washington I.D. cards and driver licenses, 67 fraudulent credit cards, 28 false government I.D. cards, seven false Social Security cards and several hundred forged checks. There are at least 50 victims, according to police who said a few have already told investigators that they've been victims of break-ins or theft. (Source

Employee Theft at Lowe's Leads to Mother, Daughter Arrest in Milford, CT.  Milford police say Garbriela Deleon, 20, of Van Rensselaer Avenue in Stratford, who worked at Lowe’s is accused of allowing her family to receive merchandise totaling $2,750 and then returning it for cash. Police said on April 27 they received a complaint regarding an employee theft that occurred at Lowe’s. Investigation led to an arrest warrant being issued for Deleon, who is accused of providing her relatives with store merchandise and not charging them for the items. On three separate occasions in December, March and April the approximate value of the loss to the store was $2,750. An arrest warrant was issued for Deleon’s mother, Griselda Torres, of the same address as Deleon, who is accused of receiving the merchandise and then returning it for cash and gift cards. (Source

Two arrested in Meijer shoplift in Muncie, IN; nearly $7,000.  Two Ohio men were arrested early Monday after shoplifting $6,938 in electronics merchandise from the Meijer store in Muncie. After an employee noticed around 4:30 a.m. that an entire display area of electronics was missing, video surveillance showed two men loading the merchandise inside a bag, city police patrolwoman Amy Kesler said. A person contracted to work at the store gave police a written statement that he witnessed one of the men pushing a cart full of merchandise out of the store. After the Muncie Meijer store alerted the Anderson Meijer store of the theft, the same two suspects were arrested leaving the Anderson store. (Source

How Jay-Z Sparked a Champagne Theft Ring; Credit card scammers target a French bubbly that the rap mogul turned into the new Cristal. In 2006, rapper Jay-Z singlehandedly changed the market for high-end champagne. Until then, the luxury bubbly of choice had been the $500-a-bottle Cristal, which was one of rap’s most frequently mentioned brands, along with Mercedes-Benz and Gucci. But in his music video for “Show Me What You Got,” Jay-Z waves away a bottle of Cristal while seated at a Monte Carlo card table, then nods in approval as the waiter presents a gold bottle of Armand de Brignac with a raised-pewter logo in the shape of the ace of spades. But as the champagne known as the Ace of Spades has become the go-to bubbly for the jet set, it has also become a favorite target of credit credit fraudsters, according to wine merchants and a liquor security expert Vocativ contacted. “Ninety-nine percent of the fraud attempts [we see] are for this high-end champagne,” says Alex Gorelik, director of operations for Wine Anthology, a retailer in Washington, D.C. “There are a lot of people who try to buy Ace of Spades and can’t afford it, [so] they use fake credit cards.” (Source

Photos released of ORC female duo stealing 15 bottles of perfume from Nordstrom Rack store in Glendale, CA.

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The Secret to Becoming a Better Manager 
Not everyone is cut from the same cloth, and that applies to managers too. What separates the good managers from the great ones is if they can unlock the potential of their employees and not just telling them what to do. The key to being a great manager is if you ask your employees these "powerful questions." (Ask 'what else?')

11 Things the Military Teaches You About Leadership  It's no wonder why some of the biggest names in the business world were in the military. The skills they learn and the experience they receive help shape them into inspiring leaders. Even if you've never been in the military, you can learn a thing or two from a veteran about leadership, life, and business. (Always look sharp)

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As many of us speed through our days and work hard to accomplish our objectives, oftentimes the one thing that suffers is our active listening skills. These skills are important if we expect to truly change behavior or direction as quickly as today's pace requires. Active listening is difficult for some and requires an individual to hear things they may not be open to hearing or just hearing things that aren't said because oftentimes it isn't what's said that's important, it's what isn't said that can mean the most. Hearing that usually takes place upon reflection because most of us aren't intellectually fast enough to respond instantaneously. Active listening is a tool and a skill that can help an executive every day. It merely requires the thought and the practice.

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