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October 3, 2012 SUBSCRIBE

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The Canadian Trucking Alliance (CTA) joins forces with CargoNet to help motor carriers introduce an additional layer of security aimed at reducing their vulnerability to cargo crime. New Jersey-based CargoNet, a division of Verisk Crime Analytics, features a national database, 24/7 theft alert system, task force and investigations support, driver education and awareness training and a tractor-trailer theft deterrence program. To facilitate the CargoNet launch in Canada, a group of CTA member carriers from across Canada are joining the CargoNet program. CTA will retain a seat on CargoNet Canada’s advisory board.

Retailers Against Crime and Facewatch: working together to cut crime in the UK The two groups announced a joint working agreement to promote Best Practice in crime prevention strategies for UK retailers. Retailers Against Crime (RAC) was launched 1997 with participation from 47 outlets. Today, it operates in over 2,500 major stores. RAC recognizes the massive losses incurred each year by retailers caused by highly organized thieves operating in their members' stores. The primary aim of the organization is to assist its members’ crime prevention strategies by helping to reduce shrinkage, cut down on theft (both internal and external) and identify and reduce exposure to risk. Facewatch, which was launched in October 2010, is the UK’s only national crime reporting and image sharing solution which enables CCTV evidence (both moving and still) to be sent directly to the police. (Source

Retailers will pay $2.70 for every dollar in fraudulent transactions Here in the U.S., for retailers, the cost they pay for consumer fraud is going up. Merchants who sell their products using mobile devices or sell internationally are seeing their costs climbing higher still - almost 40 over last year. (Source

The NRF's holiday sales forecast increase of 4.1% is 1% lower than the last 2 yrs & smallest increase since 2009 "In all the years, this is the most challenging year doing a forecast," said Matthew Shay, president and CEO of the National Retail Federation, based in Washington. "There are so many uncertainties." Right now, people are feeling better about rising home prices and a rebounding stock market, but job growth is still weak and prices for everything from food to gas are higher. At the same time, there's uncertainty about who the next president will be and some Americans worry that the U.S. debt crisis could lead to another recession. That's why retailers are still operating as if we're still in a recession and the era of "Doing more with Less" continues. (Source

Toys R Us to match competitors prices even 7 days after the purchase Stealing a page from Wal-Mart's price match standard Toys R Us is getting serious about getting customers through the doors and with pre-purchase ordering and layaways hot toys may be out of stock a lot faster than any other year. Hey the toy industry is a very competitive industry and Toys has shown they'll fight to the last Lego. Let's just hope there aren't many of those Lego ORC freaks out there. (Source

Family Dollar to open 500 stores next year Sales for the company’s fourth quarter ended August 25, increased 10.8% to $2.36 billion and same store sales increased 5.4%. The dollar stores are still just booming. That should translate into probably 5 new LP jobs next year. (Source

Struggling cellphone companies T-Mobile USA and MetroPCS Communications are set to merge T-Mobile USA, will hold 74 percent of the new business, while MetroPCS's shareholders will hold the remainder, as well as receiving a payment of about $1.5 billion. The deal still has to be agreed by shareholders and will require regulatory approval. T-Mobile was blocked last year from merging with AT&T by federal regulators but regulatory concerns this time round appear set to be much milder. Both companies are relatively small, and T-Mobile USA has been losing subscribers for the last two years. And with T-Mobile being the 74% owner the LP department would appear to be completely safe this time around. (Source Associated Press)

Online holiday sales will increase 12% this year and reach between $92 and $96 billion according to (Source

With 585,000 to 607,000 new seasonal employees coming to work in your stores how are you screening them? Still "skimpy" numbers compared to pre-recession hiring numbers of 722,000 between 04' and 07' but none the less they still can cause havoc for LP exec's. Are you ready and have you reviewed the pre-employment screening programs? (Source

Camden, NJ is planning to trade in its police force, even as the murder rate rises. The city is known as the most dangerous city in America, with this year's number of murders set to break records. The decision to disband the Police Department is because union contracts have made it financially impossible to keep enough officers on the street. The plan is to layoff the 273 remaining officers and hire 400 nonunionized officers in their place.  (Source

California joins 2 other states on banning employers from asking for social media access of applicants or workers Gov. Jerry Brown signed into law a state bill that prohibits employers from demanding usernames and passwords from employees and job applicants. (Source

The National Labor Relations Board sides with employer on Facebook-firing decision. This was a first decision for the NLRB and they released a press release on the incident, explaining their reasoning. However, it wasn't a total employer victory and it's important for employers to note certain situations in which an employee is safe from reprimand for things posted on social media.  (Source

CyberSource is conducting their 14th annual Online Fraud Survey. Last year organizations representing 26% of North American eCommerce (over $83 Billion in annual online sales) completed the survey. This study, conducted by independent research firm Mindwave Research, investigates the challenges merchants are facing today. If you are involved in managing online payment risk, they'd like you or the appropriate person in your organization to participate in this study. Forward to your colleague in your company. (Source

Fraud hits large web retailers harder than small fry On average, large e-retailers—those with $50 million or more in annual sales—are losing more dollars per fraudulent transaction than are other merchants, $219 compared with $120, according to the 2012 True Cost of Fraud report by LexisNexis. (Source

American Express Co. has agreed to refund $85 million to 250,000 customers and pay $27.5 million in civil penalties Among the alleged infractions were misleading some people who signed up for the company's Blue Sky credit card program into believing they would get a $300 payment they never received, charging improper late payments and deceiving customers about the benefits of paying off old debts, the regulators said. The violations took place "at all stages of the game -- from the moment a consumer shopped for a card to the moment the consumer got a phone call about long overdue debt. Last week, Discover Financial Services agreed to refund $200 million to credit card customers and pay a $14-million civil penalty for violations related to add-on products, such as payment-protection plans. (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

Cargo theft rate drops over the summer compared to first quarter according to FreightWatch International but there was a increase in the theft of electronics, auto/parts and pharmaceuticals. The average value of thefts for the period of June-August was $139,172, a 5.6 percent decrease in average value from the previous quarter, according to the FreightWatch Cargo Theft Report. (Source

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Families of victims in Elliot Lake mall collapse seek $11M in lawsuits. A second lawsuit related to the collapse of an Ontario shopping mall roof was filed Tuesday in Toronto by families of the two women crushed to death. The families of Doloris Perizzolo, 74, and Lucie Aylwin, 37, are seeking $11.25 million in punitive damages. They allege various people and companies were negligent. (Source

Click here to view videoWarning Strong Language. Microsoft Store Grand Opening goes wrong in Atlanta. When rapper Machine Gun Kelly performed at the store opening on Friday, he quickly revved into high gear, jumping on tables filled with computers (stomping on five of them), throwing a promotional sign, rappings strings of expletives, and giving the finger to employees. When the store cut the music and microphone, Kelly refused to get down from one of the tables and eventually had to be escorted out by police. Kelly has been the subject of past mall flash mobs that have gotten out of control. The question should be why did the Microsoft Store in the Lenox Mall invite him? (Source (Source

2 officers injured while detaining shoplifting suspect at an Ulta salon store in Mesa, Ariz. When they approached the suspect, identified as 38-year-old Jason Roberts, he started running around the store and towards the front door. A physical altercation ensued between the officers and Roberts. The first officer sustained abrasions to his forehead and chin and Roberts grabbed his throat. When the second officer attempted to deploy a taser, Roberts grabbed it and tried to pull it away from him before it was turned on. The report states that after the other officer was able to get it away from Roberts, "...both officers simultaneously deployed their tasers, striking Jason." (Source

Standoff with Police ends after 3 hours at Family Dollar in St. Louis. An attempted robbery at the Family Dollar store in north St. Louis ended peacefully overnight when the armed suspect surrendered to police after a standoff. Authorities were called by an employee of the store around 12:16 a.m., the employee told police he and the store manager were working late to stock merchandise. When they were leaving for the night, a man with a gun approached and announced a robbery. The employee ran from the scene and the armed suspect then forced the store manager back into the store and ordered the manager to open the safe. (Source

T-Mobile Store in Woodbridge, NJ hit for $24,000 of Samsung Galaxy phones. About 40 Samsung phones valued at $24,000 were believed to be taken by two armed men at 12:30 yesterday. The employees were restrained in a backroom but unharmed. Police believe these are the same suspects who hit a store in Linden two weeks ago. (Source

LensCrafters smash-and-grab burglars may have hit third store in Southern Cailfornia. Authorities identified the three men suspected of stealing high-end sunglasses from two Orange County LensCrafters stores early Wednesday, and said they might be responsible for a third burglary. (Source

Serial shoplifter busted hitting Bon-Ton store in Lancaster, Park City Center, Pa. A Lancaster man on Friday was arrested for retail theft -- for the 12th time. Darnell E. Hayes, 48, of the 100 block of Green Street, concealed $730 worth of children's clothing in a plastic bag and then fled from the Bon-Ton store at Park City Center, city police Lt. Todd Umstead said. Hayes fought with a loss prevention officer and Park City security, Umstead said. (Source

September Same Store Sales Results
Zumiez up 5.6%
Walgreens down 11.1%
Wet Seal down 12.7%

Washington State ORC Alliance Annual Training Conference - Burien, Washington - October 18, 2012 - Click here to register


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Ohio mother and daughter running a shoplifting ring indicted Busted hitting a Bath & Body works their method of operation was "down to a T" and they always brought in children to cover their acts. They hit retailers for hundreds of thousands of dollars and are still in jail. (Source

ORC couple hit Giant food stores in 5 counties with retail theft & refund scam Donna Ann Levonuk, 50, and her husband, Manuel Kunsman Levonuk, 55, both of 538 Montgomery Ave., Haverford, were arrested Wednesday and charged with 576 counts each of felony theft by deception and more than 770 additional charges of felony receiving stolen property, forgery, tampering with records and other offenses. The pair utilized a retail theft and return scam in which they lawfully purchased items from Giant food stores but then made "multiple counterfeit/fraudulent copies" of those receipts and then stole "enough product(s) from the store(s) to do several return scams with the counterfeit/fraudulent receipts." (Source

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Shreveport pull over a car suspected in grab and run robberies, recovering thousands in merchandise. Algretta Hewitt, and Charles Layton, were both arrested after security at Dillard’s, which are Off-Duty Shreveport Police Officers reported the car’s information following a shoplifting incident. Police believe Hewitt may be connected to tens of thousands of dollars in merchandise stolen from area stores. (Source

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Vendor Spotlight
Vector Security
Vector Security recently launched a new web site

Vector Security recently launched a new web site with content, products and offers tailored to home security, business security and national accounts. You can view the new site at

"The new web site supports our recently updated brand look and positioning in an easy-to-navigate format," says Art Miller, Vice President of Marketing for Vector Security. "We wanted to build a web site and online presence that reflects who we are, what we do and represent the customers we serve everyday across North America."

Visitors of the site can enter their zip code to find available promotions and offers in their area. The site also features a comprehensive look at the products and services that Vector Security offers to business and national account customers in addition to residential consumers.

In the coming months, Vector Security will add additional resources and information to the site to keep it fresh and up to date. Miller adds, "We will continue to build a valuable online resource for consumers of security and security-related products and services based on the feedback and needs of our customers."

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.

Share Your Thoughts

Thought Challenge

What is the true cost of "False Positives?"

by Fran Clark
V.P. Business Development
Profitect, Inc.

A False Positive (FP) is when you investigate what you think is a problem for the company, it turns out to be a normal, valid transaction. FP does NOT mean that what you found wasn't fraud. I believe that any time you research what you believe to be a problem and it was a pricing, training, process or compliance issue... its isn't a false positive. A VP of Asset Protection for a top 10 retail organization once told me that his FP's were anywhere from 50%-90%. To me, that's a massive investment in investigation time.

For responses to my question, I won't disclose names of person, company or products referenced. I will publish the results of my findings. Perhaps a good study would be to find out how many FP's your department has for a month or a quarter... just for you own information. Fran can be emailed at

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Director Regional LP Lowe's Franklin, TN Lowe's
Dept Mgr Store LP & Safety Lowe's Palm Desert, CA Lowe's
Asset Protection Mgr Sam's G1 Bradenton, CA Walmart
AP Manager in Training Walmart Clayton, OH Walmart
Asset Protection Mgr Home Depot Detroit, MI Home Depot
Asset Protection Mgr Home Depot San Leandro, CA Home Depot
Retail Female LP Detective Bloomingdale's Short Hill, NJ Macy's
Area LP Mgr Bed Bath & Beyond Phoenix, AZ Bed Bath &Beyond
Loss Prevention Mgr Century 21 Dept. Store New York, NY Century 21 Dept. Store
Loss Prevention Mgr Amazon Jeffersonville, IN Amazon
LP District Mgr DSW Inc. Columbus, OH DSW Inc.
Loss Prevention Mgr Sears Jacksonville, FL Sears Holdings Corp.
Loss Prevention Mgr Kmart
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Dan Valladares was named Director National Accounts - Western US at Diebold.
Paul Esner was promoted to Area LP Manager for Staples.
Katie Hultman was promoted to Loss Prevention Operations Auditor for Staples.

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3 Signs That You Are Stressed Out (And How To Fix It) "When my sock drawer is perfectly folded, sorted and lined up, I know that I am out of control in my life." Her logic is simple—the sock drawer is the lowest priority item on her life's to-do list. When everything else is out of control, she sorts her sock drawer. At least then she can feel like she got something done and is back in control. (What's yours?)

New Study: Leaders Are Less Stressed Than Their Subordinates A new study suggests that people in leadership positions experience less stress than their subordinates. Published on Monday the study was written by a group of seven academics from Harvard, Stanford and the University of California at San Diego who work in the fields of psychology, business and public policy. (Which came first: the chicken or egg?)
How to Make Huge Decisions The business world trains us to actively solicit opinions, bounce ideas off other people, and run our ideas up proverbial flagpoles in order to harness the amazing brain power of the many to make awesomely incredible decisions. Sometimes that approach works... but sometimes it's the worst approach to take when you need to make a huge decision. (Yuck!)

7 Habits of the World's Best Business Leaders When we say “the world’s best leaders.” we're not just speaking about Steve Jobs. The world’s best leaders are the people who get things done. The people who take a business from struggle to success. From idea to world-changing reality. These people are not necessarily at the helm of the company. A leader could be a salesperson who finds a way to both better serve the client and to cut costs while doing it. (Not the biggest ego)

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How many times have we heard the term about retailers who are reinventing themselves? JC Penney is a great example right now - today. But if you really think about the term and take it seriously, it can be extended and used almost any day you go to work. Because every time you fill an LPM role in a store, or have a new District Store Manager take over a district, or have a new Regional VP of stores take over, you have an opportunity to reinvent your LP program; To wipe the chalk board clean of all the mistakes and weaknesses and take the positive things and make them even stronger. Whenever or where ever there is change in your organization or in your stores there's the opportunity to reinvent yourself, your program, and the services you deliver each and every day. It's merely a matter of realizing it and embracing change as an opportunity to reinvent. Certainly it requires focus and commitment, but at the end of the day isn't it great to have a new beginning; a new fresh start? Well anytime you have change you've got that opportunity, you've just got to take charge and do it!

Just a Thought,
Gus Downing

Gus Downing

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