The D&D Daily Mobile Edition

August 13, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Joy Baucom was named Global Manager of Security and Loss Prevention Operations for Levi Strauss & Co.  Joy was previously the CEO of JB Global Enterprise where she worked for four years. She also worked on the asset protection team at Walmart where she was the Regional Asset Protection Manager and Market Asset Protection Manager. Joy served as Intelligence Analyst/Security Manager in the United States Army. She earned her Bachelors of Business Administration in General Finance from Pace University and went on to acquire her Master of Business Administration in General Business Administration and Management from the University of Phoenix. Congratulations Joy!

Records, Training Can Help Defend Against Racial Profiling by Employees - Investigation showed "Barney's maintained inadequate records of stops made by LP & law enforcement"  Monday’s announcement that Barneys New York will pay $525,000 to settle claims of discrimination and racial profiling of minority customers, and Macy’s Inc.M -4.35% undisclosed monetary settlement last month of a lawsuit actor Rob Brown filed when he was handcuffed and detailed after buying a $1,300 watch for his mother, have brought the issue of racial profiling by retailers back into the spotlight. These and similar cases show the importance of providing written policies and training for employees, and the importance of maintaining adequate records of who is stopped and for what reasons, an employment attorney says. In addition to having written policies and procedures for how to handle difficult situations, Jim Ryan, a partner at the law firm Cullen and Dykman LLP, said it’s important to give employees training that shows them exactly how to respond to events without making judgments using race, gender or religious affiliation. “It’s a very teachable thing,” he said. “The way you prevent incidents like this is to profile the activity and not the person.” Even with training, many of these situations are judgment calls, and while a company may do all the right things, it may still wind up making mistakes sometimes. “But if you have policies and procedures in place and are not just profiling based on race at all then they’re defensible,” Mr. Ryan said. (Source wsj.com)

Should chronic returners be banned?
Excessive returners are being banned by some retailers from returns for 90 days to a year. In some cases, a few online retailers are banning these problem customers from shopping at all. From Target, Saks, Best Buy, Lowe's, Home Depot, Victoria's Secret, eBay, and Amazon even has a much stricter policy. Retailers are increasingly banning customers for excessive return rates. HSN and QVC likewise have lifetime ban for excessive returns, according to reports. Many retailers have been tracking customer returns for years - often through third-party parties - to detect fraud as well as chronic returners. (Source retailwire.com)

How Much Is Stolen Card Data Worth? Over $2M for one Russian cyber thief crew  How much is card data worth? In a recent conviction of one Russian national case, payment card data labeled with “a 95 percent guarantee for validity” cost between $20-$30 per card track. (Cyberthieves issued guarantees? Who knew?) Cards listed for a “guarantee of validity of 65 percent” sold for about $7 per track. The sale of the stolen card data brought this cyberthief crew involved more than $2 million for their batch of stolen card info. (Source pymnts.com)

More Than 575 Million U.S. Payment Cards to Feature Chip Security in 2015  The Payments Security Task Force (PST) today provided an update on its discussions and activities since its inception. The task force, which represents a diverse group of U.S. electronic payment industry players, has initially focused on continuing the momentum of EMV chip implementation in the United States. In a recent forecast, nine of the country’s largest payment card issuers who participate in the task force estimate that they will have issued more than 575 million chip-enabled payment cards by the end of 2015. The participating issuers include Bank of America, Capital One, Chase, Citi, Discover, Independent Community Bankers of America (representing issuing members), Navy Federal Credit Union, US Bank and Wells Fargo & Company. (Source businesswire.com)

U.S. Retail Sales Flat in July; Weakest month since January

Amazon enters payments space with card swiping device

California Governor to Decide on Smartphone ‘Kill Switch’ Bill

Ascena Retail Group to open New Shared Services Complex in Columbus, Ohio
With 3,900 stores and six banners - Lane Bryant, Cacique, maurices, dressbarn and Catherines brands; and for tween girls and boys, under the Justice and Brothers brands, this specialty retailer - the 120,000 square foot office space will accommodate Ascena’s Shared Services Associates who serve all five of Ascena’s retail brands: Lane Bryant, Justice, maurices, dressbarn and Catherines in areas such as information technology, sourcing and centralized procurement. Additionally, the 760,000 SF distribution center will serve all of Ascena’s retail brands, transitioning the final brand in early fall. The facility will be home to 850 associates. Editors Note; This retailer has a strong LP program in each of their brands with senior LP leaders in each as well. Lets hope that continues into the future. Being the largest specialty retailer in the U.S. as it relates to store count, they're now joining a host of others in the Columbus, Ohio area which make that location the #1 city in the U.S. for specialty retail HQ's. (Source businesswire.com)

Gunmen Pull Off Biggest Heist in Chile, Rob Brinks Armored Car of $10.5 Million U.S.  A group of gunmen made off with a haul of as much as 6 billion pesos ($10.5 million) - the largest in Chilean history - in an assault on an armored car at Santiago International Airport. Eight masked gunmen, pretending to be workers, entered the cargo area of the airport minutes before 6:00 a.m. yesterday. Once there, they threatened the Brink’s guards who were getting ready to load the money on a plane that was going to fly it to the northern part of the country. Once they had the loot in their power, the assailants sped away in two cars that went in different directions, one taking the expressway that leads from Santiago to the coastal city of Valparaiso while the other took a local road. On their way, witnesses say, the gunmen scattered sharp spikes on the road to make the police chase more difficult. Later a burned car was found on the local road, thought to be one of those driven by the assailants. (Source hispanicalltspeakingnews.com)

Quarterly Same Store Results
Ace Hardware Q2 up 3.6% with revenue up 13.4%
Macy's Q2 up 3.4% with sales up 3.3%
Canada's Metro grocery stores Q3 up 1% with sales up 1.4%
American Apparel Q2 did not report same store sales, net sales flat over LY

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Panera Bread Loss Prevention Team
at the RLPSA Conference



"Our goal is to protect our associates, our customers, and the company's assets to help maintain the profitability of our Bakery-Cafes. Loss Prevention supports a cafe environment in which respect, honesty, and safety come first among associates. We provide services to support the above goal directed at assisting field operators to better focus on the company's Key Initiatives."


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eBay News
 

Laguna Niguel Man Receives 15-Month Prison Term for Defrauding eBay

Brian Andrew Dunning was sentenced today to serve fifteen months in prison for receiving between $200,000 and $400,000 in fraudulent commissions from eBay, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson. In pleading guilty, Dunning admitted that, between approximately May 2006 and June 2007, he engaged in a scheme to defraud eBay through so-called “cookie stuffing.” According to the plea agreement, commissions paid to Dunning’s company, Kessler’s Flying Circus (KFC), which Dunning owned jointly with his brother, totaled approximately $5.2 million during that period from eBay’s domestic Affiliate Program. According to the plea agreement, in approximately April 2005, Dunning and his brother formed KFC, through which they participated in the eBay Affiliate Program. The Affiliate Program was a means by which eBay worked with KFC and other affiliates to drive Internet traffic to eBay’s websites. Under the program, an affiliate was supposed to send visitors to eBay’s website by displaying an eBay advertisement, or link, on the affiliate’s website. If a visitor clicked on the eBay link or ad, he or she was redirected to eBay’s website. If that user subsequently conducted a “revenue action” on eBay’s website within a designated period of time, eBay paid the affiliate a commission for the referral.

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Loss Prevention News Network
"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.


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e-commerce
Sponsored by The Zellman Group

Exclusive: Indoor GPS could be retail's response to e-commerce competition
Picture this: You walk into a new, huge grocery store. You can’t find the mustard. So you bring up a mobile app, type in “mustard,” and it tells you exactly where it’s located. It takes you there, too, telling you when to turn left or right, just as your everyday GPS would direct you to a friend’s house. This “indoor GPS” technology is being developed by Radnor, Pa., couple Mary Kate and Chet Dagit — and they think it could potentially change the way we shop at grocery stores, find an item within a sports stadium or locate someone who needs help. “We’re enabling a competitive response to e-commerce,” Chet said. “So Amazon, QVC...they’re trying to get the shoppers to not go into the stores, and the stores need to find ways to make it more convenient for consumers.” (Source bizjournals.com)

Hackers netting huge profits from crypto-currency heists  Security experts have uncovered evidence of two huge cyber attacks targeting crypto-currencies such as Bitcoin, warning that the digital money is “ripe for exploitation”. In one, the thief was able to redirect internet traffic from at least 19 internet service providers (ISPs) to steal crypto-currency from a group of Bitcoin miners. For several short bursts of around 30 seconds the hacker was able to hijack “mining pools” which collaborate to unearth new coins, and redirect any profit to his or her own wallet by using high level protocols that allow the internet’s largest networks to communicate and cooperate. Researchers from Dell Secureworks estimate that at its peak the hacker was able to steal $9,000 each day of Bitcoin, Dogecoin and Worldcoin. During the attacks the hacker was benefiting from the computing power donate by the pool members, diverting their profits. (Source telegraph.co)

"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
Sponsored by Security Resources

FBI Press release: Mustafa Family Crime Ring - Worldwide Smartphone Theft Ring Busted in Minneapolis - 20 members busted with runners hitting stores nationwide 

United States Attorney Andrew M. Luger yesterday announced the indictment of 20 members of the Mustafa Family (The Organization), a Twin Cities-based criminal organization, for trafficking stolen and fraudulently obtained mobile telephones and tablets. From at least 2006 through 2014, JAMAL MUSTAFA directed the Organization to use stolen identity information to obtain cellular telephones and other mobile devices for the purpose of trafficking them throughout the United States and internationally. The Family owned and operated 13 mobile device stores in the Twin Cities metropolitan area. The Organization used these storefronts to buy devices that they knew had been illegally obtained, including purchasing thousands of cellular phones from runners and other persons who got the phones through robberies, burglaries, shoplifting, and fraud and identity-theft schemes. With the assistance of AHMED SUNOQROT, the Organization moved inventory and money between their stores, which the Organization used as fronts to funnel the illicit proceeds of their criminal activity. According to the indictment, the Organization paid runners who stole mobile devices or obtained them fraudulently by other means.

As charged, various members of the Mustafa Family provided stolen or fraudulent identity information to the runners, including names, dates of birth, social security numbers, credit card numbers, passport information, and driver’s license numbers of victims. Some of the runners operated solely within Minnesota, while others travelled to Arizona, Idaho, North Dakota, Iowa, Wisconsin, Illinois, and Utah to obtain devices. The Organization arranged out-of-state travel for the runners and paid their expenses. One runner was arrested in Utah in 2013 with more than 80 counterfeit identification documents and genuine victim-information documents. This runner used those documents to open lines of credit at various retail outlets to make fraudulent device purchases.

The runners were instructed by the Mustafas to obtain phones by contract-fraud and subscription-fraud schemes. In such schemes, runners used real stolen identities to obtain cell phone contracts. At times, the runners obtained “family plans” or “business accounts.” In so doing, runners were sold phones at deeply discounted prices by the legitimate retailers. The full retail price of an iPhone 5s in the United States is approximately $648. Under a two-year contract, the same phone is sold for approximately $200. Runners then opened accounts entitling them to obtain as few as one discounted phone, and as many as 30. The runners then shipped or delivered the phones back to the Mustafas, via one of the thirteen Twin Cities storefronts, or shipped the phones to wholesalers in other states for sale overseas. A new iPhone 5s retails for between $1,000 and $1,200 overseas.

Other runners engaged in street-level violence or burglary to obtain phones. The Sunrise Group, a burglary ring that traveled throughout the Upper Midwest for the purpose of breaking into WalMart stores to steal cell phones, iPads, and other electronic devices, provided electronic devices to the Mustafa Family on several occasions. The Mustafa Family made requests of the Sunrise Group for large quantities of new phones, and would act as a fence for the stolen merchandise. (Source fbi.gov)

ORC duo busted hitting Target Stores in Staten Island, N.Y. with forged credit cards buying Apple Products  Police have arrested another man in connection with a sophisticated identity fraud ring that authorities say used credit card-forging equipment to steal Apple products from Target stores in the borough. On Monday, police arrested James McMillan, 22, of Brooklyn, charging him with several felonies in connection with the scheme. In July, police arrested McMillan's accomplice, Sung Lee, 32, after finding a treasure trove of credit card-forging equipment, weapons, drugs and fireworks in his New Springville home, court papers allege. McMillan was convicted of second-degree identity theft in the Bronx in July 2013, according to the complaint. Police caught Lee on July 9, when he returned to the Charleston Target carrying four forged credit cards with the GreenDot MasterCard logo, authorities allege. Cops searched his apartment that day, finding several devices to print, emboss and encode credit cards, a skimming device designed to read information from credit and debit cards, more than 170 credit card blanks, 53 cards encoded with personal information, and a magnetic store key capable of opening display cases, court papers allege. The complaint against Lee references a third suspect, identified as Dennis Lopez, though it doesn't specify his role in the scheme. On Monday, police arrested McMillan of Brooklyn and charged him with 62 counts of felony and misdemeanor offenses. (Source silive.com)

ID theft ring leader gets 14 years in prison for aggravated ID theft, fraud schemes and forgery in Tucson  Underwood was arrested for multiple counts of fraud schemes and artifices, aggravated identity theft, and credit card theft, after police searched her home and found evidence of a large fraud operation. Police served a search warrant in the 10000 block of East Speedway at Underwood's home and found that she appeared to be one of the leaders of this criminal syndicate. The investigation revealed there were more than 40 people victimized by Underwood and more than $85,000 dollars fraudulently charged by her. (Source jrn.com)

2 New York-area men arrested with 60 counterfeit credit cards, Westfield police say  Two men were arrested this week in Westfield with dozens of counterfeit credit cards and more than 50 gift cards that they purchased as part of a scam, police say. Police say Gilbert was attempting to purchase $300 worth of prepaid visa cards at Rite Aid in Westfield when a manager recognized the ruse that had been plaguing other Rite Aids. The manager canceled the transaction and called police. (Source masslive.com)

Shoplifting suspect caught with Booster Bags in southern Ohio  A shoplifting suspect was arrested in Miami County with an unusual tool of the trade. Deputies say they stopped Shamon Smith, 43, of Louisville, Kentucky for a traffic violation in Concord Township. They say they found $5,000 worth of stolen clothes and so-called booster bags inside her car. Investigators believe the clothes were stolen from department stores in Michigan. (Source wdtn.com)

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Retail Crime News
Sponsored by NuTech National

La Grange, IL Police respond to Verizon store armed robbery; string of area robberies continues  The La Grange Police Department responded to an armed robbery at a Verizon store, 52 S. La Grange Road, just before noon Tuesday. Two Verizon employees were in the store when two offenders entered and showed a silver handgun, no one was injured. A recent string of armed robberies bearing similarities to Tuesday's robbery in La Grange have occurred at T-Mobile stores in the area since July. La Grange Police Chief Mike Holub said that, although police have not found any connection between the robberies. (Source mysuburbanlife.com)

Janesville, WI Woman Accused of Stealing Thousands in Diamonds from Kohl's  A Janesville woman is accused of helping steal tens of thousands of dollars in diamonds from Kohl's Department Stores in Janesville, Madison and Monona. Lindsay L. Kopas, 28, is charged in Rock County Court with party to the crime of felony retail theft. Authorities in Rock and Dane counties are pursuing a case against Kopas as well as a man identified in a criminal complaint only as Phillip Conaway, according to Rock County District Attorney David O'Leary. Kopas and Conaway entered the Kohl's store at the Janesville Mall on May 18 and asked to look at 1.5-carat diamond stud earrings mounded in 10-carat white gold, priced at $5,000, according to the criminal complaint. (Source gazettextra.com)

Multiple skimmed counterfeit cards being used at drug stores in St. Johns County, Fla.

Four Charged with Selling Thousands of Counterfeit Items at 127 Yard Sale in Lexington, KY

Police looking for three men who broke into cash registers in Prattville, AL., Walmart store

Manatee Co. FL Deputies stun escaping Dollar General theft suspect

Man accused of stealing 18-wheeler, forklifts, lumber from 84 Lumber in Raleigh, NC 

Gander Mountain Employee charged with stealing $5000 of merchandise in Sheboygan, WI 

Salinas, CA Police seek suspected Walmart merchandise thief; Loss Prevention associate assaulted

Greenfield, IN Police search for 3 suspects in Verizon Wireless store burglary

Manhunt underway after grocery store robbery in Stuart, FL; clerk tied up

Summit County, CO woman pleads guilty to felony identity theft; 40 additional charges were dropped in plea deal

Zales in Pleasanton, CA the victim of a $2995 Movado watch Grab and Run

Robberies and Burglaries

Admiral Petroleum - Robbery - Franklin, IN - clerk staged robbery
Dollar General - Berkeley Co, WV - Armed Robbery
Dollar General - Pitt Co, NC - Armed Robbery
Dollar General - Dayton, OH - Armed Robbery - hair brush used a fake pistol
Dunkin Donuts - Broward, Co, FL - Armed Robbery - 2 plead guilty
Exxon - Fountain Inn, SC - Burglary- police release photos
Metro PCS - Manchester, NH - Armed Robbery
7-Eleven - Temple, TX - Robbery
7-Eleven - Port Alberni, BC, Canada - Armed Robbery
7-Eleven - Hatfield, PA - Armed Robbery

 

Vendor Spotlight
 



LP Meets IT for Complete Managed Business Infrastructure, Security and Intelligence

New whitepaper from Vector Security

The advent of sophisticated, integrated technologies and smarter analytics has shifted the role of the loss prevention professional beyond “catching the bad guys.”

Top LP professionals today take a strategic look at the systems and data in their stores to identify how they can support cross-organizational business goals. They think beyond loss prevention and theft, and work collaboratively with the IT department to guarantee infrastructure, store operations and merchandising needs are also fulfilled.

This whitepaper is designed to help LP professionals better navigate the evolving retail landscape, and uncover the customer experience and business intelligence opportunities afforded by IT collaboration.

Download your free copy of the whitepaper here.

 

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Global Security Manager
Ace Hardware
Oak Brook, IL
Ace Hardware
LP Specialist
HEB
Victoria, TX
HEB
Store AP Manager
Home Depot
San Jose, CA
Home Depot
Dept Mgr LP & Safety
Lowe's
Galax, VA
Lowe's
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Lowe's
Wilkesboro, NC
Lowe's

AP Manager in Training
Walmart
Canton, GA
Walmart
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Bottineau, ND
Walmart

AP Manager in Training
Walmart
Lawton, OK
Walmart

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Walmart
South Haven, MI
Walmart

AP Manager
Sam's Club
Davenport, IA
Walmart
AP Manager
Sam's Club
Topeka, KS
Walmart
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Luxottica
San Diego, CA
Luxottica
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Sears
Baltimore, MD
Sears Holdings Corp
LP Manager Hrly
Kmart
Louisville, KY
Sears Holdings Corp
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Greenville, SC
Sears Holdings Corp
LP Manager
Kmart
Philadelphia, PA
Sears Holdings Corp
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Kmart
Baltimore, MD
Sears Holdings Corp
District LP Manager
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Denver, CO
Sears Holdings Corp
ETL Assets Protection
Target
Honolulu, HI
Target
Regional LP Manager
The Vitamin Shoppe
Chicago, IL
The Vitamin Shoppe

 

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Joy Baucom was named Global Manager of Security and Loss Prevention Operations for Levi Strauss & Co.
Kevin Kay was named Multi-Unit Loss Prevention/Safety Manager in Naples, Italy area for The Navy Exchange.
Damond Windham was named Area Loss Prevention Manager for Ross Stores Inc.
Bob Fairchild was named Regional Loss Prevention Manager for SpartanNash.

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7 Tricks to Make Email Less Overwhelming 
Ever wonder how long you actually spend just going through emails? On average 28% of your workweek is spent doing just that. That only leaves 72% to get all your other work done! Here are some tips to help you keep your emails under control. (No fluff)


7 Habits of People with Remarkable Mental Toughness  Mental toughness builds the foundations for long-term success. Those people who are successful are able to overcome fear in order to do what needs to get done; they also are always prioritizing. Here are ways to improve your mental toughness. (Impress yourself)

The Two Letter Ward That Can Ward Off Stress - And How to Use It  Everyone has their ambitions that they strive to work towards. You may think that you have to always be busy in order to get those goals but eventually you will feel the effects of constant activity. Use this word to prioritize your responsibilities. (NO)

9 Productivity Secrets from Hard-Working Chefs  Chefs and their staffs are always faced with deadlines all while trying to keep their customers satisfied. They also have to keep their creative juices flowing, make sure their team is trained properly and business is growing. Here are some tips chefs have to offer. (Organize your space)

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Tip of the Day
Sponsored by Vector Security

Holding people accountable can be a difficult task made even more difficult if those people don't even hold themselves accountable for their own performance or actions. Rationalizing, minimizing, deflecting – some people are just incredibly difficult to develop and lead. But then again, isn't that the key to being good leaders. Learning how to manage and lead is a life-long process that's tested every day you go to work. With human nature being to take the path of least resistance, the manager has to be there making sure no one does.

Just a Thought,
Gus Downing

Gus Downing

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Upcoming Events

CCROC Annual Training & Conference
September 4-5, 2014
Oakbrook, IL

RCC Retail LP Conference
September 10-11, 2014
Toronto, ON, Canada

New York Metro ORC Alliance Kickoff Event
September 12, 2014
New York, NY

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
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October 13-16, 2014
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