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December 20, 2013

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News Brief
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Inside knowledge likely in Target breach, experts say - Was it at Corp. Data Center?  How did what is likely to be one of the largest data breaches in history occur? Some speculate it was only possible with insider knowledge. The Target security breach that left millions of debit and credit card holders at risk of becoming victims of fraud left experts pondering the question of how such a massive theft might have occurred. Theories varied, but the scant details released by the retailer Thursday left some experts believing the criminals had to have some inside knowledge of the company's point-of-sale system in order to compromise it so effective. Either people inside the organization were involved or, "at the very least, (the thieves) had sophisticated knowledge and a clear understanding of the cardholder data flows, in order to pinpoint where to steal this very specific data and then exfiltrate it," Mark Bower, director of information protection solutions at Voltage Security, said. The Journal reported that the theft involved Target stores nationwide and as many as 40,000 card devices may have been affected. Target has 1,797 stores in the U.S. Bower believes the thieves may have planted malware in the electronic cash register attached to the card reader. When a card was swiped, the malicious app would copy the data likely traveling in plain text from the reader. Because of the difficulty of compromising so many point-of-sale systems, other experts believed the breach more likely occurred at the corporate data center where card data may have been sent from stores before being relayed to a card-processing company. "There's only three, maybe five, of these really advanced financial attackers, and they're really good at breaking in and hacking and they understand credit-card processing inside and out," Zaichkowsky said. The fact that CVV codes were stolen was a red flag for John Kindervag, analyst for Forrester Research, who said it was an indication that Target may have had a serious security flaw. If CVV data were stored, then that would have been a violation of the Payment Card Industry Data Security Standard (PCI DSS) that financial institutions require of businesses accepting credit cards. In addition, if the data wasn't encrypted, then that could also run against the standard. There's a "50-50 chance" that either an insider with privileged access to Target's network was involved or the thieves obtained the credentials of a privileged user. (Source csoonline.com)

"The fact that three-digit CVV security codes were compromised shows they were being stored. Storing CVV codes has long been banned by the card brands and the PCI SSC." This means that at the end of the day the retailer - Target may have some exposure here. One expert says - "Without knowing the exact breach vector it's hard to say exactly what happened, but clearly by exposing CVV information target has demonstrated a blatant disregard for PCI DSS compliance regulations as well as card security best practices. It's a brand disaster at the busiest shopping time of the year." Note: To be fair, PCI is a point-in-time measurement of security. So it's possible for Target to have been fully in compliance with PCI-DSS, and still face the same type of compromise. (Source csoonline.com)

Fury and frustration over Target data breach - Officially now the 2nd Largest Breach in History  Potential victims of credit card fraud tied to Target's security breach said they had trouble contacting the discounter through its website and call centers. Angry Target customers expressed their displeasure in comments on the company's Facebook page. Some even threatened to stop shopping at the store. Target apologized on Facebook and said it's working hard to resolve the problem and is adding more workers to field calls and help solve website issues. The theft is the second-largest credit card breach in U.S. history, exceeded only by a scam that began in 2005 involving retailer TJX Cos. That incident affected at least 45.7 million card users. On Monday, a customer - Browning received a call from his bank's anti-fraud unit saying there were two attempts to use his credit card in California - one at a casino in Tracey, Calif., for $8,000 and the other at a casino in Pacheco, for $3,000. Both occurred on Sunday and both were denied. He canceled his credit card and plans to use cash. "I won't shop at Target again until the people behind this theft are caught or the reasons for the breach are identified and fixed," he said. (Source wcpo.com)

One Analyst - Target may have been inside job - and customers may go elsewhere to shop in last few days before Christmas  Given the millions of dollars that company's such as Target spend implementing credit-card security measures each year, Avivah Litan, a security analyst with Gartner Research said she believes the theft may have been an inside job. Other experts theorize that Target's network was hacked and infiltrated from the outside. The credit card breach poses a serious problem and threatens to scare away shoppers who worry about the safety of their personal data. "This is close to the worst time to have it happen," said Jeremy Robinson-Leon, a principal at Group Gordon, a corporate and crisis public relations firm. "If I am a Target customer, I think I would be much more likely to go to a competitor over the next few days, rather than risk the potential to have my information be compromised." (Source lowellsun.com)

New Chip-and-PIN technology coming in 2015 doesn't Stop the fraud it merely raises the cost for fraudsters to fabricate them  It became common to pay with chip-based cards in the U.K., around 2003, the level of fraud went up because thieves turned to schemes involving mail and telephone orders. Eventually, criminals figured out how to make fake terminals that steal information from the card. Also, the cards still have magnetic strips, in case European cardholders want to travel abroad. According to Krebs, some criminals simply steal the information from the cards in Europe, and because they can't pay with magnetic stripe cards over there, they send the information to crooks in the U.S. for illegal shopping sprees. Americans are actually lucky, says Anderson, because they have the thing that matters more than technology — consumer protection. If U.S. cardholders become victims of credit card fraud, they can call their bank and be done with it, losing at most $50 or so. In the U.K., for instance, cardholders have to write a letter to file their claim. The U.S. is ahead in terms of consumer protection, and if you're thinking about the public interest and how things affect you as a bank customer, that's by far the most important thing," Anderson says. "How the banks use technical mechanisms to limit their own exposure then simply becomes an engineering problem for them to solve. He says this consumer protection is why online shopping took off in the U.S. Starting Oct. 1, 2015, Visa will encourage the use of the new chip-embedded cards in the U.S. After that, if someone uses a chip card at a store that hasn't adopted the new terminals for reading chip cards, the store may be responsible for any fraud that happens. (Source npr.org)

Some stores to stay open for more than 100 hours for last-minute shoppers

How To Prepare for a Target-Type Data Breach  “It’s not an if, it’s a when for a lot of organizations in terms of data breaches,” she said. “Hopefully they have a breach response plan, have done some amount of preparation–especially organizations that have a wealth of data. Who are the people internally that need to be assembled? Who are the experts, whether they be legal or forensic or crisis management, to advise them? Organizations that have these situations move much more quickly and effectively if they have a plan prepared and they work with experts who have been down this road before. You don’t want a situation like this to be your learning curve.” Assemble an experienced team of experts. Stop the breach. Communicate. Share information with other companies. (Source wsj.com)

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eBay News
Police are searching for two suspects believed to prolific shoplifters. A reward is being offered for a couple accused of stealing more than $100,000 from three local stores. Police said John and Christine Jarussi are wanted for shoplifting from Williams-Sonoma, Inc., Toys-R-Us and Babies-R-Us. (Source ksat.com)

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Downing & Downing Presents - The D&D Daily
Live in NYC - An LP Broadcasting Event

An LP Industry First!

As most of you may have seen - we announced Monday that we're shooting the event in NYC live on the internet during the entire afternoon and evening. An industry first! With special guest - industry executives helping out with interviews and MC'ing for the viewers and general directing of the cameras during the live broadcast.

We have a number of scheduled interviews as you've all seen and we have one or two more we're waiting to announce. And we're also going to be shooting 5 minute interviews of LP attendees - for the viewers and for our LPNN broadcasting at a later date.

We'll have a live Twitter feed for you to actually be able to ask questions of the interviewees during the filming and we'll be talking about it in the upcoming NYC columns.

We've lined up Ted Potrikus, EVP Dir of Gov't Relations for the Retail Council of New York to talk at the dinner itself and give everyone an update on the developments around the current "Customer Bill of Rights" that's impacting the entire retail LP industry. A timely and very important issue we felt needs to be discussed.

We hope you can make it and for those who can't

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Canadian Push
Sponsored by Vector Security
More trouble for Sears Canada: 640 jobs lost as company ally goes into receivership  A spokeswoman for Pricewaterhouse Coopers Inc. says only a small number of employees at SHS Services Management Inc. will be temporarily retained to help with the receivership process. Kiran Chauhan says the layoffs at the independent installation services company are spread across the country. Sears (TSX: SCC) says it will ensure that all Sears Home Services warranties are honored. (Source yahoo.com)

Kids in Windsor, Ontario forced to shoplift, threatened with death, police say
A Windsor man has been charged with forcing children to shoplift by threatening to kill them. Police said the man told the two children, aged 12 and 14, that if they didn't do as he said they would never see their mom again and that he would kill them. Police learned of the alleged crime from the mother of the children. The mother told police she left the two children with an uncle who said he would take them out for supper. Police said the value of the merchandise stolen was about $800. (Source cbc.ca)

RCMP, Assiniboine Park Zoo Team Up to Fight Counterfeit Merchandise

Violent convenience store robbery caught on video  RCMP release footage of suspect who allegedly pushed and kicked 2 female employees in Surrey. The two female employees, ages 51 and 57 years old, are recovering from their injuries, but police say they are still shaken up by the incident. (Source cbc.ca)


Big Data
Sponsored by Verint

How Big Data Will Change People Management Forever  Big data is used in many different parts of organizations to change decision-making and the generation of data-driven insights. People management (or human resources) teams are already data rich – they have a lot of data on things like staff turnover, recruitment channels, training and development, staff satisfaction and absenteeism. In addition to these traditional data sets, companies can now collect so much more data, data that wasn’t available before, like: capturing employees on CCTV, taking screenshots when staff are using company computers, scanning social media data, analyzing the content of emails, and even monitor where they are using the data from geo-positioning sensors in corporate smart phones. (Source smartdatacollective.com)

Even Small Companies Can Tap Big Data If They Know Where to Look  Small and medium-size businesses are often intimidated by the cost and complexity of handling large amounts of digital information. A recent study of 541 such firms in the UK showed that none were beginning to take advantage of big data. None. That means these firms and a lot of others are at a serious disadvantage relative to competitors with the resources and expertise to mine data on customer behaviors and market trends. What these data-poor companies don’t know is that it’s possible to get a lot of value from big data without breaking the budget. In fact, there are plenty of small and midsized companies doing interesting things with data, and they aren’t spending millions on it. Gone are the days where companies seeking to tap into big data needed to purchase expensive hardware and software, hire consultants, and invest huge amounts of time in analytics. Trends such as cloud computing, open-source software, and software as a service have changed all that. New, inexpensive ways to learn from data are emerging all the time. (Source hbr.org)

Big Data’s Biggest Challenge? Convincing People NOT to Trust Their Judgment  Here’s a simple rule for the second machine age we’re in now: as the amount of data goes up, the importance of human judgment should go down, says research scientist Andrew McAfee. The previous statement reads like heresy, doesn’t it? Management education today is largely about educating for judgment—developing future leaders’ pattern-matching abilities, usually via exposure to a lot of case studies and other examples, so that they’ll be able to confidently navigate the business landscape. And whether or not we’re in b-school, we’re told to trust our guts and instincts, and that (especially after we gain experience) we can make accurate assessments in a blink. This is the most harmful misconception in the business world today (maybe in the world full stop). According to McAfee, human intuition is real, but it’s also really faulty. (Source hbr.org)

The Awesome Ways Big Data Is Used Today To Change Our World 
From improving security and law enforcement to understanding customers to optimizing professional performance, Big Data is already being used - in countless applications - to add real value to our lives. As with other mega buzzwords, many say Big Data is all talk and no action. This couldn’t be further from the truth. Click here to see 10 areas where Big Data is being used the most today and where it is making the most impact. (Source linkedin.com)


EHS & Safety

National Wholesale Liquidators New Years Safety Tips

December 18, 2013 West Hempstead, NY National Wholesale Liquidators, located at 111 Hempstead Turnpike West Hempstead, NY, is pleased to announce a special promotion running this holiday season. On Tuesday, December 31, 2013, in all our retail stores we will be reminding everyone to drive responsibly and to plan ahead by offering free safety tips and providing a sign reading if you are drinking, designate a driver.

Implementing this Designate- a-Driver event was important to Scott Rosen, President and CEO of National Wholesale Liquidators. “Promoting safe driving can save lives. I hope the emphasis we put on safety this year can prevent a tragedy. Safety is our goal,” said Mr. Rosen.

Phil DeGorter, director of loss prevention for NWL said, “If this video or safety tips save just one life, what’s better than that?”

The family owned and operated company, founded by Eva Rosen in 1984, operates stores in the New York metro area – Cross County Shopping Center (Yonkers); Bay Parkway (Brooklyn); Co-op City (Bronx); Flushing (Queens), West Hempstead (New York); Long Island City (Queens), Lodi (New Jersey) Jersey City (New Jersey); Middletown,( New York) and Dorchester, MA.

For additional information about National Wholesale Liquidators, please visit our website at www.nationalwholesaleliquidators.com or Like us on our Facebook page.


Retail Crime News
Sponsored by Sony

Police discover multimillion-dollar counterfeit purse operation in East Point, Ga.  East Point police spent Thursday night cleaning out a local business that they said was a front for a counterfeit purse operation. Police raided the shop on Headland Drive and arrested four people for trademark and copyright infringement. Police seized anywhere from $10 to $20 million worth of product. The store operators took steps to keep it all out of sight. There are walls that have been built inside with doors that even the owners of the building didn't know were in there," said Chandler. "It was like a maze to get back to where they had the items secured. There were four storefronts in a The Shops at Greenbriar plaza were actually fronts for selling illegal items including purses, wallets and shoes. Atlanta police also conducted an undercover bust. They served three warrants at the Greenbriar Discount Mall. Officers found counterfeit Prada and Channel items, as well as counterfeit CDs and DVDs. The estimated value was over $400,000. (Source cbsatlanta.com) (Source wsbtv.com)

Dollar General suspect arrested in New Iberia, LA, charged with attempted murder; cashier shot in the leg  An Abbeville man is in custody and charged in with attempted first-degree murder in connection with last night's armed robbery at a New Iberia dollar store. Darrel Mathieu, 50, is accused of going inside the Dollar General on LA 14 and demanding cash at gunpoint. Deputies say Mathieu shot the cashier in her leg before fleeing. (Source katc.com)

Two women indicted on robbery/ shoplifting charges in Glen Falls, NJ; suspect’s attorney says, yes, they fled but force was minimal  The LP Agent’s cell phone was grabbed away and smashed by the suspect during apprehension. (Source poststar.com)

Ultra Diamonds in Houston Premium Outlet Mall the victim of an $87,350 Rolex Smash and grab  Three suspects entered the store at approx. 8:15pm. One suspect remained at the door while the two others smashed out the Rolex case and removed 7 watches valued at over $87,000; the incident took less than 30 seconds. No injuries were reported.

Two suspects sought in Panera Bread armed robbery in Omaha, NB Thursday night, a man armed with a gun forced seven employees into a restroom where they were told to empty their pockets. The other suspect took cash from the register before both fled. (Source wowt.com)

Traveling Credit Card Fraud Ring Sent 8 to Prison in Michigan 

Female suspect wanted in connection with jewelry store robberies in Victorville and Tarzana, California

Shoplifting Suspect Accused Of Using Stun Gun On Sears Employee in Denver

Atlanta Motorcycle Dealer employee accused of $120,000 in embezzlement 

Westerly, CT Police arrest a Norwich woman in credit card fraud scheme; hitting Macy’s and Walmart for thousands

Man gets 70 years in prison for shooting East Missoula, MO clerk; convenience store clerk refused to hand over cash, shot in the back

Robbery suspect arrested in connection to Cumberland Farm and Circle K in Northampton, MA.

Cincinnati Police arrest a serial Robbery suspect; suspected in Walgreens, CVS, UDF, and Steak-N-Shake incidents

Hopewell, VA Police make arrest in Walgreens Armed Robbery

Walmart Shoplifting suspect caught after scuffle with deputy in Mesa, AZ 

Suspect jailed after restroom robbery attempt at Kohl’s in San Diego 

Family Dollar store destroyed by fire in Lexington, KY  The fire started at the Family Dollar store along New Circle Road around 11:30 p.m. Flames engulfed the business, shooting high into the air, and responding firefighters quickly called in a second alarm. The fire was so intense, it damaged a fire truck. It also fried several power lines leading to the building. There were no employees or shoppers in the store at the time of the fire, and no reported injuries. (Source kentucky.com)

Robberies & Burglaries

CVS – Robbery – McCordsville, IN - 2 suspects arrested by Police
Cenex Store – Armed Robbery – Billings, MO – no injuries reported
Chevron Store – Armed Robbery – Casselberry, FL - armed incident caught on camera
Fastrac – Armed Robbery – Utica, NY – Cashier was cut by the suspects knife, minor laceration
Holiday Store – Armed Robbery – Billings, MO, may be connected to Cenex robbery also in Billings
Rite Aid – Armed Robbery – West, Seattle, WA – gun was never displayed, no injuries
Safeway- Shoplifting/ Robbery – Sacramento, CA – fleeing suspect pulled a gun on LP agent
Ed’s RC Hobby store- Burglary – Charleston, WVa. – Suspect took toy trucks valued at $1000 and $520
Family Dollar – Robbery – New Bern, NC – no weapon was displayed, no injuries
GNC – Armed Robbery - Jacksonville, FL - female suspect; no injuries
Kum-n-Go – Armed Robbery – Omaha, NE – Robber returns later to make a purchase; later arrested
Speedtrack – Burglary – Jackson County, FL – Alarm scared off burglar, glass broken, nothing stolen


ORC News
Sponsored by Protection 1

U.S. Marshals arrest 151 in Operation Grinch Stopper 2 in Arizona  The U.S. Marshal Service, with the help of law-enforcement agencies throughout the state, arrested more than 150 people in a three-day operation called Operation Grinch Stopper 2. Operation Grinch Stopper was created last year after Tucson police Sgt. Robert Carpenter was shot while responding to a burglary alarm. Carpenter survived. For the second year in a row, Deputy U.S. Marshals and our law enforcement partners in Arizona have targeted and arrested individuals who have victimized others for their hard-earned money and possessions," said David P. Gonzales, U.S. Marshal for the District of Arizona. "Law-abiding citizens can feel secure that there are far fewer thieves, fences, robbers and burglars on the streets this holiday season." (Source azfamily.com)

Former Suns player arrested in organized retail theft in Arizona in Operation Grinch Stopper 2  Former Suns player Richard Dumas was arrested Thursday on suspicion of organized retail theft as part of statewide roundup of people with outstanding warrants, authorities said Friday. Dumas was indicted on suspicion of eight counts of organized retail theft. Operation Grinch Stopper 2 focused on people who held outstanding warrants in connection with various property crimes. The operation ran from Tuesday to Thursday. Authorities from 27 agencies across the state made 151 arrests. Dumas was a rising NBA star as a forward with the Phoenix Suns in the early 1990s before his career came to an early end. After a 1998 cocaine arrest, Dumas tried to revive his basketball career in Croatia as a center but injured his knee. (Source azcentral.com)

Holiday Shoplifting: Fighting Organized Retail Crime In MA  Officer Jones works at the Square One Mall Police Substation, which is a partnership between Saugus Police, Simon Malls and Allied Barton Security. “The biggest problem is shoplifting and whether it’s one person walking into a store and seeing something and realizing they don’t want to pay for it so they steal it, or whether it’s organized retail crime, nationwide, it’s a big problem,” says Officer Jones. (Source cbslocal.com)

Two arrested for theft of baby formula from Pick 'n Save in Racine, WI  Two Racine residents have been arrested in connection to crimes involving the theft of baby formula from a Pick 'n Save on Green Bay Road in the Village of Mount Pleasant. According to police, the thefts occurred on Dec. 9,10, 13 and 14th. (Source journaltimes.com)

“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

Tyco Retail Solutions Successfully Addresses Store Performance and Security Needs of Retailers

Introduction of innovative new RFID-based applications for Traffic, Inventory and Display Execution drive customer adoption worldwide

NEUHAUSEN, Switzerland — December 12, 2013 — Tyco Retail Solutions (www.tycoretailsolutions.com), a leading global provider of retail performance and security solutions, today announced the company has completed another successful year. As the retail industry undergoes technology-driven transformation, Tyco Retail Solutions continued to deliver innovative new software and hard tag offerings that enable retailers to maximize profits and enhance the shopper experience. Those efforts were recognized across the industry with a number of new customer wins and numerous industry awards.

Among the most significant 2013 milestones, Tyco Retail Solutions expanded its inventory intelligence solutions with targeted RFID applications to create more value for retail customers. Record revenue was achieved for its global source tagging program with five percent growth and more than 15 Visible Source Tagging (VST) hard tag customers. The company was the first to protect over one billion consumer apparel items annually for its genuine Sensormatic brand anti-theft source tagging program which underscores Tyco Retail’s leadership position as source tagged goods arrived in more than 10,000 stores across every continent.

2013 Highlights

Customer Successes:

Inventory intelligence solutions gained rapid growth with more than 10 global retailers in over 1,500 stores adopting RFID item-level inventory intelligence solutions to combat mission-critical issues such as poor inventory accuracy.

Deployed targeted RFID Display Execution applications installed at several retailers. Saks Fifth Avenue was one of several leading retailers to deploy Tyco Retail’s RFID-enabled TrueVUE Inventory Display Execution application for management of footwear departments.

Tyco Retail’s Traffic Intelligence solution expanded into high growth Asian markets, adopted by retailers Belle International and FJ Benjamin to optimize store performance.

One of the world's largest fashion retailers continued to expand use of recirculated Sensormatic AM/RFID hard tags with hundreds of millions of tags through an innovative lower cost recirculation model.

Industry Awards:

Winner, 2013 Store Operations Superstar Award, Retail TouchPoints, Saks Fifth Avenue RFID-based display execution implementation.

Winner, 2013 Supply & Demand Chain Executive 100, RFID supply chain program with a major department store retailer.
Winner, 2013, Green Supply Chain Award, Supply & Demand Chain Executive.

Product Innovation:

Released RFID-Based Inventory Display Execution application, the first targeted application through the TrueVUE Platform to help retailers derive value from RFID solutions.

Expanded sensor portfolio with over 15 new Sensormatic hard tags, including innovative tags for accessories, delicate apparel and high-heel pumps.

Launched value-based EAS & Traffic Intelligence hosted offering to round out managed services portfolio.

“We closed 2013 on a high note, marked by great performance and outstanding wins with retailers worldwide,” said Nancy Chisholm, Vice President and General Manager, Tyco Retail Solutions. “Over the course of the year, we accelerated our offerings in both security and store performance to complement and enhance each other to better serve the growing needs of our retail customers. We will continue to drive innovative solution development in the year ahead to ensure we help our customers stay ahead of the demands of the market.”

Watch our new video, Tyco Retail Solutions-Driving our Industry Forward.

About Tyco Retail Solutions
Tyco Retail Solutions is a leading global provider of integrated retail performance and security solutions, deployed today at more than 80 percent of the world’s top 200 retailers. Customers range from single-store boutiques to global retail enterprises. Operating in more than 70 countries worldwide, Tyco Retail Solutions provides retailers with real-time visibility to their inventory and assets to improve operations, optimize profitability and create memorable shopper experiences.

The Tyco Retail Solutions portfolio for retailers is sold direct through Tyco businesses and authorized business partners around the world. For more information, please visit TycoRetailSolutions.com or follow us on LinkedIn, Twitter, and our YouTube channel.

Julie Crotty
Attune Communications
+1 (978) 877-0053


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It's All in Your Head: How to Train Your Brain for Leadership and Better Decision Making  Our brains are incredible organs; so much so that we can rewire them to a degree that even includes its physical make-up, and how our personalities operate! If you don't feel like you're a good decision maker then start training your brain to maximize your mental power! (It's all mental)

Why Your Brain Can't Handle an All-Day Schedule  Working right through breaks will get you ahead, right? False! Working all the time can create problems with your work performance, concentration, and focus. Your brain just can't handle the overload, so you need to make sure you're giving it plenty of rest to re-energize for the next work day. (Warm body = more concentration)

3 Ways to Keep Up Productivity Over the Holidays  The holidays can mean a lot of fun and celebration at the workplace, but it can also mean productivity starts to go down! Employees are distracted with getting shopping done, or planning trips, but that doesn't mean leaders should stress out about it! Use these ideas to keep your productivity high and make it fun! (Make it a competition)

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The "rumor mill" is a very treacherous and unforgiving world of fact and fiction. That at times is filled with innuendos, accusations, untruths, and what ever gets added to the information being talked about regarding companies and people. Participating in it is human nature and we all know third party information leaves a lot to be desired. So the rule of thumb should be to be cautious about believing, try not to form an opinion until you’ve heard both sides, understand the agendas that every one has, and most importantly be careful about what you say.

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