The Great Debate Over America's ORC Surge
The Robin Report: Grand Theft Retail? Maybe...Maybe Not
Make no mistake about it: The stealing spree is real and it's putting the hurt on retailers. But some people believe the level of theft noise is just that: a distraction from poorly performing brands.

Who is telling the retail truth? Is it door #1, #2...or #3 (all of the above)?

Door #1: Crime Stories

Theft in stores is up. How much? Bad enough that the National Retail Federation declared Oct. 26 Fight Retail Crime Day and urged its members to come to Washington, D.C., to advocate for passage of the Combating Organized Retail Crime Act.

Door #2: Other Stories

Given all of the attention paid to retail theft - something that has been a fact of life in the industry since dry goods stores opened in lower Manhattan 200 years ago - some people are suggesting that perhaps if retailers are not crying wolf, they are at least showing modest wolf-crying tendencies.

Buried in all the press about significant store closings in downtown San Francisco by Nordstrom, Gap and Whole Foods blamed on crime was the fact that these stores were taking big hits from the lack of office workers in downtown.

The Intelligencer story in New York raised the point that "reliable data on shoplifting is extremely difficult to come by" given the fact that many such crimes are never reported to the police so they can't be attributed to a specific occurrence.

Door #3: All of the Above

So, who's right? Neil Saunders, the well-known retail consultant from GlobalData, told Intelligencer, "I think there is a theft problem that has to be recognized but I think there is a bit of a bandwagon effect." In a statement that, probably unintentionally called attention to retailer's lemming-like tendencies to copy one another, he said "Once one retailer discusses shrink, it becomes a buzzword and then investors start asking questions about it, so other executives on calls start addressing it.

Store theft is bad...really bad, and don't let anybody tell you otherwise. But it doesn't tell the whole story and like retailers who perpetually blame the weather, the calendar, and the stars for their underperforming business, it is only the latest rationalization.  therobinreport.com


Nationwide 'Crash-and-Grab' Epidemic
Crash-and-grabs on the rise as thieves use cars to break into stores

Crash-and-grab crimes emerge as new trend in theft across the U.S.

While Americans have witnessed an uptick in criminals wreaking havoc on retail establishments and using cars to breach buildings or steal ATMs, crash-and-grab incidents are now emerging as the latest trend in theft taking place across the country.

Criminals are now using vehicles as weapons to steal merchandise from stores and this trend has spiked, particularly in locations like Chicago. Consequently, law enforcement is issuing community alerts to address these crimes.

In just the last week, six crash-and-grab incidents have occurred in vintage and sneaker stores across Chicago - thieves use SUVs or cars to smash through store doors and swipe merchandise.

"Pretty quick thing, they were in here for about four or five minutes but they were able to make off with a few handfuls of stuff," said Jeff, co-owner of Urban Jungle.

Retail crimes have spiked nationwide - Los Angeles, the San Francisco Bay Area and Houston are ranked the top three worst cities for theft, according to the National Retail Federation. Chicago is ranked eighth.

The new crash-and-grab trend has business owners and shoppers on edge. "All these robberies and stuff is scary; I don't feel safe anymore," a Chicago resident said. newsnationnow.com


Retailers Take Action against Out-of-Control Cart Thefts
Stores frantically shopping for solutions to cart thefts

An answer? Invisible fence that locks their wheels

The city of Bremerton and surrounding jurisdictions have become hubs for unregulated and unprosecuted shopping cart thefts, leaving customers and retailers more often than not playing the least fun game of scavenger hunt imaginable.

Unfortunately, the majority of what they are looking for is no longer on site, with carts scattered across public roads, parks, trails and private property. Identification tags showing what store they belong to are often stripped off, and either occupied or not, it's not uncommon to find plenty of unpleasantries inside the baskets.

Cart theft was already an issue growing out of control in 2022, linked to a similarly growing homelessness crisis, and both have ballooned over the past year. Why the proliferation? Officials said shoppers simply are not returning carts, there is a lack of security and state law makes it nearly impossible to prosecute offenders.

With no changes in sight, businesses are left picking up the bill, and customers pay more at the register to make up the difference.

The crisis has led some companies to explore investing in cart security systems. Paul Morgan, general manager for Bremerton's Grocery Outlet, has been OK'd to install an invisible fence and locking wheels on carts would be triggered when taken outside established boundaries.

Locking wheels have already seemed to have some effect at stores like Winco, its Silverdale property often seen with carts right at the edge of the parking lot. Morgan expects his store to not be the only one to make the move in future months, saying he believes it could cease the majority of cart thefts. Until then, however, it's a frustrating game for everybody, especially those not in a position to purchase the anti-theft technology.  bainbridgereview.com


Gatekeeper Systems' Solution to Cart Theft
'Protect the Carts' with Gatekeeper Systems
Every year, 3 million shopping carts are replaced, with most leaving a retailer's parking lot never to return. Another 4 million will be stolen before their 3rd year of service. Are your shopping carts an ever-growing blight within your organization? Are the days of a cart for every customer a distant memory, lost in the chaos of rusty baskets and squeaky wheels? Do you worry about the mounting maintenance and replacement costs, not to mention what it looks like to your customers and community seeing such disrepair? Don't despair! For just dollars per day, you can change the life of a shopping cart. Give your organization the gift that keeps on giving.

Install Gatekeeper Systems, CartControl® system! Say goodbye to daily cart rescue missions and costly municipal fines - save time, money, and hassle with an investment that pays you back. Shopping carts should be making you money, not costing you money. Stores often experience a full, multi-level return on investment within a year of installing a CartControl®system.

Read Gatekeeper's full blog here


Is Self-Checkout Adding Fuel to the Theft Fire?
Why self-checkout has become controversial

The self-checkout has become a point of controversy for many shoppers. Some love it for the solitude, and others hate it for the frequent technical errors.

As Wal-Mart begins to remove some self-checkout lanes in response to growing incidents of theft, others, like Kroger, are doubling down on the technology, converting some of its locations to entirely self-checkout sites. The cost-saving approach has backfired a bit.

"The issue that's getting a lot of traction right now is the issue of theft. And what stores found was that not only do many customers require assistance to complete their transactions, if they do not staff the self-checkout lanes, customers will exit with the goods," Andrews said. "So, in a sense, stores thought they were going to save money on labor costs by adding these. And instead, they're losing money through theft and shoplifting, and then they're having to put stuff back there. Just to help address that."

The situation with theft has gotten so bad at self-checkouts that it's become a joke on social media. In an effort to crackdown on theft, some stores are even changing how they confront people at self-checkout.

"So, some stores will wait until you have stolen a certain amount of merchandise so they can charge you with an elevated charge," Andrews said. But that doesn't change the fact that the technology itself needs some work.

"I actually think that the technology has to be much more intuitive and error-free," Sylvain Charlebois said. Charlebois doesn't believe cashiers will completely disappear, but says that kind of service may come with a price. 10news.com


Another State Proposes ORC Legislation
Ohio State Representative Set to Introduce Bill Addressing ORC
Ohio State Representative Haraz N. Ghanbari (R-Perrysburg) recently announced his intent to introduce legislation focused on combating rising losses from organized retail crime in the Buckeye State.

Ghanbari's Fight Organized Retail Crime & Empower Law Enforcement (FORCE) Act will "protect the safety and well-being of Ohio retailers and consumers while simultaneously targeting Organized Retail Crime (ORC) theft rings."

Specifically, the bill, if enacted, would update Ohio laws and policies to "empower local law enforcement and prosecutors to respond to these incidents accordingly."

Ghanbari's bill comes as organized retail crime has skyrocketed across the nation in recent years. Data from the National Retail Federation shows retailer losses amounted to $112.1 billion billion dollars last year, of which organized retail crime was a significant driver.

A total of 3.59 percent of all U.S. retail crime in 2021 took place in Ohio costing businesses in the state approximately $3,944,650,700, according to the U.S. Chamber of Commerce.

Gordon Gough, the President and CEO of the Ohio Council of Retail Merchants, applauded Ghanbari for his plan to introduce the FORCE Act, saying, "Far more than this financial impact, the FORCE Act also addresses Ohioans' growing concern over violence and safety for customers and store associates. This legislation will give Ohio law enforcement officials and our judicial system more tools to apprehend and punish criminals while protecting consumers and retailers. We look forward to working with Ohio leaders to tackle this problem effectively."  theohiostar.com


UK's New "Zero Tolerance" Plan on Shoplifting & ORC
Police will pledge to attend every shop robbery

A new "zero-tolerance" plan will be agreed between ministers, police and retailers to crack down on shoplifting and the organized crime gangs fuelling the problem.

At a summit in Downing Street, police chiefs will unveil plans for how they intend to tackle shoplifting, which has soared by a quarter of the last year to reach more than 1,000 per day.

Police have been accused of not taking the crime seriously enough as the number of cases solved has fallen over the same period, with just one in eight shoplifters caught and charged.

For the first time, shoplifting will have a dedicated national unit that will investigate the crime from an organised crime perspective. Six new intelligence analysts will be employed within Operation Opal, the National Police Chiefs' Council's (NPCC) unit for tackling serious organized acquisitive crime. thetimes.co.uk


UK police minister calls for more live facial recognition
In a letter to police chiefs published on Sunday, the country's Policing Minister Chris Philp said that the UK police should use live recognition more widely to quickly identify suspects and deter crime.

"AI technology is a powerful tool for good, with huge opportunities to advance policing and cut crime," says Philp.

The call came after police caught three at-large suspects using live facial recognition technology during last month's Arsenal vs. Tottenham football match in London, including one wanted for sexual offenses. biometricupdate.com


Fight Retail Crime Day By the Numbers
Retail Community and Policy Leaders Unite to Combat Organized Retail Crime
In honor of Fight Retail Crime Day on Oct. 26, NRF hosted a press conference on Capitol Hill with congressional sponsors of the Combating Organized Retail Crime Act of 2023 (S. 140/H.R. 895). Speakers included Sen. Chuck Grassley, R-Iowa, Sen. Catherine Cortez Masto, D-Nev., Rep. David Joyce, R-Ohio, Rep. Dina Titus, D-Nev., Rep. Susie Lee, D-Nev., Rep. Glenn Ivey, D-Md., and Rep. Ruben Gallego, D-Ariz.

NRF Fight Retail Crime Day by the numbers:

• Attended by 70 retail asset protection executives representing more than 30 retail brands
• 73 retail companies signed a letter to members of Congress calling on them to support CORCA
• 65 meetings with congressional offices by retail delegations
• 20 media outlets covered the NRF-hosted press conference
• Over 4,200 individual grassroots letters sent to members of Congress in support of CORCA  nrf.com


Combating Organized Retail Crime Act of 2023 Update
U.S. Senate: Senate Bill 140 - Combating ORC Act Adds 1 New C-Sponsor
Now reaching 10 Senate Co-Sponsors - 4 Democrats and 6 Republicans. Is your member of Congress supporting the bill? Check out the list here.


Exclusive: Crackdown on S.F. drug markets brings surging arrests, deportations
Five months after local and national law-enforcement officials launched crackdowns on San Francisco's open-air drug markets, one long-time dealer said he won't risk venturing into the Tenderloin much anymore and most of the other dealers he knows are avoiding the area as well.

Florida crime trending down while Calif. skyrockets explained by one key difference

Seattle survey seeks input on crime, police response times and community concerns

Despite Backlash, Self-Checkout is Here to Stay - For Now
The downsides of self-checkout, and why retailers aren't expected to pull them out anytime soon
Although opinions on self-checkout are mixed, many retailers are leaning into the technology. Some Kroger supermarkets are operating entirely via self-checkout. Kohl's earlier this year announced plans to add self-checkout kiosks to 250 stores. And fast-fashion brands like Zara are rolling out self-checkouts at select stores.

But other chains appear to be reconsidering their approach, with certain stores removing the technology or staffing up self-checkout lanes to prevent theft. The shift comes amid reports that raise questions about just how much value self-checkouts bring to retailers and shoppers.

The share of transactions through self-checkout lanes hit 30% in 2021, almost double that from 2018, according to data from the Food Industry Association.

But there are also concerns. Failures aren't uncommon with the devices, despite their high price tags. And while self-checkout is meant to help cut down labor costs, this has yet to pan out in the data.

"I think many companies believe they've saved their money with self-checkout, but it's going to vary by store. And the stores that have tried to go all the way, I think they've realized that it's not a good idea," Larson said. "The key is to give people an option."

Theft concerns around self-checkout

Self-checkout kiosks are also known to contribute to shrinkage. Retailers have been sounding alarms on shrink recently, with a number of companies putting the blame on a spike in organized retail crime. Self-checkout isn't often brought up as a concern, despite data that shows it can have an effect on shrinkage.

A 2018 report authored by Adrian Beck, emeritus professor at the University of Leicester's Department of Criminology and academic adviser to the ECR Retail Loss Group, found that stores with the average number of self-checkout machines could expect to see shrinkage losses 31% higher than the industry average, and those relying on an above-average number of unmanned kiosks could see shrink rates 60% higher.   usatoday.com

   RELATED: Walmart shoppers say they are fed up with store self-checkouts


Making the Case for Security Budget Boosts
5 strategies for advocating for a security budget increase
To ensure the success of their budget increase requests, CSOs should consider the following multifaceted strategies, each designed to enhance their position and augment their ability to secure essential resources:

Optimization of security operations: The adoption of cutting-edge technology, vendor consolidation and the judicious use of automation can significantly enhance the efficiency and effectiveness of security operations. CSOs should strive to align all security efforts with organizational objectives while delivering tangible value.

Business acumen: Cultivate a profound understanding of an organization's operations, suppliers, technological infrastructure and evolving needs. This knowledge empowers CSOs to better protect the enterprise and effectively communicate the crucial role of security in achieving business objectives.

Financial acumen: Fluent communication in the language of business is essential. Acquiring financial and accounting expertise enables CSOs to clearly demonstrate the return on investment (ROI) of security initiatives, a critical component when seeking budget increases.

Long-term strategic planning: Develop a comprehensive 3- to 5-year security plan that encompasses budget projections and equipment enhancements. Collaborate closely with other departments and engage regularly with the C-suite to gain insights into their concerns and align security efforts accordingly.

Vendor engagement: Challenge security vendors to provide innovative solutions that bolster security without unnecessary expenditure. Seek opportunities for enhancements and operational efficiencies within security operations.

In a world where security threats are on an relentless rise, CSOs must adopt proactive measures to secure the necessary budget increases that are paramount to the protection of their organizations. By adhering to the multifaceted guidance provided in this document, CSOs can ensure that their budget requests are fortified with compelling business rationale, effectively navigating the ever-evolving security landscape. securitymagazine.com


National Institute of Justice Publishes
Five Things About Protecting Against Mass Attacks
Mass public attacks, whether personally or ideologically motivated, cause much concern and fear. Nonetheless, you can often take actions to prevent, defend against, and respond to mass attacks. A recent NIJ-funded[1] research project analyzed over 600 mass attack plots, hundreds of articles and resources, and dozens of expert interviews to develop the Mass Attacks Defense Toolkit,[2] an online educational toolkit with strategies, guidance, and links to additional resources. Access the toolkit.

Here are five critical points resulting from this research project: Continue Reading


Impacting Customer Behavior Through Digital Signage - Is LP Engaged?
CMS trends: How AI in digital signage will redefine the customer experience

The modern customer experience (CX) is largely dependent on and influenced by digital experiences.

A study by Deloitte found that consumers are leveraging the benefits of in-store and online shopping to conduct research and find inspiration before making a purchase. In this study, shoppers revealed in-store displays motivated them 23% of the time compared to 32% with an online advertisement.

There's been a shift toward creating more customized brand and communications experiences with emerging technologies to close the gap between digital and in-person shopping

With innovations in AI and ML, digital signage software can become an even more powerful, flexible, cost-effective, and scalable solution capable of reaching and engaging various audiences and delivering impactful digital experiences.

In any industry, digital signage enables organizations to quickly and effectively deploy engaging content to specific locations for specific purposes. AI and ML will continue enhancing digital experiences, allowing businesses to adapt and curate personalized, engaging content relevant to the right audiences. digitalsignagetoday.com


The running list of major retail bankruptcies

OSHA Reveals Top 10 Safety Violations at NSC Safety Congress & Expo

Halloween Candy Prices Surge by 13% This Season
 

Senior LP & AP Jobs Market

Director of Security job posted for the St. Louis Cardinals in St. Louis, MO
The primary purpose of this position is to ensure the safety and security of all persons attending Stadium functions; be they guests, employees, players, concessionaires, media or other attendees as well as the Stadium physical plant and all its assets. This includes the management of day to day security operations, the planning and execution of emergency response and establishing and maintaining relationships with local, state and federal law enforcement agencies. indeed.com
 

DHS Responds to Biden's AI Executive Order
Statement from DHS Secretary Mayorkas on President Biden's Executive Order on Artificial Intelligence
Today, Secretary of Homeland Security Alejandro N. Mayorkas released the following statement regarding the Biden-Harris Administration Executive Order on Artificial Intelligence:

"I was proud to join President Biden at the White House today to mark the signing of his Executive Order on Artificial Intelligence (AI). The President has asked the Department of Homeland Security (DHS) to play a critical role in ensuring that AI is used safely and securely. This is a top priority for our Department.

"The unprecedented speed of AI's development and adoption presents significant risks we must quickly mitigate, along with opportunities to advance and improve our work on behalf of the American people. The President's Executive Order defines a seminal path for the safe and secure use of AI. It directs DHS to manage AI in critical infrastructure and cyberspace, promote the adoption of AI safety standards globally, reduce the risk of AI's use to create weapons of mass destruction, combat AI-related intellectual property theft, and ensure our immigration system attracts talent to develop responsible AI in the United States. The AI Safety and Security Advisory Board, which I look forward to chairing, will bring together industry experts, leading academics, and government leaders to help guide the responsible development and safe deployment of AI.

"DHS is already deploying AI responsibly to achieve our missions, and this Executive Order will build on that leadership. In April 2023, I established the Department's first AI Task Force to drive specific applications of AI and, since then, we have quickly developed guidance on the acquisition and use of AI technology and the responsible use of face recognition technologies. I have also appointed the Department's first Chief AI Officer to promote these efforts. As we continue this critical work, it will be centered on our commitment and responsibility to protect privacy, civil rights, and civil liberties."

For more information on the DHS's use of AI, please visit: www.dhs.gov/ai. In addition, DHS has published a fact sheet on how it is leading the responsible development of AI.


The AI Chess Match Heats Up
Fraudsters using generative AI to exploit gaps between customers' touchpoints

Organizations need to take a strategic and seamless approach to mitigating expanding fraud risks

Consumers interact with brands and organizations through many different touchpoints that include online transactions via a website or mobile app, in-branch or in-person at a brick-and-mortar location, call centers, mall kiosks, and much more. While these interactions offer strong customer service opportunities, they represent potential gaps in fraud defense and identity protection.

At a soberingly fast pace, fraudsters are using generative AI to exploit gaps between these touchpoints, and bad actors are looking to take advantage of "moments of value" across a brand's sales or consumer-engagement channels, product offerings, or vertical markets. And they may also go after a business' consumers directly.

Expanding Array of Tools Available for Fraudsters

Publicly available tools like ChatGPT, Bard, and other generative artificial intelligence (AI) solutions can be used by fraudsters to build deceptive, misleading identity artifacts. In some cases, fraudsters use these tools to build scripts for sophisticated and well-articulated social‑engineering schemes that appear to come from legitimate brands that render goods or services to swindle unsuspecting people out of their money.

Fraud Challenges Will Only Get Worse

But the effort doesn't stop there. Beyond the speed of operations that generative AI empowers, along with the many consumer touchpoints and threat vectors that fraudsters use to attack a business today, bad actors haven't yet fully begun to employ the more sophisticated attacks that generative AI may enable. These may include generating deep-fake voice, image, and video artifacts to pass facial or voice biometric checks. As businesses add layered controls for identity verification, authentication, and transactional risk, fraudsters will trend toward using these types of attacks, advancing an ongoing chess match: threat versus countermeasure.

Take Appropriate Defensive Steps: securityinfowatch.com


AI is Catching Up to Humans on Phishing Emails
Humans are still better than AI at crafting phishing emails, but for how long?
Humans are still better at crafting phishing emails compared to AI, but not by far and likely not for long, according to research conducted by IBM X-Force Red.

Creating phishing emails: Humans vs. AI

The researchers wanted to see whether ChatGPT is as capable of writing a "good" phishing email as attackers are. The researchers experimented with various prompts and refined them to finally come up with a list of just five that were enough for ChatGPT to produce the phishing email.

After prompting ChatGPT to chose the ideal sender to impersonate, they instructed it to draft the phishing email. Concurrently, X-Force Red social engineers crafted their own phishing email, after using OSINT techniques to gather information that would help them choose the sender to impersonate and decide on the lure (an internal company survey).

But - and this is important - it took five minutes for ChatGPT to generate the email, while the researchers spent 16 hours on the task.

The final test

"After an intense round of A/B testing, the results were clear: humans emerged victorious but by the narrowest of margins," Carruthers said. Humans can understanding emotions and are thus more successful at weaving narratives that tug at the heartstrings and sound more realistic, she explained.

"Humans may have narrowly won this match, but AI is constantly improving. As technology advances, we can only expect AI to become more sophisticated and potentially even outperform humans one day." helpnetsecurity.com


The Next CISO Charged Failure to Report
SEC charges SolarWinds, its CISO with fraud
The company allegedly misled investors regarding its cybersecurity practices and failed to disclose known risks, according to a complaint.

The Securities and Exchange Commission charged SolarWinds and its CISO Timothy Brown with fraud and internal control failures for allegedly misleading investors about its cybersecurity practices leading up to the Sunburst attack discovered in December 2020.

The SEC on Monday alleged the company overstated its cybersecurity practices and failed to disclose known risks from October 2018 up to at least the Sunburst attack. cybersecuritydive.com


Boeing Breached by Ransomware, LockBit Gang Claims

How to choose the best cloud security posture management tools