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July 31, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Curtis Stoves, CFI was promoted to Director of Loss Prevention for Books A Million.  Curtis was previously the Senior Regional Loss Prevention Manager for the retailer before receiving this promotion. He has been with Books A Million for over three years and before that he worked in loss prevention with Rich's-Lazuras-Goldsmith's for eighteen years. Congratulations Curtis!

U.S. Government Warns Retailers About Malicious Software - Hackers Using The Backdoor With Outside Contractors & Employees to Tap Into Retailers Networks - Using Remote Access Software  The U.S. Department Of Homeland Security warned retailers about a type of malicious software attacking point-of-sales systems, dubbed "Backoff," that it said is undetectable by most types of anti-virus software. The agency released a 10-page advisory about the payment-card-stealing virus Backoff on Thursday, saying it has been observed in at least three forensic investigations into breaches of payment systems. Backoff is a family-of-point of sale malware first identified in October 2013 and with capabilities that include scraping memory for track data, logging keystrokes and injecting malicious stub into explorer.exe files, DHS said. The software made by Apple, Google, and Microsoft can be used to deploy high -speed programs that guess login credentials until they hit the right one and will go virtually undetected. The report provides insight into what retailers are up against as hackers find ways into computer networks without tripping security systems. Two people with knowledge of these investigations say that more than a dozen retailers have been hit. They include Target, P. F. Chang’s, Neiman Marcus, Michaels, Sally Beauty Supply, and as recently as this month, Goodwill Industries International, the nonprofit agency that operates thrift stores around the country. Once inside the network, the hackers deploy malicious software called Backoff that is devised to steal payment card data off the memory of in-store cash register systems, the report says. After that information is captured, the hackers send it back to their computers and eventually sell it on the black market, where a single credit card number can go for $100. At Target, Mr. Maiorino said he planned to build a security program as tough as what was expected from military contractors. Editors Note: Third party contractors and employees at home or even on their smartphone accessing the network are all vulnerable and are in essence the back door. So are you by the way! (Source nytimes.com) (Source wwd.com)

McDonalds Loses $27M Jury Verdict Over 2 Teenage Deaths - Claim of Lax Security  The victims in the case were beaten to death by a mob at a McDonald’s in February 2012. The families of both teens sued McDonald’s, claiming the restaurant chain didn’t protect patrons at its College Station, Texas, location even though local police had been repeatedly called to break up fights there. McDonald’s will appeal, Terri Hickey, a spokeswoman for the Oak Brook, Illinois company, said in an e-mailed statement. “We respectfully disagree with the jury’s verdict.” The restaurant where the attack occurred had repeatedly drawn police attention for large unruly crowds and fighting during late-night hours, according to a plaintiffs’ document summarizing depositions and police reports. "This restaurant had a horrible history” with police responding more than 200 times to complaints over the previous three years, Hamilton said. Local police responded so often to fights at the restaurant that they viewed the site as a “drain on their resources,” he said. (Source bloomberg.com)

Company downsizing CEO shot by soon to be demoted executive in Chicago
  An executive of a Loop company, upset that he was being demoted, walked into the CEO's office on LaSalle Street this morning and shot him twice before turning the gun on himself, police said. The executive, 59, was dead on the scene from a gunshot wound to the head. The CEO of ArrowStream, Steven LaVoie, 54, was wounded in the head and stomach and was in critical condition at Northwestern Memorial Hospital. The executive, whose name has not been released by authorities, had been told last Friday that he was being demoted as the company was downsized, according to Chicago Police Superintendent Garry McCarthy. He asked for a one-on-one meeting with LaVoie this morning in his 17th floor offices at 231 S. LaSalle St., McCarthy said. Workers heard shots around 9:55 a.m. The executive was found dead at the scene and LaVoie was wheeled out of the building in a stretcher and taken to Northwestern. “Apparently he was despondent over the fact that he got demoted," McCarthy said of the gunman. "It's a workplace violence issue." (Source chicagotribune.com)

"Real-Time Retail" - The Omnichannel re-invention of the Retail Industry - What does it mean for LP  The omnichannel trend has been underway for many years now, but Boston Retail Partners indicates that more than 90% of retailers are pursuing omnichannel supply chain re-invention efforts the management consulting firm describes as “unified commerce.” "Transforming the supply chain to meet the needs of a buy anywhere/anytime customer requires significant resources and investments. Retailers able to deliver real-time retail as part of a compelling value proposition will certainly reap the rewards.” The real question for all of us in LP is how does it impact risk and all of the elements of shrink? What exposures does it create and can we stay in front of the data flow and fraud as 93% of retailers are focused on unified commerce? From mobile payments to home delivery - the possibilities are endless. From hackers to crowd-sourced drunk drivers delivering merchandise. The LP exposures are just redefining our business model as well.  (Source retailingtoday.com)

Price Chopper team leader files class action lawsuit claiming not being fairly compensated for overtime work in Mass.

Fed Court approves class action lawsuit against 36 NY Applebee's over avoiding minimum wage & overtime

July Same Store Sales Results
Rite Aid up 4.6%, front-end up 1.5% & pharmacy up 6%, with total sales up 4.1%

Quarterly Same Store Sales Results
Whole Foods Q3 up 3.9% with revenue up 1%
Havertys Q2 up 3.2% with net sales up 2.5%
Sally Beauty Q3 up 2.1% with net sales up 4.1%
hhgregg Q1 down 10.2% with net sales down 10%

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Loss Prevention News Network
"Live in Ft. Lauderdale at the NRF Show 2014"

NRF's Women in LP Caucus

Joan Manson, VP of LP,
Benefits, Payroll & Legal for The Container Store and Chair of the NRF’s Women in LP Caucus


Joan Manson, VP of LP, Benefits, Payroll & Legal for The Container Store and Chair of the NRF’s Women in Loss Prevention Caucus Committee, sits down with Joe LaRocca to talk about the history of the Caucus and its mission to help grow and develop the presence of women in the LP field. With an annual meeting at the NRF Show, quarterly conference calls with industry leaders and a highly successful mentoring program, the Women in LP Caucus offers countless opportunities for networking and professional development to both men and women alike.

Episode Sponsored By:


LPNN Quick Take #10

In this LPNN Quick Take, Amber Virgillo meets up with Hedgie Bartol, Business Development Manager, Retail, for Axis Communications. Listen in on their lighthearted discussion as they discuss their backgrounds including Hedgie’s surprising degree. And on the more serious note what’s happening at Axis and how they are driving the shift to IP including their upcoming webinar.


Solution Providers, have a video or commercial you want to publish? Contact us.

LPRC All Star Member Program
 

The Loss Prevention Research Council (LPRC)
July 2014 All-Star Member Selections:

Retail Partner Winner: Dan Geiger, Target

Dan Geiger is the Director of Field Operations at Target, a leading US broadline retailer, and a valuable LPRC member. We sat down with Dan to gain insight on his experiences:

LPRC: Dan, please describe what your company does in two sentences.

DG: Target is an upscale discount retail company that provides high-quality, on-trend merchandise at attractive prices in safe, clean, spacious and guest-friendly stores. In addition, Target operates an online business, Target.com.

LPRC: One tip to help other members like you get more out of their LPRC membership?

DG: Target was a charter member of the LPRC and last year rejoined the council to re-establish our footprint in the Loss Prevention industry. In our first year back we have been impressed with the open dialog that the LPRC facilitates between retail companies that have similar asset protection opportunities. We are learning a lot from these interactions. The LPRC team is a terrific resource for our team to leverage to explore new solutions to long standing industry issues. They also have an incredible library of historical research that allows us to learn where others have found success in improving Loss Prevention programs that we can apply to our current needs. We are excited about the work that the LPRC and the University of Florida are doing to bring solutions to the retail community.

LPRC: What’s your ideal lunch partner (historical figure, celebrity, etc.)?

DG: Ronald Reagan - President Reagan was a unique and fascinating person. He was firm in his conviction and stayed true to his ideals; but he also showed everyone a lighter side to being a world leader. He had a sense of humor and an empathetic approach that brought people together to rally behind him and our country. He would have been a very interesting person to talk to over lunch.


Solution Partner Winner: Dan Reese, Bosch Security Systems


Dan Reese is Managing Director at Bosch Security Systems, a leading LP solution provider, and a valuable LPRC member. We sat down with Dan to gain insight on his experiences:

LPRC: Dan, please describe what your company does in two sentences.

DR: Bosch Security Systems works closely with an extensive network of certified dealers and integrators to deliver dependable communications, security and life safety solutions to the market. Our broad portfolio of products and systems for video surveillance, intrusion and fire detection, access control and communications are used by major retailers throughout the world.

LPRC: One tip to help other members like you get more out of their LPRC membership?

DR: I believe that active participation in relevant working groups is the most effective way to maximize the benefits of membership. In my particular case, the Video Analytics working group provides insights into real-world issues faced by LP professionals that analytics can help to solve. And I believe access to StoreLab will prove invaluable to demonstrate performance in an actual store environment.

LPRC: What’s your ideal lunch partner (historical figure, celebrity, etc.)?

DR: I think it would have been fascinating to have met Thomas Edison. His passion for invention coupled with his business acumen contributed tremendously to our society world-wide. His ability to take ideas from concept, to the lab, then to the mass market were extraordinary.

 

e-commerce
Sponsored by The Zellman Group

Increased US Credit Fraud to Override EMV Introduction?  Forbes reported that the EMV chip rollout in credit cards could lead to increased fraud in the U.S. In fact, Allen Friedman, director of payment services at Ingenico, told Forbes that “Sixty –seven percent of the UK-issued card fraud is from the U.S.” Therefore, said Forbes, fraud is very clearly already here. Julie Conroy, research director for retail banking at the Boston-based Aité Group, said in her EMV report that fraud is expected to move to ATMs and e-commerce fraud – or “card-not-present.” But, according to Friedman, a U.S. delay in moving to EMV “has meant that fraudsters can use the mag stripes on European cards or fraudulent transactions at American merchants.” (Source pymnts.com)

Many e-retailers plan to start holiday marketing in September  The majority of online retailers plan to start their marketing push in September (42%) and October (23%), according to a survey of clients of ChannelAdvisor Corp., which helps retailers sell on some 20 online marketplaces. 12% say they will get started in August and 14% will wait until November. 7% of retailers planned to start in July, and 1% in June or earlier. 41% of retailers plan to offer free shipping, 33% say they’re going to stock more product inventory than last year and 37% say they’re going to discount products as part of the holiday shopping season. (Source internetretailer.com)

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet

 

Press Releases
 

SOS Security LLC Acquires Asset Protection Associates, Inc.


PARSIPPANY, N.J. -
SOS Security LLC (“SOS”), one of the largest security companies in the U.S., is pleased to announce the recent acquisition of Asset Protection Associates, Inc. (“APA”). Founded in 1992 and headquartered in Alpharetta, Georgia, APA specializes in loss prevention for a wide range of iconic domestic and international retail brands. APA has successfully provided loss prevention services including, uniformed protective services, mystery shopping and operational auditing to these organizations.

“We are very excited to have the opportunity to work with the management team of SOS and capitalize on their substantial resources throughout the U.S. and abroad. We look forward to the potential of expanding services to our clients as a result of our new partnership with SOS," said Bob Larkin, President of APA. Mr. Larkin further stated, “I believe that SOS’s philosophy of dedication to their clients mirrors the values that APA has provided for the past 20 years.”

Edward B. Silverman, SOS’s Chairman and Chief Executive Officer, stated, "APA is a clear-cut strategic fit for our company. Led by a talented and experienced management team, they have displayed consistent growth in the retail security and loss prevention market. APA’s focus on their customers’ needs is consistent with the SOS approach." Mr. Silverman continued, "APA’s expertise in servicing retail clients will complement our overall loss prevention service offering. We are pleased to have APA’s management team join SOS and continue to support the needs of their clients, delivering the same outstanding service levels they have come to expect."

The acquisition of APA will further support SOS’s commitment to providing professional loss prevention services to retail companies in the US and overseas.

Read more here.

 

ORC News
Sponsored by Security Resources

Credit card fraudster gang hits Target, Lowes, Walgreens, Dollar General, and Walmart stores for $66,000 in gift cards in Sioux Falls  Sioux Falls police are searching for at least eight people who are accused of using stolen credit cards to purchase tens of thousands of dollars in gift cards. From July 19 to 22, two women purchased more than $66,000 worth of gift cards from several local businesses – Target, Lowes, Walgreens, Dollar General and Walmart, police say. The police department received several fraud reports from people from outside of South Dakota saying their credit cards had been used in Sioux Falls. Other fraud cases have been reported in Flandreau and Madison, as well as other states. Detectives think the women are working with six other men, Larsen said. He said detectives don’t think any of them are from South Dakota. (Source argusleader.com)

Three Arrested in Muhlenberg, KY as Part of Theft Ring Investigation  Several suspects have been arrested in connection with an investigation into a large theft ring in which the stolen items were traded for drugs. According to a Greenville Police Department report, the department received a report of power tools stolen from Malone Lumber July 23. After an investigation, it was discovered that several power tools were stolen with a value more than $500. The report said the power tools were traded for drugs at a Hopkins County residence. The incident was discovered to be a part of a larger theft ring with the stolen items being traded for drugs. (Source surfky.com)

Save-a-Lot employee and mom accused of theft from daughter's workplace in Magnolia, AR  Magnolia Police have arrested a mother and her daughter after a two-month investigation into thefts from the Save-a-Lot grocery store. On June 7, Cassandra Woodard, 30, a store employee, was arrested and charged with theft under $1,000. The investigation was left open by the police department. On Monday of this week, Dickie Adcox, 48, the mother of Cassandra Woodard, was arrested and charged with four counts of theft of property under $1,000. She is accused of assisting Woodard remove items from the store without paying for them. (Source magnoliareporter.com)

Cleveland-area couple tried to take more than $2,400 worth of apparel from Macy's  A couple were arrested at the Sandusky Mall Monday afternoon after they tried to steal thousands of dollars in clothes. Leroy Glass, 57, and Careida Pollard-Glass, 62, were both charged with felony theft and criminal tools possession. The pair had entered Macy's around 3 p.m. Monday and began browsing the aisles. Pollard-Glass soon took out a plastic bag and allegedly began placing clothing items inside. The couple then meandered over to the pricey Polo Ralph Lauren display. They allegedly grabbed a second white bag from Pollard-Glass's purse and began shoveling high-end clothing items in that bag as well. A security guard stopped the pair after they walked out the Macy's entrance and found $2,465 worth of merchandise in the bags. (Source sanduskyregister.com)

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Vendor Spotlight
 

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We have experience in various systems including:
 

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CCI is a custom systems provider, not a manufacturer. We are free to select the most appropriate products available in the marketplace and, thereby, we can offer you the highest quality security solutions that demonstrate exceptional value. We partner with each client in performing a comprehensive facilities, financial, human, and overall security risk assessment. Our team of dedicated professionals then design, install, and service electronic security systems that are custom tailored to fulfill each individual client’s needs.
 

Our model is to deliver individualized, customized, proactive customer service. Our dedication has earned us the Fast 50 award from SDI, as one of America's Fastest Growing Systems Integrators!


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Retail Crime News
Sponsored by NuTech National

1 dead, 2 injured in shooting at Vons parking lot in Escondido, CA  One person is dead and two others were injured after they were shot in the parking lot of a Vons grocery store in Escondido Wednesday night, police said. The incident occurred at about 8:20 p.m. at 351 W. Felicita Ave. Escondido police said the three victims were sitting together in a vehicle in the Vons parking lot when they were shot. Two men were taken to Palomar Medical Center, each with several gunshot wounds. One of the men later died. The third man suffered a gunshot wound to the leg. He is expected to survive. (Source 10news.com)

Woman dead after small plane crashes in Costco parking lot in Kearny Mesa, CA  One woman is dead and another was injured after a private plane clipped a department store just west of Montgomery Field and crashed into an adjacent commercial parking lot Wednesday, police said. The Mooney M20L went down in a parking lot that serves a Costco and a Target about 5:30 p.m. after a landing attempt at the municipal airport went awry. Witnesses described an all-out rescue effort by store employees and passersby, rushing in amid a small fire after the crash. (Source 10news.com)

1 arrested, 1 still on the run after Walmart Burglary in Portage, MI  One man has been arrested, while police continue to search for another suspect after an alleged burglary at a Walmart store in Portage. The Portage Department of Public Safety received a call from Walmart employees at 4 a.m. Thursday that a man had stolen from the store and then drove off at a high rate of speed. After leaving the parking lot, police say he lost control of the car and crashed on the east side of Shaver Road. The suspect was arrested for operating under the influence of drugs and is being held at the Kalamazoo County Jail. There was also a passenger in the suspect’s car during the incident who took off on foot and was not found. (Source woodtv.com)

BC Wireless Store Workers Held at Gunpoint in Daytime Stickup in Midtown, NYC  An armed gunman hit a Madison Avenue cellphone shop Wednesday afternoon for the second time this year, making off with two bags full of smartphones, the owner said. Mandeep Kumar, 39, the owner of BC Wireless at 218 Madison Ave., is fuming mad over the thefts, blaming police for not taking the first robbery attempt seriously, he said. (Source dnainfo.com)

New "pharmacy safe" placed in Tulsa Walgreens could lower robberies  In an effort to halt the number of pharmacy robberies the company deals with, Walgreens has installed new time-delay safes in all its stores in Oklahoma and northwest Arkansas. Oklahoma is among the worst states in the nation when it comes to deaths from prescription drug overdoses, according to the Centers for Disease Control. (Source news9.com)

Montana woman charged in theft of 6,000 pills  A female suspect in the armed robbery of a Havre pharmacy is in police custody and waiting to answer five felony charges including assault with a weapon, criminal possession with intent to distribute dangerous drugs and criminal child endangerment. Court documents identify that suspect as Arlene Morsette, 34, a resident of Havre. On July 21 a woman walked into Western Drug Pharmacy in downtown Havre, leveled a gun at the clerk and demanded cash and prescription medications. A few minutes later the woman walked away with more than 6,000 pills including Hydrocodone, Oxycodone, Ambien, Xanax and about $400 in cash. (Source greatfallstribune.com)

Thieves swipe cash with card skimming near University of Central Florida  Recent cases of credit-card skimming have prompted the UCF Police Department to issue campus-wide precautions. “There has been some activity in our area and we wanted to make sure that students have the tools to identify a card pump that looks suspicious and also take action, should they be a victim of credit-card skimming,” said Courtney Gilmartin, public information officer for UCFPD. (Source centralfloridafuture.com)

Payless Shoe Armed Robbery suspect in Fort Smith, AR pleads not guilty  A Fort Smith man accused of robbing a shoe store and convenience store in less than 24 hours pleaded not guilty to two counts of aggravated robbery Wednesday in Sebastian County Circuit Court. Larry James Martin, 19, was out of jail on a $5,000 signature bond when the stores were robbed, after he pleaded not guilty to commercial robbery in February. Martin is accused of walking into Payless Shoe Source about noon June 29 and asked where he could find size 13 tennis shoes. He then walked to a counter with a shoebox, set it down, pulled out a gun and demanded money. The clerk said Martin never threatened her, gave Martin money from the safe and he left the store walking, not running. The clerk later identified Martin as the man who robbed the store in a photo line-up. (Source swtimes.com)

Longview, TX Police seek 2 shoplifters for Robbery, Assault and Hit and Run  Police say they have identified two suspects involved on a shoplifting incident that turned into a physical confrontation and a hit-and-run case. Two females are suspected of shoplifting from the Longview Kohl’s department store this past Thursday. Police say the suspects in security video images were intercepted by store employees in the parking lot by loss prevention officers. Police say the main suspect, a pregnant woman, put up a fight before escaping. The suspects slammed into two vehicles on the way out. (Source kltv.com)

Bold thieves steal $5,000 worth of sporting goods from Cabela's in Wichita  Several Cabela's employees told police they watched a couple walk past the checkouts inside the store and to the parking lot. As they were loading up their car with all the loot, officers arrived on scene. Investigators say 29-year-old Corey Hunter and 43-year-old Teresa Malone got onto the turnpike. About 40 minutes later, Police stopped the suspected thieves. Police found thousands of dollars in stolen items inside the car. The list is long including, two cross bows worth $4,000, gloves valued at $240, bags and backpacks, baby food, GPS cases, clothing and two-way radios. (Source kake.com)

Bozeman, MT woman sentenced for selling fake diamonds on Craigslist; order to pay $111,000 in restitution

Distraction Team hits Kay Jewelers in the Iverson Mall, Hillcrest Hts., MD. for nearly $10,000 in merchandise

Robberies and Burglaries

Ace Cash Express - Bend, OR - Armed Robbery
Aldi - East Peoria, IL - Burglary - 2 arrested
Alfie’s Gun Range - Davie, FL - Burglary
Bucks Hill - Waterbury, CT - Homicide/ Armed Robbery - clerk shot and killed
Cal State - Fresno, CA - Burglary - $6000 of merchandise recovered
Casey’s - Blue Grass, IA - Armed Robbery - suspect arrested
Clinton Ave. - Newark, NJ - Armed Robbery - Police Officer shot in the leg
 Food Mart - Houston, TX - Armed Robbery - 5 suspect/ dramatic video
Nolls Guns - Gregg Twp, PA - Burglary - suspect arrested
Paradise Food - Jacksonville, FL - Armed Robbery - suspect arrested
Pawn City - Pine Bluff, AR – Burglary – seeking 5 suspects
Sally Beauty - Norwich, CT - Armed Robbery
Schnucks - St Louis, MO - Armed Robbery - bank inside store

 

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Sears Holdings Corp

 

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Curtis Stoves, CFI was promoted to Director of Loss Prevention for Books A Million.

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These 5 Character Traits Inspire Happiness and Success Even in Tragic Times  When life gets you down, how do you recover and come out stronger than before? Here are some great character traits to have to help turn a tragedy into a springboard to success and personal happiness. (Find your silver lining)

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Finding your rhythm sometimes is like playing hide-in-seek. Some days, you just get up with it and some days you just can't find it. But once you do, don't let anyone slow you down and try not to second guess yourself. Just move forward and push yourself to try new things and let the flow take you. Don't worry about where you'll end up; just have confidence in yourself and trust the old expression "Build the field and they'll come and play." Because if you focus on just adding value and helping with everything you do and every person you interact with, the rest will take care of itself.

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