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Picture: Kevin Morrison
Kevin Morrison
was promoted to Director of Fraud and ORC for Lowe's. Kevin has been with Lowe's since 2001, holding the titles of District Loss Prevention Manager, Senior Investigator, Manager of LP Operations, and Manager Corporate Investigations & Organized Retail Crime. Before joining with Lowe's, Kevin spent nine and a half years at Target in the field of Asset Protection. Congrats Kevin!

Video: Australia's Operation Lightfingers

Operation Lightfingers: Australian retailers' blitz on shoplifters. This video is a must watch for everyone in the loss prevention field. In the past year, Operation Lightfingers has caught 72 shoplifters on 92 offenses. Operations such as Lightfingers have been seen to cut Australian shoplifting in half. This video includes an interview with Mike Ramsey, Australian Retail Association Security Chief.  (Source

A number of publications picked up the UK's Retail Fraud Survey results about how 22% of LP executives believe collaboration on any level was "unnecessary" - in this writers opinion a sad commentary for our industry to be publicized "Of those that wanted to work together, the biggest issue was senior retail figures prevented collaboration as they were afraid of losing a competitive edge by sharing information with competitors. This is an unnecessary worry, as the shared data would be things like theft patterns, which will have no impact on the competitiveness of retailers; but failure to assist each other in tackling shrinkage is actually eating into their profit margins and the health of the sector.” Only 55% of retailers are collaborating with each other in their battle against theft and fraud despite seeing collective shrinkage reach 1% of sales, according to Martec International’s Retail Fraud Study. Certainly the old school mentality of not sharing information in this "information age" has deep roots and at times has been warranted. Our LP industry here in the U.S. saw it directly years ago when the now defunct May Company Department Stores stopped allowing their LP Directors from attending the NRF LP Shows in the early 90's because someone leaked valuable and sensitive corporate information. But to truly evolve and strengthen our industry's ability to impact ORC and criminal activity, we all must be able to communicate together as a group. However everyone must also realize the limits of those communications and act accordingly. (Source

Vulnerabilities in POS payment terminals demonstrated at Black Hat conference Vulnerabilities found in three popular payment terminal models can result in credit card data theft, researchers say. Three widely deployed payment terminals have vulnerabilities that could allow attackers to steal credit card data and PIN numbers. Two of them are particularly popular in the U.K., but are also used in the U.S., while the third is widely deployed in the U.S., Nils said. The researchers declined to name the exact device models or the companies that manufacture them because they wanted to give vendors enough time to address the issues. Stickers were used during the live demonstration to cover logos and text printed on the devices that could be used to identify them. Vulnerabilities in their payment applications give attackers control over various components of these devices, like the display, receipt printer, card reader or PIN inputting pad, and can be exploited by using specially crafted EMV (Chip-and-PIN) cards, Nils said. These cards have a malicious code written on their chips that gets executed when they get inserted into the terminals' smart card readers. the researchers used the same method to install a Trojan program designed to record card numbers and PINs. The recorded information was then extracted by inserting a different rogue card into the payment terminal. Criminals can also leverage these vulnerabilities to trick store clerks into thinking that a transaction was authorized by the bank when in fact it wasn't, allowing them to buy things without actually paying. (Source

3rd Annual MVaaS Summit – Unleash Video – Presented by Envysion October 7-9, 2012 This year the summit will focus on how we all can unleash the power of MVaaS in the market, the channel and across all potential customer segments. Managed and hosted models open up new video capabilities and never before thought of applications of video including video-driven business intelligenceTM, secret shopping and remote security services. Video is no longer constrained to a limited value proposition with just a few users, we now have an opportunity to unleash video and deliver a tool to customers that improves decision making and drives profit improvement. (Source

Egyptian Olympic Committee Chairman approves the team, coaches, management and doctors wearing & using counterfeit Nike and Adidas merchandise because the real stuff is just too expensive
. The tracksuits and bags of Egypt’s Olympic team are emblazoned with the familiar Nike and Adidas logos, and the country’s committee chairman says that’s good enough — even though they’re fakes. "We signed with a Chinese distributor in light of Egypt’s economic situation," Gen. Mahmoud Ahmed Ali told AP. And what if the sports apparel brands don’t like it? Oh well! (Source

Retailers’ Idea: Think Smaller in Urban Push With the suburbs saturated with retailers and young people moving back to the cities, retailers are following them with smaller and very focused stores, all in an attempt to get them in their stores. Office Depot, Wal-Mart, Walgreens, Target and a host of others are all planning smaller stores to take on the city pushes all over the country. What does this mean for LP and how will shrink be impacted? Urban life is tougher then the burbs! And with this push comes the need for special programs designed specifically for those stores. Family Dollar did it years ago by creating an urban plan for LP. (Source

Tesco's - Fresh N Easy stores on the west coast cuts LP staff by 50% in a mass layoff company wide They also converted a number of LP positions to an outside vendor (guard service). Rumors have it Tesco is positioning their U.S. division for sale.

Wet Seal fires their CEO, faces a discrimination lawsuit and sales are sliding - and now they're bringing in the consultants Wet Seal, which operates about 550 stores around the country, cut its outlook for the second quarter ended July on Monday. Sales in stores open at least a year plummeted 13% to 14% through the third week of this month. Wet Seal is also facing a racial discrimination lawsuit filed by three former managers who allege that the company had a high-level policy of bias against its African American workers. The lawsuit accuses the struggling clothier of firing and denying promotions and pay to its black employees in favor of hiring white workers who better fit the company's "brand image." And now word has it they're bringing in a consulting firm to rip it apart. (Source

Best Buy Pay Expert Consultant Said to Quit Over Retention Bonuses A compensation consultant to Best Buy Co. (BBY)’s board quit after the electronics chain awarded more than 100 managers retention bonuses without tying them to performance, said three people with knowledge of the matter. (Source

Is technology stripping us of critical human interaction skills? And is it already appearing in all walks of life
? As electronic communication becomes more widely used, our face-to-face interaction skills are beginning to suffer. We know how to text, Skype, and FaceTime, but some of us seem reluctant to engage in a meaningful face-to-face conversation. We value technology because it saves us time, provides conveniences and helps us to be more efficient. But we must also recognize its potential to strip us of critical human connection skills. This high-tech challenge has a low-tech solution. We need to strike a balance; we must continue to emphasize the importance of technology - a resource we cannot and will not stop exploiting - and at the same time emphasize the importance and value of analog leadership. (Source

C-stores Raided in Nationwide Synthetic Drug Crackdown Drug Enforcement Administration (DEA) agents teamed with local police in multiple states to raid shops and convenience stores suspected of selling synthetic drugs such as K2 and Spice. Stores in nearly 100 cities were raided as part of the first-ever nationwide crackdown on the drugs, according to USA Today. The raid comes less than a month after President Obama signed a federal ban on synthetic drugs, which are often labeled as bath salts or herbal incense. (Source

Video: Cigarette smuggling on the rise as taxes skyrocketStreet gangs are getting in the business of smuggling cigarettes into Illinois and making big money
. John Chambers, head investigator for the Illinois Department of Revenue, says cigarette smuggling now rivals illegal drug smuggling, and street gangs are getting involved. "Keep in mind this is very similar to drug activity, smuggling drugs, and there could be concealed compartments, false floors in the bed of a truck, much like drugs, all packed with cigarettes," Chambers said. In a recent study, University of Illinois at Chicago professor David Merriman found 75 percent of cigarettes in Chicago didn't have the proper tax stamps. It's happening all over the U.S. to avoid state and city taxes that are vary from state to state. (Source

Father takes justice into his own hands, smashes up a store over bath salt sales
. An angry parent with a baseball bat smashed display cases in a head shop in Watertown. The father’s son was recently hospitalized due to an overdose from bath salts that he purchased at the store. When the father went to the store to just ask them to stop selling the substance, he lost control, now facing charges of degree criminal possession of a weapon, third degree criminal mischief and second degree menacing, but has no regrets for his actions. (Source

Richmond, Va., Family Dollar clerk killed in robbery by three suspects after closing the store
. The store manager had just shown the new clerk how to close the store when three suspects approached them outside saying we want cigarettes. The manager and clerk had just locked the door, so the manager told the three that the door was locked and left. A short time later the clerk was found shot in his car. (Source

Cal. security officer faces off with armed robbery suspects A security guard faced off with a masked gunmen, firing a shot and foiling a robbery in a crowded Hawthorne convenience store, police said Tuesday. Police plan to investigate whether there is any connection between the crime at the 7-Eleven at 3300 W. 135th St. and a holdup involving masked robbers at a Radio Shack in Torrance last week, Swain said. (Source

Video: Orlando SWAT arrests burlgar after standoffOrlando SWAT arrests burglary suspect after standoff
. A man accused of burglary of the Bose Electronics store is now under arrested, but it required a SWAT team to get the man out of his home. Orange County deputies called in a SWAT team as they tried to serve a search warrant at the Magnolia Villas, south of downtown Orlando. Deputies say that the suspect, Joseph Diaz Cotto, 28, would not come willingly, even after tear gas was set off into his apartment. He was eventually found hiding in an attic. Diaz Cotto and two other people are accused of stealing $30,000 worth of Bose electronics equipment from a store which was burglarized on Wednesday morning. A stolen van was used in the crime. The two other suspects had already been arrested when deputies tried to arrest Cotto. (Source

Video: Blue Light Special? Jewelry heists at 2 Kmarts

Two Kmart jewelry counters hit in a month near Fresno
. A man with a duffle bag or suitcase ran out of the store in the middle of the night with several thousand dollars of jewelry. The suspect smashed the glass showcase, pulled what merchandise he could into the bag and was out of the store in less then two minutes. (Source

Police Arrest Jewelry Store Burglar in Sinton, Texas
. Sinton police said an anonymous tip helped put a suspected burglar behind bars. Investigators said 20-year-old Audelao Rios was seen on surveillance video breaking into Rogers Fine Jewelers just after 2 a.m. Wednesday in downtown Sinton. Once inside, Rios reportedly took some cash and over $1,000 of jewelry, but a tip to police and some good detective work lead police to the motel Rios was staying at. Rios was arrested and charged with burglary. He now sits in the San Patricio County Jail. (Source

One VP of LP position to be named this week

Quarterly Same Store Sales Results

GNC Q2 up 12.9% at company owned stores and revenue up 19%
Whole Foods Market Q3 up 8% with total sales up 14%
Cabela's Q2 up 4.7% with revenue up 12%
Loblaw Q2 up 0.2% with sales up 1.1%
Radio Shack Q2 flat with revenue up 1% but records a $21M loss. (Source

A thank you to our readership - Reaching well-over a half a million readers annually. We'd like to thank all the readers of our Daily for your time and your support.  As we here at the Daily are absolutely dedicated to delivering the information and news that helps you with your jobs, your careers, and this industry.  It's always been our goal to help develop the LP community through sharing all of the information we can find that may have an impact on all of us.  Each day over 15 hours goes into the Daily's development and over the last two months alone we've seen a 20% increase in readership.  So if you have a colleague or a friend that could benefit from our Daily please feel free to send them the "Daily" - helping the LP community grow each and every business day.  It makes us stronger as a whole which allows us to have more of an impact individually.  Thanks for reading!  And if you have anything to share please feel free to do so!

Retail Loss Prevention Conference 2012 - Mark your calendar for Canada's BIGGEST Retail Loss Prevention event. Just Announced: Conference agenda expanded to one and a half days, September 11 to 12. Click here for more information.


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Upcoming Articles

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

"Taking Over a Loss Prevention Department" by Mike Keenan, VP of LP for GAP North America. A Chapter From Retail Crime, Security, and Loss Prevention An Encyclopedic Reference


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 Investigators Support Retail Theft Case Leading to Arrest

eBay Global Asset Protection supported investigation into retail theft case involving price switching of LEGO products of Florida woman leads to her arrest. The suspect allegedly pulled off the scheme by switching labels for pricey Lego toys that retail for more than $100 with ones for cheap $7 items like baking pans, reports CBS 4. She would then sell, pack and ship them to customers on eBay. "At first I thought, 'This is crazy. How can it be this easy to steal this much?'" Lauderhill Police Detective Alex Iwaskewycz, who led the investigation, told CBS 4. "There were months she was making over $30,000." Det. Iwaskewycz spent months tracking the suspects, pilfering through her store receipts, bank records, and even her trash. At the time she was arrested, she had $36,000 in her bank account. The suspect was said to frequent big chains like Walmart and Target, where at one time she allegedly switched the label on an Easter egg for her son to save money. Click here for full article.

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Over the next few weeks the Daily will be publishing Mike Keenan's chapter  "Taking Over a Loss Prevention Department" from the book Retail Crime, Security, and Loss Prevention, 1st Edition, An Encyclopedic Reference.

Book authors Chuck Sennewald & John Christman
Published and released February 20, 2008.
Imprinted by Butterworth-Heinemann
ISBN: 9780123705297

"Taking Over a Loss Prevention Department"

by Mike Keenan, CPP, CFI
Vice President of Loss Prevention
GAP North America

Does your LP Department look at productivity by individual? One of the most effective tools to monitor and increase productivity, are ranking reports. By ranking each person against their peers in every measurable category, you can identify top performers and poor performers. It is not unusual to discover that a small portion of your staff is producing the majority of your statistics. This is especially true with internal and external cases. By improving or replacing poor performers, you can raise the bar for everyone and increase overall productivity. Specifically, these reports will enable you to recognize good performance. A recognition program directly tied into individual productivity is generally well received by investigative personnel. It creates competition, which most LP people thrive on, without creating quotas. Quotas have resulted in numerous civil litigations and should be avoided.

Ranking reports also help you identify areas that might need additional training. For example, if all of your Investigators have low internal case productivity, what training is needed to improve their performance?

Recognition should be an ongoing component of your Department. People are your most important asset. They need to be cultivated on a frequent basis. Do you appreciate being recognized for your performance? Of course you do. Well your people do too! If they don’t already exist, develop multiple ways to recognize good performance. It can be for statistical performance, effectively handling a specific incident, leadership, any type of metrics. Just be sure to make it meaningful. Too much recognition can take away the value to the employee. This is a good area to partner with HR. They usually have a number of programs that they can share with you. A good recognition program encourages people to strive for better performance. The better your people’s performance, the better your results.

Continued tomorrow -- click here to read what's been published so far

Mike Keenan is currently the Vice President of Loss Prevention for GAP North America. His prior experience includes sixteen years with Macy’s West where he started as an LP Manager and worked his way to Vice President of Loss Prevention. He then held similar LP positions with Ross Stores, Longs Drugs and Mervyns. He started his career with the Federal Bureau of Investigation. Mike has a Bachelor’s Degree in Criminal Justice from California State University, Sacramento. He has served on the NRF LP Advisory Council and was the Chairperson in 2001 and 2002. He is a licensed Private Investigator in the State of California. In addition, he taught Retail and Corporate Loss Prevention classes at Golden Gate University in San Francisco, California.

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Trade Associations, Conferences & Series

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

Part 4: IOBSE Founders Panel

George Logan & Oliver Wainwright

click to watch video


The IOBSE episodes sponsored by
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IOBSE Founders Panel - In this 5 part series filmed at the International Organization of Black Security Executives (IOBSE) Conference, George Logan and Oliver Wainwright, two of the original six founders of the IOBSE, did a Q & A session. Moderated by Prestell Askia, George and Oliver answered her questions, as well as a few questions from the audience. Some topics discussed were their backgrounds in the LP field, who influenced them most in life, what they're most proud of, the most important lessons they learned and how their experiences molded them as a person. Filmed April 2012. Stay tuned tomorrow for the final part.

Season One Episode Release Dates

July 30 Never Eat Alone - IOBSE Conference Session with  Suni Shamapande, Divisional Vice
President of Loss Prevention for Sears Holdings Corp. & Keith White, Sr. Vice President
of Loss Prevention, The Gap Stores.
August 6 Interviews with: Suni Shamapande & two IOBSE student members; George Logan &
Oliver Wainwright, two of the IOBSE's founding fathers; and Gene Smith, President of
the Loss Prevention Foundation
August 13 Se-Kure Controls with Roger Layden President and John Mangiameli VP of National Sales


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Fed's bust store owner and two others for buying and reselling black-market liquor, baby formula, and untaxed cigarettes in Vegas and running a retail theft ring. Sunny Ramo, who owns a c-store in North Vegas, is accused of buying bottles of liquor and baby formula that he believed had been stolen from grocery stores in the Las Vegas area and purchasing cigarettes that hadn't been taxed by the state. Authorities say he bought the items from undercover police and an ATF agent. They had been investigating him because he was recruiting kids to steal items for his store. "In this particular case, what made this operation so heinous is the suspects involved in this were recruiting young men and young women, basically children, to steal from (other stores) and bring in the product," Cassell said. "That's unacceptable." (Source (Source

Police bust 5 men for running a bogus check-cashing ring targeting Publix stores throughout Florida
The suspects admitted to cashing six counterfeit checks totaling $2,900 at Publix Super Market stores on the same day last week, according to the Hernando County Sheriff’s Office. It was later learned alleged ringleader Leon “Slim” Stovall was under a separate investigation by state police for "several hundred" fake check cashing cases at Publix stores throughout the Southeast, causing the Lakeland, Fla.-based retailer a "substantial loss." Publix spokeswoman Shannon Patten said the Lakeland-based company has been working on the case with law enforcement for more than a year. Patten said the bogus checks totaled "hundreds of thousands of dollars." (Source (Source

"Organized group of shoplifters" stole eight cell phones from Radio Shack in Richmond Centre, Ky., and may be connected to a similar shoplifting spree in Georgetown. Police say that a group of seven to eight men and women entered the store and spread out into different areas. "A member of the group distracted employees while the remainder of the group examined other items in the store," Brock said. "One of the males then purchased a Blue Tooth headset and the group left the store and departed in three vehicles." It later was learned that the Blue Tooth headset purchased at the Richmond store had been returned to the Radio Shack store in Georgetown for a refund. (Source

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
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Dept Mgr Store LP & Safety Lowe's Greenville, MS Lowe's
Asset Protection Mgr Sam's Club Great Falls, MT Walmart
Market AP Mgr Walmart Gulfport, MS Walmart
Sr. District Investigator Home Depot Delray Beach, FL Home Depot
District LP Investigator TJMaxx Phoenix, AZ The TJX Companies, Inc.
Loss Prevention Mgr Kmart Willow Grove, PA Sears Holdings Corp.
Loss Prevention Mgr Kmart Philadelphia, PA Sears Holdings Corp.
Loss Prevention Mgr Sears Federal Way, WA Sears Holdings Corp.
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Kevin Morrison was promoted to Director of Fraud and ORC for Lowe's.
Joshua Rea
was named District Loss Prevention Manager for Nike.

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Better Way to Coach Employees Coaching is the process of preparing your employees to succeed. Good coaches can create the mental resources, emotional resilience, business skills, and career development that employees need to achieve their goals. Unfortunately, while coaching is a well-established part of the sports world, it's a neglected art in the world of business.  (Five-step process)

Motivating Teams: What You Can Learn From Science We all read a lot about motivating people. But we usually try to learn from ourselves, and from other businesses. That narrow perspective can be limiting. Scientists don't get leadership training; they're not taught how to manage teams. So they learn the hard way: by experience. How do you keep a group like that motivated?   (Four techniques)
How To Turn An Introvert Into An Extrovert (Or Vice Versa) Although it’s sometimes not easy to apply labels, Carl Jung theorized that people have both an introverted and an extroverted side, but one side will be more dominant than the other. Introverts will tend to focus more on their inner activity. In contrast, extroverts are more intensely concerned with the external, outside world.   (Six tips to use)

Why You Need to Have Fun to Be Successful Ron Culberson is the 2012-2013 president of the National Speakers Association and is a nationally recognized expert on the benefits of humor and laughter. In this interview, Ron talks about his two step approach to success, how to make your job more enjoyable, how to get good at something, and more.  ("Do It well. Make it Fun")

"I always try to go the extra mile at work, but my boss always finds me and brings me back."
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