Legislation & Enforcement Should Be Top Priorities in Fighting ORC
Lax policies, such as reducing theft from a potential felony to a misdemeanor and no-bail policies for nonviolent crime, have contributed to a nationwide shoplifting epidemic.

Retail Theft in the U.S.: It's a Crime
Retail theft costs retailers more than $110 billion a year, according to the National Retail Federation (NRF). A recent study by Zebra Technologies, a retail solutions provider, found that eight in 10 retailers agree minimizing fraud and shrink is a significant challenge. And in the Convenience Store News 2023 Technology Study, nearly half of the c-store retailers surveyed (44%) said they planned to invest in technology to reduce theft and shrinkage.

We're all aware of the closings announced by such major retailers as Target, Whole Foods, Walmart, Walgreens and others, often in neighborhoods that could least afford to lose a food store, creating food deserts where people have limited access to healthy and affordable food.

It's gotten so bad in the city of Chicago that the mayor has proposed a city-owned grocery store to fill the void left by retreating retailers. The idea has little merit, though. While a government-run store could probably sustain the inevitable losses longer than a private firm can, those losses would be borne by all the city's taxpayers.

A better way to address food insecurity is to prevent crime and theft in stores, so they won't have to close. Lax policies, such as reducing theft from a potential felony to a misdemeanor and no-bail policies for nonviolent crime, have contributed to a nationwide shoplifting epidemic. In the absence of a nationwide policy on how to deal with shoplifting, many retailers encourage their staffers to do nothing at all in an effort to keep them safe.

Chicago and other major cities would be better served if they'd support legislation and enforcement of anti-shoplifting laws and protections for retailers to allow them to prosecute thieves effectively and safely.

A month ago, more than 30 retailers went to the nation's capital to support the Combating Organized Retail Crime Act of 2023. Joined by several congressional leaders from both major parties and the NRF, the retailers are backing bipartisan legislation to establish a national coordination center and combine expertise and resources from federal, state and local enforcement agencies and retail industry representatives to curb organized retail crime.

C-stores, of course, are not immune from the shoplifting epidemic. They should back this legislation as a first step to stemming the flood of losses they incur from thieves. csnews.com


Hundreds of Stores Roll Out AI to Fight Theft
To catch a shoplifter: Businesses turn to AI to stop retail theft
"An eye of a person cannot look at 16 cameras at once," KJ Singh, owner of JJ Liquors in Northeast D.C., said.

Human eyes might not be able to, but he's counting on something else that could. Singh recently added a new level of high-tech security - artificial intelligence software developed by French company Veesion that plugs right into his 16 cameras.

The program looks for suspicious body activity from shoppers and records in real time, Veesion Sales Manager Pablo Blanco Poveda said.

"You have the proof. So, when you go to stop someone, you are not going to do like, 'Open your bag.' No. You have proof; you show the video," Poveda said.

According to Veesion, more than 350 stores in the U.S. are using the system. More than 30 are here in D.C., mostly smaller retailers. But larger retailers also are beginning to incorporate AI to nab shoplifters.

"These are some really effective tools that can layer in on top of existing camera systems, existing camera technologies," explained Khris Hamlin, with the Retail Industry Leaders Association, a trade association for major retail giants like Macy's Target and Walmart.

While technology offers one layer of deterrent, it's not enough, Hamlin said. Recently, the association launched the first of its kind national partnership to combat retail crime, bringing together leading retailers, law enforcement and district attorneys' offices. nbcwashington.com


'Retail Workers Are Scared'
Target and Walmart have a bigger problem than retail theft

While consumers hear a lot about shoplifting, they don't know the uglier side of the problem that's impacting Target, Walmart, Kroger, and other big retailers.

As theft has increased from retailers including Walmart, Target, Kroger, and nearly every other big name, it's checkout clerks and other front-of-store employees that play a key role in preventing theft. That's a dangerous position to be in and workers are afraid, according to a new report from Motorola Solutions.

Retail workers are scared

"Retail workers are scared. Retail workers and managers perceive safety incidents at their stores are on the rise," according to Motorola Solutions first-ever Retail Worker Safety Report.

The survey's U.S. respondents reported that petty theft (54%), grab-and-run incidents (35%), and hostile customer interactions (31%) have increased in their stores over the past year. As a result, nearly two out of three are at least somewhat concerned for their personal safety at work heading into the holiday shopping season.

"The holiday bustle can be a stressful time for retailers. Sales associates and managers shouldn't have to be concerned about their safety on top of everything else," Motorola Solutions Vice President Sharon Hong in a media statement. "Our report found that retail workers are looking for more technology that can help them be better aware of safety threats, spot illicit activity and communicate quickly and seamlessly with other employees and first responders should an incident arise."

Retail workers want better tech

While many retailers have heavily invested in technology, those investments have not been around worker safety. Self-checkout has also increased danger for store employees because it's much harder to know when someone is willfully stealing and when someone has made a mistake compared to a person who shoplifts by sticking an expensive item under their shirt.

The report found that low-tech solutions are still in use during many store emergency situations. thestreet.com


Sounds Promising - But Stats Can Be Used for Both Sides

San Francisco Mayor London Breed's Newsletter to the City
Delivering Results in Public Safety

SFPD's coordinated efforts across San Francisco to combat retail theft and car break-ins continue to deliver strong results in decreasing auto theft and larceny. Because of our targeted efforts, the results are becoming clear.

• Our expanded law enforcement efforts against auto burglaries have resulted in a dramatic 50% reduction in these crimes over the last three months.

• Larceny thefts over Black Friday weekend were down 75% from last year. Another study found retail theft dropped 32% in the first six months of this year. This doesn't just happen. It's the result of hard work by our officers and prosecutors.

• Just last week, Ingleside Station arrested four shoplifting suspects related to incidents along Geneva Ave., Monterey Blvd., and Diamond Heights Blvd.

I am committed, along with the Police Chief and District Attorney, to continue utilizing these strategies to ensure shoppers and business owners feel safe this holiday season and year-round.

Updates on Open-Air Drug Markets and Healthy Streets
Since the City first stood up its coordinated drug market operation in May this year, SFPD officers have arrested more than 900 dealers in the Tenderloin, nearly doubling the number of arrests from last year.

In the last six months, both local and state law enforcement agencies combined have also seized 113 kilos of narcotics, including over 60 kilos of fentanyl. These numbers don't include additional federal efforts by the Drug Enforcement Agency.

I know there is so much more work to do, but our multi-agency effort continues to aggressively target the open-air drug markets impacting our Tenderloin and SoMa neighborhoods.


Lawmaker Urges Use Of Coordination Centers To Crack Down On Retail Crime

Podcast: Is shoplifting getting worse in the U.S.?

New King County, Wash. division tackles growing rates of retail theft crimes

Sioux Falls, SD retailers seeing theft hit close to home

Self-Checkout's Rocky Road Continues - But It's Not Going Anywhere
Love it or hate it, self-checkout is here to stay. But it's going through a reckoning
In 2021, self-checkout usage represented 30% of transactions, almost double from 2018, according to a survey of retailers by FMI, an industry group. And 96% of retailers surveyed offer self-checkout. But the technology is also facing a reckoning amid the critical holiday shopping season. Some retailers are adding restrictions, while others are pulling out completely.

Self-checkout, first tested in supermarkets in the late 1980s, gained momentum 20 years ago. But grocers ramped it up even more three years ago to address the pandemic-induced severe labor shortages.

The Bureau of Labor Statistics says technological advances such as self-checkout and online sales have been the main driver in the declining number of cashier jobs, although there are no precise estimates on how many cashiers have been replaced by self-checkout. According to Labor Department data, there are about 1.2 million people currently working as cashiers, compared to 1.4 million in 2019 and the BLS expects the number to fall by another 10% over the next decade.

Theft is indeed an issue. Andrews said a technology that relies on shoppers to do their own scanning and punch in product quantities tempts even law abiding citizens to be dishonest.

Still, self-checkout isn't going away, especially with still stubborn labor shortages. And plenty of people love it.

There have been inroads for more advanced technology. Amazon's "just walkout technology " is in more than 70 Amazon-owned stores and more than 100 third-party retailers across the U.S., including airports. It uses sophisticated cameras and allows shoppers to enter the store with a credit or debit card or by simply hovering their palm over an Amazon One palm payment device, and then walk out without having to stand in line to check out.  apnews.com


Here We Go Again - Listening to That Slow Drip
Will Macy's follow Sears to the retail graveyard?
The iconic department store could thrive as a smaller, more focused retailer, but a potential buyout would make a transformation unlikely, analysts say.

If Macy's is fielding an offer from investors who want to monetize its property, then any transformation that incoming CEO Tony Spring may be plotting is about to get more difficult.

Theoretically, going private could provide Macy's with some breathing room to undertake reforms without pressure from often short term-oriented investors, according to Jessica Ramírez, a senior research analyst with Jane Hali & Associates. This is what Nordstrom executives (many of them also family members) probably had in mind when they attempted to take the business private several years ago.

As of January, the company owns 316 stores, another 102 where it owns the buildings but not the land, and four that are part-owned, according to its most recent annual report. All owned properties are held free and clear of mortgages, per that report, which means the company owns more than 58% of its 722 store locations. Various analysts peg the value of Macy's real estate at $5 billion to $7 billion, with its Herald Square flagship in New York possibly able to fetch over $1 billion.

In recent years, Macy's sold its San Francisco men's store for $250 million, its Minneapolis flagship for $59 million, a portion of its Chicago Loop flagship for $27 million and its Pittsburgh flagship for $15 million. retaildive.com

Editor's Note: Bottom line is that if the current investors win, it may be only a matter of time before they're gone. Just my thought. -Gus Downing


Ex-LinkedIn Exec Faces Up to 20 Years in Prison Over Mail Fraud Scheme
Former Linkedin Employee Pleads Guilty To Conspiracy To Commit Mail Fraud
SAN FRANCISCO - Kent Laird pleaded guilty in federal court today to two counts of conspiracy to commit mail fraud, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The plea was accepted by the Honorable Jaqueline S. Corley, U.S. District Judge.

In pleading guilty, Laird, 50, of Bothell, Washington, admitted that as the Head of Content, Video & Studios for LinkedIn Media Productions (otherwise known as LMP) he became involved in two separate conspiracies and mail fraud schemes involving two independent contractors. Specifically, in June and then in October of 2018, Laird recommended that two independent contractors be hired by LinkedIn to assist him with producing various podcast projects despite knowing that neither person had any professional experience as a podcast producer. Over the course of the next eighteen months, Laird approved a total of 129 false invoices that the independent contractors submitted to LinkedIn. Laird submitted these invoices knowing that the two independent contractors had performed little to no podcast writing and producing work on behalf of LinkedIn. As a result of receiving these false invoices, LinkedIn paid a combined total of $689,210 to the two independent contractors. During the course of the conspiracy, Laird received kickbacks in the amount of $184,050 from the falsely obtained proceeds.
 
Laird faces a maximum sentence of 20 years in prison, a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1349. Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Judge Corley scheduled Laird's sentencing hearing for March 27, 2024.  justice.gov


Creating Facial Biometrics That Mimic Human Eyes
Face biometrics code could be seeing through better eyes
Computer vision vendors and researchers are developing significantly upgraded camera systems on the front end of AI, including biometric recognition software.

Two companies, Orbbec and SiLC separately say they have developed integrated camera-compute components with notably better capabilities that would aid biometrics systems.

Separately, researchers at Purdue University published work on exotic computer vision technology that also would benefit biometric and object recognition algorithms. Indeed, the Purdue team tested their hardware on facial recognition tasks. They call their hardware an organic electrochemical photonic synapse.

The researchers say their advance is designed to mimic how human eyes work, use less energy and be more error tolerant than silicon-based systems on the market.

In more closely following how retinas perceive light, the researchers say, the system improves dynamic imaging with a significant savings on data processing. biometricupdate.com


NRF Survey: 142 Million Shoppers Expected for Super Saturday

Miniso opens 100th US store


Quarterly Results

H&M Group Q4 net sales down 4%, Full Yr. net sales up 6%
 

Senior LP & AP Jobs Market

Associate Dir., Safety & Security Programs job posted for Chewy in Belton, MO
Chewy is seeking an Associate Director, Safety and Security Programs to support the Chewy Fulfillment Core and Corporate teams. This role will lead to the development and deployment of a Global Command Center, Injury Prevention and Ergonomics, Food Safety, and Guardforce programs for Chewy. The successful candidate will be responsible for managing multiple high-level programs supporting the safety and security of the Chewy Fulfillment Core and Corporate teams. careers.chewy.com
 

FBI, CISA, and ASD's ACSC Release Advisory on Play Ransomware

Today, the Federal Bureau of Investigation (FBI), Cybersecurity and Infrastructure Security Agency (CISA), and the Australian Signals Directorate's Australian Cyber Security Centre (ASD's ACSC) released a joint Cybersecurity Advisory (CSA), #StopRansomware: Play Ransomware, to disseminate Play ransomware group's tactics, techniques, and procedures (TTPs) and indicators of compromise (IOCs) identified through FBI investigations as recently as October 2023.

Play ransomware actors employ a double-extortion model, encrypting systems after exfiltrating data and have impacted a wide range of businesses and critical infrastructure organizations in North America, South America, Europe, and Australia.

FBI, CISA, and the ASD's ACSC encourage organizations review and implement the recommendations provided in the joint CSA to reduce the likelihood and impact of Play and other ransomware incidents. For more information, see CISA's #StopRansomware webpage, which includes the updated #StopRansomware Guide. cisa.gov
 

Retailer Hit by Cybersecurity Breach at the Worst Possible Time
Vans owner VF Corp. shares tumble as it says cyberattack could hamper holiday fulfillment

VF Corp. said it suffered a cybersecurity breach. The attack is expected to have a material effect on its business.

Shares of The North Face and Vans owner VF Corp. tumbled Monday after the company reported that a hack had affected its ability to fulfill some orders ahead of the holidays.

The company said hackers encrypted "some" systems and made off with personal data. Those are some hallmarks of ransomware, where attackers try to extort companies in exchange for hefty payment. VF Corp. declined to comment on whether the incident was a ransomware attack.

The stock dropped more than 8% Monday.

VF Corp. announced the incident on the same day that the U.S. Securities and Exchange Commission's new cyber disclosure rules took effect. Those regulations mandate that companies report "material cybersecurity incidents" to their investors within four days of determining that a hack would have an effect on their bottom lines. VF Corp. first identified hackers in its system on Dec. 13, meaning it took relatively little time for the company to identify the threat as material.

The attack is expected to hit the company's operations in the lead up to the critical holiday shopping period. The company said the breach has affected its ability to fulfill orders, but customers will still be able to place them online.

The full scope of the attack is still not known, and it will likely continue to have a material impact until recovery efforts are complete, the company said. cnbc.com


SEC Finalizes Cyber Disclosure Rules
What the SEC weighed in finalizing the cyber disclosure rules

The SEC's head of the corporate finance division said the burden of meeting compliance and fears of tipping off threat groups were carefully considered prior to final recommendations.

The leader of the Securities and Exchange Commission's Division of Corporate Finance downplayed concerns that the agency's new cybersecurity rules will provide a roadmap to threat groups about their attacks or place an undue burden on security executives.

Erik Gerding, director of the Division of Corporate Finance, said staff carefully considered those issues as part of their internal deliberations prior to the final rules being adopted in July.

The final rule requires the disclosure of "material" cybersecurity incidents, which is more narrow than the original proposal. The SEC factored in compliance costs as well as the company's need to respond to and remediate incidents.

But the final rule does not require any specific technical disclosures about how a company will respond to an incident, or details about its system vulnerabilities.

″The Commission thus balanced the need for disclosure with the risk that disclosing specific technical information could provide a road map that threat actors could exploit for future attacks," he said. cybersecuritydive.com


Fraudsters Cook Up Slicker Recipes as More Transactions Move Online
"Fraud is growing and the recipes are getting slicker," Gerhard Oosthuizen, CTO at Entersekt, told PYMNTS. "It is dovetailing nicely with generative AI [artificial intelligence]."

Oosthuizen acknowledged the transformative impact of generative AI, especially in areas like call center support and chatbots. However, he pointed out that while generative AI has proven effective in certain applications, it has simultaneously become a tool for perpetrating fraud.

"Generative AI has shown the way, but I don't think it will be the way in which fraud is prevented - rather, its impact will be felt where fraud is perpetrated via manipulation and social engineering attacks," Oosthuizen said.

"At this stage, the technology has led to more challenges in the fraud space than potential wins," he added.

Besides the use of generative and traditional AI, Oosthuizen listed a range of trends that organizations should keep an eye on going into 2024:

• the ongoing evolution of social engineering tactics;
• the new security frontiers of digital identity initiatives and passwordless authentication;
• the emergence of consortiums and other collaborative ventures aimed at collectively combating fraud; and
• the risks inherent to escalating geopolitical tensions, and the resulting impact of regulatory frameworks. pymnts.com


CISA urges vendors to get rid of default passwords

Microsoft is working on a more secure print system for Windows