Theft is a Major Problem for Retailers, But Data is Hard to Come By
Companies say organized retail crime is on the rise, but there's no data to prove it

Retail theft is real and causes major issues for businesses, but companies are not required to report data on how it is affecting them and it is nearly impossible to verify their claims.

Retailers have zeroed in on organized retail theft as a top priority, as more and more companies blame crime for lower profits. But it is difficult for companies to tally just how much stolen goods affect their bottom lines - and even tougher to confirm their claims.

More than a dozen retailers, including Target, Dollar General, Foot Locker and Ulta, called out shrink, or more specifically retail theft, as a reason they cut their profit outlook or reported lower margins when they released earnings in May and June. Those mentions could flare up again as a flurry of retail companies will report financial results starting next week.

While organized theft is a real concern, it is nearly impossible to verify the claims retailers make about it. Companies are not required to disclose their losses from stolen goods, and it's a difficult metric to accurately count, leaving the industry, investors and policymakers few choices but to rely on their word.

What is shrink, and how do retailers tally it?

Shrink is a retail industry term that refers to lost inventory. Retailers have repeatedly said organized theft drove shrink in recent quarters. But they rarely, if ever, break down how much of the inventory loss is due to crime and how much of a role other causes played.

They also don't disclose their total losses from shrink and how they have changed over time. That makes it impossible to verify whether the issue has gotten worse and just how much of a bite it has taken from their bottom lines.

Is retail theft really on the rise? It's hard to say

The NRF's study is the best guess the industry can make about how shrink affects companies. But the data, which is anonymized, gathered on the honor system and largely based on estimates, isn't as clear cut as it appears. The actual amount that American retailers lost to shrink in 2021 - and how that number has changed over time - isn't known.

The tricky business of counting theft

Retailers have always had to contend with shrink, but they have long relied on estimates and educated guesses to determine how an item was lost. Retailers use sales patterns, inventory trends, historical data and, when available, evidence such as surveillance footage to estimate how merchandise is lost. cnbc.com


'Open Season' on Retail Security Guards
Security firm owner losing contracts after Banko Brown Walgreens shooting

Owner of security firm involved in two recent shootings speaks out
The owner of a security company spoke out to KTVU on Wednesday, after two of his guards were involved in shootings. "They have to be 100 percent focused in what's going on," said Jim Vierra CEO of Kingdom Group Protective Services of Manteca.

In April, one of his security guards shot and killed shoplifting suspect Banko Brown at a Walgreens in downtown San Francisco. On Monday night, another one of Vierra's guards shot and wounded robbery suspect Jonathan Mackey at the Home Depot in San Carlos.

"It is a huge responsibility when you put a gun in a person's hand to expect them to respond perfect every time," Vierra said. Vierra says he can't discuss the specifics of the Brown case. "It was an absolute tragedy for a loss of life," he said.

San Francisco District Attorney Brooke Jenkins has declined to charge the guard who killed him.

But the guard, Michael Earl-Wayne Anthony, has since left the industry. He's also been fined $1,500 by the state's Bureau of Security and Investigative Services - not for killing Brown, but for carrying a concealed weapon without a permit and for not wearing a required badge identifying him as a guard.

Vierra says it was up to the guard to follow the regulations. But he says the state needs to allow guards to use "less-lethal" weapons other than Tasers, which require you to be close to the suspect.

In the Home Depot incident, authorities say the guard opened fire after the suspect grabbed the guard's own baton and hit him with it.  "As far as our rules of engagement, our officer acted appropriately," Vierra said.

He says the two incidents are proof that criminals are brazen enough to steal even in the presence of guards. "It's open season for anyone to walk in and believe that they have the right to take something," he said.

Vierra said his company has lost security contracts with about 25 Walgreens stores in the wake of Brown's shooting. ktvu.com


New York Gov. Kathy Hochul Facing More Pressure to Sign ORC Bill
Oneida County officials urge actions from Hochul to stop retail theft
New York State Sen. Joseph Griffo, Assemblymembers Marianne Buttenschon and Brian Miller and Oneida County Executive Anthony J. Picente Jr. recently gathered at Chanatry's Hometown Market to urge Gov. Kathy Hochul to sign legislation they hope will help crack down on and prevent organized retail crime at local businesses and establishments.

"I urge the governor to sign this bill into law so that we can help local business owners, many of whom are still struggling as we continue to recover from the coronavirus pandemic," Griffo (R-C-Rome) said.

The legislation, which has been passed by the Senate and Assembly, establishes the New York State Organized Retail Crime Task Force and will be sent to the governor to be either signed into law or vetoed.

If the bill is signed into law, it will bring together a variety of stakeholders - including those in law enforcement, prosecutors, retailers and retail employee advocates - to review current laws and provide recommendations to help prevent retail theft, enhance consumer protections and address the economic impact in the state.

There were several ideas raised and discussed in an effort to address the issue, including:

- Advocating for and advancing state legislation, as well as potential local ordinances.

- Providing additional resources and funding to small businesses to help them improve and enhance security.

- Establishing small business coalitions to allow for better networking and communication relative to criminal justice initiatives and concerns, as well as enhanced interaction with law enforcement.

- Incorporating and utilizing a uniform approach with law enforcement relative to the issue.

- The potential public exposure of shoplifters, as well as examining and researching effective preventive practices undertaken by communities across the country. oneidadispatch.com


Store Anti-Theft Lockups: Shoppers' Perspective
'Is this the grim future of grocery shopping? I hope not.'

Opinion: Grocery stores used to be my happy place. Then they started locking up the detergent
As someone with depression, I find that brick-and-mortar businesses help me avoid isolation by providing a space to be alone with others. But my happy places - supermarkets and pharmacies - say they have seen increasing theft and violence.

Locked glass cabinets safeguarding merchandise are now ubiquitous in chains like Target, Walmart and Walgreens. Asking clerks to retrieve detergent and baby formula is demoralizing enough, but businesses are implementing more severe security measures that erode customers' spirits and our social fabric, even though it's unclear whether shoplifting has become the national crisis that some retailers claim.

A grocery run shouldn't feel like visiting a prison, but that's the vibe shoppers get from extreme anti-theft measures at a Safeway in Oakland's Rockridge neighborhood. Reddit users have described them as "jarring" and "hostile."

Is this the grim future of grocery shopping? I hope not. Safeway has since expanded these security measures to other locations in Oakland, San Francisco and San Jose. While tactics such as these are intended to uphold the norms against stealing, they in fact threaten community morale, trust and social cohesion.

Organized retail theft and smaller-scale shoplifting are complex problems that require multipronged solutions. But it's unclear if beefed-up security measures are actually helping to solve these problems. And without addressing socioeconomic conditions such as inflation, poverty and opportunity deficits, the help they do provide serves merely as a Band-Aid.  latimes.com


Enhancing Active Shooter Emergency Responses
Shooter Detection Systems integrates with Hanwha Vision

The integration between the SDS Indoor Gunshot Detection System and Hanwha Vision's Wisenet WAVE VMS platform will enable organizations to automatically alert security teams at schools, office buildings, and other facilities to gunshot activity.

Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, is pleased to announce that they have integrated technologies with Hanwha Vision, a leader in next-generation vision solutions, to deliver improved safety when gun violence occurs.

The integration between the SDS Indoor Gunshot Detection System and Hanwha Vision's Wisenet WAVE VMS platform will enable organizations to automatically alert security teams at schools, office buildings, and other facilities to gunshot activity by triggering alarms, associate live video feeds with real-time tracking of assailants, and take other automated actions when gunfire is detected by the SDS system.

Hanwha Vision's Wisenet WAVE VMS is a NDAA compliant, leading IP Video Management platform designed to create tailored networked video solutions for any type of project, for use by anyone, on any device. By integrating these systems, SDS and Hanwha Vision are enabling customers to enhance their active shooter emergency response planning to include instant video capture, recording, and tracking of gun violence events.

This additional situational awareness and instant automation will alert customers and their security teams to gunfire activity faster and with more accuracy, thereby reducing response time to gun violence incidents. securityinfowatch.com


Progressive State Attorney Suspended for Being Soft on Criminals
DeSantis suspends Orlando state attorney over 'dereliction of duty' on crime

DeSantis' office says State Attorney Monique Worrell allowed criminals to 'escape the full consequences' of their actions

Florida Gov. Ron DeSantis says that Worrell, whose jurisdiction includes Orlando, has routinely allowed murderers and other violent offenders to "escape the full consequences of their criminal conduct." The governor is tapping Florida judge Andrew Bain to replace Worrell as the state attorney for the 9th Judicial Circuit.

"The practices and policies of her office have allowed murderers, other violent offenders, and dangerous drug traffickers to receive extremely reduced sentences and escape the full consequences of their criminal conduct. In some cases, these offenders have evaded incarceration altogether," DeSantis' office wrote in a statement.

"State Attorney Worrell's practices undermine Florida law and endanger the safety, security, and welfare of the communities that Ms. Worrell was elected to serve," it continued.

DeSantis highlighted the move in a news conference Wednesday morning alongside several other Florida officials. The officials, who included Florida Attorney General Ashley Moody, stated that Worrell routinely avoided mandatory minimum sentencing for gun crimes and drug trafficking offenses, as well as allowing juvenile offenders to avoid serious charges and incarceration. foxnews.com


California Workplace Violence & Safety Bill Set for Hearing
SB-553: Occupational Safety: workplace violence: restraining orders and workplace violence prevention plan

The bill has been set for a hearing on August 16, 2023 at 9:00 am.

Click here to read more about the bill


Resident in San Francisco's Tenderloin recording daily happenings to highlight crime
A Tenderloin resident has been recording what goes on in the neighborhood to show people the kind of crime that is happening there.

Mother says crime crisis 'hits different' after son was killed in DC mass shooting
 
UK: Labour launches expert team to increase crime-solving

$1M+ in Fines & 30+ Inspections for Washington Dollar Tree Stores
Washington Dollar Tree Store Fined for Worker Safety Violations
Dollar Tree company is facing $132,000 in state fines for reported work safety violations including locked emergency exit routes, improper stacking of boxes, and debris scattered on the

The fine is in connection with violations at the Tacoma Central Plaza store at 3208 South 23rd Street. A Washington Department of Labor & Industries inspection reportedly resulted in three repeat willful violations, which are issued when a business repeatedly puts employees at risk when they knew or should have known relevant safety requirements. L&I cited Dollar Tree for the same hazards for three months ago.

Inspectors reportedly found boxes in top heavy stacks more than six feet high, creating a danger of collapse, and they found debris on the floor in the storeroom and in the aisles where customers walk.

According to L&I, the agency has inspected Washington Dollar Tree stores more than 30 times in the past four years, resulting in more than $1 million in fines. L&I inspectors found that too much inventory and not enough storage space at the stores often leads to high stacks of boxes and other safety issues.

Inspectors also reported frequently seeing boxes stored in a way that blocks exits. The company is part of L&I's Severe Violator Enforcement Program, which means its stores are subject to inspections at any time. insurancejournal.com


Facial Recognition Continues to Be Effective Crime-Fighting Tool
DHS Says It Identified 311 New Child Sexual Exploitation Victims-After Forbes Reports AI Facial Recognition Push
Federal investigators have used high-tech tools to identify over 300 apparent victims of child sexual exploitation in recent weeks, DHS Homeland Security Investigations said Wednesday-after Forbes first reported the unit was using powerful facial recognition technology to investigate scores of cases that had previously gone cold.

Forbes first reported this week the government was using sophisticated artificial intelligence facial recognition tools like Clearview AI to both chase down new child exploitation leads and re-open investigations into year-old crimes, scanning more than 4.3 million images and videos to pick up on previously overlooked clues or identifying materials.

Federal officials did not confirm the use of Clearview AI or any other specific programs on Wednesday, instead saying they used "sophisticated investigative techniques," including comparing leads found online to "records of unidentified children and offenders."

Officials from the FBI, Homeland Security, Interpol, Europol and agencies as far away as Australia were able to identify adult abusers and their victims using machine learning, which gives investigators "a starting point" to use things like the species of birds singing in a video or native plants and animals that appear in the materials to narrow down a location, an official told NBC News. forbes.com


Best Buy Targeted by Boycotters
Boycotters vow to make a national retailer 'the new Bud Light'

Fresh off of the success of their boycott against Bud Light, social media political activists have set their sites on a new target.

Best Buy, the national electronics retail chain, now has a target on its back after O'Keefe Media Group published pictures of an application for a minority management program. One of the requirements for the program is that the applicant identify as Black, Latino, Hispanic, Asian or Pacific Islander. White people were excluded from applying for the minority management program, and this sent some of them wild on social media.

Workplace diversity training has been around since at least the 1960s following the introduction of equal employment laws and affirmative action. Before then, employers could deny minority applicants and face no legal recourse.

Thousands of large U.S businesses have diversity training and minority management training programs. So it might be a busy few months for the boycotters as they sift through all of the companies and products they need to abstain from in order to make sure minority management train programs are a relic of the past. thestreet.com


$1 Million Racial Profiling Suit Against Home Depot
Tyrese Gibson Alleges Racial Profiling in Suit Against Home Depot
"Fast & Furious" franchise star Tyrese Gibson Wednesday sued Home Depot for civil rights violations, alleging he and two associates were the victims of racial profiling by employees at the West Hills store in February.

The Los Angeles Superior Court lawsuit also alleges negligent hiring, supervision and retention. Two of the 44-year-old singer/actor's construction workers, Eric Mora and Manual Hernandez, also are plaintiffs in the suit, which seeks more than $1 million in compensatory damages, the amount the suit maintains Gibson has spent over time at Home Depot. Gibson also seeks punitive damages.

Gibson, "one of the most recognizable Black actors and musicians in the United States, and his associates ... experienced outrageous discriminatory mistreatment and consumer racial profiling first-hand inside the Home Depot retail store in West Hills," the suit states. "The company needs to understand that there are consequences for discriminatory mistreatment and consumer racial profiling."

Gibson and the other plaintiffs are "committed to doing their part to advance civil rights and put an end to the despicable practice of discriminatory mistreatment and consumer racial profiling at the Home Depot, and, by extension, all retail stores," the suit states. mynewsla.com


The Return of COVID Measures -- Or Has That Ship Sailed?
COVID is 'heating up' this summer. Should we be wearing masks again?
The uptick in coronavirus transmission this summer has not brought major alarm from health experts. But it is raising questions about whether the risks are high enough to go back to safety measures that many have abandoned. Dr. Peter Chin-Hong, a UC San Francisco infectious diseases expert, said transmission is increasing and "we haven't seen the crest yet" of the wave.

Most people have stopped wearing masks and aren't likely to follow suggestions to return to that practice all the time again. But swearing off masks for good - even when sitting on a plane next to someone who is coughing or sneezing - would unnecessarily put people at higher risk for illness. "I think there's, like, an in-between" message, Chin-Hong said. There are people who may want to avoid contracting COVID-19 "because it's disruptive to life." latimes.com


Spirit Halloween To Haunt More Retail Spaces Than Ever, Open 1,500 Stores
Spirit Halloween Store is creeping into vacant big-box space left behind by retailers Bed Bath & Beyond, Kmart, Sears, Tuesday Morning and more. The New Jersey-based company said it plans to pop up in 1,500 locations in advance of Halloween this year, up from the 1,450 stores it debuted in 2022, according to CoStar. bisnow.com


Full list of major retailers making job cuts, from Gap to Walmart

Belk closing a Columbia-area store after 25 years

Target seeks sales jolt with Starbucks curbside pickup across the country
 

Senior LP & AP Jobs Market

VP Loss Prevention Job Posted for Sally Beauty in Denton, TX
The Vice President is responsible for the strategic planning and execution of the companys Loss Prevention and Safety Program. The VP will work closely with the other Company teams such as Store Operations, Distribution, Finance, Legal, Risk Management and Human Resources to ensure company assets including cash, inventory and people are safeguarded. linkedin.com


Program Manager, Physical Security job posted for Green Thumb in Chicago, IL
As a Program Manager, Physical Security you will be responsible for the safety and security of GTI employees in retail locations and cultivation centers across multiple states. In this role you will be responsible for designing and deploying security and surveillance technology programs such as CCTV, access control, and alarm systems. indeed.com
 

Just 22% of Retailers Train Employees on Cybersecurity
Meanwhile, retail accounts for 62% of cybersecurity attacks in commerce

Retailers are failing to train employees in cybersecurity

A new survey by cloudbased security company Indusface has found that only 22% of retailers train their employees in cybersecurity.

Recent reports have found that over the past year there have been approximately 2.39 million instances of cybercrime and retail accounts for 62% of cybersecurity attacks in commerce, meaning businesses and employees need to be prepared.

In the digital age, employee training in cybersecurity being is an essential part of employee onboarding and sufficient training is crucial if retailers wish to protect themselves. However, a survey by Indusface has found that only 22% of retailers are training their employees to combat cyberattacks.

The survey contacted 2,200 respondents from 18 different industries, asking if businesses were prepared for a cyberattack, if they invest in cybersecurity training, and if they actively train employees in cybersecurity. Retail was in the the bottom five sectors for adequate training.

This concurs with GlobalData's thematic analysis of the retail sector, which finds that the frequency of cyberattacks has been increasing since 2020, with notable attacks on JD Sports and WHSmith reported in Q1 2023.

Indusface founder and president Venky Sundar commented: "If cyberattacks occur, a business can suffer from lost business data, a degraded reputation, and potentially a large financial cost."

Ultimately, retailers should not be dissuaded by the investments needed for employee cybersecurity training, as it will pay dividends for long-term business protection. retail-insight-network.com


Billions of Computers Worldwide are Vulnerable to Data Leak
'Downfall' Bug in Billions of Intel CPUs Reveals Major Design Flaw

A newly revealed flaw affects a good chunk of the world's computers. A patch has been released, but broad, structural change in CPU design will be required to address the root cause.

Billions of computers running on Intel processors are vulnerable to data leakage between users sharing a computer or cloud environment. CPUs developed by other vendors could be exposed, as well. It's a class of security vulnerabilities that showcases the exploitable lack of hardware isolation in most chipmakers' offerings.

In an Aug. 9 presentation at Black Hat, Daniel Moghimi, senior research scientist at Google, revealed "Downfall," two related methods of attacks against CVE-2022-40982, a newly revealed medium-severity-rated vulnerability. The bug comes from a memory optimization feature in Intel CPUs that accidentally leaks internal hardware registers. By exploiting a particular instruction - "gather" - a malicious actor in a shared computing environment could gain access to data belonging to other users and applications, be it banking details, encryption keys, or information within the kernel.

Downfall affects all devices running Intel processors which were manufactured between 2014 and 2021 (Intel offered the full list of compromised and non-compromised models in its vulnerability advisory).

Gauging just how many of the world's computers are affected by Downfall is a daunting task. Because Intel controls a majority of the global market share for CPUs, Moghimi estimates there are between 1.5 and 2 billion affected devices, and even that may not cover the full extent of it. darkreading.com


Hijacking Windows Update Process
Windows Defender-Pretender Attack Dismantles Flagship Microsoft EDR

A newly patched flaw in Windows Defender allows attackers to hijack the signature-update process to sneak in malware, delete benign files, and inflict mayhem on target systems.

Among the 97 CVEs that Microsoft patched in April 2023 was a security feature bypass vulnerability that allows an unprivileged user to hijack Windows Defender and use it to wreak havoc on target systems.

Researchers at SafeBreach - who discovered similar vulnerabilities in security products previously - uncovered the issue with Windows Defender during an attempt take over the antivirus tool's update process.

The research goal was to verify if the update process could be used to sneak known malware into systems the software is designed to protect. Researchers also wanted to verify if they could get Windows Defender to delete signatures of known threats and worse, to delete benign files and trigger a denial-of-service condition on a compromised system.

The researchers were able to achieve all three objectives and even develop an automated tool dubbed wd-pretender - for Windows Defender Pretender - that implemented each of the attack vectors. Microsoft assigned a CVE for the issue they discovered - CVE-2023-24934 - and issued a fix for it in April. darkreading.com


New Cyber Safety Review Board Report
Cyber Safety Review Board Releases Report on Activities of Global Extortion-Focused Hacker Group Lapsus$

Report Includes 10 Specific Recommendations for Government and Industry

WASHINGTON - Today, the U.S. Department of Homeland Security (DHS) released the Cyber Safety Review Board's (CSRB) report summarizing the findings of its review into the activities associated with a threat actor group known as Lapsus$. The CSRB found that Lapsus$ leveraged simple techniques to evade industry-standard security tools that are a lynchpin of many corporate cybersecurity programs and outlined 10 actionable recommendations for how government, companies, and civil society can better protect against Lapsus$ and similar groups. The report was delivered to President Joseph R. Biden, Jr. through Secretary of Homeland Security Alejandro N. Mayorkas.

"Our ability to protect Americans from cyber vulnerabilities has never been stronger thanks to the community we are building through the Cyber Safety Review Board," said Secretary of Homeland Security Alejandro N. Mayorkas. "As our threat environment evolves, so too must our detection and prevention capabilities. We must also evolve our ability to deploy those capabilities. The CSRB's findings are not only timely, they are actionable and written with the guidance of real-world practitioners in the private sector." cisa.gov


CISA Releases Malware Analysis Reports on Barracuda Backdoors

Ransomware Attack Disrupts Health Care Services in at Least Three States

It's Time for Cybersecurity to Talk About Climate Change

Glendale, CA: Update: Flash Mob Hits The Americana, Stealing $300K In Merchandise; mall's owner is offering $50,000 for information
A flash mob comprised of dozens of thieves hit the Yves Saint Laurent at The Americana at Brand Mall Tuesday, making off with $300,000 in merchandise, according to the Glendale Police Department. The brazen daytime burglary, which was captured on video, prompted the mall's owner, Caruso to offer a $50,000 reward for information leading to the arrest and conviction of the thieves. "The Yves Saint Laurent store in Glendale was the victim of a bold, flash mob burglary yesterday. Located at the Americana at Brand, at least 30 suspects flooded the store at approximately 4:50 pm Tuesday afternoon," the Glendale Police Department said in a written statement. "The suspects stole clothing and other merchandise before fleeing on foot and leaving the location in numerous vehicles. While still under investigation, the estimated loss is approximately $300,000."  patch.com


Redwood City Two Busted in $50k Bicycle Heist
On June 1st 2023 the Chain Reaction Bicycle shop in Redwood City was broken into. Over $50,000 in high end bicycles were taken. Detectives were able to determine the involvement of two suspects, Redwood City residents Jose Guadalupegomez (32 years old) and Joe Rivera (27 years old). Both subjects were arrested and booked into the San Mateo County Jail. The Redwood City Police Department is still investigating this crime. We believe there are additional suspects involved and most of the stolen bicycles are still missing.  facebook.com


Chico, CA: Girls snatch $10,000 worth of merchandise from the Sunglass Hut
Around $10,000 worth of merchandise was stolen from a sunglasses shop in Chico on Wednesday afternoon. Officials with the Chico Police Department (CPD) say they received a report of a shoplift at the Sunglass Hut, inside Chico Marketplace, just after 3 p.m. According to reports, police say two girls ran into the store and stole up to $10,000 worth of merchandise from the kiosks before fleeing the scene.  krcrtv.com


Jonesboro, AR: $5,000 in Fragrances Stolen from Ulta Beauty in Jonesboro
A significant fragrance theft was reported recently at Ulta Beauty, where several suspects made away with thousands of dollars worth of goods. The incident unfolded around 5:50 PM on August 7 at the Ulta Beauty store located at 3031 E. Highland Drive. According to the report, multiple suspects entered the establishment and subsequently stole two baskets brimming with fragrances. All three individuals involved in the theft are described as black males, aged between 21 and 30.  neareport.com


Spring, TX: Group of suspects wanted, seen stealing 27 guns from Top Gun Pawn shop
In an early morning break-in, three fast-moving burglars hit a Montgomery County pawn shop and got away with dozens of guns. The burglary happened at Top Gun Pawn on Rayford Road in Spring. In an alert that went out to law enforcement later Wednesday morning, the Montgomery County Sheriff's Office revealed that 27 guns were stolen.  abc13.com