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August 12, 2014

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St. Louis Looters Cause Destruction to Retail Stores

FBI Probes Missouri Teen's Shooting - Local Businesses Closed Monday - Rev. Al Sharpton to be in St. Louis  On Sunday night, police had reported arresting 32 people as they responded to thousands of calls, including reports of shots fired and looting at stores such as Wal-Mart and Foot Locker. "We had a tremendous amount of property damage. And as it was, we had no injuries or fatalities," said St. Louis County Police Chief Jon Belmar on Monday. During the day on Monday, protests in this city of about 21,000 residents, two-thirds of whom are black, remained peaceful. Many local businesses were closed for the day. The shooting is garnering national attention because of the civil-rights implications. Rev. Al Sharpton said he was planning to arrive here on the request of the Brown family. (Source

Police Use Tear Gas & Rubber Bullets to Disperse Protestors Monday Night in St. Louis  The standoff lasted for more than an hour, with about a dozen men approaching officers with their hands up saying, “Don’t shoot me.” At least 100 police officers were on the scene, shining bright lights into the crowd and telling people to return to their homes. At one point, the sound of gunfire was heard from within the area where the police had barricaded streets in Ferguson. Earlier in the night, several people threw rocks at officers. Chief Thomas Jackson of the Ferguson police told The Associated Press that the officers used tear gas and shot “beanbag rounds” after members of the crowd threw rocks at officers and gunfire came from the crowd. Chief Jackson said the police blocked off the area where most of the looting and vandalism occurred Sunday night out of concern that cars passing by might hit demonstrators in the street. The situation appeared to have calmed down by about 10:30 p.m. local time, the police said. FBI opens civil rights inquiry into the fatal shooting by a police officer of an unarmed black teenager. (Source

QuikTrip burned wreckage in St. Louis - Employees escaped - Counseling being offered - Nothing left to protect  Sunday night’s unrest in Ferguson left the QuikTrip at 9420 West Florissant Ave. a burned wreckage. At the moment the company has no plans for rebuilding or even a process for how to make that decision; it has never faced a similar situation. The destruction of the convenience store’s structure and merchandise will likely total seven figures. Employees who were working at the QuikTrip Sunday night made it out safely before the store was looted and burned in the chaos that followed a peaceful vigil for Michael Brown, an unarmed 18-year-old man who was shot dead by a police officer Saturday. Thornbrugh said employees of the store are being offered counseling and, once they are comfortable, the opportunity to transfer to another store while the company decides whether to rebuild. Quiktrip is leaving security of the site to the police for now. As Thornbrugh said, “With all due respect, there’s nothing left to protect.” (Source

Wal-Mart spokesman - "significant amount of merchandise" was taken from store in St. Louis  Wal-Mart spokesman said a "significant amount of merchandise" was taken from the store, which opened at 2 p.m. Monday but will close at 6 p.m. rather than 11 p.m. (Source

Helping Shape the Next NRF PROTECT - We still need your input!  You'll be getting the survey shortly and if you missed it last week this is your opportunity to get involved and help make a difference in the biggest trade show in our industry. For those who have already filled them out - Thank You - and for those who haven't please take the time today. It's your industry - It's your trade show - It's your responsibility.

U.S. switch to EMV - chip-and-PIN credit cards not a panacea for fraud  The chip-and-PIN system definitely has its (exploitable) flaws, and only some of them have been addressed. It is also a well known fact that when the chip-and-PIN system was rolled out in Europe, the fraudsters shifted to making card-not-present transactions, i.e. placing orders online or over the phone with retailers that don't ask for the card's security code and/or don't verify the billing address. In addition to this, in some cases EMV transactions are not immune to RAM-scraping malware, so we can expect cyber crooks to continue compromising PoS terminals. Nevertheless, the change is set to happen and, according to Anderson, it will be great to see which system will turn out to be better: the chip-and-PIN, or the chip-and sign. Also, if the EMV system is, indeed, safer than the magnetic-stripe card technology. (Source

NYC’s first enclosed mall in 40 years officially opens - 'The Mall at Bay Plaza'  The 780,000-sq.-ft., three-level center will be the largest shopping mall in the city. It will include a new, ground-up Macy’s and an existing J.C. Penney as the anchor tenants. Over 100 retail shops have been constructed, many of which will operate in the Bronx for the first time such as H&M, Michael Kors, Ulta, Victoria Secret, and Kay Jewelers. Four new restaurants, a new gym and AMC Theater will be featured tenants as well. (Source

MasterCard report: U.S. retail sales up 4.6% in July  Lodging, Airlines and Restaurants were among the top categories for U.S. retail sales last month, while Automotive, Grocery and Luxury items (excluding Jewelry) were less sought after by consumers. (Source

Mexico Topples Oil/Gas Theft Ring - More Profitable then Cocaine for the Cartels - 10,000 barrels stolen each day  Mexico has taken down a criminal ring dedicated to stealing oil from its state petroleum monopoly Pemex, authorities said on Wednesday night, part of efforts to clamp down on out-of-control oil thefts that have grown exponentially in recent years during the country's drug war. In recent years, organized crime groups that were once focused more on trafficking drugs or people to the US have shifted their attention to the relatively easy racket of tapping state oil pipelines and then selling stolen oil or gas to consumers or rogue companies. The main cartel responsible for these illegal taps is the fearsome Zetas. Pemex estimates that it loses $5 billion a year in illegal taps, an issue the monopoly must confront, analysts say, as its operations are opened up to foreign investment. The federal attorney general’s office said five people were arrested in connection with a cell of oil thieves, after 14 search warrants were served in three regions of the country. Authorities seized ten properties, at least $20,000 dollars, and numerous tractors, trailers, firearms, luxury vehicles, and jewels. (Source

PCI council releases third-party security assurance guidance  The PCI Security Standards Council has published supplemental guidance to help merchants and third parties handling cardholder data better understand their security roles and responsibilities. Released Thursday, the Third-Party Security Assurance Information Supplement (PDF) specifically fleshes out how companies can readily comply with Payment Card Industry Data Security Standard (PCI DSS) requirement 12.8. The document was created by over 160 organizations that are a part of the council's Special Interest Group (SGI). (Source

Home Depot faces lawsuit over Joplin, Missouri tornado deaths  Home Depot is being sued in a wrongful death lawsuit by a woman who lost her husband and two children during a 2011 tornado in Joplin, Missouri. Edie Housel is contending that Home Depot is responsible for the death of her family due to the improper construction of the Home Depot store in which the three — along with five other people — were killed. The claim is that the 100,000-pound concrete slabs that hold up the store’s roof were not secured and collapsed after the tornado ripped the ceiling out from the building. All but 10 of the 73 concrete fixtures fell inward onto the floor and were responsible for the loss of life. (Source

Urban Outfitters' female staff in NYC harassed, complaints ignored & security refused to report  A former Urban Outfitters sales clerk says customers at a Fifth Avenue store couldn’t keep their hands off her and when she complained to bosses they banished her to the stock room, sarcastically telling her they made the move so no one would ever “molest” her again, a new suit says. Tatiana Swiderksi, 25, is suing the trendy clothing chain, citing sexual discrimination, claiming honchos and security guards at the store near 43rd Street fail to protect female staffers by putting them in the “line of fire” to be groped and harassed by male customers. In her Manhattan federal court suit, Swiderski claims she was twice “violated” in November 2013 by male customers — including one who “licked her face” while trying to pull down the front of her dress to expose her breasts and another who secretly videotaped up her skirt from below an open, see-through staircase. She says store managers and security guards not only refused to report the incidents to police — or put in a policy to protect workers from such incidents — but moved her to a cold “unheated” stock room during the winter after she went to the cops. (Source

California passes anti-theft cellphone 'kill switch' bill  The California state Senate voted 27-8 on Monday to pass the newest version of a bill requiring cellphones sold within the state to allow users to make their phones inoperable if stolen. The bill asks that device makers put so-called "kill-switch" technology on every smartphone, though users could choose to opt-out of the security services. The software lets users lock the phone if it is stolen, making it inoperable. “This legislation will literally stop smartphone thieves in their tracks by ensuring all new smartphones sold in California come pre-enabled with theft-deterrent technology,” said Sen. Mark Leno, who introduced the bill. (Source

Wet Seal+ Plus Sizes Hosts Grand Opening Events: 30 Stores Opening Across the Nation!

RadioShack’s Comeback Effort Is ‘Highly in Doubt,’ UBS Says

Manhattan DA comes down hard on online payday lender charging 650% interest - 3 executives face criminal charges

Quarterly Same Store Sales Results
Kate Spade Q2 up 30% with net sales up 48.7%
Cache Q2 down 8.8% with net sales down 10%

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

NRF's LP Awards & Recognition Committee

Melissa Mitchell, CFI, Dir of LP and Inventory Control, LifeWay Christian Stores, and Chair, NRF LP Awards & Recognition Committee

Melissa Mitchell, CFI, Director of LP and Inventory Control for LifeWay Christian Stores, discusses the NRF’s LP Awards Program, which honors loss prevention professionals and law enforcement officers who have positively impacted the LP community each year. As chair of the NRF’s Awards & Recognition Committee, Melissa talks about the importance of acknowledging excellent performance among your ranks. Learn how you can get involved in next year’s nomination process!

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LPNN Quick Take #11

In this LPNN Quick Take, hear from Joe LaRocca, Hedgie Bartol, Business Development Manager, Retail, Axis Communications, and Professor Bob Hanson, Northern Michigan University. Hedgie discusses what he aims to get out of these types of conferences and what he tries to learn. While Bob Hanson tells us what he takes back to the university and students from the conference. The three discuss how Loss Prevention as a profession has changed over the last 20 years.

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

Big Data
Sponsored by Verint

What Are the True Costs of Data Breaches? About $5.4 million, says one estimate  These days it seems like not a week goes by without a report of another high-profile data breach. While data breaches are costly for retailers and for banks that have to reimburse customer losses due to fraud, there is also a significant cost to consumers as well. Overall, the true cost of data breaches is significantly higher than one would think, according to multi-factor authentication provider Authentify. The firm estimates each breach costs about $5.4 million for the affected companies. (Source

Internet of Things (IoT) will drive RFID technology in stores  Consumer demand for convenient, personalised and contextualised interactions will drive retailers to adopt multiple internet of things (IoT) technologies, says IDC Retail Insights. In their recent report, IDC predicts IoT technologies that use radio frequency identification to improve inventory management, sample management, loss prevention, on-shelf availability, and asset management will become more popular as they ultimately enable consumers to find and buy products at their convenience. The study also indicated that retailers are adopting IoT technologies to improve operations in retail supply chain and asset management applications. (Source

GameStop Commences Large-Scale Beacon Deployment

How hackers used Google in stealing corporate data

Sponsored by The Zellman Group

e-Commerce's 20th Birthday today - 1st secure retail transaction - Sting's "Ten Summer's Tales" Album  It’s 20 years to the day, since NetMarket claimed they conducted the very first secure retail transaction via the internet – the sale of the Album “Ten Summer’s Tales” by Sting. It’s contentious whether this really was the first secure transaction via the web, but it’s the event which the media remembers as ‘the one’... This set the stage for the development of ecommerce and online shopping to the level we know today. The rest is history! (Source

EMV Is No Silver Bullet for Payment Card Security  At the Black Hat 2012 event, a security researcher known only as Nils demonstrated flaws in payment card terminals. This year, Nils was back, once again demonstrating a similar set of flaws to the ones he first publicly disclosed two years ago. Nils along with John Butler, now both at security firm MWR Labs, demonstrated before a large Black Hat audience how they could take over mobile payment terminals by using a malicious EMV card. Mobile payment terminals are small devices that can enable a merchant to take payments anywhere. The two researchers declined to name any of the vendor devices, as not all of the flaws are yet patched. (Source

43% of QVC’s U.S. revenue now comes from the web

"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


ORC News
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Guilty plea in $23m card fraud case
US man has admitted leading a stolen credit card trafficking ring that racked up fraud losses of more than $23 million. Between 2010 and 2013, Miguel Gonzalez used email and instant messaging to buy credit card data associated with around 114,000 accounts that had been stolen through network intrusions at corporations, including retailers in New Jersey. Gonzalez and his ring used the information to create counterfeit credit cards and then make fraudulent transactions worth more than $23 million. Gonzalez bought multiple homes, expensive jewelry and a speedboat. He has pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for 21 November. (Source

ORC Brady Bunch Arrested in Phoenix

Family of Five Ran Retail Theft Ring - Stole Over $15,000 in Merchandise - Sold Loot at Yard Sales  Police have arrested five members of a Phoenix family on suspicion of stealing more than $15,000 of retail merchandise - mostly lingerie and other clothing - to exchange for drugs or sell at yard sales. A two-month investigation by the Phoenix Police Department culminated in the arrest of five adult family members, who are now facing charges for organized retail theft, aggravated robbery and illegal control of an enterprise. According to authorities, the family mostly stole lingerie and other clothing from stores around the Valley from November 2013 to July. Among the stores that have reported losses were Aeropostale, Dillard's and Victoria Secrets. Police said one incident escalated when family members attempted a theft at Arrowhead Towne Center mall in Glendale and one of them discharged pepper spray into the face of a security guard who stopped him as he exited the mall. (Source (Source

Community outrage over rash of beauty shop thefts in Houston  Five hair heists in just over a week, one of the crimes ended with a shop owner being shot. Now community activists are calling for a stop to the crimes. Robbers shot the owner of Mr. Indian Hair store last week. He's fed up and so are others who deal in high-priced hair. Some now say they're getting serious about defending themselves, even if it means more violence. (Source

Thieves steal pricey tools from NE Houston business  Kas Brokerage, a Houston company that ships oil field supplies, is open for business today. But its employees don't have what they need to do any work. Sunday afternoon, a pair of brazen thieves broke into the company's northeast Houston warehouse on Lee Road and stole thousands of dollars worth of tools. It was all caught on camera. The thieves drove their vehicle into overhead garage door and one of them could be seen on camera slithering his way in through the opening. He then opens the back door to the warehouse and lets in his accomplice who is dressed in a suit and tie. The owner says between the damage to her business and the stolen tools, the whole ordeal is going to cost her about $10,000. (Source

Rhode Island cracks down on cigarette smugglers - 40% of state's cigarettes come from black market - 60% in NYC  Rhode Island Gov. Lincoln Chafee and the General Assembly recently wrote a tough game plan to fight the explosion of tobacco smuggling under way along Route 95, “The New Tobacco Road,” a problem that is robbing taxpayers and the state of millions of dollars and stretching far beyond the borders of the Ocean State. Research indicates approximately 40 percent of all cigarettes consumed by smokers in Rhode Island are smuggled and/or purchased on the black market. Likewise, nearly 40 percent of the cigarettes consumed in the Boston area are illegal, while approximately 60 percent of cigarettes sold in New York City come from black market smugglers. (Source

Russian National Arraigned on Indictment for Hacking Retail POS systems

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Retail Crime News
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Altercation triggers shooting at Bayfair Mall, San Leandro, CA  One man was being treated at a local hospital Monday for a gunshot wound after an altercation inside San Leandro’s Bayfair Mall spilled out into the parking lot and ended in gunfire. San Leandro police Lt. Rick DeCosta said it appears that two men got into an argument inside a shoe store near Macy's and continued arguing in the parking lot. At one point, one of the men pulled out a gun and fired, striking the victim in the leg. (Source

Additional Credit Card Thefts reported from Kansas City area restaurants; customers urged to keep eyes on their wallets  A woman said she had her wallet stolen while picking up lunch at a Panera restaurant west of Liberty. Connie Allen said her purse was on her shoulder when she was leaving the restaurant. She said she held the door open for another couple leaving about the same time. Allen said the couple squeezed past her, something she didn't think was significant until later. She said she checked and found out that every card in her wallet had been used at nearby stores, including Kohl's and Target. The thieves racked up about $8,000 in purchases in just a few hours. (Source

Fort Worth police release video of serial robbers  Police are trying to identify a small pack of serial robbers suspected in three recent business robberies. The robberies occurred at the 7-Eleven and the Valero Corner Store on Thursday and the Subway on Sunday. Police say at least two suspects would enter the businesses during the robberies, waiting for customers to leave before robbing employees at gunpoint. A semi-automatic handgun and long-barreled revolver were displayed in the hold-ups. In the 7-11 robbery, an employee reportedly suffered a broken nose, according to a police report. (Source

Skimmer Fraud Ring Operating in Cornish, New Hampshire - Police warn multiple communities

7-Eleven Manager suspected of staging robbery in Costa Mesa, CA 

Las Vegas Police probe ‘high-value’ jewelry store heist  

2 accused of under-ringing at Westampton, NJ Home Depot 

Woman used child to help steal from Lord & Taylor in Lower Merion, PA

Lexington, SC Police investigate Moseley’s Jewelry Store burglary

Robberies and Burglaries

Appliance Outlet - Buffalo, NY - Robbery
Bargain Spot - Cherokee Co, SC - Armed Robbery - man sentenced to 17 years
Circle K - W. Lafayette, IN - Armed Robbery - 3 arrested, multiple charges
C&P - Hazelton, PA - Armed Robbery
Dollar General - Georgetown, DE - Armed Robbery - 3 charged
Goofy’s Eatery - Spring Grove, PA - Armed Robbery
Mike’s Mini - Brunswick, OH - Armed Robbery - suspect says it was a prank
Plaid Pantry - Portland, OR - Armed Robbery - 4 stores hit in 1 day
Southside Mart - Charlotte, NC - Shooting - clerk shot, non life threatening
Verizon - Marion, OR - Burglary - 3 arrested
Walgreens - Decatur, IL - Armed Robbery
7-Eleven - Salt Lake, UT - Shooting - man killed by police


Vendor Spotlight

Why EAS Helps Food Retailers Deliver a Superior Customer Experience

Shopping for groceries and other food-related items is one of the most standard consumer activities in the world. But shopping in grocery stores and supermarkets is hardly a static activity. Food retailing has been greatly influenced by such factors as the rise of private-label brands; diversification of food categories, such as organic produce, premium meat, and seafood; prepared foods; and the increase in grocery items carried by mass merchants, deep discount, and convenience stores. As the grocery environment continues to evolve, consumers have a wider assortment of products to choose from, and more options on where to do their weekly shopping. Supermarkets are shifting strategies to continue to serve their customers and keep them coming back.

Shrink management has been a major focus for food retailers over the years. Losses due to theft, spoilage, and product waste continue to impact margins and profits. The Global Retail Theft Barometer revealed that shrink accounted for 1.3 percent of retail sales in food retail outlets with certain
high-risk items, such as cheese, meats, seafood, and baby formula, often experiencing shrink rates more than double the average rate.

Now, as retailers provide more premium grocery options and prepared foods, managing product freshness and quality becomes even more critical. In addition, as retailers expand their merchandise assortments into higher-margin health, beauty, and in-store pharmacy items, even at average-shrink levels the losses negatively impact the bottom line at a higher disproportionate level.

As a result, food retailers are looking for innovative ways to combat shrink while delivering a modern, welcoming customer experience. Although many grocery store chains and food supermarkets have installed electronic article surveillance (EAS) systems, many of them haven’t upgraded their technology or kept up
with their programs in favor of customer service initiatives. This can be counter-productive, since EAS reduces theft, which in turn reduces out-of-stocks, resulting in a better shopping experience.

Read the rest of the article here.

For more information about modern EAS solutions for grocery stores, supermarkets, and other food retailers, click here.


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5 Things Smart Leaders Do to Empower Employees  It can make all the difference when you have employees that are engaged and enthusiastic about their work. Having empowered employees not only makes work go smoothly, it also allows you as a leader to use your time more effectively. Use these tips to empower your employees. (Get out of the way)

How Top Executives Turn Problems Into Opportunities  As a leader, challenges are going to be a part of your everyday life. Sometimes you may feel like you're struggling to keep your head above water, and other days obstacles will prove to be no match against your strength. Turn problems into opportunities with helpful pointers. (Listen to others)

Why the Best Leaders Are Servants, Not Kings  Leadership isn't just about commanding the employees under you, it's about serving them, making them stronger and leading them to the top. Your job is to make sure they reach their full potential. Use these tips to help you effectively serve them, not just be their commander. (Walk with them, not in front)

Make Getting Feedback Less Stressful
As a leader you don't just give your employees feedback, you get feedback in return. Getting feedback doesn't have to be a stressful experience; it is essential to anyone's development and is supposed to help you become more successful. The next time someone offers you advice, don't cringe, use these tips. (Reframe the experience)

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Tip of the Day
Sponsored by Vector Security

Being too close to the trees to see the forest is an expression that also fits not appreciating the role you play on your own team. With the needs of the day seemingly always taking priority, it's difficult for some to step back and truly see the value you can add to your own team. Realizing it and accepting the responsibility as a team member is half the battle. But doing something with it and truly adding value is what helps the team win the game. Every group, every department is in fact a team and every member plays a vital role towards the success and the survival of that team. That's why that old expression - One for all and all for one - took such a hold in literature. Because it is that simple. The hard part is taking responsibility for it.

Just a Thought,
Gus Downing

Gus Downing

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