Viewing on a mobile device? click here for our mobile version







March 22, 2012 SUBSCRIBE

Our Mission--To Educate, Inform, and Instill a Sense of Community
            The LP industry's interactive daily e-mail column where YOU can make postings


University professor helps FBI crack $70 million cybercrime ring. The New Breed of Criminal - In a case that became known as Trident Breach, hackers stole $70 million from the payroll accounts of some 400 American companies and organizations Ė while never having to leave their homes in Eastern Europe. In 2008, the group of hackers compromised hundreds of thousands of Americans computers using a malicious computer "Trojan" bug. When computer users clicked on certain attachments and e-mail links, the bug, ZeuS, infected their computers. In the Trident Breach case, the hackers were able to get their hands on the cash by turning people into money mules. Starting in late 2008, they created around 3000 money mules by luring them into work-at-home jobs requiring "employees" to open bank accounts. "The first money mule activity we started seeing was people who would receive an email saying, ĎYou can get a work-at-home jobí and the work-at-home job would be something like transaction manager for an international company," said Prof. Gary Warner of the University of Alabama at Birmingham. Warner teaches a program that combines computer forensics and justice studies. Warner said when the banks started to get wise to the hackersí work-at-home schemes the hackers then recruited dozens of students, mainly from southern Russia, to be a new breed of money mule. Because the operation was so sophisticated, neither the hackers nor the mules counted on getting caught. But, using complex data mining techniques, Prof. Warner established links between ZeuS-infected computers and traced the origins of the mass infection to Ukraine. This resulted in many of the hackers and their mules being caught. As of publication, 18 are still at large. THIS IS A MUST READ FOR EVERY LP EXECUTIVE.  (Source

On the heels of the above case and the Michaels skimmers an entire cyber gang of 8 were busted in Russia who stole $4.5 million in the last quarter alone using an online banking Trojan as well. The criminals used the Caberb Trojan, aimed at wide range of Windows OSes -- Windows 2000 through Windows 7 -- and logged a wide variety of passwords and log-in data once it installed itself on a system. It was also able to manipulate traffic to serve phishing sites without users knowing they were visiting one. When the group obtained log-in credentials for online banking sites they were used for fraudulent transactions that were sent to a specially prepared account. The eight hackers mainly targeted electronic banking systems in Russia, Eastern Europe and the Netherlands. (Source

7 face charges in Virginia for multi-state $4.7 million jewelry theft ring that targeted traveling jewelry salesmen Prosecutors say the suspects based in Richmond stole more than $4.6 million in jewelry from traveling sales representatives in Virginia and at least six other states, including New York, New Jersey, North Carolina, Maryland, Tennessee and California. Court documents say the group has ties to South American theft groups that work in teams to steal jewelry, gems and precious metals from those who carry hundreds of thousands of dollars in merchandise at one time. (Source

Wal-Mart to pay $2.1 million for California overcharging at prices higher than posted in violation of '08 judgment ordering them to stop. The agreement came after an investigation that began in November 2010 found that Walmart stores in 11 counties made checkout scanning errors that left customers paying more than listed prices. The investigation was a follow-up to the 2008 judgment, where 164 stores in 30 counties were found to have overcharged customers. (Source

OSHA says new hazardous chemicals labels could prevent more than 40 deaths and 500 workplace injuries and illnesses from exposure. The Obama administration announced long-awaited regulations Tuesday to improve labels on hazardous chemicals and make them conform with international guidelines developed by the United Nations. (Source

CVS to shut its 25 Beauty360 stores and Beauty360 e-commerce site and focus on its core business. The first Beauty360 store opened in 2008 and kicked off a 25-store pilot that proved to be a tremendous learning experience for our organization. There have been many aspects of the Beauty360 concept that were positive. In the past four years, we have learned a great deal about our beauty customer through our experience with Beauty360 and plan to apply many of these learnings to future enhancements within our beauty department at CVS/pharmacy. (Source

Loss Prevention jobs are picking up as the time of year opens up new jobs for '12 We're seeing a slight uptick in LP jobs nationally but the pressure is still on most retailers to live with what you've got as most are still stretched. The "do more with less" mentality that took the nation by storm in '09 hasn't gone away and it won't. Corporate America expects it now and it has become not just an expression to get us thru the recession but now it is the corporate expectation and to even question it could mean corporate suicide.

We are victims too, Chinese CERT claims, and names Japan and U.S. as top cyberattackers of their country. The number of infected computers it had detected reached 8.9 million in 2011, up from 5 million a year earlier it said, many infected with data-stealing Trojans. Pointedly, the report blamed Japan for 22.8 percent of these attacks, just ahead of the US on 20.4 percent, with South Korea third on 7.1 percent. The other 50 percent of attacks were not broken down. (Source

Fujitsu claims they have a new system that combines two tecnology's that can identify phone scammers. Merging audio analysis software that tracks loudness and pitch of a potential victim with voice recognition to scan and count words used such as "debt" and "repayment" it identifies potential problem conversations. Its going into testing now. (Source

Devcon Security sees second CEO in 3 weeks with Protection 1's former CEO Richard Ginsburg being replaced by former Pinnacle Security's COO in 3 weeks. The news release Devcon issued announcing Hafenís appointment makes no mention of Ginsburg, who helped turn Protection 1 into one of the nationís largest security companies before leaving in 2010. Ginsburg issued the following statement n Wednesday ďA lot of people have reached out to me in the past few days regarding what I am doing. I was recently working under a consulting agreement as the CEO of Devcon Security. Last Tuesday, the 13th, I resigned from that engagement. As you would expect, I cannot elaborate on the reasons." Neither Devcon nor Golden Gate provided any information regarding Ginsburgís departure. (Source

Womenís Security Council to Honor 2012 Award Recipients The Womenís Security Council, a network of successful security professionals focused on promoting the advancement of women in the industry, will announce the winners of its first annual Women of the Year awards at its networking reception during the upcoming ISC West conference at the Sands Convention Center in Las Vegas. (Source

Hotel Theft Ring Stole 500 Credit Card Slips and created counterfeit credit cards. The ring leader was sentenced to 70 months in federal prison with his fellow gang members all getting 30 months in prison. (Source

Former President of Children's Clothing Company Carter's Inc., Indicted in Multi-Million Dollar Securities Fraud Cover-Up Joseph Pacifico, 62, of Atlanta, was indicted today by a federal grand jury for securities fraud, causing the filing of false financial statements and falsifying the books and records of a public company. Joseph Pacifico, the former number two executive at Carterís Inc., based in Atlanta, is accused of trying to hide a multi-million dollar fraud, lying to shareholders and committing additional crimes in the course of the attempted cover-up. Pacifico served as president of the Atlanta-based childrenís clothing company Carterís Inc. from 2004 until December 2009. Pacifico was a senior executive officer of the company, and the highest-ranking executive in the Carterís sales organization. He supervised Joseph Elles, who has also been indicted, the companyís head of wholesale sales, and the companyís wholesale sales accounts, including Kohlís department stores. The superseding indictment alleges that by at least April 2009 Pacifico was aware that Elles and others had been deliberately causing Carterís to falsely record in its accounting books millions of dollars in rebates that Elles had agreed to pay to Kohlís and other retailers. The superseding indictment alleges that from 2006-2009, at the end of each fiscal year and at the end of several fiscal quarters, Elles agreed to pay rebates to Kohlís and other retailers referred to as "margin support" or "accommodations." These rebates, which are common in the apparel industry, help compensate the retailer in certain circumstances where the retailer was unable to make its expected profit margins from the sale of Carterís goods. These rebates are expenses that reduce Carterís net sales revenue and profits. The securities fraud charges against Pacifico and Elles each carry a maximum sentence of 25 years in prison and a fine of up to $250,000. The charges against Pacifico and Elles for causing the filing of false financial statements with the SEC and the falsification of corporate books and records, in violation of the Securities Exchange Act of 1934, each carry a maximum sentence of 20 years in prison and a fine of $5 million. The wire and mail fraud charges against Elles alone each carry a maximum sentence of 20 years in prison and a fine of $250,000. In determining the actual sentence, the court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. (Source

Quarterly Same Store Sales Results

Dollar General up 6.5 with revenue up 20%
Toys R Us down domestically 1.7% and 2.7% internationally



Know about an event we should feature here?
Let us know.

2012 International Organization of Black Security Executives

Spring Conference
April 18-20
Chicago, IL

Click here
for more details.

2012 Retail
Loss Prevention

September 12, 2012
International Centre


Retail Fraud 2012

Largest Retail Fraud & LP conference in Europe

Novotel West, London

April 19, 2012

Click here for details


NRF 2011 ORC Survey

Executive Summary
Full Report 

Effective Crowd Management Guidelines

Education Awareness on Personal Safety
Full Report

Return Fraud Survey
Full Report



Watch for our article the day after each event!

Washington State Organized Retail Crime Alliance (WSORCA)

Annual Training Conference
October 18, 2012

To register visit:

Northern Michigan University, located in Michiganís incredible Upper Peninsula, offers one of the only baccalaureate loss prevention management programs in the United States. It is offered completely online and accepts up to 92 transfer credits. An affordable investment into a dynamic and growing profession.

Learn more here


LAAORCA Leaders -- Coming this week          USS -- March 26th          LAAORCA Session - Retail LP & AP; So, what do we do? -- March 27th - 30th

LAAORCA Speaker -
These episodes of opening speakers at the Los Angeles Area Organized Retail Crime Association's 3rd annual conference in Feb 2012 represent the 2nd largest city in the U.S. and are comprised of senior public officials that have been heavily involved in the ORC efforts throughout Southern California. Their speeches show how important the public and private partnerships are in combating this national problem. Their comments and predictions are extremely important to hear and shed light on how effective LAAORCA has been and how important LAAORCA's future role must be. Established in 2009, LAAORCA now stands as a perfect role model for all ORCA programs in North America and these episodes are being brought to you for just that purpose. Educating today for growth tomorrow. Make sure you watch them and if you're trying to form one in your city feel free to share them with your public officials and make sure you watch the LAAORCA Leaders episode as it gives you an inside look at how it got started and how it operates.

LAAORCA - Sheriff Leroy Baca, Los Angeles County Sheriff's Dept.

The LP News Network

Upcoming Release Dates!!

Coming this week!    LAAORCA Leaders - Four part series -
Joe LaRocca, Captain Bill Williams, Det. Kent Oda, George Torres
March 26th Universal Surveillance Systems -
Rod Holm and Greg Saputo
March 27th - 30th LAAORCA Session - Retail LP & AP; So, what do we do? -
Suni Shamapande

Share Your Thoughts                  Sponsor this Section of the Daily


Three ORC rings operating in Nashville "targeting specific stores and locations" and police are concerned they may be getting more violent. Police said they are organized and know what they want. Police told Channel 4 News one shoplifting ring, comprised of two men and two women, have targeted five T.J. Maxx stores in Middle Tennessee and two in Nashville. Another, consisting of four women, is operating in the Rivergate Mall area. Yet another group of shoplifters have hit a number of stores in the Nashville West shopping complex. At one store in the complex, it got violent when the clerk approached them. Undercover officers have fanned out at stores and shopping centers, but Metro Police are not giving details of the operation. They know what they want, they are highly organized and they may be violent. They've actually assaulted a police officer and pepper sprayed employees. (Source

ORC man and woman crime duo busted in Riverdale, N.J., shoplifting $4,000 in power tools from Home Depot and "preyed heavily" on other Home Depot stores in the region. A seven-month investigation into The Home Depot shoplifting spree reached a pinnacle on Friday when Police saw them and were able to bust them shoplifting. They're blamed for six other incidents at Home Depot and are suspected in other similar crimes in other cities. They focused on power tools and exiting the stores by fire exits. (Source

ORC ring of 4 women in High Point, N.C., busted that stole $30,000 to $50,000 from local stores Detectives said the recovered items have been traced to some local stores, including Walmart, Walgreens, CVS Pharmacy, Harris Teeter and Lowes Foods. Items recovered included large quantities of liquid laundry soap, razor blades, shampoo and small power tools. The investigation is ongoing and three women have been arrested and organized retail theft charges have been filed. The fourth is wanted. (Source

Excerpts from GAO-11-675:  Efforts to Combat Organized Retail Crime

The U.S. Government Accountability Office ORC report June 2011

Law Enforcement Agencies Collaborate with Retailers to Investigate ORC, and Federal Agencies Are Taking Steps to Improve ORC Case Tracking

Federal Efforts- continued from yesterday-

According to the FBI, it recently launched a bureau-wide program that is likely to increase the information available regarding ongoing investigations, including those related to ORC. As of February 2011, the FBI initiated a program across the bureau that is intended to enhance the level of detail of case-related information and improve data collection and reporting efforts. Specifically, personnel are required to use a collection Crime Problem Indicator (CPI) codes when entering data into the FBI's case management system. The CPI codes include a combination of mission-oriented threat priorities, as well as case-specific keywords and activity types. For example, ORC-related CPI codes include "organized retail theft" and "infant formula." According to FBI officials, CPI codes are intended to provide information to unit heads about the threats and crimes being investigated by their agents. If implemented as envisioned, this effort could allow the FBI to mine the case management system for all cases involving ORC. According to the unit chief responsible for overseeing the project, the FBI has put into place a collection of electronic controls, business rules, and operational guidance to help ensure that the codes entered are consistent, accurate, and complete. This official stated that the FBI routinely reviews all ongoing cases every 90 days; therefore, as of May 2011, all ongoing cases would include at least one CPI code. Information from this project generally may be useful to help identify FBI investigative priorities and provide management with additional data on resource utilizationóa practice consistent with internal control standards.

Further, information regarding ongoing ORC cases may serve to better inform ORC stakeholders and Members of Congress of the potential scope and impact of ORC relative to other major theft crimes, which may include identifying whether any additional federal involvement may be warranted. Given that ORC-related cases routinely involve multiple federal crimes and could be investigated by different FBI units, this effort may also be important to help ensure that the major theft program coordinator, or other applicable official, remains fully apprised of ORC investigations being conducted bureau-wide. As the program was only recently implemented and cases are still in the process of being reviewed and updated, it remains too early to tell if these efforts will result in the potential improvements identified.

Tomorrow- ICE's role

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
Share your ORC news and help the industry grow

WG Security Products' Sentinel Asset Protection System

Sentinel hitting the U.S. this year!

WG's Sentinel system is hitting the U.S. this year and offering a smart, affordable answer to your high-end merchandise control. A system within a store that gives you control before they leave your store. This new system has been used throughout Europe and in some of the busiest environments imaginable. It drives customer service up and brings theft to a screeching halt.


Advanced - Effective - Affordable

Sentinel is a very powerful system that blends into the retail dťcor and does not obstruct the entrances. Protection zone shaping means that items can be placed quite near the entrance without setting off false alarms. Sentinel tags will self-alarm when tampered with, and also when removed from the protection zone. Bringing the article back into the protection zone quiets the tag without having to take it back to the register for quieting. Sentinel will tie into external alarms, be they audible and/or visual, to alert store personnel that a tag has been detected at the exit. Sentinel is perfect for a wide variety of applications where assets need protection.

Watch the video below for a demonstration.

If you have a high-end high-theft merchandise area we can help you manage it even better.

Call or email Ed Wolfe, VP of Business Development at 1-408-241-8000

The Innovators in

Protection with Class

Share Your Thoughts

Job Opening




LP XBR Analyst Urban Outfitters, Inc. Philadelphia, PA Urban Outfitters, Inc.
Account Program Coordinator Vector Security Northern New Jersey Vector Security
Zone Asset Protection Mgr 7-Eleven, Inc Multiple 7-Eleven, Inc
Zone AP Specialist 7-Eleven, Inc Multiple 7-Eleven, Inc
Asset Protection Manager Walmart Multiple Walmart

Director of Loss Prevention



Downing & Downing

Director of Loss Prevention Confidential Southern Florida Downing & Downing
Director of Loss Prevention Confidential Dallas, TX Downing & Downing

National Account Sales Mgr


Chicago, IL

Downing & Downing

Asset Protection Manager

The Home Depot

Phoenix, AZ

The Home Depot

Asset Protection Manager The Home Depot Metro Northern  The Home Depot
Asset Protection Manager The Home Depot Salem, OR The Home Depot
Regional LP Director Confidential Los Angeles, CA Downing & Downing

Be the first "Employer of the Month"


Today's Daily Job Postings from the Net - Appearing Today Only

Job Opening




Loss Prevention Mgr Sears Johnson City, TN Sears Holdings Corp.
Dept Mgr Store LP & Safety Lowe's Trevose, PA Lowe's
Loss Prevention Mgr Macy's San Francisco, CA Macy's
Loss Prevention Mgr Macy's White Plains, NY Macy's
District LP Mgr Marshalls San Francisco, CA The TJX Companies, Inc.
District LP Mgr TJMaxx Marlton, NJ The TJX Companies, Inc.
Market LP Mgr Old Navy Orlando, FL Gap, Inc
District LP Mgr JC Penney Denver, CO JC Penney
Mgr, LP Inv & Sys Office Depot Boca Raton, FL Office Depot


John Murphy III was named Business Development Specialist for American Citadel Guard Inc.
Doreen Pavese MA, CFI was named U.S. Loss Prevention Manager for Swatch Group.
Karl Suhanyi was named Asset Protection Zone Manager for 7-Eleven Inc.

Post Your New Job or Promotion! Click Here


Why "Big Picture Only" Bosses Are the Worst There is a difference between management and leadership, but focusing on it is dangerous. As guru Warren Bennis famously put it, "Managers are people who do things right and leaders are people who do the right thing." ("Good Boss, Bad Boss" continued)

Is Your Leadership All Sizzle and No Steak? All sizzle and no steak is not a formula for leadership success. If your organization looks good, but lack substance, then I would submit this unfortunate condition is a reflection of your leadership team. Here are three observations to help you focus on the steak, not the sizzle.
(Get your grill out)
What to Do When You Don't Know What to Do Are you frustrated? We know we are. Most of us prepared hard for the future we expected, and yet things aren't working out as we had planned. All of this is extremely confusing and unsettling. (Act. Learn. Build. Repeat.)

How to Build a Great Team With Imperfect People We all know what makes a great team: Great people, right? That's true - as long as you define "great" correctly. That's a definition many business owners, and bosses in general, often get wrong.
(Who's in your band of misfits?)

Share your thoughts.


Are you going beyond your job appraisal? Every year, executives face that one moment in time when corporate America tells you how you've done and most live within its boundaries all year long. Exceeding at your job is, by definition, going beyond it and the only way to move up is by doing just that. With increased job scopes and responsibilities, it may seem almost impossible to do except for those who believe anything is possible. Are you going beyond?

Just a Thought,
Gus Downing


Post Your Tip or Advice! Click Here

SUBSCRIBESU  update account /      change e-mail /      /     FEEDBACK    /     /     ADVERTISE WITH THE DAILY