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December 19, 2011 SUBSCRIBE

Our Mission--To Educate, Inform, and Instill a Sense of Community
            The LP industry's interactive daily e-mail column where YOU can make postings

Bi-Lo and Winn-Dixie to merge and create a 690 store grocery chain BI-LO will acquire all of the outstanding shares of Winn-Dixie stock in the merger. "With no overlap in our markets, the combined company will have a perfect geographic fit that will create a stronger platform from which to provide our customers great products at a great value, while continuing to offer exceptional service," stated BI-LO chairman Randall Onstead. Following the completion of the merger in 60 to 120 days, Winn-Dixie will become a privately-held, wholly owned subsidiary of BI-LO. (Source retailingtoday.com)

Attention, shoppers: We're watching you Brick-and-mortar stores have long wanted to track consumers the way online merchants do and are starting to figure out how. For years, retailers have deployed security cameras, largely to deter and catch shoplifters. Now some are using the cameras to watch how shoppers behave. Two years ago, T-Mobile USA Inc. asked 3VR Inc. if its security cameras could count people entering its stores, 3VR CEO Al Shipp said. T-Mobile now uses 3VR technology to track how people move around, how long they stand in front of displays and which phones they pick up and for how long. This article is making the rounds in papers across the nation. (Source delawareonline.com)

Stores seek harsher penalties for 'flash robberies' Police say the size and speed of the robbery crews make the crimes difficult to combat. Now, retail organizations and legislators in Maryland are pushing to increase penalties for flash robbers. Social media may not be playing a huge role in organizing most mass thefts in the country. D.C. police, who have also had to deal with some thefts labeled as flash mob robberies, said they have no evidence that social media was used in any recent group crimes, spokeswoman Gwendolyn Crump said. Whether criminals use social media or not, retailers and legislators are looking for harsher penalties for flash robbers. Delegate Jeff Waldstreicher, D-Montgomery, plans to introduce a bill during next year's General Assembly that would charge each member of a flash rob crew with stealing the total value of all the merchandise stolen by the group, rather than what each personally took. (Source mcclatchydc.com)

NYPD Cracks Down On Sales Of Stolen iPads And iPhones Undercover officers are taking aim at the high-tech black market, and the NYPD says its city-wide sting operation has netted 141 arrests. (Source wordpress.com)

Armed robber steals $61,000 from armored car at Toys R US in Ohio Friday According to reports, the Garda security guard entered the secure cash room of Toys R Us to make a cash pick up. As the security guard exited the secure door of the cash room an unknown male black suspect shoved a handgun in his face, ordered him to his knees, grabbed the blue Garda cash bag, and walked out the front door of the store. The manager of the Toys R Us says the suspect took off with $61,000 and $8,000 in checks. The suspect remains at large. (Source fox19.com)

54.6% of web merchants plan to expand their e-commerce staffs next year, according to research contained in Internet Retailerís new 2012 Complete Guide to E-Commerce Technology. With this growth and obvious increased exposure to company data, how is loss prevention positioned to lower risk and screen this critical employee population? As most studies show it's the internal threat that offers the most exposure to company data. (Source internetretailer.com)

Apple's Future for Growth: It's All About China With 245 retail stores in the U.S. and 112 internationally. Apple currently has two stores each in Shanghai and Beijing and one in Hong Kong. It has plans to open one more store in Shanghai, two in Hong Kong and dozens more in mainland China over the next year and it now drives $8.8B in sales in merely the first three quarters of 2011 which represents 11% of the Apple's total retail sales. And that will grow. Interesting article on the dynamics of China. (Source gurufocus.com)

Amazon's "bare-knuckles approach" to competition by offering consumers $5 to steal pricing info. America's largest online retailer recently handed out 5% discounts, up to $5, to any shopper willing to steal pricing information. Amazon asked consumers to go into stores, with no intention of actually buying anything, and scan bar codes into their cellphones. It's not exactly the ol' five-finger discount, but then all you have to sneak out of the store is information. Then you simply fence it to Amazon. It may even be illegal. (Source nasdaq.com)

Shoplifting is on the rise in the mid-Hudson, N.Y. region Shoplifting has jumped 59% over the last half-decade from 2006 to 2010. And even more are taking a five-finger discount this year, according to a check of police departments which cover the biggest shopping areas in the mid-Hudson, NY area. Most of the reports come from towns with large malls or shopping areas ó the towns of Wallkill, Woodbury, Newburgh and Monroe in Orange County, and the Town of Ulster in Ulster County. That is according to statistics from the state Division of Criminal Justice Services. (Source recordonline.com)

Breach Response: The Legal View Fast Action Can Save Reputation and Ensure Compliance. Complying with a multitude of regional and international laws when consumers' personal information is compromised is critical. And depending on the size and reach of the organization breached, that could mean complying with dozens of mandates and regulations in various parts of the country and world. (Source govinfosecurity.com)

Stop SOPA! a Plea From the Inventors of the Internet An open letter to Congress written by luminaries of the Internet, such as Vint Cerf--co-designer of TCP/IP, and Robert W. Taylor--founder of ARPAnet among others, implores Congress to back off and squash both SOPA, and its sibling PIPA legislation. (Source csoonline.com)


Security Metrics: Critical Issues Numbers are the language of business. Fortunately, security metrics are growing ever more sophisticated. Knowing what to measure, how to measure it and how to communicate those metrics can help improve security's efficiency, effectiveness and standing in the business world. While this article is primarily focused on IT Security the applicability is there and worth reading. (Source csoonline.com)

Bad Santa! Two not-so-jolly men dressed in full Santa Claus gear slugged it out in a pub in North Vancouver, British Columbia, this weekend. One of the St. Nicks was taken to the hospital with minor injuries, but neither will be criminally charged, according to police. (Source nypost.com)

 

In case you missed it last week's most popular news article --

Shoplifter at Fred Meyer in Longview, Washington, chopped off the ear of a loss prevention associate when they went to apprehend him.  The suspect got away and has been identified by police. The suspect was later apprehended by police as reported in the Daily on December 15th.   (Source seattlepi.com)

 

NRF is hosting an LP Emerging Technologies Workshop on Tuesday, January 17th from 9 am - 1:15 pm. The workshop will provide educational presentations and several roundtable discussions on these technologies including mobile POS, touchless pay and e-receipts. While these technologies may facilitate and drive sales, there are significant implications on sales, returns management, data security and more that cause concern for loss prevention and security executives. Attendees will discuss how to translate the LP vulnerabilities into "tech talk" and the need to have LP at the table when considering implementing these new technologies.

Kaspersky is the sponsor of the event and is offering it free to retail LP/IT executives with decision making responsibilities or LP/IT professionals integrally involved in rolling out these technologies. Click here to register.




 

 


 






FRIDAY FOCUS
Doug Marker
Vice President
LP, Risk and Audit
Michael Stores, Inc.

Stephen O'Keefe
Vice-President
Loss Prevention and
Risk Management
Wal-Mart Canada


Coming in December

Kelly Gorman
Vice President LP
PETCO

LP Program Spotlight
eBay's PROACT Team



X

 

Richard C. Hollinger, PhD

REQUEST REPORT


 


Know about an event we should feature here?
Let us know.




NRF
101st Annual
Convention & EXPO
Jan. 15 - 18, 2012
Details

NRF
2011 ORC Survey

Executive Summary
Full Report 

NRF
Effective Crowd Management Guidelines

Education Awareness on Personal Safety
Full Report

Return Fraud Survey
Full Report





Watch for our article the day after each event!
 


Los Angeles Area
ORC Association

x
3rd Annual
One-day
2012 Conference


February 16, 2012
LA Convention Center
 



2012
Asset Protection Conference


March 11-14, 2012
Hyatt Regency
New Orleans, LA


 


























 

























 






























 




 










































































































































 

 

eBay Investigators Continue to Support Motor Scam Case

eBay Global Asset Protection investigators continued active support of investigation and disruption efforts in motor scam leads to additional arrests. Federal authorities unsealed a criminal indictment charging 16 people with wire fraud, conspiracy to commit wire fraud and conspiracy to launder monetary instruments. Court documents say the suspects offered the items for cheap prices and claimed the items had to go fast because of unemployment, military deployment, or family emergencies. The U.S. Attorney's Office says to gain the confidence of interested buyers, the defendants told them their money would be held securely in escrow and purchases would be completed through sites like eBay, and Yahoo! Finance. Federal authorities say the entire operation was a sham and buyers often paid for items that were never delivered. The 16 defendants allegedly split more than three million dollars. Click here for full article.

For further information on PROACT email inquiries to; ies to; PROACT@eBay.com

eBay Direct - Click Here  -  (notify - info - questions)



 

Organized Retail Crime is increasing in the Washington DC area according to Lt. Tony Matos, who leads the Fairfax County anti-retail theft unit. "Store-security experts say organized retail crime -- like the recent Tysons cases -- is becoming increasingly common, especially in metropolitan centers like the Washington region, and is concerning because thieves can make off quickly with large amounts of goods. These are groups of individuals who come across the eastern seaboard," said Lt. Tony Matos, who leads a Fairfax County anti-retail theft unit. Such cases are becoming more common at Tysons, he said, because it's known as an affluent area. Organized rings target the Interstate 95 corridor because it's easy to steal goods, then sell or fraudulently return them in another area, said Barbara Staib, spokeswoman for the National Association for Shoplifting Prevention. (Source washingtonexaminer.com)
 

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
Share your ORC news and help the industry grow


 


 


Job Opening


Company


Location


Origination

Manager, Business Continuity Winn-Dixie Jacksonville, FL Winn-Dixie

Corp LPM of Analytics & Exception Reporting

Confidential

Florida

Downing & Downing

Director of Loss Prevention

Confidential

Midwest

Downing & Downing

National Account Sales Mgr

Confidential

Chicago, IL

Downing & Downing

Asset Protection Manager

The Home Depot

Phoenix, AZ

The Home Depot

Asset Protection Manager The Home Depot Metro Northern NJ The Home Depot
Asset Protection Manager The Home Depot Sacramento, CA The Home Depot
Asset Protection Manager The Home Depot Salem, OR The Home Depot
Regional LP Director Confidential Los Angeles, CA Downing & Downing

 

Today's Daily Job Postings from the Net - Appearing Today Only
 

Job Opening

Company

Location

Origination

Store LP and Safety Mgr

Lowe's

Monroeville, PA

Lowe's

District LP Mgr

HomeGoods

Nashville, TN

The TJX Companies, Inc.

District LP Mgr

HomeGoods

Phoenix, AZ

The TJX Companies, Inc.

Regional LP Mgr

AutoZone

Milwaukee, WI

CareerBuilder

Loss Prevention Mgr

Macy's

Dublin, OH

Macy's

Loss Prevention Mgr

Kmart

Prattville, AL

Sears Holdings Corp.

Asset Protection Mgr

Sam's G2

Owings Mills, MD

Walmart

Area Manager- AP

Walmart

Brookhaven, MS

Walmart

Asset Protection Mgr

Walmart

Murfreesboro, TN

Walmart

Market AP Mgr

Walmart

Las Vegas, NV

Walmart

Asset Protection Mgr

Home Depot

Hampton, VA

Home Depot

 

Thought Challenge Month in Review Today we are posting one more Thought Challenge, as it appeared, in a countdown to our Awards Committee's selection of the "Top 3". Read well and make sure you vote on the last day!
 

Return Fraud May not Cause Shrink

Submitted by Mark McClain, CFI
Director, Investigations AP - Walmart

November 17, 2011

Store returns where the merchandise was obtained fraudulently is an issue and even a crime in most states that we should all be concerned about. However, there is some clarity that should be made before we jump off the deep end regarding the issue. Donít confuse the two.

Let's start by stating that fraud is generally defined as some form of deceptive practice. A return occurs when a customer brings in an item to a retailer that for some reason or the other they are not satisfied with. Put the two together and we are essentially saying that the merchandise that is being returned is happening with some form of deception occurring. The challenge is really determining if a loss is occurring as a result of the return of another prior act.

Consider the following scenarios:

1.

Subject steals a $1000 TV from store A and returns it to store B and receives $1000 in cash or on a gift card.

2.

Subject purchases a $1000 TV from store A with a stolen or fraudulently obtained credit card and returns the TV to store B and receives $1000 in cash or on a gift card.

3.

Subject purchases a $1000 TV from store A with a stolen or fraudulently obtained check and returns the TV to store B and receives $1000 in cash or on a gift card.

4.

Subject creates a counterfeit receipt listing a $1000 TV, selects the TV and then exits store A showing the receipt upon exit and then brings the receipt to store B with the TV and returns it and receives $1000 in cash or on a gift card.

5.

Cashier/Employee at store A conducts a refund transaction on a $1000 TV that was never purchased while no other employees are around. Employee then takes either cash or gift card.

6. 

Subject returns merchandise to store A that was never stolen, but may contain a different product or object like a brick or other misc. objects other than the real product.


Now there may be more examples, but as you read through the above, consider the following questions:

Is there a loss at store A?

Is there a loss at store B?

What is the total loss?

Is the loss a shrink issue or a profit issue? Or Both?


Scenario explanations and answers:

1.

Theft and thus the loss took place at store A. When the merchandise was returned to store B an exchange took place of the merchandise for cash at retail, thus, no loss. Yes, there is a potential loss of sales tax and margin that could be realized since store B just paid retail plus tax for the new inventory. Additionally, if the merchandise cannot be returned to the shelf then you may have a second loss of $1000, but not for many cases.

2.

& 3. These two scenarios really depend on if store A receives a chargeback or return of the checks. If so, then the loss occurs at store A. If no, then no loss at store A. or at store B, except as previously stated for scenario 1 with regard to sales tax, margin, or potential markdowns.

4.

Same as scenario 1.

5.

Since only store A is involved in this scenario, clearly the loss occurs there, but only for the amount of the return. Inventory will show one more TV than the store actually has on-hand and thus shrinkage at inventory time of $1000.

6. 

Same as scenario 5.


Many retailers that I have spoken with do not always see my interpretations in the same light. They fear conducting the return indicating they do not wish to lose twice the amount of money. With the above explanations, hopefully one would agree that this is not always the case. Additionally, when surveys or discussions are held about the causes of shrink, many may report inaccurately what these causes are. Return Fraud is not a cause of shrink. Not a major cause, anyway. Again, in scenario 5 & 6, these could be classified as return fraud that would cause shrink. However, the others may be better classified as;

1.

Theft

2.

Credit Card Fraud

3.

Check Fraud

4.

Theft


Return fraud can cause shrink, but does it contribute significantly and are we all classifying it correctly to begin with? A number of reports or case management systems seem to try and capture the refund as the reason or cause of the loss. In a lot of cases, wouldn't it be better to say that the refund is the actual "fencing" of the product that was already stolen or fraudulently obtained? In essence, we are the fence that converted the merchandise to cash. As for conducting the return or refusing it, consider that at times, providing a gift card can be instrumental in obtaining additional evidence as the investigation unfolds.

The intention of this article is really to cause us all to consider just how we report what we report and if we really understand the numbers and what makes them. Are we looking at crimes or causes of loss?


Have a happy holiday!
Mark

 


MY TOP 3 VIDEO PICKS!

Looking for some great ideas for your 2012 video surveillance budget?

By Jim Rao, Director of Video Technology for the National Accounts Division of Vector Security, Inc.


1. ENHANCED PUBLIC VIEW MONITORS

Public View Monitors (PVMs) have been around for a long time and have become a highly recognized loss prevention source; but keeping them "highly recognized" by prospective shoplifters is the key to their success. Just like retail displays, PVMs must capture customersí attention, and thatís exactly what separates some new lines of PVMs from the old standards. Their new thinner cabinet and cabinets with front glass panel resemble an "iPad" look and some even feature an SD media card for displaying both PDF messages as well as full motionactivated video clips with audio. An onboard motion sensor can trigger "welcome" or "recording in progress" scrolling banners, and an input to switch cameras from the internal PVM camera to an external camera source allows higher flexibility. Lastly, the variety of sizes allows these to be used in an array of store areas such as front entrances or high-loss inventory aisles.

2. LOSS PREVENTION CASE MANAGEMENT & VIDEO ANALYTICS NOW AVAILABLE ON POPULAR DVRS

Newest software editions take case management and video analytics services to new levels. When video analytics first appeared on the market, I was skeptical whether the services would work optimally for retail. But today, I am confident that video engineers are working on improving these products and paying strict attention to the selective needs of retailers. Now they have responded with new technologies. For retailers, the immediate benefit of video analytics has been focused on improved case management, and new software enhancements dramatically improve that function. They enable users to easily view, monitor and manage their entire enterprise from a single user interface. The new products support either analog or IP cameras and you can now view up to 32 channels of video per monitor. Additionally, software upgrades include improved customer counting, advanced object tracking, better customer tracking analysis, dwell and loitering notification and queue line analysis.

3. NEW CAMERAS "FOCUS IN" ON EASY, ONE-STEP ADJUSTING

New lines of cameras allow you to concentrate your focus on loss prevention instead of constantly re-focusing your IP cameras. Manufacturers have developed these cameras with the ability to manage and program all focus-oriented settings from a laptop, instead of at each separate camera location. This feature is not only a time-saver, but allows the camera to re-focus itself anytime it goes out of focus for a variety of reasons. And since IP cameras require a higher concentration of light to operate optimally, their P Iris feature helps ensure the camera is continually supplied with the highest available level of light.



 

Share Your Thoughts

Anthony Williams was promoted to Regional Asset Protection Manager for Walmart.
Joseph Throneberry was named
District Asset Protection Manager for Home Depot.
Monica Espinoza was named Loss Prevention Manager for Abercrombie & Fitch.

Post Your New Job or Promotion! Click Here


 

"I'm a Leader, Not a Manager!" Management vs. leadership - It's a distinction we all hear over and over these days. It says management focuses on getting work done on time, on budget, and on target, while leadership focuses on change and innovation. Both leadership and management are crucial, and it doesn't help those responsible for the work of others to romanticize one and devalue the other.   (Are you a leader or a manager?)

This One Leadership Quality Will Make or Break You
One of the most often overlooked aspects of leadership is the need for pursuit. Great leaders are never satisfied with traditional practice, static thinking, conventional wisdom, or common performance. In fact, the best leaders are simply uncomfortable with anything that embraces the status quo.   (Get your degree in the science of pursuitology)

Last week's most popular articles --

68 Great Ideas for Running a Security Department Looking for inspiration? Want to learn a few new ways to elevate your security game? Can you spare five minutes to think strategically and long-term instead of just putting out another fire? Then look no further. With this article, learn how to supercharge your team, deliver more business value, identify better metrics, and so much more. You may have to register with CSO but this is definitely worth the time and a GREAT read!   (68 Great Ideas)

Nine Things Successful People Do Differently Have you noticed yourself being successful with some of your goals but not others? If you don't know why this happens, you are not alone in your confusion. Research suggests that successful people reach their goals not because of who they are but because of what they do.   (You can be successful too!)
 

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We've all got great ideas and plans. The problem lies in putting them together, rolling them out and maximizing speed to market. Making it happen quickly and efficiently - that's the key to success. The first obstacle is always fear of risk. Making an idea a reality requires risk taking and sometimes you've just got to make it happen if your inner self, or the bird on your shoulder, tells you it's the right thing to do. I was writing this e-newsletter for a year before one morning last year, on March 25, I walked in and just said hey we're doing it. Yes, I was absolutely fearful of all the critics and naysayers, but I took the risk and made it happen. There will always be torpedoes in the water and sometimes they hit. But to make things happen you've got to jump in the water and swim as fast as you can.

Just a thought,
Gus Downing



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