Facial Recognition & AI Helping Retailers Fight Crime Surge

Retailers Globally Lean Into Facial Recognition to Fight Store Crime
'We think facial recognition has the potential to help by identifying repeat offenders'

Foodstuffs store facial recognition trial 'will cut down on crime'
One of New Zealand's biggest grocers will scan customers' faces in stores to combat shoplifting and cut down on crime. Foodstuffs North Island is using facial recognition technology (FRT) in a six month trial across 25 stores as part of crime prevention measures to help keep its staff and customers safe.

Their latest retail crime statistics from around 300-plus stores show there were 4,719 separate offences recorded in the October-December 2023 quarter - an increase of 34% on the previous period. They say that FRT will help identify repeat offenders and reduce harmful behaviour in store.

Foodstuffs North Island Chief Executive, Chris Quin said:

"Everyone has the right to a safe working environment and a safe place to buy their groceries, this trial of FR in our stores is part of our commitment to keeping our teams and customers safe. ... We have a moral and legal duty to make our stores as safe as possible for our teams and customers, and we think facial recognition has the potential to help by identifying repeat offenders when they try to come back into our stores."

The system works by matching, in real time, the faces of people who enter a store against a store's record of offenders and accomplices. If the system reaches a "90% facial match" threshold, two members of staff will also need to agree before acting upon the information. "Verified repeat offenders" will then be approached, Foodstuffs say.

"We've been very careful about ensuring this trial gets the balance right between providing a safe environment for our people and customers and being respectful of everyone's privacy." stuff.co.nz  1news.co.nz


Using AI to Fight a 44% Increase in Retail Crime
UK: Co-op deploys AI and secure tills amid rise in retail crime

Staff encounter multiple theft attempts weekly, with thieves targeting alcohol, cigarettes and lottery cards.

British co-operative retailer Co-op is re-inforcing its supermarket security by installing 200 secure till kiosks, locked cabinets for spirits and AI (artificial intelligence) technology to supervise self-checkouts.

The move follows a 44% increase in retail crime, equating to around 1,000 incidents daily. The UK-based grocery retailer operates a network of 2,400 stores. It reported detaining 3,361 individuals in 2023 for offences including burglary and harassment.

Co-op has already invested £200m in security measures such as additional guards and undercover teams, but cases of shoplifting have increased by 48%, reaching 298,000 occurrences, The Guardian has reported.

In some locations, staff encounter multiple theft attempts weekly, with thieves targeting alcohol, cigarettes and lottery cards.

Co-op food managing director Matt Hood was quoted as saying: "This is not a few opportunistic shoplifters becoming more prolific. This is organised crime and looting. "People who are really organised can only be stopped by custodial sentences and the police. We need it to have consequences."

The retailer believes that with serious incident prioritisation and police collaboration, the issue can be addressed effectively.  retail-insight-network.com


California Gov. is Sending in More Prosecutors Amid Crime Crackdown
This week, Gov. Newsom also announced he was deploying 120 state troopers to Oakland

Gov. Newsom sending state attorneys to help prosecute crimes in Alameda County
Days after he announced he would be sending state troopers in to help Oakland police make arrests, Gov. Gavin Newsom said he is sending prosecutors from the state to help prosecute "serious and complex" cases in Alameda County amid a crime surge.

Newsom and Attorney General Rob Bonta made a joint announcement on Thursday, describing this development as a "partnership" with Alameda County District Attorney Pamela Price to increase the capacity to prosecute suspects involved in violent crimes, serious drug-related crimes, and property crimes - including retail theft and auto burglary - in Oakland and the East Bay.

Price has pitched herself as a progressive with a particular philosophy of holding people accountable while also wanting to end racial disparity and mass incarceration of Black and Brown people.

But at least publicly, she seemed to appreciate the outside prosecutorial help, even though her administration, and the past administration, has never complained that they've been short of attorneys.

"I welcome the support from the Governor in this fight against organized retail crime and the scourge of fentanyl in our community," Alameda County District Attorney Pamela Price said in a statement distributed by Newsom's office.

The California Department of Justice has independent prosecutorial authority and, as part of this partnership, is expected to prosecute big cases targeting major criminal networks in Oakland and the East Bay, Newsom's office said. Lawyers will be sent from the California National Guard and the state's Department of Justice.

It's Newsom's latest tough-on-crime approach. This week, he announced the deployment of 120 CHP officers to the East Bay as part of a law enforcement surge operation, targeting auto theft, cargo theft, retail crime, violent crime, and high-visibility traffic enforcement. With so many more officers, there are bound to be more arrests, and more need to prosecute them, experts pointed out.  ktvu.com

   Click here to read the D&D Daily's initial coverage of Newsom's troop deployment


Chicago's Criminal Gangs Recruiting Migrants for Crime Sprees
Chicagoland criminals expanding enterprises by training migrants for suburban crime sprees

'And the police officers are saying, "Just forget it. Why bother? Why bother even making the arrest?"' retired chief says

Criminal enterprises in the Chicago area are benefiting from the migrant crisis as they recruit illegal immigrants to carry out crimes with little legal repercussions, a former Illinois police chief says.

Chicago and its surrounding areas have been the target of repeated migrant crimes, including quiet suburban malls seeing groups of people who illegally entered the U.S. ripping off department stores such as Macy's.

Since August 2022, Chicago has seen an estimated 35,000 migrants flood the city after they illegally crossed the southern border in Texas, which bussed or flew them north.

The former police chief said that before the migrant crisis exploded in northern cities, Chicago was already dealing with 2020's crime wave that seeped into suburban towns.

"Individuals from the city, gang members, and even gang enterprises, would send individuals out to the suburbs to commit crimes at the suburban malls or residential areas for burglaries. And they would always flee back east to Chicago. That was a pattern that happened every single week," Weitzel said of crime issues pre-migrant crisis.

Now, the pool of criminals has seemingly expanded as some migrants land in the city and link up with criminals, gangs and criminal businesses that show them the ropes on how and where to commit crime, Weitzel said.

Migrants are dropped off at landing zones and "immediately targeted by these organizations to go out and commit crime," Weitzel said. foxnews.com


Deep Dive Into ORC Rings in Florida
How organized retail theft rings operate in Central Florida
The thieves operate in groups, stealing thousands of dollars worth of items like expensive power tools, designer clothes and beauty products-- often in broad daylight. But what cameras don't always show is what comes next.

Former Melbourne investigator Mark Jennewein says it first seemed like individual shoplifting cases. Then, investigators were able to connect the dots-- to the suspects, the items, and then the e-commerce sites like Facebook Marketplace. They sell it at absurdly low prices.

Detective Christopher Thomas says these rings often start locally, and the longer they operate, the larger their footprint becomes. "All of a sudden, we're crossing borders into Georgia, and then up to east coast and over to Texas," Thomas said.

The Melbourne-based ring eventually stretched from Kentucky to Panama.

The investigators say there's larger scale groups, some based overseas that travel to steal merchandise from Central Florida stores.

Groups often recruit homeless people or juveniles to go into stores to shoplift and turn it over to the group for fast cash.

Theft rings in Florida have also been connected to other crimes like money laundering and drug trafficking.

These rings are of even more concern because of all the money retailers have lost in the last couple years. Florida alone lost over $5 billion in retail theft last year. Nationwide, the losses added up to $112 billion.

Researchers project retail theft could cost retailers over $140 billion next year. wftv.com


D.C. Lawmakers Seek to Cut Felony Theft Threshold in Half
Business owners react to DC bill that makes retail theft over $500 a felony
In the age of smash-and-grabs and flash mob robberies across D.C., local business owners are divided on whether the Secure D.C. omnibus legislative package will help them.

One aspect of the legislation would make retail theft a felony at $500 instead of $1,000 as it is now. Peter Wood, the Advisory Neighborhood Commissioner chairman for the Adams Morgan area, feels that change could help.

"I hope it succeeds," he told 7News. "I'm just skeptical that that in and of itself will be the thing that makes circumstances better." Ifat Pridan, who owns Lili The First boutique in Georgetown, doesn't think the increased penalty will help. "Do you think the thieves are coming here and saying: 'Okay, just a minute let me think, let me keep it under $500?'," Pridan said.

She would rather have more police officers patrolling retail areas. "We need to feel safer here," Pridan said. "And if we feel safer here, most probably the thieves will not feel comfortable coming here."

The $500 threshold was approved in Tuesday's vote after Councilmember Janeese Lewis George withdrew her initial amendment.

D.C. Deputy Mayor for Public Safety and Justice Lindsey Appiah is hoping whatever is ultimately approved in the coming weeks gets closer to the mayor's ACT Now proposal from last year, which calls for the felony threshold to be ten items at $250 aggregated due to an increase in thefts of household goods and more inexpensive items. wjla.com


Rising crime is turning a once thriving city into a 'ghost town'
As violent crime continues to rise in Oakland, California, businesses are forced to close and once thriving ares are now empty.

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Red Sea Attacks Impacting Retailers
Should US Retail Worry Much About the Red Sea Shipping Crisis?
Attacks on vessels by Yemen's Houthi rebels in the Red Sea have disrupted international trade, threatening price hikes and shipment delays. Many importers are revisiting coping strategies tapped during the pandemic. The Suez Canal is the main route for shipping from Asia to Europe and the East Coast of North America.

In December, IKEA became the first major retailer to indicate it was exploring other options to secure products after major shipping companies stopped sending vessels through the Suez Canal in response to the attacks by militants protesting against the Israel-Gaza war that started in October.

Scores of container ships at the time began rerouting around southern Africa to avoid the area, adding "up to 14 extra days to a ship's journey" from Asia to Europe.

"The situation in the Suez Canal will result in delays and may cause availability constraints for certain IKEA products," IKEA said.

Last week, Adidas CEO Bjørn Gulden said spot freight rates "are exploding again" due to disruptions in the Red Sea.

Daniel Ervér, H&M's new CEO, told Reuters that the fast-fashion retailer is reviewing what it needs to transport via air freight, which is more costly. H&M is also continuing to invest in nearshoring in Europe and Latin America as well as buying more in-season to mitigate the disruption.

Some cargo is also being shifted to arrive in West Coast ports to avoid Red Sea disruption, then shipped to the East Coast via rail. Air cargo is being used by some retailers for more sensitive and timely shipments, Gold noted, while earlier shipments are being encouraged. retailwire.com

   NRF: Imports rise year-over-year in January despite Red Sea attacks


California's Workplace Safety Push
California Labor Chair Wants Audit of Workplace Safety Watchdog
The chair of the California Assembly's Labor and Employment Committee says she will seek an audit of the state's occupational health and safety authority following a hearing where farmworkers described regulators as understaffed, unresponsive, and out of touch.

The hearing Wednesday underscored how California's reputation for progressive labor laws doesn't necessarily translate to protections for workers-many of them immigrants-in the industry behind some of the state's most iconic products, including its famed wine and the bulk of the world's almonds.

Acting Cal/OSHA chief Debra Lee responded that she was "very concerned" to hear inspectors might be informing employers of upcoming inspections. She also said that her agency plans to start a unit focused on safety in agricultural work, with a hotline in multiple languages for workers and advocates to report violations.

Last year during "hot labor summer," unions, worker advocates and their supporters in the Legislature pushed, often successfully, for wage increases and more benefits. This year, they're focusing more on enforcing worker protections.

That was the message from an Assembly Labor Committee hearing on Wednesday, where farmworkers and their advocates complained that Cal/OSHA, the state's workplace safety agency, isn't doing the job, explains CalMatters' Jeanne Kuang. calmatters.org news.bloomberglaw.com latimes.com


'Just Walk Out' Clone Rolled Out at Aldi
Aldi is the latest grocery store to use a rival version of Amazon's Just Walk Out tech

The technology, from startup Grabango, has been used at a Chicago-area Aldi store since November.

Aldi is the latest retailer to add in-store technology that functions like Amazon's Just Walk Out checkout system.

The discount grocer reportedly installed a computer vision system from startup Grabango in a store in the Chicago suburb of Aurora, Illinois, near Aldi's US headquarters, according to Grocery Dive. The system has been operational at the supermarket since November, a Grabango representative at the store told Grocery Dive.

Like Amazon's Just Walk Out, Grabango's technology allows customers to download an app on their phone and add their credit card information. From there, they can shop around the store as cameras keep track of what they pick up. businessinsider.com


Shein to expand U.S. footprint with new supply chain office
A global fast fashion retailer seeks to support its rapidly growing U.S. business. The nearly 10,000-sq.-ft. office space at Bellevue's Key Center will serve as a hub for the company's U.S. fulfillment and logistics, as it attempts localize and support speedier delivery times for American customers.

CFO shakeup at Costco, Kroger

Foot Locker COO names 4 skills crucial to supply chain leaders

Ransomware Made a Massive Comeback in 2023
Ransomware Payments Exceed $1 Billion in 2023, Hitting Record High After 2022 Decline
2023 marks a major comeback for ransomware, with record-breaking payments and a substantial increase in the scope and complexity of attacks - a significant reversal from the decline observed in 2022, which we forewarned in our Mid-Year Crime Update.

Ransomware payments in 2023 surpassed the $1 billion mark, the highest number ever observed. Although 2022 saw a decline in ransomware payment volume, the overall trend line from 2019 to 2023 indicates that ransomware is an escalating problem. Keep in mind that this number does not capture the economic impact of productivity loss and repair costs associated with attacks. This is evident in cases like the ALPHV-BlackCat and Scattered Spider's bold targeting of MGM resorts. While MGM did not pay the ransom, it estimates damages cost the business over $100 million.

The ransomware landscape is not only prolific but continually expanding, making it challenging to monitor every incident or trace all ransom payments made in cryptocurrencies. It is important to recognize that our figures are conservative estimates, likely to increase as new ransomware addresses are discovered over time. For instance, our initial reporting for 2022 in last year's crime report showed $457 million in ransoms, but this figure has since been revised upward by 24.1%. chainalysis.com


'Threat actors are getting past the first line of defense'
IoT Networks Face Advancing Adversaries, Bug Barrage

Cyberattacks on critical infrastructure targeting IoT and OS networks are increasing in sophistication, while ICS vulnerabilities surge, new data shows.

New telemetry data from Internet of Things and operational technology networks brings into sharp focus the risks associated with IoT and OT installations: These networks are subject to highly sophisticated attacks, while in tandem, the volume of vulnerabilities associated with each explodes. And consequently, IoT and OT networks pose even greater risks than generally acknowledged.

Data from the last half of 2023 analyzed by Nozomi Networks showed the largest portion of threats to IoT and OT networks were network anomalies and attacks, with sophisticated tactics like TCP flood and network scans being most popular, the company said in a new report.

"These trends should serve as a warning that attackers are adopting more sophisticated methods to directly target critical infrastructure, and could be indicative of rising global hostilities," Chris Grove, director of cybersecurity strategy at Nozomi Networks, said in a statement about the new data. "The significant uptick in anomalies could mean that the threat actors are getting past the first line of defense while penetrating deeper than many would have initially believed, which would require a high level of sophistication."

Meanwhile, tried-and-true IoT and OT cyberattack approaches like access control and authorization threats, including brute force and multiple login attacks, were up too - by 123%.

A bit of good news: There was a 12% dip in daily cyberattacks against IoT devices during the last half of 2023. darkreading.com


U.S. Under Attack By Chinese Cyberattackers
China's Cyberattackers Maneuver to Disrupt US Critical Infrastructure

Volt Typhoon is positioning itself to physically disrupt and cripple US critical infrastructure by gaining access to operational technology networks in the energy, water, communications, and transportation sectors, according to CISA.

The US Cybersecurity and Infrastructure Security Agency (CISA) has issued a report detailing how the China-backed Volt Typhoon advanced persistent threat (APT) is consistently targeting highly sensitive critical infrastructure, with new information on the cyberattackers' pivot to operational technology (OT) networks once they've burrowed inside.

Given that the OT network is responsible for the physical functions of industrial control systems (ICS) and supervisory control and data acquisition (SCADA) equipment, the findings clearly corroborate the ongoing suspicion that Chinese hackers are looking to be able to disrupt critical physical operations in energy, water utilities, communications, and transportation, presumably to cause panic and discord in the event of a kinetic conflagration between the US and China.

"Volt Typhoon actors are pre-positioning themselves on IT networks to enable lateral movement to OT assets to disrupt functions," according to CISA's Volt Typhoon advisory. [We] "are concerned about the potential for these actors to use their network access for disruptive effects in the event of potential geopolitical tensions and/or military conflicts."  darkreading.com


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