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Washington man pleads not guilty to accusations of selling $500k worth of
stolen property on eBay

Harold E. Hedrick, a former manager of Vista Outdoor in Lewiston, is scheduled to have a pre-trial hearing June 18 and go to trial July 5 in Asotin County. He is represented by Clarkston attorney Thomas Ledgerwood.

According to a probable cause affidavit, Clarkston police found nearly $500,000 in items allegedly stolen from Vista Outdoor in Hedrick's shop on the 600 block of Riverview Boulevard. Hedrick retired six months ago as manager of Vista's Centerfire Value Stream department after 39 years with the company. Read more

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

The Value of Industry Conferences – Part I

By Walt Palmer, CFE, CFI
Practice Leader – EPIC Integrated Risk Solutions

Over the past 30 years, I have attended well over 150 professional conferences around the globe and, as a result, I might have just a little insight into the value that can be had from active participation in these events. In fact, a number of years ago, I wrote a series of pieces about maximizing the value of industry conferences that received a lot of attention and comments, so it is time to update the articles and see how well they have weathered the years and to add a few new observations.

One of the exciting developments in the LP/AP industry over the past 18 years has been the explosion of professional development opportunities available to practitioners at every level. We are well past the days when there were only a couple of conferences that were only attended by senior LP executives.

In those days, a District LP Manager could only look to a couple of venues for professional development. If their company held an annual LP meeting, they might have the opportunity to learn some new skills, network with some of their peers from across the organization, and perhaps be exposed to some different lines of thinking. Other than that, one would hope that the company would pay for them to attend a WZ course on interview and interrogation.

But, that was about the limit of opportunities available then. The industry environment looks much different today and there are a multitude of opportunities for LP professionals to advance their skills and improve their effectiveness.

First, there are several excellent conferences put on by major trade groups such as NRF, RILA, RLPSA, and ASIS International. Each of these organizations has a dedicated group of professionals who serve on their advisory boards and help the association plan the conference agenda. Over the past 15 years or so, there have been more and more field staff attending and, as a result, these conferences offer sessions that cover a wide gamut of topics geared towards the spectrum of attendees. While each association may have a slightly different focus, I have never failed to learn new info and gain new perspective from these shows.

Read the rest of Part 1 here and stay tuned for Parts 2 and 3!

Global Cyber Crime Economy Generates $1.5 Trillion a Year
It's No Longer a Business - It's the 13th Largest Economy
Cyber criminal operations worldwide are generating revenues that equal the GDP of Russia though a web of profit that involves legitimate businesses, research has revealed

The overall estimate is made up of estimated earnings of $860bn from Illicit/illegal online markets, $500bn from intellectual property theft, $160bn from data trading, $1.6bn from crimeware-as-a-service, and $1bn from ransomware.

If cyber crime were a country, then it would have the 13th highest gross domestic profit (GDP) in the world, according to the study commissioned by virtualization-based security firm Bromium.

The study exposes the professionalization of cyber crime and details how cyber criminal profits are acquired, laundered, spent and reinvested.

The research points to an emergence of platform criminality, mirroring the platform capitalism currently used by companies like Uber and Amazon, where data is the commodity. The report raises concerns this platform criminality model is enabling and funding broader criminal activities, such as human trafficking, drug production and distribution, and even terrorism.

Cyber crime can no longer be compared to a business because it is now an economy, with an interconnected web of profit that blurs the lines between the legitimate and illegitimate, with both feeding off one another, according to said McGuire, who is to present the full findings of the nine-month Web of Profit study at the RSA Conference in San Francisco.

“We are looking at a hyper-connected range of economic agents, economic relationships and other factors now capable of generating, supporting, and maintaining criminal revenues at unprecedented scales,” he said.

Post-crime reality

The report shows that cyber criminal platform owners are likely to receive the biggest benefit from this new wave of cyber crime, and that the owners will distance themselves from the actual commission of crime. In fact, it has been estimated individual hackers may only earn around $30,000 a year. Managers can earn up to $2m, with just 50 stolen card details at their disposal.

McGuire refers to this as a shift to “post-crime” reality, where cybercriminals are taking a “platform capitalism” approach to selling, rather than committing crime.

In fact, McGuire found criminal sites offering ratings, descriptions, reviews, services, and even technical and customer support. These platforms are improving the criminal ‘customer experience’ and allowing easy access to services and products that support the commission of crime on a global scale.

“The platform criminality model is productizing malware and making cyber crime as easy as shopping online. Not only is it easy to access cyber criminal services and expertise; it means business – both public and private – are going to see more attacks with increasing sophistication. computerweekly.com

GDPR Compliance Could Hamper Internal Probes
Organizations working to comply with the European Union’s General Data Protection Regulation may be at risk of losing information that can help them in internal investigations. Deleting personal data before GDPR takes effect May 25 may allow companies to meet the requirements of the law but could expose them to other risks, said Katie Smith, the chief ethics and compliance officer at Convercent, a software company that helps firms handle compliance issues.

GDPR requires organizations to articulate more clearly how and why they collect personal information. It gives EU citizens more control over their data, including allowing them to request its deletion. Erasing personal data can make it harder to conduct investigations, establish patterns of behavior and keep track of past issues, said Ms. Smith.

One risk is the deletion of what Ms. Smith calls “breadcrumbs,” or issues that don’t aren’t substantiated when first raised but could point to a pattern of behavior if additional information arises. GDPR-linked deletions can erase the trail of crumbs that can lead investigators to problems, she said. “If you are seeing several unsubstantiated cases over time, that is a trail of breadcrumbs that someone has issues,” she said.

So what can companies do to ensure compliance with GDPR while maintaining their ability to retain information that could prove useful in an investigation? Ms. Smith said companies need to work closely with legal counsel in the countries where they operate because rules vary by nation. They would be wise to create an ethics and compliance committee whose sole focus is GDPR.

“With the idea of redaction, personally identifiable information is removed but an organization can still track its data analytics. It is a real benefit to a company to be able to have that ability.”

GDPR requires affected organizations to name a chief data privacy officer. Ms. Smith said she recommends having that person involved with any GDPR-related committee or investigation team. The data privacy officer can help review cases that meet the requirements of a GDPR provision allowing organizations to keep a case or a person in their system even if that person asks to be forgotten.

Organizations need to be aware of attempts by bad actors to request they be forgotten as a way to hamper investigations, she said. “They can use GDPR as a way to slow down or disrupt any disciplinary action or grievance action." wsj.com

Biometrics Are Coming & So Are Security Concerns
The use of biometric data for authentication is becoming commonplace. In both identity management and identity verification, biometric applications are making marked improvements over current security protocols.
The risks of using biometrics fall into a few categories, including data and network hacking, rapidly evolving fraud capabilities, biometric enrollment security, familiar fraud (that is, caused by a family member or friend), spoofed sensors, and sensor inaccuracy.

One of the greatest risks is data security. Biometric sensors produce digital maps of a body part, which are then used for future matching and unlocking. That digital map can be stored locally on some devices (such as an iPhone fingerprint sensor) or transmitted across a network to a central storage database. Locally held data is significantly better protected because it is never out of your control while in transit. Data in motion must be encrypted on its way to storage and then secured. In both transit and storage, the data is vulnerable, and hackers are fairly adept at breaking into either, particularly if the data isn’t encrypted.

The collection, use, and security of biometric data, however, is so far fairly unregulated. In the EU, the General Data Protection Regulation (GDPR), which goes into effect in May, does address biometric data as one of a few "special categories of personal data." With a few exceptions, the GDPR prevents the sharing of this data without express consent. In the US, however, there isn't a clear federal regulation addressing biometric data; instead, use of biometrics is managed by a series of overlapping and contradictory laws from both federal and state agencies.

Today, the best protection in the US comes from some self-regulating guidelines developed by industry groups and government agencies. As use grows, biometrics must become more regulated or user privacy could be at risk. darkreading.com

Ohio Resident Admits Role in $2M Business E-Mail Compromise Scheme
OLUMUYIWA YAHTRIP ADEJUMO, also known as “Ade, pleaded guilty Friday in New Haven federal court to a fraud offense stemming from his role in a business e-mail compromise scheme. ADEJUMO, his co-conspirator Adeyemi Odufuye and others targeted CEOs, CFOs, controllers and others at U.S. businesses using sophisticated cyber techniques to defraud the businesses. ADEJUMO and his co-conspirators sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. ADEJUMO and his co-conspirators sent the e-mails with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.

As a result of this scheme, victimized businesses have suffered more than $2 million in total losses. One company in Torrington, Connecticut, lost more than $500,000. He faces 20 years in prison and will be sentenced July 26th. He is a citizen of Nigeria and a lawful permanent resident of the U.S. justice.gov

Genuine Auto Parts – IT Director, Information Security – page not found

Lowe’s – Director IT Security – SOC & TVM – job posting expired or position has been filled

LPRC: Now & Next

Improving Execution Now
Preparing for What Comes Next

Read Hayes, PhD, Director of LPRC
Mike Giblin, Sr. Research Scientist, LPRC
Fred Becker, Dir. of AP, Bloomingdale's

As LP/AP’s academic “Think Tank”, the Loss Prevention Research Council studies virtually every aspect of Loss Prevention. From strategy, analytics, manpower, and technology, to the various forms of loss, theft, fraud, robbery, as well as store and parking lot violence and deaths, the LPRC delivers actionable information that drives results.

As our retail world continues to present evolving violent, data, brand and property crime risks, learn how the LPRC is helping retailers tackle these issues, improve execution now and prepare for what’s coming next.

Learn more about the LPRC in our 'LPNN in Gainesville' series of interviews filmed at the LPRC's 2017 Impact Conference.

  Episode Sponsored By
 

How HBC and Saks
Mitigate Threats

Pat McEvoy, Sr. Director of Asset Protection Administration, Hudson's Bay Company, and Bryan Granata, Managing Director of Asset Protection, Saks Fifth Avenue, explain how situational awareness can help in both rare occurrences like active shooter threats and common events like distracted walking caused by smartphones.
 

Miss an episode? Catch all our "Live in NYC" 2018 videos here.

Get involved in our next broadcast in June at NRF Protect in Dallas. Contact us!

e-commerce
Sponsored by The Zellman Group

#1 Executive Protection Budget in North America? 
The gigantic sum Facebook pays for Mark Zuckerberg’s personal security
In a document filed late Friday, Facebook said it had spent $7.3 million in personal security costs and $1.5 million on personal use of private aircraft by Zuckerberg in 2017, a 54 percent increase from the year before, bringing the total to $8.8 million, compared with $5.8 million in 2016.

The figure for 2016 was also more than double what was spent on the next-highest personal security bill for a CEO in the Fortune 100, according to an analysis by the executive compensation and research firm Equilar (companies have not all filed their figures for 2017). And it was several multiples higher than the amounts spent on other well-known, high-profile chief executives, such as Tim Cook, CEO of Apple, which spent $317,325 on his personal security and aircraft use in 2017; and Jeffrey P. Bezos, CEO of Amazon, which spent $1.6 million in 2016. (Bezos is the owner of The Washington Post.)

“This is the largest amount I’ve seen in the five years I’ve been looking at the Fortune 100 studies,” said Dan Marcec, Equilar's director of content and communications, referring to Zuckerberg's 2017 figure. He said it was “far outsized from what we've seen for any other CEO, even within the tech industry, which tends to have high-profile CEOs, leading to higher security costs.”

“Facebook’s board of directors believes that this investment in Mark’s personal security is entirely justified. He is central to Facebook’s future success and as founder and CEO of the company has a high public profile.” The security expenses make up almost all of Zuckerberg's 2017 compensation: Already one of the world's wealthiest billionaires, he gets a $1 salary and no annual bonuses or new stock grants from the company. washingtonpost.com

You've Got to Know Your Stuff With Bezos
Jeff Bezos admits Amazon has 'the weirdest meeting culture you will ever encounter'
Every meeting requires a well-crafted six-page memo which the whole room sits and reads at the start of the meeting.

Bezos banned PowerPoint years ago and explained why the memo-driven meeting is far superior.

If you go to work as an executive at Amazon, no matter what your expertise, you will be required to become a good writer, and a good reader, in order to lead the meetings necessary to do your job.

"For every meeting, someone from the meeting has prepared a six-page, narratively structured memo that has real sentences and topic sentences and verbs. It's not just bullet points. It's supposed to create the context for the discussion we're about to have."

Everyone then sits and reads the memo silently, which often takes a good half-hour. And then they discuss the memo.

In the letter, he explained that writing a brilliant, long memo requires the writer to understand the subject well. It also requires the writer to "improve results through the simple act of teaching scope." By that he means doing a great job requires effort, not speed. "A great memo probably should take a week or more" to write, he said in the letter. businessinsider.com

Amazon's Next Conquest Will be Apparel
Based on the company’s great ambitions in apparel, it may not be long before we also see Bezos at New York Fashion Week next to Anna Wintour. Amazon has been fine-tuning its fashion operation for over 15 years.

E-commerce accounts for nearly twice as big a proportion of total clothing sales as it does for retail more broadly (17 percent vs. 10 percent). Amazon, meanwhile, has honed its apparel strategy, providing free returns, better photography and greater selection. Today, the company is the largest apparel retailer by gross merchandise volume. Mission accomplished? Not quite. techcrunch.com

Amazon’s Typical Worker Is in a Warehouse Making $28,446 a Year
The figure puts Amazon on par with chocolate manufacturer Hershey Co., slightly above retailer Home Depot Inc. —and miles below the $240,430 median annual compensation at Facebook, according to the companies’ latest proxy statements. wsj.com

Car-theft kit for sale on Amazon: How web giants are 'helping criminals'
Buy devices that can be used to steal vehicles for as little as 100 UK pounds
Electronic gadgets that can be used to steal cars in seconds are being sold online for as little as 100 UK pounds. Available on Amazon and eBay, the hacking devices allow thieves to reprogram a blank key fob so it can start a car’s ignition.

A crime commissioner accused ‘irresponsible’ web retailers of helping criminals, saying the devices should be taken off sale. Police chiefs say car theft, which has almost doubled in some areas, has become ‘child’s play’. More than 86,000 cars were stolen in 2016 – 30 per cent more than in 2013. The Mail’s investigation found that:

Amazon and eBay are unwittingly making the availability of the latest electronic attack tools freely available to anyone and on a next-day-delivery basis.

A spokesman for eBay said it had a policy against selling lock-picking devices, including key programmers. He said: ‘We will continue to remove them, they are prohibited on our site. Thanks for bringing this to our attention.’ Amazon declined to comment. dailymail.co.uk

ORC News

Pasco County, FL: Suspect in Multi-Million Dollar Credit Card Fraud Ring Arrested for Organized Fraud
A suspect in 48 credit/debit card fraud cases has been arrested in Miami, according to the Pasco County Sheriff’s Office.

Daniel Santos, 22, was arrested Thursday (April 19) through a coordinated effort with the U.S. Marshalls Service and the Miami Dade County Police. Santos is currently held on no bond. He is charged with organized fraud and possession of stolen credit or debit card, among other related charges.

Santos’ fraud crimes have been occurring since March 2015. Deputies said Santos obtains credit/debit cards by either buying them from people, stealing them, or obtaining them through “mail box hopping.” His fraudulent activity with other criminal associates has become a multi-million dollar fraud ring.

Hubbell arrested Santos several times since receiving the first case, however, Santos was always able to make bond and continue his lifestyle of criminal activity, deputies said. With a total of 48 fraud cases, Hubbell said he was determined to locate Santos and put a stop to his crime spree. tbreporter.com

Westland, MI: Pawnshop Owners Charged with Selling Stolen Merchandise
Two owners of the Bank Pawn Shop in Westland have been charged with being the masterminds of a criminal enterprise that bought and sold stolen goods. "This investigation started in September of 2017 when the Westland Police Department received information Bank Pawn Shop and Exchange was buying and selling stolen merchandise," said Sgt. Timothy Liess. "Countless persons were stealing merchandise from stores throughout the Metro Detroit area and selling it to the shopkeepers at the Bank Pawn Shop and Exchange." deadlinedetroit.com

Wichita Falls, TX: Mattress Firm Employee embezzled $41,000 in inventory scam
The District Manager for Mattress Firm in Wichita Falls and a loss prevention officer found a discrepancy of $40,774.35 and authorities say they traced that deficit back to Victor Rosales,19. When Rosales was interviewed by the district manager, police say he admitted to the theft and wrote a 10-page admission detailing the theft and his method. Detectives say Rosales charged 11 previous customer accounts for merchandise they didn't order totaling $37,572.53 and then went on to sell the merchandise to other customers. Authorities also say Rosales was paid $3,201.82 in commission on those charges. texomashomepage.com

Chicago, IL: Best Buy Employee charged with $18,900 theft of 22 cellphones
Bond was set at $2,000 for a Best Buy employee charged with taking 22 cellular phones from the Norridge store, after keying them out of the store’s inventory by designating them as “damaged write-off,” police said. Freddy Lopez was charged April 10 with felony retail theft of merchandise over $500. He is due in court May 4. A manager told police the theft was brought to his attention by an operations manager, who informed him that around March 20, there was an inventory adjustment to damage write-off for an iPhone 8 not in the warehouse on the write-off pallet. The manager told police he pulled inventory adjustments keyed to “damage write-off by Lopez from August 2017 to April 2018 and learned there were 22 cellphones, valued at $18,901.38, that were not accounted for in the write-off pallet. Lopez refused to answer questions in regards to the incident, police said. chicagotribune.com

Medford, OR: Woman charged in $7,000 Victoria’s Secret and $3,500 Safeway thefts
A California woman who allegedly stole more than $7,000 in underwear and other merchandise from Victoria’s Secret was captured by Medford police after she took a cab to her motel room. Harmonie Jewel Taylor, 25, faces two felony theft charges, accusing her of shoplifting more than $7,000 worth of merchandise from Victoria’s Secret at Rogue Valley Mall early Wednesday afternoon, then taking about $3,500 worth of items from Safeway stores later that evening, according to court documents. mailtribune.com

Seattle, WA: Man steals 2 Louis Vuitton handbags valued at over $10,000 from Nordstrom

Chicopee, MA: Man attempted to steal over $6K of goods from Home Depot

Airmont, NY: Two men steal a $1,900 guitar from Alto Music

Southington, CT : Female arrested for the theft of 6 FITBITS from Target, total value of $1,799

Bloomfield Township, MI: Female busted at Target stealing $1,600 of clothing

Erie, PA: Two Suspects Wanted in Theft of More than $6,000 of Merchandise from Walmart

Retail Crime News
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Shootings, Stabbing & Deaths

Nashville, TN: Waffle House Shooting Suspect Arrested Last Year Near White House
Travis Reinking, the suspect in the early Sunday morning shooting at a Nashville Waffle House that left four people dead, had his weapons confiscated last year after he was arrested near the White House, Metro Nashville Police said. In July 2017, Secret Service agents arrested the 29-year-old for entering a "restricted area" near the White House. Secret Service representative Todd Hudson said he wanted to "set up a meeting" with President Donald Trump. The shooting began at 3:25 a.m. at a Waffle House on Murfreesboro Pike in Antioch. According to police and witnesses, Reinking entered the restaurant only wearing a jacket. He shot at two men standing outside the building, then shattered a front window. He then entered the restaurant and continued firing. popculture.com

Nashville, TN: Man who snatched AR-15 from Waffle House gunman hailed as a hero
The man who snatched an AR-15 rifle from a gunman at a busy Tennessee restaurant says his was a "selfish" act of self-preservation and he doesn't consider himself a hero. Never mind that he is being credited with saving several other lives. "When I grabbed the barrel of the weapon it was hot, but I didn't care. It was life or death," said James Shaw Jr., a 29-year-old Nashville resident who found himself wrestling with the suspect after four people had already been fatally shot at a Waffle House bustling with wee hour patrons early Sunday in Nashville. Shaw joined law enforcement officials and Nashville's mayor at a news conference Sunday, some 12 hours after the shooting, his right hand bandaged. There he was singled out by Waffle House CEO Walter Ehmer, who was present and thanked Shaw for his bravery. "You don't get to meet too many heroes in life," Ehmer said before addressing Shaw, who dabbed at tears in his eyes. "We are forever in your debt." The suspect Travis Reinking, 29, entered the Waffle House and shot and killed 4 people, injuring 4 others; no motive for the event. ctvnews.ca

Waffle House Shooting: Police Say Suspect Is in Custody after Manhunt
The police said Monday that they had arrested a suspect in the killing of four people at a Waffle House in Nashville, ending a wide search that had unnerved one of the largest cities in the South. About 160 law enforcement officials had been involved in the search for the suspect, Travis Reinking, 29, who officials said used an AR-15 rifle to carry out a rampage at a restaurant southeast of downtown on Sunday morning. nytimes.com

Trumann, AR: Man killed in front of bystanders, including kids, outside Walmart
Police said the slaying began as a domestic dispute at the front of the store about 9:15 p.m. Police arrived and negotiated with an armed man who walked out of the store with a woman. The man then shot and killed a second man who tried to intervene. The armed man eventually surrendered to police and was arrested. ajc.com

Coalville, UT: Man stabbed in neck in critical condition after bumping into stranger at store

Robberies & Thefts

Thieves snatch electronics at Apple store in front of witnesses
Police are looking for the suspects in a robbery at the Apple store on the Plaza caught on camera. The incident happened Sunday afternoon at the Apple store at 227 Nichols Rd. Three male suspects walked through the store snatching up electronics before fleeing on foot. There were numerous people inside the store at the time, some taking out their phones to record the incident. kshb.com

Portage, MI: Robbers cut through walls to break into jewelry store

Scottsdale, AZ: Security Guard accused of stealing $2,000 from Chico’s store safe

Hopkinsville, KY: TJ Maxx Employee arrested for theft of $950

Tokyo: Stolen books resold via 'flea market' apps becoming a serious issue

Bomb Threats

Oklahoma City, OK: Man arrested after allegedly threatening to blow up store if someone didn’t sell him weed

Counterfeit

Round Rock, TX: Man Accused Of Selling $323K in Counterfeit Goods on eBay

Sentencings

Brownsville, TX: Texas man who stole $1.2M in fajitas gets 50 years in Prison
A former South Texas juvenile justice department employee was sentenced Friday to 50 years in prison after pleading guilty to stealing $1.2 million worth of fajitas with county funds. Gilberto Escamilla, 53, who worked at the Cameron County Juvenile Justice Department, was arrested in August after a driver from Labatt Food Service in Harlingen called the department's kitchen and said he was delivering an 800-pound order of fajitas. dallasnews.com

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Tip of the Day
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Interesting how the social dynamics of a small industry mirror, somewhat, the same social dynamics of a family, with the holidays and conferences almost being one in the same, where we're excited to visit with old friends and colleagues, yet cautious about the battle lines business and careers at times necessitate or cause. At the end of the day, it's all about doing what's right for the industry, adding value, helping people, and continuing to help evolve the industry. And while each executive has their individual agendas, it's important to remember that we are all part of one industry and we all share one goal - to guide, nurture, and evolve it.

Just a Thought,
Gus

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