Johnson Controls Reports Solid Fourth Quarter and Full Year Results; Initiates FY23 Guidance

CORK, Ireland, Nov. 3, 2022 -- Johnson Controls International, a global leader for smart, healthy and sustainable buildings, today reported fiscal fourth quarter 2022 GAAP earnings per share ("EPS") from continuing operations, including special items, of $1.10. Excluding special items, adjusted EPS from continuing operations was $0.99, up 13% versus the prior year period (see attached footnotes for non-GAAP reconciliation).

Sales in the quarter of $6.7 billion increased 5% compared to the prior year on an as reported basis and grew 10% organically. GAAP net income from continuing operations was $761 million. Adjusted net income from continuing operations of $682 million was up 9% versus the prior year. Earnings before interest and taxes ("EBIT") was $666 million and EBIT margin was 9.9%. Adjusted EBIT was $917 million and adjusted EBIT margin was 13.6%, improving 70 basis points versus the prior year.

Read more here
 

Another State Wages War on ORC
Utah AG Addresses Utah's Work on Organized Retail Crime
Today, Utah Attorney General Sean D. Reyes discussed the issue of Organized Retail Crime (ORC) and the state's work to address it with a group of the nation's largest retailers, including Home Depot, Dick's Sporting Goods, Lowes, Kroger and more.

Organized Retail Crime generally refers to groups and individuals who steal a significant number of products with the intent to sell the items for gain. This includes groups of people or individuals loading shopping carts full of goods and blatantly walking out of the store with hundreds or thousands of dollars of merchandise. There are also reports of "smash and grab" crimes and a rise in thefts of catalytic converters for the precious metals inside. In Utah, the problem is costing retailers millions of dollars every year and affects virtually every brick-and-mortar retail outlet in the state, as well as consumers.

As an authority on Organized Retail Crime, General Reyes spoke about Utah's work as a pioneer in fighting these bold and costly crimes. The Utah Attorney General's Office has dedicated resources to support the full time CASE unit, (Crimes Against Statewide Economy), which includes a public/private partnership to arrest and prosecute the thieves and the people who organize the crimes.

Facts About Organized Retail Crime:

Almost 70% of storefronts have reported an increase in theft over the last year, for losses of at least $45 billion. Rising costs and the overall economic climate in America are contributing to this increase.

CASE focuses on arresting the person running the theft rings (the fence), not just the thieves at the stores. Utah's CASE Task force began as a private/public partnership funded by retailers, but two years ago the Legislature dedicated $500,000 to Attorney General's Office to fund CASE full time.

Utah led the country by dedicating resources to focus on ORC. Common targets for theft include electronics, tools, clothes, jewelry, grocery store items like meat and baby formula and even honey. attorneygeneral.utah.gov

NYC Supermarket Owners Speak Out on Crime Ahead of Midterm Elections
Latino supermarket owners back Lee Zeldin with $70K fundraiser as crime surges
Fed up with a surge in shoplifting, a coalition of mostly Latino supermarket owners across the New York City area are raising $70,000 to back Republican gubernatorial candidate Lee Zeldin in the last days before the election, The Post has learned.

The group of 70 entrepreneurs - who operate supermarkets under banners including Foodtown, Keyfoods, Fine Fare, Bravo's, C-Town and Met Foods - are donating $1,000 each to Zeldin at a fundraising event on Monday at Cafe Rubio in Corona, Queens.

The Long Island congressman's promise to crack down on criminals who are looting grocery stores is resonating, said Nelson Eusebio, head of government relations for the National Supermarket Association, a trade group.

Top on the grocers' wish list is holding shoplifters accountable for a rash of thefts, including reinstating bail for misdemeanors and felonies. New York passed a sweeping bail reform law in 2019 prohibiting cash bail for all but the most serious misdemeanors and felonies.

Zeldin has promised if elected to declare a crime emergency in the Empire State and bypass Albany legislators by suspending state laws that limit cash bail, solitary confinement and how gunmen under age 18 can be tried in adult courts.

He has also said he would fire Manhattan District Attorney Alvin Bragg, who has been criticized for being soft on crime. Gov. Kathy Hochul's reps raised doubts about whether Zeldin's crime emergency strategy is constitutional.

"The issue today is that shoplifting has turned violent," Collado said. "That's where this is going. We have had to rumble inside our stores because the [thieves] don't have any fear."

"When you see essential businesses like pharmacies closing their doors because of crime, that's an alert," he told The Post. "We would like to see and hear about proposals that will address crime and policies on public safety." nypost.com

State Legislatures Across America Grapple with Retail Theft Crisis
Senator from Ritzville says state needs to do more to combat retail theft in WA after value of stolen goods doubles
Republican 9th District State Senator Mark Schoesler is adamant about inspiring the legislature to do more about preventing retail crime across Washington state.

"Retail crimes hurt not only stores and shops, but also consumers because these crimes force retailers to raise prices," Schoesler, R-Ritzville said. "The Legislature, the governor and the attorney general need to take action to greatly reduce retail crime in Washington."

From 2019 to 2020, the value of goods stolen from Washington stores more than doubled. The Washington Retail Association estimates organized crime groups stole $2.7 billion from retailers in 2021.

The Senate Labor, Commerce and Tribal Affairs Committee last week held a work session on retail crimes.

"The work session was a sign that organized retail crime is on the Legislature's radar screen, but we need to make it a high priority when the legislative session starts in January," said Schoesler.

A national report on the impact of organized retail crime showed that Washington retailers lost just over $2.7 billion worth of goods and products due to theft in 2021, and that the per capita amount of stolen items in the state is $376.61, which ranks Washington second in the nation, only behind Pennsylvania ($436.25).

According to the 2021 state crime report released by the Washington Association of Sheriffs and Police Chiefs, 23,323 shoplifting cases were reported last year. ifiberone.com

Red Flag Laws Can Prevent Mass Shootings
Extreme risk protection orders assist in preventing mass shooting events: study
Extreme risk protection orders, also known as red flag laws, can help prevent firearm injury events, including multiple victim/mass shootings, by addressing the threat prior to an event occurring, according to new research led by the University of Michigan.

A study by U-M's Institute for Firearm Injury Prevention, in collaboration with the Johns Hopkins Bloomberg School of Public Health, reviewed more than 6,500 ERPO cases. Researchers found that more than 10% of the petitions filed were in response to multiple victim or mass shooting threats intending to harm as many people as possible.

An ERPO is a civil court order that temporarily prohibits firearm purchase and possession by someone at imminent risk of harming themselves or others, and typically involves a two-stage process that includes a short-term (temporary) order (between seven days and a month, depending on the state) and a long-term order that in most states lasts up to one year.

Among the threat cases studied, the most common were against K-12 schools (20%) and businesses (20%), followed by intimate partners, their children and their families (15%).

The study also suggests that, though little is known about the epidemiology of mass shooting threats, this and similar studies provide an evidence base that ERPOs are being used to intervene and remove access to firearms when a mass shooting threat is identified. news.umich.edu

Be Aware
Hoax Active Shooter Calls Have Spiked Since Uvalde
An increase in fake active shooter reports after the mass shooting at Robb Elementary School in Uvalde, Texas in March has reawakened parents' anxieties and stoked fear among police. Since about a week or so from the start of the school year to early October, an NPR analysis noted 113 active shooter hoax calls around the country, William Melhado reports for Texas Tribune. The source of the false calls is unknown. Some came from outside of the country. thecrimereport.org

Crime center stage in Minnesota campaigns, but residents of high-crime neighborhoods want more contact
Some leaders in the areas hit hardest by violence say they wish candidates would spend more time engaging them and residents instead of using public safety as a flashpoint in campaign ads.

Police chief slams NY Gov. Hocul over bail reform after Buffalo murder

Stoked by Republicans, Fears of Crime Loom Large for Midterm Voters

Texas: Fighting Crime Takes Center Stage in Hays County DA Race

US: 99.5M Cases - 1M Dead - 97M Recovered
Worldwide: 636.9M Cases - 6.6M Dead - 616.3M Recovered

Private Industry Security Guard Deaths: 362   Law Enforcement Officer Deaths: 811

'Tripledemic' Could Hit Businesses Hard This Winter
Combined impact of flu and COVID-19 expected to continue to plague U.S. businesses this winter

U.S. likely to face severe and unpredictable respiratory virus season

Research designed for Reckitt by BlueDot suggests that the U.S. could expect a significant incidence of the flu and COVID-19 this winter. Coupled with new surges in other respiratory viruses, such as respiratory syncytial virus (RSV), this is likely to place a significant strain on the U.S. medical system.

The findings underscore the importance of hygiene as the foundation for health in all settings, including businesses. A host of precautionary measures can be put in place to help combat the severity of the impact of the flu and COVID-19, including avoiding close contact with people who are sick, covering coughs and sneezes, improving air filtration, cleaning and disinfecting of high-touch surfaces that are likely to be contaminated with viruses that cause flu, and practicing good hand hygiene.

"U.S. businesses are likely to be hit hard by the impact of a severe respiratory virus season, impacting worker productivity. Businesses play a key role in helping prevent the transmission of the viruses that cause flu and COVID-19," said Julie McKinney, Director of Research and Development at Reckitt's Lysol Pro Solutions. "It is relatively easy to catch a cold or the flu in a business environment. If an infected person enters a business environment, there is a risk they will infect those around them, such as co-workers or customers via airborne transmission and droplets, or that they will contaminate a surface that will then be touched by another person." prnewswire.com
 
Businesses Distancing Themselves from China Amid Lockdowns
China's Covid controls are pushing companies to diversify away from a 'start-stop economy'

A Covid outbreak at Apple supplier Foxconn's factory shows the continued challenges factories face in trying to maintain operations while preventing infections.

China's decision to maintain Covid controls is pushing companies to look to factories outside the country, according to The Economist Intelligence Unit.

"What we are hearing from companies [is] they are moving ahead with their supply chain diversification plans because this start-stop economy is here to stay," said Nick Marro, global trade leader at The Economist Intelligence Unit.

"If it's an on-off economy, if things can't get done, that impacts decision-making," he said. "We don't expect companies to leave China. We just expect them to diversify their footprint, China plus one."

Beijing's stringent Covid controls helped the country resume work while the rest of the world still struggled with the pandemic in 2020. While other countries have relaxed most restrictions and chosen to "live with Covid," Beijing has increased virus testing requirements and broad controls since Shanghai was locked down for two months earlier this year. cnbc.com

Massachusetts offering $75 gift cards for COVID-19 vaccines, boosters

Are the unvaccinated still a danger to the rest of us?

Another Former Member of eBay's Global Security Team Sentenced
The group orchestrated a three-part cyberstalking campaign against journalists

Former eBay Employee Sentenced for Aggressive Cyberstalking Campaign

BOSTON - A former intelligence analyst for eBay, Inc. was sentenced today for her role in a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company.

Veronica Zea, 28, of San Jose, Calif., a former eBay contractor who worked as an intelligence analyst in eBay's Global Intelligence Center (GIC), was sentenced by U.S. Senior District Court Judge William G. Young to two years' probation with her first year to be served in home confinement and a $5,000 fine. In October 2020, Zea pleaded guilty to conspiracy to commit cyberstalking and conspiracy to tamper with witnesses.

On Sept. 29, 2022, co-conspirator James Baugh, former senior director of safety and security, was sentenced to 57 months in prison, two years of supervised release and was ordered to pay a fine of $40,000.

Also on Sept. 29, 2022, co-conspirator David Harville, former Director of Global Resiliency, was sentenced to two years in prison, two years of supervised release and was ordered to pay a fine of $20,000.

Co-conspirators and former eBay employees Philip Cooke, Stephanie Popp, Stephanie Stockwell and Brian Gilbert previously pleaded guilty for their roles in the conspiracy to cyberstalk the victims.

Click here to read the full story, including the full list of ex-eBay Security executives involved, sentences & awaiting sentencing + previous coverage.

Dollar General Has Now Been Fined Over $12.7M Since 2017
Retailer is first one on the new Severe Violator Enforcement Program list.

OSHA Fines Dollar General $2.7M for Workplace Safety Problems
A month after federal regulators hit Dollar General stores with $1.6 million in fines for safety violations, the retailer now faces an additional $2.7 million in penalties for similar problems in Alabama, Florida and Georgia.

The U.S. Occupational Safety and Health Administration said this week that the latest infractions are part of a long-standing history of unsafe practices at the low-cost stores, which have repeatedly put workers in danger. Since 2017, the agency has issued more than $12 million in fines for workplace safety violations at Dollar General sites.

In the latest round, OSHA inspectors last spring and summer found 31 violations at Dollar General stores in Dothan, Clay and Odenville in Alabama; in Darien and West Point, Georgia; and in Panama City Beach, Florida.

"Dollar General has shown a pattern of alarmingly willful disregard for federal safety standards, choosing to place profits over their employees' safety and well-being," said Doug Parker, assistant secretary for occupational safety and health. "Neighborhood stores exist to support the needs of their communities - the same communities in which many Dollar General employees live - and that support must include following laws designed to keep workers safe from preventable injuries or worse."

Numerous inspections uncovering several hazards resulted in more than $4 million in fines in 2022.

The latest violations, similar to those found at Dollar General stores across the country, include:

● Failing to label, mount, or make fire extinguishers accessible.
● Storing boxes in front of electrical panels, increasing the risk of fire and electrical hazards.
● Failing to use exit signs to facilitate safe egress in the event of an emergency.
● Exposing workers to electrocution by not keeping unused openings in electrical cabinets closed.
● Not providing handrails on stairs where required.

According to OSHA, Dollar General Corp. and Dolgencorp LLC are now qualified for the Severe Violator Enforcement Program. insurancejournal.com  valleynewslive.com

Another Hurdle for Kroger-Albertsons Merger
WA judge pauses Albertsons $4B stockholder payout amid proposed merger
A King County, Wash. Superior Court judge granted a motion from the state's attorney general on Thursday to temporarily block Albertsons from giving stockholders a $4 billion payout. This comes as Albertsons and Kroger are in the middle of a $20 million merger deal.

Attorney General Bob Ferguson filed the nationwide temporary restraining order on Tuesday, Nov. 1. The attorney general said the lawsuit accuses Albertsons and Kroger of violating antitrust laws and the Consumer Protection Act.

Officials say the temporary restraining order will block the company from making the dividend payment as Ferguson's lawsuit is ongoing.

Ferguson noted that "according to Securities & Exchange Commission filings, this $4 billion dividend exceeds Albertsons' cash on hand. Albertsons revealed in a recent filing that it will pay for the dividend with $2.5 billion in cash on hand and borrow the rest."

Albertsons and Kroger make up a "vast majority" of grocery stores in the state - boasting 216 Safeway and Albertsons stores and 114 Kroger-owned Fred Meyer and QFC stores, according to the attorney general's office.

On Oct. 26, Ferguson joined a bipartisan group of six attorneys general in a letter urging Albertsons to delay the dividends pending state reviews of the proposed merger. The attorney general said the payout represents approximately one-third of the company's total stock value. koin.com

The FTC - DOJ & The Courts Are Listening

Public Pressure Builds Against Albertsons/Kroger Merger
Column: That big Albertsons-Kroger merger will enrich millionaire insiders at your expense
Albertsons says a controversial $4-billion merger dividend is part of its growth strategy. How is taking on debt to funnel money to insiders helping it grow?

It should be obvious by now that the driving force of many corporate mergers, if not most or even all mergers, is the goal of enriching insiders. The pending merger of supermarket giants Albertsons and Kroger, however, injects that impulse with steroids.

At the heart of the $20-billion deal announced Oct. 14 is a $4-billion dividend that was scheduled to be paid Monday to Albertsons stockholders until it was temporarily blocked by a Washington state court.

A state judge in Washington issued a temporary restraining order late Thursday blocking Monday's dividend payout, in response to a lawsuit by Washington state Atty. Gen. Bob Ferguson. The dividend also has been challenged in federal court by the attorneys general of California, Illinois and Washington, D.C.

The merger should be a prime target for antitrust officials at the Federal Trade Commission and Department of Justice. latimes.com

Editor's Note: The above is merely one of a number of objections. Not the least of which is the impact on consumers and employees. Our prediction is this will never happen during the Biden Administration. Just a thought -Gus Downing

Feds Looking For Those 'Cooking the Books'
SEC Accountant Warns of Heightened Fraud Risk Amid Recession Fears

Auditors need to do a better job uncovering accounting manipulation, regulator says

Wall Street's top watchdog is warning that the market selloff and fears of a recession could encourage more companies to cook their books, and it is pressuring auditors to catch them.

The warning comes as regulators increase their scrutiny of auditors. The audit regulator is getting tougher on rule-breaking accountants. Big fines for auditors are part of record monetary sanctions imposed by the SEC in the latest fiscal year. The SEC is concerned that auditors too often fail to respond adequately to red flags that point to possible financial chicanery. wsj.com

Holiday Sales Expected to Increase 6-8%
NRF Predicts Healthy Holiday Sales as Consumers Navigate Economic Headwinds
Holiday spending is expected to be healthy even with recent inflationary challenges, as the National Retail Federation today forecast that holiday retail sales during November and December will grow between 6% and 8% over 2021 to between $942.6 billion and $960.4 billion. Last year's holiday sales grew 13.5% over 2020 and totaled $889.3 billion, shattering previous records. Holiday retail sales have averaged an increase of 4.9% over the past 10 years, with pandemic spending in recent years accounting for considerable gains.

NRF expects that online and other non-store sales, which are included in the total, to increase between 10% and 12% to between $262.8 billion and $267.6 billion. This figure is up from $238.9 billion last year, which saw extraordinary growth in digital channels as consumers turned to online shopping to meet their holiday needs during the pandemic. While ecommerce will remain important, households are also expected to shift back to in-store shopping and a more traditional holiday shopping experience.  nrf.com

600K+ Retail Quits Per Month
Which industry has the most job quitters?

New research has revealed which industries are losing the most employees.

new study from document management tool SmallPDF analyzed data from the Bureau of Labor Statistics to determine which industries are seeing the most people quit their jobs. The study scores every industry's quit rates - the percentage of total employees quitting in an industry every month - and quit levels, which measures how many employees quit in total each month.

The retail trade industry trailed the accommodation and food services industry, including fast food workers, waiters and chefs, which took first place, seeing an average of 5.8% of its workforce leave between April and August 2022, when the study was carried out. More than 773,600 employees left every month on average during the study. August 2022 saw 128,000 more employees quit than the number who left their jobs in August 2021, indicating a massive change in staffing.

The retail trade industry, which includes jobs like cashiers, customer service representatives and stock clerks took second place, seeing an average of 600,400 employees quitting every month between April and August 2022 and an average quit rate of 3.82%. Roughly 109,000 fewer employees quit this August compared to August 2021 in the industry. drugstorenews.com

Walmart tops Kantar's annual U.S. PoweRanking report
Walmart was number one among retailers in Kantar's PoweRanking 2022 report. The retail giant has held the top spot every year since the report was first published in 1997, a testament to its strength, scale and focus, according to Kantar.

NRF Says Strong Consumer Fundamentals Counter Inflation and Interest Rates in Holiday Forecast

Apple has put hiring freezes in place for the next year


Quarterly Results

Funko Q3 DTC up 36.5%, net sales up 36.6%

Door Dash Q3 Marketplace GOV up 30%, revenue up 33%

Floor & Decor Holdings Q3 comp's up 11.6%, net sales up 25.2%

Under Armour Q3 N.A. revenue up 7%, revenue up 1.8%

Ikea Full Year retail sales up 6.5%, hitting EUR $44.6B - U.S. $43.491B

Shake Shack Q3 comp's up 6.3%, sales up 17.5%

Boot Barn Q2 comp's up 2.3%, e-commerce comp's down 7%, net sales up 12.4%

Papa John's Q3 comp's down 3.4%, total revenue 0.4%

Carvana Q3 units sold down 8%, revenue down 3%

Wayfair Q3 U.S. sales down 6%, net revenue down 9%, customer base shrinks by 1M
 

Senior LP & AP Jobs Market

Manager ORC Investigations job posted for Rite Aid in Seattle, WA
The primary purpose of this position is to identify and investigate all aspects of organized retail crime in the stores/geographic area assigned, and to assist in conducting special high-level investigations as needed. Develops strategies to reduce organized retail criminal activity. With a focus on investigating organized retail crime, this position helps to identify and develop appropriate reporting methods and mechanisms to maximize efficiencies and best practices within the area of responsibility and across the asset protection organization. careers.riteaid.com

Security Director job posted for Olympic Club in San Francisco, CA
The Olympic Club, a private member athletic and country club in San Francisco, seeks a Security Director. At The Olympic Club, our members enjoy 2 campuses, 19 sports, world-renowned golf courses, exceptional social and athletic programs as well as 18 hotel rooms and 5 Food & Beverage outlets. Our City Clubhouse is located one block from Union Square and within easy walking distance of the Powell Street BART station. Our Lakeside Clubhouse sits next to the ocean on the border of San Francisco and Daly City. indeed.com

Sr Manager, Asset Protection - Ecommerce/Supply Chain job posted for Disney Parks, Experiences and Products in Orlando, FL
Manage and administer processes to protect company assets, people and brand. Ensure a strong operational focus on workplace and physical security initiatives, intellectual property abuse, profit protection and investigations. Position reports into the CPGP Executive Director, Global Asset Protection and Safety. jobs.disneycareers.com
 

Retail Cyber Threats Continue to Surge
Retailers Take Notice: Automated Threats Caused 62% of Security Incidents in the Past 12 Months
A range of automated threats -- from account takeover, credit card fraud, web scraping, API abuses, Grinch bots, and distributed denial of service (DDoS) attacks -- were a persistent challenge for the eCommerce industry, threatening online sales and customer satisfaction. The continued barrage of attacks on retailers' websites, applications, and APIs throughout the calendar year, and during the peak holiday shopping season, is a continued business risk for the retail industry.

An Automated Adversary: Bad Bots & Online Fraud Plague Retail Sites

In the past 12 months, nearly 40% of traffic on retailers' websites didn't come from a human. Instead, it came from a bot, software applications controlled by operators that run automated tasks, often with malicious intent. In the retail industry, the infamous Grinch bot is notorious for inventory hoarding during the holiday shopping season, scooping up high-demand items and making it challenging for consumers to purchase gifts online.

API Abuses and Attacks Multiply, Creating New Challenges for Retailers

APIs are the invisible connective tissue that enable applications to share data and invoke digital services. Exposed or vulnerable APIs are a considerable threat for retailers because attackers can use the API as a pathway for exfiltrating customer data and payment information. API abuses are often carried out through automated attacks where a botnet floods the API with unwanted traffic, seeking vulnerable applications and unprotected data. In 2021, API attacks increased by 35% between September and October, and then spiked another 22% in November on top of the previous months' elevated attack levels. This finding suggests that bad actors scale their efforts around the holiday shopping season as more data is exchanged between the APIs and applications that power eCommerce services.

Beware of Downtime: DDoS Attacks Continue to Threaten Retailers

A DDoS attack is a nonstop threat for retailers. The downtime caused by a DDoS attack can lead to site disruption, reputational damage, and revenue loss. A DDoS is a critical threat to online retailers that rely on application performance and availability to enable digital storefronts. businesswire.com

Balancing Cybersecurity & Convenience
Ditching Passwords Could Unlock a $59 Billion Biometrics Market
Consumers prefer a user experience that is both convenient and secure, even though 68% said they would choose security over convenience. A consistent authentication experience across multiple platforms also creates trust. As businesses look to create more secure and convenient authentication experiences, advanced identity authentication through technology such as biometrics could help meet security and convenience expectations.

Consumers already understand the shortcomings of password authentication, and that is feeding demand for better authentication solutions. Being able to log in without a password was rated just as highly by almost half of respondents as having more detailed information about transaction security, and 61% expressed interest in password alternatives, a share that jumps to 68% among mobile app users.

Around the Digital Identity Space

A 7% year-over-year rise in cyberattacks has prompted many businesses to boost their security measures. Seventy-nine percent of surveyed United States businesses are using biometric authentication to prevent fraud and improve security for their customers, triple the share that said the same in 2019. Two-factor authentication still leads to more advanced authentication methods and is employed by 91% of respondents, but recent compromises and successful takeovers of accounts secured with two-factor authentication have highlighted the need for more advanced options.

Many of the most popular password choices demonstrate the vulnerabilities introduced when users have to keep track of multiple credentials. An analysis of the most common passwords used for online accounts showed that 45% contained just letters, and 2% even contained the word "password."

Finding the Utility in Authentication Friction

Recent developments, such as the widespread adoption of passkeys by tech giants Microsoft, Google and Apple, have generated excitement about the move away from passwords, but fraud and identity threat industry expert Lenny Gusel warns that this will have little impact on payments without targeted authentication friction at the payment point.  pymnts.com

Recovering from a Cyberattack
Cybersecurity recovery is a process that starts long before a cyberattack occurs

The four core components of an effective cybersecurity recovery program

1. Pre-emptive action - A good cybersecurity recovery plan is one which is never needed. Recovery begins before disaster strikes, in the pre-disruption phase. The organization's security operations center should have the ability to detect any infiltration quickly and activate the disaster recovery process (which involves the major incident management team) before the impact of the attack is felt.

2. Responsibilities and accountability - People need to know their role in the event of a cyber-security incident and how they should respond to the event. That means giving them instant access to all the data they need to make quick decisions and to communicate effectively with the rest of the business.

3. Having the right IT architecture, security and recovery process in place - Organizations with the right IT architecture, recovery time and point objectives, and security policies are at a considerable advantage when it comes to the recovery process.

4. Learning lessons and implementing changes - After any cybersecurity incident, organizations need to analyze what they've learned from the experience. This is a process that must be done openly, honestly, and without blame.

Recovery is a process that starts long before a cyberattack occurs. It concludes not when the data is secured, but when the organization can say that it's learned everything it can from the event and has made the changes necessary to avoid it happening again. helpnetsecurity.com

Cyber Insurance Lawsuit Settlement
Oreo Giant Mondelez Settles NotPetya 'Act of War' Insurance Suit

The settlement muddies the waters even further for the viability of war exclusion clauses when it comes to cyber insurance.

Mondelez International, maker of Oreos and Ritz Crackers, has settled a lawsuit against its cyber insurer after the provider refused to cover a multimillion-dollar clean-up bill stemming from the sprawling NotPetya ransomware attack in 2017.

The snack giant originally brought the suit against Zurich American Insurance back in 2018, after NotPetya had completed its global cyber-ransacking of major multinational corporations, and the case has since been tied up in court. Terms of the deal have not been disclosed, but a "settlement" would indicate a compromise resolution - illustrating just how thorny an issue cyber-insurance exclusion clauses can be.

NotPetya: Act of War?

The lawsuit hinged on the contract terms in the cyber insurance policy - specifically, an exclusion carve-out for damages caused by acts of war.

NotPetya, which the US government in 2018 dubbed the "most destructive and costliest cyberattack in history," started out as compromising Ukrainian targets before spreading globally, ultimately impacting companies in 65 countries and costing billions in damage. It spread rapidly thanks to the use of the EternalBlue worming exploit in the attack chain, which is a leaked NSA weapon that allows malware to self-propagate from system to system using Microsoft SMB file shares. Notable victims of the attack included FedEx, shipping behemoth Maersk, and pharmaceutical giant Merck, among many others. darkreading.com

Businesses want technologies that allow for passwordless workflows

Supply Chain Attack Pushes Out Malware to More than 250 Media Websites

Shoplifting Ring Busted by Jackson Police; Group was targeting Jackson Outlets responsible for $60,000 of stolen items
Jackson Police Department reports that over the course of the past two months, the Jackson Premium Outlets has been a target for professional shoplifting rings. Identifying this problem, the agency set up daily proactive details consisting of plain clothes patrol officers and members of the SEU to be at the outlets in attempt to both prevent and apprehend these subjects.

Due to efforts by multiple jurisdictions, and our detective bureau along with the help of Loss Prevention specialists, an out of state professional shoplifting group was identified. This ring out of Baltimore, Maryland was reportedly responsible for numerous acts of shoplifting in several surrounding states. The group had been responsible for almost $60,000.00 in stolen items from Jackson Premium Outlets alone.

On October 29th, Police Officer Scheuerman and Police Officer Collins were assigned to this detail with the information received that the suspects may be in our area on this date. During the course of the detail, the suspect vehicle was positively identified by officers. The vehicle was occupied with (4) people at the time. Officers contacted the SEU and advised them of their observations. Detectives Purtell, and Thomason of the SEU, along with Police Officer Cocchiara promptly responded to the outlets. Upon exiting the Under Armour store officers confronted members of the ring, who promptly tried to evade officers by either running away or physically trying to resist officer's efforts.

All four suspects were successfully apprehended by officers and transported the police department for processing. The vehicle they were operating was towed from the scene and transported to headquarters where SEU would be making application for a search warrant for said vehicle. Anthony Jones, D'Arnajai Raheem, Shontaz Wingate and Veronica Motes were all charged with the following: ● Organized Retail Theft Enterprise Shoplifting ● Shoplifting ● Obstruction ● Hindering Apprehension In addition Veronica Motes was also charged with Robbery. All four subjects were subsequently lodged at Ocean County Jail in lieu of their charges. midjersey.news

Tigard, OR: 13 arrested in Washington Sqaure Mall shoplifting blitz, $8,000 in merch recovered
Over $8000 in stolen merchandise, 80 blue M30 pills (likely containing fentanyl), evidence of identity theft, and more was recovered in a successful shoplifting blitz that resulted in 13 arrests. The effort was held at stores in the Washington Square Mall area Wednesday, coordinated in a joint operation between police and loss prevention employees. In the blitz, the team watched for people who were shoplifting or engaging in other criminal activity in real-time, then worked together to make arrests. The goal of these operations is to show criminals that police will take proactive steps to stop them. In Wednesday's blitz, officers recovered: at least $8,000 in merchandise, 80 blue M30 pills which likely contain fentanyl, burglary tools, evidence of identity theft and a replica handgun. katu.com

Pleasant Hill, CA: 3 arrested after grab-and-run leads to $7K in merchandise
Over $7,000 in merchandise was recovered in the Target shopping center parking lot last night by Pleasant Hill police after a grab-and-run theft, police stated. Two officers were in the parking lot already because of a large number of grab-and-run thefts when they saw one in progress. "After a brief foot pursuit and a bold escape attempt, two females and one male subject from San Jose were arrested with over $7,200 of stolen property from Burlington in their car and in tow as they were running from the store," Pleasant Hill police stated. "All three subjects were booked at Martinez Detention Facility for warrants and theft-related charges. Great catch!" kron4.com

Fond du Lac, WI: Arrest Made And Guns Recovered From Fleet Farm Burglary
The Fond du Lac Police Department has announced it has made an arrest in the Fleet Farm burglary from Friday October 28th where guns and ammunition were stolen during a break-in after the store had closed. On Wednesday, November 2, 2022 at approximately 12:15 PM, City of Fond du Lac Police Department Police Officers and Detectives conducted a traffic stop in the area of N. Hickory Street and W. Johnson Street. Officers and Detectives took a 29-year-old Fond du Lac resident into custody without incident. Police and Detectives then executed a search warrant in the 400 block of Ann Street where all five stolen firearms and ammunition were recovered. The suspect was arrested on charges of burglary, felon in possession of firearm, criminal damage to property, and the suspect also had a nationwide warrant out of Oklahoma. He is currently being held at the Fond du Lac County Jail. kfiz.com

Bettendorf, IA: Suspect left Home Depot with cart of tools she didn't purchase
A 40-year-old Rock Island woman faces a felony charge after police allege, she walked out of The Home Depot, Bettendorf, with a shopping cart of tools she didn't purchase. Brianna Sand faces a charge of second-degree theft, court records say. According to arrest affidavits, police allege Sand loaded a shopping cart full of various hand tools and power tools worth $1,844.72 shortly after 5:30 p.m. Wednesday at The Home Depot, 920 Middle Road, Bettendorf. ourquadcities.com

Madrid, Spain: Wine Theft at Michelin-Starred Restaurant in Madrid Results in Nearly $200,000 Loss
One recent theft in Spain - involving well over 100 bottles of high-quality vino - marked quite a hefty loss for one Michelin-starred establishment. Coque, a Madrid-based restaurant with an extensive underground wine cellar, reported the burglary earlier this week. A rare selection of 132 bottles were taken from the restaurant's total inventory of 3,000 bottles, according to El País. vinepair.com

DOJ: New Orleans Man Admits to Using Stolen Identity at Local Stores
COREY THOMAS, age 49, from New Orleans, pled guilty to wire fraud, stemming from fraudulent charges he made in Best Buy and several Lowe's Home Improvement stores in New Orleans and the surrounding parishes. THOMAS agreed to repay a total of $77,781.98 to Synchrony Bank, which issued the Lowe's credit cards that THOMAS used in his scheme. Sentencing Feb. 15,2023. justice.gov

DOJ: Former Home Depot Employee Pleads Guilty In Credit Card Fraud Scheme
Kimyada Latoya Knight (41, Jacksonville) has pleaded guilty to credit card fraud. Knight faces a maximum penalty of 15 years in federal prison and payment of restitution to Home Depot.

Knight worked in a specialized area of Home Depot (HD) business operations that primarily handled business and customer credit card accounts. Her area of responsibility included resolving charge disputes and requests for refunds from customers with credit card accounts and other accounts at HD. An initial review by HD, with follow up investigation by the United States Secret Service, determined that Knight had initiated a large number of fraudulent customer and business refunds between approximately January and August 2019 involving credit card accounts and other accounts at HD. After processing the fraudulent transactions, Knight then transferred the payments to accounts that she controlled and subsequently used the proceeds. justice.gov

Laredo, TX: Woman stole $1,000 in wine bottles from H-E-B

Coral Springs, FL: Miami Man Arrested for Fraud Allegedly Part of Organized Gas Theft Ring Targeting 7-Eleven in Coral Springs