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Annual fraud study finds that 'fatalists' are the best-protected merchants
The heart of the problem is card-not-present transactions. Though such sales represent a small fraction of all sales, the role they play in fraudulent transactions “is huge,” says Jim Van Dyke, president of Javelin Strategy & Research, which conducted the survey for LexisNexis Risk Solutions. Jim Rice, director of market planning for the retail and e-commerce market at LexisNexis, says that, “For every $100 of fraud, there is $270 of fraud loss.” And the problem is growing as retailers expand into foreign markets and mobile commerce. “When you look at global and mobile, you ... take on this complexity where you can expect there to be fraud,” Van Dyke says. (Source

Wal-Mart nixed paying Bangladesh suppliers prices high enough to cover costs of safety improvements in April 2011    At a meeting convened in 2011 to boost safety at Bangladesh garment factories, Wal-Mart Stores Inc. made a call: paying suppliers more to help them upgrade their manufacturing facilities was too costly. The comments from a Wal-Mart sourcing director appear in minutes of the meeting, which was attended by more than a dozen retailers including Gap Inc., Target Corp. and JC Penney Co. Sridevi Kalavakolanu, a Wal-Mart director of ethical sourcing and her counterpart at Gap reiterated their position in a report folded into the meeting minutes, obtained by Bloomberg News. “Specifically to the issue of any corrections on electrical and fire safety, we are talking about 4,500 factories, and in most cases very extensive and costly modifications would need to be undertaken to some factories,” they said in the document. “It is not financially feasible for the brands to make such investments.” Bangladesh’s labor law requires safety measures such as fire extinguishers and easily accessible exits at factories. Ultimately, the Bangladesh government will have to start enforcing its owns laws. (Source

Holiday spending jumps 14% hitting $21.4B in 32 day period,  Nov. 3 to Dec. 4
128.7 million consumers have bought online so far this holiday season, with consumers spending at least $1 billion with e-retailers on each of four days during the last week of November, with Cyber Monday. (Source

US Demand for Private Security Services to Reach $63.8 Billion in 2016
Projected to rise 5.2% annually. The market will be supported by a high perceived risk of crime (from conventional violent and property crimes to white collar crimes and terrorism) and a concern that public safety officials are overburdened. The outsourcing of security activities to contracted firms, instead of relying on in-house security, will support demand. (Source

The U.S. and EU - European Union in Mexican standoff when it comes to privacy protection    The European Union's top data protection watchdog expects that only a select band of U.S. IT companies will meet E.U. data protection standards for some time to come. Under the E.U. Data Protection Directive, personal data cannot be transferred out of the E.U. unless the destination country's data protection laws are deemed adequate. To date, only a tiny number of jurisdictions have been deemed adequate: Argentina, Canada, Guernsey, the Isle of Man, Israel, Switzerland and Uruguay. Changes in U.S. legislation could also advance the country's cause. Hustinx noted that, with the re-election of President Obama, a U.S. Privacy Bill of Rights looked closer. (Source

Supervalu's two largest banners - Albertson's and Save-A-Lot may be bought by Cerberus Capital Management    Cerberus, which owns the Albertsons LLC stores — now transitioning to Albertsons Market — was reported to have been in talks to acquire all of Supervalu, but was unable to secure financing. According to a Bloomberg News report Cerberus scaled back the scope of a potential deal to include only Albertsons stores and the Save-A-Lot limited-assortment banner. Supervalu could use the proceeds to pay down debt and focus on the disposition or ongoing operation of its other holdings. (Source

Global Fire Alarm Equipment Industry research report by
This report analyzes the worldwide markets for Fire Alarm Equipment in US$ Million by the following Product Groups/Segments: Fire Alarm Panels (Conventional Fire Alarm Panels, Addressable Control Panels, & Voice Evacuation Systems), and Fire Alarm Devices (Annunciators, Notification Devices, & Manual Pull Stations). The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin America. (Source

MWV (R)evolutionizes Consumer Electronics Packaging at the 2013 International CES with revolutionary security packaging system    At this year’s CES, MWV is launching a revolutionary security packaging system, in partnership with ProTeqt Technologies, which leverages digital technology to deter theft and boost sales. The system comprises a small lock placed on high-value consumer electronics products, which renders the product non-functional until it is digitally disabled by the retail associate at checkout. The system removes the thieves’ motivation to steal, while at the same time does not impact the consumers’ interaction with the product. (Source

"Florida Felony Lane Gang” hitting Chicago burbs
Florida woman arrest last month and subsequent investigation by Winnetka Police links crime group “Florida Felony Lane Gang" to organized ID theft ring. The group recruits in Florida and operates in places like Chicago’s suburbs. They steal women's purses use the identification, checkbooks and other bank information to write and cash checks against each victim’s accounts. The suspects use a check and make it payable to another burglary victim of which they have a driver’s license. They even cut their hair short to wear wigs and use make up to look like the victims photograph. The group has ring leaders in Florida who recruit individuals, typically women who have fallen on hard times, and travel with them to the Chicago area. “(The group’s leaders) recruit these people because they are the ones they want to get caught,” Christensen said. “A lot of (the leaders) stay out on the perimeter as lookouts.” (Source

Tennessee Auto Parts Company Employee embezzles $350,000
Police say that Ison is accused of stealing at least $340,000 from Grey's Used Auto Parts, over the past 17 months. (Source

Customs seizes $300,000 in counterfeit Tigers gear
U.S. Customs and Border Protection seizes $300,000 worth of counterfeit knit Detroit Tigers hats and headbands en route to Michigan from China. (Source

Robbery suspect falls through pharmacy roof
Police are looking for two suspects in connection with a robbery at a Philadelphia pharmacy that was caught on surveillance video, which shows one suspect repeatedly falling to the ground as he tries to flee after the break-in. Police say the suspect inside the pharmacy left behind the backpack and a white construction hardhat with the words "Perryman Building and Construction" in red on the front and the initials "D.A." in marker on the inside. Not the brightest guy in the world and DNA evidence should be enough to get them sooner or later. (Source

Flint, Mich., billing security companies for false alarms
A decision by the city to begin billing security companies for false alarms—more than $31,000 in the first month alone—has the industry working with police to shift the burden to end users. According to the ordinance, no fees are assessed for the first two false alarms at a given location in any one-year period. The third false alarm is $75, with the fee rising $25 for each subsequent incident. A $35 late fee is added to any bill not paid within 30 days. “Some [cities] have tried it before,” Mowrey told Security Systems News. “There are several in California that got involved in legal action and the courts all upheld that you need to bill the end user, not the alarm company. [Flint] probably set it up not knowing the consequences and not realizing that it’s not going to help reduce alarm calls. (Source

Well dressed armed Jewelry thief hits Shay’s Jewelers in Houston. The well dressed suspect asked the manager about credit options, as he was completing the application with the store manager, a second suspect entered the store and took his place at the rear of the store near two associates. The well dressed suspect pulled his gun and forced customers and associate to the ground. He then ordered the manager to give him the keys to the front showcases, then zip tied the managers hands behind his back. No one was injured, the suspects are still at large. (Source

Nine Men Sentenced For Series of Armed Robberies in Northern California
Police said the group was involved in 15 robberies of 7-Eleven stores, Wing Stop restaurants, and gas stations throughout southern Alameda County and a robbery in Milpitas. (Source

Chicago Police warning local businesses of potential armed robbers.    Two suspects in the Chicago area have already hit four stores, including a CVS, stealing cash, bus passes, and cigarettes from behind the register and quickly disappearing. No one has been injured in any of the incidents, but a weapon has been displayed each time. (Source

Columbus, Ohio man sentenced to 36 years for 19 armed robberies. Christopher Blaho was facing 160 years after pleading guilty to 19 Columbus area robberies, Blaho is believed to have targeted gas stations, Subway restaurants, United Dairy Farmer stores, pizza shops, a beverage drive-through and a pharmacy, no one was ever injured. Blaho’s attorney said, Blaho was abusing drugs and alcohol and committed the crimes to feed a heroin addiction, he was living in his minivan. (Source

Thieves smash SUV into fire doors of a St. Louis, Mo. Rent-a-Center store.    St. Louis police are searching for two men who drove an SUV through the back door of a Rent-A-Center store and stole merchandise. The crime happened around 3 a.m. Thursday. A witness saw a black sport utility vehicle back into a rear door. The driver and a second man ran inside and stole items. Store officials were still trying to determine what was taken. The extent of the damage to the building has not been determined. (Source

Gunshots fired at shoplifters in Miramar, FL, Officer fears for his safety.    A police officer fired gun shots at shoplifting suspects near a Miramar Target when he felt they were going to run him over, according to authorities. It happened Wednesday night near the store located on Miramar Parkway and 163rd Avenue. Miramar police said three suspects were in custody and the search for a fourth person would continue. Officers said they arrived at the scene and found the suspects trying to leave the area in a car with two TVs taken from the Target. Police said they stopped the suspects, who took off when an officer approached the car. One person reportedly exited the car before the others circled around the lot in the car and headed straight for the officer. According to police, the officer felt his life was threatened. That's why he pulled out his weapon and shot at the suspects. No one was hit by the gunfire, authorities said. The suspects then ran away on foot and the abandoned car hit a tree and possibly a parked car. (Source

Serial shoplifter wanted in Clarksville, Tenn.
Shanta Griffin, 35, has four theft warrants on file. Police said Griffin often wears a Sponge Bob knit cap when shoplifting. She is currently out on bond awaiting trial on previous theft charges. (Source

Man caught shoplifting with a stolen John Deere Tractor in Washington.    A man in Yakima, Washington was attempting to shoplift more items from a local Walmart, earlier that day he had already stolen a John Deere tractor from YV Tech. The tractor was actually on the back of a truck driven by the suspect, the truck belonged to a relative that said he let someone borrow it, but never got it back. (Source

A $4 shoplifting case could lead to 8 years in prison.
The $4.19 of stolen merchandise is only part of the problem for Lori Suter of Stark County, Ohio. As she fled from the IGA Grocery store, she knocked down an employee who was attempting to stop her, she is now being charged with a second degree felony, punishable by 8 years in prison and a $15,000 fine. (Source

Jewelry Store Burglar returns the next day, wearing two stolen watches. Okay, maybe not the greatest plan to attempt to go back to the same store you burglarized the night before. What makes it worse, wearing two of the stolen watches. Nashville Police staked out the Variety Jewelry and the Radio Shack stores which were burglarized Tuesday, and early Wednesday morning the burglar returned to scene of the crime attempting to break back into Variety Jewelers. Brad Kendall was taken into custody and admitted to the burglaries. (Source

Burglars hit Jimmy Choo Store on Chicago’s Gold Coast.    The doors were pried open by two suspects, while a third suspect waited in the get-a-way car. An inventory is being conducted to determine the loss; no numbers were released thus far. Last month, the American Apparel store was hit on the same block by burglars. (Source

Jack in the Box Robbery suspect turned in by his Wife.
On November 28, Johnny Reyes and another suspect entered the Jack in the Box restaurant in San Antonio and stole cash from the registers and the safe. Reyes and his accomplice forced employees into the storage freezer at gunpoint. Reyes told his estranged wife that he committed the robbery and threatened her if she told anyone. Reyes’s wife worked with Police identifying her husband from the robbery video. Police are now also trying to connect Reyes with an armed robbery of a Dollar General store. (Source

November Same Store Sales results

Walgreen down 6.2%

Quarterly Same Store Sales Results

Lululemon 3Q up 18% with sales up 38%- Canada's darling
Ascena Retail Group 1Q up 1% with sales up 48% due to acquisition of Charming Shoppes - now the largest specialty retailer in terms of store count in the U.S.



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LPNN - Loss Prevention News Network

Featured Episode

The Big Box & Specialty Store ORC Leaders
Part 3

Learn how these retailers are addressing ORC -
the fastest growing crime.


In this five part series LPNN talks with Joe LaRocca, senior retail partner and former senior advisor of Asset Protection for the NRF, Scott Sanford - the Director, Investigations & Training - Loss Prevention for Barnes & Noble and one of the founders of the ORC Solutions - ORC Workbench - the fastest and most successful online organized retail crime detection and prevention tools, Denny Dansak - Kroger's Corporate Manager, ORC, Nelson Harrah - The Gap's Director of Organized Retail Crime, and Deb Lussier - Home Depot's Senior Manager of Central Investigations. In this series you'll learn exactly how these retailers are addressing Organized Retail Crime and how they've built their models. They discuss what they look for in staffing ORC positions and how they measure the effectiveness of their program. This is a great opportunity to see exactly how four major retailers have responded to the ORC problems facing the nation. Stay tuned tomorrow for part four.




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Booster Bag shoplifters caught in Tampa, $700 recovery.
The bags contained nearly $700 in stolen merchandise, including skinny jeans, polo shirts and shorts from various stores and were equipped with anti-theft equipment, according to police. A St. Petersburg man, dressed as a woman, and another man were charged Tuesday after police said they tried to steal $700 in merchandise from International Plaza. Police were working surveillance at the mall when they recognized Cedric Sanders, 22, who also previously was dressed as a woman, police said. When Sanders and the other suspect, 21-year-old Terral Norris of St. Petersburg, saw the officer, they ran and threw shopping bags to the ground, both were arrested without incident. (Source

Smash & grabs "plaguing" Mobile and Baldwin Counties in Alabama
Investigators are one step closer to figuring out who is behind a series of "smash and grab" thefts that have plagued Mobile and Baldwin Counties. Local 15 has learned both Sheriff's Offices have been working the case heavily. (Source

Del. Police Seek Suspects in Identity Theft hitting Wal-Mart    Delaware State Police say they are searching for two people wanted in connection with several incidents of identity theft and unlawful use of a credit card. According to police, on multiple occasions between Nov. 22 and Nov. 23, a man and woman made numerous illegal transactions on a 78-year-old man's credit card. (Source


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Thought Challenge

Thought Challenge Review Starts Today

by Ken Rayca, CPP
Director, Loss Prevention
Liz Claiborne, Inc.

as published on March 14, 2012

This past Thanksgiving weekend I had the great opportunity to get together with some old High School Classmates/Teammates that I hadn't seen for over 25 years for a College Football game in which one of our own was the Head Coach. It was great fun and sure great catching up! However, when the inevitable question came up 'So Ken, what do you do now?' I found it difficult to articulate it to these very intelligent, well educated folks in such a way that their response was not 'so you're the guy that makes sure nobody steals.' Now I KNOW I do immeasurably more than that, however if I could not articulate it effectively to these folks, some of them business owners themselves, why do I just ASSUME that my Retail partners simply KNOW I'm more than 'just the guy that makes sure nobody steals'? We all know how much value we truly add to our respective organizations. The true challenge is to find the right methods to articulate this in every way so we're not just 'the guys who make sure nobody steals.' I resolved to ensure I provided the highest level of Customer Service to my partners in data distribution ranging from Incidents to LP Audit execution to ORC trends and much more. While some of this was already part of my playbook, I truly 'raised my game.' I sought to add value to the company in any way possible with our LP Organization, including spearheading a Six Sigma project in the field. None of these things took our 'eyes off the prize' of our primary mission and they never will. LP can never be all things to all people. However, that day of tailgating and College Football opened my eyes to an assumption I will never make again; that my partners necessarily know we're more than just the 'guys who make sure people don't steal.' Because I will make sure I can articulate it in every way possible.

The Thought Challenge Review 2012 begins Dec. 1st. It's not too late to submit yours! December 31st deadline.

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Vendor Spotlight

5 Tips for Retail Loss Prevention during this Holiday Season


With the holiday season upon us, we would like to see the best in people and spread the spirit of giving. However that does not mean loosening up on retail loss prevention strategies. Retailers have been doing a great job this year tightening up security and revamping their loss prevention methods. With all the data coming in at the store level, the loss prevention teams are able to catch and solve issues before they become significant.

Retail Loss Prevention: What to Review

1) Make sure your promotions are running smoothly and being rung up properly. Nothing is more challenging than keeping all the holiday promotions in check. A good method for checking the accuracy of your promotions is ringing them up ahead of time to test the system. Also take time to run through a trial with employees at a monthly training meeting, as a refresher. It is good to practice this in order to maintain uniformity across your various locations. The goal is to make sure every promotion works properly and that every employee is on the same page, regardless of position or experience level.

2) Make sure employees are trained and equipped to handle large amounts of store traffic. Give your employees the tools and resources needed to make quick fire decisions, and let them know that they have the power to make decisions on their own. Make sure that everyone is up to date on policies and they know exactly who to contact in case an issue occurs. Trained employees are more likely to do their job properly, and they are also more comfortable making decisions. Having employees that know how to handle the holiday foot traffic will greatly improve your operations.

3) With the increasing amounts of traffic it is important to be properly stocked and have displays updated in a timely manner. Make sure inventory levels are accurate, and keep a record of traffic down times. Why would you want to keep a record of your down times? Because these may be the best times to restock. You don’t want the increased foot traffic in your store to go to waste, and restocking during busy hours may do just that. When restocking is done make sure it is quick and efficient. Another thing to consider is the use of smart shelves, which let you know how fast your selves are emptying so you can make sure they are never completely bare. Remember, you want your customers to have easy access to the things they want.

4) Properly staff your stores during the holidays. This one may seem obvious, but there are some important things to remember. Increase the amount of on-duty staff, and consider scheduling a reserve of on-call staff as well. This not only acts as a precaution in case of a traffic influx, but it will also be helpful if the weather conditions suddenly get harsh. The holiday season not only brings large crowds, it brings bad weather and an increase in sick days from employees. Make sure your staff is aware of extreme weather and sick day protocol and have an open system of communication between employees and managers in case of emergency.

5) Do not spend more time monitoring your data than you have to. It is the holiday season after all, so spend your time on more important matters. Focus on being a physical presence in your stores with your team, and with your family. Let us keep an eye on the data, and who’s been naughty or nice. This way you can worry about enjoying the season and improving the success of your stores. Our big data for retail solution, Retail 20/20 gathers your siloed data and integrates it together to provide you actionable reports in real-time. Not only do we catch operational and systemic issues as they occur, we send alerts to your mobile devices so you don’t have to be tethered to your desk, because who wants to be in their office this time of year?

Derek Rodner
VP, Product Strategy
856-366-1200 x500


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14 Ways to Stay Focused at Work Through the Holidays We're in the midst of the holiday season, and as you try to juggle parties, shopping, hosting, planning, traveling, and work, there's a good chance you'll lose focus and momentum in the office. The reason? Your to-do list swells while your time shrinks. (Distractions)

Holiday 2012: Five Signs You're Working For the Grinch When the invitation first showed up in your inbox you thought it was a mistake. "The annual [Your Company Here] holiday party will be held next Monday evening in the third floor conference room at five pm, ending promptly at seven. Soda and sandwiches will be served. Bah-humbug, it's official, you're working for the Grinch. (He's trying to steal Christmas)

Leadership - Why Talent is Overrated Talent, in and of itself, is highly overrated. While not all leaders will develop their talents and abilities to the same level, all successful leaders more or less begin with the same foundation. Here's the thing -- most foundational elements of leadership require no skill or talent whatsoever. These are leadership characteristics that require zero talent or skill. (Your potential)

5 Ways to be an Exceptional Leader Are leaders born or made? Four authors explore how anyone can become a better leader in their book How To Be Exceptional: Drive Leadership Success By Magnifying Your Strengths. Find out their five tips and check out more of their infographics here. (Just like any other)

"The problem with the rat race is that even if you win, you’re still a rat"
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3VR - video surveillance, video intelligence

Seems like the longer a process goes, the harder it is for everyone to stay focused on the initial purpose and maintain the enthusiasm as when it began. Time and difficulty have their impact, but maintaining the passion and enthusiasm is up to each person. With the last step seemingly the easiest, it is usually the most critical step of all and many tend to approach it as if it is a mere formality when, in reality, that last step can be the biggest and, if you do not watch out, it could be a step right off the cliff.

Just a Thought,

Gus Downing

Gus Downing

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