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July 19, 2012 SUBSCRIBE

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Senate Panel eyeballs Facial Recognition Technology. A Senate panel on Wednesday examined the growing emergence of facial-recognition technology, questioning whether restrictions should be imposed on its use by both government agencies and the private sector before it becomes ubiquitous. Such technologies are already being used in a variety of ways, from identifying friends in photos uploaded to Facebook to helping law enforcement ensure they are releasing the right prisoners from jails. But some privacy advocates and lawmakers say that unlike fingerprints or other forms of identification, facial recognition raises much deeper privacy fears because it can be used remotely and without a user’s permission or knowledge. (Source

click to watch video
Today, Sen. Al Franken grilled a Facebook Inc. executive on the company’s facial-recognition technology, urging the giant social network to be more upfront about how it is creating "face prints" of its users. Franken said it takes six clicks to reach a page on Facebook that explicitly says that the company is using facial-recognition technology. He held up placards with text from the site at a hearing of the Senate Judiciary Subcommittee on Privacy, Technology and the Law, which he chairs. (Source

RILA Educate. Innovate.Advocate.

Retailers and University of Arkansas Will Study Risks Associated with Point of Sale Technology

Arlington, VA – Today the Retail Industry Leaders Association (RILA), in partnership with the University of Arkansas, Sam M. Walton College of Business and with support from Checkpoint Systems and Ernst & Young, announced a new initiative to examine the loss prevention risks associated with emerging point of sale technology.

The initiative will study emerging point of sale (POS) technology including self-checkout, mobile coupons, touchless payment, mobile POS and mobile self-checkout, evaluate the LP risks posed by each and identify possible preventive strategies.

"Retailers need to understand this emerging technology and its implications for loss prevention now so that they can proactively address any challenges that lie ahead rather than just reacting to them after emerging POS technologies become the norm," said Lisa LaBruno, RILA’s vice president of loss prevention and legal affairs.

"Checkpoint is very excited to have the opportunity to be involved in such an important issue within the retail industry," Farrokh Abadi, President and COO Shrink Management Solutions, Checkpoint, said. "As the speed of innovation increases, it will challenge standard practices within asset protection used to lose less, but we are certain that our collaborative research will allow retailers to develop strategies to face this new challenge associated with mobile POS practices."

"The speed at which mobile technology is affecting and reshaping retail is dramatic. The importance of understanding the risks such advancements have on a retailer's business cannot be underestimated," said Dan Valerio, Ernst & Young's Americas Retail Sector Leader. "Ernst & Young is proud to join Checkpoint as sponsors of this critical undertaking by RILA and the University of Arkansas, as the results of this study are at the heart of what is important to the clients we serve."

Not only will the project compile research findings in an industry report, it will also offer a risk assessment check-list that retailers can use in their retail locations to mitigate LP-related risks.

"I'm very excited about the opportunity to work with such an experienced research team from the University of Arkansas on a project that has the potential to deliver tremendous value to the retail LP industry," LaBruno concluded.

This project is the brainchild of RILA’s Asset Protection Leaders Council (APLC) . The APLC provides a forum for top-level retail AP executives to work collaboratively to guide the strategic direction of the retail AP industry and to enhance effectiveness within their respective companies.

Contact: Liz Jennings (703) 600-2063

Best Buy to hire 500 Geek Squad employees. Just two weeks ago, Best Buy announced that it would lay off 600 existing workers in the tech support arm of the business. A Best Buy spokesperson said that new Geek Squad jobs will focus less on basic installation services and more on complex installations and on delivering online support. The new hires will be divided between the Geek Squad's online tech support and in Best Buy stores nationally.  (Source

Authorities in three countries have crippled the world's third-largest spam-spewing network
. Over the last week, seven command-and-control servers for the Grum botnet were taken down in Panama, Ukraine, and the Netherlands. The agencies have been playing a cat-and-mouse game with the spammers, who have launched new servers when others are taken down. Grum is responsible for more than 17 percent of the world's spam.  (Source

What exactly is the future of shopping
? Every 50 years or so, retailing undergoes changes, and retailers either adapt or die out. Currently, successful retailers are using a mashup of digital and physical experiences, known as "omnichannel" shopping. All the technology mentioned in this article is already available, so in the next five years will this be how we shop?  (Source

South Carolina Counterfeiters hitting with fake $20’s. Three suspects are now under arrest and charged with forgery and uttering in Rock Hill, South Carolina. Bi-Lo, Dollar General and Pep Boys were just some of the many victims of the trio, buying $1 items with the fake $20’s. Police believe the bills were washed in acetone then photo-copied, the paper would test ok with a counterfeit pen, but the hologram makes were missing from the note. Officials have recently spotted several $5 bills being bleached as $100 bills. (Source

Six arrested over suspect counterfeit goods. Six people were arrested as they left Seamer Horse Fair during a joint operation with North Yorkshire Police and North Yorkshire County Council’s Trading Standards Department. Following concerns that counterfeit goods were being sold at the fair, covert Trading Standards officers purchased a number of items bearing well known labels which they suspected were counterfeit. This led to a joint operation with North Yorkshire Police to arrest the sellers of the goods and seize the items on sale. Police intercepted three vehicles leaving the site and arrested six people, seized three vans, an amount of cash and a large quantity of suspected counterfeit goods, including hundreds of items of clothing. (Source

400,000 smuggled cigarettes seized in England. UK Police and customs officials have seized a total of 400,000 cigarettes from a farm in Misterton, Nottinghamshire, England. A man has been arrested after police seized 400,000 smuggled cigarettes from a farm. The cigarettes worth hundreds of thousands of pounds were discovered last week in a rented building at a property in Misterton. It has been calculated that the loss to the Exchequer in the form of unpaid customs duty and VAT is around $160,000. A 58-year-old man from the area was arrested. (Source

UK retailers experienced losses of $5.3 billion due to theft and fraud in 2011/2012. Martec International conducted a survey with the top 100 Retail Loss Prevention Directors in the UK, accounting for 42% of the retail market. The study found the 22 percent of the losses were accounted to employee theft, a drop in high end goods and a sharp increase in the theft of everyday essentials due to the economy. (Source

Beginning next week the Daily will be featuring a portion of the book Retail Crime, Security, and Loss Prevention, 1st Edition, An Encyclopedic Reference. It is THE reference for retail security and loss prevention professionals. The chapter, "Taking Over a Loss Prevention Department," written by Mike Keenan, CPP, CFI, Vice President of Loss Prevention for GAP North America, will be republished for our reader's enjoyment.

Hacker hits 'Professional Athletes Only' Nike site for $80,000 in merchandise. Nike had established a website for professional athletes to order product without charge, Brad Stephenson was a baseball player, but maybe a better hacker. Stephenson was able to access the site and order $81,419.58 worth of product that he had shipped to several addresses around the country. Stephenson gave a lot of the gear away as gifts and he even sold a small number of items on eBay, keeping the rest for himself. Stephenson was indicted on one count of computer fraud and struck a plea deal after agreeing to help Nike plug their security holes. (Source

Two Bankers sentenced in fraud ring that supported International Organized Crime. Two former bankers convicted of aggravated identity theft and helping an international crime organization based in the Twin Cities to bilk more than $50 million from U.S. banks. Chief U.S. District Judge Michael Davis said, "This is one of the most outrageous cases I've ever seen, where we had a breach of security and trust by bankers." "It's mind boggling what has occurred in this case." The case grew out of a multi-year investigation dubbed "Operation Starburst" by the Minnesota Financial Crimes Task Force, a joint operation of federal, state and local law enforcement. The government says the scheme was centered in Minnesota, ran from 2006 to 2011 and had operations in California, Massachusetts, Arizona, New York and Texas. More than 30 people have either pleaded guilty or been convicted in the case, including six bankers. Four of the defendants have been sentenced so far. Assistant U.S. Attorney Ann Anaya said the ring engaged in bank fraud, credit card fraud, identity theft, takeovers of home equity lines of credit and money laundering. Bank insiders protected the ring by watching for red flags that would trigger investigations or lead authorities to the ringleaders. (Source

click to watch video
Millions of unaccounted for money found in Atlanta Police accounts, Chief says he can explain. Two accounts under the control of the Atlanta Police department were discovered by the City Auditor who was amazed at the mismanagement of millions of dollars. The prisoner and evidence account had $2.9 million and an unclaimed cash account had $1.3 million, according to police records the unclaimed cash total was only suppose to be $9,452. Police Chief George Turner believes that the long court process of transferring the unclaimed money from its account to the general fund account takes a long time and is the reason for the accounting error. (Source

Store Manager of a PetSmart in Arizona embezzles $16,000. Roy Aguilar, 44 was arrested early this week for felony theft on suspicion of embezzling approximately $16,000 from the PetSmart he managed in Gilbert, according to Gilbert Police. Aguilar allegedly stole money from nightly deposits, using his position as store manager. PetSmart began investigating Aguilar after discovering thefts of money dating back to October 2011. (Source

Ex-Store Manager to plead guilty to Good Guys theft charges. The former manager of an electrical goods store in Warrnambool, Australia will return to court in September, charged with seven counts of theft. Police allege Jeremy Rae, stole about $30,000 worth of electrical goods while he ran the Good Guys store. Yesterday, in the Court, Rae's legal counsel indicated he would plead guilty to seven charges, and about 54 charges were dropped. Rae was originally charged with the theft of $80,000 in merchandise. (Source

Chicago man who skimmed credit cards sentenced. A Chicago man who pleaded guilty to charges he organized a ring that stole more than $200,000 from diners using credit cards at restaurants and other venues has been sentenced to five years in prison. Joseph Woods on Tuesday pleaded guilty to felony conspiracy to commit a financial crime. Prosecutors said Woods paid employees of the restaurants to skim customer’s credit cards with a device he provided. Woods then used the information to forge counterfeit cards, purchasing items all over town. (Source

click to watch video
Harris Teeter store offers $50K reward. The Harris Teeter grocery store has offered up to a $50,000 reward for information leading to the arrest and indictment of two suspects involved in the July 17th armed robbery in Aldie, Virginia. The two unknown male suspects entered the store at about 2:20 a.m. Both had their faces covered, and one brandished a firearm. During the robbery, a Harris Teeter employee was pushed to the ground by one of the suspects. The employee was uninjured. The two suspects forced entry into two cash registers and fled the store with an undisclosed amount of cash. (Source

Topeka’s Super Shoplifter could see over 20 years for 19th conviction. Mark Lucas is already scheduled to serve 11 years on two previous convictions for shoplifting, then got in trouble again, stealing from a Topeka Walmart. Now, Prosecutors are charging him with his 19th conviction which could carry an additional 10 to 11 years and may run either concurrent or consecutive. The strange part of this case, in the last 18 arrests Lucas always accepted a plea deal, this time he has spent four days in court professing his innocence. (Source

Senior Citizen shoplifter tries to run down Store manager. A 67 year old Sandra Mae Spidel stole 3 items from store shelves and concealed them in her handbag. She left the store without paying for the items. But as she attempting to drive away, 32 year old John Koval, stepped in front of her vehicle. Koval asked Spidel to stay at the scene until police arrived. Spidel however continued to drive forward. Koval eventually sprawled across the hood of the vehicle, but Spidel continued to drive away. Koval was able to jump off the hood without injury as Spidel sped away. Charges against Spidel include Retail Theft, Recklessly Endangering another Person and Simple Assault. (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

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eBay News

eBay Inc. Announces Strong 2nd Quarter Results – Best Since 2006

eBay Inc. reported revenue for the second quarter increased 23% to $3.4 billion, compared to same period of 2011. The company reported second quarter net income on a non-GAAP basis of $730 million, or $0.56 per diluted share, up 16% year over year primarily due to strong top-line growth partially offset by increased investment in the shopping experience and the impact of acquisitions. CEO John Donahoe commented "Our multiyear effort to improve trust, value and selection and create better, more compelling product experiences is working. And I know that the best is yet to come as we continue to innovate for our buyers and sellers. Every part of our company performed well in Q2. PayPal and GSI both generated strong results. PayPal is delivering real innovation – not just promises – to all segments of the market on a global scale, from small businesses to large retailers and to consumers everywhere. Sixteen retailers are now implementing PayPal point of sale, and PayPal Here became available this week in the US and Hong Kong. GSI is helping large retailers win – delivering 21 percent growth in same store sales for the quarter. Mobile is revolutionizing how people shop and pay, becoming the digital nexus of consumers’ lives. We now expect eBay and PayPal mobile to each handle $10 billion in transacted volume this year – a stunning surge in purchases and payments on devices that did not exist just a few years ago". Click here for full article.

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LPNN - Loss Prevention News Network

Trade Associations, Conferences & Series

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

Part 4: The Face of Loss Prevention - Bill Titus, VP Loss Prevention & Safety

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The IOBSE episodes sponsored by
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Bill Titus, VP Loss Prevention & Safety, Sears Holdings Corp.  In this five part series, titled The Face of Loss Prevention - The Accidental Warrior, Bill Titus speaks about the evolution of loss prevention: the people, the processes and technologies, and the bad guys. This presentation was given at the International Organization of Black Security Executives (IOBSE) Spring Conference to current and future loss prevention professionals. Bill discusses how to go about choosing the right kind of career and company, and he compares public and private sector jobs, including salaries and job functions. Filmed April 2012. Stay tuned tomorrow for the final part.

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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Three NJ shoplifters busted at Lord and Taylor. The three suspects being charged with grand larceny of $1500 in merchandise and will also have the charge of criminal possession of an anti-security devise, for the special bag they used to conceal the stolen goods. An active warrant was on file for one of the suspects, all three will face the judge on August 13th. (Source

The Buckle Store stops 2 grab and run bandits. The men came into The Buckle store in Mandeville, quickly grabbed an armful of clothing and ran. Employees and witnesses were able to give detailed description to police who later apprehended the suspects following a short pursuit. Police recovered The Buckle’s $1500 in merchandise and $2500 in merchandise from of retailers in the area. (Source

Three suspects arrested at The Buckle in Olympia. Employees at the store must have known something was wrong when the suspects entered the fitting room with a load of merchandise. One employee noticed the electronic article surveillance tags drop to the floor as they were being cut off. As the suspects left the store, the store manager and three associates approached the suspects carrying the now oversized shopping bag. Upon arrival of the police, $370 worth of product was recovered and all three suspects had previous arrests for property crimes, one had six outstanding warrants for larceny and organized retail theft. (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

Thought Challenge

Submitted by Connie Vaughn, CPP
Account Executive
RFI Communications & Security

Catch your people doing it right. It is so easy to get caught up in finding errors; we forget to reward our employees for the things they do correct every day. Maybe someone helps the new guy; maybe the new guy helps see an existing situation differently; let's remember together that our employees do hundreds of things right each and every day. A "nice job" or "excellent insight" goes a long way toward job satisfaction and longevity. It is far easier and more cost effective to keep a good employee than recruit, screen, hire, and train a new employee.

Take this a step further and let employees catch each other doing great work. Empower your team members to recognize other team members for their contributions. Depending upon the size of your team, this could be a monthly or quarterly recognition. The award could be a simple certificate and/or gift card (I have found gift cards for coffee, movies or restaurants very effective).

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Director of LP Ritz-Carlton Dorado Beach, PR Marriott
Dept Mgr Store LP & Safety Lowe's Philadelphia, PA Lowe's
Asset Protection Mgr Sam's G3 Medford, NY Walmart
AP Mgr - Metro Walmart Converse, TX Walmart
Loss Prevention Mgr Macy's Dundee, IL Macy's
Loss Prevention Mgr Macy's Sandusky, OH Macy's
District LP Mgr Dick's Sporting Goods Columbia, MD Dick's Sporting Goods
Regional LP Mgr Belk Flower Mound, TX Careerbuilder
Loss Prevention Mgr Werner Enterprises Omaha, NE Careerbuilder
Market LP Mgr Old Navy Kansas City, MO Gap, Inc.
Loss Prevention Mgr Kmart Delano, CA Sears Holdings Corp.
Loss Prevention Mgr Kmart Rio Grande, NJ Sears Holdings Corp.
Loss Prevention Mgr Kmart Wasco, CA Sears Holdings Corp.
Loss Prevention Mgr Sears Amarillo, TX Sears Holdings Corp.
Loss Prevention Mgr Sears Miami, FL Sears Holdings Corp.
Regional LP Mgr Hot Topic Saint Louis, MO Monster
Regional LP Mgr Hot Topic Boston, MA Monster

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To Get the Most Out of Your Team, Play Down Management And Play Up Coaching Have you ever thought your team had more to give, but you weren't quite sure how to get it out of them? Have you ever wanted them to play to their potential but didn't quite have the right playbook to make it happen? Have you ever felt frustrated that, despite your best efforts, you're still barely able to move the needle on your team's performance? Join the club.  (Which type of manager are you?)

The Parachute Packer - The Best Story I Have Ever Heard This past winter, Lieutenant General Stuart Beare spoke to a Leadership Class. He told the best story that Forbes writer Karl Moore had ever heard.   (Who's your PP?)
One Thing Employees Need (But Rarely Get) If you want to be considered a great employer, providing your employees with higher pay, better benefits, extensive training, and greater opportunities are definite factors. But if you don't have the resources to do all that, it's alright, because one thing you can give your employees is more important.  (And easiest)

Your Desk is Making You Stupid Your desk, scientists reported recently, is trying to kill you. Scientists discovered that when we sit all day, "electrical activity in the muscle drops...leading to a cascade of harmful metabolic effects." But now there's new evidence of the harm of sitting. Not only is it making you fatter, it might also be making you dumber.  (Follow Einstein and Darwin's leads)

"I like work; it fascinates me. I can sit and look at it for hours." - Jerome K. Jerome

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Tip of the Day - Sponsored by Vector Security

Always doing what's right for the industry, for your company and for yourself is obviously what everyone wants to do every day. However at times the three objectives may be at odds with each other and the balancing act is what you have to live with at 2 a.m. when you're staring at the ceiling alone. In the beginning it's easy because one doesn't yet understand the bigger picture and how your actions impacts not just your career but also the people around you. But as you progress, or just get older, you begin to realize that you're a part of a bigger industry and that your actions and decisions are impacting the company's and people you're working with. Thus you begin to face the ultimate leaders dichotomy - making the decisions that are right for your company and role but are not viewed by your colleagues as what's right for the people. And then, fueled by those claiming to be industry saviors, you face, or should I say you hear behind your back, the criticisms. All the while knowing that those same executives would be forced to do what you did if they were the ones responsible for making those same decisions. At the end of the day it's all about doing what's right for your business because quite frankly if you don't you won't even be in a position to do anything at all for your industry or for yourself.

Just a thought,
Gus Downing

Gus Downing

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