Rising Violence Concerns & Retail Security Budgets
The 2022 Security Benchmark Report - Security Magazine

The 2022 Security Benchmark Report includes comparisons of security functions, sector reports, top critical issues and achievements.

Security leaders across all market sectors fill out The Security Benchmark Report - an in-depth survey which collects data on programs, initiatives, security budgets, responsibilities, technology deployments, security-related training, employees and more - to gain real-world insight into what other security programs are doing.

Workplace Violence & Business Continuity are Top Concerns

The Security Benchmark Report respondents were asked about their top issues / concerns in 2022 and 2023 in regards to risk mitigation and enterprise security. The top 10 answers appear here in order. Honorable mentions include Theft, Security budget, and Natural disasters.

2022 Security Benchmark Report - Retail & Restaurant Sector

Among The Security Benchmark Report respondents choosing Retail & Restaurant as their primary sector, 1.8% was the average security budget as a percent of revenue. The Security Benchmark Report respondents in the Retail & Restaurant sector reported an average of $190,000 in security-related spending last year.

The majority of respondents in this sector reported an increase over last year with an average security budget increase of 8%. Zero respondents in this sector reported a decrease in the security budget compared to last year.

Within the Retail & Restaurant sector, 25% of security teams reported to Operations, while another 25% reported to CRO / Risk / Legal / General Counsel. Within the Retail & Restaurant sector, 75% of Security Benchmark Report respondents reported having a security operations center (SOC) or global security operations center (GSOC) within their enterprise.

   Click here to view the 2022 Security Benchmark Report

Will cracking down on serial returners solve retailers' return problem?
A Iowa State University study concludes targeting serial returners is the smarter path to reducing return costs because targeting regular shoppers with stricter return policies will likely backfire.

In one experiment, the researchers led by Iowa State University asked over 460 participants to imagine they were loyal customers of a retailer and planned to return a recent online purchase. Half were told the retailer was shortening its return window for all customers (generalized policy) while the rest were told the change would only affect serial returners (targeted policy).

Participants were found to be significantly more likely to speak negatively about the retailer when the policy change was generalized. Further, negative word of mouth was significantly related to intentions to switch to a different retailer.

In another survey, 100 participants were asked their thoughts on generalized versus targeted policy changes. When the return policy change was targeted (aimed at serial returners), 44 percent expressed positive emotions, 13 percent negative emotions, and 43 percent, neutral. Positive respondents often referred to the fairness of the updated policy.

Robert Overstreet, a supply chain management professor at Iowa State, said in a press release, "Respondents largely understood that cheaters were increasing the price paid by everyone."

Narvar Research study: "2022 Returns Benchmark Report" found 63 percent of shoppers surveyed admitted to bracketing (purchasing multiple variations of an item), up from 55 percent in 2019. A growing number of shoppers (15 percent) say bracketing is "just how they shop now."  retailwire.com

100 Starbucks Stores 'Crippled' by Strike
Over 2,000 unionized Starbucks workers strike during profitable Red Cup Day
More than 2,000 unionized Starbucks baristas walked out on the job Thursday, crippling some 100 stores across the country on one of the company's busiest - and most profitable - days.

Members of the Starbucks Workers United union walked out during the java giant's much-anticipated Red Cup Day, a holiday mug giveaway that draws lines of customers before the stores open at the crack of dawn.

The workers were protesting the company's "union-busting tactics," the organization said in a statement.

The baristas say they are "underpaid, forced to run understaffed stores and they don't have consistent schedules they can rely on," according to the union. They also claim that Starbucks is not bargaining in "good faith" and that management has walked away from the table during collective bargaining contract discussions.

Some 260 stores, representing nearly 7,000 workers have been organized, according to the union. "The goal was to not open the stores today," said a union spokesperson, Casey Moore, who said Starbucks was not made aware which stores would be targeted.  nypost.com

Are Your Stores Ready for Winter?
Winter Safety Tips for Retailers & Why they Matter

See which ideas will help your business the most so you can ensure a safe and enjoyable winter every year.

1. Send Weather Update Emails - When meteorologists predict an increased chance for winter storms or icy rain, send an alert email to all your employees. They may watch the forecast along with you, but it's safer to remind them about the latest updates.

2. Plan For Adjusted Hours - Retailers should prepare for shift coverage flexibility or create remote work opportunities so everyone still receives a paycheck. Check in with team members when shift swaps get tricky so you can troubleshoot issues while everyone remains safe.

3. Salt Your Sidewalks - Salting your sidewalks is one of the best winter safety tips for retailers. Slipping and falling causes one-third of preventable injuries and fatalities during cold-weather seasons. Assign a few team members to prepare your sidewalks before the next winter storm.

4. Install Outdoor Heaters - Retailers can install outdoor heaters to keep employees who spend time outside warm. Some team members may be more sensitive to cold temperatures than others.

5. Rotate Employee Duties - Rotate employee duties frequently so everyone has a chance to warm up. Allow door holders to work as cashiers for part of their shift, or switch curbside pickup team members with inventory stockers.

6. Post Safety Tips - Post safety tips around the workspace to remind everyone how to protect themselves. Closing shift members should unplug space heaters before locking the front door. A few reminders posted in back rooms or bathrooms could save someone from painful cold-weather blunders. modernretail.co.uk

   RELATED: Buffalo Buried Under 6 Feet Of Snow After Historic Storm

Massive Freight Rail Strike Before the Holidays?
Key Union Votes Down Freight Rail Contract, Making Strike More Likely

The tentative agreement, brokered in September with help from the Biden administration, had averted a strike before the midterm elections.

Members of a union that primarily represent freight rail conductors have narrowly voted down a tentative labor contract, their union said Monday.

If the two sides cannot reach another tentative agreement by early December, the rail workers could strike - an outcome that industry officials have estimated could cost the economy more than $2 billion per day.

Roughly 51 percent of the voting members of the union, SMART Transportation Division, rejected the agreement. Members of a second large union, the Brotherhood of Locomotive Engineers and Trainmen, which primarily represents engineers, voted to approve the agreement by a margin of 53.5 percent to 46.5 percent. nytimes.com

U.S. will 'narrowly avoid recession': Goldman Sachs
The U.S. will probably "narrowly avoid recession," Goldman Sachs said, predicting a smooth easing in the tight labor market and noting both an unclogging in supply chains and well-moored expectations for long-term inflation. cfodive.com

Companies boost 2023 salary budgets to 20-year high: WTW
U.S. companies - reacting to persistent inflationary and labor market pressures - are ratcheting up the targeted average pay raise they expect to hand out next year to 4.6%, according to a study conducted Oct. 3 through Nov. 4 by the global advisory firm Willis Towers Watson. The last time salary budgets were as high as they are now was in 2001 and 2002, according to Lori Wisper, managing director with WTW.

Broader economic data suggests that companies are still grappling with a red-hot labor market and wage pressures. Layoffs in September declined and job openings increased 437,000 to 10.7 million, far exceeding the 5.8 million people seeking employment, the Labor Department said. cfodive.com

Kohl's 'is a business whose time has passed,' analyst says
Kohl's is bordering on irrelevancy, and it may stay that way for years to come, warned one veteran retail analyst.

Primark continues U.S. store expansion to hit 60 stores by 2026

BJ's to continue aggressive expansion plans in 2023

Last week's #1 article --

ORC Takes a Dent Out of Target Profits
The retailer uses facial recognition technology to crack down on repeat shoplifters

Target blames 'organized retail crime' for $400M loss in profits this year
Target said it has lost a whopping $400 million in profits this year thanks to organized gangs of shoplifters who have been systematically stealing merchandise from its discount stores.

"At Target, year-to-date, incremental shortage has already reduced our gross margin by more than $400 million vs. last year," Target CFO Michael Fiddelke said on an earnings call earlier this week, which was cited by Yahoo! Finance.

Fiddelke added that "we expect it will reduce our gross margin by more than $600 million for the full year." A Target spokesperson told Yahoo! Finance that the "shrinkage" which the CFO referred to was attributed specifically to "organized retail crime."

Target's shoplifting policy is one of the toughest of any retailer and was revised in 2022. Target uses facial recognition technology to gather evidence over time against repeat shoplifters. Target also has a private forensics lab to build cases against shoplifters and shares information on repeat offenders with other retailers.  nypost.com  ibtimes.com

New Federal Regulation of Spyware Technology
White House expected to issue executive order reining in spyware
The Biden administration plans to issue an executive order restricting how federal agencies can use spyware that poses security risks to the U.S., according to a letter sent to House Intelligence Committee leaders.

According to the letter from the Departments of State and Commerce shared with CyberScoop by Rep. Jim Himes, D-Conn., the forthcoming order plans to "prohibit U.S. Government operational use of commercial spyware that poses counterintelligence or security risks to the United States or risks of being used improperly."

The letter does not define what would amount to improper use or what these security risks entail - potentially leaving opportunities for the U.S. government to still deploy spyware. Nonetheless, the measure would entail the latest effort by the Biden administration to address the privacy risks posed by highly intrusive software used by law enforcement and intelligence agencies around the world.

The prospect of an executive order limiting the use of spyware would likely set up an intense debate among law enforcement and intelligence agencies interested in the technology and surveillance watchdogs in Congress.

The letter - a response to a September request by Himes and a bipartisan group of 13 members of the House Permanent Select Committee on Intelligence expressing concerns about addressing the "unethical uses" of commercial spyware - did not provide a timeline for signing the executive order.

Foreign governments' growing use of spyware to surveil dissidents, activists and politicians has raised alarms in Washington and led to growing concerns about how American adversaries could weaponize the technology against U.S. citizens and allies.

But there is evidence that the U.S. government is interested in deploying these technologies as well, partly in response to the increasing difficulty of obtaining evidence from encrypted devices and messaging services. cyberscoop.com

Huge Cybersecurity Vulnerability in Light of Layoffs
Secure Offboarding in the Spotlight as Tech Layoffs Mount

A secure-by-design culture is needed to develop a comprehensive offboarding and identity management strategy that limits potential for broader compromise

Increased turnover is putting a strain on existing offboarding processes - especially manual ones - for departing employees and contractors. Recent high-profile layoffs at major tech companies have put the spotlight on this issue.

Meanwhile, efforts to limit access to sensitive company information are growing more complex as data access points multiply. The rise of distributed workforces, cloud computing, work from home, and shadow IT suggest a comprehensive offboarding policy is required, aided by automation.

A recent survey from Oomnitza found, however, that nearly half of IT leaders have doubts about their company's onboarding and offboarding automation capabilities.

The study found a third of enterprises lose more than 10% of their technology assets when offboarding workers, and more than four in 10 (42%) said they experienced unauthorized access to SaaS applications and cloud resources.

Ting says the best employee offboarding programs are coordinated across HR, IT, IT security, and physical security teams working together to protect company data and assets.

The HR team finalizes departures and notifies employees, IT ensures access to apps and company laptops is shut off in a timely manner, the physical security team disables access to company facilities, and the IT security team monitors for unusual behavior. darkreading.com

Microsoft Warns of 'New & Creative' Ransomware Techniques
DEV-0569 Ransomware Group Remarkably Innovative, Microsoft Cautions

Researchers say DEV-0569 regularly uses new and creative discovery techniques

It generally starts with malvertising and ends with the deployment of Royal ransomware, but a new threat group has distinguished itself by its ability to innovate the malicious steps in between to lure in new targets.

The cyberattack group, tracked by Microsoft Security Threat Intelligence as DEV-0569, is notable for its ability to continuously improve its discovery, detection evasion, and post-compromise payloads, according to a report this week from the computing giant.

"DEV-0569 notably relies on malvertising, phishing links that point to a malware downloader posing as software installers or updates embedded in spam emails, fake forum pages, and blog comments," the Microsoft researchers said.

In just a few months, the Microsoft team observed the group's innovations, including hiding malicious links on organizations' contact forms; burying fake installers on legitimate download sites and repositories; and using Google ads in its campaigns to camouflage its malicious activities. darkreading.com

Top employee cybersecurity tips for remote work and travel

New ransomware encrypts files, then steals your Discord account

DOJ: California Man Gets 63 Months for Scheme Involving Over $300,000 in Fraudulent Purchases from Home Depot
NEW ORLEANS, LA - U.S. Attorney Duane A. Evans announced that JONATHAN or Pilla SINLAO, age 38, a resident of San Jose, California, was sentenced for Conspiracy to Commit Access Device Fraud.

SINLAO conspired with others to conduct approximately $340,164.49 in unauthorized purchases of gift cards and products at Home Depot stores using Citibank credit card numbers belonging to others. During these transactions, SINLAO used temporary charge passes containing his own name with 16-digit credit card numbers belonging to other customers. These transactions occurred between February of 2019 and July of 2019 at Home Depot stores in Louisiana, Florida, Texas, Arizona, California, New York, and Oklahoma. Video footage and photographic evidence from Home Depot stores captured SINLAO conducting approximately 78 unauthorized transactions.

To serve 63 months in Federal prison followed by 3 years of supervised release and pay restitution of $341,164.49. justice.gov

Coral Springs, FL: Police Taser Pregnant Woman After She Allegedly Shoplifted from Store and Refused to Obey Officer's Commands
A pregnant woman was tasered last week by a police officer after she allegedly stole from DICK's Sporting Goods in Coral Springs, got into a car, and then refused the officer's commands to turn off the ignition, a police report said. J'Amarreah Gains, 22, of Plantation -- who works for Allied Security and was wearing a security guard uniform -- faces charges for grand theft and resisting officer as well as five motor vehicle violations, the report said.

A Coral Springs police officer arrived at the store at 8921 W. Atlantic Boulevard around 6:30 p.m. on Nov. 9 after the store's security suspected three women of shoplifting and identified their car parked in a handicapped spot, the report said. She didn't, and the officer told her again to turn off the car, the report said. This time, she threw out the window some stolen merchandise, and said: "Just take it," the report said. Still, Gains didn't turn off the car and continued moving the car forward, the report said.
The officer then switched the gun for a taser, and again instructed her to shut off the car, the report said. When she didn't turn it off, the officer fired the taser, and it hit her arm, the report said. Gains still didn't comply, so the officer fired again, the report said. This time, she stopped the car and was taken into custody, the report said.

At one point, another person was walking near Gains' car and could have been hurt if she drove off, the report said. Officers found a loaded gun in the car, the report said. Police also arrested the car's passenger, Travesia Jenkins, 25, of Coral Springs, for grand theft and carrying a concealed firearm, according to another police report. Jenkins told police the gun was hers, her arrest report said. Police also arrested the rear passenger, Bernadette Negila, 23, of Pompano Beach, on a grand theft charge, according to a third police report. In all, the women allegedly stole 44 items from DICK's worth $2,163, one of the reports said. As police took Gains into custody, they learned she was two months pregnant. She was taken to Broward Health Coral Springs for an evaluation and then driven to Broward County Jail. She was released from jail after posting bail for the $1,000 bond, according to court records. tapinto.net

San Diego, CA: High-end UTC Mall sneaker shop 'City Kicks' burglarized
San Diego police are searching for three people who broke into a high-end sneaker shop in University City early Sunday morning. San Diego police officers were dispatched to reports of a burglary in progress around 4:40 a.m. at City Kicks located inside Westfield's University Town Center Mall in University City, according to SDPD. City Kicks is a local San Diego business that sells high-end sneakers such as Jordans, Yeezys, and other hype fashion items from designers like Anti Social Social Club, VLONE, and Fear of God. San Diego police recovered some stolen merchandise at a nearby apartment complex which included Air Jordan 12 Retro 'Playoff's, which typically resale for about $200, a black Supreme duffle bag which resales for $257 on StockX - an online marketplace, and a pair of Yeezy Boost 350 V2's in the Zebra colorway which resale for around $400 on StockX. It's unknown how much total merchandise was stolen from the sneaker shop.  cbs8.com

Lancaster County, PA: Maryland man helps steal $2,000 worth of products from Lancaster County Ulta Beauty
A Maryland man was arrested for stealing $2,000 in products from a Lancaster County Ulta Beauty. Rashad Davon Hunt, 30, from Baltimore, was charged with one count of conspiracy retail theft. According to Manheim Township Police, the suspects selected and stole an excess of $2,000 worth of perfume and colognes listed for sale. They reportedly did so in full view of store security cameras. Witnesses watched the suspects flee the scene, where they were later picked up by a driver in a gray sedan. An officer arrived and located Hunt fleeing on foot. A subsequent investigation showed that Hunt allegedly admitted that he was inside the getaway car, has a known history of theft and specifically conducted thefts targeting Ulta Beauty stores via Maryland investigators. Based on the investigation, it was determined that Hunt was likely the driver of the giveaway car and was present while the suspects following the theft. A criminal complaint was filed. Hunt was arraigned before MDJ Miller and committed in lieu of $10,000 cash bail.  fox43.com

Charlotte County Pharmacist confesses to $94K medication theft
A pharmacy manager has been arrested for allegedly stealing from his own store. The Charlotte County Sheriff's Office alleged 31-year-old Kerolos Ibrahim confessed to taking $94,000 in medications from the pharmacy at the Winn-Dixie store at 3280 Tamiami Trail. Deputies were initially called to the store Thursday in response to a reported theft. Ibrahim was captured on video surveillance "removing medication from the shelf, placing it inside a plastic bag, and driving to his place of residency in Sarasota County," arrest records show. yoursun.com

Update: Mesquite, NV: Following break-in, Mesquite police arrest man believed to be responsible for multiple thefts
Mesquite Police officers responded in late October to a report of a business that had been burglarized overnight. And last Sunday, they arrested the person believed to have been responsible. On Oct. 23, authorities discover forced entry into the business and the suspect had attempted to steal over $9,000 worth of merchandise, according to a news release from Mesquite police. stgeorgeutah.com

Twin Falls, ID: Pair from Michigan charged with $4,400 grand theft from Twin Falls Walmart

Fairfield County, CT: Women From Bridgeport Accused Of Stealing $2,642 Worth Of Items From Boscov's