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August 18, 2014

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News Brief
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Missouri Governor to Deploy National Guard to Ferguson as Riots and Looting Continue  Gov. Jay Nixon announced early Monday that he would deploy the Missouri National Guard to the St. Louis suburb of Ferguson, ratcheting up efforts to quell unrest that has paralyzed the city since an unarmed black teenager was killed by a white police officer. Mr. Nixon said in a statement that he chose to activate the National Guard because of “deliberate, coordinated and intensifying violent acts.” The governor’s decision came after the worst night of violence since the unrest began. On Sunday night, hours before the start of a second day of a mandatory curfew that the governor had ordered, police officers came under assault from gunfire and firebombs and responded with their largest show of force so far. (Source nytimes.com)

Timeline of events following fatal shooting of Michael Brown in Ferguson

Autopsy shows 18-year-old was shot at least 6 times

What Happens When Police Officers Wear Body Cameras - Use of force by police declined 60% in one city - Is Retail LP next?  In Rialto, Calif., an entire police force is wearing so-called body-mounted cameras, no bigger than pagers, that record everything that transpires between officers and citizens. In the first year after the cameras' introduction, the use of force by officers declined 60%, and citizen complaints against police fell 88%. What happens when police wear cameras isn't simply that tamper-proof recording devices provide an objective record of an encounter - though some of the reduction in complaints is apparently because of citizens declining to contest video evidence of their behavior - but a modification of the psychology of everyone involved. (Source wsj.com)

Why So Many Card Breaches at Retailers? A Q&A with a security investigator  Last Friday, we learned the latest retail chain to fall victim to a credit/debit card breach was AB Acquisition, which operates Albertsons stores under a number of brands, including ACME Markets, Jewel-Osco, Shaw’s and Star Markets. Security blogger Brian Krebs sheds some light on the issue in this Q&A on the data breach topic. Why do we keep hearing about breaches involving bricks-and-mortar stores? Credit and debit cards stolen from bricks-and-mortar stores (called “dumps”) usually sell for at least ten times the price of cards stolen from online merchants (referred to in the underground as “CVVs” or just “credit cards”). As a result, dumps are highly prized by today’s cyber crooks, and there are dozens of underground “card shops” online that will happily buy the cards from hackers and resell them on the open market. (Source krebsonsecurity.com)

The Benefits of Data Collaboration for Retailers As retailers and suppliers continue to share data in increasing numbers, members on both sides of the fence are still hammering out the business benefits. At the inaugural Retail & Consumer Goods Analytics Summit, Tony Bender, VP and CIO, Energizer Holdings Inc., will host a panel of industry thought leaders who will highlight the benefits of data collaborations. Business partners who have engaged in collaborative efforts around shared data, including POS, syndicated, loyalty, and transactional data, have found mutual benefit in several areas, including supply chain, sales, and demand generation and the members of the panel will share their experiences from the field. (Source edgl.com)

Employee security badges are vulnerable and easy to clone  Hackers have shown just how trivial it still is to read, modify and clone most HID cards -- the rectangular white plastic “smart” cards that organizations worldwide distribute to employees for security badges. Nearly four years ago, researchers at a security conference in Berlin showed a serious vulnerability in smart cards made by Austin, Texas-based HID Global, by far the largest manufacturer of these devices. The researchers showed that the card reader device that HID sells to validate the data stored on its then-new line of iClass proximity cards includes the master encryption key needed to read data on those cards. More importantly, the researchers proved that anyone with physical access to one of these readers could extract the encryption key and use it to read, clone, and modify data stored on any HID cards made to work with those readers. (Source krebsonsecurity.com)

Preventing Vendor and Procurement Collusion
I recently read an article related to a supplier working in collusion with a person within a retail company who was reported to be the President of a Grocery Store Chain to create false deals and split the proceeds of about $1.9 million. These type of situations happen every day in the business world. I have conducted and supervised such investigations where collusion was taking place between a vendor and someone on the inside of a company. In each and every case, the fraud was allowed to occur because the company had created the atmosphere that was conducive to such activity. They had no check and balance system in place and the offender had been given too much control or autonomy over such situations. Every company needs the proper controls in place to guard against such situations. (Source theshipmangroupllc.com)

Dollar General Outbids Dollar Tree for Family Dollar  Monday morning Dollar General announced a bid to acquire competitor Family Dollar Stores for $9.7 billion, or $78.50 per share. The all-cash offer is $4 higher per share than the $8.5 billion merger deal with Dollar Tree that Family Dollar agreed to last month. (Source forbes.com)

Amazon moving distribution warehouse to Reno

FBI uses facial recognition technology to catch fugitive of 14 years

German department-store chain purchased for 1 Euro

Last week's most popular news article --

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)

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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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e-commerce
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More Highs and Lows for Bitcoin
In first the week following the reinstatement of its iOS app in the App Store last month by Apple, Blockchain said the wallet application was downloaded 41,000 times. "Not only is this milestone indicative of the public's interest and belief in the importance of cryptocurrency, it's also a testament to the quality, stability and usability that Blockchain's wallet is able to provide to consumers at large," says Blockchain CEO Nicolas Cary. "Now, with over two million users on our wallet, it's reaching mass relevance." While the public may be interested, however, government agencies still are leery of decentralized cryptocurrencies. The CFPB warned U.S. consumers about volatile exchange rates, lack of FDIC insurance protection on deposits and the potential security threat posed by hackers, though the agency admitted Bitcoin has "potential benefits." (Source cardnotpresent.com)

EBay Payments Unit in Talks to Accept Bitcoin
EBay Inc. has been quietly working to integrate acceptance of the virtual currency into its Braintree payments subsidiary, part of its PayPal unit, according to people familiar with the matter. Those people said PayPal officials have meet in recent weeks with several companies that facilitate bitcoin transactions, including Coinbase Inc. PayPal has yet to reach any agreements, the people said. The timing of when Braintree would accept bitcoin is dependent in part on such a deal. EBay and PayPal wouldn't initially accept bitcoin, the people familiar with the matter said, but that could change over time. EBay Chief Executive John Donahoe told The Wall Street Journal last year that he was considering ways to use bitcoin. (Source wsj.com)

Kohl’s maps out its e-commerce plans for 2014 - improvements in mobile app, push for e-commerce sales growth, and buy online, pick up in-store program

Wal-Mart online sales up 24% in fiscal second quarter; says e-commerce business will grow 25% by January 31, 2015

"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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Four Arrested After $200k Worth of Legos Found in Theft Investigation in Phoenix  Police have arrested four people accused of running a scheme to steal expensive Lego sets from Toys R Us stores around the Valley. Garry Fairbee, 35, Tarah Dailey, 33, Melissa Dailey, 34 and Troy Koehler, 40 have been arrested. Melissa and Tarah are cousins. They're each facing one or more of these charges: Organized retail theft, trafficking in stolen property, fraudulent schemes, and illegal control of an enterprise. Police were working on the case for more than four months. Detectives used surveillance video to identify Fairbee and Tarah Dailey after they allegedly stole high-dollar Lego play sets, worth $99.99 or more, from various stores and selling them for a profit. They are accused of removing the theft detection devices from the Lego sets, causing damage to the packaging. In most incidents, they put the Lego sets in either large gift bags and then in shopping carts, or inside shopping carts and then covered with the gift bags. The suspects would then flee the business without setting off the security alarm. (Source azfamily.com)


 

Felons found with Drugs, Guns during shoplifting investigation at Kohl’s in Greenville, SC  Greenville County deputies said a shoplifting investigation at Kohl's led to three convicted felons facing charges for more serious crimes. Around 9:30 a.m. on Aug. 7, deputies responded to the store on Woodruff Road and spoke with loss prevention who said two women entered the store while a man parked close to the entrance, deputies said. Deputies said loss prevention employees observed Ashley Sims and Danielle Kelly concealing clothing and walking out the front door. They said the man, who was identified as Christopher Asbell, also went inside the store a short time later. Police said the vehicles they were driving was reported stolen. (Source foxcarolina.com)

Two Arrested on Felony charges; hitting 3 Armstrong / Allegheny, Co PA Walmarts  Alyssa Nicole Depanicis and Larry Allan Davis II, are accused of putting merchandise in a large plastic bin and leaving the East Franklin Wal-Mart without paying early in the morning Thursday. The pair then headed to the Wal-Mart in Harrison, Allegheny County, where they allegedly tried the same scheme but left the bin behind when they left the store, police said. Police caught the two at the Frazer Wal-Mart in Allegheny County as they again tried to hide about $2,000 worth of items in a large bin. (Source triblive.com)

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Retail Crime News
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Tennessee McDonald's Manager Steals U.S. Marshal's Credit Card; 84 more cards found in her home  A United States Marshal accidentally left his credit card at the drive-thru of a McDonald’s, which could happen to anybody. He figured out what had happened and drove back to retrieve his card the very next day, but by that time nearly $600 of charges had started showing up on his account. It did not take police very long to figure out what had happened. When they looked at surveillance footage of the card being used at local stores, they saw Crystal Thompson, the manager of the McDonald’s in question, using it as though it were her own. Further investigation revealed that Thompson was allegedly guilty of a lot more than just picking up one forgotten credit card. Police found 84 stolen credit cards at her house. (Source thedailymeal.com)

2 Arrested, 6 injured in crash during Police chase of Dollar General Armed Robbers in Savannah, GA  SCMPD says two males were arrested and charged and they along with six others were transported to a hospital for injuries after an SUV being pursued for an armed robbery crashed into other vehicles Friday night. Six occupants of other vehicles in the collision were transported by Southside EMS to Memorial for treatment of injuries received. (Source wsav.com)

Smash and grab robbery: Tourneau in White Plains, NY a target for thieves  In a brazen late-morning robbery, three men entered the Tourneau store at The Westchester mall on Sunday, smashing open glass display cases with hammers and grabbing luxury timepieces before fleeing from an armed security guard. Police said panicked shoppers ducked for cover after seeing the armed guard, who was wearing plain clothes, as he struggled with one of the robbers and fell through a glass window into the mall. The store's security guard pulled his handgun and began to struggle with one of the robbers as the trio ran out of the store. All three managed to escape. It was unclear how much was stolen. (Source 7online.com)

Marshall’s in Milltown DE burglarized, Delaware State Police investigating  Delaware State Police are investigating a reported burglary in a Milltown Marshalls department store, Sgt. Paul G. Shavack said. It happened overnight Saturday at 4607 Kirkwood Highway and was reported at 7 a.m. by employees. (Source delawareonline.com)

Arsonist causes fire in Big Lots restroom, store evacuated in Apple Valley, CA  

Woman charged with police assault, retail theft at Oxford Valley Mall in Middletown, PA 

Safeway Pharmacy robbed at gunpoint in Butte, MT 

Wood River, IL Police searching for AT&T robbers 

Kay Jewelers in the Tanger Outlets, Mebane, NC hit by one man for over $15,000 in merchandise in a Grab and Run

Three person Distraction Theft team hits Zales in Atlanta, GA.; 1 CT. solitaire, valued at $10,000.00

Diamond Switch at Kay Jewelers in the Midway Mall, Elyria, OH, item valued at $1299

Robberies and Burglaries

Circle K - Phoenix, AZ - Armed Robbery
Circle K - Deltona, FL - Armed Robbery - suspect arrested for 4 robberies in 10 days
Cumberland Farms - S. Yarmouth, MA - Robbery
Dollar General - Spotsylvania Co, VA - Armed Robbery - suspect arrested
Dollar General - Millerstown, PA - Theft - suspect charged
Family Dollar - Bristol, TN - Armed Robbery
Family Dollar - Valdosta, GA - Armed Robbery
Fiesta Mart - Tulsa, OK - Armed Robbery
Firehouse Subs - Ithaca, NY - Burglary - tied to several in the area
Kangaroo - Sumter, SC - Armed Robbery
Stripes - McAllen, TX - Armed Robbery - suspect arrested
United Dairy - Dayton, OH - Burglary
Vim and Vigor Health Food - Shelby Twp, MI - Armed Robbery

 

Vendor Spotlight
 

Zellman Fraudnet

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3 Things Failing Miserably Teaches You About Leadership  You don't have to always fail yourself to learn what failure can teach you. Sometimes all you have to do is learn from other's failures to figure out what works best and what doesn't. Take some lessons from this entrepreneur's book. (Lead yourself)

To Be a Better Leader, Become a Better Listener  Your job, as a leader, is to let your employees do their best work by giving them the support they need. Trust that they know what they are doing and more importantly, listen to them. Here are some ways to improve your listening skills. (Fill in the blanks)

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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)

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

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Tip of the Day
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Interviewing executives for a position is a delicate and serious interaction. How one conducts the interview and treats the executive is extremely important and sends messages to the industry about how they were treated, how they were managed, and how they were dealt with during and after the interview. It sets a tone for future recruiting efforts and for how the executives perceive not just the organization but the interviewer, themselves. For most, an interview is their opportunity to put their best foot forward and send the message I want to join your team. This is an interaction that most don't ever forget and carry with them the rest of their careers. So it's important to recognize it and treat it as such for each individual.

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