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8/13/18 d-ddaily.net










Moving Up
Sponsored by Agilence
 
Martin Renkis named CEO Smartvue IoT/Video Cloud Surveillance and GM Exacq Technologies VMS at Johnson Controls
Martin Renkis is the Founder and CEO of Smartvue Corporation, a leading IoT and video provider which empowers cloud video surveillance and IoT video services. Back in April, Johnson Controls acquired Smartvue, adding its cloud-based video platform to Johnson Controls’ offering of an end-to-end, smart cloud based solution that can provide superior business data and intelligence to customers and added value to partners. Martin is a member of Forbes' Technology Council, a member of Nashville Capital Network, and a board member for the Nashville Opera. He holds Bachelor Degrees in Economics and Cinema from Denison University. Congratulations, Martin!

John Morris promoted to National Director of Investigations - Loss Prevention for Nordstrom

John was previously the Regional Loss Prevention Director for Nordstrom for over 12 years before this promotion. He has held various loss prevention and investigations positions for Nordstrom throughout his 20 plus years working for the retailer including Loss Prevention Agent, LP Investigator, LP Manager, Regional Investigations Manager and Regional External Investigations Manager. Congratulations, John!

Submit Your New Corporate Hires/Promotions
or New Position
 


Top Industry News
 

How IoT Solutions Help LP Know What’s in Store (and not)!

By Catherine Walsh, Senior Vice President and General Manager, Loss Prevention, Tyco Retail Solutions

Staying on top of questionable store activity, new sources of shrink and savvy retail thieves makes it hard for retailers to find time for Loss Prevention (LP) program maintenance since they’re busy helping to protect everything and everyone in their stores. It’s particularly demanding for large companies to deal with extended store hours, many stores across regions and time zones, and the multitude of systems working across the entire enterprise that must be monitored and maintained 24/7.

Most LP solutions only provide after-the-fact reporting for reactive planning and operations. In other words, no one finds out the system is faulty until someone notices it doesn’t work, or until the signal of a pedestal has been jammed after the merchandise is gone. And, by then, the impact of the loss is typically greater than the cost associated with preventing it using smart, connected solutions.
IoT-Enabled Technology to the Rescue

To help bring real-time insights and measures to their LP program, retailers are turning to IoT-enabled solutions that can help with the job. Connected and cloud-enabled LP devices present a whole new world of opportunity to gain access to data, insights, and analytics that can give retailers the visibility they need to take preemptive action on shrink.

IoT connects people, devices, and apps through the cloud, enabling information to be passed seamlessly between devices and with associated secured networks, allowing loss prevention managers to monitor all their equipment simultaneously from a single location. Cameras and systems for each store exit, Internet-connected devices – sensors, equipment, and even store merchandise – can all be tied together to a store’s network to centralize store and system activity data and provide complete visibility down to the individual device level. Read more here.


Inside Australia's highly lucrative baby formula 'cartel':
Gang of tradies are caught on camera shoplifting tonnes of the product to ship it overseas

Members of a baby formula 'cartel' have been caught on camera stealing tins of the powdered product to sell on the lucrative overseas market. 

Security footage captured in a number of Sydney supermarkets shows what appears to be a gang of tradesmen in high-visibility clothing stuffing cans of formula into their bags and casually walking away.

The brazen burglars are thought to be shipping tonnes of the coveted commodity to international buyers - with one man allegedly leading police to a 24-foot container packed full of formula, Seven News reports.

Australian-made baby formula fetches a high price in overseas markets such as China, where the domestically produced equivalents are not considered as safe or as pure.

Chinese Sydneysiders are frequently seen buying up produce from Australian chemists and sending them back home, or advertising them on social media to make themselves a sizable profit.

In 2017, digital marketer Benjamin Sun from Think China estimated there were around 80,000 'daigou' plying their trade in Australia - up from 40,000 in 2014. These shoppers are known as 'daigou' - a Chinese word that translates to 'buying on behalf of'.

In attempts to combat stockpiled baby formula, where some footage showed customers grabbing it off the trolleys before it could even reach the shelves, major supermarkets were forced to set consumer limits. 

Woolworths announced in October 2017 that the supermarket chain was introducing a stricter limit in order to give all customers a fair chance. dailymail.co.uk

Mobilizing Against a Crisis Before It Hits
Today organizations can quickly and unexpectedly find themselves blindsided and in damage control mode as a result of an ever-growing likelihood of some form of crisis: labor disputes, cyberattacks, executive misconduct, and product safety issues just to name a few. Yet all crises carry a common risk of a sustained impact on shareholder value, management distraction, and reputational damage.

“By understanding the structural commonalities in managing responses to these events, organizations can navigate regulatory crises and mitigate associated risks,” notes Don Fancher, a principal with Deloitte Financial Advisory Services LLP, and global leader for Deloitte Forensic. In addition, organizations can take steps to prepare for crisis events in advance, such as by avoiding common mistakes, sensing for emerging risks with advanced data analytics, designating a core team beforehand, and organizing their tools and methodologies to conduct more effective internal investigations. Continued on page 2 wsj.com

SDM 2018 Top Systems Integrators Report:
A Security Transformation Is Underway - A $3.31B Market

In the security systems integration industry, while factors such as a great economy and stimulation of buyers by continued security threats are contributing to growth, it’s the morphing of security technology into broader business applications that is starting to drive noticeable demand.

Security integrators are benefiting from vital technology innovations that are far greater than just simple upgrades. One is the continuing gradual shift among end users to cloud-based platforms, which continues to boost new sales. But a more significant transformation is the evolution of security systems into business intelligence solutions — and that is vastly changing the function that security integrators perform for their clients and creating new business opportunities for integrators.

The 2018 Top Systems Integrators Report proves this trend. The report ranks security integrator companies by their North American systems integration revenue, which includes solutions such as design, project management, product, installation, programming, start-up, and training sold directly to an end-user customer or through a tier of contractors. Total North American systems integration revenue — which is different from total annual gross revenue — reached $3.31 billion in 2017.

“The market remained relatively consistent in all areas, but there was an obvious uptick in customers’ desire for an integrated security solutions model where technology integrates into other asset-protection related services. Physical and operational security situational awareness and harnessing the intelligence for predictive analysis is becoming a key expectation, as we have the ability to influence more of our clients’ portfolio,” describes Allied Universal Security Systems, ranked No. 11, of the business climate last year. sdmmag.com

Proposed Changes to Whistle-Blower Awards Should Foster Compliance
Paid Out $266M to 55 People - 4 of Which Got $112M

Securities and Exchange Commission (SEC) proposal to strengthen its discretion to increase awards to whistle-blowers under the Dodd-Frank Act should prompt companies to bolster their ethics and compliance programs. That's despite the fact that the commission has simultaneously proposed decreasing the amount of its large awards because they are less common.

From the time the SEC's whistle-blower program was implemented in 2011 through the end of fiscal year 2017, the commission has received 22,000 tips leading to enforcement actions in which the SEC has obtained $1.4 billion in remedies. The commission has ordered $266 million in whistle-blower awards to 55 individuals whose cooperation helped bring about successful enforcement actions. But approximately $112 million of that amount was paid to just four individuals in connection with two commission enforcement actions and a related action.

Historically, more than 60 percent of the awards distributed in the SEC's whistle-blower program have been less than $2 million, the SEC noted in announcing its proposed rule. Under that proposal, the commission could, at its discretion, increase the award―subject to the 30 percent statutory maximum—to an amount up to $2 million.

The SEC would consider whether an increase helps to better achieve the program's objectives of rewarding whistle-blowers whose claims have merit and sufficiently incentivizing future whistle-blowers who might otherwise be concerned about the low dollar amount of a potential award.

To balance out this increase, the SEC also proposed having the discretion to lower unduly large awards. It noted that 40 percent of the total funds paid by the commission to whistle-blowers have been paid out in only three awards. shrm.org

Nike's female employees are 'devalued and demeaned,' new lawsuit claims
Two former Nike employees filed a class action lawsuit against Nike in the U.S. District Court of Oregon Thursday alleging sex discrimination on the grounds that Nike pays women less than their male counterparts, promotes women less and offers them smaller annual salary increases and bonuses, according to court filings and The Wall Street Journal, which first reported the news.

Sara Johnston and Kelly Cahill, the two plaintiffs who filed the lawsuit, claim the company fosters an environment "where women are devalued and demeaned" and that "the company hierarchy is an unclimbable pyramid." They claim that women are passed over for promotions and must "far outshine her male counterparts" to succeed.

In addition to poor promotion opportunities, former Nike employees Johnston and Cahill also claim the company ignores female employees' complaints about sexual harassment and discrimination, and that "male bad behavior is rarely penalized." retaildive.com

Chicago, IL: Officials apologize for ‘bait truck’ filled with expensive Nikes after video emerges online
Officials have apologized after video footage of a so-called “bait truck” in Chicago went viral, drawing the ire of community members and civil rights groups. The bait truck was left in the Chicago neighbourhood Englewood, and attracted would-be thieves with expensive Nike shoes stocked in the back of the vehicle. The bait was planted as a part of a joint surveillance operation between the Chicago Police Department and Norfolk Southern Railway. Chicago police have said that they did not participate in the planning for the truck, but did assist with arrests when asked. “We sincerely regret that our actions caused further unease, and we don’t plan to use this method in the future,” Herbert Smith, a manager of community and legislative relations for the railway, told the Chicago Tribune in a letter. independent.co.uk

Employees Secretly Record Managers for Litigation
As smartphones have become common, employees are recording work conversations without employers' knowledge or permission in preparation for discrimination, sexual harassment and whistle-blower lawsuits. These recorded conversations have included talks with co-workers, meetings with supervisors, and even discussions with HR and executives. State and federal laws limit employers' ability to prohibit recordings, but the Trump administration has loosened federal restrictions.

"A recording of sexual harassment or a discriminatory comment can be very powerful evidence and damaging to the employer," said attorney Jay Holland. shrm.org

Police Bodycams Can Be Hacked to Doctor Footage
As they proliferate, police body cameras have courted controversy because of the contentious nature of the footage they capture and questions about how accessible those recordings should be.

But when it comes to the devices themselves, the most crucial function they need to perform—beyond recording footage in the first place—is protecting the integrity of that footage so it can be trusted as a record of events. At the DefCon security conference in Las Vegas on Saturday, though, one researcher will present findings that many body cameras on the market today are vulnerable to remote digital attacks, including some that could result in the manipulation of footage. wired.com

Charlotte, NC: Pregnant woman embarrassed after police ask her to lift up her shirt
She was being questioned about shoplifting at Staples

A woman 34 weeks pregnant with twins mistakenly stopped for shoplifting. The woman was questioned by Police as to what was under her shirt, the customer’s response was ‘twins’. The Police asked again and the woman lifted the lower portion of her shirt to expose her belly to satisfy the officer. The Staple’s Manager believed the woman may have concealed merchandise and approached the Police Officer working an off-duty detail in the store. wsoctv.com

"They Steal Shamelessly" From Everyone
How The Best Retailers Pilfer Their Best Ideas

“The most important weapon in a retailer’s armory is shoe leather,” the noted environmental psychologist and author Paco Underhill once told me. By which he meant that it’s critically important for retail executives to get out from behind their desks and walk stores: observe shoppers, talk to sales associates, and look for the latest retail and societal trends. (Of course, that rule extends to the online world today, where your fingers can do the walking, checking out sites, apps and digital experiences.)

The best retailers do this habitually. They are constantly curious, continually in the market, and actively shopping in order to unpick retail experiences, and unlock inspiration. And they don’t just keep a check on their own category. While it’s important to know what your competitors are up to, all that may do is reinforce existing paradigms. The sharpest retail merchants look beyond their own category for inspiration, and they steal shamelessly, but also inventively. forbes.com

Retail sales in 2018 could climb higher than forecast, National Retail Federation says
Spending at retailers — excluding automobiles, gasoline stations and restaurants — is now predicted to climb at least 4.5 percent, from it's original forecast range of 3.8% to 4.4%

"Higher wages, gains in disposable income, a strong job market and record-high household net worth have all set the stage for very robust growth in the nation's consumer-driven economy," NRF President and CEO Matthew Shay said in a statement. "We knew this would be a good year, but it's turning out to be even better than expected." cnbc.com

Is Barnes & Noble "Crumbling"?
Barnes & Noble's Fourth CEO in Five Years Alarms Publishers & Investors

The chain is once again dealing with a management vacuum when it desperately needs to adapt and innovate. Sales are falling. The Nook, Barnes & Noble’s attempt at selling electronic books, became a financial drain. Critics say the company lacks direction, sometimes seeming to prioritize sales of gifts and tchotchkes over books. For investors, the impact is already evident: Barnes & Noble’s stock price is down 60 percent over the last three years.

Publishers are worried that a crucial pipeline for book sales could be crumbling. nytimes.com

2019 Salary Budgets Inch Upward Ever So Slightly
Salary-increase budgets for U.S. employers next year are projected to grow by just 0.1 percent above the actual average budget increase for 2018, confirming that wage growth remains surprisingly stagnant despite record low unemployment.

U.S. salary budgets are projected to rise by an average of 3.2 percent in 2019, up from an actual year-over-year increase of 3.1 percent for 2018, according to the WorldatWork 2018-2019 Salary Budget Survey: Top-Level Results, released on July 10. shrm.org

Lancaster, PA: Sinkhole opens up at outlet mall, crane used to remove fallen vehicles
At least six vehicles were engulfed by the sinkhole that opened at Tanger Outlets at about 4:45 p.m. Friday. Reporters said that a worker tethered to a tower ladder from Lafayette Fire Company climbed into the sinkhole and connected the cars to the crane. All vehicles had been removed by about 1:15 a.m. Saturday. A fence has been set up closing off the area around the sinkhole. A woman was reportedly in one of the vehicles when the sinkhole opened, but no injuries were reported. foxnews.com

The 11th episode of LPRC’s CrimeScience covers Artificial Intelligence & Machine Learning in Retail AP
The 11th episode of the Loss Prevention Research Council's podcast, CrimeScience, is now available. This episode features co-hosts Dr. Read Hayes (LPRC) and Tom Meehan (CONTROLTEK), along with featured guest Dr. David Speights & Dr. Daniel Downs (Appriss Retail) as they discuss artificial intelligence, machine learning, big data and much more!

Access all episodes so far through the "Podcasts" app on your iPhone or through Google Play Music!

iOS: https://apple.co/2GEFlvV
Android: http://bit.ly/2rWVVno

If you would like to provide feedback or get involved with the podcast, please contact kevin@lpresearch.org


Back-to-school shopping: Bulletproof backpacks & protection supplies

Aldi to expand grocery delivery and curbside pickup nationwide
 

Last week's #1 article --

Amazon Wants to Hire 237 People to Work From Home

 

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eBay Global Asset Protection
Partnerning with Retailers Offensively Against Crime and Theft (PROACT), since 2007

$19k worth of stolen radios found on eBay

A former security guard at Hiram G. Andrews Center in Upper Yoder Township will appear in Cambria County court, accused of stealing $19,000 worth of portable radios and other devices from the education facility, authorities said.

Police allege that Varner stole 13 Motorola digital radios – along with chargers, batteries, microphones and other accessories – from a storage room between January and May.

Some of the stolen items later turned up on eBay. Police said they obtained a search warrant for the eBay account and tracked the seller to a business in Ebensburg. Varner allegedly sold the items to the business, which later resold some of the items on eBay. Read more

For further information on PROACT, email inquiries to PROACT@eBay.com.



Spotlight on Nedap
 

Back-To-School:
What That Means For Your Loss Prevention

By Patrick O'Leary, Vice President & General Manager, Nedap Retail

“Back to School” means big business for any retailer from electronics to office supplies as well as shoes, backpacks and apparel. The average family with school-aged children is planning to spend $684.79 on electronics, apparel and other school needs this year, according to NRF’s Back-to-School Spending Survey conducted by Prosper Insights & Analytics. For families with college kids, this number is even higher.

So, inventory is high, the crowds are large and the opportunity for thieves even bigger. Some even call the months of July, August, and September the “super shoplift season.”

With school starting anywhere from the middle of August to mid-September, businesses are busy running special sales. While last year most back-to-school shoppers took more time to prepare, the survey indicates that this year 37% of the back-to-college shoppers are planning to procrastinate until 3-4 weeks before school start this year. Families with school-age children are waiting even longer to buy supplies. This means more customers in the store at the same time.

However, whenever there are significant sales and many customers, there are also many opportunities for shoplifting and employee theft. Here are some actionable tips how you can prepare your business from a loss prevention standpoint:

Seize Every Opportunity To Remind Employees Of Your Shoplifting Policies
Schedule store-wide or departmental meetings before the rush begins to remind every single employee of your policy towards shoplifting. If you don’t have a policy regulating how each member of your organization should conduct themselves when facing a shoplifting or fraud situation, you should develop one as quickly as possible.

It should outline who is authorized to approach suspected thieves, what the protocol is for your security guards, and how you will deal with employee theft and sweethearting. If you have an EAS systems in place that does not automatically monitor its status, include a daily testing protocol as well.

Consider Increasing Your Tagging Levels
Most retailers that are using RF-based EAS solutions have a low tagging level of 20-40% of their high-value and most likely-to-be-stolen merchandise. However, by increasing the number of products that have a security label on them will help deter thieves as well as make your store overall more safe.

Read More Here





Business Groups Take Up Fight To Amend Calif. Privacy Law
More than three dozen business groups from the tech, retail, health, banking and other sectors are pushing California lawmakers working on making "technical" changes to a hastily enacted landmark privacy law to address some of the more "unworkable" aspects of the statute and to extend the compliance deadline. 

However, given that the bill was rushed through the California legislature in less than a week to prevent a more stringent privacy initiative from appearing on the November election ballot, it's widely believed that the requirements will be tweaked before the law is slated to take effect in January 2020. 

California lawmakers began the amendment process almost immediately by introducing Senate Bill 1121, a "cleanup" bill that is meant to make "a variety of technical corrections" to the enacted law. In an Aug. 6 letter sent to Sen. Bill Dodd, who is sponsoring the bill, a diverse group of stakeholders including the California Chamber of Commerce, Association of National Advertisers, California Bankers Association and Retail Industry Leaders Association requested to be included in the amendment process and detailed their suggestions for fixing both drafting errors and "aspects of this bill that would be unworkable and that would result in negative consequences unintended by the authors."

"It is important to fix as many of these problems as soon as possible," the groups wrote in their letter. "The stakes are too high to delay any further — for consumers, businesses, the Attorney General, and the economy." 
law360.com

Weaponized AI and facial recognition enter the hacking world
Your face could trigger a DeepLocker AI-powered malware attack or be used by Social Mapper to track you across social media sites.

Meet Social Mapper, a facial recognition tool that searches for targets across numerous social networks, and the highly evasive and highly targeted AI-powered malware DeepLocker.

Open-source Social Mapper face recognition tool

The open-source intelligence-gathering tool Social Mapper uses facial recognition to automatically search for targets across eight social media sites: Facebook, Twitter, LinkedIn, Instagram, Google+, the Russian social networking service VKontakte, and the Chinese social networking sites Weibo and Douban.

Social Mapper was developed by Trustwave’s Jacob Wilkins to help pen testers and red teamers with social engineering attacks. Instead of manually searching social media sites for name and pictures, Social Mapper makes it possible to automate such scans “on a mass scale with hundreds or thousands of individuals.”

AI-powered DeepLocker malware attacks

If everyday malware is not considered evasive enough, then think about weaponized artificial intelligence (AI) and then meet the new attack tool DeepLocker, which is powered by AI for “highly targeted and evasive attacks.”

AI is being used to automatically detect and fight malware, but IBM Research decided to flip that and came up with a game changer – a “highly evasive new breed of malware, which conceals its malicious intent until it reached a specific victim.” The researchers explained that DeepLocker “unleashes its malicious action as soon as the AI model identifies the target through indicators like facial recognition, geolocation and voice recognition.”
csoonline.com

Phishing Confessions from Security Professionals
We Asked 102 Security Professionals 11 Questions about Phishing

The topics covered the gamut: personal experience with phishing, developments making the problem worse, challenges in tackling it, approaches to phishing defense, and more. Some data on survey respondents:

Summary
Nearly 8 in 10 security professionals know someone hit by phishing, often a co-worker. Professionals are particularly concerned about emails that spoof company messages. Yet roughly half their companies don’t offer adequate phishing awareness training and about the same percentage take days or months, not minutes, to detect and respond to threats. When making security investments, many companies are driven by fear. Little wonder. *Registration is required
csoonline.com

Why Employees are Your Greatest Cyber Risk
BYOD Drives Vulnerability to Hackers - Malware - Data Breaches

A new study has found that nearly two in five workers admitted to clicking on a link or opening an attachment from a sender they did not recognize.

This security slip-up is significant due to the installation of malware on their devices and the harvesting of sensitive corporate data.

Resulting from the societal BYOD (bring your own devices) trend, the Finn Partners Research study shows that more than half of employees (55 percent) are using their personal devices for work, which directly impacts increased vulnerability to hackers, malware and data breaches. In addition, only 26 percent of employees change their login credentials and/or passwords for personal and work applications at least once a month.
securitymagazine.com

Millions of businesses vulnerable to fax-based cyber attack
Hackers could exploit security vulnerabilities in fax machines to launch cyber attacks in millions of organisations around the world, researchers warn, underlining the need for cyber resilience.

Detailing the discovery of vulnerabilities in the communication protocols of fax machines at the Defcon security conference is Las Vegas, the researchers said a fax number is all an attacker needs to exploit the vulnerabilities to send ransomware, spyware, cryptominers and data stealers or even seize control of a company or home network. 

The vulnerabilities in protocols that were set in the 1980s and have not been updated since allow a hacker to create a specially coded colour jpeg fax image that can have any type of malware coded into the image file. This image is then sent down the phone line to the target fax device. 

It is critical that organisations protect themselves against these possible attacks by updating their fax machines with the latest patches and separating them from other devices on their networks.
computerweekly.com

How Technology Can Help Fight Retail Shrink
RFID, computer vision, AI and more are joining the fight against lost inventory

Retailers aren’t blind to the issues of retail shrink. Stores have been aware of these problems for years and have adopted a variety of different measures in response, including electronic article surveillance (EAS) and upgraded video cameras. Sephora, for instance, has implemented EAS systems and traded analog cameras for IP cameras with the aim of improving security and offering more robust data to bolster analytics around loss, training and business decisions.

As radio frequency identification tags, computer vision and artificial intelligence begin to enter the realm of retail, many stores are tapping these tools in new ways with the aim to combat retail shrink.

Retailers Keep Track of Inventory with RFID

RFID — which, unlike EAS, allows retailers to keep tabs on individual items by giving them unique identifiers — has become a commonly adopted technology for loss prevention in recent years. In fact, a recent IDC study uncovered that 80 percent of retailers have set aside funds to spend on visibility platforms, such as RFID and Internet of Things devices, and 60 percent already have a visibility platform in place.

Business Matters magazine reports that RFID can be used for security in two ways: access control and protection against theft.

According to the publication: “For access control, RFID devices such as smart cards, fobs and wristbands can be used as electronic keys. As each individual can be given access to different areas, it means that you can control not only who can enter but also where different employees may and may not go.”

When it comes to theft, companies can tag stock and equipment, which will alert staff if anyone takes an item outside the building without permission or payment.

Emerging Tech Joins the Battle for Loss Prevention

While tracking technology is becoming commonly used in traditional retail stores, entirely new store formats — such as Amazon Go — are transforming the customer experience, eliminating the need for interaction with cashiers and employing new types of technology that could make it easier to catch shoplifters.

A store prototype in Santa Clara, Calif., for instance, uses AI and cameras to track what customers pick up, then automatically charges them as they leave the store.
biztechmagazine.com

FBI Warns of ‘Unlimited’ ATM Cashout Blitz
The Federal Bureau of Investigation (FBI) is warning banks that cybercriminals are preparing to carry out a highly choreographed, global fraud scheme known as an “ATM cash-out,” in which crooks hack a bank or payment card processor and use cloned cards at cash machines around the world to fraudulently withdraw millions of dollars in just a few hours.

“The FBI has obtained unspecified reporting indicating cyber criminals are planning to conduct a global Automated Teller Machine (ATM) cash-out scheme in the coming days, likely associated with an unknown card issuer breach and commonly referred to as an ‘unlimited operation’,” reads a confidential alert the FBI shared with banks privately on Friday.

The FBI said unlimited operations compromise a financial institution or payment card processor with malware to access bank customer card information and exploit network access, enabling large scale theft of funds from ATMs.
krebsonsecurity.com



 

Command & Control:

SOCLab Operations

Episode 6

Fred Becker, Corporate Director of Loss Prevention, Bloomingdale’s
Tom Meehan, Chief Strategy Officer & Chief Information Security Officer, CONTROLTEK USA

In this sixth and final episode of our 2017 "Precision LP Impact" Conference series, learn about the LPRC’s Command & Control: Security Operations Center Lab (or SOCLab) Operations.

Fred Becker of Bloomingdales and Tom Meehan, formerly of Bloomingdales and now with CONTROLTEK USA, walk us through the LPRC's SOCLab Innovation Chain plans and how the many ways they're working to support strategic crisis and investigative operations.

This LPNN special series was designed to give you a thorough understanding of the only team-driven LP & AP academic efforts in retail history.

We hope you watch the entire series and learn how an academic approach is helping LP & AP impact the Total Retail Enterprise.

If you would like to learn more about the LPRC or get involved, please visit lpresearch.org.

 

Sponsored By:
 

 




e-commerce
Sponsored by The Zellman Group

Bezos Tells All Candidates - 3 Ways to Work
"You can work long, hard, or smart, but at Amazon.com you can't choose two out of three"

Bezos acknowledges his high standards for employees every year, telling shareholders that "it's not easy to work here."

"Setting the bar high in our approach to hiring has been, and will continue to be, the single most important element of Amazon.com's success."

The New York Times reported in 2015 exactly how bruising the work environment at Amazon could be. Employees were reportedly expected to routinely work late, were encouraged to criticize coworkers' ideas at meetings, and were often found crying at their desks. Amazon disputed many of the claims in the Times investigation, though the newspaper defended its reporting.

NOW WATCH: Jeff Bezos reveals what it's like to build an empire and become the richest man in the world — and why he's willing to spend $1 billion a year to fund the most important mission of his life.

Mathias Döpfner, the CEO of Business Insider's parent company, Axel Springer, recently sat down with Amazon CEO Jeff Bezos to talk about the early days of creating Amazon, what he's learned since then, how he funds his rocket company, Blue Origin, and what it's like when the president of the United States is your biggest critic.

The sit-down interview happened in Berlin, where Bezos received the Axel Springer Award 2018 for innovation, this past April. businessinsider.com

Editor's Note: Hundreds of people protested during Bezos' award presentation, over the company's treatment of workers and the company's tax policies. German unions have been pushing for higher pay for the thousands of workers and better labor conditions. Germany is Amazon's second biggest market behind the U.S. with $17B in sales. bloomberg.com

Algorithms feeding unsustainable price cuts online
While consumers and sellers alike may think that Amazon itself is driving price competition, it's now often third-party marketplace sellers, on Amazon and Walmart, that initiate price-based skirmishes, according to the report. Dynamic pricing algorithms have enabled retailers to detect every online price change, including temporary promotions, and that's, "leading to race-to-the-bottom behavior and permanent drops in Average Selling Price," Profitero said.

Brands and retailers are also getting caught up in price-matching schemes that trigger price declines based not only on shelf prices but also "irregular" prices like rollbacks, coupons, combos like buy one get one (which get matched on a per unit basis) and special in-cart prices. Furthermore, some third-party sellers are offering low prices on merchandise from liquidation channels or gray markets, without regard for brand equity, pricing strategies or economics — yet those prices are still being matched, Profitero warned.

And while Amazon is keen to meet or beat Walmart's prices, some items priced too low could end up in Amazon's crosshairs, according to the report. Amazon has a method of cutting off sales of items priced too low to be profitably shipped, labeled "CRaP" or "Can't Realize any Profit." retaildive.com

The top-selling categories on Prime Day were .... more than 100 million products
1. Electronics with sales spiking 215% on Prime Day.
2. Home improvement category as sales surged 200%.
3. Beauty sales increased by 186%, pet sales went up by 134%. Grocery sales more than doubled (+108%). chainstoreage.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 & Zelligent




ORC News
Sponsored by Auror
 

Wichita Falls, TX: Former Wichita Falls Police Officer, $300,000 ORC Kingpin sentenced to 10 years
A former Wichita Falls Police officer is heading to prison after pleading guilty to leading a theft ring. 54-year-old Scott Higgins was identified by numerous individuals as the man directing them to steal from steal products from retailers in the Dallas and Wichita Falls area. Investigators discovered that Higgins and his family were selling the stolen goods on eBay and social media. Over the course of one year, the theft ring stole over $300,000 in merchandise. Higgins guilty plea was accepted in July and last week 78th District Judge Barney Fudge sentenced Higgins to 10 years in prison. As part of the plea agreement, charges against Higgins wife, son and daughter were dropped. newstalk1290.com

Union County, NC: Woman involved in Police chase and crash facing more charges; link to $100,000 in merchandise theft from The Home Depot
A woman who crashed in Union County Tuesday after being followed by a police helicopter from Charlotte is now believed to be responsible for even more crimes, according to the Union County Sheriff's Office. Amanda Sawyer, 30, was facing 21 charges in connection with the pursuit including child abuse and failing to secure children in a car seat. Now, she's facing even more charges after deputies say multiple stolen items were found in her vehicle. Investigators say unopened boxes of DeWalt power tools and a Milwaukee M18 fuel combo kit were inside the vehicle. They say Sawyer stole the items, worth more than $5,000, from Home Depot stores in High Point and Burlington. A Corporate Investigator with The Home Depot said Sawyer stole $100,000 from the home improvement stores over the past year.

Detectives also believe Sawyer opened a fraudulent account using a stolen identity and used the credit card to buy nearly $1,500 in merchandise from a Walmart in Indian Trail in July. The CMPD Aviation Unit began following Sawyer's vehicle shortly before 4 p.m. Tuesday. Sawyer then went into Union County before crashing into another vehicle at the intersection of U.S. 74 and Dickerson Boulevard in Monroe. North Carolina State Highway Patrol troopers, who started pursuing Sawyer once she reached Union County, said two children were in the car at the time. wbtv.com

Upper Marlboro, Maryland, Man & ID Fraud Gang Member Gets 2 Yrs & $60k Restitution Order
Victor Sesay, age 38, and his two codefendants used the cards to acquire high dollar credit and gift cards from multiple stores in South Dakota and other locations across the Midwest. As a result of the theft scheme, local credit unions, as well as other FDIC insured banks across the Midwest, incurred approximately $60,000 in financial losses. justice.gov

Home Depot employee charged with $3,000 theft in July incident
A Home Depot employee accused of helping a customer leave with nearly $3,000 worth of merchandise last month has been charged with theft. Authorities said officers were called to the store on July 14 after store managers confronted Dawn Anne Ruhs. According to the police report, Ruhs began a sales transaction for a customer with a cart full of merchandise but voided the transaction before payment was received. The 45-year-old was seen on security video taking the merchandise, which included a riding lawn mower, out of the store with the customer, the report states. theeagle.com

Roseville, CA: Shoplifters try their luck at two Ulta Beauty stores, stealing over $1,000 in merchandise
Two alleged shoplifters who made off Tuesday with about $1,000 in products after pepper spraying an employee at an Ulta Beauty store in Lincoln were arrested in connection with a similar crime about an hour later in Roseville. Around 6 p.m., police said that Misty Lanelle Wilson, 19, and Troy Joseph Turnage, 20, entered the Ulta Beauty at Ferrari Ranch Road, put merchandise into a grocery bag and attempted to leave without paying for the items. As they were leaving, one of the suspects sprayed the employee, who was standing near the exit, police said. Wilson and Turnage fled the scene in a vehicle before police arrived.But it wouldn’t be long before police would soon get a tip on their two suspects’ whereabouts. The Roseville Police Department informed Lincoln Police at about 7:30 p.m. that two individuals had been arrested in connection with a similar robbery in their city. sacbee.com

Myrtle Beach, SC: Woman wanted in connection to Hollister store Robbery at Coastal Grand Mall
A woman is still wanted Saturday for her role in a late July strong armed robbery at a store in the Coastal Grand Mall. According to police, Crystal Renee Smith, 31, was one of three women involved in a July 21 robbery at the Hollister store inside the mall. The police report says Smith and the two other women entered the store and began attempting to remove and hide security tags from certain items of clothing. The group then allegedly assaulted a responding store employee and stole her phone in the process. The report continues to say a pair of pliers that were used to remove the security tags were recovered from the scene. wmbfnews.com

Riverhead, NY: Juvenile male arrested for $782 theft from Stop & Shop; pulled Stun Gun on Loss Prevention

Pensacola, FL: Two Molino Men Arrested For Walmart $600 Theft, One Had A Loaded Gun And Spice



Retail Crime News
 

Shootings & Deaths

Indianapolis, IN: Man attempting Armed Robbery of a Gas Station dies after customers shoot him
A man attempting to commit armed robbery of a northeast side GetGo gas station died on Saturday night after two customers inside the business shot him. According to police at the scene, the suspect entered the store and displayed a weapon. Then two customers discharged their weapons. He did not appear to have taken anything from the store. According to police, no one else was injured in the incident. wishtv.com

Sumter, SC: Man Shot, Killed at Auto Shop
Sumter County Deputies are searching for a suspect who they say shot and killed a man at an auto shop Saturday afternoon. Officers say around 4:30 p.m., deputies responded to a call of a shooting at Auto Doctors. When deputies got there, they found a man who'd been shot. The victim, who's been identified as 34-year-old Sharmine Pack, was taken to the hospital where he later died. Witnesses say they saw the shooter drive up to the store, and then moments later, they heard at least one gunshot. The shooter then left the scene. wistv.com

Jacksonville, FL: Woman shot and killed in a McDonald’s Drive-Thru
The family of a woman shot and killed in a McDonald's drive-thru on Baymeadows Road Friday said the 32-year-old was a loving mother of three children and didn't deserve to die. Family members say Jamie Roque was a devoted mother of three young boys and brightened the lives of everyone she knew. Roque was in the process of ordering breakfast Friday morning in the drive-thru line of the McDonald's restaurant on Baymeadows Road between Interstate 95 and Philips Highway when a man approached and shot her in the head, according to the Jacksonville Sheriff's Office. She died shortly after being rushed to Memorial Hospital. news4jax.com

Lancaster, CA: Decomposing body found inside California supermarket entrance column
A dead body found inside a stone pillar outside a WinCo Foods in Lancaster could be the remains of a man who was fleeing from authorities earlier in the week, according to officials. Around 2:30 p.m., the manager of the store on the 700 block of West Avenue K reported a strong smell from the column. He called a repairman thinking it was some type of sewer leak. A handyman and plumber began removing bricks and soon afterward, they noticed a shoe and leg inside the grocery store column. The body was in a state of decomposition and the person's gender is unknown at this time, according to Lt. John Corina with the Los Angeles County Sheriff's Department. nbclosangeles.com

Las Vegas, NV: Security guard opens fire on Ross Dress for Less Manager at business he was supposed to be guarding
A security guard in Las Vegas opened fire on the manager of the store he was supposed to be protecting -- and the police officers who came to stop him -- in a wild scene on Saturday afternoon. According to the Las Vegas Metro Police, the security guard and female manager of a Ross Dress for Less, a discount clothing store, got into an argument. The security guard left for the parking lot and returned with a gun, when he opened fire on the manager -- and indiscriminately in the crowded store.

"He then began to shoot towards the manager, with zero regard to the shoppers inside the store," police said in a statement. After exiting the store, the guard then opened fire on responding officers. None of the officers were hit by gunfire, but the suspect was shot, police said. The security guard was the only person injured in the shooting. Police said he was taken to a Trauma Center and was in surgery Saturday evening. abcnews.go.com

New York: NYPD track down alleged gunman who killed a Queens bodega clerk in botched robbery 7 years ago

Omaha, NE: Police make arrest in shooting of C-store Security Guard in July; critically injured but survived
 


Robberies, Incidents & Thefts

Sunrise, FL: Shoplifter with knife causes Sawgrass Mills mall evacuation
Shoppers evacuated the Sawgrass Mills mall Sunday after someone armed with a knife shoplifted from one of the stores, authorities said. The incident was a shoplifting where the suspect had a knife," the Sunrise Police Department said on Twitter. After about an hour, police had finished a search of the mall and shoppers were allowed to return. The incident happened just after 2:30 p.m. Sunday, near the food court. Some people inside the mall thought they heard gunshots and panicked. local10.com

El Cajon, CA: Police Officer struck with a hammer during an Armored Car Robbery outside Jack in the Box restaurant
The incident happened near the Jack in the Box on Main Street near El Cajon Boulevard about 11:20 a.m., El Cajon police Lt. Royal Bates said. It ended with the arrest of 30-year-old Robert Dille on suspicion of attempted robbery and attempted homicide on a peace officer. According to investigators, Dille was armed with a framing hammer when he initially demanded cash from a security officer from an armored vehicle, Bates said. The armored vehicle’s security guards were making either a pick-up or delivery at the fast food restaurant, and the driver triggered a robbery panic alarm. sandiegouniontribune.com

Houston, TX: Store where Owner was shot and killed Thursday falls victim to Burglary

NYC: Actress Sean Young wanted for questioning in NYC $12,000 Burglary

Missoula County, MT: Man accused of filling water cup with soda at Arby’s starts fight, gets Tased

Kay Jewelers in the Palm Coast’s Town Center, Flagler County, FL reported a Smash & Grab Robbery on 8/11, no injuries reported

Peoples Jewellers in the Vaughn Mills, Vaughn ON, CN reported a Grab & Run on 8/9, item valued at $3,599

Piercing Pagoda in the Cottonwood Mall, Albuquerque, NM reported a Grab & Run on 8/8, items valued at $2,109

Sam’s Jewelers in San Leandro, CA reported the arrest of 2 men for the 7/24 Robbery


UK: South East London: Off-duty Police Officer stabbed as he tried to stop moped gang from robbing man

Moscow, Russia: Shoplifter stealing alcohol stabbed 2 Policemen during detention
 


Arson & Fire

Osage Beach, MO: Firefighters Beat Back Early-Morning Blaze at Osage Beach Outlet Mall; Second fire this year
 


Sentencings & Charges

Fake ATF Agent threatened to kill Jewelry Store owner in home invasion; sentenced to 45 years

Ballston Spa, NY: Woman who was part of a group that committed several knifepoint Armed Robberies in Saratoga County, sentenced to 6 months in jail and 5 years on probation

Greenbelt, MD: Lanham Man Sentenced to 15 Years in Federal Prison for Armed Robberies


Syracuse, N.Y., Man Gets 1 Yr Fed. Prison & $3.5M Fine For Manufacturing & Selling Contraband Cigarettes

 


Robberies and Burglaries
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Adult Store – Lowndes County, MS - Armed Robbery
Advance Auto – Houston, TX – Armed Robbery
Beauty Supply – Little Rock, AR – Armed Robbery
Boost Mobile – Dayton, OH – Armed Robbery
Boost Mobile - Rio Grande City, TX – Robbery
C-Store – Bay Springs, MS – Armed Robbery
C-Store – Louisville, KY – Armed Robbery / Owner shot and wounded
C-Store – Coshocton, OH – Armed Robbery
C-Store – Columbia, MO – Armed Robbery
C-Store – Fayetteville, AR – Armed Robbery
C-Store – Rome, GA – Robbery
C-Store – Kalamazoo, MI – Robbery
CVS – Waynesboro, PA – Robbery
CVS – Portsmouth, VA – Armed Robbery
Dollar General – Macon, GA – Burglary
Dry Cleaners – Staten Island, NY – Armed Robbery
Family Dollar – Allentown, PA – Armed Robbery
Gas Station – Houston, TX – Burglary
Jewelry – San Antonio, TX – Burglary
Jewelry - Flagler County, FL – Robbery
Jewelry – Peoria, IL – Burglary
McDonald’s – Pueblo, CO – Robbery
Metro PCS – Winston-Salem, NC – Robbery
Motorcycle Dealer – Marion County, FL – Burglary
Pawn Shop – Pueblo, CO – Armed Robbery
Restaurant – Chattanooga, TN – Burglary
Restaurant – El Cajon, CA – Robbery
Truck Stop – Rome, GA – Burglary
Verizon – Santa Clarita, CA – Burglary

 

Daily Totals:
21 robberies
8 burglaries
1 shooting
0 killings



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