San Francisco Stores Shift to 'Defensive Retailing' to Fight Theft
Stores in crime-riddled San Francisco abandoning self-checkout lanes to combat thefts: report
Retailers in crime-riddled San Francisco are abandoning their self-checkout lanes in a "defensive retailing" move to counter surging thefts in the city.

A Safeway supermarket in San Francisco's Fillmore District and a Target on Mission Street closed their self-checkout kiosks to customers - a change that other stores across the troubled city may follow, SFGate reported.

Retail thefts and organized "smash-and-grab" robberies in the Golden Gate City - and major cities across the country - have skyrocketed in recent years, forcing many major stores to shut down certain locations.

Target blamed crime for shutting down three stores in San Francisco in September, according to SFGate. In 2021, Safeway said rampant thefts forced a city location to cut employees' hours.

There have been 29,739 cases of larceny and theft in 2023 - significantly down from 2022 when 61,715 were reported, according to the latest data from the San Francisco Police Department.

In response, retailers have had to adapt, which may wind up making shopping ultimately more difficult, Conway told SFGate.

"All the things put in place to reduce friction are now being put back," Conway said. "I can buy whatever I want on my phone, but now when I want to go to a store to buy it, it's harder.

"It's difficult to make a direct correlation, but I think in San Francisco it's getting to the point that you are seeing stores closing, which is the ultimate form of defensive retailing," she said. nypost.com


Self-Checkout is on the Chopping Block as Retailers Fight Theft
Dollar General follows Target and Walmart in anti-theft move

The discount retailer has made a big change designed to cut down on shoplifting.

Dollar General rolls back self-checkout

To compensate for having limited staffing, Dollar General has embraced self-checkout. That has led to an increase in the theft at the chain's 17,000-plus U.S. locations.  CEO Todd Vasos, who recently took the chain's CEO job back from Jeff Owen, has decided to roll back the chain's self-checkout efforts.

"We plan to increase the employee presence at the front end of our stores and in particular, the checkout area. While self-checkout has contributed to the convenience proposition for our customers in certain stores, it does not reduce the importance of a friendly, helpful employee who is there to greet customers and assist while the checkout process is happening," he said during the company's third-quarter earnings call.

This is a big change for Dollar General

Those comments come just three months after Owen had bragged about the chain's implementation of self-checkout. "We have simplified operations by optimizing our container delivery and rolling out the self-checkout option, which was available in nearly 14,000 stores at the end of Q2," he said during the second-quarter earnings call.

Vasos believes the change will help the company cut down on theft. It does not plan to fully drop self-checkout.  thestreet.com

   RELATED: Dollar General is having its own self-checkout reckoning


Rampant Theft is Pushing Retailers Into a Time Machine
Bloomberg Opinion: Retailers Step Back Into Time to Stop Theft

Asking a store clerk to retrieve goods from behind glass was a typical shopping experience until the early 20th century when the supermarket chain Piggly Wiggly changed everything.

Brick-and-mortar retailers have a shoplifting problem. At least, that's the vibe in retail circles these days, with talk of an "epidemic" of theft as shoppers pilfer goods at an alarming rate. Whether real or simply a "moral panic," the belief that store shelves will soon be stripped bare has prompted some retailers to lock up their goods, forcing shoppers to consult a clerk first.

If everything eventually gets put away, we'll all get a taste of how our grandparents used to shop. Until the early 20th century, shopping was an introvert's nightmare. When someone walked into a grocery or a dry-goods store or clothier, they would be greeted by a storekeeper or, in larger establishments, an army of clerks.

Clarence Saunders, an American grocer, overturned this model with a novel idea: the self-service store. Fewer people working equaled less money being spent. In 1916, he opened a grocery store that he called "Piggly Wiggly." Though it may not have been the first of its kind, it was by far the most influential.

Over the past 50 years, there have been periodic panics that shoplifting might somehow render the self-service shopping model obsolete. The 1970s, in particular seem to have been the last major "epidemic" of shoplifting, part of a larger anxiety about rising crime - real or imagined - at the time.

Still, previous efforts to combat the problem - plainclothes guards, magnetic tags, and cameras - didn't challenge self-service retail. Now, though, the growing tendency to force shoppers to consult a sales associate marks a return to an older method of shopping, even if it's being driven by contemporary concerns. bloomberg.com


Lawmakers Push Federal ORC Legislation
Arizona Rep. Ruben Gallego Pushes for Action to Fight Organized Retail Crime
PHOENIX, AZ - Rep. Ruben Gallego (AZ-03) called for action to combat organized retail crime - the coordinated, large-scale theft of retail merchandise with the intention to resell that merchandise for financial gain - and touted his efforts in Congress to protect Arizonans and end these crime rings at a press conference today.

"During the holiday season, Arizona families rely on grocery, drug, and retail stores more than ever," said Rep. Gallego. "Organized retail crime reduces choice for consumers, puts workers in harm's way, and hurts our economy. That's why I'm fighting to ensure the federal government steps in to break up these crime rings and help state and local law enforcement on the ground."

Joining Rep. Gallego at the press conference was leadership from the Arizona Chamber of Commerce & Industry, the Arizona Retailers Association, and the Maricopa County Attorney's Office.

"Organized retail crime and illicit trade are becoming a real and growing threat to Arizona businesses, workers, and taxpayers," said Danny Seiden, President and CEO of the Arizona Chamber of Commerce & Industry.

In October, Rep. Gallego announced his support for the bipartisan Combating Organized Retail Crime Act, legislation to empower federal law enforcement to address organized retail crime groups targeting American businesses and consumers.

He previously sent a letter to Attorney General Merrick Garland and FBI Director Christopher Wray requesting their agencies increase efforts to re-prioritize and counter an alarming rise in organized retail crime nationwide. rubengallego.house.gov

   RELATED: Gallego: Organized retail crime in Arizona 'forcing stores to close'


New State ORC Unit Ramps Up Fight Against Criminals
The fight against organized retail crime heats up in Washington
A Washington state unit focused on organized retail crime filed its first case last month, charging a 33-year-old Bremerton man with 11 thefts totaling more than $50,000 from Target stores in Kitsap and King counties. The unit within the state Attorney General's Office was created this year with the aim of curbing organized retail theft.

Retailers are legitimately afraid that too many reported incidents could cause them to lose their insurance, according to Mark Johnson of the Washington Retail Association.

But, he said, it's critically important for retailers to report thefts anyway because the criminal justice system increasingly depends on data analytics for law enforcement funding and successful prosecutions.

Zoom in: By one measure, Washington state has one of the highest retail theft problems in the nation, according to an online survey commissioned by Forbes Advisor of small business owners with a brick-and-mortar store.

What they're saying: These crimes hurt Seattle businesses, said Rachel Smith, president and CEO of the Chamber of Commerce, because of "compromised ability to attract and retain employees and customers" as well as increased costs to ensure their safety.

What we're watching: State and federal legislators are considering bills to combat retail crime, said Johnson, including one that would provide funding to small businesses for loss prevention tools such as cameras and lighting. axios.com


Another State Pushes for Tougher Theft Penalties & Funding
Ohio Chamber task force pushing for changes in state law to fight retail theft
In the middle of the busiest shopping season of the year, an Ohio Chamber task force on Friday released recommendations meant to crack down on organized retail theft.

The recommendations include changes in state law that would make it easier to charge thieves with crimes that carry stiffer sentences and getting the legislature to funnel more money to the attorney general's office to help local prosecutors try cases of retail theft.

The chamber formed the task force last June to study how crime affects public safety and come up with solutions following a survey that found 62% of Ohio businesses say crime has kept them from expanding.

The Ohio Council of Retail Merchants plans to introduce legislation, called the Fight Organized Retail Crime & Empower Law Enforcement Act, that also is meant to attack the problem.

The group has estimated that retail theft translates into losses of $2 billion to $3 billion a year for retailers. dispatch.com


NRF Calls ORC a 'Serious Problem' Despite Data Retraction
Retailers on Claims of a Growing Theft Problem: Never Mind

An industry group retracted a claim that organized retail crime accounted for nearly 50% of merchandise loss in 2021 as analysts question if chains are overstating the problem

"We stand behind the widely understood fact that organized retail crime is a serious problem impacting retailers of all sizes and communities across our nation," the group said statement in a statement. "At the same time, we recognize the challenges the retail industry and law enforcement have with gathering and analyzing an accurate and agreed-upon set of data."

Mary McGinty, a spokeswoman for the federation, told the Times that the error was caused by an analyst from the advisory firm K2 Integrity, which helped prepare the report. themessenger.com


Small Businesses Invest in Security Cameras & Staff
The majority of small business owners prepared for theft this holiday season
According to a study done by Forbes Advisor, more than half of small business owners across the country expect theft this holiday season.

"I'm sure we're a bit more targeted probably, we don't have the security that a big box store might have. But we up our staff this time of year because it's just busier and it helps out that way," said Jenni Campbell, vintage dealer at Flower Child.

Security cameras and more staff on the floor keep the shopping experience enjoyable for everyone. news5cleveland.com


CNN Video: Why retailers don't do more to prevent shoplifting
Why don't retailers do more to prevent shoplifting? "There is no merchandise in the store more valuable than the safety and well-being of the employees and the guests in the store," says Brian Dodge, President, Retail Industry Leaders Association. But without much law enforcement, online fencing of stolen goods is booming.

Oakland Chinatown merchants to ask for more reporting, police foot patrols
Oakland Chinatown business owners are frustrated and speaking out after a series of armed robberies, burglaries and break-ins in recent weeks.

Modesto Police Department amps up resources to tackle organized retail theft

Topeka Police Department warn residents about organized retail thefts in Capital City

Large Gift Card Operation Targeting Retailers
The proceeds are likely being funneled into Chinese bank accounts

Holiday shoppers warned of gift card scam likely padding Chinese bank accounts

The Sacramento County Sheriff's Office's Operation Bad Elf netted 258 felony and misdemeanor arrests

The Sacramento County Sheriff's Office is warning the public of a disturbing and "very sophisticated" gift card scam that has national and international implications.

The sheriff's office told Fox News Digital this week it carried out a massive anti-retail theft operation at big box stores across the county, netting 285 felony and misdemeanor arrests in seven days. Among those arrested was a Chinese national who was found to be in possession of thousands of Target and Apple gift cards.

After the arrest, detectives made their way to Sun's car and found thousands of Apple and Target gift cards.

Gandhi explained that the suspect would obtain legitimate gift cards from store shelves and "surgically remove" the glue that covers the cards' bar codes. He would then allegedly record the PINs, re-conceal the bar codes with glue and return the cards to store shelves.

"[The] investigation revealed Sun was part of a scam that tampered with gift cards, scanned the bar code and stole money from the gift card as money was loaded on them. Victims are completely unaware it is happening, and the money is often siphoned to an offshore account within seconds. Their investigation revealed that the operation spanned across California and several regions nationwide," a press release stated.

After the tampered gift cards were returned to shelves, unsuspecting shoppers would then purchase one of the cards and load funds onto it. The money, however, would immediately transfer to a bank account, in this case likely a Chinese bank account, Gandhi said.

The office said it has never seen such a crime before, and that Sun is likely a part of a larger gift card operation. The sheriff's office is asking the public to come forward with any tips on the case. foxbusiness.com


Retail's Digital Revolution is Here to Stay
Innovation Scrimmage for the Next Retail Generation

By Tony D'Onofrio, President, Sensormatic

Are we becoming more physical stores or online digital shopper consumers? Prior to the pandemic, a topic that was popular in general media was the "retail apocalypse". This Armageddon industry ending realization was being driven by rising retail bankruptcies and store closures.

The opposite force was the rise of digital commerce. Back in the year 2000, less than 1% of USA retail sales came from ecommerce. Fast forward to 2018 and it reached nearly 10% and by 2027 it is projected to reach 20.4% of total retail sales.

The digital revolution of the retail industry is here to stay. For the first half of 2023, according to Morning Consult, these are the reasons for shopping online versus instore.

Above chart is important as it points to the drivers of the digital versus physical instore model. This is a general view across the shopping population. As I pointed out in a previous article, leading retailers have realized the digital and physical are blending into phygital strategies. It's no longer one versus the other, but the growing intentional strategy to combine the business models to drive higher consumer engagement across channels.

Just as interesting, if not more important, are technology adoption trends for the younger consumers and the innovation they would to see introduced into shopping journeys. As a new research study from Tata Consultancy Services pointed out, "consumers of all ages want new technologies, based on their preferences, to enhance their shopping experiences, instore and online, today and in the future."

Read the full article here


Major Reversal for Starbucks After 2 Years of Fighting
Starbucks says it's now committed to reaching a deal with workers union

Starbucks wrote a letter to the union saying it hopes to have a contract with unionized workers next year.

Starbucks said Friday it's committed to bargaining with its unionized workers and reaching labor agreements next year, a major reversal for the coffee chain after two years fighting the unionization of its U.S. stores.

In a letter to Lynne Fox, the president of the Workers United union, Starbucks Chief Partner Officer Sara Kelly said the current bargaining impasse between the two sides "should not be acceptable to either of us." Kelly asked to restart bargaining in January.

"We will set as an ambition and hopeful goal the completion of bargaining and the ratification of contracts in 2024," Kelly wrote in the letter. In a statement distributed by Workers United, Fox said she is reviewing the letter and will respond.

"We've never said no to meeting with Starbucks. Anything that moves bargaining forward in a positive way is most welcome," Fox said. Workers United said the last bargaining session between the two sides was May 23. businessinsider.com


New Gun Code for Firearm Retailers
But credit card networks are dragging their feet

Lawmakers call for action on gun code

Sen. Elizabeth Warren & 48 other congressional Democrats called on card networks to provide answers to a dozen questions related to the gun merchant category code.

Sen. Elizabeth Warren (D-Mass.) and 48 other congressional Democrats sent letters to the CEOs of the four biggest card networks Wednesday, demanding answers on their delayed implementation of a new gun merchant category code.

Legislators expressed "disappointment" that Visa, Mastercard, American Express and Discover Financial Services have paused their work to implement the unique gun merchant category code that would apply to firearm retailers.

"We request that you resume this work and quickly implement the new firearm retailer MCC," the lawmakers wrote. They also called on the card companies to provide answers to a dozen questions related to the code by Jan. 12. paymentsdive.com


NRF: U.S. economy on track to end year on high note

Swarovski opens largest-ever store in NYC


Last week's #1 article --

Anti-Theft Lockups Having Unintended Consequences?
Does Locking Up Everything At The Store Actually Prevent Shoplifting?
Target isn't the only retailer shouldering the effects of shoplifting. Walmart, R.E.I, and Whole Foods have reportedly had to shutter locations due to increases in theft, which many say is in part caused by websites like Amazon and Facebook Marketplace providing an easy way for shoplifters to resell stolen goods.

Some stores increase prices on items in order to cancel out the losses they might experience due to theft. Other stores lock up items, which leads to another loss of sorts: a pleasant shopping experience and customer loyalty. Ironically, raising prices to counteract losses actually can encourage more thefts than it stops. And locking items can alienate customers, since you're made to feel like a criminal before you even load up your cart. It can also lead many consumers to shop online instead, with a survey stating that 89% of Gen Z and 77% of millennials say that loss-prevention methods used by stores would make them less likely to shop at a store.

Plus, these measures will hardly stop a thief from stealing an item once they have it in their hands. It's also unfair to expect low-paid employees to confront shoplifters without proper training (a task I personally can confirm is way above the pay grade). delish.com

2024 Cybersecurity Predictions From Subject Matter Experts
Ransomware in 2024: Anticipated impact, targets, and landscape shift

Here is what we can expect the ransomware landscape to look like in 2024.

In 2024, we'll see more mass exploitations of vulnerabilities

As a result of the pandemic, organizations moved many of their departments and processes online, introducing rapid and heavy digital transformation without putting proper cybersecurity protocols in place.

As a result, attack surfaces - most prominently in manufacturing, healthcare, and education - doubled and tripled in size, which appealed to ransomware groups. Until regulated industries can appropriately secure their assets, ransomware groups will continue to target the and carry off confidential information.

Ransomware groups, old and new

We can, unfortunately, expect an increased likelihood of organizations experiencing a ransomware attack. Ransomware groups are motivated, want "market share" and will capitalize on untapped business sectors to attain it. Ransomware is a profitable microcosm, and we can expect to see it grow as a startup ecosystem, with more groups acting as unicorns, disruptors, and newcomers.

Ransomware groups and their impact

AlphaV and LockBit will continue to compete for the top ransomware group spot. They'll continue to attract more affiliates based on their reputation, and have more attacks up their sleeve. Cl0p, on the other hand, is a hit-and-run group - it will likely strike only once or twice in 2024, but the victims will be in the hundreds.

Ransomware targets in 2024

Organizations will continue to pay ransoms even if they have system backups, they may take days or weeks to be restored. Because organizations can perceive law enforcement support as lacking, and ransoms are often small, organizations will continue to pay them. In some cases, though, paying the ransom may lead to bankruptcy. Organizations in the US will continue to be the most popular targets of ransomware gangs. helpnetsecurity.com


'Nearly All' Computers At Risk
LogoFAIL vulnerabilities impact vast majority of devices

Nearly all commercially available computers are vulnerable to a flaw in the process used to display a logo upon start-up.

A set of major vulnerabilities that impact nearly all devices allows hackers to bypass most modern security checks through the logo that shows up when the computer starts.

Discovered by the cybersecurity firm Binarly and presented at Black Hat Europe on Wednesday, LogoFAIL is a set of vulnerabilities that impact all x86 and ARM-based devices, like Windows and Linux, through the software that shows the manufacturer logo at the start of a bootup process.

LogoFAIL impacts some of the biggest companies, likely affecting some 95 percent of consumer devices on the market today, said Alex Matrosov, CEO at Binarly. The vulnerabilities impact the biggest vendors that make the BIOS startup software - AMI, Insyde Software and Phoenix Technologies - and consequently impact the hundreds of both consumer and enterprise-level machines like Lenovo, Intel, and Acer that use that software.

"These three companies [AMI, Insyde Software, and Phoenix Technologies] serve 95 percent of all compute in the world. So basically, if you pick any device, most likely it's been impacted by LogoFAIL," Matrosov said. cyberscoop.com


'Good Enough' is Not Good Enough
Challenging the 'good enough' cybersecurity mindset

While the volume of cyber threats keeps growing, security experts struggle to navigate the perception that existing resources are enough to defend their organization.

As the digital footprint of businesses expands, so does their cybersecurity risk. Even though this increases potential threats, CISOs are still battling the attitude that whatever walls they've already put in place are good enough.

That's what CompTIA found in its overview of the state of cybersecurity. In it, nearly 2 in 5 respondents cited a widely held belief that the perception that security is "good enough" is a challenge to their cybersecurity initiatives.

It tied with the cybersecurity skills gap among internal employees in top challenges overall.

"Most companies now recognize this notion of 'good enough' is oversimplified, but they don't have a lot of practice figuring out what should replace it," said Seth Robinson, VP for industry research at CompTIA, and author of the report.

Part of this problem is a historic attitude that cybersecurity is part of the general IT team's job. cybersecuritydive.com


ICANN Launches Service to Help With WHOIS Lookups
More than five years after domain name registrars started redacting personal data from all public domain registration records, the non-profit organization overseeing the domain industry has introduced a centralized online service designed to make it easier for researchers, law enforcement and others to request the information directly from registrars.

Regardless of whether the RDRS succeeds or fails, there is another European law that takes effect in 2024 which is likely to place additional pressure on registrars to respond to legitimate WHOIS data requests. The new Network and Information Security Directive (NIS2), which EU member states have until October 2024 to implement, requires registrars to keep much more accurate WHOIS records, and to respond within as little as 24 hours to WHOIS data requests tied everything from phishing, malware and spam to copyright and brand enforcement. krebsonsecurity.com
 

Municipalities Face a Constant Battle as Ransomware Snowballs

'HeadCrab' Malware Variants Commandeer Thousands of Servers