Retailer's fast action leads to armed robber arrest, prosecution

How proactive face matching makes your stores safer

The warning's crystal clear when FaceFirst sends a real-time notification: "Do not approach-call 9-1-1." It's critical information when someone with a history of violence or threats against your store has returned.

Here's a win from a FaceFirst client that led to an armed robber's arrest and prosecution. It started when a masked man entered a store, approached the in-store coffee shop employee, and robbed her at gunpoint. After the man left, the AP team ran a FaceFirst visitor search for all their stores. They found an image of the man without a mask. He was wearing the same distinctive shoes and a unique shirt, which helped them confirm the match.

The investigators enrolled the man as a known offender in the retailer's database. A week later, the man entered a different location. FaceFirst sent an immediate notification: "Do not approach-call 9-1-1." Officers responded quickly. They arrested the man as he left the store, having committed another armed robbery. The man faces charges of felony armed robbery with a deadly weapon.

The proactive match notifications help ensure prompt law enforcement response when seconds count. FaceFirst gives retailers tools to investigate incidents more effectively and efficiently, which helps prosecutors keep dangerous individuals out of your stores and off the streets.

FaceFirst's face matching technology alerts retailers instantly when known threats enter their stores, providing both life safety and loss prevention advantages. Calculate the risks of being caught unaware when a known offender enters your store. If you knew there was a proven solution to keep your valued customers and employees safer from violent offenders and prevent loss, would you implement it? The real risk is answering no.

FaceFirst's solution is fast, accurate, and scalable-take action today at facefirst.com.
 

Learn More Here
 

'Mayhem on Main Street': Retail Theft Epidemic Series

Mexican Cartels Fueling the ORC Surge
Boosters, fencers, and cleaners: Inside cartels' newest criminal enterprise of organized retail theft

In this series, Mayhem on Main Street, the Washington Examiner will investigate the causes behind the scourge of shoplifting, the role of the cartels, the cost to stores big and small, and the complicity of lax prosecutors. Part 2 investigates the role of the cartels. To read Part 1, click here.

Mexican cartels are behind the spike in organized retail crime and are deeply entrenched in every level of the process, according to the federal government's chief investigative agency.

"Organized retail crime is leading to more brazen and more violent attacks in retail stores throughout the country. Many of the criminal rings orchestrating these thefts are also involved in other serious criminal activity such as human trafficking, narcotics trafficking, weapon trafficking, and more," said Steve Francis, acting executive associate director for Homeland Security Investigations, in a statement. HSI is part of the Department of Homeland Security's Immigration and Customs Enforcement.

These retail crimes are perpetrated by people who work as part of a crime ring run by cartels. In recent years, cartels have gone from illicit drug manufacturing and smuggling, human smuggling and trafficking, and illegal firearm smuggling to commandeering crime in the retail environment.

Cartels are involved in every level of retail crime, from in-store theft and listing items in online marketplaces to shipping stolen merchandise worldwide and using U.S. financial institutions to hold their profits.

"Unlike shoplifting, where an individual steals food due to hunger or related incidents of simple theft, [organized theft groups] illegally profit from systematically targeting retail establishments utilizing professional thieves known as 'boosters,'" according to HSI. "Often, boosters travel in crews throughout the country utilizing aliases, rental vehicles, and tools such as 'booster bags' and illegally acquired security keys to steal high-value merchandise."

Kansas and Missouri are among the top 10 most affected states due to their prime location, according to Kansas Attorney General Kris Kobach.

"The reason is almost certainly the I-70 corridor, which has become a pipeline not only for drugs but also for organized retail crime. There is a link between drug trafficking and organized retail crime," Kobach said in prepared remarks for testimony before a House subcommittee in June. "The drug-addicted often become boosters in order to feed their habits, and some fences recruit them specifically." washingtonexaminer.com


NRF CEO Discussed ORC's 'Persistent Threat' on Fox Business
ICYMI: NRF CEO Joins 'Varney & Co' on Retail's Fight Against Crime
WASHINGTON, August 30, 2023 - Earlier today, NRF President and CEO Matthew Shay joined host Stuart Varney on Fox Business' "Varney & Co" to discuss the retail industry's continued fight against organized retail crime (ORC), and the brazen acts of theft that accompany them, in stores throughout the country.

ORC's Contributing Factors:

Shay: "There are several contributing factors that go back many years that impact how we classify these crimes. Property crimes are no longer felonies; they are considered misdemeanors in states and jurisdictions across the country. Prosecutors have deemphasized prosecution of these crimes and police forces are understaffed and unable to pursue these crimes."

Advocating for Multipronged Solutions:

Shay: "With ORC, you have the environment that creates the problem, the actual acts themselves and then the resale of the stolen merchandise. To address this, we have first gone after the marketplaces where counterfeit and stolen goods are sold through the passage of the INFORM Act last year. Now we are advocating for the bipartisan Combating Organized Retail Crime Act in Congress, to ensure coordination and resources across federal, state and local agencies. We've also set up more than a dozen task forces across the country with attorneys general in New York, Georgia, Florida, Kansas, Utah, New Mexico, California. They're recognizing the challenge of the problem and putting in resources."

Community Impact:

Shay: "The people that get hurt here are the local communities and there have been tragedies. The level of incidence of violence that goes on now is a level we've never seen before. Ultimately the losers are those communities and customers who don't have the goods. The goods are either locked up, out of stock or the store is closed. It's a persistent, pervasive problem and we're working hard to try to solve it."

As the leading authority and voice for the retail industry, NRF has long advocated for policy solutions to stifle the threat of retail crime in stores large and small across the country. NRF is declaring Oct. 26 Fight Retail Crime Day and is convening retailers in Washington, D.C. to advocate for passage of the Combating Organized Retail Crime Act.

Learn more about "The rising toll of organized retail crime."


Best Buy is Beating Theft
How Best Buy is winning the war against retail theft

Best Buy said Tuesday that theft at its stores has remained relatively stable.

Best Buy said Tuesday that its rate of shrink - or losses due to theft, fraud, or other causes - has remained relatively stable over the last several years, despite other retailers sounding the alarm over theft.

In certain parts of the country, the company is "definitely seeing an increase" in break-ins and thieves "just grabbing" goods and "running out," Best Buy CEO Corie Barry said Tuesday on a call with analysts. But shrink as a percentage of Best Buy's overall revenue is nearly where it was pre-pandemic, she said.

On Tuesday's call, Barry rattled off a list of strategies that she said has helped Best Buy combat theft.

Best Buy employs security workers at store entrances

Barry said Best Buy employs asset-protection employees at its front doors. These are staffers who are specially trained to handle security threats, such as theft. Barry added that Best Buy "often" has more "floor coverage" than other retailers - meaning more employees are present on the sales floor.

Best Buy stores have one entrance and few self-checkout registers

Barry highlighted other features of Best Buy's stores as theft deterrents. Fewer entrances mean fewer options for thieves to escape with carts of stolen goods. And self-checkout is often blamed as a driver of theft.

Best Buy is locking away some merchandise

Barry said Best Buy has started removing some items from the sales floor that could be prime targets for thieves. The company has invested in displays and digital tools in stores that allow customers to scan items for pickup within minutes. businessinsider.com


The Biden Administration Called Out for Fueling Theft Crisis
Former Home Depot CEO 'fears' Biden administration is 'fueling a lawless society' as retail theft surges
One former industry CEO is calling out the Biden administration for "fueling a lawless society" as rising theft and crime leave retailers struggling across the country.

"This environment under this administration is fueling a lawless society and we've got to get this back under control. I fear where this is headed," former Home Depot CEO Bob Nardelli said on "Cavuto: Coast to Coast" Friday.

Nordstrom is just one of the latest retailers to show how rising crime is impacting their bottom line. Other retailers including Dick's Sporting Goods, Kohl's, Foot Locker, Target and Walmart have seen a surge in theft impacting sales. Some of these executives warned earlier this year of an increase in "shrink" and its effect on business.

Nardelli went on to explain what a "shrink" in sales means and why it is really the cost of theft.

"You just look at the list of retail companies, whether it's Home Depot, Lowe's, Macy's, Dick's and then you look at Target, they're now projecting $1.2 billion, again, the polite word is shrink. The reality is its theft," he told host Neil Cavuto.

Nardelli added that the growth in crime is also costing retailers more than profits. "Not only crime, but unfortunately, Home Depot lost two associates. They pushed an elderly man to the floor. He died. A security guard, shot," he shared.

With crime impacting communities across the nation, Nardelli emphasized the importance of getting the current "lawless" society back under control. foxbusiness.com


Retail Crime Closures Continue
Nike joins Walgreens and Dollar Tree in growing list of major retailers closing down stores after stealing spike

Nike and other major retailers have seen major financial losses as theft runs out of control in stores.

Organized retail crime is reportedly on the rise and is leading to retailers' bottom lines plummeting across the country.

Nike recently conducted a sting operation in conjunction with local police at one of their Los Angeles stores. The sting resulted in 10 thieves being arrested. Police recovered over $3,000 in merchandise, but that is only a fraction of Nike's losses due to theft.

The athletic company lost close to $1 million dollars over a year at that location alone. Their losses nationwide are astronomical. Other major retailers have begun to fight back against retail theft alongside Nike.

Walgreens is testing an anti-theft store in Chicago. This location keeps all of its merchandise except for two isles locked up. Customers have to order their items from a kiosk in order to receive them.

Dollar Tree is blaming recent drops in profits on rising theft at their locations. Their response is to remove certain products from locations that see more theft than others.

Other companies are simply shutting their doors entirely. Nordstrom recently closed down their flagship location in San Francisco due to concerns about crime. the-sun.com


Shipment Misdirection Schemes Top Cargo Theft Threat
Labor Day Cargo Theft Trends Infographic and Security Tips
JERSEY CITY, N.J. - AUGUST 29, 2023 - CargoNet®, a Verisk product, advises that the unprecedented crime wave affecting over-the-road freight transportation in the continental United States shows no signs of slowing down. Last week, theft reports to CargoNet reached their second-highest levels of the year. All supply chain professionals should be concerned with theft risk this upcoming Labor Day holiday.

In order to mitigate risk, CargoNet examined theft trends around the previous five Labor Day holidays. In total, CargoNet recorded 156 events with an average cargo value of $151,726 per event. Theft was highest in 2022 where CargoNet recorded 44 events. In previous years, cargo thieves preferred to steal valuable shipments of televisions, computers, and major appliances. Thefts were most common near major supply chain hubs in Southern California, Dallas-Fort Worth, Chicago, Memphis, and Atlanta. There were no fictitious pickups reported in this analysis period, but these kinds of thefts are the main threat professionals should look out for this year.

Current Threat Environment

Shipment misdirection schemes, a kind of fictitious pickup, remain the most pervasive threat to domestic, over-the-road freight transportation this upcoming holiday. CargoNet has recorded over 600 shipment misdirection attacks or attempts since November 2022. In these schemes, attackers impersonate a motor carrier to gain authorization to transport a shipment and then hire a motor carrier to deliver the shipment to a location they have access to so they can steal the shipment. Attackers often impersonate two or three different companies to disguise their identities and deceive their victims.

These attacks target a wide variety of goods from every state in the continental United States, but attackers have shown a preference for stealing truckload shipments of solar panels, energy drinks, alcoholic beverages, motor oil, and consumer electronics. Attacks can be mitigated with enhanced security protocols. Shippers should consider recording information about the motor carrier, driver, and vehicles used to pick up a shipment for investigative follow-up in case a shipment is stolen. Logistics brokers should build sophisticated compliance programs to detect motor carrier identity theft, especially if a commodity has been frequently targeted. cargonet.com


Holding S.F. Judges Accountable with Public Report Cards
Tough-on-crime group says it will grade S.F. judges before 2024 election
A tough-on-crime organization that sends volunteer "court watchers" to San Francisco courtrooms says it will be issuing a report card on the sentencing practices, character and conduct of the 13 Superior Court judges seeking new terms in city elections next March.

Noto said, the group's 5,000 members, many of them former crime victims, will vote with grades of A to F for the judges based on their sentencing practices and other conduct and on how they are viewed by attorneys and others who work with them. The first report card will be issued in September or October and will be updated before the election, Noto said.

While Noto denied any pro-prosecution bias, Stop Crime SF made it clear in announcing the report-card plan that its intent was to elect judges who would issue longer sentences. sfchronicle.com

Editor's Note: Even if progressive prosecutors are replaced or impacted by public pressure, there's still the elected local judges that may be as progressive as the DAs in their sentencings. Which we have seen in a number of reports. Federal Judges on the other hand, are mandated by the U.S. Sentencing Guidelines. -Gus Downing


Chicago's gun problem - Youth Crime is Driving the Spike
Shootings in Chicago in 2022 up one-third compared with 2019, with 868 more victims of gun violence.

Youth crime is driving the spike. More than 90% of youth shooting victims were not enrolled in school. Earlier analysis by the University of Chicago Crime Lab documented 8% of those arrested were for homicides, 9% for shootings, 32% for robberies and 49% for carjackings were youth 17 years and younger. illinoispolicy.org


DeSantis's message for potential looters in wake of hurricane: 'You loot, we shoot'

Calif. Democrat frustrated by rising theft admits liberal crime bill was 'big mistake'

San Mateo County supervisor outlines proposals to combat organized retail theft

Crime victims assail bill they say could free some of California's worst killers

Outdated Report Fueling Misconceptions about Facial Recognition Tech
Facial recognition actually performs far more accurately than humans

Facial recognition & NIST - Fake news or old views?
The National Institute of Standards and Technology (NIST) Face Recognition Vendor Test (FRVT) program has for many years been the most respected independent and authoritative evaluator of facial recognition algorithms anywhere in the world.

... The first FRVT report on demographic effects was produced in 2019. This report is often alluded to and misrepresented in policy debates as being indicative of alarming levels of bias within modern facial recognition algorithms. ... For clarity, that report does not do that.

FR technology has of course developed significantly in the four years since the first FRVT report, but the narrative of the naysayers hasn't always evolved beyond a selective representation of the 2019 report.

... Modern and better-performing FRT systems ... when tested across 12 million images deliver an accuracy score of 99.88 percent. Any disparity in performance across race, [sex], and age is so negligible as to be statistically insignificant, so say the independent testers. This level of performance is far in excess of human capability.

... Recently Interpol declared that since 2016 there have been 1,500 arrests of serious and organised criminals across the EU through the use of [facial recognition technology]. The debate is no longer one of whether to deny law enforcement capabilities that can effectively protect our densely populated, digitally enabled, and increasingly dangerous societies from an array of serious harms. The debate to be had now is how the regulation of its capabilities should evolve so as to continue to shape and harness its use as a force for good to the benefit of society and to hold such use to account.

That particular debate requires common sense, balance, being grounded in modern fact, and not tainted by old information, misinformation, or indeed disinformation. biometricupdate.com


OSHA Wants Employees Represented at Inspections
Proposal Would Expand Authorized Participants in Worksite Inspections
The U.S. Department of Labor (DOL) announced a new proposed rule to broaden who can be authorized to accompany Occupational Safety and Health Administration (OSHA) compliance officers during workplace inspections.

Under the proposed rule, released on Aug. 29, employees may authorize an employee or a nonemployee third party, if the OSHA compliance officer determines the third party is reasonably necessary to conduct an effective and thorough inspection. The third party would need the inspector's permission, but not the employer's permission.

"This proposal aims to make inspections more effective and ultimately make workplaces safer by increasing opportunities for employees to be represented in the inspection process," said Assistant Secretary for Occupational Safety and Health Doug Parker. shrm.org


66% Choose Self-Checkout Over Human Checkout - Despite 'Loneliness Epidemic'
Americans face an epidemic of loneliness. For some, supermarket self-checkouts make it worse
This year, in a stark warning about epidemic levels of loneliness and isolation, the U.S. surgeon general dedicated a section of his advisory to the effects of technology on social connection. Two-thirds of Americans said technology has made it harder to meaningfully connect, and nearly 70% said it has led to a decrease in empathy, according to a recent survey from PlayUSA, a website that covers online gambling.

Still, 66% of respondents said they would choose a self-service kiosk over a human-run checkout, often citing speed and preferring not to talk to anyone. But there was a sharp divide along generational lines: Although 84% of Gen Zers prefer self-checkouts, it dropped to 46% for baby boomers. The survey didn't include a breakdown of the Silent Generation, Myers' age group.

Having connections such as the one Hechler and Myers share - warm, low-stakes relationships often called "weak ties" - is a critical tool for maintaining emotional well-being later in life as social circles shrink, said Toni Antonucci, a professor of psychology at the University of Michigan. latimes.com


Aldi's purchase of Winn-Dixie sets up a powerful force in grocery, report says

Here's how the San Francisco Centre mall looks now that Nordstrom is closed


Quarterly Results

PVH Q2 DTC stores up 11%, digital down 10%, wholesale down 3%, net sales up 4%
   Tommy Hilfiger revenue increased 6%
   Calvin Klein revenue increased 3%
   Heritage Brands revenue decreased 11%

Dollar General Q2 comp's down 0.1%, net sales up 3.9%

Shoe Carnival Q2 comp's down 6.5%, e-commerce up 5.4%, net sales down 5.7%

Victoria's Secret Q2 comp's down 11%, net sales down 6%

Big Lots Q2 comp's down 14.6%, net sales down 15.4%


Publishing Note:
The Daily will not be publishing Sept. 1 & Sept. 4 in observance of Labor Day

Whether you're spending the holiday weekend on the road or at home, let's keep 'em all safe out there!

In Case You Missed It

RH-ISAC Cyber Intelligence Summit
Retail & Hospitality ISAC Announces Agenda for Cyber Intelligence Summit

The 2023 agenda is packed with insights, innovation, and collaboration.

Vienna, VA - The Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC) has announced the agenda for the upcoming RH-ISAC Cyber Intelligence Summit. The conference, scheduled to take place on October 2-4 in Dallas, Texas, brings together industry leaders, cybersecurity practitioners, and thought influencers for a three-day event that explores the latest trends, challenges, and solutions in the ever-evolving landscape of cyber intelligence.

The member-driven agenda features a diverse array of sessions, workshops, and presentations designed to empower participants with actionable insights to safeguard their organizations against modern cyber threats.

Key highlights of the RH-ISAC Cyber Intelligence Summit agenda include:

• Keynote Addresses: Five keynote presentations and panel discussions throughout the Summit, each offering an inspiring and thought-provoking perspectives that set the stage for a dynamic event focused on the future of cyber intelligence.

• Breakout Sessions: More than 20 practitioner and sponsor-led breakout sessions addressing critical areas such as threat intelligence, security operations, incident response, emerging technologies, risk management, and more.

• Interactive Workshops: Engaging and hands-on programs, including a tactical capture-the-flag and strategic tabletop exercise, providing attendees with practical strategies, tools, and techniques to enhance their cybersecurity practices and led by industry experts.

• Panel Discussions: Thought-provoking panel discussions bringing together experts from diverse sectors to explore pressing issues in cybersecurity and share best practices.

• Vendor Showcase: A dedicated space for cutting-edge solution providers to showcase their latest technologies and innovations, offering attendees opportunities to explore new products and services.

• Networking Opportunities: Ample opportunities for attendees to connect with peers, experts, and potential collaborators, fostering a community of information sharing and mutual support.

Registration for the RH-ISAC Cyber Intelligence Summit is now open. For more information about the summit, including registration details and the full agenda, please visit summit.rhisac.org.

Discounted registration rates are available for attendees from retail and hospitality companies. Contact membership@rhisac.org for further information.


Open Invitation to Loss Prevention & Asset Protection

Seniors, Corporate Teams and those interested in learning more about retail's cybersecurity efforts.

If your retailer is a member or not, this is a great educational and networking event for those executives involved in cybersecurity investigations and mitigation.

Understanding that the summit is being held at the same time as LPRC's IMPACT conference, seniors may wish to send their teams representative who they feel would benefit.