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July 13, 2012 SUBSCRIBE

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click to watch video$25 million fake coupon bust and arrest of three women - the first case of its kind in the U.S. - talk about starting a business out of your home - this one tops them all! A widespread counterfeiting and forgery operation linked to a Phoenix home has led to the arrests of three women and the seizure of $25 million in fake coupons, Phoenix police said. The residents in the home were forging coupons that offer customers free or highly discounted items. Police confiscated $2 million worth of assets that included $240,000 in vehicles, 22 guns, a 40-foot speed boat and other assets. Officers also seized packing material and equipment used to process the coupons. A four year investigation led authorities to a web site selling the coupons for 50% off face value. They were bringing in the coupons from overseas and customers were getting free-item coupons. Police said the scope of the investigation and the economic impact - hundreds of millions of dollars in losses - goes beyond imagination. (Source

Thanks to Jerry Biggs, Director of ORC Division for Walgreens for submitting the above article to the D&D Daily.

NJ Gift Card Zip Code Requirement Delayed Four Years A controversial state law requiring New Jersey merchants to collect zip codes from gift card purchasers and turn over unused balances to the state has been put on hold for four years, but opponents say they will continue to seek permanent repeal. The NJ Governor who has signed it originally had caused quite a stir with a number of gift card providers announcing plans to pull out of the state. The uproar obviously caused this reaction. (Source

Target confirmed the list of the stores that it intends to open across Canada in 2013. Click here for the full list. (Source

When the the classic indoor mall first appeared in a 1952 article in the magazine Progressive Architecture, the plan was a shocker Now it's 60 years old and some are asking - has it run its course? The first prototype opened in 1956 in Edina, Minnesota and spread from there. And now is the age of "lifestyle centers." Here's a great article on the history and evolution of the Malls and where we're going in the future. (Source

G4S falls through on commitment for Olympics and British Gov't has to add 3,500 more troops to staff security in two weeks This week, G4S officials finally conceded that the company was far behind — by a head count of several thousand — in its contract under the Olympics' billion-dollar security plan to produce more than 10,000 fully trained, security-cleared guards. To cries of "shambles" and "international embarrassment" in the House of Commons, the government of Prime Minister David Cameron said it had issued an emergency draft for an additional 3,500 troops, many of them just returned from Afghanistan — on top of 13,500 already committed for the Games — after broken commitments by a private security company. The government will now field a total military force of 17,000, who will outnumber civilian security details at Olympics venues by more than 2 to 1. (Source

Yahoo breach extends beyond and hits 106,000 Gmail e-mail addresses, 55,000 Hotmail e-mail addresses and 25,000 AOL e-mail addresses The hackers wrote a brief footnote to the data dump, which has since been taken offline: "We hope that the parties responsible for managing the security of this subdomain will take this as a wake-up call, and not as a threat." (Source
click to watch video

Fed Agents seize more than $500,000 and 13,000 counterfeit goods the week before the MLB All-Star game in Kansas City Federal agents scored big during the All-Star week in Kansas City as agents seized more than $540,000 worth of counterfeit Major League Baseball merchandise. Agents with a division of Homeland Security carried out several raids during a two-week operation. They even busted a warehouse filled with hats. (Source

Wet Seal workers sue retailer for discrimination. Former employees of Wet Seal Inc. have filed a federal racial discrimination lawsuit against the teen clothing store operator, claiming management set out to fire African-American employees because they didn't fit the retailer's "brand image." In the complaint, the plaintiffs contend that, beginning in 2008 and through the present, Wet Seal has had a "policy and practice" of discriminating against African-American store management employees at its namesake stores as well as its Arden B shops. The lawsuit claims that the policy was adopted by the retailer's top executives, who used it to target African-American employees for termination, as well as to deny them pay and promotions. (Source

Loss Prevention Associate charged with the theft of $10,000 in merchandise from Walmart. The Loss Prevention Associate along with two other associates is believed to be responsible for the theft of iPods, computers, cell phones, televisions and gaming systems. Many of the items were simply removed from locked showcases. One of the associates claimed to have paid off the Loss Prevention associate "to not get into trouble". (Source

Video: Polk deputies seek burglar who smashed into Target

Burglar drives through a fire door at a Target store in Davenport, but leaves empty handed
. The thief made a bold attempt at stealing iPods but after crashing a van through a fire door armed with a crowbar, the burglar found that the display of iPods had been secured somewhere else overnight. Police are still seeking the identity of the suspect. (Source

Video: Naked man drives into mall, police say

Naked man drives his pick-up truck into a Dallas Mall
. The man drove nearly a quarter of a mile through the mall, stopping at a Champs Sporting Goods Store and began trying on clothes and tennis shoes. Police believe the man was suffering from a break-down following an altercation with family members, and may be mentally ill. (Source

click to watch video

Last week we covered the San Diego firework fail. Click here for new, UP-CLOSE video of the planned 17-minute show that only lasted 15 seconds! Note: make sure your speakers are turned down before watching! (Source




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Upcoming Articles

Gregg Smith, Director Loss Prevention -
The Children's Place - The First Year


LPNN: Your LP, Attention Vendors, Film and Broadcast Your Video on Your Channel. Upcoming episodes: 2012 IOBSE Event Coverage; Se-Kure Controls; Keith White, Sr. VP of LP, The Gap Stores.

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

National Food Service Advisory Council Conference. August 5 -8.

Disaster Recovery & Preparedness Committee (DRAP) Meeting. Chicago, IL - Sears Headquarters. August 17, 2012. Click here for more information.

11th Annual Virginia Retail Loss Prevention Conference - Virginia Beach, VA - Holiday Inn Hotel. September 6, 2012. Click here for more details.

Canada's Biggest Retail Loss Prevention Event. Mississauga, ON - International Centre. September 11-12. Click here for more information.

Watch for our article the day after each event!

CLEAR's 3rd Annual Training Conference, Dallas, TX. Sept. 18-20, 2012. Learn more here.

8th Annual Impact Workshop. Join other retail executives interesed in LP research on ORC prevention, packaging innovation, video analytics, benefit denial, plus much more. LPRC: October 15-17, 2012. University of Florida Campus. Gainesville, FL

Washington State Organized Retail Crime Alliance Annual Training Conference. Burien, WA. October 18, 2012. To register visit

2012 Thought Challenge Awards Committee

Northern Michigan University, located in Michigan’s 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

RFID + EAS Why settle for only one? Visit us at and check out the latest in RFID+EAS. WG Security Products

LPNN - Loss Prevention News Network

Trade Associations, Conferences & Series

2012 International Organization of Black Security Executives (IOBSE) Spring Conference

The Opening Speaker for the 30th Annual Conference

Click here to watch video.


The IOBSE episodes sponsored by
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Mike Robbins, Author & Motivational Speaker, Final Part Mike Robbins is the author of two best selling books including Be Yourself, Everyone Else is Already Taken, the focus of this presentation. He is an expert in teamwork, emotional intelligence, and the power of appreciation and authenticity. In this four part episode Mike addresses the IOBSE attendees stressing the importance of authenticity. What does it mean to be authentic, and how it is the key to your success. An excellent and thought provoking presentation that can't be missed. Filmed April 2012.

Season One Episode Release Dates

July 16 The Face of Loss Prevention - Bill Titus, VP Loss Prevention & Safety, Sears Holdings Corp.
July 23 IOBSE Founders Panel - George Logan and Oliver Wainwright


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ORC ring busted in Washington, D.C. buying stolen Tide and exporting it for resale in Vietnam. Police in Prince George’s County, MD discovered the dirty trade in the cleaning product and set up a sting, then carried out a midday raid on the Star Nails salon in the town of Capitol Heights. Five nail technicians were arrested. "We have them for up to $6,000 here," a police department representative told the local NBC affiliate. Further investigations are expected. (Source
click to watch video

Albuquerque Organized Crime Unit bust ORC ring at Home Depot stealing weed killer and no-touch faucets and returning the merchandise for refunds. They only busted one member yesterday and are continuing the investigation. But the ring leader is using a number of people including his family members. These are serious criminals with records. (Source

Two women busted for shoplifting spree that hit Dillard's, Old Navy, the Children's Place and Aeropostal in Central Florida Two Polk County women are facing a variety of charges after they were arrested Thursday night for stealing clothes from the Lakeland Square Mall. Inside their vehicle detectives discovered hundreds of clothing items allegedly stolen from a variety of retail stores throughout Central Florida. In all a total of $3,246 worth of merchandise was confiscated from the suspect's vehicle. All of the clothing items still had the retail tags on them. (Source

4 Michigan residents indicted for using other people's credit cards and hitting Home Depot, Meijer, and Wal-Mart in Northern Kentucky The indictment alleges that in May of this year, the defendants used other people's legitimate card numbers to purchase approximately $4,000 combined in gift cards and other merchandise from the Home Depot, Meijer and Wal-Mart. (Source

Trio of convicted felons with combined total of 48 bookings and 105 criminal records hit Kohl's in Port Charlotte, FL Stuffing a baby stroller with a baby in it with stolen goods the trio was apprehended by police. Given their background and criminal past they may have been hitting other retailers in the area. Distributing the pictures may prove worthwhile. (Source

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

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Thought Challenge

Submitted by Stephen O'Keefe
Vice President, Operations
Retail Council of Canada

We’ve all had those moments when we were trying to get a stakeholder excited about a shrinkage issue. And likely we’ve all fallen into the same argument with that reluctant stakeholder, and also let our emotions get the better of us...and they just don’t see it the way we do. "The shrink rate is (e.g.,) 1.3%!!! ...don’t you get it? We can't continue like this..."

The reality is, that stakeholder is hearing you like the infamous teacher’s voice from Charlie Brown and they are doing the rough calculation, and accepting the risk, because it just doesn’t seem like that big of a deal...and you walk away frustrated and feeling like you’re on your own mumbling under your breath that they just don’t get it.

So here’s my thought...several years ago I walked into a colleague’s office only to find on his wall, a map of the world with Canada at the bottom and Argentina at the top. Nothing was where it was supposed to be, it was all upside down. It wasn’t right, but the caption on the top made me question if perhaps it was right, or at least to question who is right... "It’s All just a matter of Perspective – we don’t all see things the same way."

Who says north is the top? We live on a ball floating in space, of which there is no defined top and bottom. We look at a map with north on the top only because we have been conditioned to understand north to be up – so that we can all relate and see things the same way. That map made me think, and I am glad that I saw it because it changed my views on a lot of things.

Now back to the discussion on shrinkage. We are conditioned to speak to the shrink rate in terms of its relation to sales i.e. 1.3%. It’s the industry standard for reporting shrinkage.

But you see, this argument took place at a retailer bringing in 3% net profit. Without shrinking, the profit would have been about 4% (factoring in the cost element)... so try inverting your map... and remove the emotion... "our shrink has taken 25% of our profitability away, is this fiscally responsible?"... try it – you might find a world of difference in the reaction of the reluctant stakeholder. Try to appeal to the way they think rather than assuming everyone sees things the same way.

Just a thought.

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Loss Prevention Mgr Flextronics Milpitas, CA Monster
Regional Mgr LP Staples Canada Vancouver, BC, Canada Workopolis
Loss Prevention Mgr Kmart Oak Park, MI Sears Holdings Corp.
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Anna Gunther was named Sr. Loss Prevention Manager for Amazon.
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Make a Great First Impression: 7 Smart Tricks Research shows that customers decide whether or not they want to work with you within two seconds of meeting you. That puts the burden on you to make certain those two seconds really count, and the only way to do that is to prepare ahead of time.  (Make an impact)

5 Quick Steps for a Great First Impression Like it or not, first impressions carry a lot of weight. Whether you're heading to a job fair, a networking event or going to a job interview you'll want to make sure your first impression sends the right message. After practicing those seven tips above, here are five extra steps to take.  (Go the extra mile)
Are you a Compulsive Networker? 10 Warning Signs While career coaches expound on the virtues of networking, especially in a down economy, some professionals take it too far. Management and addiction specialists say they are seeing more people compulsively attending events, obsessively growing the number of their connections online and wearing themselves out with little to show for it.  (Step away from the Connect button)

6 Cheap and Easy Team-Building Tactics To borrow an age-old expression, "the whole is greater than the sum of it's parts." When it comes to business, this theory is valid. In fact, the role of teams in small business is integral to its success. This article includes six simple ways to build your team.  (All about synergy)

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"You're not a candidate for the position"

Your boss leaves the company and that's what you hear. How many thousands of people have heard this gut-wrenching - breath-taking comment and after a phone call with your spouse decide "I'm out of here"? That night, dusting off your resume and filled with an anger, you think about all you've done and accomplished and all the hours you've spent trying to support your boss and the company. You start to establish timelines and make commitments about when you'll have that new job. You start emailing all the recruiters and update Linkedin and, filled with a new sense of purpose and trying to rebuild your self-esteem, you suddenly start to see reality. The wall appears. The market is tough and competition is all over the place. Posted jobs get hundreds of responses and you become one of many. But you missed the first step. And you didn't hear the right message when they told you - "you're not a candidate for your boss' job."

The right message was - you haven't put yourself, in their eyes, in the right position to be considered. So the first step has to be finding and creating a way to do just that if at all possible and at any cost. Because that response should in fact ignite you and challenge you to become a candidate and to take all that you've learned and accomplished and reinvent yourself and reinvent the loss prevention services you and your team are delivering. Take that comment as a challenge first and develop a response. Not in words to the executive or company that shared it with you, but in actions, in your performance, and in your programs. Tear everything apart that you're doing and take a fresh look at it. Reinvent and create new approaches. Take some old programs and make them new and fresh. Separate yourself from the old and show the company and the executive that told you this - "you're not a candidate" - that you can be and that you've got the right stuff that will add value and make a difference. And that you're not part of the old program but instead you're part of the new direction and you can deliver the results they need all you have to do is go create the new direction.

Everyone in retail now is talking about reinvention, and how the entire retail industry has to change and evolve in light of the ever dominating online retail pressure. Well this same principal applies when you hear you're not a candidate for your boss' job. The question is how do you respond?

Interestingly enough the story above in fact happened recently and we were honored to play a part in helping one executive reach their dream and become the new senior LP executive of their company. Much too often retail America believes they have to bring in fresh new talent in order to reinvent and maximize employee performance when all the while the executive is sitting right under their nose. The only problem is the executive himself hasn't realized that it's all in the timing and when the time comes you've got to reinvent yourself and put them in the position of saying "We just can't believe how you've done this and how you've pulled this off. But we'd like to consider you for this job and we've set up some interviews for next week." Now what do you do?

More on that Monday!

Just a thought,
Gus Downing

Gus Downing

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