INFORM Implementation Day: Major Step to Combat Organized Retail Crime
Retailers grateful for mechanism to identify criminals selling stolen and counterfeit goods online

Washington, DC - The Retail Industry Leaders Association (RILA) issued the following statement as the INFORM Consumers Act goes into effect today, giving the Federal Trade Commission (FTC) and all state Attorneys General the authority to enforce transparency and better monitor criminal activity online.

"Organized retail crime exploded over the last few years as criminals exploited the anonymity of third-party online marketplaces to fence billions in stolen products. Retailers, members of Congress, law enforcement and the Buy Safe America Coalition labored for years to advance the INFORM Consumers Act to finally bring transparency and accountability to marketplaces," said Senior Executive Vice President, Public Affairs Michael Hanson. "Retailers are thrilled to see the INFORM Consumers Act become a reality today because it will make it much harder for criminals to hide behind fake screen names and bogus business accounts to sell illicit goods."

The law specifically empowers the Federal Trade Commission (FTC) and state attorneys general to hold marketplaces accountable, with a new rulemaking authority to provide consumers additional protections and the ability to impose steep fines. It also empowers consumers by requiring a reporting mechanism so consumers can flag suspicious activity on these marketplaces. The FTC recently issued a notice of their intent to "enforce the Act to the fullest extent possible and ... collaborate with our state partners to hold online marketplaces accountable."

"Organized retail crime continues to be a complex challenge impacting the entire industry, in cities large and small across the country. With INFORM in effect, retailers and law enforcement will have a new mechanism for deterring bad actors," said Senior Executive Vice President, Retail Operations Lisa LaBruno.

"Retailers are committed to keeping workers and shoppers safe, and restoring vibrancy to the communities in which they operate," added LaBruno.


Full Press Release

FTC's Press Release: Online marketplaces, take note: INFORM Act takes effect TODAY


The Inform Act takes effect today - here's how it aims to target ORC

The bill came after retailers and trade groups lobbied Congress and blamed online marketplaces, such as eBay and Amazon, for what they called a surge in retail theft.

The Inform Act, a new law that aims to curb organized retail theft and the sale of counterfeit and harmful products on online platforms, takes effect on Tuesday as more retailers blame theft as a reason for lower profits.

The bipartisan legislation, which stands for Integrity, Notification and Fairness in Online Retail Marketplaces, passed in December as part of an omnibus spending bill, more than a year after it was introduced by Reps. Jan Schakowsky, D-Ill., and Gus Bilirakis, R-Fla.

The identity of sellers on online marketplaces is typically unknown, but the new law seeks to change that. Under the Inform Act, web vendors such as Amazon and eBay will be required to verify and share information on third-party sellers that do a high volume of transactions on their platforms.

"The goal of the INFORM Consumers Act is to add more transparency to online transactions and to deter criminals from acquiring stolen, counterfeit, or unsafe items and selling them through those marketplaces," the Federal Trade Commission, which will be tasked with enforcing the law along with state attorneys general, said on its website.

"The Act also makes sure online marketplace users have a way to report suspicious conduct concerning high-volume third party sellers."

Once the bill passed, online marketplaces were given six months to get into compliance. Now that the law has taken effect, they can face steep civil penalties for violations.

The law comes after trade associations and retailers lobbied Congress about an alarming uptick in retail theft that they say was driven by lax regulations governing third-party sellers and verification processes on online platforms. They claim organized crime groups steal merchandise from stores and then resell it on online marketplaces, typically at a lower amount than the sticker price. cnbc.com


NRF: Federal ORC Legislation Update
Combating Organized Retail Crime Act Gains Momentum in Congress
The Combating Organized Retail Crime Act (S. 140, H.R. 859) continues to pick up momentum in Congress. There are now 42 co-sponsors (21 R, 21 D) of the House bill and 3 co-sponsors (2 D, 1 R) of the Senate bill. Support continues to grow after the recent House Judiciary Subcommittee on Crime ORC hearing. NRF submitted comments for the hearing and continues to call on members of Congress to support the legislation. We need all retail advocates to contact their representatives in Congress and ask them to support this bipartisan solution to fight retail crime. nrf.com


Retail CEO Warns that Theft Surge Will Trigger Closures
Major grocery store's CEO blasts self-checkout stealing and warns stores will be forced to close due to uptick in crime

The president of Giant Foods has spoken out against bands of thieves stealing groceries and warned that stores could close from the increase in retail crime.

"They steal everything from roasts to shrimp to deodorant to razor blades, you name it," Giant Foods President Ira Kress, told Washington, DC radio station WTOP News. Kress pointed a finger at large, organized crime rings that have contributed to the problem.

"They hire other thieves and provide them with a list of products to steal," he said. "Those thieves then go out and fill the list." Kress said the increased violence that comes with shoplifting may cause Giant Foods stores to start shuttering.

"What we always must do is ensure we can run our stores safely and profitably," he said. "If I can't do both of those things, I'll have no choice but to close a store. This clearly takes a toll."

The president did not specify which stores if any would close. There are locations in Washington, DC, Delaware, Maryland, and Virginia.

"It is scary, and it is really concerning and, unfortunately, I don't have many solutions for it either," Kress said.

"But, to the degree that I can limit any of the violence - which is trying to limit the interactions that are causing these individuals to create the violence in our stores - I'll attempt to do."

Employees do have de-escalation training, according to the outlet. the-sun.com


UBS Analyst Predicts Retailers Will Find Shrink Solutions
The retail industry's biggest problem is about to become a huge opportunity
The commonly referenced retail overhang known as shrink may finally be shrinking itself.

In a new note to clients on Tuesday, UBS analyst Michael Lasser wrote shrink - or merchandise theft - at retail chains might be at "peak" cycle in what has been a cyclical trend.

The impact of shrink will turn from a headwind to a tailwind later this year and into next year," Lasser wrote. He added that this should result in a boost to profitability for a variety of retailers.

Shrink has been a challenge for companies such as Target, Walmart, Dollar General, Dollar Tree and others for several quarters. In the most recent quarter, Target estimated it would lose $500 million in profits this year to shrinkage.

"Worsening shrink rates are putting significant pressure on our financial results," Target Chairman and CEO said in May.

But history shows the more executives talk about the shrinkage, the closer it is to a peak, according to UBS. Shrink mentions on earnings calls are at their highest levels since before the pandemic, per UBS, and that likely means shrink declines for the rest of 2023 and into 2024. In turn, a drop in shrink issues would be an upside to gross margins and profitability at some of the hardest-hit stores.

"Ultimately, shrink is a cost (albeit in some cases, a steep one) much like occupancy, utilities and others," Lasser wrote. "The managers of these companies have a fiduciary responsibility to maximize profits. We believe they will find solutions to address these issues and lower the costs in the quarters to come." yahoo.com


The Latest Retail Headache - Bomb Threats - Makes More Headlines
Bomb Threat Ransoms Join Retailers' List of Security Headaches

Retailers are facing a new breed of scammers using bomb threats to achieve their goals.

As The Wall Street Journal (WSJ) reported Sunday (June 25), these criminals are targeting chains like Kroger, Walmart and Whole Foods, in some cases demanding money gift cards or bitcoin and threatening to set off bombs if their demands weren't met.

The WSJ notes that while bomb threats and phone scams are nothing new, threats that demand ransoms are unusual, and could represent a new type of extortion.

These threats are part of an escalating series of security-related headaches facing retailers. As PYMNTS wrote last month, retailers like Target, Kohl's and Foot Locker all recently identified inventory shrinkage, retail theft or both as contributing factors driving down profits or negatively affecting on gross margins.

"Left unchecked, organized retail crime degrades the communities we call home. As we work to address this problem, the safety of our guests and our team members will always be our primary concern," Target CEO Brian Cornell said. "Beyond safety concerns, worsening shrink rates are putting significant pressure on our financial results." pymnts.com


Beginning July 3rd Dallas Police Will Not Respond to Theft & Shoplifting Calls Under $2,500
Dallas to require online reporting for some crimes instead of calling 911

The Dallas Police Department's requirement comes as police response times continue to climb, staffing shortages worsen and calls for service increase, officials said.

Mandatory online reporting aims to reduce the time it takes police to reach high-priority calls, as well as lessen officers' workloads, Chief Eddie García said Tuesday.

Officers won't physically respond to an address to take a report for certain calls, including minor accidents with no injuries when the vehicles are operable, motor vehicle burglaries, credit or debit card abuse, harassing calls or texts unrelated to family violence, identity theft, reckless damage, graffiti, burglary of a coin machine, lost property, theft and shoplifting under $2,500.

García said residents should still call 911 for medical emergencies, when they witness a crime in progress or when the suspect is present. He said the investigative process will remain the same no matter how the crime is reported. dallasnews.com


The Lighter Side of Crime
Fla. Sheriff to Would-Be Crooks: Hold Off on Crimes During Extreme Heat
In a tongue-in-cheek social media post, the Hardee County Sheriff's Office encouraged lawbreakers to stay home and "binge watch Netflix" instead of committing crimes as the heat index reached 115 degrees.

"Folks ... due to the extreme heat, we are asking anyone thinking of conducting criminal activity to hold off," the Hardee County Sheriff's Office wrote Sunday, June 25, on Facebook. Southeast of Tampa.

"It is straight up H-O-T and humid. Criminal activity in this kind of heat is next level henchmen status, and also very dangerous for everyone involved."

Instead, the sheriff's office suggested would-be criminals consider staying home with the air conditioning turned up and "binge watch Netflix, scroll the BeReals or check on your old friends with the FaceTime."

"Seriously, let's meet again when it's cooler," the sheriff's office said. officer.com


Opinion: Crimes Against Reason
The larger trend is a war against individual reasoning that is both enacting harmful policies in the name of "criminal justice reform" while also crippling the ability of young people to think critically.

NYC store owner says theft is out of control in city

Police close Renton Walmart over unidentified threat

Strike is in response to Starbucks' "hypocrisy"
More than 3,000 employees at over 150 Starbucks stores set to strike
Starbucks Workers United Union says its members are ready to strike over LGBTQ+-related issues.

According to the union's official Twitter page, member employees at the Starbucks Roastery location in Seattle are taking the lead in a strike that will unfold over the next week and ultimately involve around 3,500 workers in more than 150 stores nationwide. chainstoreage.com


Racking Up Labor Law Violations
Starbucks has lost 17 of 18 cases for union connected federal labor law violations

Workers also illegally disciplined for union activity, judge says

Starbucks Corp. violated federal labor law by punishing a worker at an Illinois café for responding to a subpoena directing him to appear at National Labor Relations Board hearing, an NLRB judge ruled.
The worker wound up not testifying because he received notice just prior to the hearing's scheduled start that it had been canceled. But the law still protected him from being disciplined for missing work to comply with the subpoena, Administrative Law Judge Paul Bogas ruled.

The NLRB ruled just last week that Starbucks unlawfully told Seattle workers they can't testify when subpoenaed without getting a co-worker to cover their shift, and by threatening them with discipline if they failed to secure that coverage. bloomberglaw.com


Hospitality & Retail Lead the Way in 'High' Workers
Bosses' New Task Is Figuring Out Who's High at Work

Companies change how they police use of the drug at work

More Americans are using marijuana. Their employers are trying to decide how much that matters.

One in six American adults now says they smoke marijuana, a share that has eclipsed the number of cigarette smokers, according to recent Gallup data, and expanding legalization of the drug has led more companies to scrap employee drug-testing. Instead, many are leaning on managers to spot signs that workers are impaired on the job and determine what to do when they are.

For one thing, some companies say being high at work isn't necessarily a fireable offense.

"It used to be, you test positive: 'See you later,'" says Eric Mack, a partner with employment-law firm Littler Mendelson, who says he has trained employees at more than a dozen companies to spot the signs of drug-related impairment in the past two years.

"Managers are really on the front lines of making these determinations, and it's very difficult to do," says Mack, who notes telltale signs include slurred speech, fumbling with equipment or otherwise acting erratically. He also advises companies to make sure more than one person observes that a co-worker isn't themselves.

Employees found to be high on the job might be warned, offered counseling or-depending on the jurisdiction and the nature of the performance issue-fired, she adds. The company recently ordered a drug test for an employee in Virginia, where marijuana possession is legal, after the worker drove a forklift into an overhead door. The worker was fired after testing positive, given the safety violation involved.

The mix of workplace safety and pot legalization is "one of the things that sometimes keeps me up at night," she says. wsj.com


75% of C-Suite Leaders May Quit for a Job With Better Well-Being Support
Despite a disagreement on the well-being of employees, executives also want to work for employers more conscious of supporting workers' mental health.

Employee mental health and well-being improvements have gained focus since the evaporation of readily available quality talent post-pandemic. Although employee benefits have been underutilized, they stem from efforts to retain talent and maximize worker productivity.

Despite efforts from managers and executives to provide a working environment that is stocked with resources and initiatives to promote mental health, companies are still dealing with the consequences of having unhappy people on staff at every level.

Deloitte's latest well-being at work survey, in partnership with Workplace Intelligence, shows that unhappiness in the workplace is taking a significant toll on productivity and the ability to preserve organizational talent in the long term. cfo.com


Overtaking Walmart as the Largest U.S. Retailer
Amazon may be the largest US retailer in 2024, according to J.P. Morgan analysts
Amazon is set to hit a major milestone in 2024: Becoming the largest retailer in the US, according to J.P. Morgan analysts Doug Anmuth and Bryan M. Smilek.

If this comes to pass, Amazon will be unseating Walmart as the country's largest retailer. It would be a seismic shift, one driven by increased e-commerce penetration, faster delivery times, and the stickiness of Amazon Prime. J.P. Morgan estimates show that, in 2023, Amazon's gross merchandise volume, or GMV, will grow 11.6% year-over-over to $477 billion.

This kind of growth shows the sort of resilience that Wall Street has been hoping to see out of e-commerce businesses, which had a tough 2022. Though e-commerce businesses like Amazon saw major booms during the pandemic, last year saw a pullback. It was the first year since 2009 that US e-commerce grew less than 10%, the analysts noted, adding just 8.5% year-over-year, "likely driven by macro pressures, the resurgence of [brick-and-mortar] retailers, and the shift toward omni-channel retail following the pandemic," Anmuth and Smilek wrote on June 20. finance.yahoo.com


Mondays Are the New Office Fight
Bosses argue that starting off the week in person-instead of remotely- creates good energy

How to Build a Trauma-Informed Workplace

UN Warns of Heightened Drug Use and Convergent Crime Risks

Bed Bath & Beyond's intellectual property awarded to Overstock.com, stores to vanish

40 million people in the U.S. may be exposed to dangerous heat this week


Quarterly Results

Walgreens Boots Alliance Q3 U.S. Retail Pharmacy & sales up 4.4%, Pharmacy up 6.3%, Retail comp's down 0.2% & Retail sales down 1%,
   International segment sales up 5%, Total Company sales up 8.6%
 

Senior LP & AP Jobs Market

Cool Job!
Director, Investigations and Security Services job posted for the National Football League in New York, NY
The Director of Investigations and Security Services will be responsible for managing investigations, special event and game day security, as well as game integrity and fan conduct programs within an assigned geographical area. The Director will also be responsible for managing relationships with contract security representatives covering specific geographic regions of the country. S/he will serve as the operational manager for all matters relating to the implementation and compliance with the NFL Security Departments policies covering; physical security/Safety Act Compliance, investigations, and special event planning and management within an assigned region. hdmm.fa.us6.oraclecloud.com


Loss Prevention Director - Direct Hire job in South San Francisco, CA posted by SlingShot ConnectionS
We are looking for a Loss Prevention Director to lead the development and implementation of loss prevention strategies and programs for our retail stores. You will be responsible for preventing and minimizing theft, fraud, inventory shrinkage, and other incidents that result in a loss to the company. You will also oversee the security and safety of our employees, customers, merchandise, and property. indeed.com
 

Ransomware Attacks in May Up 55% Over May 2022
May ransomware activity rises behind 8base, LockBit gangs

LockBit was the most active group last month, but NCC Group researchers were surprised by 8base, which started listing victims from attacks that occurred beginning in April 2022.

Global ransomware activity escalated last month with a 24% surge compared with April, making it the second-highest number of recorded ransomware attacks so far this year, according to new research by NCC Group.

Researchers discovered 436 victims in May compared with 352 in April, an increase attributed to the emergence of a new ransomware gang on NCC Group's radar.

Tracked as 8base, the threat group claimed the second-most active position behind LockBit 3.0, collecting a total of 67 victims. While the group isn't new to the threat landscape, as its breaches occurred between April 2022 and May 2023, 8base's public leak site -- which ransomware groups use to pressure victims into paying -- only became active last month.

NCC Group wrote in the report. "Even when excluding the 8base attacks, May's numbers this year are 56% higher than those in May 2022, and a small 5% higher than April 2023." techtarget.com


Security leaders say cloud platform misconfiguration is biggest threat
A new survey highlights that security professionals view misconfiguration of cloud platforms or improper setup ranks as the most significant security threat.

The 2023 Cloud Security Report, recently released by Check Point Software Technologies Ltd. in collaboration with research firm Cybersecurity Insiders, is based on a survey of more than 1,000 cybersecurity professionals worldwide, provides insights into the current state of cloud security management.

The survey reveals that misconfigurations rank as the primary cloud security concern, affecting 59% of respondents. These misconfigurations not only leave organizations vulnerable but also impede their ability to fully leverage the potential of the cloud.

The survey also revealed 72% of respondents struggle with managing access to multiple security solutions, resulting in confusion and compromising cloud management security. Malicious actors are capitalizing on these challenges, as evidenced by the report, which indicates a 48% increase in cloud-based network attacks in 2022 compared to the previous year. securitymagazine.com


CISOs Must Get Out in Front of AI Growth
How CISOs can balance the risks and benefits of AI

Rapid growth and development of AI is pushing the limits of cybersecurity and CISOs must take charge now to be ahead of a range of risks including data leak, compliance and prompt injection attacks.

The rapid pace of change in AI makes it difficult to weigh the technology's risks and benefits and CISOs should not wait to take charge of the situation. Risks range from prompt injection attacks, data leakage, and governance and compliance.

All AI projects have these issues to some extent, but the rapid growth and deployment of generative AI is stressing the limits of existing controls while also opening new lines of vulnerability.

If market research is any indication of where the use of AI is going, CISOs can expect 70% of organizations to explore generative AI driven by the use of ChatGPT. Nearly all business leaders say their company is prioritizing at least one initiative related to AI systems in the near term, according to a May PricewaterhouseCoopers' report.

The reason for the investment boom isn't just defensive. Goldman Sachs predicts that generative AI could raise the global GDP by 7%. According to McKinsey, the top AI use cases are in customer operations, marketing and sales, R&D, and software engineering. In software, for example, a survey by global strategy consulting firm Altman Solon shows that nearly a quarter of tech firms are already using AI for software development, and another 66% are likely to adopt it within the next year. csoonline.com
 

CFO & CISO Warned of Enforcement Action in Cyber Investigation
'Potential violations of securities laws related to cybersecurity disclosures and public statements.'

SEC notifies SolarWinds CISO and CFO of possible action in cyber investigation

Executives were alerted to possible enforcement action related to the Russia-linked supply chain attack.

The Securities and Exchange Commission has notified the chief financial officer and CISO of SolarWinds about potential enforcement actions related to the 2020 cyberattack against the company's Orion software platform, the company disclosed in a regulatory filing with the agency.

SolarWinds CFO J. Barton Kalsu and CISO Tim Brown each received the formal notification from the SEC, known as a Wells Notice, alerting them of potential civil enforcement actions stemming from a previously announced investigation into the company's response to the attack.

SolarWinds in November 2022 disclosed it had received a Wells Notice in connection with the cyberattack. The investigation related to potential violations of securities laws related to cybersecurity disclosures and public statements.

The SEC was also looking into the company's internal controls as well as its disclosure controls and procedures. cybersecuritydive.com


How hardening Microsoft 365 tenants mitigates potential cloud attacks
Moving critical data and workloads to the cloud has significantly changed information security teams. But most don't have the resources to be successful in their cloud attack modeling-not to mention the deployment of measurable controls to defend against these evolving attacks.

Google backs $20M effort to train students for key cybersecurity jobs

5 free online cybersecurity courses you should check out

Christiana, DE: 500K rounds of Ammo shoplifted from Cabela's at Christina Mall
The Delaware Department of Justice pushed forward an investigation into Cabela's sporting goods store in the Christiana Mall in Newark, Delaware after thousands of rounds of ammunition have, reportedly, gone missing. This week, Delaware Attorney General Kathy Jennings took further steps by formally requesting that the state's superior court enforce a subpoena against Cabela's after the retailer failed to respond to the court document. According to Jennings' office, her department is investigating whether Cabela's violated Delaware's firearms industry public nuisance law through, what the office called "its hands-off approach to the shoplifting of ammunition from its Christiana location." Investigators claim the location kept ammunition unsecured in the middle of the sales floor and made no apparent efforts to stop shoplifting. Though, Jennings' office noted, after her office sent Cabela's a subpoena, the company relocated ammunition in the Christiana Mall store to behind a sales counter. In a statement, Jennings office said that investigators believe that at least 500,000 rounds of ammunition were stolen from Cabela's in less than a year, and that a substantial portion of it "was sold to drug dealers and other criminals in Delaware and Pennsylvania."  nbcphiladelphia.com


Fort Wayne, IN: Five charged in theft ring that stole $18K worth of goods
Some would handle the checks while others would help with the merchandise. They'd hit up local Hobby Lobby and Menards stores, load up with sometimes thousands-of-dollars worth of goods, write a bad check that could come nowhere close to covering the cost, and be out the door before that check would bounce back to store management. And they're accused of doing this 17 times last year, bilking the stores out of more than $18,000. That's according to newly released Allen Superior Court documents detailing a theft and racketeering ring consisting of five Fort Wayne residents who are now facing felony charges of corrupt business influence. Members of the ring are accused of going to two local Hobby Lobby stores and three Menards stores - plus to a Menards in Ohio at least once - multiple times in 2022 and early 2023 to run the scam.  wane.com


El Centro, CA: Tractor Supply burglary suspect arrested
The El Centro Police Department reported that on Saturday, June 24, an employee of the Tractor Supply store in El Centro saw an individual believed to be the suspect in a burglary reported early Friday, June 23. The employee also reported seeing some of the items taken from the store at a nearby transient camp. Upon further investigation, it was learned that some of the merchandise taken in the burglary was posted on the OfferUp website. Investigating officers subsequently located and arrested the suspect, identified as a 37-year-old man. The suspect has three outstanding warrants for his arrest out of Solano County, so in addition to the charges regarding the El Centro commercial burglary, it is expected that the suspect will be extradited to Solano County to face charges there.  calexicochronicle.com


Upper Merion, PA: 2 Women Steal $3.5K In Merchandise From KOP Lululemon Store
Two women stole dozens of articles of clothing and other merchandise from a Lululemon store in the King of Prussia mall recently, authorities said. The total cost of the stolen items was about $3,500. The incident occurred on Saturday, June 17 just before 6 p.m. The women fled the store with the merchandise into the general mall area, evading the store's loss prevention agent, according to authorities.  patch.com


3 arrested in connection with organized mail theft ring in Travis County
Three people were arrested in connection with a string of mail theft and identity fraud crimes throughout Travis County, the county sheriff's office said. Officials arrested 45-year-old Adam Timothy Liveoak, 46-year-old Amy Deanne Liveoak, and 25-year-old Andrew Timothy Liveoak on first-degree felony charges of theft of mail ID information and engaging in organized criminal activity. During search warrants obtained by TCSO, detectives discovered burglary tools, illegally manufactured keys, drug paraphernalia, and large folders of personal information belonging to multiple people. cbsaustin.com


Lancaster, PA: Woman charged with being part of a diesel-theft ring that cost Redner's over $150,000