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September 19, 2012 SUBSCRIBE

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Pilot Flying J alleges $400,000 fraud each month at California pumps. Pilot Flying J recently re-instituted the ZIP code verification for all credit card purchases at its fuel pumps in California, hoping to combat the $400,000 per month they are losing to credit card fraud. In April 2011, due to the statutory requirements of the California Supreme Court ruling, Pilot Flying J removed the ZIP code verification requirement for credit card purchases at the fuel pump at its locations in California. Mitch Steenrod, the CFO for Pilot Flying J Travel Centers based in Knoxville, Tennessee, said, "a sophisticated credit card fraud operation is exploiting Pilot’s insistence on following state law." Because zip codes are not included in the data in the mag stripe on the back of credit cards, asking the purchaser to enter their zip code at the gas pump stops thieves. "California is the only state out of 46 in which we operate where this [fraud] is happening and Pilot is the chain that is being hit, because we are following the law." (Source (Source

"Apple Picking" on the rise
. Officials are warning that there has been an increase in stolen Apple products, causing cities across the country to go on alert. 30-40% of robberies in several major cities involve cell phones, according to the Federal Communications Commission.  (Source

Threat level goes HIGH, as Microsoft readies fix for critical Internet Explorer security hole. Experts at SophosLabs have raised their threat level to "High" in response to an as-yet unpatched security vulnerability in Internet Explorer. The zero day threat, which was uncovered over the weekend and impacts most versions of Windows, has already resulted in the German government advising users to stop using Internet Explorer. (Source

Macy's NYC flagship is getting a $400M makeover. Macy’s is looking at the success of the Apple stores format and wish to capture that elegant minimalist design. The makeover will be completed by 2015 and add 100,000 square feet of retail space. (Source

Chicago is out of room for 'mid box' retailers. High income consumers in areas like Lincoln Square, River Forest and Bucktown have fewer choices to spend that money because mid box retail space is just not readily available. Dan Tausk of Mid American Real Estate, believes that retailers need to be more creative with multi-level designs and looking into the rezoning of obsolete industrial spaces. (Source

Tesco boss Phillip Clarke embarks on digital revolution. Tesco PLC Chief Executive Philip Clarke said Wednesday the "tectonic plates are shifting" in the retail industry as problems in the euro zone start to affect previously high-growth regions, forcing companies to adapt to new technology or risk losing competitiveness. Mr. Clarke said digital technology, smart phones in particular, represented a lifeline for the retail industry in straightened times, offering new ways to personalize the shopping experience for customers. (Source

Australia’s David Jones studies sale of properties to raise $640 Million. David Jones, Australia’s second largest department store company is studying a possible sale of its Flagship Sydney and Melbourne outlets for A$612 million ($640 million) as full-year net income fell 40 percent. (Source

AutoZone Q4 profit rises, but sales miss view. Auto Zone’s domestic same store sales, or sales for stores open at least one year, increased 2.1 percent for the quarter. This compares to an increase of 4.5 percent in the year-ago period. Bill Rhodes, chairman, president and chief executive officer of AutoZone said, "While our same store sales performance was below our expectations for the quarter, we are confident we are well positioned to again deliver strong results for our new fiscal year." (Source

Apple could wipe out other payment companies - like e-readers killing the book store
. Consumers can't ever be without their phones. Because of this, it is interesting to look at the current state of cash, checks, and credit card companies. However, there is another company that needs to start panicking: payment processing giant VeriFone.  (Source

RILA Educate. Innovate.Advocate.Retailers to Meet at Nike’s Headquarters:

Members of RILA’s Operational Audit Committee are meeting at Nike’s headquarters in Beaverton, Oregon October 16-17 for two days of education and networking. Over the 2-day event, retailers and industry solution providers will present on leading audit practices inside retail and distribution center location, participate in open forum discussions and walk committee members’ stores to identify effective audit practices. If you are interested in attending the Operational Audit Committee meeting, contact Lisa LaBruno, Esq., Vice President of Loss Prevention & Legal Affairs at RILA, via email at

Study finds that schools are less prepared for a biological event or pandemic than they are a natural disaster. Terri Rebmann, Ph.D., associate professor at St. Louis University's Institute for Biosecurity led the study. The study also found that while less than 50% of schools had a disaster plan, almost half of those didn't include coordination with state or local agencies.  (Source

What exactly is the business value of safety to company leadership
? It's probably no surprise that occupational injuries are costly not only in dollars, but also in lost productivity and morale. At a recent America's Safest Companies Conference panel, EHS professionals were shown tactics to help demonstrate the business value of safety.  (Source

C-store owner has vendor killed for holding back deliveries. The trigger man, Terrico Bethel was convicted last month to life without parole, now prosecutors are focused on Fred Shields for his connection in the murder for hire case of Neal Sweeney in Tulsa. Mohammad Aziz ran three convenience stores and bought gasoline for them from Sweeney's company. In 2008, he was about to lose his convenience stores and placed the blame on his gas man, Neal Sweeney. When Aziz's businesses started failing and he couldn't pay his gas bill, it got shut off, and he said that made him furious. One of Aziz's employees said his hatred toward Sweeney was all-consuming and that Aziz talked about planting drugs in Sweeney's jeep to ruin his reputation and putting ten rattlesnakes in Sweeney's vehicle. Aziz testified he decided in May 2008 to find someone to shoot Sweeney. Four months later, Sweeney was dead. Aziz said he agreed to pay Fred Shields $11,000 for the contract killing, paid for on installments. Shields farmed the actual killing out to Terrico Bethel. (Source

Kay Jewelers robber in New Hampshire gets 3 years in Federal Prison. Shyloe Piper Johnson was one of four suspects in the Kay Jewelers robbery in Tilton, New Hampshire last year. She also played a role in the robbery of a Credit Union. Johnson her boyfriend and the two other accomplices have all been arrested. Delano Nelson is the last to await trial which will begin in November. (Source

Gunman admits guilt in shooting of Weis Market security officer. A Lancaster, PA man admitted Monday to shooting a security officer who tried to stop him for stealing items from a local grocery store. Kenneth Peralta, 40, pleaded guilty to attempted murder and other charges in connection with the Nov. 21, 2010, shooting at Weis Market in East Lampeter Township. Jury selection was to begin Monday morning for Peralta's trial. As jurors were filling out questionnaires, Peralta told his attorney he wanted to plead. After telling the judge his plea was sincere and he is owning up to the crimes, Peralta turned to Fantom and apologized. Brian Fantom, the wounded security officer, was in the gallery to watch the hearing, but said nothing. Peralta is locked up at Lancaster County Prison on $1 million bail. (Source

British Columbia thieves smash into Metropolis Mall targeting jewelry stores. Burnaby RCMP is seeking four male suspects responsible for smash-and-grab thefts at two jewelry stores in Metropolis at Metrotown last Friday. In surveillance video footage shot early on the morning of Sept. 14 a janitor sweeping the floor of the mall is sent scrambling when a red Jeep comes crashing down the corridor. (Source

Florida man arrested for stuffing $450 worth of clothes, shoes, & cologne in his pants. Byron Harvey wanted to get his hands on as much stolen merchandise as possible, and wasn't above using his pants to carry out his thievery. The 38-year-old Florida resident stuffed nearly $450 worth of merchandise from Bealls in his pants at the end of a three-day drug bender of "doing powder and pills." (Source

French tourist fined $8000 for stealing a $32,000 handbag in Singapore. The mother of two could have faced three years in prison for the theft of a Ralph Lauren handbag, but her attorney claimed she suffered from kleptomania and asked the court for leniency. (Source

Store owner shoots at robbers, said he was prepared for this event. Garry Thornsberry the manager of a small Kentucky convenience store knew this day would come. As thieves entered his store, he popped out of the backroom of his store and opened fire on two armed robbers. Thornsberry is not sure he hit either of the thieves, but believes in his mind it was the only option. (Source

Police search for suspect in Hanes Mall armed robbery. Police have released photos of a man accused of robbing a store in Hanes Mall at gunpoint Sept. 1 in Winston-Salem, North Carolina. The suspect allegedly robbed two employees walking in the mall after leaving the Buckle clothing retailer around 10 p.m. Police said he came out of a bathroom with a handgun and demanded money be placed in a bank deposit bag. (Source

McDonalds armed robbery in Abington, PA caught on tape. Abington police are hoping surveillance video of an armed robbery early Monday morning at a McDonald’s on Old York Road will help them find the three men who held up the fast food restaurant. Police say it was just after 6 am when two men, at least one armed with a handgun, burst into the store and announced a holdup while a third man served as lookout. (Source

O’Reilly’s Auto Parts safecracking burglary at Madison Heights, Michigan store. Police are seeking tips as they investigate how someone cut through the roof of an auto supply store then cut into a safe and stole $3,000 without setting off the alarm system. The safecracking burglary was discovered after employees at O’Reilly’s Auto Parts store arrived for work about 6:15 a.m. Friday and found a puddle of water on the floor and saw a hole was cut in the top of a safe under a customer service counter. (Source

TJ Maxx in Cottonwood Heights, Utah burglarized without setting off the alarm. Suspects gained entry by cutting through the roof , slipping in and stealing only the contents of the safe. The burglars did not trip any alarms and the event was not captured on video surveillance. (Source

Destin, Florida woman arrested for shoplifting spree at several stores. Steinmart Loss Prevention busted a 21 year old female with $102 worth of merchandise, but that was only the beginning of her problems. As police searched they discovered shoes from an area shoe store and more merchandise from a local Marshall's store valued at $161. (Source

New England ORC Symposium & Trade Show - September 20, 2012 Worcester, MA - DCU Center


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NRF Loss Prevention - Executive Summit 2012. Sept. 18-19, 2012. Hyatt Regency Schaumburg - Chicago, IL

Watch for our article the day after each event!

CLEAR's 3rd Annual Training Conference, Dallas, TX. Sept. 18-20, 2012. Learn more here.

New England ORC Symposium & Trade Show - September 20, 2012 Worcester, MA - DCU Center

8th Annual Impact Workshop. Join other retail executives interesed in LP research on ORC prevention, packaging innovation, video analytics, benefit denial, plus much more. LPRC: October 15-17, 2012. University of Florida Campus. Gainesville, FL

Washington State Organized Retail Crime Alliance Annual Training Conference. Burien, WA. October 18, 2012. To register visit

2012 Thought Challenge Awards Committee

Northern Michigan University, located in Michigan’s incredible Upper Peninsula, offers one of the only baccalaureate loss prevention management programs in the United States. It is offered completely online and accepts up to 92 transfer credits. An affordable investment into a dynamic and growing profession. Learn more here

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ORC News - Sponsored by Universal Survellience Systems

Minnesota woman that hit Target sentenced in Federal Court on counterfeit checks case must pay $45K in restitution. Ci’Preaunni Ja’Von Stewart admitted that she and Ryan Lamarr Chambers used counterfeit checks to purchase gift cards and merchandise primarily at Target stores. The counterfeit checks went undetected for days because the defendants claimed the checks were traveler’s checks. (Source

Prescott, Arizona police arrest 2 men in Verizon store robberies, one is a former employee. Prescott police said they have linked a former employee of a Verizon store to a robbery there on Friday. Nicholas Allen Lackey was arrested over the weekend on suspicion of robbery. Investigators said they also linked Lackey to a previous burglary at the same Verizon Store on Aug. 20. (Source

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
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Vendor Spotlight

Vector Security
Brian Van Ness Joins Vector Security® as Sales Director

Sales Leader Brings Proven Record of Performance to Further Company's Growth Agenda.


PITTSBURGH, September 10, 2012 - Vector Security, one of North America's top electronic security companies, announces the addition of Brian Van Ness as Regional Director of Residential Sales, reporting to Pam Petrow, President and CEO. Brian, previously with ADT, will head all sales efforts for residential security with an initial focus on Washington DC area, Philadelphia, PA and Princeton, NJ.

"Brian is an award-winning performer with a proven track record of success," said Pam Petrow, President and CEO of Vector Security. "We welcome Brian to the team and look forward to his continued success in delivering tailored security solutions for homeowners across the areas we serve." The addition of Brian is an important component of our focus to grow our sales team and increase market share.

Brian joined Vector Security on September 4, 2012. He resides in Virginia with his wife and three children.

About Vector Security
For more than 40 years, Vector Security, Inc. ( has been a premier provider of intelligent security solutions tailored to the needs of the customer. Headquartered in Pittsburgh, the company offers a full suite of electronic security services for residential, business and national account customers across North America and the Caribbean through a network of branches and authorized dealers. Vector Security is a sister company of the Philadelphia Contributionship, a private insurance company founded in 1752, and currently provides cost-effective, technology-based security solutions to more than 260,000 homes and businesses.

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Dept Mgr Store LP & Safety Lowe's Destin, FL Lowe's
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Joshua Edwards was named Regional Manager, Loss Prevention for St. John Knits.
Jim Cosseboom was named Manager of Investigations and Corporate Security for Ahold USA.

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See The Glass Half Full or Empty? Why Optimists Are Happier, Healthier & Wealthier! Times are tough and many people are struggling to stay optimistic given the states of the economy, the insecurity of their jobs, the size of their mortgage and the strain that puts on relationships at home. Maybe you are one of them, or maybe you know someone else who is having it tough. (Pessimism kills)

Character: 5 Questions to Ask Yourself In a new book, author Paul Tough argues that while education stress the cognitive skills, it may be more important to focus on "noncognitive skills" which he calls "character." Character is the defining aspect of leadership. Without it, trust is impossible and so by thinking about it, reflecting on its role in our society, and finally challenging our own assumptions we come to grips with it. (Ask yourself)
It's Not About You. (The Best Leaders Focus On Others.) Forbes writer George Bradt recently commented that "One of the most fundamental lessons of leadership is that if you're a leader, it's not about you. It's about the people following you. The best leaders devote almost all of their energy to inspiring and enabling others. Taking care of them is a big part of this." (The needs of others)

Why Leadership Matters: Contrasting Start of NFL Season for 49ers, Saints Leadership. What can we say? It matters. When an organization has it, coupled with a talented and motivated workforce, great things can happen. Without leadership, even talented and respected workers may not have the overall structure needed to sustain excellence. Let's look at it from the NFL perspective. (Harbaugh and Payton)

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Don't fool yourself with getting lost in the email world and wondering why the morning flew by and nothing really got done. With the mere volume of emails we all receive each day, even with spam filters turned high, the shuffling and responding can eat your day away. The real issue is how we use emails to pass responsibilities and work off to other people or to express our hidden opinions after the boss is gone. My favorite happens to be the one who says - Oh I never got your email - as if there's a parallel universe and I'm in the one that doesn't exist. Emails have changed our world. Don't let it change your performance.

Just a Thought,
Gus Downing

Gus Downing

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