NRF's 'Retail Gets Real' episode 325:
Retail leaders rally to fight retail crime

Retail Gets Real episode 325: NRF's David Johnston on the problem of organized retail crime and how retailers are advocating for action

In October, NRF brought together representatives from more than 30 retail brands for a day of advocacy and action on Capitol Hill to raise awareness and fight back against organized retail crime.

The Fight Retail Crime Day fly-in was a huge success, with 70 retail attendees participating in 65 meetings with congressional offices on that one day, according to David Johnston, NRF's vice president of asset protection and retail operations.

"For most asset protection leaders, including myself, we've never participated in a visit to Congress, so we had no idea what to expect when we got to Capitol Hill," Johnston says on this episode of Retail Gets Real. "I think our initial goal was to get probably about 20 asset protection leaders, because this is not something that they normally talk about in public venues ... and the results really far exceeded our expectation."

Johnston and the retailers were on the Hill to push for passage of the Combating Organized Retail Crime Act, a bipartisan bill introduced in both the House and Senate last year.

In addition to the fly-in, NRF sent a letter to Congress signed by 73 retail companies, along with 6,300 messages from retail advocates and employees showing their support and asking members of Congress to pass the bill. "It far exceeded our initial expectations," Johnston says. "It was a great experience, and we know it's going to do good in our continued fight against organized retail crime."

Listen to the full episode to learn more about Fight Retail Crime Day, how organized retail crime is impacting retailers, and how retailers are advocating for action around this issue. Then, visit nrf.com/takeaction to learn more about how you can get involved and make a difference. nrf.com


New ORCA Holds First Meeting Ahead of Holidays
HSI Jackson holds first state Organized Retail Crime Alliance meeting
JACKSON, Miss. - In advance of the holiday shopping season, Homeland Security Investigations (HSI) Jackson, Mississippi, and the newly formed Louisiana, Arkansas, Mississippi, and Alabama Organized Retail Crime Alliance (ORCA), held its first strategic planning meeting for the state of Mississippi on Nov. 14. Their efforts are designed to combat organized theft groups by targeting domestic and transnational criminal organizations that profit from organized retail crime (ORC).

The four-state Organized Retail Crime Alliance connects federal, state and local law enforcement and prosecutors, as well as financial and retail industry partners, from all four states. The ORCA initiative is part of a larger nationwide strategic partnership for HSI to identify, investigate and prosecute organized retail crime.

Attendees included representatives from the U.S. Attorney's Office in Southern and Northern District, the Mississippi Bureau of Narcotics, the Madison Police Department, the Office of the Governor of Mississippi, Starkville Police Department, Hattiesburg Police Department, Jackson Capitol Police, Vicksburg Police Department and Flowood Police Department. Mississippi retail partners included representatives from Target, Wal-Mart, Home Depot, Bass Pro Shop, Rouses and Academy Sports.

"By partnering with local, state, and federal law enforcement agencies and other retail industry partners, we significantly amplify our ability to not only share intelligence and resources, but locate and investigate organized retail crime, which costs federal and state governments nearly $15 billion in lost tax revenue," said Chris Schkade, LAMA ORCA chairman. "During this inaugural state meeting, we had two retailers realize they were dealing with the same repeat criminal theft operator which is a testament to how we can combat violent retail crime when we work together."

In fiscal year (FY) 2021, HSI initiated 59 ORC investigations, representing a 211 percent increase from 19 investigations initiated in FY 2020, and accounting for 61 criminal arrests, 55 indictments, 59 cases initiated, and $9,287,757 in assets seized. Organized Retail Theft has been responsible for nearly $70 billion in retail merchandise being stolen from businesses in 2019; ORC results in $125.7 billion in lost economic activity; E-Commerce platforms are repeatedly being utilized to re-sell stolen merchandise. ice.gov


Florida cracks down on organized retail theft
AG Moody's Office of Statewide Prosecution Secures Eight-Year Sentence and $500,000 Restitution Order for ORT Ringleader
Florida continues to crack down on retail theft. Attorney General Ashley Moody's Office of Statewide Prosecution has secured another sentence and restitution order for another leader of an organized retail theft ring in 15 counties.

Just a few weeks ago, Moody announced the results of a recent racketeering investigation into another major operation targeting retail theft, which involved millions in stolen items and murder.

Moody on Wednesday announced an eight-year prison sentence for Byron Johnson, followed by five years' probation, and pay $539,360 in restitution, who operated a theft ring in 15 counties that caused hundreds of thousands of dollars in losses to Home Depot stores.

"In Florida, we are fighting back against organized retail theft," Moody says. "We will not allow this crime, occurring rampantly in other parts of our country, to wreak havoc on our consumers and businesses."

Four other defendants were charged with grand theft of varying amounts, ranging from first to third-degree felonies. These cases are still pending, according to the AG's OSP.

Since 2019, the Office of Statewide Prosecution has secured an overall conviction rate of 99%. It's tasked with prosecuting crimes that impact two or more judicial circuits in

Most OSP charges resulted from multi-jurisdictional investigations. One includes a retail theft scam targeting multiple Walmart stores in Polk County. Of those involved, one is currently serving time in prison. Another is under the supervision of the Florida Department of Corrections. Arrest warrants are currently out for two alleged members. One is deceased.

Another involves a retail theft scam operating in South Florida in at least nine judicial circuits. This scam caused over $20 million in losses to more than 20 different retailers. thecentersquare.com myfloridalegal.com


The Heart of ORC Operations: Fencers
The Fencers: The Lynchpin of Organized Retail Crime Enterprise
Criminal fencers-individuals who knowingly buy stolen merchandise to resell for profit-are often the lynchpin of an Organized Retail Crime (ORC) enterprise's strength and longevity. The lifespan of an ORC enterprise is dependent upon a fencer's ability to recruit boosters-individuals who shoplift items-direct stealing operations, and turn stolen goods into a profit. Fencing operations and booster recruitment have magnified the ORC issue in recent years, with ORC contributing to more than $68 billion lost from stolen goods.

We provide this overview on fencers-particularly before the holiday season-to inform consumers and retailers of how to identify potential interactions with fencers online and protect themselves from the growing issue of ORC.

What is "Fencing?"

Criminal fencers are individuals who knowingly buy stolen merchandise to resell for profit. The success and endurance of ORC relies on the fencer's ability to sell stolen merchandise to consumers who are either unwitting or apathetic to the product's origin and acquisition. A review of court cases showed fencers are often the top individuals in smaller or less complex enterprises, while larger enterprises may involve senior individuals who help divert and "clean" stolen goods before resale.

Individuals who acted as fencers in ORC enterprises represent a wide range of demographics. In our review of ORC-associated criminal cases, fencers consisted of both male and female individuals who were generally in their thirties or forties. Race, countries of origin, regional location, profession, and other traits were widely represented.

Many fencers in ORC enterprises consist of teams of family members, including combinations of spouses, siblings, adult children, and parents. The use of familial relationships centralizes trust and eases overall coordination. It also simplifies the use of family residences or businesses for storing and shipping stolen goods.

To obtain the complete research report, including endnotes, please click here.  securityboulevard.com

Washington - #1 Retail Crime State?
The Impact Of Retail Theft On Small Businesses And States
Forbes Advisor delved into retail theft statistics to find out what states are being most affected by retail theft overall. We also surveyed American small business owners with brick-and-mortar stores that employ up to 50 employees to find out how retail theft is affecting small businesses.

Our survey reveals that the vast majority of small business retailers nationwide have experienced theft at their stores (90%) and 83% said they believe retail theft is at least a somewhat major issue.

Key Takeaways

• Washington ranks as the state the most impacted by retail crime, and Wyoming is the state the least impacted.

• The state with the highest average total value of stolen goods per capita is Pennsylvania, where the total value of stolen goods is $430 per capita.

• 85% of small business retailers said they experience theft at least once a year, and just 5% of small business retailers report never experiencing theft.

• The majority of small business retailers with a brick-and-mortar shop (52%) said the frequency of theft in 2023 increased or stayed the same compared to previous years.

• Three of the five states that are the least impacted by retail crime are located in the South, namely Mississippi, Georgia and Alabama.

• The majority of small business retailers (79%) said their monthly losses from theft were between $500 and $2,500, and 10% said theft losses accounted for more than $2,500.

• The majority of small business retailers (56%) anticipate that their business will be affected by theft during the upcoming holiday season.

• To make up for losses due to theft, most retail small business owners have increased prices (64%) and/or installed security cameras (50%).

• Retail small business owners were most likely to experience customer theft a few times a week (21%). forbes.com


Target crime-plagued store closures will erase hundreds of Bay Area jobs

Big-box retailer is closing three Bay Area stores in wake of crime wave

Target's decision to close three crime-plagued stores will erase hundreds of jobs in the Bay Area, state filings show.

The big-box retailer has decided to permanently shut down three Bay Area stores, located in Oakland, Pittsburg and San Francisco in the wave of thefts and crimes that afflicted the trio of retail sites.

That move also has erased 238 Bay Area jobs as a result of the permanent shutdowns, with dozens of layoffs at each of the three store sites.

"Our team continues to face an unacceptable amount of retail theft and organized retail crime," Brian Cornell, Target's chief executive officer, said in a conference call with Wall Street analysts in August.

Within a month of that conference call, Target disclosed it would close nine stores in four states, including three in the Bay Area. mercurynews.com


PA Senate Passes ORC Bill SB596 "Fighting Back Against Organized Retail Theft"
PA SB596 Voting 46 Yeas - 4 Nays
In order to fight back against these criminals who are robbing Pennsylvanians of their livelihoods, I am introducing legislation to establish a Deputy Attorney General within the Attorney General's Office whose job it will be to oversee a team of prosecutors who will be geographically placed throughout Pennsylvania to prosecute retail theft.

This legislation will also lower the current monetary thresholds for retail thefts in regards to felonies committed in the second and third degrees.

Similar legislation has been championed in Delaware, Michigan, and Illinois. SB596 Text


Yellow Flag Law's Use Increases After Lewiston
Maine Police Used Yellow Flag Law 14 Times Since Mass Shooting
In three cases of Maine police invoking the state's yellow flag law to take away someone's access to weapons since Oct. 25, the name of the Lewiston gunman was used by the subject.

The law - which has come under scrutiny because it was not used to remove guns from Robert Card before he killed 18 people in Lewiston - has now been used a total of 95 times since it went into effect in 2020. The flurry of incidents since the shootings means about 15% of all yellow flag actions occurred in the past two weeks.

Police agencies can use the law to take away weapons from people who have mental health crises and present a danger to themselves or others. It requires a mental health evaluation and the approval of a judge. officer.com

   What Are the 18 Behavioral Red Flags of Potential Violence?


NYPD Down 3,000 Uniformed Cops - Now What?
NYPD freeze on new recruits among looming NYC budget cuts as migrant crisis worsens: sources
The cancelled NYPD class comes as the Adams administration has been tasked with doing more with less after crime jumped 30% during his first year in office. nypost.com


Retail theft cost DC residents $336 per person in 2021: Survey

Close Call?
Video: Man Making Bomb Threats Crashes into Mall, Fights with Colo. Police
Pueblo police responding to an active shooter call confronted a man in a vehicle who drove into the Pueblo Mall before struggling with officers and claiming his vehicle was filled with bombs. Pueblo Police were called to the mall on a report of shots fired just after 2 p.m.

A man is in custody after driving his vehicle into the Pueblo Mall on Tuesday.

Pueblo police say that they received an active shooter call from the mall on Dillion Drive at 2 p.m. Officers responding made contact with a man in a vehicle, attempting a stop. The man evaded officers, driving across the mall parking lot and through the west side entrance doors, according to the Pueblo Police Department.

The man was then taken into custody after a "protracted struggle" according to the PPD Facebook page. Police say the suspect said that there were bombs in the vehicle. The Pueblo Metro Bomb Squad responded to assess the scene.

The PPD said around 8 p.m. that the the bomb squad had found the mall was safe and no further threat existed.

A spokesperson for the Pueblo Mall said Tuesday in a statement to the Chieftain that the mall's security team "followed protocol" and was "grateful for the quick action by the Pueblo Police Department." chieftain.com officer.com


Thousands of employees at hundreds of sites will mount one-day work stoppages on Thursday
See the list of Starbucks' 14 Bay Area shops that will strike on Red Cup Day. Here's when that is
Unionized Starbucks baristas plan to hold their biggest strike yet this week, accusing the coffee giant of refusing to fairly negotiate at cafes that voted to organize.

Thousands of employees at hundreds of sites will mount one-day work stoppages on Thursday, according to the union Starbucks Workers United.

The strike is pegged to the company's Red Cup Day, a popular promotional event when Starbucks gives out holiday-themed reusable cups. The union says Starbucks has illegally refused to negotiate in good faith over issues including staffing and scheduling that are particularly onerous during such promotions.

Workers United has prevailed in elections at more than 350 of Starbucks' roughly 9,000 corporate-run US stores. mercurynews.com


At REI, a Progressive Company Warns That Unionization Is Bad for Vibes
Employees at the member-owned co-op have voted to unionize at several locations-and they've also accused the company of trying to stop them from organizing.

Employees at eight of REI's roughly 180 US stores, starting with the Manhattan one, have voted to unionize over the past two years with the RWDSU or other chapters of the United Food & Commercial Workers, seeking a say in issues such as safety, scheduling and benefits. But-like their newly unionized counterparts at Amazon.com, Apple and Starbucks-none has gotten close to negotiating an actual union contract with the company. On Nov. 14, the UFCW filed cases with the US National Labor Relations Board, accusing REI of refusing to negotiate fairly at stores across the country. It's the latest volley in an escalating dispute in which each side accuses the other of violating the humane values that are core to the retailer's brand. bloomberg.com


APEC in San Francisco: Protests, security bring downtown traffic to standstill, disrupt public transit

Traffic on Market Street is still not moving as protesters cluster at 5th and Market trying to keep people from entering the international conference's CEO summit.

It is a big day for protests against the conference - around the city and particularly in SoMA, as protesters trying to block attendees from entering APEC's 's CEO summit.

Protesters had cleared out of the Market Street area and transit on the corridor had fully resumed as of 12:45 p.m., transit officials said, but cautioned that it was "entirely possible" more disruptions would occur throughout the afternoon. Muni buses and trains filled were with dispersing crowds carrying their protest paraphernalia.

NBC reporter Robert Handa captured on camera a fight breaking out between groups supporting and opposed to China's policies. sfchronicle.com


Retail 'PoweRankings'
Walmart takes top retailer spot in Kantar PoweRanking
Walmart claimed the No. 1 spot among retailers in Kantar's U.S. 2023 PoweRanking report. The retailer has held the top spot every year since the report was first published in 1997. PepsiCo, Coca-Cola, P&G, Nestle and General Mills ranked as the top five suppliers for 2023.

The PoweRanking report is an industry benchmarking report that identifies best-in-class retailers and manufacturers as ranked by their trading partners.

Below are top eight retailers in the 2023 Kantar rankings:

1. Walmart
2. Kroger
3. Target
4. Costco
5. Amazon
7. Publix
8. Meijer chainstoreage.com


Longtime Security Industry Contributor Honored with Top TMA Award
Nov. 15, 2023, McLean, Va. - The Monitoring Association (TMA) had the distinct opportunity to recognize the exceptional contributions of Larry Dischert, JCI, on Mon., Nov. 6th during its General Business Meeting at the 2023 Annual Meeting in Maui, HI. TMA President Morgan Hertel presented the respected and esteemed volunteer with TMA's highest honor, the Stanley C. Lott Memorial Award.

Click here to read more


McKinsey & Company
Holiday shopping in 2023: 'It started early and will end late'
In search of the best deals, US consumers are spreading out their spending across several months this holiday season. Here's what that means for retailers. mckinsey.com


Consumer Spending Expected to Reach $130B on Thanksgiving Weekend 2023


Quarterly Results

Loblaws Q3 food store comp's up 4.5%, drug retail comp's up 4.6%, ecommerce up 13.6%, sales up 5%

Home Depot Q3 U.S. comp's down 3.5%, sales down 3%

Target Q3 store comp's down 4.6%, digital down 6%, comp sales down 4.9%

Andy Greenberg, Senior Writer for WIRED, to Keynote the 2024 Retail & Hospitality ISAC Cyber Intelligence Summit

Andy Greenberg is a renowned investigative journalist and book author with a focus on technology, security, and cyber warfare.

Vienna, VA (November 15, 2023) - The Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC) today announced that Andy Greenberg, senior writer for WIRED, will be a keynote speaker for the 2024 RH-ISAC Cyber Intelligence Summit. The event, scheduled for April 9 -11 in Denver, will bring together industry leaders, cybersecurity experts, and professionals to discuss the latest trends, challenges, and solutions in the rapidly evolving landscape of cyber threats within the retail and hospitality sectors.

Read full press release here
 

When & What to Report to the SEC
Let's not forget Uber

SEC Accountants Highlight This Year's Compliance Struggles

Risk management, auditor independence, and non-GAAP reporting - Companies Asking for Help

At the Financial Executives International's Corporate Financial Reporting Conference on Monday, held virtually, OCA and the SEC division of corporate finance staff raised the themes they see heading into regulatory reporting season this year.

One is risk assessment. Anita Doutt, senior associate chief accountant at the OCA, said the OCA has heard troubling feedback about management being "too narrowly focused" on matters directly affecting financial reporting and missing or disregarding broader, entity-level issues that could indirectly impact financial reporting. A data breach or a regulatory finding would be an example.

"Management may be inadvertently biased towards evaluating each incident in isolation or rationalizing away disconfirming evidence and basically can conclude that these matters don't individually or in the aggregate rise to the level of a disclosure," Doutt said.

When management has such a narrow focus, it can result in material risks to the business, Doutt added. The company may not have appropriate controls around the identified risks or are undisclosed. cfo.com


FBI takes down IPStorm malware botnet as hacker behind it pleads guilty
The FBI dismantled the IPStorm botnet proxy network and its infrastructure this week following a September plea deal with the hacker behind the operation.

The Justice Department said it took down the infrastructure associated with the IPStorm malware - which experts said infected thousands of Linux, Mac, and Android devices across Asia, Europe, North America and South America.

The botnet was first sighted by researchers in June 2019, primarily targeting Windows systems, and stood out to experts because it used the InterPlanetary File System (IPFS) peer-to-peer protocol to communicate with infected systems and relay commands. Cisco warned last year that IFPS was being exploited widely by hackers.

By 2020, several security companies discovered that the malware had expanded to versions that infected other devices and platforms. Cybersecurity journalist Catalin Cimpanu reported that the botnet grew from around 3,000 infected systems in May 2019 to more than 13,500 devices by 2020.

On Tuesday, the U.S. Justice Department said Sergei Makinin, a Russian and Moldovan national, pled guilty on September 18 to three hacking charges that each carry a maximum sentence of ten years in prison.

According to the DOJ, Makinin developed and deployed the malware from June 2019 to December 2022, using it to hack thousands of internet-connected devices around the world. therecord.media


AI Turning Workplaces into the 'Wild West'
AI in Workplace Is Like the Wild West: Untamed

Employees are using it, likely without your knowledge

It's the Wild West when it comes to using generative artificial intelligence (GenAI) tools-such as ChatGPT-in the workplace, with many workers using these resources without their managers' knowledge, according to recent surveys. As with any tool, transparency and training are key to proper usage.

However, a survey earlier this year from San Francisco-based corporate social networking platform Fishbowl found that only one-third (32 percent) of respondents who use AI at work do so with their boss's knowledge. The 5,067 respondents included workers at Amazon, Bank of America, IBM, JP Morgan and Nike.

Snaplogic, a San Mateo, Calif.-based company that enables automation for enterprise companies, reported similar findings. Its September survey with 904 midlevel office workers in Australia, the U.K. and the U.S. discovered 40 percent of respondents use these tools without disclosing their usage to colleagues or their employer-but are not necessarily abusing the tools.

More than two-thirds (67 percent) think AI saves them one to five hours of work per week. And while there's the perception GenAI is used primarily to crunch numbers, Snaplogic found the predominant use is research-sometimes because the employee is too embarrassed to ask a human for help. Nearly one-fourth (22 percent) said they would covertly use GenAI because they didn't know how to perform a task or have the answer to something. Nearly one-fourth (22 percent) also said they would not use AI if they had to disclose their use.

But transparency works both ways. Employees want their employer to be open about how AI could directly improve their workflow-something cited by 78 percent of respondents to a survey conducted by thought leadership and research agency Workplace Intelligence in partnership with UKG.  shrm.org


National Cybersecurity Center of Excellence

Just Released! Draft NIST IR 8496, Data Classification Concepts and Considerations for Improving Data Protection

The NIST National Cybersecurity Center of Excellence (NCCoE) has released for public comment Draft NIST Internal Report (NIST IR) 8496, Data Classification Concepts and Considerations for Improving Data Protection. The comment period is open now through January 9, 2024. 

View the Publication

 
Rackspace Ransomware Costs Soar to Nearly $12M

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