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August 21, 2014

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Data Breach News - "About" 51 UPS franchise locations out of 4,470 locations - POS hacked in 24 states - Who's Next?  UPS Store said customers who used a credit or debit card at the stores between Jan. 20 and Aug. 11 may have been exposed to a malware identified in the company's systems at the locations. UPS Store has about 4,470 franchised center locations in the United States. The company said the customer information that may have been exposed includes names, postal addresses, email addresses and payment card information. UPS Store said the period of exposure to the malware began after March 26 at most of the locations. The malware was eliminated as of Aug. 11 and customers can shop securely at the company's locations, UPS Store said. The malware intrusion was notified by the U.S. government, the company said, adding it was among many other retailers alerted by the government. Chelsea Lee, a UPS spokeswoman, said the company began investigating its systems for indications of a security breach on July 31, the day The New York Times reported that the Department of Homeland Security and the Secret Service would be issuing a bulletin warning retailers that hackers had been scanning networks for remote access capabilities, then installing so-called malware that was undetectable by antivirus products. UPS hired an information security firm and discovered that the malware was on its in-store cash register systems at 51 of its locations in 24 states, roughly 1 percent of UPS’s 4,470 franchises throughout the United States. Here’s a list supplied by UPS of the 51 stores impacted by the breach. UPS said the affected stores amount to 1% of its franchise locations across the country. (Source reuters.com)
(Source nytimes.com) (Source wsj.com)


Christopher Finazzo, former Executive Vice President and Chief Merchandising Officer of Aéropostale Gets 8 Years For $25M Kickback Scheme  The former Aeropostale Inc. executive convicted of receiving more than $25 million in kickbacks from a clothing supplier in exchange for $350 million worth of business was sentenced Wednesday to eight years in prison by a New York federal judge. Douglas Dey, the owner of South Bay Apparel, Inc., previously a major supplier of Aéropostale, entered into a fraudulent scheme in which Finazzo caused Aéropostale to buy more than $350 million in merchandise from South Bay in exchange for payments from Dey of approximately 50% of South Bay’s profits. Dey allegedly paid Finazzo more than $14 million through C&D Retail Consultants, Inc., a company controlled by Finazzo, and the balance he invested in joint ventures with Finazzo. Finazzo was also ordered by U.S. District Judge Roslynn Mauskopf in Brooklyn, New York, to forfeit more than $25 million and pay the company $13.7 million in restitution. Dey, who in 2012 pleaded guilty to conspiring to violate the Travel Act, acted as an executive producer for several movies including "Blue Valentine," a 2010 drama starring Michelle Williams and Ryan Gosling. Dey, 57, was sentenced Aug. 6 to 3-1/2 years in prison. (Source law360.com) (Source reuters.com)

Dollar General Chairman Makes The Fight Personal for Family Dollar - Attacks Family Dollar CEO in Press Release  Basically saying that Dollar General had been trying to set up talks to buy Family Dollar well before Dollar Tree's offer. But because Family Dollar's CEO's had "his desire to be chief executive officer of the combined companies" Dollar General "cannot help but question whether Dollar General’s failure to embrace such requests by Mr. Levine weighed into Family Dollar’s decision to pursue an agreement with Dollar Tree. We urge the Family Dollar Board of Directors to act in the best interests of the Family Dollar shareholders and take the necessary steps to enter into discussions with us." (Source businesswire.com)

Family Dollar Rejects Dollar General Offer - Antitrust concerns - reaffirms Dollar Tree Offer

Sears Holdings Corp. Struggling Through Turnaround, Indicates More Cost Cuts, Changes Coming  Sears said Thursday that it may close more stores this year in addition to the 130 closures it has already announced. The company has trimmed its store count to 1,870 over the past 12 months, closing 166 locations in the process. (Source wsj.com)

Staples to shut 140 North American stores in 2014 as sales stall

A Night of Relatively Calm Protests in Ferguson

QuikTrip closes second store in Ferguson

Tyco updates retail RFID tools
Tyco Retail Solutions, a global provider of retail performance and security solutions, has announced the release of TrueVUE version 5.1, which it says further enhances its capabilities to accelerate large scale retail RFID deployments faster and more cost effectively across all stores chain-wide. (Source retailcustomerexperience.com)

Counterfeit U.S. Cash Floods Crime Forums
Until very recently one illicit good that has never been seen for sale on the forums was counterfeit U.S. currency. That changed in the past month with the appearance on several top crime boards of a new fraudster who goes by the hacker alias “MrMouse.” This individual sells counterfeit $20s, $50s and $100s, and claims that his funny money will pass most of the tests that merchants use to tell bogus bills from the real thing. (Source krebsonsecurity.com)

Cap Index Offering Free Crime Risk Assessment - Take the survey today  A new survey being conducted by CAP Index will document current strategies in crime risk assessment utilized in the retail industry. Hundreds of respondents have already completed the brief questionnaire that will be used to create a benchmark for retailers to compare themselves against. The anonymous survey (meaning we will never publish the names of participants or their company), which takes only 2 minutes to complete, will be published by CAP Index when it is completed and made available for free to retail industry participants and members.
To participate in the survey, click here.

Quarterly Same Store Sales Results

Dollar Tree Q2 up 4.5% with sales up 9.5%
Kirkland's Q2 up 4.3% with net sales up 6.7%
Popeyes Q2 up 3.6% with total sales up 9.5%
L Brands Q2 up 3% with revenue up 6.3%
Cato Q2 up 3% with sales up 6%
Sears Holdings Corp. Q2 Sears Full-line up 0.1% - Kmart down 1.7% with net loss of $573M
The Bon Ton Q2 down 1.6% with total sales up 1.1%
Stage Stores Q2 down 4.2% with sales down 3.3%
The Buckle Q2 down 0.7% with net sales up 1%
Trans World Entertainment Q2 down 3.4% with total sales down 11%
 

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Keith White & Michael Nelson

Keith White, SVP Loss Prevention for Gap Inc., and Michael Nelson, Regional Dir. of LP for Kohl’s, talk about the history and goals of the International Organization of Black Security Executives (IOBSE). As the leading organization for minority security professionals, IOBSE is driven toward inspiring and encouraging young executives and college students to success in the security industry. Hear Keith talk about some of the IOBSE’s success stories from over the years, while Michael tells us about the group’s annual conference.

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Listen in on Amber Virgillo and Hedgie Bartol’s, LPQ, Business Development Manager, Retail, Axis Communications lighthearted discussion in this LPNN Quick Take. From sports talk to Amber and Joe’s go to karaoke songs, this segment will have you laughing.



 


 

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eBay News
 
Ebay Inc. Announces Continued Evolution and Growth of Asset Protection Team  eBay has recently moved an elite Global Technical Investigations team into the Asset Protection pyramid. With expertise on combating hacking, phishing and other computer-related crimes, this new team will be lead by industry veteran Kevin Black and report to Paul Jones, eBay's Senior Director of Global Asset Protection. They have moved John Mearls from Dublin Ireland to Salt Lake City, where he will lead both the North American Criminal Investigations Team and the European Investigation Team. eBay has also moved retail veteran Dave DiSilva over all asset protection matters involving retailers globally and consolidated its worldwide PROACT Team, which will now report to Stoney Burke. Dave has also taken responsibility of leading the tools and systems team within Asset Protection. Betty Toy remains the leader of the Asia-Pacific Team. "This is the next evolution of our Global Asset Protection Team and positions us to leverage the appropriate experts to protect our buyers, sellers and company against criminal activity," Paul Jones said.

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

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US customers and retailers, most targeted by cyber attacks  Research and Markets has released a new report dubbed ‘US Payments Authentication and Security Market’, stating that recent data point out the fact that US consumers are not safe and an enormous amount of work is to be done in the US to stop data breaches. Findings reveal that Point-of-Sale (POS) is one of the most vulnerable locations and a large number of fraud attacks occur at the POS. The study also shows that the payments security market in the US was estimated at USD 1,327 million for 2013. Retailers appear to be the most affected by payment frauds, starting to invest in building a secure payments system. (Source thepaypers.com)

Digital Wallets for a Digital World - the Players and the Concerns for Consumer Adoption  According to the report, '2014 Digital Wallet Usage Study' - "A surprisingly high number of U.S. consumers recognize digital wallets as an alternative to cash-based transactions, however usage remains at less than one-third, according to a new study from Thrive Analytics, a local search and digital marketing research and customer engagement strategy consulting firm. The 2014 Digital Wallet Usage Study revealed that despite nearly 80 percent of consumers being aware of digital wallets - including major players like PayPal, Google Wallet and Apple Passbook - security concerns remain the main barrier to adoption, followed by lack of usability vs. credit cards/cash (37 percent) and not being top of mind as a form of payment at the time of purchase (32 percent)." (Source cnn.com)

Dick’s hints that e-commerce profits will trump store profits by 2017

"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

UTORCA Announces Leadership Changes

Ben Becker was appointed Senior Advisor to the Board of Directors at Utah Organized Retail Crime Association Inc (UTORCA). Ben retired from the Chairman position after serving from February 2012 to August 2014. As Senior Advisor, he will assist with the leadership transition and join Carson Altice on projects tied to the Future Vision Committee impacting the sustainability of the organization. Ben is also Senior Investigator for Target Corporation.

Carson Altice was appointed Senior Advisor to the Board of Directors at Utah Organized Retail Crime Association Inc (UTORCA). Carson is a Field Loss Prevention Manager for Staples and has been part of the Board of Directors since May of this year. Carson was one of the founding board members of UTORCA and was appointed to his current position in May of 2014. Carson is an active member of the Future Vision Committee.

Detective Mark Falkner was appointed Chairman of the Board of Directors at Utah Organized Retail Crime Association Inc (UTORCA). Mark joined UTORCA as a board member in the Spring of 2013 and was named UTORCA Law Enforcement Partner of the Year in 2013. Mark was instrumental in initiating the ORC detective unit for the Salt Lake City Police Department and is also the Utah State Representative for C.L.E.A.R. Mark is an ORC Detective for the Salt Lake City Police Department and has been a part of the force for over 18 years.

Ricky Casey was appointed Vice Chairman of the Board of Directors at Utah Organized Retail Crime Association Inc (UTORCA). Ricky, a Field Investigator for Shopko, joined UTORCA as a board member with the originating team in February of 2012 and became the UTORCA Recruiter in 2014. Ricky was also the UTORCA Board Member of the Year for 2013.

For more information on UTORCA, including how to join, visit their website here.


67 year old Colorado woman pleads guilty to $30,000 diamond theft  A woman accused in a jewel theft in Denver has pleaded guilty and was sentenced on Wednesday. Huda Wadie Muhaisen, 67, was sentenced to one year probation in an Adams County court for stealing diamonds from a Denver Merchandise Mart jewelry store. She also was ordered to pay $30,611.70 in restitution. Muhaisen had previously paid or returned jewelry worth $37,618.85. Those two payments amount to full restitution in the case. Muhaisen was charged with one count of felony theft of diamonds from Legino Diamonds at the Denver Merchandise Mart on March 11. Court documents claim a security camera inside Legino Diamonds captured hands stealing a black box containing as many as 25 caret to 1 ½ caret diamonds. The same camera recorded a woman believed to be Muhaisen taking some diamond earrings from a case at the same time. (Source cbslocal.com)

10 AR-15s stolen in smash and grab at Houston Gander Mountain  After striking out at an area gun store, crooks pulled off a smash-and-grab style burglary at a nearby big box sporting goods store, stealing a number of AR-15s after crashing through a back door. According to reports, the early morning burglars first backed a truck through the front of Cypress Armory only to have their plans foiled by the fact that the store secures its firearms at night. An hour later at a Gander Mountain location nearby, a group of thieves were more successful in their caper. After breaching a roll-up door, they made away with ten AR-15-style rifles. (Source myfoxhouston.com)

Shoplifter runs after caught stealing 23 purses, returns to store seconds later to steal again in Seattle 

Five New Haven women, juvenile charged with thefts from Clinton, CT Outlets

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Retail Crime News
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Louisiana grocery workers plead guilty in $7 million food aid fraud  Three workers at a Louisiana grocery store pleaded guilty this week to participating in a $7 million scheme to exchange food assistance benefits for cigarettes and cash, federal prosecutors said on Wednesday. The fraud scheme, which involved both Supplemental Nutrition Assistance Program (SNAP) and Women Infant and Children (WIC) benefits, was run out of Dee's, a small neighborhood grocery store in the northern Louisiana city of Monroe, prosecutors said. The scheme, in which the store workers accepted SNAP and WIC benefits in exchange for lesser amounts of cash as well as for cigarettes and other ineligible items, persisted from 2008 until earlier this year, prosecutors said. (Source yahoo.com)

Visa wants to make it even harder for thieves to buy gas with your credit card Now Visa is rolling out software to detect whether it's you or someone pretending to be you filling up on fuel. Roughly 25,000 gas stations have already signed on, with Chevron, an early test case, reporting a 23 percent drop in fraud at the pump. So, how does it work? The software analyzes 500 pieces of data, including location and past transactions, in less than a second. Based on that data, the software creates a risk score on a scale from zero to 99. The higher the score, the higher the risk that the card in use is stolen. Each gas station gets to set a risk threshold, say 50 on that zero-to-99 scale. If your card generates a risk score that exceeds the threshold, a message will flash at the pump for you to see the attendant inside the station. (Source washingtonpost.com)

3 charged with Kidnapping, Robbery and Burglary in Greece, NY Jewelry store hold-up 

Arrest made in Lake Arrowhead, CA Coach store Burglary

Pair suspected in Kingwood Lowe's theft arrested after Humble, TX Police chase

Four accused of passing fake bills at Walmart in Midlands, S.C.

Tampa man faces hate crime charge after C-store shooting

Jewelry store theft suspect also charged in Funeral Home break-in in Rockingham Co, NC

$21K falls off the roof of a Garda Armored truck leaving an Atlantic City casino

Hardware Store Employee Chases Robbery Suspect Through Library in Worthington, OH 

Southfield, MI Police search for 3 Smash and Grab robbers who hit Swiss Jewelers

Phones stolen from Chicago’s Magnificent Mile Best Buy; smash and grab

Port St. Lucie, FL Jewelry store owner finds hole in the wall  

Robberies and Burglaries

CVS - Homewood, AL - Robbery - Police seeking 2 suspects
Express Plaza - Oklahoma City, Ok - Armed Robbery
Gamers - Omaha, NB - Armed Robbery
Island Drug - Gulf Shores, AL - Armed Robbery - 2 suspects arrested
Parklane Pharmacy - Wichita, KS - Armed Robbery
Rite Aid - Manchester, ME - Armed Robbery - suspect identified
Walgreens - Roanoke, VA - Armed Robbery - suspect arrested
7-Eleven - Jamestown, NY - Armed Robbery
7-Eleven - West Valley City, UT - Armed Robbery - video released

 

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David Dominguez was named Loss Prevention Coordinator for 24 Hour Fitness.
Barry Hazelwood was named Loss Prevention Detective for Marshalls.
Dean Hendricks was named Corporate Investigator for TJX Companies.
Sean Hunt was named Regional Loss Prevention Manager for GameStop.
Billy Robinson, CFI was named Regional Manager Loss Prevention, Audit and Firearms Compliance Southern Territory for Dunham's Sports.

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Why You Shouldn't Try to Win Over a Candidate During the Job Interview  The interview is your chance to perceive how worthy the candidate is of the position, and shouldn't be taken up by trying to sell your company. Try following this study's advice by separating the two. (Distracting)

Time to Grow Your Team? Here's Why You Should Hire Slowly  Maybe taking the speedy approach isn't the most effective. The hiring process is your chance to evaluate the candidate's skills and decide whether or not they are the right fit for the job. Don't make the mistake of hiring wrong, heed some of this advice. (Get to know them)

3 Core Leadership  Competencies to Teach Your High-Potentials  As your business expands, high-potential employees will need to be prepared to become leaders. Once these individuals are identified, the training and skill-building can commence. Here are some core areas to focus on. (Risk taking)

How to Recruit Great Talent, Rock It, Retain It  A company's values are important to keep in mind when hiring new individuals for your organization. The job interview is the potential employee's chance to show you their best face, so it's the hiring manager or recruiter's job to make sure it's an accurate and reliable face and one that will align with those values. (Ask these questions)

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Tip of the Day
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Being in a slump is an absolutely scary place where your brain does more damage than your actions or lack thereof. More mental than anything else, a slump happens to all of us, and getting out of it can look like the longest darkest tunnel you've ever experienced. But remember there's always light at the end of every tunnel and getting focused on that light is the key. And turning it always begins with getting back to basics. Forcing yourself to find that focus and using the basics to get out of the slump is the only way out. Lean on your basics and trust you know them well enough that the old performance will start showing itself, because once they do, you'll find yourself having fun and out of that slump.

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