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In Case You Missed It

August's Moving Ups

12 New Senior LPs - 7 Appointments - 5 Promotions

Aritzia promoted Chris Kelly to Director, DC / Supply Chain Risk
beeline Group, North America named Jamal Evans Director of Asset Protection
Casey's promoted Jennalee Mihulka to Manager - Store Safety
Dollar Tree/Family Dollar promoted Felipe Chavez, CFI to Senior Regional Asset Protection Manager
IOBSE Board of Directors names Sean Dessources as new Director of Membership
Kohl's promoted Andy Leonard to Senior Manager, Remote Operations & Investigations
Psycho Bunny named Dominique De Santis Senior Director Loss Prevention (CAN-USA)
Sensormatic Solutions named Tony D'Onofrio President
Tailored Brands promoted Chris Dyess to Director of Loss Prevention
Telaid named Stephen Collins Vice President of Business Development
Ulta Beauty named Rory Stallard Director of Loss Prevention, Organized Retail Crime
YUM! Brands named Scott Normandin Director, Assets Protection

See All the Executives 'Moving Up' Here   |   Submit Your New Corporate Hires/Promotions or New Position







Raising the Watch Tower

Results from LVT's Crime-Fighting
ACCESS Taskforce

According to the Loss Prevention Research Council (LPRC), LVT Units led to a 40% decrease in shoplifting.

The ACCESS Taskforce from LVT provided proven results for two communities, helping both their police departments and local retailers by contributing to a decrease in crime. See the results for yourself in LPRC's study.

Read the Results Here


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

The U.S. Crime Surge
The Retail Impact

'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!

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Prioritize both security and CX with MTI Smart Locks™

A personalized, convenient customer shopping experience is the key to success in today's retail environment. But rising prices and increased risk of theft has created the need for widespread, smarter merchandise controls. Those controls can lead to bottlenecks in service that erode your brand. How then, can you boost your CX while also limiting loss?

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Want more information?

Send us a note and we will be happy to send you information about our locks solutions today.







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.

Surging Cost of Cyber Insurance
The Reality of Cyberinsurance in 2023

If an organization decides to include cyberinsurance within its total cyber risk management posture, that cyberinsurance must be fully integrated with the organization's cybersecurity posture.

The cyberinsurance industry is maturing. In its early days, it simply accepted cyber risk with few questions asked. It lost money. Insurers are asking more questions and have increased premiums, exclusions, and refusals.

This has created a gap between insurers and insureds - a gap between insurance wishes and insurance reality, and a gap between policy requests and policy delivery. A survey of more than 300 US organizations, conducted by Censuswide for Delinea, seeks to understand the nature and effect of this cyberinsurance gap, and how it may be closed.

The background is strong support and desire for cyberinsurance from the board. Businessmen understand the nature of insurance, the nature of risk transfer, and the ability of insurance to ameliorate catastrophic loss. Boards sometimes require their organizations to purchase cyberinsurance, sometimes are contractually required to have cyberinsurance, and are largely willing to fund it.

That said, board budget support has dropped by 13% from 94% to 81% since last year. This may partly be due to current economic uncertainty, but may also be due to the increased requirements of the cyberinsurance industry.

Sixty-seven percent of respondents reported that their cyberinsurance costs increased by between 50% and 100% in 2023.

The overall message from this survey is that cyberinsurance is no longer something that can simply be tacked onto cybersecurity. If an organization decides to include cyberinsurance within its total cyber risk management posture, that cyberinsurance must be fully integrated with the organization's cybersecurity posture. This will involve a detailed understanding of risk acceptance (deductibles), and the avoidance of anything that can lead to claim denials based on fine print exclusions. Above all, it will require a partnership between the insured and the insurers - but one in which the insurer is the leading partner. securityweek.com

Cybercriminals Using Human Behavior to Their Advantage
Companies turn to behavior-based cybersecurity training to quell security breaches

Traditional cybersecurity awareness training leaves companies vulnerable to social engineering attacks

Lawrence says it's natural for technologists to focus on their domain competency and to view human psychology as an afterthought. However, that oversight allows cybercriminals to thrive because they use the dynamics of human behavior to their advantage.

Advertisement"Cybersecurity professionals don't know what makes the average person susceptible to cyber threats," says Lawrence. "Cybercriminals hope to reach people when they are stressed or emotional because it clouds their judgment."

This phenomenon, which Lawrence describes as an "amygdala hijack," explains why phishing is such a successful attack vector. The amygdala is the part of the human brain responsible for the "flight or fight" response and makes people react to events without thinking.

"Imagine that your brain is like a fist, where your fingers cover your thumb," explains Lawrence. "The amygdala is the thumb, and you can't move it. However, if you're juggling multiple tasks or dealing with strong emotions, it's the equivalent of lifting a finger or two. When all the fingers are up, the amygdala is free to operate, and that's when we make poor decisions that can lead to security breaches."

By understanding individual behavioral traits, companies can provide personalized training that helps employees understand themselves and allows them to react better in situations that could cause a breach.

Every style is vulnerable which is why a personalized curriculum can help people understand how they can become vulnerable and teach them how to protect themselves and their company. securityinfowatch.com

AI is a Growing Concern of Cybersecurity Leaders
85% of Cybersecurity Leaders Say Recent Attacks Powered by AI: Weekly Stat
Seventy-five percent of security professionals said they have seen an uptick in attacks over the past year, with 85% attributing the rise to bad actors using generative AI, according to a new generative AI and cybersecurity report by Sapio Research and Deep Instinct. The report collected responses from just over 650 cybersecurity experts and leaders.

Nearly half (46%) of all respondents said they believe generative AI will leave businesses more vulnerable to cyber attacks than they were prior to AI implementation.

When asked about top concerns about AI's role in cybersecurity threats, responses varied. Thirty-nine percent said they envision an increase in privacy concerns, while 37% said they believe an increase in undetectable phishing attacks is possible. A third of respondents also said they see an increased volume and velocity of attacks happening, and an increased presence of deep fakes used to orchestrate the attacks.

According to findings, nearly half (47%) of respondents said their companies now have a policy to pay any ransoms associated with a cyber security threat. Not only is that number up 13% since last year, but 42% of respondents say they paid for stolen data to be returned to them over the past year. Less than a third of respondents (32%) said the same in 2022. cfo.com

Performance-Enhanced Android MMRat Scurries onto Devices Via Fake App Stores

11 search engines for cybersecurity research you can use right now








Thank you for nominating Sapphire Risk!

We'd greatly appreciate if you would vote
Sapphire Risk Advisory Group for

"Cannabis Consulting Firm of the Year"

The winners will be announced on stage at The Pearl Theater at the Palms Casino Resort in Las Vegas on November 30, 2023.

Vote for Sapphire Here


Improving Cannabis Security While Reducing Burden on Businesses
Thoughts to Improve Security Regulations Across the Nation

Sapphire works with clients all over the country to ensure that their security standards apply best practices and meet compliance requirements. However, several business owners in the cannabis industry alert us to burdensome requirements from regulators.

In this article, we examine common security regulations which may be construed as "burdensome". Then we explain the ramifications of each. Finally, we offer solutions which may be aligned with best practices as well as with regulators' interests.

Excessive Video Retention

In the camera-heavy cannabis industry, we see hundreds of terabytes of storage required to meet regulations.

Most retail and warehouse businesses store video for between 7-30 days. 90 days is common for cannabis businesses (California, Massachusetts, Maryland). Canada still requires one year of retention, while West Virginia and Pennsylvania previously did (now both at 180 days). More retention can double the materials costs for video systems, to say nothing of increased maintenance costs. States like Illinois or Mississippi require off-site cloud storage. Yes, this feature removes reliance on an on-site NVR and makes remote access easier; however, again the price tag jumps dramatically, and onsite bandwidth requirements become a non-negligible calculation.

Our suggestion is to cap video retention at 45 days, which is sufficient for most investigations. As cloud storage technology develops, it may become more affordable, but for now, it annihilates security budgets for several years forward without clear ROI. Perhaps an emphasis on motion-activated recording instead of continuous recording would increase ROI for cloud storage.

Secondary Alarm Systems

Requiring two alarm systems with two separate monitoring companies creates an installation expense AND a recurring (monthly) expense. Redundancy can be achieved within one alarm system, or better yet, one can spend that money on proactive video monitoring or better door hardware. UL 681-standard alarm systems are much tougher to beat than those with minimum capabilities. Generators and battery backups can solve the power-outage problem. Overnight private security patrol/response teams are ideal too, when available.

Fencing Materials

A solution of 6-foot fencing with screening and possibly barbed/razor wire will enhance barrier security. Emphasis on CPTED generally produces strong ROI. Either of these will hopefully assuage those who want above-standard fencing. sapphirerisk.com

'Fake Unions' Plague California's Pot Industry
California's pot industry has another big problem on its hands
Some of the state's biggest cannabis companies have been accused of working with sham unions that don't actually fight for workers' rights It looks like it's time to add "fake unions" to the long list of problems facing California's multibillion-dollar legal pot industry.
Some of the biggest legal cannabis companies in California appear to be violating state law by working with organizations that claim to be labor groups but are accused of not actually attempting to fight for workers' rights.

California law requires any pot company with more than 20 employees to sign a labor peace agreement with a "bona fide" labor union. The law is intended to provide workers with easier access to labor organizations that can petition the company for better wages and working conditions.

However, at least three of the biggest pot companies in the state have been caught working with a "fake union" called Professional Technical Union Local 33, or Pro-Tech, according to MJBizDaily. Last month, the California Agricultural Labor Relations Board determined that Pro-Tech was "not a bona fide labor organization" because they made no discernible effort to organize or represent any employees in the cannabis industry and even failed to have a physical presence in California.

The board ultimately determined that Pro-Tech and the companies it contracted with had entered into a "sham relationship" in order to skirt the state law. cannabisbusinessexecutive.com

State Regulations Impacting Cannabis Store Access
Access to cannabis stores varies widely across US and Canada
Access to recreational cannabis stores across the United States and Canada differs greatly by state and province after taking population into account. Different state-by-state regulations have created some markets that offer far fewer retail choices for consumers.

Consider two states with approximately the same populations: Rhode Island and Montana. Both states have about 1.1 million people. Rhode Island, however, has only one adult-use retail cannabis store per 100,000 residents, based on March data.

By contrast, cannabis consumers in Montana have 37 recreational stores to shop from per 100,000 residents. The data comes from the annual state-by-state survey and analysis published in the 2023 MJBiz Factbook.

The population-based analysis sheds fresh light on retail availability, or density, across a country. So while California might have more than 1,000 recreational marijuana stores sprinkled throughout the state, it also has the country's largest population, with roughly 39 million people.

As a result, Californians have only three adult-use stores to shop from per 100,000 residents. mjbizdaily.com

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Online Platforms Used to Fence Stolen Goods
Amazon Has A Fencing Problem
Fencing via online platforms like Amazon is a growing societal problem that will eventually become an issue for Amazon itself. Shrinkage, or retail theft, is a massive problem that is impacting the profit margins of companies and hurting everyday consumers.

The public is increasingly pushing for government action to address organized theft, and online platforms like Amazon are being targeted as the main culprits.

Fencing via online platforms such as Amazon has become a societal problem and it is only a matter of time before society makes it an Amazon problem. When society does act, which I think is becoming increasingly inevitable, it will hurt Amazon via:

Direct costs of monitoring and prevention
Sales volume

This conclusion comes from the following logical chain:

Shrinkage is a massive problem
Shrinkage impact will go beyond company profit margins and hit everyday consumers.
When consumers get hit, the government will be compelled to act
Tying Amazon and other online platforms being used as fences to the consequences is the most cohesive and publicly palatable solution seekingalpha.com

Amazon Runs Out of Patience with Remote Workers
Amazon CEO Andy Jassy's brutal message to remote workers refusing to come back to the office: 'It's probably not going to work out for you'
Amazon CEO Andy Jassy seems to have run out of patience with remote workers refusing to come back to the office.

The return to office issue has been a problem plaguing some of the biggest businesses in America, with companies from Meta to Disney and Starbucks all wrestling with workers who want to hold onto their pandemic-era flexibility.

Unfortunately for Amazon's executives, summoning staff back to the office has been particularly controversial.

And after being hit with everything from criticism to staff petitions, it seems the Amazon boss has reached the end of his tether.

In a "fishbowl" meeting earlier this month-a company name for a fireside chat-Jassy reportedly threw down the gauntlet, implying that if staff refused to come back to their desks they would not have a spot on the payroll.

"It's past the time to disagree and commit," Jassy said in a recording obtained by Insider. "And if you can't disagree and commit, I also understand that, but it's probably not going to work out for you at Amazon because we are going back to the office at least three days a week, and it's not right for all of our teammates to be in three days a week and for people to refuse to do so."  finance.yahoo.com

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$20 Million International Fencing Operation Shut Down
DOJ: Two Charlotte Businessmen Get 46 Months Prison For Selling 20,000 Fraudulently Obtained New iPhones Overseas
CHARLOTTE, N.C. - Hamzeh Jamal Alasfar, 31, and Tayseer Issam Alkhayyat, 35, both of Charlotte, were each sentenced today to 46 months in prison for a multi-year scheme to buy, sell, and ship fraudulently obtained and stolen new Apple iPhones to domestic and international buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The defendants were also ordered to serve three years under court supervision after they are released from prison.

From 2013 through 2020, Alasfar and Alkhayyat engaged in a scheme to purchase fraudulently obtained and stolen new Apple iPhones and other electronic devices, which they then sold and shipped to buyers located in other states and foreign countries, including dozens of packages to the United Arab Emirates and Hong Kong.

Alasfar and Alkhayyat operated multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town), which the defendants used to carry out the scheme. The defendants and their employees at D Town and Cellport purchased new iPhones, which were often still sealed in the box, at prices significantly below retail value from individuals who obtained the devices through fraud and theft. Between January 2019 and January 2020, Alasfar and Alkhayyat sold and shipped through Cellport more than 20,000 new iPhones for more than $20 million, many of which were fraudulently obtained.

On March 2, 2023, the defendants pleaded guilty to interstate and foreign transportation of stolen property. They will be ordered to report to the federal Bureau of Prisons to begin serving their prison terms upon designation of a federal facility.

This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat organized criminal groups operating in Charlotte. justice.gov

Washington, D.C.: DOJ: Robbery crew stole $1M+ in jewelry from Asian-owned stores in 4 states
Federal prosecutors say they have charged 16 members of a violent crime ring that is responsible for armed carjackings, robberies and jewelry store thefts in Virginia, Florida, New Jersey and Pennsylvania. Members of the alleged crime ring are accused of conspiring in D.C. to target jewelry stores owned by Asian Americans, the U.S Attorney's Office for D.C. and other federal law enforcement agencies said at a news conference Wednesday. "There was a belief from the conspirators, we allege, that these type of jewelry stores would have jewelry and particularly gold of a certain kind that would be easier to sell on the fence market," U.S. Attorney for D.C. Matthew Graves said. Law enforcement officials say the suspects stole more than an estimated $1 million worth of jewelry and terrified their victims. "The defendants targeted small businesses along the East Coast, stealing hundreds of thousands of dollars' worth of jewelry from hardworking families," David Sundberg of the FBI's Washington Field Office said. Fifteen men from D.C., Maryland and Virginia and one from California are charged with crimes including armed carjackings, armed robberies, money laundering and firearms offenses. Graves told reporters the first arrests in the case came after two of the suspects were arrested by D.C. police on gun charges. Eight of the suspects were already in custody on other charges; eight others were arrested on Wednesday.  nbcwashington.com

Racine, WI: Man accused of serial thievery from stores in Wisconsin & Illinois faces over 40 years prison
A 28-year-old Racine man is facing close to 50 years in prison after being accused of serial thievery for allegedly taking thousands of dollars of merchandise from stores in Racine, Brookfield, and Gurnee, Illinois. Jose Arellano-Rodriguez was charged Tuesday, Aug. 29, in Racine County Circuit Court with six felony counts of bail jumping, four misdemeanor counts each of retail theft under $500 and retail theft altering the price under $500, and one misdemeanor count of driving with a revoked license. If convicted, he faces up to 43 years in prison and/or up to $132,500 in fines. Because Arellano-Rodriquez has misdemeanor convictions in the past five years, he could have up to two years added to his sentence for every count for which he is found guilty. According to the criminal complaint, Arellano-Rodriquez was identified on store surveillance from Farm & Fleet, Walmart, and Kohl's on dates beginning March 15, 2023, and ending Aug. 28 with his arrest in the Ulta Store next to Kohl's. In total, he is accused of taking $666.01 worth of merchandise ranging from a 12-amp charger to cylinders of propane, packages of t-shirts and socks, and diapers. According to the criminal complaint, Arellano-Rodriquez drove the same vehicle to each location. While he was apprehended, police found a large amount of cash in his pocket as well as an anti-theft tag removal device. Arellano-Rodriquez was assigned a $400 cash bond as well as a $2,000 signature bond and placed on house arrest. He will next be in court on Sept. 13 for his preliminary hearing.  racinecountyeye.com

Montclair, NJ: Shoplifter Leaves with $5K in product at Whole Foods
On August 28, a team leader at Whole Foods Supermarket reported a shoplifting incident that occurred earlier. The employee, while reviewing surveillance, observed a woman leaving the store through the main entrance with a shopping cart full of products that were not paid for. The employee stated that the woman matches the description of a suspect that has been involved in at least four other shoplifting incidents at various Whole Foods locations. The suspect is believed to have shoplifted upwards of $5,517.13 from the "Whole Body" section of the store.  montclairlocal.news

Beverly Hills, CA: BHPD officers arrest 3 for sunglasses theft on Rodeo Drive
Three male suspects were arrested and charged with grand theft after stealing sunglasses valued at $2,000 from a store in the 400 block of North Rodeo Drive on Aug. 27, Beverly Hills Police Department Lt. Reginald Evans said.

Setauket, NY: Four Suspects Make Off with Hundreds of Dollars in Merchandise from Target

San Bernardino, CA: Video captures thieves stealing over $500 od merchandise from lingerie store

Janesville, WI: Police arrest 4 in Dick's Sporting Goods $400 retail theft

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Shootings & Deaths

Indianapolis, IN: Menards Security Guard, Customer die after shootout at Indianapolis store
A Menards security guard and a customer have died after a shootout late Wednesday afternoon at the home improvement retailer on the city's northeast side, police say. The security guard died at IU Health Methodist Hospital, said Capt. Don Weilhammer with Indianapolis Metropolitan Police Department. The customer died after being taken in "very critical condition" to an operating room at Eskenazi Hospital, Weilhammer said. Officers just before 5:30 p.m. Wednesday were sent to a report of two people shot at the store at 7701 E. 42nd St. The shootout happened at the exit to the store's lumberyard, Weilhammer said. An IMPD news release sent shortly before 10 p.m. Wednesday said, "Preliminary information leads detectives to believe that one male was working as a security officer for the business when he stopped a vehicle with multiple occupants exiting a section of the business. A verbal disagreement led to a physical altercation between the driver and the security officer. Both men then exchanged gunshots striking each other. Homicide detectives have identified each person involved in this incident."  wishtv.com

San Francisco, CA: Store clerk dies after being beaten with baseball bat by thief stealing beer
A San Francisco store clerk has died from his injuries five days after he was brutally beaten with a baseball bat while trying to stop a thief stealing just two bottles of beer. Yowhannes "John" Tewelde, 60, never regained consciousness after suffering a major brain injury during the attack late Thursday at Richmond Market and died at a local hospital shortly before 2:30 p.m. Tuesday, his family announced. Tewelde was working at the Balboa Street store around 9:30 p.m. Thursday when a thief attempted to steal two bottles of beer. He had already made off with some water, police said, and came back just 10 minutes later to find Tewelde wielding a baseball bat in an effort to keep him away. But surveillance footage from the store shows the thief knocking Tewelde down, causing him to strike his head on the floor. He then grabbed the bat from Tewelde and beat him over the head with it before fleeing The unidentified suspect (pic) remains at large.  nypost.com

Milwaukee, WI: 2 men charged in deadly Milwaukee armored truck robbery; crime spree began as series of Walgreens robberies
Two people are charged in a deadly armored car robbery near North Shore Bank on West Capitol Drive and 79th Street in Milwaukee. Scott Bee, a 55-year-old armored truck guard, died in the shooting. Police charged 31-year-old Colby Logan and 29-year-old Damien Huff in a crime spree that started with a series of Walgreens robberies and ended in the deadly armored truck robbery. Prosecutors say Huff is the masked man seen on surveillance video running with a bag of cash toward a black Mazda CX5 after shooting Bee near the ATM. According to the criminal complaint, Colby Logan was the getaway driver. The criminal complaint says a Milwaukee police officer rode in the ambulance with the victim, Scott Bee, who said he was kneeling at the ATM at the North Shore Bank when a man said, "give me the money." He said that the man had a black handgun and then ran down the alley. Bee was shot four times: twice in the chest and twice on the right side. He died at Froedtert Hospital on July 25. The criminal complaint says $69,320 was stolen during the robbery wisn.com

Jefferson Parish, LA: Armed taxi driver turns the tables on attempted robber accused of targeting cabbies
A Louisiana taxi driver turned the tables on an armed man who allegedly tried to rob him early Monday morning. The Jefferson Parish Sheriff's Office said an unidentified taxi driver in Metairie was in his cab before 1 a.m. on Monday when a suspect armed with a handgun demanded money from the cabbie, NOLA.com reported. Metairie is located less than 10 miles west of New Orleans. The cab driver had his own firearm and shot the suspect multiple times, police said. The suspect, later identified as 23-year-old Gerald Pope, was pronounced dead at the scene, NOLA.com reported. Jefferson Parish Sheriff's Office spokesman Capt. Jason Rivarde said the cabbie is not facing charges and classified the fatal shooting as a justifiable homicide.  fox5atlanta.com

Buffalo, NY: Suspected shoplifter shot in hand after 'struggle' in CVS store with Security Guard
A man who tried to leave CVS Tuesday with unpaid items was involved in "some type of struggle" with the store's security guard and was shot in the hand, Buffalo police said. The incident took place just before 10:30 a.m. at the CVS store at 1625 Elmwood Ave. "At some point the security guard's gun discharged striking the customer in the hand," a statement from Buffalo police spokesman Michael J. DeGeorge said. The man who was shot was described as a 30-year-old customer. His name was not released. He was taken to Erie County Medical Center for treatment of his injuries, which police said were "non-life threatening." The guard is an off-duty Buffalo police officer whose name was not released. The shooting remained under investigation later Tuesday and no charges had yet been filed.  buffalonews.com

Cedar Park, TX: Mall Shooting: Shots fired inside Lakeline Mall after jewelry store robbery, no one injured

Robberies, Incidents & Thefts

Santa Ana, CA: Man arrested after hours-long standoff outside Hobby Lobby
A man was arrested and taken into custody after around an 11 hour standoff with police in a Hobby Lobby parking lot in Santa Ana. Authorities said the man taped a gun to his hand and refused to surrender, leading to an hours-long standoff that came to an end around 3 a.m. on Wednesday. Authorities responded to a strip mall parking lot in the area of 17th Street and Old Tustin Avenue after the Orange County Sheriff's Department attempted a traffic stop, according to the Santa Ana Police Department. The standoff began after the suspect exited a vehicle with a weapon outside the Hobby Lobby store in the 1900 block of 17th Street, police said. The Hobby Lobby and nearby stores were evacuated for a safety precaution as the standoff continued. The Santa Ana Police Department crisis negotiation and SWAT teams responded to the scene and attempted to convince the suspect to surrender. They also worked with the Orange County Sheriff's Department in an effort resolve the standoff. No one was injured during the standoff.  cbsnews.com

Eastpoint, MI: Man sues Eastpointe police for $50 million in robbery he didn't commit leading to 7 years in jail
Mack Howell believes that it was the detective who works at the East Point Police Department who set him up in an armed robbery in the summer of 2014. It took place at a 7-Eleven in Eastpointe, where security video shows a man, dressed in black with a gun, demanding the clerk open the cash register before taking the money. Mack Howell was arrested and convicted. Now 62 years old, Howell was sentenced to 25 to 50 years in prison. The only problem is, Mack Howell says he wasn't the guy that robbed the 7-Eleven. Mack Howell spent seven years in prison before Macomb County Prosecutor Pete Lucido's Conviction Integrity Unit got him out of prison in March of this year.  fox2detroit.com

Millbrae, CA: 72 year old suspect Arrested In Theft Of $5K Worth Of Collectible Pens
A Pleasanton man was arrested after he allegedly swiped more than $5,000 worth of collectible pens at a trade show in Millbrae over the weekend, authorities said. The San Francisco International Pen Show hosted hundreds of vendors with pens from all over the world. The event, held over three days, showcases purchasing, selling, and trading vintage and collectible pens. The 72-year-old man allegedly stole over $5,000 in pens and accessories on Saturday while walking through the show at the Westin San Francisco Airport Hotel, before he was caught by staff and vendors, according to the San Mateo County Sheriff's Office.  sfgate.com

Philadelphia, PA: Burglars hit Lululemon store in Center City; 1 in custody after officer deploys Taser
Philadelphia police are investigating after burglars hit a Lululemon store in Center City on Monday night. It happened around 10:15 p.m. at the store located on the 1700 block of Walnut Street. Police arrived to find the front door glass shattered and three people inside the business. Officers took one person into custody after deploying a Taser. Two other suspects got away. It's not clear if any merchandise was taken.  6abc.com

Truck Backs into Store, Thieves Steal ATM
A pick-up truck rammed into the front of a Washington state business. Footage shows a Ford truck back up over a sidewalk and directly into the glass windows and doors of a local business. Then, the driver pulls out of the building and parks the vehicle right outside what used to be the door. An ATM was dragged out of the wreckage by two subjects. Police say the machine held about $600 at the time. Estimated damage to the store front, $75,000 youtube.com

Ocean Shores, WA: Deer sneaks into candy store to satisfy sweet tooth cravings
A wild deer took a stroll through a candy store in Washington state last week checking out its options to satisfy a sweet tooth. Buddy and Howie's candy store posted surveillance video of the incident on Facebook showing the deer walk into the store through an open front door. You can see the animal walk around examining the taffy before running out of the store.  wflx.com

Pinal County, AZ: San Tan Valley Smash-and-Grab Suspects Wanted by Pinal County Sheriff's Office

Sioux City, IA: DOJ: Serial Armed Robber Convicted at Trial; 3 robberies in 4 weeks

Concord, NC: Six land felony charges from Concord postal worker robbery

Ann Arbor, MI: DOJ: Man who robbed downtown T-Mobile sentenced to federal prison

Houston, TX: USPS worker accused of racking up merchandise with credit cards allegedly stolen from residents; 50 victims totaling over $250,000



Auto - Chicago, IL - Armed Robbery
C-Store - San Francisco, CA - Armed Robbery / Clerk killed w/ bat
C-Store - Schuylkill County, PA - Armed Robbery
C-Store - Great Falls, MT - Robbery
C-Store - Madison, WI - Armed Robbery
C-Store - Houston, TX - Armed Robbery
C-Store - Arlington, VA - Armed Robbery
Clothing - San Bernardino, CA - Robbery
Clothing - Philadelphia, PA - Burglary
Dollar - San Antonio, TX - Robbery
Eyewear - Beverly Hills, CA - Robbery
Gas Station - Bullock County, AL - Armed Robbery
Hardware - Oroville, CA - Burglary
Hardware - Sampson County, NC - Burglary
• Jewelry - Waldorf, MD - Robbery
• Jewelry - Omaha, NE - Robbery
• Jewelry - Auburn, WA - Robbery
• Jewelry - Manhattan, KS - Robbery
Jewelry - Cedar Park, TX - Armed Robbery / Shots Fired
Medical - Los Angeles, CA - Burglary
Restaurant - Sawyer County, WI - Burglary
Restaurant - Washington D.C. - Robbery
Restaurant - Bethesda, MD - Robbery
Restaurant - Theodore, AL - Robbery
Restaurant - Houston, TX - Armed Robbery
Restaurant - Mobile, AL - Robbery
Target - Setauket, NY - Robbery
Vape - Lincoln, NE - Burglary               


Daily Totals:
• 22 robberies
• 6 burglaries
• 1 shooting
• 1 killed


Weekly Totals:
• 87 robberies
• 18 burglaries
• 1 shooting
• 1 killed

Click to enlarge map



None to report.

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MN, MO, IL, KS, WI, MI, IN, or WA - posted June 27
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