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August 15, 2014

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News Brief
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David George, CFE, CFI named Vice President of Asset Protection for Dollar General Corporation. With nearly 12,000 stores in 40 states, Dollar General has more retail locations than any retailer in America. As a Fortune 200 company with $15 billion in sales, Dollar General has become one of America’s most-trusted sources for quality brands such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg's, General Mills, and PepsiCo. David comes to Dollar General with significant experience in creating efficient, profit-enhancing solutions to business challenges for both hard and soft product lines. His experience began at big-box retailer K-Mart Supercenters before spending 14 years at Harris Teeter Supermarkets in a variety of roles including the Vice President of Asset Protection. David is a Certified Fraud Examiner, Certified Forensic Interviewer and the Vice Chairman of the Food Marketing Institute (FMI) Asset Protection Council. Congratulations David!

Ferguson Shooting - Teen shot by cop suspect in recent strong-arm robbery of convenience store  The chief told reporters that members of his department would be handing out copies of a police report from the strong-arm robbery of a convenience store that occurred prior to Brown being shot by Wilson. During his prepared remarks, the chief said Wilson first approached Brown because he fit the description of the suspect sought in the store robbery. "I cannot discuss the investigation about the attempted apprehension of the suspect in the strong-arm robbery," he said. "That goes to the county prosecutor's office."  (Source yahoo.com)

Supervalu's Data Breach Could Be POS Hack In 1,000 stores  It is investigating a data breach at roughly 200 of its grocery and liquor stores in an incident that also stretched to hundreds of other stores around the country that it recently sold. In addition to Supervalu's own brands that include Cub Foods, Hornbacher's and Farm Fresh, the breach hit the Albertsons, Acme Markets, Jewel-Osco, Shaw's and Star Markets brands in roughly two dozen states. Supervalu provides technology services to those stores, which were acquired by private-equity firm Cerberus Capital Management from Supervalu last year. People familiar with the situation said then that as many as 1,000 stores may have been affected. Supervalu described the breach as a "criminal intrusion" that may have resulted in the theft of account numbers, expiration dates and cardholder names from customers who used plastic at the stores. The breach appears to have taken place between June 22 and July 17, the companies said. It may have may have resulted from hackers installing malicious software onto the company's point-of-sale network. (Source wsj.com)

Prime Target For Hackers - Contractors & work-from-home employees  Four in 10 of a 127 self-proclaimed hackers surveyed last week at the Black Hat conference in Las Vegas listed the login credentials of contractors as a major prize. Three in 10 valued the names and passwords of IT administrators. In both cases, hackers sought the credentials as a quick way to get direct access to servers and systems housing valuable company data. By identifying contractors as a prime target, the poll is a reminder that securing the network perimeter no longer stops at corporate offices. Instead, businesses have to consider the homes of contractors and employees. A lot of IT policies and security that are in place today don't strongly consider your work-from-home employees or contractors. Editors Note: With the Target breach coming through one of their HVAC sub-contractors and according to reports that trend is continuing, the vendor community has to make internet security a primary focus. Merely relying on passwords isn't enough and quite frankly with so many vendors requiring access to the retailers networks it's rather amazing how more hasn't happened. But given this recent survey of actual hackers we now know that they're focusing on the vendor community and on employees who work at home. Drive-By hacking is the new craze and we need to address this as an industry with training and awareness campaigns for the employees and thorough reviews with our business partners. (Source csoonline.com)

Potential Data Breach May Have Affected More Than 1,000 Stores  Minneapolis-based Supervalu, which has 3,320 stores in all, hasn't notified customers about the potential incident, said the people familiar with the matter. Merchants often don't alert customers about breaches until they know the scope of the attack. Supervalu had sales of roughly $17 billion last year. It is the seventh-largest U.S. grocery chain, with a 2.1% market share, and operates under brands such as Cub Foods, Farm Fresh and Save-A-Lot. An attack on the company's point-of-sale system would be similar to other recent high-profile data breaches, most notably the massive hack that occurred at Target Corp. Since then, hackers also have taken aim at a number of merchants, including luxury retailer Neiman Marcus Group, restaurant chain P.F. Chang's China Bistro Inc., and Goodwill Industries International Inc. thrift stores. Any new data breach is likely to stoke the growing concerns about security among merchants, consumers and card-issuing banks. Most of Supervalu's stores are independently run but receive their goods from Supervalu. The company also handles the information-technology systems for those stores, as well as other grocery chains. (Source wsj.com)

Fraudulent employment applications at an all time high in UK - Is it a trend in the U.S. as well? In the first half of 2014, over half of all the confirmed frauds (63%) recorded to the CIFAS Internal Fraud Database were Employment Application Frauds: frauds where job applicants have made serious fraudulent declarations about employment history, qualifications, criminal records and so on. This is in keeping with the trends recorded during the previous year and underlines how vital it is for applicants to understand that lying in an application is far from harmless or acceptable. In fact, applicants who submit false or exaggerated information run the risk of dismissal and, in worst case scenarios, the risk of criminal charges. The scale of the fraud also shows that organisations are running more stringent checks now than ever before. While it is of concern that there are increasing numbers of individuals who are turning to fraud in order to gain employment, it is encouraging that the proportion of applicants who were unsuccessful remained high (79%). This means that organisations are sifting these out before there is any chance of financial, reputational or regulatory damage being caused. (Source retailfraud.com)

Rebound for real at JCP

New Hampshire Senate sends ORC retail theft bill (S 858) to Governor Patrick for signature

Quarterly Same Store Sales Results
J.C. Penney Q2 up 6% with sales up online sales up 16.7%
Nordstrom Q2 up 3.3% with net sales up 6.2%
Dillard's Q2 up 1%

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Banana Republic Loss Prevention Team at
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"Stomp Out Shortage"

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

Paul Fisher, Vice President Sales and Marketing for Bass Security, tells us how core values of accountability, continuous improvement and teamwork helped Bass Security grow from a small locksmith business in 1975 to a well-rounded leader in the retail security industry. As North America’s only one-touch solution for loss prevention, new construction and facilities, Bass Security serves over 50 Fortune-500 companies and over 79% of the top retailers in North America.

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LPNN Quick Take #5

In this LPNN Quick Take, Joe and Amber talk with Denny Dansak, Senior Corp. Manager, ORC at The Kroger, Co. Listen as Denny briefly discusses the partnership on the case that won his team the NRF’s Law Enforcement Retail Partnership Award. This 13 month investigation was initiated by Kroger, who partnered with the LA County Sheriff’s Department and the FBI to help solve the case.


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Canadian Push
Sponsored by Vector Security
Target's new Canadian Chief Outlines Plan to Fix Empty Shelves & High Prices  From too many items jammed in its warehouses to pricing that is too high because 1,000 of its products failed to go through the retailer’s price comparison checks, the new boss has a plan. The Canadian snags hit the bottom line, with an operating loss of almost $1-billion (U.S.) in its division here last year and another $211-million in its first quarter of 2014. The new Target leader hired two consultancies to help analyze supply chain systems, inventory order lead times, prices and merchandise offerings. He’s now aiming to win over shoppers by lowering some prices, introducing more goods available in its U.S. stores as well as products for Canada only and streamline bogged-down distribution procedures to get merchandise to stores faster. According to consultants Target has the know-how to fix the problems. But it will have a tougher time recovering from the “bad first impression” it made on Canadian shoppers. “They’re going to have to claw their way back.” (Source theglobeandmail.com)

Department stores have best growth opportunity in Canada - This speaks well for HBC's growth plans  According to a new study from market research firm IbisWorld, the U.S. retail segment best suited for expansion into Canada is department stores, followed by men’s clothing stores. In order, the remainder of the top five U.S. retail categories primed for expansion into Canada are shoe stores, auto parts stores, and lingerie, swim and bridal stores. According to IbisWorld analysis, U.S. industries best suited to expand into Canada are characterized by slow growth and a high level of market share concentration, with few dominant major players generating the majority of industry revenue. In contrast, Canadian industries primed for entry tend to be fragmented and exhibit low levels of market share concentration; these industries are especially appealing if they consistently post revenue growth. (Source chainstoreage.com)

Fire crews rush to Calgary's Market Mall after explosion in diamond store  A pressure cleaning system is being blamed for an explosion at Market Mall on Monday. Emergency crews were called to the northwest building around 7:30 p.m. When they arrived, firefighters found signs of an explosion at the rear of Maggie’s Diamond Boutique. is believed that a malfunctioning pressure cleaning system ruptured and damaged the store. No one was injured. (Source globalnews.ca)

Target to open 3 more Canadian locations this fall  Target will open three more Canadian locations this fall, bringing its total store count to 130. Two locations are in Ontario, and one in Manitoba. (Source retail-insider.com)

Visa won't reimburse pet shop owners after fraud scam

Arrest made in armed robbery at London pharmacy 

Fredericton Police locate accused Shoppers Drug Mart robber 

Armed Robbery at 7-Eleven in Hinton, AB

Lone male steals money from register at St Catherine's Canada Chex Sports store

 

e-commerce
Sponsored by The Zellman Group

Global Ecommerce Now a Mainstream Retail Objective  Global ecommerce is fast becoming a mainstream objective, not just for visionary retailers but across the board as companies look to other shores for new opportunities as the domestic market becomes saturated. This was the message from Kris Green, Chief Strategy Officer of Borderfree, during a fireside chat at Multichannel Merchant’s recent Growing Global conference. “Now especially as many U.S. retailers are seeing 20-30% of their website traffic coming from non-U.S. IP addresses, they feel the need to diversify across global economies while monetizing international traffic,” Green said. “Retailers also see ecommerce as an opportunity to help drive their brick-and-mortar expansion strategies.” (Source multichannelmerchant.com)

JP Morgan Prepping Bitcoin Alternative
JP Morgan Chase is reportedly trying again to patent a system for a Bitcoin alternative, according to columnist Ian Allison in the International Business Times. The patent application, which was originally filed in 2001 and has been repeatedly rejected, describes a way for users to push an electronic funds transfer credit from a special Internet account to a merchant’s account, without the user having to provide his or her own sensitive account information. JP Morgan’s “web cash” invention uses what the application calls an account reporter, which is similar to the publicly available and permanent ledger of Bitcoin transactions, the block chain. JP Morgan sees a new marketplace emerging for “low dollar, high volume, real-time payments with payment surety for both consumers and producers”, the patent application says. (Source pymnts.com)

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

 

ORC News
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Fencing Operations Busted - Two stores raided in Richmond, VA yesterday  Two afternoon raids by Richmond Police, just six blocks apart The Fan on W. Cary Street, shut down the Sunny Food Market and DJ Market and Deli. The search warrants were executed after a long investigation into stolen goods, police said. They are investigating whether the goods sold in the stores were legally obtained. Two workers were handcuffed outside as investigators boxed up apparent evidence inside. More arrests are expected next week. (Source wtvr.com)

Largest lab in area for manufacturing stolen credit cards busted in Memphis after surveillance video at Kroger ID'ed couple  A man and woman were arrested Wednesday after deputies discovered, what they call, one of the largest labs for the manufacture of stolen credit cards in the area. 30-year-old Crystal Thompson and 29-year-old Harry Hudson are charged with Identity Theft and Fraudulent Use of Credit and Debit Cards. While investigating two separate cases of credit and debit card fraud, investigators with the Shelby County Sheriff's Office received video evidence that showed Thompson and Hudson using stolen cards to get cash and buy merchandise. Once inside the house, they found 84 credit and gift cards, numerous blank cards, card skimmers and encoders. Detectives recovered stacks of documents with names and social security numbers for possible victims of identity theft along with $25,000 in merchandise purchased with stolen credit cards, $9,500 in cash and an AK47 assault rifle with 30 round banana clips. (Source localmemphis.com)

Three involved massive identity theft ring sentenced to prison in Washington; Nordstrom hit for $47,000  It was an unusual case in several ways. The investigation turned up 500 potential victims and nearly a half million dollars gained through a sophisticated scheme of stealing identities and racking up bills with ill-gotten credit. Snohomish County prosecutors can't remember handling an identity theft case with so many victims. “Sadly,” a deputy prosecutor wrote in court papers, “the vastness and complexity of this case surpasses the state's ability to investigate it.” Banks and retailers also were hard hit. Nordstrom's alone was out more than $47,000. The investigation tracked victims from Snohomish County to New Jersey. None of the three defendants had been convicted of a felony before their 29th birthday. All had decent work histories until a few years ago. (Source heraldnet.com)

Kohl’s Loss Prevention confronts man who left store with 4 Dyson vacuum cleaners valued at $2600 in Bloomington, IL 

Three people caught selling counterfeit goods at Winchester, CA swap meet to pay $18000 in restitution

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Waffle House shooting in Houston leaves 1 person dead  Police are investigating two different scenes in southeast Houston after two people were shot, one of them fatally. According to Houston police, the shooting happened at around 2:30 p.m. at the Waffle House on the Gulf Freeway and College Street. Police say three men walked in and opened fire on another group of people. HPD confirms one person is dead. Police are investigating what appears to be a body in a white car. Another shooting victim ran to a nearby tire shop for help. (Source click2houston.com)

Female clerk shot during attempted robbery at Foodland in Charleston, WV in critical condition  Officers with the Charleston Police Department said the clerk, who has not been identified, is in critical condition at an area hospital. Detectives say they are looking for two white men, with masks, who fled the scene. Detectives have released a photo of one of the men. (Source wowtv.com)

1 dead at Innovative Optique in Bayside, WI; had been robbed in past  One person is dead after a shooting Thursday afternoon at a strip mall in Bayside, during a robbery attempt. An employee at a nearby Pack and Ship said he heard between four and 12 gunshots sometime between 11:45 a.m. and noon. Innovative Optique has been targeted by thieves at least as recently as September, and prior in 2009. (Source jsonline.com)

Two Injured in Anchorage, AK Sports Authority Shooting  Anchorage police are investigating a shooting late Wednesday near the Dimond Center mall, during which two people were injured. Police responded to reports of the shooting involving two groups in 12 separate vehicles, outside the Sports Authority store at 10:45 p.m. Wednesday. At least one female was injured during the shooting. An officer on scene says multiple persons of interest are in custody and being interviewed in relation to the incident, but as of 1 a.m., no arrests have been made. (Source ktuu.com)

Federal charges filed for phony credit card spree at Bazetta WalMart when police find 100 fake credit cards in vehicle of three suspects

Fresno gang member gets prison for Fulton Mall shooting

Man accused of plotting mass shooting at Utah mall sentenced

Charged in 3 Radio Shack stick-ups, pair found guilty of one in Lombard  

Pohatcong Township, PA Police release photo of Phillipsburg Mall theft suspects 

Tesoro Gas station associate accused of stealing $20000 from employer in Fargo, ND

Bennett Valley Jewelers robbery suspect pleads Not Guilty to robbery, kidnapping and attempted murder charges in Santa Rose, CA

Shoplifter at Kohl's in Wayne, NJ threatened to shoot pepper spray at security guards

Dover, DE woman charged with robbery at Target; Associate suffered minor injuries

Robberies and Burglaries

A1 - N. Charleston, SC - Shooting/ Armed Robbery - one person injured
Circle K - Orange Co, FL - Armed Robbery
Circle K - Lafayette, IN - Armed Robbery - 3 charged
CVS - Fredericksburg, VA - Armed Robbery
CVS - Youngstown, OH - Armed Robbery - suspect indicted
Dairy Queen - Miamisburg, OH - Armed Robbery
Dollar General - Horn Lake, MS - Armed Robbery
Dysart’s - Newburgh, MN - Armed Robbery
Family Dollar - Richmond, IN - Armed Robbery
Kwik-Way- Dartmouth, NH - Robbery - 2nd time in 8 months
Meijer - Louisville, KY - Pharmacy Armed Robbery
Stripes - Hidalgo Co, TX - Armed Robbery
7-Eleven - Hanover, MD - Armed Robbery

 

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7 Proven Ways to Genuinely Connect With Your Employees  Companies today need employees who are enthusiastic and who bring their A-game to work every day. The secret to unlocking source of energy is in your bond with your team. Here are some strategies to connect with your team to benefit the whole organization. (People first)

Teams Can't Innovate If They're Too Comfortable  Innovation is a people-based process. You have to get outside of your comfort zone, and take a risk in trying something different, new, or challenging. Use these tips to hit the ground running and get creative. (Ground rules)

Managers Can Motivate Employees with One Word  We, as humans, are profoundly social; it's in our instincts to prefer working in groups rather than alone. The sense of belonging can boost motivation and inspire you to put forth your best effort. Get your employees motivated to work as a unit with one word! (Together)

5 Simple Ways to Bring Out the Best In Your People  All managers want to bring out the best in their employees, but it can be hard. The most effective management skills won't be found in training classes, it's the basics that are tried and true and don't cost a thing. (Keep it simple)

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Tip of the Day
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Handling the big question – Why did you leave? is the hardest of them all if, in fact, your departure was involuntary. Like Bum Phillips, the old Houston Oilers coach, once said at a luncheon I attended, "There's two types of coaches – those that have been fired and those who are waiting to be fired." And quite frankly he was almost dead-on as over 70% of executives will face involuntary departures from an employer during their career. The best position to take is one of absolute straightforwardness. Be open – be honest – and be reflective right from the beginning. But get it over quick and deal with it right at the beginning of the interview and don't make it a long-winded response. Certainly review it – rehearse it – make sure it answers the question. But get it out of the way and move on in your own mind. Look to the future and leave it behind you.

Just a Thought,
Gus Downing

Gus Downing

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