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September 18, 2013

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News Brief
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Shawn Huskey was promoted to Senior Manager of Loss Prevention and Safety for Corporate, Campus and Retail Stores for HSN.  Shawn has years of experience with industry leading corporations in upper-level management throughout the fields of safety, security, loss prevention, operations, law enforcement and military. He joined the Home Shopping Network in 2005 in the role of Safety and Loss Prevention Manager. Shawn has also held LP positions at JC Penny's, Home Depot and Colonial Freight Systems Inc. He also served in the U.S. military for 8 years, earning the title of Petty Officer First Class. Congratulations, Shawn!

Retailer REI Ends Era of Many Happy Returns
The basement at the flagship store of REI Inc., the privately held sporting goods chain based in Seattle, is like an evidence locker for how the outdoorsy retailer earned an endearing nickname: Return Everything Inc. For as long as anybody can remember, REI, which was founded in 1938 and has 130 stores in 32 states, has offered a no-questions-asked return policy, even giving customers cash in exchange for heavily used merchandise. In June, though, the chain announced it would henceforth take back items only within a year of purchase. While customers still can return a product for any reason during that year—and items with defects can be returned for the life of the product—the new policy aims to keep customers from using purchases for years and then exchanging it like a dress you bought on Friday just to wear Saturday night and then return. The crackdown is a blow to those hikers, kayakers and climbers who secretly—or not so secretly—used the policy as an ATM. Some shoppers have bragged on message boards about using REI money for rent and college tuition. And those people are the problem, as REI says the policy change was the result of a large number of returns from a "small group of members." That cluster of REI's clientele is now facing the ire of the majority. (Source

Integrators eye iris recognition once more
Iris recognition technology is highly reliable and it’s been available for years. But until recently, it’s also been high priced and a technology that some people are uncomfortable interacting with. As a result, iris recognition’s use in recent years has been limited to high-security locations such as hospital laboratories and data centers or niche applications where other biometrics, such as fingerprint, won’t work. However, as prices plunge and the technology becomes less invasive, integrators are taking a second look at iris recognition. Iris recognition is well on its way to mainstream security applications. It is simply becoming a standard similar to fingerprints now that the technology has evolved to a point that it is easy-to-use, non-intrusive, and fast. There was an initial pushback from people who didn’t want to put their eye up to [the reader]. It was a like a mask and people didn’t like it. Iris reader manufacturers are well aware of user objections and are trumpeting the fact that newer devices can read irises from ten inches or much further away and some can read irises as people walk through a doorway or turnstile. (Source

Sensitive Information Management Solution Brings Next Generation Data Leak Prevention to Enterprises  Provider of sensitive data management solutions, announced today a new release of its flagship offering, Sensitive Data Manager, for finding and protecting confidential information stored anywhere within a corporate network or cloud environment. A comprehensive and cost-effective solution suite for managing risk and compliance, Sensitive Data Manager 7.0 helps organizations discover, classify and remediate sensitive information. Enterprises can solve data loss problems at the source to prevent breaches, comply with a host of regulatory compliance requirements and protect their reputation. (Source

New York & Company Chooses PeopleAnswers to Help Select Store Employees  New York & Company will use the intuitive, cloud-based PeopleAnswers software on its desktop and mobile platforms to evaluate, select and hire for all store positions. Starting initially with 200 store locations, the rollout will include district leaders, store leaders, assistant managers and sales associates. The company plans to ultimately expand to all stores upon proven success of this 200-store launch. (Source

Modified wireless "VeriFone VX670 POS device" for portable business transactions circulating in underground markets for skimmers to buy and use in your store  VeriFone's wireless point-of-sale (POS) machine has been completing portable business transactions for nearly 10 years, but now at least one cyber crook is selling a modified version of the device that will capture card numbers and send the data to scammers via cable or wireless connection. It is easy to use and pretty seamless, too. Andrey Komarov, CTO and head of international projects with Group-IB, told on Tuesday that one reason the modified device is attractive to skimmers is that it can send data through general packet radio service (GPRS), Bluetooth, or Wi-Fi, so all a user has to do is sit nearby and collect card data as it is processed. (Source

Google Wallet rolls out new version for all devices that run on Android 2.3 or later - whether they're NFC friendly or not  The app also will facilitate several new functions, including free money transfers via email for users who link their bank account with the app or choose to withdraw from their Google Wallet balance. And Google Wallet users now can add loyalty cards by scanning the bar code or entering the card number. The new app, available free in the Google Play store. (Source

Nine Maryland Retailers Arrested for Food Stamp Fraud  The indictments allege that the defendants exchanged EBT benefits for cash, a practice more commonly known as "food stamp trafficking." In some cases stores allegedly split the proceeds with food stamp recipients. Second Obama Express and D&M Deli and Grocery, K&S Food Market, New York Deli and Grocery, Long Hing Grocery Store, Simbo Food Mart, C&C Market, and Cunningham's Amoco. (Source

Quarterly Same Store Sales Results

Cracker Barrel Q4 restaurant up 2.6% - retail up 1.1% with revenue up 3.9%
Toys R Us Q2 Domestic down 3.5% with net sales down 6.9% and a net loss of $113m

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Retail Crime News
2 more smash-and-grabs at GTA stores - $100K in merchandise stolen from Yorkville Prada store  Toronto is getting hammered with smash and grabs. There's been three in the last few days. Toronto-area police have responded to three late-night smash-and-grab thefts at retail stores over past 24 hours, with vehicles used as a battering ram in two of the thefts. At about 1:15 a.m. Wednesday, Peel Police responded to a smash-and-grab at Riders Choice motorcycle shop, located at the corner of Dixie Road and the Queensway. About 90 minutes later, Toronto police responded to a similar theft attempt at the Prada store on Bloor Street in Yorkville. There thieves broke the front glass door and made off with merchandise, including a number of handbags worth $2,000 each. Store staff estimate the total value of stolen merchandise to be about $100,000. (Source (Source

Mother assaults security officer to free shoplifting son and friend at Hickory Point Mall in Forsyth, ILL.  A 36-year-old mother who was with her 16-year-old son and an older teen male when they were apprehended for shoplifting at the Hickory Point mall in Forsyth, punched a Von Maur security officer and shoved him down to try to give them a chance to escape. The security officer said he “was getting ready to walk” the two males to a security office for stealing from the store when the mother of one of the males punched him in the arm and shoved him to the ground. Foster, who has two unrelated felony cases pending, for possession of cannabis and driving under the influence while revoked/suspended, was booked into the Macon County Jail on a preliminary charge of aggravated battery. She is being held without bond, pending her arraignment in circuit court within a week. (Source

Jared Jewelers in Oviedo, Florida smashed and grabbed for $150,000 in watches  Seminole deputies are trying to identify three masked men who stole $150,000 in jewelry from Jared jewelers near Oviedo Tuesday. The men smashed two windows at the rear of the store at 8275 Red Bug Lake Road about 3:30 a.m., then grabbed the goods — mostly TAG Heuer-brand watches, investigators said. Security video shows the burglars, wearing pants, long-sleeve shirts, gloves and hats, smashing display cases with sledgehammers, deputies said. They apparently tried but failed to get in by drilling holes in an exterior wall before smashing the windows. (Source

Arlington County Advanced Auto store robbed at gunpoint  Police are investigating an armed robbery at Advance Auto Parts on the 5400 block of Lee Highway. According to police, two subjects walked into the store shortly before it closed on Sunday night, around 8:40 p.m. A suspect with a gun forced one of the two store employees to the floor. The other suspect remained with that employee while the armed suspect led a second employee to the back to get money from the safe. After taking money from the safe, police say the suspects grabbed money from cash registers in the front of the store. They demanded both employees to lie on the floor, then fled the scene. Neither store employee was injured. (Source

Surveillance footage shows armed man robbing Pittsburgh Sprint store  Pittsburgh police are asking for help from the public in identifying the suspect who held up a Cricket Wireless Store. The robbery happened at the store on Penn Avenue just after 5:30 p.m. on Sept. 6. According to police, the suspect walked into the store and pulled out a plastic shopping bag from one side of his waistband and a black pistol from the other side. Police say he ordered one employee to step back while another put money from the register into the bag. He then fled the store, getting away with an undisclosed amount of money. (Source

Jacksonville Sheriff’s Department is seeking three suspects in a Dollar General armed robbery  The Jacksonville Sheriff's Office is seeking the public's help identifying and locating two armed robbery suspects. JSO responded to an armed robbery at the Dollar General Store in the 9100 block of 103 Street Sunday. Two suspects allegedly entered the store and demanded everyone get on the floor face down. A witness stated that the suspects also demanded money from the registers and the safe before pointing a handgun to her face. Another witness told police that both suspects were carrying guns. The suspects were seen leaving the store and fleeing westbound on 103rd Street. Investigators believe there may be a gray van with a black female driver involved in the robbery. (Source

Two Wireless Touch associates are locked in the bathroom following an armed robbery in Cincinnati  Reading police are searching for two people reportedly involved in a Tuesday morning cell phone store robbery. Police were notified of a panic alarm at the Wireless Touch on Reading Road at 11:30 a.m. Tuesday and responded to the scene. Police then learned that a robbery may have taken place at the business. Police said two individuals were involved in the robbery, one of which was armed with a silver handgun, according to emergency communication reports. The robbers reportedly locked two people in a bathroom at the business in connection with the robbery. Information was not immediately available on the amount of property or cash that may have been taken from the business. (Source

Jeweler in France shoots and kills a teenage robbery suspect; charged with voluntary homicide  Protests have erupted in France after a decision to charge a jeweler with voluntary homicide because he shot and killed an escaping robber. Stephan Turk, 67, has been held under house arrest after shooting Anthony Asli, 19, last week in the French Riviera city of Nice. An accomplice escaped on a motorbike as Asli's body lay in the street outside the shop. In a country where gun violence is rare but armed robbery is increasingly common, the shooting - and the formal charges of voluntary homicide - have placed the government in a difficult position. 'Even when faced with the unbearable, we have to let justice prevail,' Interior Minister Manuel Valls said today in Nice, where he was sent by the president a day after a protest by hundreds of Turk's supporters. Jewelers in southern France say they're being targeted like never before and lack the resources to protect themselves. Asli's family lawyer, said: 'The family's not condoning the robbery. They're not condoning it and they're not excusing it. It was Anthony's fault. But did he deserve to die in these conditions?' 'We don't have, in France, the notion of taking justice into your own hands. The family is revolted by that.' (Source

Alert store employee catches jewelry store robbery suspect  A 32-year-old Newport Beach man was arrested for allegedly stealing a high-end watch from a Westminster jewelry store. Westminster police received a report of shots fired at the Asian Garden Mall Friday afternoon. Investigators say a suspect entered the Tick Tock jewelers inside the mall and stole a high-end wristwatch and fled the store on foot. The store owner chased the suspect to a nearby parking lot, where a struggle ensued and several gunshots were fired by the store owner. The suspect fled the area in a dark colored vehicle. The store owner suffered minor injuries in the confrontation. Monday, Westminster detectives received a tip about a person trying to sell the stolen watch at a store in Tustin. A store employee had read about the Westminster robbery in the newspaper and alerted authorities. The suspect was stalled at the location until Tustin and Westminster police arrived on scene. (Source

Dollar General in Erie, Pennsylvania robbed by 2 armed gunman  Erie police are searching for two men who robbed an eastside store at gunpoint on Monday night. Police said two male suspects used a silver handgun to rob employees of the Dollar General of $277. No one was reported injured in the robbery, which happened shortly before 9 p.m. Monday. (Source

Suspect arrested in the armed robbery of a bank inside a crowded Kroger store in Virginia  A 49-year-old Charlottesville man faces bank robbery charges after a Monday evening robbery of a SunTrust Bank branch in the Rio Hill Kroger store. Albemarle County police arrested John Adolph Reich yesterday, about four hours after the robbery occurred. The robbery occurred shortly before 5 p.m. Monday while cashiers rang up customers in packed checkout lines and shoppers clogged the aisles of the Kroger in the Rio Hill shopping center. Police said that a man described as white and of average build and height slipped into the store and robbed the bank, leaving the store unnoticed by dozens of shoppers, escaping with an undisclosed amount of cash. Police made the arrest shortly after 9 p.m. without incident. County police arrived at the store within 10 minutes, but the man already had run toward nearby woods. Lulu, the county police bloodhound, joined officers in searching several area locations often frequented by homeless people. (Source

Tennessee outlines reasons for death penalty for pharmacy shooter  On Tuesday, prosecutors outlined their reasons for seeking the death penalty against Jason Bryan Holt, the man charged with killing two people and injuring two others in a Grainger County pharmacy. They first announced their intentions to seek the death penalty against Holt in June. A few weeks earlier, investigators say Holt, 37, entered the Down Home Pharmacy and demanded prescription drugs, then gunned down the store's owner and pharmacist, Stephen Lovell, and a customer, Richard Alexander Sommerville, 72. Two pharmacy employees were also shot, but they recovered. On Tuesday, District Attorney General James B. Dunn filed the notice of intent to seek the death penalty at a hearing for Holt. It lists the following aggravating circumstances: two other people were at risk of death when the murder was committed; the murder was committed to avoid or prevent prosecution; the murder was committed while the defendant was committing another crime (robbery); and the victim of the murder was seventy years or older. (Source

Kroger Loss Prevention apprehends a shoplifter who was also wanted on a $4000 burglary in Rome, Georgia  A man arrested Monday after he allegedly stole nearly $400 worth of items from a grocery store also had warrants for taking thousands of dollars from another business, according to Floyd County Jail reports. Antonio Lee McConnell, 29, was taken into custody Monday after he was accused of leaving Kroger with items valued at approximately $397.95 without paying for them. McConnell had warrants for his arrest related to an incident where he and a woman entered Dunkin Donuts, in the early morning hours of April 11 and stole approximately $4,000. He was charged with felony counts of second-degree burglary and theft by taking along with misdemeanor theft by shoplifting. He remained in jail Monday night on a parole violation. (Source

Fraud charges filed by Joliet police against 15 in financial scam  The Joliet Police Department recently announced the results of an investigation that began in the summer of 2011 and resulted in criminal charges against fifteen subjects for their involvement in an alleged Financial Crimes Enterprise led by Otis Blackmon of the 200 block of Park Drive in Joliet, Il. During the investigation officers found over $100,000 in fraudulent transactions had occurred at numerous financial institutions in the area. Officers identified a number of co-conspirators and as a result Felony complaint warrants were obtained for 15 people for 265 felony counts of financial crimes. Officers also executed multiple search warrants and recovered numerous weapons including an AK-47 assault rifle, a MAC-10 and multiple handguns and shotguns. (Source

Lexington Police seeking information on a surge in area smash and grabs  Since August, the Lexington Police Department has seen an increase of "smash 'n grab" burglaries. There have been more than six burglaries in which suspects forced their way into businesses and pried open safes and ATM's. "Basically, they're going through the back door, forcing their way in and taking cash registers, safes, things of that nature," said Detective Patrick McMullin, with the Lexington Police Department. Investigators were able to retrieve surveillance video in some of these burglaries. (Source


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ORC News
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TJ Maxx employee + husband - ORC duo - hit TJ's for nearly $325,000  Radnor police arrested and charged a husband and wife team who police say stole nearly $325,000 worth of merchandise form local clothing retail store over the past year. Police identified the suspects as Gretta Chapman, 47, and Maurice Chapman, 50, both of North 57th Street in Philadelphia in connection with the thefts. According to police, Gretta Chapman has been an employee at the TJ Maxx store on East Lancaster Avenue in Wayne, PA, and over the past year and has been removing merchandise from the store. Police said after hiding the merchandise on her she took the items to her car. Police say her husband, Maurice Chapman, would then go to her car and remove the items. Store security employees told police that they had recently become suspicious of her. After being confronted about the thefts, she admitted to the thefts to store officials. Store security employees told police they then reviewed the security footage and that confirmed the thefts. (Source

UPDATE - 6 College football players' retail theft ring hitting Dick's Sporting Goods impacts their college - Castleton State College - President speaks out  The Quarterback appears to be the ring leader and the six players are suspended from the team. The State police are investigating the theft ring in Rutland, Vt. Vt. State Police are still not releasing the names of the additional four players involved in the investigation. But Busharis and Boyle are due in court next month. The investigation started after Castleton's starting quarterback, George Busharis, was caught leaving Dick's with $300 worth of merchandise and a receipt for only $3. All-American wide receiver and CSC star player Brandon Boyle works at the store. Police say security cameras show him helping other players steal from the store. (Source

Update - ORC female suspect busted in Northeast for $100,000 part of shoplifting ring  The female "serial shoplifter we've been reporting on and who was arraigned yesterday is believed to be a part of the larger shoplifting ring. That was hitting other area malls including Mall at Rockingham Park in Salem, N.H., Burlington Mall, Pheasant Lane Mall in Nashua, N.H., Newington Mall in Newington, N.H., Chestnut Hill Mall, Mall of New Hampshire in Manchester, Solomon Pond Mall in Marlborough and Holyoke Mall. Investigators suspect Santos is part of a ring of professional shoplifters. (Source

ORC couple in Saginaw, MI., headed for prison after hitting Meijer's, Kohl's, Toys R Us, and Hobby Lobby stores  The male suspect could be facing life in prison with this being his fourth-or-subsequent-time habitual offender. He pleaded guilty in court this week to four counts of organized retail crime an a single count of conspiring to commit a crime. His girlfriend-accomplice was charged with the same counts and will be in court Oct 1st. the couple usually took high-end electronics or tools and other merchandise that could be pawned. (Source

Does stealing 61 tubes of Lip Stick constitute ORC? We'd say so.  Bolingbrook Police were called on Monday night to the local Walmart on 200 S. Bolingbrook Drive in regards to a retail theft. Carlos Jiminez is said to have been caught trying to steal $400 or 61 tubes worth of lip stick. Upon investigating Police discovered that Jiminez also had and outstanding warrant of over $25,000 and was arrested and taken to the Will County ADF. (Source

Escaping ORC male duo runs down and injures pregnant women in Wal-Mart refund fraud attempt in Spanaway, Wash.  The Wal-Mart security team spotted the suspects early-on, and tracked them by surveillance cameras. Detectives say the men had a store receipt, and were wondering the aisles with an empty shopping bag, looking for the listed merchandise so they could then return it for cash. Security officers figured it out, and tried to direct the men to an office away from customers, but the suspects objected. The standoff quickly turned physical and the suspects took off, running down customers - including a pregnant woman - on their way out. These guys are more dangerous in that they are trying to run a scam, and when they got caught, they were desperate enough to run over people, hurt people, including a pregnant lady, in order to get away," Detective Ed Troyer says. A getaway driver was waiting for the suspects in the parking lot, and raced off before patrol units arrived. Detectives say these men were organized, and have likely done this before. (Source

ORC gang hitting Wal-Mart stores in Hilton Head Island over last four days for electronics  Three thefts of electronics from the Walmart on Hilton Head Island over the past four days are related, according to Beaufort County Sheriff's Office reports. More than $3,000 worth of computers and televisions have been stolen since Saturday from the store on Pembroke Drive. The first theft occurred around 1 p.m. Saturday when two men and a woman placed two laptop computers into shopping carts and walked out of the store without paying, a report said. The next theft happened about noon Monday, when three men removed security devices from two HP computers and walked out the front door. At 10:30 p.m. Monday, three men stole two flat-screen TVs. This time, they left the store through a fire exit, Sgt. Robin McIntosh said. (Source

A Wyoming County Attorney focused on Organized Retail Crime; suspects could face felony burglary charges  Fremont County Attorney Michael Bennett stated that Organized shoplifters who attempt to take hundreds-worth of merchandise could face burglary charges in Lander from now on. In response to the organized shoplifting, Bennett and the Lander Police Department, as well as others, have worked together to devise a new prosecution strategy to deter would-be shoplifters. “We need some sort of a tool to tell these shoplifters we mean business,” Bennett said. Bennett said then with the trespass order, they cannot legally re-enter the business. If they do, and are caught in the act of attempting to shoplift, the suspect can be charged with burglary. Burglary requires prosecution to prove that a person was not allowed to be where they were and had an intent to commit a crime. The felony charge is punishable by up to 10 years in prison. (Source

The D&D Daily - has a number of major investigations we're following, however we've been asked not to post any information until they've been resolved. Stay tuned for updates as they break.


“Protection 1 is proud to be sponsoring the D-D Daily ORC column to ensure the LP industry gets the information, education and critical data they need to fight this  national epidemic.” Rex Gillette, VP Retail Sales, Protection 1.

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Vendor Spotlight

The Increase of Internal Fraud Over Time

When it comes to shrink, the first thing that comes to mind for many is shoplifting and organized retail crime. As loss prevention professionals, though, we understand that this just isn’t the case. Every year the National Retail Security Survey reminds us that shrink is increasing, and that 44-47 percent of that shrink comes from internal fraud. Add to this training and clerical errors and it becomes clear that well over 50 percent of all shrink comes from inside the organization. But why does this number keep growing?

First, let us remove clerical errors from the equation (after all we are human), and focus on the actual fraud taking place. With total shrink increasing annually, and internal fraud increasing with it, there has to be something going on here that is causing employees to take more and more each year. One of the theories behind this is a fairly simple economic factor, inflation. Items are becoming more expensive, and in many cases smaller. This means that employees can take fewer items, but have a large impact over time. This theory is fairly logical, but it doesn’t fit all areas of retail.

Another theory that goes along with inflation involves employee salary. The thought process behind this theory is that retail associate’s pay increases do not reflect the increase in inflation. In other words their pay goes up, but not as much as it “should have.” In the area of organizational behavior there is a workplace deviance referred to as property deviance. Property deviance involves an employee who feels as though they are not being paid fairly, and so they either steal or damage items from their employers (nine times out of 10 they go the stealing route). This theory makes sense, but there is more to it.

To go along with property deviance there is something referred to as graduation, or escalation. This is when employees start to take more and more over time because they have not been caught and feel as though they can. This act has been studied by many, and has been confirmed in factory and office setting, but never for retail. We felt as though this needed to change because it’s one thing to make decisions based on a theory and another to make decision based on a proven theory. We set out to try and confirm the theory of escalation using statistics from our own clients, and put our results in an executive white paper.

Derek Rodner
VP, Product Strategy
856-366-1200 x500


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Shawn Huskey was promoted to Senior Manager of Loss Prevention and Safety for Corporate, Campus and Retail Stores for HSN.
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Why We Learn More From Failures
Success in business is not a bad thing, and it does teach us a lot about our company, our employees and ourselves, but when we experience a setback, we learn so much more than through success. The key, though, is to learn from your success.  Don't be too confident that your success is fool proof, here are some reasons why doing well could be bad for your business. (Don't catch a case of overconfidence)

The Simple Way to Leave Stress at Work
It's common that we end up taking our work home with us, whether physically or emotionally/ Usually it's the stress that we encounter at work that comes along for the ride. Try using these tips to leave your stress at the office, where it should stay, not in your home. (Take notes)

3 Simple Steps to Banish Negativity
Negative attitudes in the workplace can make for a very difficult environment, but there is one easy fix for that: change your attitude. Your attitude determines your actions, and how your co-workers or employees will respond to you. Gain a new, more positive and upbeat attitude by following these three steps, and say goodbye to negativity! (Where there's a will there's a way)

Why Your Boss Cares if You're Happy
Companies all over the world are focusing on ways to make sure their employees are happy, and measuring their levels of happiness. Why? It can only benefit both employees and the company as a whole. (Listen to what your employees want and care about the same things)

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Sometimes you have to lose in order to win long term. Picking your battles is an art that many never acquire, but those who do are usually two steps ahead of you. So while the loss may seem to set you back, regroup and focus two steps ahead because that's where the winner of the last battle is. And remember: always lose with dignity and win with humility.

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