When violent customers threaten retailers at home

How a retailer's face matching led to CEO stalker ID, advance warning

Angry, violent customers abuse, curse, and threaten retail employees every day. Sometimes they follow through on those threats: Criminals killed 582 retail customers, employees, and security personnel last year, according to industry publication D&D Daily. Retail executives face different kinds of threats from angry, violent customers. Sometimes, trouble even follows the CEO all the way home.

In response to threats both in-store and out, retailers are quickly adopting technologies, including face matching, that offer advance warning when seconds count. Not all violence is preventable, but retailers can increase their chances of stopping attacks before they start. Here's how one retailer's fast, proactive reaction to a real-life threat led to vital evidence and enhanced situational awareness at work and at home.

Here's how it started: An angry man called the retailer's customer service hotline. The caller gave the rep his name and phone number, and he complained of in-store ADA violations. Just before ending the call, the man told the rep: "I am sitting in front of [CEO's] home, and I will take care of this myself." The caller had the CEO's correct home address. Click.

When police responded to the CEO's home, they found no one outside, but they and the retailer asset protection team treated the threat as credible. They worked together to learn more.

The client AP team provided the name given by the hotline caller. The police ran the name and found an old arrest photo. They confirmed the man pictured had a long history of violence and threats, plus open arrest warrants.

Next, the retailer's AP team put the arrest photo into their custom FaceFirst system, then ran a search. Although the arrest photo had been taken 15 years before, the system instantly matched the image with a man who had been in the retailer's stores within the prior 30 days. That search yielded a better, current photo of the man presumed to be the caller. Investigators developed more evidence that led to the retailer securing an order of protection for the man. So far, the man has not returned to the retailer's stores. If he does return, the retailer's FaceFirst system is set to provide real-time notification and enable a fast response by the retailer and local law enforcement.

Calculate the risks of being caught unaware when a known offender enters your store. Or the risks of not having the tools to investigate and validate direct threats against you. If you knew there was a proven solution to keep your valued customers, associates, and executive team safer from violent offenders, would you implement it? The real risk is answering no. FaceFirst's solution is fast, accurate, and scalable-take action today at facefirst.com.
 

Retail's Big City Exodus Making Headlines Across the Country
'Highly organized' criminals are pushing stores to close in big cities across the country as the industry waits for the INFORM Consumers Act to take effect

Retailers Are Abandoning U.S. Cities Due to Epidemic of Retail Theft, Violence

A number of American retailers are grappling with a surge in retail theft, prompting some retailers to abandon locations altogether, leaving communities under served.

Last December, Walmart CEO Doug McMillon warned that theft has been surging and if it didn't slow down, stores would have to close. Subsequently the retailer decided to shut down 17 of its stores across nine states and most recently decided to close half of its Chicago locations because they were losing tens of millions each year.

Target recently revealed that it lost $400 million in profits last November because of organized gangs and shoplifters stealing merchandise and the company's CFO is forecasting retail theft in its stores to soar to $600 million by year's end. The company has announced it will be closing four stores in three cities in the coming months.

Macy's, a staple in American malls, plans to close 125 locations over the next three years as organized crime soars and profits plummet. Its CEO Jeff Gennette says the company is experiencing a rise in theft across all its stores. "These are crime levels we haven't seen before," he said according to the Daily Mail.

Corrie Barry, Best Buy's CEO, says gangs of thieves are ransacking stores, stealing high-value products to resell at discounted prices. Best Buy intends to close 20 "large format" stores this year and an additional 20 stores each year going forward.

'Highly organized, structured criminal networks'

Jake Stauch, the director of product for Verkada, a security company, told Business Insider that some of the crime being experienced is by "highly organized, structured criminal networks, often involved in other crimes ... Human trafficking is one, where in many instances they'll work with individuals bringing immigrants over the border, and in order to pay their fees to get across the border, they'll utilize them as boosters to steal merchandise."

The crimes are putting retail workers at significant risk, with some losing their lives.

E-commerce partially to blame

Business leaders are pointing the finger at the rise of e-commerce for partially fueling the epidemic. In many cases, stolen goods wind up for sale on e-commerce platforms, mixed in with legitimate third-party sellers.
 
INFORM Consumers Act

A bill, dubbed the INFORM Consumers Act, passed the U.S. House of Representatives in November, 2022 and is slated to take effect on June 27, this year. The act targets high-volume third-party sellers that have conducted 200 or more discrete sales within a 12-month period amounting to $5,000 or more. visiontimes.com


NYC Chain Store Theft Surged 91% Between 2019 & 2022
NYC Drug Store Larceny Surged 254% Between 2014 & 2022
Study: Shoplifting and Other Types of Petit Larceny in New York City
Increasing incidents of shoplifting and other forms of "petit larceny" are observable in the most recent crime data released by police in New York City. Across all types of petit larceny or theft of items worth less than $1000, crime incidents grew 50 percent after 2006 and 29 percent since 2019.

Between 2019 and 2022, petit larceny grew 53 percent at major commercial retailers (department stores, chain stores, etc.), from fewer than 35,000 to nearly 55,000 incidents annually. Thefts in other settings grew after 2019 as well. Petit larceny on neighborhood streets and sidewalks climbed 27 percent. Larcenies from private homes and residences jumped 16 percent.

Two different trends were visible in recent years. Some types of petit larceny have been generally in decline since 2006. Thefts from commercial buildings, parking lots, gas stations, and smaller businesses had been declining before exhibiting a surge after 2019. The same pattern was seen in petit larceny from neighborhood streets and other public areas (e.g., schools, parks, and playgrounds).

In major commercial locations as well as private homes, however, petit larceny incidents generally increased between 2006 and 2019. Those trends diverged in 2020. Thefts from private homes and residences stabilized after 2020, perhaps due to school and work disruptions. Thefts from major retailers, on the other hand, grew sharply and significantly. Drug stores, in particular, experienced twice as many thefts in 2022 compared with 2019, rising from 6,031 to 12,343 incidents. Thefts from chain stores increased 91 percent over the same period, surging from 11,673 to 22,250. johnjayrec.nyc

Will New Chicago Progressive Mayor's Soft-on-Crime Policies Fuel 'Summer of Hell'?
Next Chicago mayor excuses rioters: Expect more victims of violence
Many are under the false impression that regular discussion of the violent crime plaguing America's greatest cities (like New York, Chicago, Los Angeles) by media outlets like Fox News and The New York Post - and congressional leaders like Jim Jordan (R-Ohio) and Burgess Owens (R-UT) - is political. It isn't.

The escalating soft-on-crime policies we've seen from progressives across the country have paved the way for genuine lawlessness. Crimes - in many cities - simply aren't punished anymore.

Manhattan District Attorney Alvin Bragg's "Day One" memo - in which he instructed his subordinates to not prosecute low-level crimes and only jail (pretrial detention) the most serious offenders - is a perfect example of the kind of policies quickly sinking this country into chaos.

When there is little, or no, fear of criminal repercussions, "low level" crimes like theft, vandalism, arson and assault become much easier to commit.

Chicago Mayor-elect Brandon Johnson - another cut from the same cloth - had this to say about the downtown riot: "In no way do I condone the destructive activity we saw in the Loop and lakefront this weekend. It is unacceptable and has no place in our city.

"However, it is not constructive to demonize youth who have otherwise been starved of opportunities in their own communities." Two more teens were shot, and the incoming mayor excuses violence. His implication? These kids didn't have a choice. They're victims of their environment.

The rioters aren't victims. They're lawbreakers. The sooner men like Brandon Johnson and Alvin Bragg understand - or admit - that, the sooner the real victims will get their deserved safety and justice.

With him pacifying the riots, Chicago is likely to have a summer of hell with an empty-suit mayor who will allow criminals to control the streets. nypost.com


Crime Has Walmart Backing Away From 2020 Pledge to Expand in Chicago
Op-Ed: Walmart will close more stores if rampant theft continues
Walmart has been the largest company in the world by revenue since 2014, but they are closing 20 stores this year. Most Americans shop Walmart at least occasionally. For many it's their go-to destination weekly for groceries, electronics and much more.

Walmart plans to close half of its stores in Chicago. This is a reversal of the retail giant's high-profile commitment in 2020 to expand in the city as part of its corporate racial justice initiative.

Walmart recently announced that it will close four poor-performing stores out of the eight it operates in Chicago. Three of the locations are located in Chicago's South and West Side neighborhoods, which are predominantly minority and have long struggled with grocery and retail access. One of the stores is in Chicago's North Side, which is predominantly White and more affluent.

The announcement comes after Walmart highlighted its efforts in Chicago as a "critical part" of its broader $100 million pledge to advancing racial equity in 2020. (CNN)

Walmart said the closings are due to a lack of profits, theft and security issues.

Walmart is not the U.S. government. They can't keep pumping money into a store or city that is losing millions of dollars every year. Walmart is a business that has become the largest company in the world by making a profit. Communities who steal more from their Walmart or any store, than they pay for at the register can most likely expect to see their store closed. cerescourier.com


Could Biometrics Be a Possible Solution to Gun Violence?
Incorporating facial recognition technology could be a game-changer in curbing violence

'Smart Gun' introduced with fingerprint, facial recognition technology
Colorado company Biofire Technologies has unveiled a new "Smart Gun;" a gun that can only be fired after quickly verifying the shooter's identity with fingerprint and facial recognition technology. The new weapon was launched Thursday and is the world's first of its kind.

The company said they believe technology can assist in reducing "accidents, criminal misuse, suicides, and other tragic outcomes." This comes at a time when the U.S. grapples with the recent mass shootings that have left dozens dead throughout the country.

"Biofire's proprietary Guardian Biometric Engine uses integrated fingerprint and 3D facial recognition systems to verify your identity in any situation. Instantly unlock your firearm just by picking it up - no codes, buttons, or gadgets required," Biofire said in a statement.

The weapon reportedly works even if the user is wearing gloves or a face covering.

Biofire said they created the Smart Gun so that owners "never have to choose between safe storage and instant access." The firearm will be "instantly accessible using lighting-fast biometrics" and functions like any other gun, but designed for home defense. ktvu.com


Warehouse Theft Surges 40% Over the Past 2 Years
Warehouse Theft Is Rising. How to Reduce Potential Threats With Physical Security
Physical security is as important as ever with the continuously growing threats that plague warehouses, distribution centers, and fufillment centers. Stats indicate that the incidence of warehouse theft has increased worldwide over the past two years with over 40% of respondents to a national survey saying that their warehouse has experienced theft in 2020.

It's critical to reduce potential threats with preemptive security measures that will actively engage your facility.

Jamie Rutherford, the director of sales and supply chain at Vector Security Networks focuses on familiarizing logistics companies with the security company's new Supply Chain division at the ISCPO 2023 Conference.

Access control systems use advanced technology such as biometric scanners, card readers, and keyless entry to restrict access to sensitive areas of business premises. This helps to improve security, prevent theft, or damage, and protect valuable assets.

Vector Security Network provides high-quality video surveillance systems that can be monitored remotely. These systems use advanced analytics to detect any suspicious behavior or activities at fulfilment centers or warehouses, helping to deter criminal activity and prevent loss or damage throughout the supply chain.

Supply Chain at Vector Security Network also provides fire detection solutions that can detect smoke, heat, and other signs of fire. marketscale.com


Setting the record straight on stop-and-frisk in Philadelphia
A long-running debate about stop-and-frisk has yet again become a campaign issue in the Philadelphia mayor's race, with several top contenders expressing more openness to the controversial tactic than the current administration.

What is allowed right now in Philadelphia?

So-called "constitutional stop-and-frisk" - often referred to by police as "pedestrian stops" - is a legally authorized method in which police can stop and pat down a person for guns, drugs, and the like.

Stopping a person is considered within the bounds of the constitution if the officer has "reasonable suspicion" the person may be involved in criminal activity - a lower standard than the probable cause required for an arrest.

Frisking a person requires the officer to believe that person may be armed or is otherwise "presently dangerous." A person merely matching the description of a report to police for a "person with a gun" does not, in itself, meet the legal standard. But if police observe other evidence like a "bulge" in a person's waistband that could indicate the presence of a firearm, they could then initiate a frisk.

Under Mayor Kenney's administration, the number of pedestrian stops in the city plummeted to fewer than 10,000 last year, according to police statistics.

Who came up with that standard?

The Supreme Court. The legal standard for stop-and-frisk was decided in the 1968 case Terry v. Ohio, a landmark case that allowed for the use of stop-and-frisk in America.  inquirer.com


LPRC Featured in CBS News Report
CBS News Video: Outsmarting shoplifters
It is estimated that tens of billions of dollars' worth of merchandise is lost to shoplifters each year. And as shoplifters (working individually or as part of organized retail crime gangs) become more brazen, store owners are looking for new ways to stop them.

Correspondent Rita Braver visits the Loss Prevention Research Council, which is testing new ways for retailers to protect their goods from being pilfered. cbsnews.com


Homicides in Columbus, OH., Up 66% as of 4/20

Mass shootings in Louisville prompt calls for solutions to combat gun violence

Momentum Swings Back in Favor of Facial Recognition Tech
Cities are backing away from bans & embracing thoughtful, measured use of facial recognition

The politics of facial recognition in the US still swings like pendulum
U.S. privacy advocates scored one of their few recent legislative victories, pushing through a near-total ban on government use of facial recognition in the largest city in the state of Alaska.

"Facial recognition technology doesn't work," said Anchorage Assembly member Joey Sweet, who voted this week to effectively ban facial recognition algorithms by any government agency in the state's biggest city. And it infringes on an individual's right to privacy, he says.

Celebrations might be a little muted, however, because some legislative bodies in the United States recently have neutered bans soon after they were written into law. In fact, in California, even some key lawmakers who had favored heavy restrictions on police use of biometric surveillance have softened their stances considerably in recent weeks.

Sweet and the rest of the Anchorage Assembly voted 10-1 to "ban the use, acquisition or access of facial recognition" systems and services by city agencies, according to an Assembly statement. Some exceptions were created.

Meanwhile, some lawmakers in California's statehouse want to mark the end of a temporary, partial facial recognition moratorium in the stage with permissions. A three-year moratorium on facial recognition by state and local police ended in January.

It was seen as a model for officials who have not taken steps that privacy advocates recommend before algorithms are used with human intervention or not. It was also co-sponsored by Democratic Assemblyman Phil Ting, the same lawmaker pushing the new enabling bill. biometricupdate.com
 

The most popular grocery stores in the U.S. Walmart is the most popular grocery store chain nationwide, with 25.2% of the market share as of last year. Costco and Kroger are the second- and third-most-popular grocers, with 7.1% and 5.6% of the market share, respectively. axios.com

Whole Foods plans to lay off several hundred corporate employees
Amazon-owned Whole Foods is cutting several hundred corporate jobs as part of a planned reorganization, the company informed employees on Thursday.

Can Loyalty Programs Save Struggling Retailers From Bankruptcy?
In the pandemic era, loyalty programs proved to be an effective strategy to retain customers even while maintaining physical distance.

Ikea bets on massive $2.2B U.S. expansion that includes 17 stores

Grocers Launch Convenience Store Concepts Despite Challenges in the Space

Batteries Plus on track for more expansion with 40 new stores in 2023


Quarterly Results

REI FY 2022 sales up 2.9%
 

Senior LP & AP Jobs Market

Director, AP job posted for Saddle Creek Logistics Services in Lakeland, FL
Responsible for leading, training, and analyzing the asset protection strategy for Saddle Creek Logistics Services. This role is also responsible for the continuous review, development of recommendations and implementation of approved operational procedures and protocols for maintaining the highest standard of asset protection/security for our associates, customers, commodities and the public. sclogistics.wd5.myworkdayjobs.com

Manager of Supply Chain, Asset Protection job posted for Burlington Stores in San Bernardino, CA
The Manager of Supply Chain Asset Protection supports both shortage and overall company objectives by managing Asset Protection activities in Burlington's supply chain network. This role works closely with field AP teams and the Investigations team to identify and resolve theft cases that originate out of Burlington DCs and Pool Point locations across the network. burlingtonstores.jobs
 

Restaurant Industry Under Attack by Ransomware Hackers
Four attacked this year so far

NCR recovering from ransomware attack - Reportedly by the 'BlackCat' Gang
The payments processor hasn't disclosed how many customers were potentially impacted by a ransomware attack that began affecting systems last week

NCR, a payments processor that offers point-of-sale systems to restaurants and retailers, digital banking and ATM services, is still responding to and recovering from a ransomware attack that began impacting systems on April 12.

The cyberattack caused a data center outage that is impacting some functionality in Aloha, a POS used by restaurants, and Counterpoint, which integrates front- and back-office management systems for retailers, NCR said in an incident report update Monday. The company first publicly disclosed it was hit by a ransomware attack on April 15.

"At this time, our ongoing investigation also indicates that no customer systems or networks are involved," the company said in its incident report. "None of our ATM, digital banking, payments or other retail products are processed at this data center."

The attack against NCR follows ransomware attacks against Yum Brands and Five Guys in January.

In-restaurant purchases are still being processed, but other capabilities and business processes remain down, the company said. While restoration efforts remain underway, NCR said it has established local workarounds to support impacted customers' operations.

NCR hasn't identified the threat actor behind the attack but the ransomware group BlackCat, also known as AlphV, claimed responsibility on its leak site, according to independent security researcher Dominic Alvieri.

"It isn't known how the attacker got initial access," Morris said via email. The data center impacted by the attack serves many POS systems in the hospitality industry, and the impact is likely widespread, Morris said. paymentsdive.com


The Growing Costs of Cyberattacks Have Insurers Thinking Twice
Insurers Wary of Longer-Term Costs of Cyberattacks

Claims from a single incident can stretch on for years in class-action lawsuits and investigations. Insurers are still coming to grips with how far-reaching the damage can be

Privacy laws and regulatory action extend the cost of incidents for years beyond an attack, insurers say, which could result in higher costs and stiffer policy requirements for companies.

Claims associated with cyberattacks often include the cost of incident response, forensic investigations and replacing hardware and software, which many cyber insurance policies are designed to cover.

But litigation over data breaches and downtime can be expensive for companies, and what their insurance policies cover isn't always clear.

Some insurers, for instance, will cover the cost of class-action lawsuits and regulatory investigations stemming from data breaches up to a limit; others might fund the costs of defending cases, but not any ensuing penalties. Other lines of coverage outside of cyber-such as directors and officers policies-provide more extensive protection against lawsuits that specifically name executives, further fragmenting an insurance environment already difficult to navigate.

Insurers worry that claims relating to cyber incidents could persist for years, long after the initial impacts of a hack are resolved, referred to as long-tail liability.

Financial settlements with customers and regulators, after protracted legal battles-like those reached by Equifax Inc. and Marriott International Inc., can rise into the millions of dollars and take years to resolve. Retailer Target Corp. continued to file claims for years after its 2013 breach, in which data on around 40 million customers was stolen. The company was still receiving insurance payments as late as 2019, according to filings.

Home Depot Inc. is still embroiled in court battles with its insurers over lawsuits from financial firms, which had to replace millions of physical credit cards after the retailer's 2014 breach and sued to recover costs.

For insurers, which have spent the past few years grappling with the near-term costs of cyberattacks, it is critical to estimate the long-term consequences for their bottom line. Doing so will take time, as lawsuits and regulatory actions play out and trends become evident. wsj.com


Outgoing Employees Pose 'Significant Security Risks'
Top risks and best practices for securely offboarding employees

Outgoing employees pose significant security risks to organizations. Here are some of the major issues with offboarding and what CISOs can do to make staff offboarding strategies more resilient.

Here are some of the biggest risks outgoing employees pose to organizations, the challenges CISOs typically face in securely offboarding workers, and some tips that can help make offboarding strategies more resilient.

Top employee offboarding risks

Data theft: "Easily one of the biggest and most commonplace data security risks of outgoing employees is data theft," says Jaya Baloo, CSO at Rapid7. "Employees may either deliberately or accidentally take corporate information with them, whether it's self-developed code which may constitute corporate intellectual property, data that would be considered company confidential, or even customer data."

Disgruntled leavers becoming malicious insiders: Employees who have been given a departure date can become disgruntled and develop a grievance against the organization, making them malicious insiders. The risk here is compounded as the employee knows they are leaving before anyone else in the organization, which could enable them to perform malicious acts such.

Shadow IT, SaaS usage: Shadow IT and information systems that aren't part of a business's identity and access management (IAM) architecture are a huge risk to successful, secure offboarding, says Richard Jones, global CISO at Orange Cyberdefense. This is magnified for cloud and SaaS systems/applications that don't require specific network access or physical presence in an office, with IT teams often unaware of the extent of employees' SaaS usage.

Access not removed in a timely, thorough manner: The biggest challenge CISOs and their businesses face is removing access in a timely and thorough manner, says Duncan Casemore, CTO and co-founder of HR technology firm Applaud. "It can be tough for businesses to map out all the permissions an employee has once had, especially for those with longer service or who had administrative responsibilities." csoonline.com


iPhones Under Attack Globally
Global Spyware Attacks Spotted Against Both New & Old iPhones

Campaigns that wielded NSO Group's Pegasus against high-risk users over a six-month period demonstrate the growing sophistication and relentless nature of spyware actors.

Attackers have been targeting iPhone users around the globe in ongoing Pegasus spyware attacks. They show that cyber-threat actors are targeting both new exploits and older, unupdated devices to circumvent new preventative measures from Apple, researchers have found.

One of the multiple targeted campaigns observed over the last six months involved an iPhone user in the Middle East, and another a journalist in Europe using an iPhone 6 that is not supported by the latest iOS updates, researchers at Jamf Threat Labs reported in a recent blog post. Those updates include new threat "Lockdown Mode" notifications by Apple that can help warn someone if there is unusual activity that could be related to spyware on their devices.

The attacks demonstrate how threat actors continue to evolve and grow in sophistication even as there is more awareness about spyware and prevention against these attacks, which are often used with malicious intent by governments to target dissidents or others who investigate or are unsupportive of policies or regimes, the researchers said. darkreading.com
 

Consumer Financial Protection Bureau Staffer Sent 250,000 Consumers Data to Personal Account

Agency describes breach as a major incident and says employee no longer works there

The agency asked the former employee to delete the emails from his or her personal account and to "certify" and "provide attestation" that each email was deleted. As of Wednesday, the former employee hasn't complied with these demands, the CFPB spokesman said. wsj.com


The biggest data security blind spot: Authorization

Phoenix, AZ: Thousands of dollars worth of eyewear stolen from family owned store
Burglars smashed their way into the locally owned eyewear store, carrying a laundry basket targeting Gucci and Versace frames. Two showcases were cleared out, each of those high end frames can retail for $300 to $400. The owner stated the total value of the theft is over $10,000.  fox10phoenix.com


Auburn, MA: 80 fake driver's licenses recovered, 3 from New York arrested on identity fraud charges
Three people from New York were arrested after police said they were caught using a fake driver's license to make a purchase at Macy's at Auburn Mall. Dozens of fake driver's licenses were allegedly recovered. Police said the suspects were using a fake driver's license to access a line of credit at Macy's. They were caught trying to flee the mall. Police stopped the car and said they recovered thousands of dollars in stolen merchandise, along with 80 fake driver's licenses. A 25-year-old man, a 26-year-old woman and a 35-year-old were charged with larceny over $1,200, identity fraud, organized retail theft, improper use of a credit card and conspiracy. cbsnews.com


Athens, GA: Organized shoplifters are problem in Athens and N.E. Georgia
Two men from New York recently traveled South and went on what police said was an illegal shopping spree at northeast Georgia Walmart stores. "That is three Walmarts we know they hit right in a row," said Franco, who described this form of shoplifting as "ORC" or organized retail crime. Athens-Clarke police Det. Nathaniel Franco said the men first went to a Walmart store in Hartwell, then the one in east Athens, and finally the store in Oconee County, where they were arrested. Both men, ages 30 and 25, had addresses in the Bronx, N.Y. area. They were in a vehicle registered in New Jersey, said Franco, a detective who investigates a majority of shoplifting crimes in Athens. He is often consulted by other agencies and loss prevention officers at several large retail stores in regards to such crimes.  onlineathens.com


Chicago, IL: Mother accused of shoplifting nearly $3,000 in goods with teen daughter
They are accused of taking about $350 worth of merchandise from Marshall's, $1,610 worth from Ulta, and about $800 worth from Walgreens.

Ascension Parish, LA: Man wanted in connection to $6,000 worth of stolen cigarettes

Orange, TX: Approximately $350 of baby formula stolen from HEB; Orange Police look to identify suspects

San Angelo, TX: Convicted Thief Indicted for Stealing Tools from Feed Store

Bossier City, LA: Police Seeking Three for Stealing From Walmart