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August 1, 2014

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News Brief
Sponsored by WG Security Products, Inc.

The Next LPNN Event - "LIVE in Toronto at the Retail Council of Canada's LP Conference" An Exclusive Broadcast  The D&D Daily's LPNN to cover the Retail Council of Canada's Loss Prevention Conference on Sept 10th and 11th. Solution Providers - Interested in sponsoring and taking a leadership role! Help Canada's LP community make history with this first ever exclusive event and help the RCC LP Leadership educate and inform the retail LP executives throughout Canada about the vital role they play in adding value to the industry and helping the LP community grow and evolve. Contact us for how you can get involved!

Nearly 600 business in the last month alone impacted by POS malware attack - 4 Investigations Ongoing  The United States Secret Service, working with Trustwave, has discovered a series of attacks in the retail sector, which uses customized malware to infect POS systems. The crime itself isn't overly technical, as the criminals behind it use poorly defended remote access points to target a POS terminal and infect it. According to a US CERT advisory, the attackers are targeting poorly protected instances of RDP, including services from Microsoft, Apple, Chrome, Splashtop 2, Pulseway, LogMeIn, and Join.Me. The attacks have been ongoing since October 2013 and continue to operate in some parts of the country. Until AV vendors update signatures, the malware used in these attacks is largely undetected. "In the past month, we have seen nearly 600 businesses, mainly in the retail industry, infected by the Backoff malware. We are currently working on four investigations alone - all in which criminals broke into point-of-sale systems by using stolen credentials to log in through remote access software. (Source csoonline.com)
 



Backoff Point-of-Sale Malware:

The Official Alert Released by the U.S. Dept.
of Homeland Security's
US Computer Emergency Readiness Team

The advisory was prepared in collaboration with the National Cybersecurity and Communications Integration Center (NCCIC), United States Secret Service (USSS), Financial Sector Information Sharing and Analysis Center (FS-ISAC), and Trustwave Spiderlabs. The purpose of the release is to provide relevant and actionable technical indicators for network defense.

Recent investigations revealed that malicious actors are using publicly available tools to locate businesses that use remote desktop applications.

USSS, NCCIC/US-CERT and Trustwave Spiderlabs have been working together to characterize newly identified malware dubbed "Backoff", associated with several PoS data breach investigations.

Similar attacks have been noted in previous PoS malware campaigns and some studies state that targeting the Remote Desktop Protocol with brute force attacks is on the rise. A Mitigation and Prevention Strategies section is included to offer options for network defenders to consider. Click here to read the full alert.

1,900 Store Sandwich Chain Jimmy John’s Investigating Data Breach Claims - POS Provider?  Jimmy John’s may be the latest retailer dealing with a breach involving customer credit card data. The unauthorized card activity witnessed by various financial institutions is so-called “card-present” fraud, where the fraudsters are able to create counterfeit copies of stolen credit cards. Nearly all Jimmy John’s locations (~98 percent) are franchisee-owned, meaning they are independently operated and may not depend on common information technology infrastructure. However, multiple stores contacted by this author said they ran point-of-sale systems made by Signature Systems Inc. The company’s PDQ QSR point-of-sale product is apparently recommended as the standard payment solution for new Jimmy John’s franchise owners nationwide. Signature Systems did not immediately return calls for comment. Reports of a possible card compromise at Jimmy John’s comes amid news that the Delaware Restaurant Association is warning its members about a new remote-access breach that appears to have been the result of compromised point-of-sale software. Champaign, Ill.-based Jimmy John’s initially did not return calls seeking comment for two days. Today, however, a spokesperson for the company said in a short emailed statement that “Jimmy John’s is currently working with the proper authorities and investigating the situation. We will provide an update as soon as we have additional information.” (Source krebsonsecurity.com)

The 4Q Push - July LP Internet Jobs Postings Up 24.2% Over 13' - But LP Jobs Still Down for Year 2.2%
  July 2013 Jobs - 306 - July 2014 Jobs – 404 - Up 24.2% from last year. Overall total from January to July 2013 = 2377. Overall total from January to July 2014- 2325. Only down 2.2% year to date in total number of jobs posted on the Daily. While the market is lighting up for the fourth quarter push we still see a slight decrease from last year in total number of jobs.

New York Metro Organized Retail Crime Alliance Kickoff Event, Friday, September 12, 2014  With NYPD Commissioner Bratton making the opening remarks, showing his total support for the retailers and for organizing this first ever event for NYC, this is a fantastic development and everyone in the area should plan on attending. As it's actually the last major Metro in the U.S. that hasn't had a formal ORC program at this level. Make sure you plan on attending and lend your support as we finally have an NYC ORC effort! Congratulations to all of those who have been working to pull this together. And be on the look out for their web site being launched that same day. (Source nymorca.org)

Massachusetts House approves new ORC retail theft law  The new crimes include using duct tape or other devices that block sensors designed to set off an alarm if not removed by the cashier; using an emergency exit to escape following the theft; and creating a bogus sales receipt or UPC code. The measure also creates a new crime of working in an organized retail theft ring. Supporters said that these theft rings are estimated to cost Massachusetts retailers more than $160 million annually. They noted the rings are selling the stolen items at flea markets and on websites like eBay. (Source sentinelandenterprise.com)

With two new leaders at Wal-Mart U.S. and Target being named over the last week - the entire retail industry is waiting to see the impact  There's been a lot written over the last few months about all the CEO openings and how the industry is hunting for new fresh leadership that can successfully lead this new era in retail. Where the online world is shaking the very roots of traditional retail and changing like never before. Where the old school CEO's and the failed attempts at JCP, who's still looking for a new CEO, and others have left the industry scrambling for new talent. The issues in the mall based women's specialty apparel industry with CEO's resisting change and fighting boards coupled with the big box retailer's issues of data breaches, lagging same store sales, failed Canadian expansions, and once again, the online world threatening, the whole retail industry seems to be upside down. And now we have two basically outsiders coming into Target and Wal-Mart and looking to re-start and reclaim their rightful roles as industry powerhouses. The dollar stores now look to take ground and the two behemoths planning their small store expansions. The one thing that's clear is that it's going to be an interesting year or two in retail and how this shakes out could change the landscape like never before. Does Dollar General try to make an offer for Family Dollar? Does Wal-Mart move in and buy Dollar General? And sitting over on the side is the drug store industry. Just waiting to see what happens. With Wal-Mart and Target including pharmacies in their new small urban boxes how does that play out? Yes, it's going to be an interesting few years and the next six months and all the decisions they face - like Target's pulling out of Canada - do they or don't they? Billions is at stake and thousands of jobs are on the line. And LP is right in the mix with having to reinvent itself to meet the new digital demands and payment processes that are expanding as quick as the online world is growing. The one thing for sure is that it is an exciting time to be in retail. Just a thought - Gus Downing

100% scanning of U.S.-bound cargo containers delayed until 2016

GameStop adding beacons to its stores

Poll: Three-in-four Americans worry about online security

Quarterly Same Store Sales Results
Publix Q2 up 6.3% with sales up 6.6%
Natural Brocers By Vitamin Cottage Q3 up 3.1% with net sales up 18.4%
Weis Markets Q2 up 2.9% with sales up 4.5%

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REI's Asset Protection Team Kayaking in Seattle

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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.

e-commerce
Sponsored by The Zellman Group

Hackers Back to Their Old Tricks
What the Goodwill breach illustrates -- and why old hacker tricks continue to work on these systems -- is the inadequacy of the Payment Card Industry Data Security Standard for payment systems. Reusing passwords is a security taboo. Belief that passwords never should be reused is so strong that when some Microsoft researchers recently presented a contrarian view, they were roundly chastised for their opinions. "The Stubhub attack highlights that the weakest point in security is not through servers but rather through consumers," said Richard Westmoreland, lead security analyst with SilverSky. "People often reuse the same credentials on different sites, and once these are harvested, they can be used to perform attacks elsewhere the person also has an account," he told TechNewsWorld. (Source ecommercetimes.com)

Half of Online Shoppers Blame Retailers for Security Issues

"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


Chapters Indigo - Canada's Version of U.S. Barnes & Noble - Transforming It's Stores To Stay Alive - Lifestyle Products  From 40 Indigo iStores with Apple products to electronics and even now high-quality dolls from American Girl. This retailer is doing everything they can to stay alive and transform in an industry that has to counter retailers selling books online below cost. The company will also offer a wide assortment of headphones, earbuds, speakers and other electronics for sale. With 96 superstores and 131 small format stores their most recent 3Q results show same store sales up 2.6% with revenue up 3%. However for year to date revenue was down 1.7% with superstore same store sales down 1.5% and 10.7% for their small format stores. (Source sinsblog.com)

Birks Group jewelers plans operational restructuring to reduce corporate overhead - Closing U.S. regional office?  Birks expects to consolidate most of its corporate administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office. This move will incur restructuring costs over the next 12 months of between $2 million and $4 million, primarily consisting of employee severance, professional fees and possible costs related to terminating certain leases. (Source diamonds.net)

Target losses hit $1.64B since entering Canadian development phase in 2011 - The new CEO named today "will likely have to exit the Canadian business for the benefit of the shareholders"  Plagued by execution missteps from inception, such as improperly laid out store interiors, overpriced housewares, and a broken supply chain that led to persistent out of stocks in food, Target Canada has been a dreadful experience for the Minneapolis-based retailer. In fact, my firm Belus Capital Advisors rates Target shares a sell on the premise the stock market continues to underappreciate the financial risks of the company's Canadian segment. (Source thestreet.com)

Target price matching campaign in Canada - Jump Starting the business

Ikea illegally negotiated with workers, must pay damages to union, says Labour Relations Board

RCMP report - Bitcoin is fresh method to launder proceeds from crime

Ingenico to deploy Canada's first EMV and contactless mPOS product

Senior citizen arrested, facing charges after bomb threats in Porter’s Lake

Ottawa man, 25, charged in five retail robberies

Burin Peninsula RCMP Search for Marine Store Robbers

Surrey Mounties jolt man with Taser; man barricaded himself in a flower cooler of an area grocery store

 

Big Data
Sponsored by Verint

Free Webinar Next Tuesday: 'Applying Smart Video to Harness Big Data'  Enterprises can now leverage video solutions that provide intelligence they can really use by presenting information in a streamlined way. Such smart video solutions are helping enterprises use big data to thwart security threats and respond to incidents faster than ever before. Join the Security Industry Association (SIA) and Security Systems News (SSN) for a free, exclusive webinar exploring how Verint customers are harnessing big data. “Applying Smart Video to Harness Big Data” will be held Tuesday, August 5 at 1 p.m. ET. Click here for more information and to register. (Source verint.com)

How big data and the "Internet of Things" will revolutionize the security industry  "Big data" and the "Internet of Things" (IoT) now are not only discussed in the IT and communications industries, but they are also ready to influence and even upturn the security industry. While we anticipate a connected society, the world is also vulnerable to malicious physical and cyber security attacks. Fortunately, security technologies have evolved and developed to prevent any disasters from happening. Integration has been an unstoppable trend in all industries, especially when it comes to IoT. Eventually, in a connected world, every system will be connected in a single network. The security industry will also continue to evolve. (Source asmag.com)

Federal Cybersecurity Legislation in Limbo - The difference between cybersecurity and data security  Congress has been engaged in the drafting of a federal law to protect our nation’s critical infrastructure systems from cyber attacks, particularly those that could physically harm American citizens or severely harm the economic well-being of our nation. This legislation, often referred to as “cybersecurity” legislation, is different from “data security” legislation, which typically refers to the protection of consumer data held by businesses. The NRF says it supports preemptive federal breach notification legislation, but it believes the data security issue should not be combined with cybersecurity legislation. (Source nrf.com)
 

ORC News
Sponsored by Security Resources

Suspect in Alleged Home Depot Return Scheme Arrested in Brown County, WI - Part of a Larger Ring Targeting Big Box Retailers  Officials say surveillance video shows a couple taking high priced item from the shelves of Home Depot and returning them for a refund. The couple never purchased the merchandise, but they would receive an in-store credit card for a refund. They would in turn sell it for cash at a payday lending store. Officials say it happened three times in one week. The sheriff's office says the woman seen in the video, Amber Teller of Green Bay, has been charged with three misdemeanors. Deputies say they identified the man in the video, but they have not located him. Investigators believe it is part of a much larger ring suddenly targeting big box stores in the last few months. Green Bay Police detectives tell Action Two news they've sent 10 cases to the district attorney since the end of April and have at least six more ready to go where people have stolen thousands of dollars from Home Depot. (Source wbay.com) (Source wbay.com)

Two Romanians sentenced for 'skimming' bank info to be deported  Two Romanians arrested in October 2013 will be immediately deported now that they've been sentenced for stealing customers' bank account information at kiosks in the post offices in Pittsburgh. Postal inspectors and Secret Service agents arrested the two men outside the McKnight Road post office as they left carrying a “skimmer” device that reads the electronic strips on debit cards. They also were found with a small camera used to record people entering their PIN numbers. (Source triblive.com)

Cop impersonator charged in 7 pharmacy robberies in Lawrenceville, Ga. - was also returning stolen merchandise at Walmart stores  At the time of his May arrest, Matthew David Buddin was accused of one armed robbery and impersonating a police officer while returning stolen items at several local Walmart stores. Authorities said at the time that, on multiple occasions, Buddin had returned items at area Walmart stores while displaying a Gwinnett County police badge and a holstered weapon. (Source gwinnettdailypost.com)
 

New York Metro Organized Retail
Crime Alliance Kickoff Event

RSVP Here

Friday, September 12, 2014
Arrive 10:30 AM
Meeting 11:00 AM - 1:00 PM

One Police Plaza Auditorium
One Police Plaza New York, NY 10038

Agenda:

10:30 - Guests start arriving (coffee and snacks)
11:00 - Opening remarks by Commissioner Bratton
11:15 - 12:00 - Guests Speakers
12:00 - Launch of the NYM-ORCA Site
12:15 - 12:45 Networking
12:45-13:00 Closing remarks

Please arrive no later than 10:30 AM, so that you may be cleared by headquarters security and checked in by the NYPD staff.

It is recommended that you use public transportation. Parking is not available at Police Headquarters and is extremely limited in the surrounding area. The following subway lines will take you to the vicinity of One Police Plaza: W, R to City Hall; 2, 3 to Park Place; J, M, Z, 4, 5 and 6 to Brooklyn Bridge/City Hall. You may also take the following buses: M6, M20, M1, M25X, M103, and M15.

Please arrive through the main entrance located near the Municipal Building and then proceed to the auditorium.

You must have government-issued photo ID to enter the building.

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Retail Crime News
Sponsored by NuTech National

$18M Robbery Crew Hitting Banks Tied to Jewelry stores Roof Top Burglaries As Well - Operating for 20+ Years in Southern California - More Indictments  For more than two decades the crew had been breaking into businesses, including jewelry stores and banks by cutting holes in their roofs under the cover of darkness. Previously authorities claimed $2M was taken, but the number rose with insurance claims. Virtually none of the money has been recovered. The fourth member has already plead guilty and cooperated with federal authorities. A fifth man has been sentenced to 10 years. Using power tools the crew cut through bank roofs and jewelry store roofs and would come back the next night to actually enter the premises. Now the last three members face more charges. Detectives had followed the crew for months after DNA left behind by an accomplice at a prior burglary pointed to the professional crew. The new indictments cover more burglaries Detectives had long believed was their work. Originally reported in the Daily on April 30th, 2014 at the time of their arrests. (Source latimes.com)

Video shows shoplifter stabbing 2 Walmart employees in Albuquerque, N.M.  Two Walmart employees were stabbed last week after trying to prevent a man from stealing several hundred dollars’ worth of DVDs. Surveillance footage released by Albuquerque police shows the employee wrestling with the man outside of the store, and at one point the man pulls out a knife and begins stabbing the employee. At that point two other employees rush to intervene. Police said the man eventually fled, and two of the employees were taken to the hospital. One of the men was stabbed three times. (Source koat.com)

Casselberry, Fla., Walmart a target for criminals In the last 30 days, 37 arrests have been made and 202 for the year. Some have turned out to be dangerous for officers. The store now as a zero-tolerance policy. Instead of being given a court date, anyone caught shoplifting will go to jail. Walmart the unusual number of arrests prove their efforts to thwart crime are working. (Source wftv.com)

68-year-old man jailed without bond for inserting needles into packaged meat at Shop 'n Save store 7 times in St. Louis  A 68-year-old Illinois man was jailed without bond Thursday after being accused by federal prosecutors of inserting sewing needles into packaged meat "just for the hell of it" at a grocery store in his hometown at least seven times over more than a year. SuperValu Inc., the Minnesota-based corporate parent of the Shop 'n Save chain, stressed that none of the cases resulted in serious injury, and that the alleged tampering was isolated to only the meat section of one store. Using its surveillance camera footage, Cook wrote, the Shop 'n Save's security crew identified a suspect seen manipulating meat items he never ended up buying and alerted FBI Special Agent Daniel Cook on Tuesday when that man again entered the store, riding a motorized scooter and using a portable oxygen tank. (Source tri-cityherald.com)

Camden computer shop worker charged with felony theft

Sacramento man in custody, two others sought in Tahoe City jewelry store burglary 

Ollie's Bargain Outlet employees waive rights to preliminary hearing in Lock Haven, PA

Man sentenced to 1 year and 1 month without parole for selling more than 22,000 counterfeit DVD's

Two arrested using counterfeit cards to buy gift cards in Harrisonburg

Skimming device found on Circle K gas pump in St. Petersburg. Fla

Hawaii Island Police arrest 2 of 4 suspects in credit card fraud; additional charges of first-degree terroristic threatening and resisting an order to stop

Green Township, OH Police arrest suspect in Kroger Armed Robbery

Macy’s shoplifting Man runs from store security while holding 7-week-old baby

Robberies and Burglaries

Albertsons - Natrona Co, WY - Pharmacy Robbery- suspect sentenced to 5 years
ARCO - Vancouver, WA - Armed Robbery - suspects 19 and 14 years old
Blue Coast Coffee - Shrewsbury, MA - Armed Robbery - suspect arrested
China King - Nicetown, PA - Shooting - 1 dead 2 injured
Citgo - Houston, TX - Armed Robbery - 1 suspect caught in clerk’s chokehold
CVS - Lakeland, FL - Armed Robbery - suspect hit store twice
CVS - Ligonier, IN - Robbery
Dollar General - Jonesboro, AR - Armed Robbery - suspect identified
Family Dollar - Buffalo, NY - Armed Robbery/ shooting - Clerk shot
Electronics - Brooklyn, NY - Armed Robbery - clerk assaulted
People’s Drugs - Escanaba, MI - Armed Robbery
Rite Aid - Kent, WA - Robbery
Stateline Store - Rockingham, MA - Robbery - suspect charged in 2 robberies
The Shade Store - Atlanta, GA - Burglary

 

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AP Team Leader
Target
Homewood, IL
Target
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Target
Rochester, MN
Target

ETL Asset Protection
Target
Riverside, CA
Target

AP Manager in Training
Walmart
Chambersburg, PA
Walmart
AP Manager in Training
Walmart
Norwalk, CT
Walmart

AP Manager in Training
Walmart
Lake Saint Louis, MO
Walmart

AP Manager
Walmart
Gordonsville, VA
Walmart
Dept Mgr LP & Safety
Lowe's
Kansas City, MO
Lowe's
Dept Mgr LP & Safety
Lowe's
Columbia, MO
Lowe's
Dept Mgr LP & Safety
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Rochester, NY
Lowe's
Dept Mgr LP & Safety
Lowe's
Santee, CA
Lowe's
LP Manager
Sears
Arlington, TX
Sears Holdings Corp
LP Manager Hrly
Kmart
Twin Falls, ID
Sears Holdings Corp
LP Manager Hrly
Kmart
Taft, CA
Sears Holdings Corp
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Sears
Los Angeles, CA
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Kmart
Passaic, NJ
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Aurora, CO
Sears Holdings Corp
LP Manager
Kmart
Staten Island, NY
Sears Holdings Corp
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New Hartford, NY
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Wichita, KS
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Yonkers, NY
Sears Holdings Corp
LP Manager in Training
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San Jose, CA
Sears Holdings Corp
LP Manager Hrly
Kmart
Pierre, SD
Sears Holdings Corp

 

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How to Become Stronger, More Confident and Influential Around the Office  Have you noticed that well-respected and influential people are able, almost effortlessly, to be accommodating when necessary but strong when it matters. You too can operate in a similar fashion with these easy tricks. (Put a stride in your step)

12 Weak Habits Every Leader Must Break  Everyone has their bad habits, whether it's chewing with your mouth open or maybe biting your nails. Leaders have bad habits too, and these are the ones you should work on breaking now, before it's too late! (You don't have to yell)

Is it Better to Be Feared or Loved?
Machiavelli said that "it is better to be feared than loved" and if you look at how leaders have run companies in the past, that was certainly the case. Threats were used to keep employees on their toes. Today, however, it may be more beneficial to be loved instead. (Love inspires loyalty)

Leadership through Hope: Lessons from Reggae Music  Negativity events always end up being more memorable than positive events. That’s probably why negativity sells so many records like heavy metal and rap. One thing we don’t hear a lot of in contemporary music is hope. (Bob Marley)

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Tip of the Day
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Getting involved in a process is an obligation and taking it seriously is absolutely critical to your success regardless of what the process involves. Whether it's looking at a job or sitting on a company committee. Once you've committed, your reputation, your image, your future is at stake. Minimizing it won't decrease the impact nor will it reduce the expectations of others. Because when you become part of a process, other people are either looking at you or they're counting on you to be your best or give your best. So once you've committed, follow through and deliver your best.

Just a Thought,
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Upcoming Events

The 35th Annual RLPSA Conference
August 3-6, 2014
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CCROC Annual Training & Conference
September 4-5, 2014
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RCC Retail LP Conference
September 10-11, 2014
Toronto, ON, Canada

ISCPO Conference
September 9-10, 2014
Dallas, TX

NE ORC Symposium and Trade Show
September 18, 2014
Worcester, MA

Ohio ORC Retail Crime Symposium
September 19, 2014
Columbus, OH

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October 13-16, 2014
San Diego Marriott-Mission Valley, CA


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