Artificial Intelligence Helps Retailers Bust Thieves At Self-Checkout
StopLift's Scan-Avoidance Technology Featured by CBS New York
Theft has always been a problem for retailers. Losing an item means having to sell fifty more to make up for what was lost. Many of those losses occur at checkout scanners - by cashiers and customers. The National Retail Federation said an estimated $14-billion is lost annually in 'scan avoidance.'

The scams are brazen - as blatant as throwing items down the belt - sometimes accidental - forgetting to scan things left in a cart, or customers getting frustrated at the self-checkout.

Intentional or not, there's technology that can spot scan avoidance at the checkout as it happens: StopLift Checkout Vision Systems. Using artificial intelligence, it can read and flag checkout behaviors; suspicious transactions can be questioned on the spot; and mistakes can be corrected before anyone is labeled a thief.

StopLift CEO & Founder Malay Kundu says: "It can ping you in real time."

Miguel Garcia, owner of Big Deal Supermarket in the Bronx, installed StopLift without telling his staff. "I never expected to find something done purposely," he said, "And I was happy afterwards to see it was mistakes."

Garcia said cashiers now know to look for items on the bottom of carts, and even slow down to not miss a scan. cbslocal.com

The Banana Trick and Other Acts of Self-Checkout Thievery
1 in 5 admit to stealing at self-checkout
Beneath the bland veneer of supermarket automation lurks an ugly truth: There's a lot of shoplifting going on in the self-scanning checkout lane. But don't call it shoplifting. The guys in loss prevention prefer "external shrinkage."

Self-checkout theft has become so widespread that a whole lingo has sprung up to describe its tactics. Ringing up a T-bone ($13.99/lb) with a code for a cheap ($0.49/lb) variety of produce is "the banana trick." If a can of Illy espresso leaves the conveyor belt without being scanned, that's called "the pass around." "The switcheroo" is more labor-intensive: Peel the sticker off something inexpensive and place it over the bar code of something pricey. Just make sure both items are about the same weight, to avoid triggering that pesky "unexpected item" alert in the bagging area.

How common are self-scanning scams? If anonymous online questionnaires are any indication, very common. When Voucher Codes Pro, a company that offers coupons to internet shoppers, surveyed 2,634 people, nearly 20 percent admitted to having stolen at the self-checkout in the past. More than half of those people said they gamed the system because detection by store security was unlikely.

A 2015 study of self-checkouts with handheld scanners, conducted by criminologists at the University of Leicester, also found evidence of widespread theft. After auditing 1 million self-checkout transactions over the course of a year, totaling $21 million in sales, they found that nearly $850,000 worth of goods left the store without being scanned and paid for.

The Leicester researchers concluded that the ease of theft is likely inspiring people who might not otherwise steal to do so. Rather than walk into a store intending to take something, a shopper might, at the end of a trip, decide that a discount is in order.

Whether out of social responsibility or frustration with shrinkage, some retailers, including Albertsons, Big Y Supermarket, Pavilions, and Vons, have scaled back or eliminated self-scanning, at least in some stores. But others continue to add it. Worldwide, self-checkout terminals are expected to number 325,000 by next year, up from 191,000 in 2013. theatlantic.com

After Proposition 47: Crime and No Consequences in California
The 2014 ballot initiative had unintended results galore. California's Proposition 47 downgraded a variety of "non-serious, nonviolent crimes" that had previously been considered felonies to misdemeanors. These include shoplifting, grand theft, receiving stolen property, forgery, fraud, and writing bad checks. As long as the total value of the stolen property is under $950, only a ghost of an offense has occurred. A thief may now steal something under that limit on a daily basis and it will never rise to felony status.

In the event that a perpetrator is pursued and apprehended, the consequence can be a small fine or a brief stay in jail, In reality, these repercussions are rare. In addition, DNA samples aren't collected from misdemeanor offenders. Thus the DNA database has shrunk, making it more difficult for law-enforcement agencies to solve cold cases, including those involving rape and murder.

The underlying premise of Proposition 47 was to free up funds so the state could focus on violent and serious offenders. Savings would be diverted to school-based prevention and support programs, victim services, and mental-health and drug treatment. Therefore petty thieves, who might be drug addicts, would avoid costly and ultimately detrimental incarceration.

What could possibly go wrong? That question is best asked of the people in California who are robbed and call the police for help. Overall, they're blindsided by the slow (or non-) response. The surprise and anger they feel is tremendous. Nearly a thousand dollars in stolen property is hardly minor, especially to those who have little to lose. It's not just the loss of personal possessions they'll probably never see again that is so distressing, but the ruined trust in the system that they assumed was designed to protect the innocent.

For law enforcement, however, there is little incentive to chase down low-level criminals. Even if the person is escorted to the station, odds are great he'll be back on the street in an hour or so.

Thankfully, some are attempting to fix the unintended consequences of Proposition 47. State assemblyman Jim Cooper (D., Elk Grove) and Sacramento County district attorney Anne Marie Schubert are behind Assembly Bill 16, a ballot initiative that will reverse some of its damage. People convicted of a third theft of property worth $250 could be charged with a felony, and DNA collection would be reinstated for certain misdemeanor convictions. If proponents can gather the 370,000 signatures necessary to put the measure on the November 2018 ballot, California voters will have the power to pass it into law. nationalreview.com

Amazon Fights Cert. Bid In Background Check Suit
Amazon.com urged a Florida federal judge on Wednesday to deny certification to a proposed class of job applicants who claim the e-commerce giant performed consumer background checks on them without following strict legal requirements.

The company said each plaintiff was shown a single document, conspicuously labeled "background check disclosure" that explained that Amazon would run a background check as part of their employment application. The plaintiffs had to click "I accept" and electronically sign a separate background check authorization that gave them the option to consent to the background check, according to Amazon. law360.com

Does Amazon's Newly Opened Cashier-Less Grocery Store Threaten Retail Jobs?
Amazon has opened the first of what may become a string of grocery stores that don't have cashiers or self-checkout machines, which leaves labor groups and HR experts asking if the jobs of America's 3.5 million cashiers are at risk.

It's unclear how this technology will change the workforce. Experts say that industries that face automation often end up adding more employees over time. A Quartz analysis, however, found that Amazon - with its dependence on robots and its appeal to customers who'd rather shop online than at brick-and-mortar stores - is killing more jobs than it is creating. Amazon Go may exacerbate that problem. shrm.org

Retail jobs increased by over 11,000 in January
Retail industry employment increased by 11,100 jobs in January over December, the National Retail Federation said today. The number excludes automobile dealers, gasoline stations and restaurants. Overall, the economy added 200,000 jobs, the Labor Department said. nrf.com

Tesla partners with Home Depot to open in-store shops
Tesla will test the appeal of its renewable energy products to a mainstream audience with the help of the nation's largest home improvement retailer. Tesla will have dedicated spaces featuring its residential solar panels and Powerwall batteries at about 800 Home Depot stores, Bloomberg reported. The spaces will be staffed by Tesla employees and will allow the company to demonstrate its technology in a one-on-one environment with potential customers. chainstoreage.com

Turning the tide: Retail pharmacy grapples with the opioid epidemic
The opioid crisis is one staggering statistic after another. Opioid-related deaths - including those due to prescription opioids, heroin and fentanyl - have more than quadrupled since 1999, with the Centers for Disease Control and Prevention logging 42,000 opioid-related fatalities in 2016. That year, 40% of all opioid overdose deaths - about 17,000 - involved prescription opioids.

That the crisis is something to be reckoned with is not news to the healthcare industry, which is arguably the one closest to it, particularly when it comes to community pharmacies. What is changing is that the industry is more aggressively looking to offer solutions - from overdose prevention to safe disposal and educational programs - as it waits for legislative solutions that codify preventive measures against opioid abuse and misuse. At the same time, it still wants to ensure that patients with chronic pain can retain access to necessary treatment. drugstorenews.com


Flu is gaining foothold in Northeast, Walgreens reports
While the flu continues to appear most prevalent in the deep South, influenza illness appears to be gaining a foothold in the Northeast, according to the latest Walgreens Flu Index released this week. Outside of the South, Connecticut, New Jersey and North Carolina are seeing significant gains in flu activity.

Texas markets, however, still dominated the top 10 designated market areas with flu activity for the week ended Jan. 27. drugstorenews.com



Minneapolis gets 'significantly heightened' security measures and resources for Super Bowl

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ORC Violence is On the Rise:
Here's How to Solve the Problem

The National Retail Federation's (NRF) 2017 Organized Retail Crime Survey was just released, and not many retail Loss Prevention professionals are surprised to learn losses from ORC have increased over the last year. But the bad new gets worse. According to the survey, 26% of survey respondents report that ORC offenders are exhibiting more violence and aggression than prior year. This information seems to agree with all of the industry statistics measuring this phenomena.

In the D&D Daily's Retail Violent Death Report (August 2017), it was reported that retail deaths attributed to violence increased by 13% in the second quarter of 2017, and by 15% in the first half of the year. The report also indicated the victims were "predominately shot and killed." In 2016, five loss prevention/security officers and four police officers were killed during incidents involving retail crimes.

Scrambling to Strategize

Armed with all of the recent information regarding increased shoplifter violence, Loss Prevention professionals are trying to create the best strategies to combat this growing problem. Current policies do not seem to be enough, as retailers continue to deal with serious and costly injuries and deaths attributed to apprehending shoplifters.

As loss prevention executives contemplate possible remedies, innovative solutions providers continue to create technological offerings that protect employees and merchandise. In a recently released whitepaper by The Calibration Group entitled, Violence in Loss Prevention: Dissecting Shoplifter Apprehensions, Robert Harling, Senior Vice President of Business Development for Gatekeeper Systems stated, "Apprehending shoplifters continues to be a risky business. As stated in one of Gatekeepers' recent blogs, the frequency of violent confrontations during the act of apprehending shoplifters appears to be increasing with no end in sight. Using shopping cart management and control technology to recover stolen merchandise at the door, rather than confronting shoplifters, is arguably the safest way to protect a retailers' employees and their merchandise."

The challenge is clear: loss prevention executives must find new ways to prevent their merchandise from being stolen, while at the same time keep their respective company employees out of harm's way. Only technological solutions can accomplish both.

Click here to learn about the most effective solution for apprehending merchandise instead of shoplifters.

Walmart's new robots are loved by staff - and ignored by customers
Walmart may be grabbing headlines for its embrace of cutting-edge technologies, but at the heart of those changes are companies like Bossa Nova. The San Francisco-based robotics firm created the robots now roaming the aisles in 50 Walmart locations around the US.

Bossa Nova's robots are able to perform tasks such as identifying when items are out of stock, locating incorrect prices, and detecting wrong or missing labels. We spoke to Martin Hitch, chief business officer at Bossa Nova, about the technology behind the machines and how they are being received by shoppers and employees.

How have employees responded to the robots? Have you received any pushback because of the "robots are taking my job" idea?

Martin: When we first deployed a robot in a store, the associates were the people that understood it first. This boring, repetitive task of scanning the shelves - we have yet to meet someone who has liked to do that. Employees instantly become the advocates for the robot.

One way they do that is by giving it a name - the robots all have Walmart name badges on. The employees have competitions to see what the right name is for each robot. They also advocate for the robot to the general public. It's the store staff saying, "It's helping me." We see them now defending the robot.

What about shoppers?

It's typically one of two different extremes. One of them is natural curiosity. They are going to go ask what it does, and why. When a robot is first deployed, we have a chaperone in the store to answer those questions. But at least 50 percent completely ignore it like it is any other device, which surprised us. technologyreview.com

H-E-B tests smart glasses in warehouse facilities
H-E-B recently concluded a pilot test program involving computerized augmented reality glasses that are designed to improve employee productivity by providing them with more real-time information and visual cues enabling them to be more efficient - while ensuring continued safety and compliance.

Augmented reality is when computer-generated holographic images are projected in the real world using a smartphone camera or smart glasses. For its test, San Antonio, Texas-based H-E-B teamed with Vuzix Corp., a pioneer in smart glasses technology, based in Rochester, N.Y. supermarketnews.com

Mandatory Breach Notification is not a silver bullet
If we consider the US example, where mandatory breach notification laws have existed in California since 2002 (California Senate Bill 1386) and are now found in 48 states, the District of Columbia, Guam, Puerto Rico and the Virgin Islands, the number of data breaches reported is increasing at an almost exponential rate.

Judging by the data available, it would appear that a Notifiable Data Breach (NDB) is having a limited effect in the US. Why would this be the case? There are a number of factors at play, including the trends in interconnectedness, the ubiquitination of cloud compute services, the breakdown of the traditional network perimeter and of course the increasing sophistication of cyber-attacks. But it would also appear that the threat of reputational damage, regulatory actions and the costs from a technical, business and legal perspective associated with cleaning up a data breach are simply not enough for many organisations to address their cyber risk. csoonline.com

Louisville wants drones that zip to gunshot sites
Louisville could become the first US city to send automated drones equipped with cameras to gunshot sites, giving officers a live assessment of what's going on at the scene, according to Insider Louisville.

The Kentucky city has submitted an application to the Federal Aviation Administration's drone innovation pilot program, which allows local, state and tribal governments to apply for zones where drone operations could go beyond recreational consumer uses. The program was established as part of a directive issued by President Donald Trump in October, which relaxed some of the rules governing commercial drone use. cnet.com

8 Ways Cyber Threats and Business Security Will Change This Year

'Ransomware' Added to Oxford English Dictionary

Solution Providers: Have a video or commercial you want to publish? Contact us 

Report: Retailers unprepared to handle serious online fraud threats on their own
As of September 2017, data breaches were 375% higher than 2016 - and this was only based on incidents detected in the "2017 Fraud Index," from Radial.

Combine this with the majority of retailers being EMV compliant, "and it's Christmas every day for cyber criminals. Any retailer that is trying to manage this massive and extremely complex problem alone is risking the viability of their business," according to the study.

The following five trends can help retailers decide if managing fraud on their own is a wise decision:

● Card-Not-Present (CNP) fraud continues to rise with some market segments - but the blame does not lie solely with EMV.

● Data breaches are igniting fraud attacks, with 2017 reporting the highest number of breaches since tracking began.

● Digital gift cards steadily increase in risk year-over-year (YoY).

● Shipping and fulfillment methods carry different risk, but all areas saw an increase in attacks in 2017.

● Credit card bank identification number (BIN) country and IP country are red flags for fraud. chainstoreage.com

Kount Launches Inaugural Report on the State of Chargebacks

Joint Study Reveals Incredible Insight into Chargeback Influence of Online and Mobile Merchants

Acceptable Fraud and Dispute Organized by Industry
The report found that while most merchants are actively disputing chargebacks (82%), 10 percent are in excessive chargeback programs and almost one in four (24%) state they had no idea what their actual win rate was when it came to those disputes.

Success in Disputes
Of the 82 percent of surveyed organizations that reported they are actively disputing chargebacks, one-fifth of merchants are winning less than 15 percent of their dispute cases and more than one-third win less than 30 percent of their disputes.

Chargebacks' Origins
Nearly half of respondents overall (48%) claimed CNP fraud was their biggest source of chargebacks, followed by friendly fraud (28%), account takeover fraud (7%), and merchant error (4%). Meanwhile, 12 percent of organizations reported that they don't know the cause of the majority of their chargebacks.

Chargeback Challenges
The two most cited challenges with chargebacks were disputing them (59%) and being able to identify friendly fraud (58%). Gripes with disputing chargebacks, a process known as re-presentment, can include low win rates and the operational requirements or burden of conducting chargeback re-presentment. Friendly fraud is another major source of frustration as merchants struggle with how to handle dishonest customers and a payment chargeback system that can often favor cardholders.

Fraudbusters!
Most of the organizations surveyed (88%) deploy multiple tools or services for fraud and chargeback prevention, with more than three-quarters using three or more fraud fighting features or technologies, and nearly two-thirds using four or more. kount.com

Amazon sales surge 38% during best holiday-quarter growth since 2009

92% Of Checkout-Savvy Merchants Use Reviews To Drive Conversions

Data: 52% of Americans name Amazon as favourite online retailer

Stuart, FL: Baby Formula donated after Walmart theft
Walmart returned over 100 cans of baby formula to police for a community donation after an investigation into men stealing from their Stuart store, Stuart police announced. Dejun Yan, 30 and Xu Zhang, 26, both of Flushing, New York are accused of using counterfeit $10 off coupons to purchase a large quality of baby formula from the Walmart in Stuart. Investigators say the pair traveled throughout the state during a crime spree. A Stuart police detective reported finding a large stash of baby formula inside the car used as a getaway vehicle.

According to a police report, the suspects had over 500 cans of Enfamil Powdered Formula. Police said in a Facebook post that they worked with Walmart Asset Protection and were able to account for most of the formula. Over 100 cans were given back to the Stuart Police Department to be handled as donations. The remaining baby formula was donated to Mary's Shelter, Compassion House, Care Net, and Whole Child Connection on Thursday. wflx.com

Seattle, WA: Police find suspect's to-do list in serial Rolex smash-and-grab robberies, 'Hit a Ben Bridge'
King County prosecutors have charged three of the four suspects accused of stealing $236,000 worth of Rolex watches during a smash and grab robbery at the downtown Seattle Ben Bridge jewelry store on Dec. 22, 2017. The suspects used a large sledge hammer to smash the glass, causing half a million dollars in damage to 50 other watches in the case. Christopher Patterson, Aufu Snow and Nathaniel McRae are all in the King County jail charged with first degree robbery.

Patterson is also a suspect in similar smash-and-grab robberies at Ben Bridge stores in Lynnwood and Seattle, as well as two other robberies. Police say anonymous tips from Washington's Most Wanted viewers to Crime Stoppers of Puget Sound helped identify the suspects. q13fox.com

Indianapolis, IN: Suspects smash glass jewelry cases with hammer,
steal more than $100K in merchandise
Police say the men were caught on camera stealing more than $100,000 worth of merchandise from two Kay jewelry stores around the city. Last week, investigators say the duo hit the Kay Jewelers at Castleton Square Mall. "One of them took control of the two employees while the other one did the smash and grab with the hammer," said Commander Barker. "We believe it is the same individual or individuals that were involved in the robbery of the Kay Jewelers on E. Washington St. from last May," said Commander Barker. In that case, police say the suspects stole more than $100,000 in merchandise at once. fox59.com

UPDATE: Ravenna, OH: $30,400 Giant Eagle employee theft sends woman to jail for 90 days, probation and full restitution
In addition to owing her former employer a total of $30,400 to be paid within the next 30 months, 44-year-old Judith L. White is banned from all Giant Eagle stores in Portage County for the next five years. White pleaded guilty in November to grand theft, a fourth-degree felony, following a Ravenna Police Department investigation into allegations she stole more than $30,000 worth of groceries while working at the Giant Eagle store. Giant Eagle Loss Prevention investigators used surveillance video and store records to build a case, which they turned over to Ravenna police for further investigation. In court filings, White's attorney said her behavior was the result of substance abuse issues. record-courier.com

Bristol, CT: Man Indicted on Rite Aid $1,000 Theft
William Burke, 28, is facing a Class B felony charge of theft by unauthorized taking in connection with merchandise removed from the Rite Aid Pharmacy in Bristol on Oct. 16, 2016. Burke is alleged to have taken between $1,000 and $1,500 worth of merchandise from the store, including two 19-inch televisions, portable speakers, headsets, a camcorder, and other electronics and accessories, as well as deodorant. laconiadailysun.com

North Olmstead, OH: C-Store Employee arrested for $1,500 Lottery Ticket Theft

Shootings, Assaults & Deaths

Tulsa, OK: Woman killed in shooting outside of Woodland Hills Mall
Tulsa Police responded to a shooting outside Woodland Hills Mall near 71st and Memorial. Dispatch confirmed the shooting happened at the mall, near Cheesecake Factory. When they arrived, police said they found the woman dead with a gunshot to the chest and the gun nearby. Investigators know who the woman is, but have not released her identity. She is not from the Tulsa area. fox23.com



Las Vegas, NV: Two people shot near Walmart Neighborhood Market
Two people have been shot multiple times in northeast Las Vegas Thursday night. Metro Police say the shooting happened at the Walmart Neighborhood Market before 10:30 p.m. on East Charleston. Police say an employee and a man got into an argument outside of the store. The man shot the employee multiple times. The employee ran inside and a second employee intervened wrestling with the man. The man who shot the employee wound up with a gunshot wound to his leg, according to police. The shooting victims are expected to survive. lasvegasnow.com

Houston, TX: Woman detained after man shot near PlazAmericas jewelry shop
Houston police responded to a report of shots fired near the PlazAmericas Mall on Thursday evening. Police were notified of the incident just before 6:30 p.m. at a jewelry store at 7500 Bellaire Boulevard. Police tape was set up around the store and multiple shell casings were scattered around the parking lot. A man was taken to the hospital and a woman was detained at the scene. It is unclear what the relationship is between the man and woman. click2houston.com

Chicago, IL: Teen found critically injured outside Ace Hardware
The man was found unresponsive with blunt force trauma to the head around 8:50 p.m. in the 6900 block of West Archer Avenue. The circumstances surrounding the man's injuries are under investigation. chicagotribune.com

Olivette, MO: Suspects shoot, kill dog in jewelry store robbery
Police said no one was injured, but the owner's dog was shot and killed during the robbery. ksdk.com

Lufkin, TX: CVS Employee assaulted by woman during a disturbance

Salinas, CA: Man sentenced to 2 years for Pizza Hut and C-Store Armed Robberies

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