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Number of Retailers Impacted by Breaches Doubles
The retail race for digital transformation is being run without the safety of security measures.

As retailers of all stripes try to keep up with competitors through digital transformations, the data indicates they're still not building in security into those technical makeovers. A new report out this week shows the number of US retailers reporting being breached in the last year more than doubled to 50% in 2018, compared with only 19% in 2017.

The data was collected for the "2018 Thales Data Threat Report, Retail Edition," which also indicates that the pool of retailers being hit by breaches is broadening with the jump in incidents. The study shows that the rate of retailers reporting they'd been hit by at least breach anytime in the past shot up to 75%, from 52% last year. darkreading.com

GDPR Drives Down UK Insider Threat While U.S. Sees Increase
Ex-Employees Cause 13% of Cyber Security Incidents
Two months after the EU's General Data Protection Regulation (GDPR) compliance deadline, data shows that the insider threat in European countries is declining.

The threat from inside an organization has fallen by 8% in the past 12 months to 65% of all incidents in the UK, while in the US it has grown by 8% to 80%, according to an independent study commissioned by data security company Clearswift.

The findings are based on a survey of 400 senior IT decision-makers in organizations with more than 1,000 employees across the UK, Germany and the US.

The study also shows that the insider threat was lower for companies with more than 3,000 employees (36%), which possibly indicates more robust internal processes and checkpoints at larger firms.

Threats from ex-employees account for 13% of all cyber security incidents across all respondents, highlighting a clear need for better processes when staff leave an organization, the study report said. computerweekly.com

6 Ways to Tell an Insider Has Gone Rogue
Malicious activity by trusted users can be very hard to catch, so look for these red flags.

The key to dealing with insider threats is to keep an eye on all those accessing your most sensitive data in a way that does not intrude on privacy. "There are many critical behavior red flags that you can look for in order to accurately and quickly pinpoint insider threats," Wyatt says. "Three of the major red flags we see are data exfiltration, obfuscation, and bypassing security measures."

1. Attempts to Access Unauthorized Systems Keep an eye on employees or trusted outside users - such as a contractor - who attempt to access systems to which they don't have the rights or have never accessed previously. "Watch for unusual patterns of access," "Insiders will be on the hunt for information and will open files they don't need to do their job."

2. Privilege Escalation Insiders who don't have access to target systems or data will often attempt to elevate their access privileges to get at it. So watch out for employees or contractors who suddenly gain admin rights or have access to documents outside of their departments or job functions.

3. Emailing or Downloading Data to Personal Accounts A big red flag that a user is going or has gone rogue is when she starts emailing or downloading data to her personal email accounts. There is a chance that all the user wants to do is work on the data at home - which is risky, to say the least.

In many instances of data and IP theft, rogue insiders have simply emailed sensitive data to their own accounts or downloaded it to personal thumb drives and other portable storage devices. IBM actually instituted a no-thumb drive policy this year in all facilities. Employees are not allowed to bring them on premises.

4. Behavioral Red Flags Not all rogue insider behaviors are motivated by financial gain. In fact, in a substantial number of incidents, malicious behavior has been triggered by disgruntlement, a desire to get revenge, and other personal triggers.

If an employee or other trusted user displays certain negative behavior traits in the workplace, monitor that behavior, says Jeffrey Slotnick, president of Setracon Enterprise Security Risk Management Services.

Behavioral indicators to look out for include sudden or unusual introversion, compulsive or destructive behavior, passive aggressiveness, a sense of entitlement, and the inability to assume responsibility or take criticism, he says. Lack of empathy and a predisposition toward law enforcement are other red flags, Slotnick says.

Monitor employees under financial distress, adds Gurucul's Nayyar. "Look for wage garnishment, loans on 401(k)s, large medical bills, in conjunction with travel to foreign countries," she says.

In addition, be wary of insiders who suddenly start behaving in an atypical manner. For example, if an HR employee who typically works between 9 a.m. and 5 p.m. Monday through Friday suddenly starts working after hours and on weekends, take note, Spinner says.

5. Attempts to Obfuscate Activity Watch for insiders trying to cover their tracks, Spinner says. An employee, for instance, might gain access to an executive's inbox, open and read emails, and then mark them as unread on the assumption his activities are not being monitored, Spinner says.

Some of the activities that indicate attempts at obfuscation are the use of Tor browsers, unusual use of encryption software, and Incognito and Private Browsing Mode

6. Attempts to Bypass Security Controls "Savvy rogue insiders know or assume that there are security measures in place to keep an organization safe," Wyatt says. So they will try and find ways around them. Therefore, it is important to keep an eye out for installation of proxies, use of password-cracking apps, copying and pasting sensitive data into seemingly innocuous files, and attempts to disable or tamper with security tools such as DLP. darkreading.com

Innovative Use Cases Leveraging RFID In Retail

On Amazon, Fake Products Plague Smaller Brands
Making it Easy To Become Sellers Creates Loophole
Counterfeiters hijack companies' own listings with low-quality products and cut-rate prices

Counterfeiters, though, have been able to exploit Amazon's drive to increase the site's selection and offer lower prices. The company has made the process to list products on its website simple that also has allowed impostors to create ersatz versions of hot-selling items, according to small brands and seller consultants.

When retailers log into Amazon's website for sellers, most product pages have a button next to the item that makes it easy for someone to list the same product. That strategy works well for consumers and Amazon on widely distributed items like shampoo and sneakers because it increases competition and that usually leads to lower prices for consumers.

Most small brands, however, are closely held and harder to get access to outside of authorized distribution. So, in some cases, counterfeiters are listing their versions of hot-selling items on the same page and at lower prices. Amazon's pricing algorithms see the lower price and then assigns the default "add to cart" option to the counterfeiter, elbowing brands out of selling their own goods.

"The reality is this is a cat-and-mouse game," said James Thomson, a brand consultant with Buy Box Experts. "You have to find a way to remove more and more of the cheaters. As soon as [Amazon] closes one loophole, somebody else finds another loophole."

The Amazon spokeswoman said that less than 0.1% of site page views were flagged for potential infringements, and that the company investigated and takes action on 95% of brand-registered products within eight hours. The company also has developed algorithms and other systems to identify fraud. wsj.com

Amazon Workers' Suit Seeks Easier Path to Overtime Pay
A putative class action in federal court claims that workers' unpaid lunch breaks and time spent in end-of-shift security checkpoints should count toward the 40-hour weekly threshold they must reach before collecting overtime pay.

Amazon is accused in a wage-and-hour suit of imposing wrongful barriers to overtime pay for 10,000 New Jersey warehouse workers.

The suit, Vaccaro v. Amazon.Com DEDC, was brought under the New Jersey Wage and Hour Law on behalf of anyone who has worked in one of the company's facilities in the state over the past two years. law.com

Online apparel sales rose 7% in 2017
Last year, 21% of annual apparel sales came from website purchases, and 76% from in-store purchases, according to the report. And while in-store purchases declined 3% compared to 2016, online apparel sales rose 7% to $46 million. Almost half of U.S. online shoppers bought apparel last year, and the annual apparel online spend per buyer rose 11% compared to 2016, according to NPD. retaildive.com

Ebay slashing 274 jobs amid rising costs

Facebook to Start Taking Down Posts That Could Lead to Violence

Director of Data Privacy and Security, Legal posted for Netflix in Los Angeles

Update to Friday's Post: More than $9 million in goods stolen from Home Depot, CVS, others sold at flea markets; 3 charged
ANDERSON COUNTY, S.C. - Two men and a woman are accused of fencing millions of dollars' worth of goods stolen from Upstate stores for resale at flea markets.

Anderson County deputies, working with several retail crime investigators, say they determined in June that shoplifters were stealing large amounts of merchandise from various stores in Anderson, including Home Depot, CVS, T.J. Maxx, Belk and Publix.

The shoplifters would then sell the merchandise for a fraction of the retail value to other people who acted as fences. The fences would resell the merchandise at flea markets for profit.

Investigators estimate that retailers lost $9 million to $12 million to the fencing operation over a five-year period.

Investigators identified Troy Fowler, 75, of Piedmont, and William "Billy" O'Leary, 44, and Peggy O'Leary, 41, both of Anderson, as suspected fences in the operation.

On July 12, investigators searched properties belonging to the O'Learys and Fowler. They recovered an estimated $121,997 in stolen merchandise was recovered from both locations.

The O'Learys and Fowler were arrested and charged with organized retail theft. wyff4.com

Polk County, FL: Nationwide ORC Ring busted; over $30,000 returned for gift cards
A group of suspected thieves allegedly involved in a nationwide theft ring, originating in Tampa, are now behind bars. The Polk County Sheriff's Office says the 4-member theft ring bought people's identities off the dark web, created cards in their names, and then made fraudulent purchases at three Bay Area JCPenney stores. They then returned the merchandise for gift cards totaling more than $30,000. The sheriff's office started investigating after receiving a call from JCPenney, which reported dozens of customers complaining, saying purchases were made in their name without their knowledge. Investigators linked the group to the stolen identities of at least 60 people, including three people in Florida. Deputies say the group made purchases at JCPenney stores in Hillsborough, Pinellas, Pasco, and Polk counties and then sold the gift cards for cash. Despite only four warrants being issued, deputies believe more people are involved. fox13news.com

Oconto, WI: C-Store Employee charged with $68,000 theft of Lottery Tickets
Linda M. Elliott, 60, of Lena, faces six felony counts of theft-business setting for taking the tickets over the course of 10 months, ending in early February 2017. That would mean the average amount of tickets stolen every day was nearly $222. Elliott told an Oconto Falls Police officer that she didn't think she was taking it directly from store's owner. greenbaypressgazette.com

Little Rock, AR: Police seek paint crew members in $54,000+ theft from Jos. Banks stores
Arrest warrants have been issued for three members of a four-man Texas paint crew accused of stealing more than $54,000 worth of clothing from Jos. A. Bank Clothiers while they were supposed to be renovating the two Little Rock stores. A fifth defendant, a security guard from Benton who had been hired to watch the crew, has already been arrested. All five men are charged with Class B felony theft, which carries a maximum sentence of 20 years in prison. arkansasonline.com

Wyandotte, MI: Man charged with 22 crimes for selling items stolen from stores at pawn shop
Canton Township officers and Michigan State Police troopers investigated alleged criminal enterprise activity at Tony's Pawn Shop on Fort Street in Wyandotte for five months. On Wednesday, Canton Township police executed a search warrant at the pawn shop. Anthony Paul Wojtala, 25, was arrested during the search. Officials said Wojtala purchased high-value items that had been stolen from Home Depot, Target, Walmart, Sam's Club, Kroger and Meijer stores in Canton Township. He is accused of buying the stolen items and selling them through Tony's Pawn Shop. Wojtala is also accused of selling some of the stolen items from his home in Wyandotte. Wojtala was arraigned on 22 charges:

One count of conducting a criminal enterprise -- a 20-year felony; Two counts of using a computer to commit a crime -- seven- and 20-year felonies; Eight counts of organized retail crime -- five-year felonies

Six counts of second-hand dealer, failure to display or record transactions -- six-month misdemeanors; Five counts of receiving and concealing stolen property -- five-year felonies; Habitual offender -- fourth offense. clickondetroit.com

Skimming Gang of Two - Treasure Trove of Tools of the Trade
Florida Man Busted in Wisconsin Hitting Retailers Pleads Guilty
Western District of Wisconsin, announced that Jorge Consuegra-Rojas, 42, Miami, Florida, pleaded guilty on May 31, 2018, to one count of conspiracy to commit access device fraud and one count of possession of 15 or more counterfeit access devices. Sentencing is set for August 21, 2018.

Consuegra-Rojas and another individual were arrested in Mauston, Wisconsin, on September 12, 2016, after attempting to use a counterfeit credit card at a Festival Foods store. A search of Consuegra-Rojas's vehicle revealed counterfeit credit cards, false identification documents, 280 gift cards, multiple cellular telephones, two computers, three flash drives, six skimmers, and a credit card reader/writer.

The subsequent investigation revealed that the three flash drives and two computers contained a total of 1,679 stolen credit card numbers. The stolen credit card numbers were used to buy gift cards and other merchandise at a variety of retailers throughout Minnesota between September 6 and September 12, 2016, including Home Depot, Walmart, and Sam's Club.

FBI still looking for victims. justice.gov

Estill County, KY: 2 Burglars steal nearly $2,300 of cigarettes from C-Store

Hoboken, NJ: Liquor Store Burglary Suspect arrested; $4,000 of wine stolen and $6,000 in store damages

Soho, NY: Robbery suspect caught two days after escape from police during arrest for stealing shirt from Nike store; Derek Robinson has been arrested 23 times since 1995

Bloomington, IN: Two women arrested for theft on $1,300 of merchandise from Lowe's

Palmer Township, PA: Pair of Bath & Body Works shoplifters arrested for $700 theft

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