It's 'CIS Week' on the D&D Daily! Follow along in the 'Vendor Spotlight' column below as CIS Security Solutions showcases solutions for the retail industry

Retailer IDs extensive gift card fraud, stops it cold

How a retailer's face match interrupted nationwide scam in just hours

Step one in any crisis: Stop the bleeding. Retailers lost $94.5 billion to thieves in 2021. Now they're stemming that figurative tide and preventing new wounds with FaceFirst's powerful investigative tools.

Here's how one retailer identified an extensive gift card scam and stopped it cold in less than three hours. A store manager notified the retailer's AP team that a masked man removed 50 Apple gift cards from the store without activating them. (This is the first step in a known, complex gift card fraud scheme.) The AP team ran a FaceFirst search. Even with the mask covering half of the man's face, the search quickly revealed that he repeated the gift card thefts in 21 stores.

As a result of the first search, the AP team noted the man's frequent accomplice. They ran a FaceFirst search on the accomplice and quickly found the second man had placed altered gift cards back on display in 61 of their stores. (This is the second step in the gift card fraud scheme.)

In less than three hours, the retailer identified the gift card theft pattern-at least 84 incidents with 2,000+ stolen and altered gift cards in the prior 14 days. The retailer temporarily removed all Apple gift cards from the stores and began working with the kiosk vendor to address the problem nationwide.

The retailer enrolled the two men in its custom FaceFirst database. FaceFirst alerted the retailer instantly when the men entered the stores again. The men returned three more times, determined that the Apple gift cards had been removed, and have not been back since.

FaceFirst gives retailers incredible investigative power that helps stop the bleeding and deters criminals so they're no longer harming the retailers' operations. FaceFirst's AI can search thousands of hours of CCTV security footage in seconds, turning a nearly impossible manual task for humans into instant, actionable intelligence. FaceFirst's fast, accurate search tool helps AP investigators build strong, detailed cases for coordination with law enforcement agencies and prosecutors.

FaceFirst's face matching technology alerts retailers instantly when known threats enter their stores, providing both life safety and loss prevention advantages. Calculate the risks of being caught unaware when a known offender enters your store. If you knew there was a proven solution to keep your valued customers and associates safer from violent offenders and prevent loss, would you implement it? The real risk is answering no. FaceFirst's solution is fast, accurate, and scalable-learn more today at facefirst.com.
 

Retailers Push Back Against New California Shoplifting Bill
The legislation would only dissuade employees from intervening when they witness shoplifters, leaving an open invitation “to come in and steal.”

Bill would discourage California employees from confronting shoplifters

It’s aimed at curbing workplace violence, but one retail expert says thefts will increase as a result

A bill aimed at curbing workplace violence has sparked pushback from the California Retailers Association, which says the legislation would only dissuade employees from confronting shoplifters, leaving an open invitation “to come in and steal.”

“Under my SB 553, employers would be prohibited from forcing their workers to confront active shoplifters, and all retail employees would be trained on how to react to active shoplifting,” he said following last month’s Senate’s approval.

The senator’s office notes that SB 553 “does not prohibit dedicated security personnel, like security guards, from stopping shoplifters or active shooters.”

The legislation also would require employers to provide active-shooter training to workers. They would also be required to keep a log of violent incidents and allow companies to apply for workplace violence restraining orders if the perpetrators are caught.

SB 553 applies to office environments and other job locations, although it heavily targets the retail sector, which has seen a sharp uptick in shoplifting — and violence. Security veteran Russell Stuart, who owns the Beverly Hills-based Force Protection Agency, said the bill’s language is confusing.

Employees who opt to confront shoplifters wouldn’t face punishment from their employers under SB 553, but it bars businesses from requiring workers to intervene in such situations.

Rachel Michelin, California Retailers Association’s president, said fewer workers will be incentivized to stop shoplifters, which will have a heavy effect on mom-and-pop retailers.

“There will be stores that close,” she said. mercurynews.com


Fallout from This Week's Federal ORC Hearing
Congress weighs federal response to high rates of retail crime

The five-finger discount costs businesses nearly $100 billion each year and the problem is getting worse. Congress is now weighing a federal response to it.

"When the rule of law is gone it threatens our very freedom," said Rep. Andy Biggs during a congressional hearing on the topic this week. "The fact that we’re having this hearing in some ways is very disappointing. We used to be a country that adhered to the rule of law."

The Combating Organized Retail Crime Act, which would set up a multi-agency federal response to retail shrinkage led by the Department of Homeland Security, is currently working its way through the House.

David Johnston, the vice-president of Asset Protection and Retail operations for the National Retail Federation, says that the majority of recent cases are not due to individuals shoplifting small items for themselves but organized crime rings that resell stolen goods for cash. Johnston says these thieves can get violent.

However, during a House Judiciary's Subcommittee on Crime and Federal Government Surveillance hearing on organized retail crime and public safety, Rep. Barry Moore, R-Ala., says changing the law might not solve the problem.

"You’ve got certain prosecutors who have just decided not to apply the law on the book," said Moore. 'Whether we change the law or not, if it’s not applied it’s very ineffective for us to pass law after law whether it be gun laws or drug laws or whatever the case if in fact they are not prosecuted.

The National Retail Federation believes an organized federal response will help cut down on theft. The organization is urging congress to pass the bill soon. katv.com

RELATED: Slain Home Depot worker's mom tells Congress: 'The system failed'


Related Coverage of the House ORC Hearing

• Slain Home Depot worker's mom tells Congress: 'The system failed'

• Tom Tiffany Lays Out Human Costs Of Organized Retail Theft


Westfield Walks on Loan for San Francisco Center - Rampant Theft & Other Crimes
Emails reveal safety issues at S.F. Westfield

'We urgently need to discuss Westfield’: Emails shed light on safety problems at downtown S.F. mall
Westfield executives and their retail store tenants at the troubled San Francisco Centre complained in recent months that San Francisco’s attempts to address rampant theft and other crime at the mall have fallen short, records obtained by The Chronicle show.

In response to concerns raised by the mall, the city last year agreed to provide a dedicated law enforcement presence at the ailing downtown shopping center, sending two police officers to patrol the facility every day.

But the efforts appeared to do little to mollify the mall’s owner, which this week said it was returning the property back to its lenders due to weak sales, scant foot traffic and a difficult economic climate downtown. Westfield has said public safety issues at the mall contributed to its problems.

One Westfield executive said in a February email, which The Chronicle obtained through a public records request, that staff from the youth jewelry store Claire’s had reported that “there was not much slow down” in shoplifting incidents at the store since the city added officers to the mall.

Emily Weber, a vice president at Westfield’s parent company, forwarded the email to Kate Sofis, who was then San Francisco’s top economic development official.

Weber wrote Feb. 9 that, in addition to the concerns raised by Claire’s, “I’m also hearing now from our center team that there were two incidents yesterday where people were held up by knife point at the center for theft.”

Claire’s declined to comment. The company closed its San Francisco Centre location in March.  sfchronicle.com


New York Senate Passes bill creating Retail Crime Task Force
ALBANY- Legislation has passed through the state Senate that would establish a New York State Organized Retail Crime Task Force.

According to Senator Griffo, who supports the measure, retail crime is a “big problem” statewide. "This legislation will provide an important opportunity to research and explore solutions to reduce organized retail crime that has plagued businesses in the 53rd Senate District and elsewhere,” he said.

“I urge the governor to sign this legislation so that we can put a stop to this criminal activity and protect businesses, employees and consumers."

With a companion bill recently passed through the state Assembly, this proposed legislation would allow a variety of law enforcement, prosecutor and retail stakeholders to provide recommendations and review current laws to help prevent retail theft. flackbroadcasting.com

NY Bill No: AO6568


U.S. Congress: House Bill 895 Combating ORC Act Adds 9 New C-Sponsors in Last Week
Now reaching 36 Co-Sponsors. 19 Republicans and 17 Democrats. Is your U.S. Rep supporting the bill? Check out the list here.


Chicago's New Mayor (Accidentally) Keeps ShotSpotter Tech in Place
Mayor Johnson approves $10 million payment to extend ShotSpotter deal he vowed to end — aide blames automatic signature

An aide said Johnson’s signature was unwittingly attached to a document authorizing the payment, which covered a contract extension that was approved by Lori Lightfoot.

Mayor Brandon Johnson signed an agreement last week to spend over $10 million more on the controversial ShotSpotter technology he lambasted on the campaign trail and vowed to do away with.

Jason Lee, Johnson’s senior adviser, said the mayor’s signature was unwittingly attached to the document, which authorized the hefty payment to cover a contract extension that former Mayor Lori Lightfoot approved last October.

The controversial ShotSpotter contract started in August 2018 and is now valued at nearly $49 million, according to the document. In approving the extension last year, Lightfoot quietly pushed the end date from Aug. 19 to Feb. 16 next year.

During his campaign for mayor, Johnson criticized the technology and threatened to stop using it, citing the cost and “clear evidence it is unreliable and overly susceptible to human error.”

That hardline stance appeared to send ShotSpotter’s stock value into a tailspin after Johnson was elected in April, and the company then changed its corporate name to SoundThinking. Acknowledging the new name of the rebranded company is among the changes written into the document Johnson signed.

“While we cannot speculate on the city’s next steps,” the company spokesperson said in a statement, “SoundThinking continues to focus on providing the highest quality gunshot detection services to the Chicago Police Department, so they can render swifter aid to gunshot victims and more effectively respond to incidents of gun violence, better protecting the citizens of Chicago.”

The spokesperson claimed the technology is 97% accurate, and said the police department had credited the firm “with 125 lives saved in the last five years, the recovery of 2,985 firearms and 24,421 pieces of evidence.” chicago.suntimes.com


Philly may ban ski masks in public places like schools, parks, recreation centers, and on public transit
Philly City Council is considering legislation banning the masks, which became popular during the pandemic. The bill is unlikely to pass in time for summer, assuming Council follows usual procedures.

"The proliferation of ski masks being used by people committing crimes has made police work harder and is “a problem that we cannot ignore.” "What it will do is make it easier for the police to identify suspects and make our neighbors feel safer.”

Councilmember Anthony Phillips introduced legislation Thursday that would allow the city to fine people $250 for wearing the masks in specific public places and $2,000 in commission of a crime, and it was cosponsored by 10 other members — meaning it already has the support of a majority of Council.

Several states, including Virginia, Florida, and Georgia, have similar bans on people wearing facial coverings that are intended to disguise their identity. inquirer.com


Businesses Get Creative to Crack Down on Gun Violence
Edwins trading food for guns to combat crime in Cleveland

70+ people have been shot to death in the city of Cleveland so far this year.

Starting right now, anyone who brings in an unloaded handgun to Edwins restaurants, bakery or butcher shop will be given a $250 gift card that can be used at any Edwins location, whether it is for fine dining, top cuts of meat or fresh baked goods.

Chrostowski said it’s time that the Cleveland community thinks outside the box, especially when it comes to getting guns out of the hands of youth. He said he’s talked with many people in the community who want the business sector to step up, and many folks are supporting this start. fox8.com


Westfield mall's San Fran Centre - Cinemark movie theater closing this week

New City Budget Cuts $31M from Boston Police Department

Baltimore City Council Passes $2M To Expand & Improve City's Surveillance Network - 'CitiWatch'

Another Dollar Store Hit With OSHA Complaints
OSHA has issued citations or violations in more than 500 inspections at the national discount retailer’s Dollar Tree and Family Dollar stores

Worker's complaint leads Department of Labor to again find Dollar Tree exposing employees to blocked aisles, trips, falls, slowing safe exit

OSHA proposes $98K in penalties for exposing 8 employees to safety hazards

PEWAUKEE, WI – Federal workplace safety inspectors opened an investigation at a Pewaukee Dollar Tree store in January 2023 in response to an employee’s concerns about unsafe work conditions.

Inspectors with the U.S. Department of Labor’s Occupational Safety and Health Administration found merchandise blocking aisles and exit routes, creating trip and fall hazards and preventing workers from leaving the location safely in an emergency.

Since 2017, OSHA has issued citations to Dollar Tree Inc. for violations in more than 500 inspections at the national discount retailer’s Dollar Tree and Family Dollar stores in the U.S. In all, OSHA has identified more than 300 violations.

“OSHA inspectors repeatedly find Dollar Tree employees exposed to the risks of injury from stacked merchandise, and blocked aisles and exits,” said Occupational Safety and Health Area Director Christine Zortman in Milwaukee. “They need to develop and follow a company-wide safety and health program for its stores to eliminate these well-known hazards and protect the safety of their employees.”

The agency issued Dollar Tree Inc. a citation for one repeat violation and proposed $98,219 in penalties after the inspection at the Pewaukee store, which employs eight workers. dol.gov


National SAFER Workplace Day: Friday, June 30
National Safer Workplace Day occurs on the last Friday of June commemorating the SAFER workplace initiative which promotes workplace safety with a heightened focus on machine safety to reduce the potential of near misses, accidents, and injuries.

The SAFER acronym is based on the 5 fundamental steps used to conduct a risk assessment and stands for stop, assess, formulate, execute, and review. Following each step allows a systematic approach to effectively identify and correct hazardous machines, tasks, process and conditions.

Check out this brief to learn more about SAFER steps and discover simple ways to celebrate at your company. ebmmanu.pathfactory.com


Why Starbucks' Pride decor ignited chaos and confusion this year
Starbucks faced an uproar this week after some of its workers claimed on social media that the company banned Pride Month decor in its stores.

Chaos and confusion ensued. The Starbucks workers' union blasted the move on Twitter. But Starbucks denied changing any policies around Pride decor. And while some workers said they were asked to remove Pride decorations, others continued to decorate their stores with Pride-themed items.

"We unwaveringly support the LGBTQIA2+ community," a Starbucks spokesperson told Insider. "There has been no change to any policy on this matter, and we continue to encourage our store leaders to celebrate with their communities, including for US Pride Month in June." insider.com


NY AG Urges Target to Re-Display Pride Merchandise
New York AG says Target pulling Pride items was ‘wrong’
New York Attorney General Letitia James has sent a letter to Target CEO Brian Cornell, urging the retailer to return Pride merchandise it removed following incidents in stores where people destroyed displays and products and confronted store workers.

On Wednesday, James tweeted that “Target’s decision to pull some of its pride merchandise because of backlash from anti-LGBTQ+ customers is wrong. Hatred and bigotry can’t win: New York elected officials and I are urging @Target to reverse its decision and stand up for #LGTBQ+ rights.”

Written earlier in the month, the letter asks the retailer to “consider other measures, such as enhancing security, rather than capitulating to a small group of extreme individuals’ intimidation tactics.” retaildive.com


Check Fraud Doubles in One Year
Cases of check fraud escalate dramatically, with Americans warned not to mail checks if possible
Check fraud is back in a big way, fueled by a rise in organized crime that is forcing small businesses and individuals to take additional safety measures or to avoid sending checks through the mail altogether.

Banks issued roughly 680,000 reports of check fraud to the Financial Crimes Enforcement Network, also known as FinCEN, last year. That’s up from 350,000 reports in 2021. Meanwhile the U.S. Postal Inspection Service reported roughly 300,000 complaints of mail theft in 2021, more than double the prior year’s total.  apnews.com


Companies to ramp up use of AI tools for hiring, employee engagement
According to the results of a newly released survey by payroll firm Paychex Inc., more than 75% of human-resources leaders at companies with 20 or more employees said they plan to use artificial-intelligence tools over the next 12 months. That includes AI tools for tracking applicants, assessing employee satisfaction and identifying potential candidates online.

The report identified other ways AI tools could help companies, including to gather employee feedback and synthesize the data to help highlight areas of improvement. Chatbots can also answer basic employee queries and help skill-building and training activities. bizjournals.com


'Recession Delayed'
Retail Spending Rose 0.3% in May as Consumers Remain Resilient to Rate Rises
Consumers spent more at most categories of retailers, including grocery, furniture and electronics stores. They spent less at gasoline stations, which can reflect declining prices at the pump.

“The recession will be delayed as long as consumers continue to spend,” said Oren Klachkin, an economist at Oxford Economics. wsj.com

Despite lingering inflation and economic uncertainty, consumers showed up at retailers in May, lifting sales 4.2% year over year in the segments covered by Retail Dive. E-commerce rose 8.7% compared to May 2022, according to numbers released Thursday by the U.S. Department of Commerce.

Year over year, home goods sales fell 4.5% and electronics sales fell 4.1%. Sporting goods sales rose 2.5%. Clothing sales were essentially flat from last year, edging down 0.16%, while department store sales fell 3%. retaildive.com  wsj.com


West Coast Dockworkers and Ports Reach Contract Agreement
The agreement came after rising tensions over recent weeks led to job actions by dockworkers at various cargo terminals, raising concerns over potentially wider disruptions that would rattle the American economy.

Shoe company Rockport files for bankruptcy for second time in 5 years

Sephora, True Religion, Camille Rose and More Brands Celebrating Juneteenth 2023

How companies can build trust with the LGBTQ+ community — during Pride and beyond
 

Senior LP & AP Jobs Market

Sr. Manager, AP Field Optimization & Capabilities job posted for Gap Inc. in San Francisco, CA
The Senior Manager of Asset Protection Optimization and Capabilities will play a critical role in developing and activating field strategy and ensuring the smooth operation of the Field Asset Protection function at Gap Inc. This organization consists of the Gap Inc. field Asset Protection team, which consists of approximately 340 employees and is responsible for all aspect of safety & security in our 2,400+ North America store locations. gapinc.com