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6/25/21

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NRF Retail Converge Wraps Up Today

NRF Retail Converge: Day 4 highlights

There’s no playbook in leadership, but you must put people first

NRF Retail Converge continues this week with sessions featuring leaders from retailers across the industry. Check out the recap below and join us at the virtual event through Friday, June 25 to learn from more retail experts.

Former Best Buy CEO Hubert Joly has an interesting perspective on leading in business. “Listen to the front-liners, they have all of the answers,” and “Treat profit as an outcome, not as an ultimate goal,” he said during a keynote presentation at NRF Retail Converge. With a people-centered approach, it’s not surprising that Best Buy was able to achieve a transformation as one of the nation's favorite employers after a challenging period of store closures and plummeting stocks in the summer of 2012.

Williams-Sonoma, Inc. successfully deployed omniservice, seamlessly transitioning its in-store interior designers to virtual design consultants. What customers want from home retailers is safe, sustainable furnishings and CEO Laura Alber says the company has just scratched the surface on over-exceeding customer expectations.

Macy's Chairman and CEO Jeff Gennette says Macy's is a “digitally led omnichannel retailer” with a performance-driven culture modernizing the supply chain and using data analytics as a driver for its updated website, enhanced app and improved store and returns experiences. Stay tuned as Macy’s is likely to lead in apparel when it debuts small store concepts later this year. Read the full recap here

More Highlights from NRF Retail Converge

● NRF Retail Converge: Day 1 Highlights

● NRF Retail Converge: Day 2 Highlights

● NRF Retail Converge: Day 3 Highlights

● For Williams-Sonoma, home is where the values are

● Former Best Buy CEO Hubert Joly on leading through the company's turnaround

Violence, Crime & Protests

Gun Violence is Surging in Nearly Every Big City
How Portland Gun Violence Compares to Other Cities

Portland is on pace to surpass 1,000 shootings this year. Most major cities in the U.S. are also seeing spikes in violent crime.

Gun violence is surging in Portland, but numbers show that is the case in nearly every major city nationwide.

Data from the Major Cities Chiefs Association, a professional organization that represents police departments in major cities across the U.S. and Canada, shows homicides increased nationwide from 2019 to 2020. There were 8,077 homicides reported in 66 major U.S. cities in 2020, compared to 6,087 in 2019. The number of homicides increased from 2019 to 2020 in all but nine of the responding cities.

Not all homicides involve guns, but according to CDC data, firearms were the means for about 75% of homicides in 2018, the most recent year that data is available.

Homicides in Portland increased from 28 in 2019 to 54 in 2020. Among cities similar in size to Portland, Seattle saw an increase from 34 to 53 homicides, in Minneapolis, a spike from 48 to 82, and Milwaukee saw homicides increase from 97 to 190 from 2019 to 2020.

Among the major cities included in the data, aggravated assaults also spiked from 224,951 in 2019 to 257,885 in 2020. Aggravated assaults increased year-over-year in all but 10 cities. Not all aggravated assaults involve firearms, but someone can be charged with aggravated assault if they shoot and injure someone.

Data comparing crime rates from the first three months of 2020 and 2021 also shows homicides and aggravated assaults increasing overall nationwide, although fewer cities saw an increase than did from 2019 to 2020. kgw.com

Federal Anti-Crime Plan Focuses on 15 Cities & Counties
Baton Rouge is one of the smallest cities in Biden's crime plan - its homicide rate is among the highest

Baltimore & Baton Rouge are the deadliest, while Los Angeles is among those with the lowest murder rates of cities participating in Biden's plan

When President Joe Biden unveiled a new plan to combat violent crime in 15 American cities and counties, including Baton Rouge, he touted the collaboration but said little about why his administration chose those communities.

Some are obvious picks: Baltimore and Chicago often star in news stories and political arguments on the topic. Baton Rouge — the second-smallest jurisdiction in the lineup — has rarely seen that level of national attention. But its homicide rate trends among the highest on the list, less than a decimal point below top-ranking Baltimore, according to an Advocate analysis of recent crime data.

East Baton Rouge Mayor-President Sharon Weston Broome said she believes the Biden team tapped Baton Rouge partly because of local anti-violence efforts and policing practices already underway. Her administration recently started training a team of so-called violence interrupters to break cycles of retaliation fueling an unprecedented murder rate.

Of the 15 cities and counties participating in the program, recent crime data was available for 11. Namely Atlanta, Austin, Baltimore, Baton Rouge, Chicago, Los Angeles, Memphis; Newark in New Jersey, Philadelphia, St. Louis and Washington DC. The other four participating jurisdictions are Detroit, Minneapolis and St. Paul, King County in Washington and Rapid City in South Dakota.

Since the start of 2021, Baltimore and Baton Rouge both saw a murder rate of about 26 per 100,000 residents, making them the deadliest of the 11 cities, according to data. Among those with the lowest murder rates were Los Angeles, which has a high number of killings but a massive population, and Newark, where authorities have recorded 26 murders to date this year. theadvocate.com

America's Post-Reopening Murder Wave
Crime is becoming one of America's biggest political issues
The post-reopening murder wave is about to become a major subject of conversation. Murders have gone up in 2021, and the summer -- high season for homicide -- is just getting started.

Violent crime and murder rates are certainly up around the country compared to recent years (crime, more generally, is often down). The FBI should release final data for 2020 in the fall, although this year it has changed the way it collects data on violent crime, so it will be difficult to compare year over year. Murder rates, already creeping up from a low of 4.4 murders per 100,000 people in 2014, certainly increased during and now after the pandemic.

This new societal crisis is already turning political:

● President Joe Biden and Attorney General Merrick Garland announced new measures Wednesday to respond to this rising crime wave.

● Brooklyn Borough President Eric Adams, a former New York Police Department captain, is leading the pack of New York mayoral primary candidates as counting entered the ranked-choice phase. He ran a law and order campaign far from the "defund the police" chants that echoed among liberals on Twitter last year.

● Republicans are likely to carry the perception of the nation's cities overrun by crime into the 2022 midterm elections.

● The political divide on crime will grow as Biden and Democrats focus on guns, which are involved in most murders, as the root of the problem, and Republicans blame liberal mayors and governors and lax attitudes toward policing.

"We will make sure you can't sell death and mayhem on our streets," Biden said on Wednesday. "It is an outrage. It has to end and we will end it." cnn.com

Officers Recognized for Mall Guard Shooting Response
3 Atlanta officers commended for response to Lenox security guard shooting
The Atlanta Police Department has officially recognized three officers for excellence in their response to a shooting and armed robbery attempt at Lenox Square mall that left a security guard critically injured earlier this month.

Officers Mikael Ware, Tyquan Ross and Roosevelt Prime Jr., all of whom work the Zone 1 evening watch shift, were honored as Officers of the Week, the department announced in a Facebook post Wednesday. The three were involved in the apprehension of two 15-year-old suspects within 10 minutes of the shooting, The Atlanta Journal-Constitution previously reported.

The incident began when the two teenagers were confronted by the security guard, later identified as Godjuhn Green, after one of them threw a rock at the window of the Apple Store at Lenox, according to an incident report obtained by the AJC.

One of the teenagers pulled a gun and fired at Green, hitting him twice before firing several shots at the Apple Store’s window. When the glass did not break, the teenagers fled.

According to police, Ware, Ross and Prime arrived on the scene after the suspects fled. The three “immediately went to work,” setting off in the same direction as the teens. Together, they searched the parking structure of a nearby hotel and found the boy and girl hiding in a storage room. The two were arrested without incident, police said. ajc.com

Hawaii's Shoplifting Problem
Shoplifting on the rise in Hawaii with thieves becoming more brazen
Businesses said shoplifting became an even bigger problem since the pandemic started. Power tools, electronics, alcohol and even canned goods are just a few of the things thieves have their eye on. City Mill marketing manager Shannan Okinishi said the pandemic has only made things worse.

Retail Merchants of Hawaii president Tina Yamaki said there is a significant uptick in shoplifting at retail stores. The Honolulu Police Department said the 2020 Annual report showed there were 2,100 shoplifting offenses in 2020 and 3,141 reports in 2019. They do not have any statistics for 2021 yet. Yamaki and Okinishi said the mask mandate has emboldened criminals.

As crime evolves, so do the methods stores are using to prevent it and catch those who are responsible. Okinishi said they have updated their security systems and security cameras, added alarms to high priced items, put serial numbers on merchandise to help identify them if thieves try to resell them. They have also implemented store bag policies.

Yamaki said there is frustration because thieves are often let off easy. “A lot of times, judges feel that because it’s a non violent crime, they’re letting them go with a warning or with no consequences at all.”

Yamaki urges businesses and prosecutors to hold thieves responsible because the entire community pays the price when businesses are forced to charge more to recoup their losses. khon2.com

Cops Resigning in Droves
Why Police Have Been Quitting in Droves in the Last Year

Thousands of police officers nationwide have headed for the exits in the past year.

A survey of almost 200 police departments indicated that retirements were up 45 percent and resignations rose by 18 percent in the year from April 2020 to April 2021 when compared with the previous 12 months, according to the Police Executive Research Forum, a Washington policy institute.

New York City saw 2,600 officers retire in 2020 compared with 1,509 the year before. Resignations in Seattle increased to 123 from 34 and retirements to 96 from 43. Minneapolis, which had 912 uniformed officers in May 2019, is now down to 699. At the same time, many cities are contending with a rise in shootings and homicides.

Asheville was among the hardest hit proportionally, losing upward of 80 officers, more than one third of its 238-strong force.

The police already had come under criticism in recent years, churning through half a dozen chiefs in the past decade amid widespread complaints about overly harsh policing. Often cited is a case in 2019, when an officer pleaded guilty to assaulting a Black man after an argument over jaywalking — at night with few cars on the road.

The past year’s racial justice protests brought these long-simmering tensions swiftly back to the surface. nytimes.com

Chaotic Gas Station Arrest Triggers Protests
South Carolina protests continue in Rock Hill; arrests reported

Two Rock Hill police officers were placed on administrative leave following Wednesday's incident

At least eight people were arrested in Rock Hill, South Carolina, on Thursday as protests continued for a second straight night following the release of a video that showed police arresting two Black men in a struggle at a gas station Wednesday.

Dozens of people showed up at the Rock Hill Police Department to protest and officials said the arrests occurred over the span of three hours, WSOC-TV of Charlotte, North Carolina, reported.

At one point, officers in riot gear arrived at the scene and assisted with a medical emergency, according to the station. Police and protesters were captured getting into an altercation just after 7 p.m., according to a video posted on Twitter by Alexandra Elich, a reporter with Charlotte's WCCB-TV.

Tensions appeared to escalate later in the night. Around 11:15 p.m., Elich wrote that police chased and arrested someone who threw a firework – and additional arrests were being made. foxnews.com

Homicides in Columbus, other major cities outpacing last year’s numbers

As St. Louis crime worsens, city awaits mayor's plan to tackle it

COVID Update

320.6M Vaccinations Given

US: 34.4M Cases - 618.6K Dead - 28.8M Recovered
Worldwide: 180.8M Cases - 3.9M Dead - 165.4M Recovered

Former Senior Loss Prevention Executive
Know of any fallen LP exec? Let's remember & recognize.

Private Industry Security Guard Deaths: 279
Law Enforcement Officer Deaths: 311
*Red indicates change in total deaths

COVID Lockdowns Led to Significant Drops in Crime - Except Murder
Lockdowns reduced urban crime by over a third around the globe – but some cities benefited more than others

The study examined 27 cities across 23 countries

Soon after the first lockdowns started, newspaper articles were ripe with speculation and reports about the effect of the pandemic on crime around the globe. Many reports suggested there would be a rapid fall in street crime, while others indicated a possible rise in lootings, burglaries of commercial properties and domestic violence.

Our findings showed that the number of daily crimes declined in the weeks following lockdowns being introduced. On average, the overall reduction in daily crime was -37% across the cities in the sample. However, there were differences across crime types and cities. Street crimes like theft (-47%) and robbery (-46%) declined most, while the drop in the number of murders was substantially smaller (-14%) and not statistically significant.

The lack of a significant decline in murder was a surprise. Especially in high-crime cities such as Rio de Janeiro, murders are often linked to gang activities and conflicts between young men. Despite restrictions limiting interactions for many people, the findings suggest that lockdowns seemed to do little to change the behaviour of those involved in serious violence.

In cities with more stringent stay-at-home orders, we saw larger declines in street crime compared to cities with fewer constraints on public life. For example, in Stockholm, Sweden, where there were little to no stay-at-home restrictions, on average daily crime declined by 13%. By contrast, in Lima, Peru, which experienced some of the most stringent stay-at-home restrictions in the sample, the daily number of street crimes declined on average 78% in the weeks following lockdown.

In other words, the combination of stay-at-home orders, shops and schools closing, restrictions on public transport and the disappearance of tourism meant that many opportunities for urban crime simply no longer existed. theconversation.com

The South is Struggling to Vaccinate
Louisiana, lagging in vaccinations, gambles on a lottery
Like many states in the South, Louisiana’s vaccination rate has lagged significantly behind the national average, particularly among older adults, a trend that has troubled public health officials.

Some 22 percent of adults 65 and older still have not been vaccinated, compared with 12 percent nationally, according to a New York Times database. Just 34 percent of the state’s population has been fully vaccinated, compared with 46 percent nationally.

Louisiana is one of the latest states to resort to dangling financial incentives to get more shots into arms, a strategy that has kindled a broader debate over the effectiveness and wisdom of monetary enticements. It is holding a lottery, which will be paid for with federal coronavirus relief funds.

At the lottery’s unveiling last week, a jazz band played the state song, “You Are My Sunshine,” and Louisiana’s governor, John Bel Edwards, revealed a giant check for $1 million.

Louisiana’s vaccination rate, as a share of its population, is lower than every state but Mississippi. Six of the bottom eight states are in the South: They include Alabama, Arkansas, Georgia and Tennessee. nytimes.com

Coming Soon to the U.S.?
Sydney Locks Down as Delta Covid-19 Variant Spreads
Parts of Australia’s largest city will go into a rare lockdown for at least a week as officials seek to stamp out an outbreak of the highly infectious Delta variant of the coronavirus.

People who live or work in four areas in and near downtown Sydney and the iconic Bondi Beach have been ordered to stay home from Friday night to stem the spread of the virus first detected in the city last week. The last lockdown in Sydney, in December, was confined to the 70,000 residents of Sydney’s Northern Beaches area and lasted three weeks.

The decision to put part of Sydney into lockdown reflects rising concern among officials over the highly transmissible Delta variant, which was first detected in India last year. Authorities have traced Australia’s recent outbreak to a Sydney limousine driver who transported international flight crew. Dr. Kerry Chant, the chief health officer of New South Wales state, which is home to Sydney, said genomic sequencing showed the driver was infected with the Delta variant.

The Delta variant has spread to dozens of countries, including the U.S., where it is expected to become the dominant version of the virus. The variant has driven a recent surge in cases in the U.K. and delayed the country’s planned economic reopening. wsj.com

In Pakistan, Saying ‘No’ to Covid-19 Vaccine Carries Consequences

China to keep COVID-19 border restrictions for another year

China Blocking Forced Labor/Supply Chain Audits?
State Dept. fears Chinese threats to labor auditors

The State Department is concerned organizations performing supply-chain audits in China are coming under pressure from Chinese authorities.

Why it matters: U.S. law prohibits importing products made through forced labor, but it's becoming increasingly difficult to verify whether products from China are tainted.

In April, at least seven people in China who work in partnership with Verité were interrogated by Chinese authorities for several days, several people familiar with the matter told Axios.

Verité is a U.S.-based company that performs supply-chain audits around the world to ensure production is free of forced labor and other violations.

A similar organization has expressed concern for the safety of its Chinese employees, according to one person familiar with the matter.

Between the lines: As part of a sweeping campaign of forced assimilation and genocide, the Chinese government has forced Muslim ethnic minorities to work in factories in Xinjiang and other parts of the country. This potentially taints a large number of supply chains throughout China.

What they're saying: "We are deeply concerned by reports that supply-chain auditors have been detained, threatened, harassed and subjected to constant surveillance while conducting their vital work in China," a State Department spokesperson said in a statement to Axios. axios.com

New Bills Target 'Cancer-Linked' Products at Retail Stores
Lawmakers introduce 2 new bills after a study found popular beauty products may contain cancer-linked chemicals

A study found indicators of PFAS chemicals in US makeup from Ulta Beauty, Sephora, Target, and Bed Bath & Beyond.

Lawmakers are reacting to a new study that found indicators of potentially harmful chemicals in popular makeup products, with two bills introduced to the US Senate.

The bills follow a study conducted by The University of Notre Dame that tested US makeup products from Ulta Beauty, Sephora, Target, and Bed Bath & Beyond. More than half of the 231 makeup products tested contained indicators of per- and polyfluoroalkyl substances (PFAS), a potentially toxic class of chemicals.

Both the No PFAS in Cosmetics Act and the Personal Care Products Safety Act would amend the FDA to have further regulatory power over the chemicals used in cosmetic products. The No PFAS in Cosmetics Act would ban the intentional use of PFAS chemicals in cosmetics. The Personal Care Products Safety Act would require companies to submit their ingredients to the FDA, allowing the agency to determine potential health risks.

Exposure to PFAS is linked to health concerns such as cancer, hormone imbalances, fertility issues, and obesity. According to the study, the cosmetic products most likely to contain PFAS are waterproof mascara and liquid lipstick. It's unclear which products were purchased from which store.

If successful, the bills would mean big changes for the US beauty industry, which is the largest cosmetic market in the world and valued at approximately $39 billion. businessinsider.com

Retail Labor Shortage
Shoppers complain of hour-long lines, messy stores & poor customer service
Zara shoppers in the US are complaining of hour-long lines, chaotic stores, and poor customer service at the apparel giant, as shopping picks up again.

"Myself and other customers are having the worst customer service experience in the downtown DC @ZARA. The levels of rudeness is uncalled for and the lines extremely long. Not a single staff member or manager has bothered to open additional registers," another wrote.

"Messy stores, more product in bins than hangers, few employees working in the store and one person at the register. Invest in some customer service please," another shopper said.

There are dozens of complaints on Twitter, and they are not limited to the US — shoppers in other parts of the world also say they face similar problems.

While Zara is known for notoriously long lines, reports on social media suggest they're worse than ever, as shoppers return to stores to restock their wardrobes. Some shoppers are begging Zara to reopen its fitting rooms in the US, which closed during the pandemic — they say this is making the lines worse because customers who can't try clothes in-store end up returning them.

On top of soaring demand coming out of lockdown, retailers across the US are also grappling with an ongoing labor shortage, which is making it difficult to recruit enough staff. businessinsider.com

Mall Traffic & Sales Are Strong as America Reopens
PREIT reports the leasing of 700K sq. ft. of space and mall traffic at 90%
of 2019 levels
The week that New York Gov. Andrew Cuomo told shoppers, diners, and workout fanatics they could leave their masks in their cars, the CEO of a super-regional mall operator released some numbers that may have made him tear his own mask off and sing.

Traffic: May traffic across PREIT's 14 malls were above 90% of May 2019 numbers. Five standout properties exceeded the traffic of the comparable 2019 period.

Sales: No as many shoppers as 2019, but they’re buying more. More than half of the company’s malls posted sales growth that exceeded the comparable periods in 2019.

Occupancy: PREIT malls have leased more than 700,000 sq. ft. of space, a 150% leap over 2019 representing a $8.3 million increase in annualized future revenue. New tenants extend over a wide range--traditional mall retailers, emerging brands, new-to-portfolio tenants, clicks-to-bricks brands, and non-traditional uses.

Collections: Payment of rents deferred during the pandemic continued to be strong. In April and May, cash collected represented 149% and 119% of billed rents, respectively. chainstoreage.com

Retailers Weigh in on the Bipartisan Infrastructure Deal
NRF Welcomes Bipartisan Infrastructure Framework
The National Retail Federation today issued the following statement from President and CEO Matthew Shay in response to the announcement that Congressional negotiators and the White House agreed to an infrastructure framework.

“NRF is encouraged by a bipartisan group of Senators and the Biden Administration finding agreement on a framework for an infrastructure package. Infrastructure has always had strong support across the aisle, so crafting a bipartisan pathway for this essential investment is the surest way to achieve progress.

“Now more than ever, the U.S. needs significant investment to ensure we remain competitive on a global basis. The retail industry relies on our nation’s transportation network to move billions of dollars’ worth of merchandise every day to warehouses, distribution centers and stores, and ultimately to consumers’ front doors. The ongoing supply chain disruptions that retailers and others are continuing to face highlight the need for investment and reform." nrf.com

Global Shipping Crisis Could Extend into 2022
Shipping Crisis Will Impact Holiday Shopping This Year
The world's shipping crisis that's making everything more expensive (or just impossible to find) is probably going to ruin your Christmas. That's because industry experts and company executives say the shipping crisis will continue through 2022.

The price to send a shipping container from East Asia to the west coast of North America is nearly 1.8 times higher than it was at this time in 2019. To send one to the east coast, it's 2.1 times more expensive.

But everyone else should prepare for several more months of frustration. We've already seen unexpected reverberations from the shipping crisis: skyrocketing freight rates have caused some pet food to vanish from shelves; a semiconductor shortage has idled auto factories; and chlorine shortages are disrupting pooltime dreams. businessinsider.com

Apple banks on physical stores as economies reopen, retail chief says

Team esports concept from U.K. to open 500 locations in U.S. malls and centers

Clothing sales are spiking even higher than 2019 levels

Best Buy to spend $1.2 billion with diverse businesses

Pep Boys Celebrates 100th Anniversary by Redefining the Automotive Service Experience and Kicking Off a Cross-Country Centennial Road Trip

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Older legacy access control systems leave door open to cyber-attacks, warns Genetec

Genetec Synergis™ helps takes the pain out of access control migrations

MONTREAL, June 24, 2021 -- “Legacy access control systems use outdated technology that leaves them vulnerable to cyber threats, and can cause damage beyond the door,” cautions Thibault Louvet, Director - Access Control Product Group at Genetec Inc., a leading technology provider of unified security, public safety, operations, and business intelligence solutions.

With the average cost of a data breach being US$3.9* million in damages, it’s never been more important for organizations to be educated on the risks associated with legacy systems and the advantages that a new cyber-secure access solution can offer.

Access Control Systems (ACS) are a powerful infrastructure tool that tend to be overlooked as a potential vector for cyber-attacks. In the past, they existed primarily to open and close doors but are increasingly used by businesses and government organizations to implement access rules, analyze building usage, and monitor for aberrant behavior and access requests within their facilities. As access control systems tend to be connected to an organization’s network, if a cybercriminal breaches a legacy ACS, not only can they open and close doors without permission, but they can also gain control over any other system that is connected to the network.

Once a network has been breached, all data becomes vulnerable, including sensitive information stored internally. Threat actors often look to move around a breached network to search for information that will generate the most financial gain. This usually leads them to valuable data like personal information about employees or customers, or an organization’s private financial data.

A unified access control system that uses the latest cybersecurity standards to secure communication, servers, and data such as Genetec Security Center Synergis™ can not only better protect an organization’s assets and people but help them improve their business operations and decision making that go beyond locking and unlocking doors. By choosing an open architecture IP-based access control system, organizations have the power to upgrade to the latest supported technology at any time, move at their own pace, and work within their available budget.

For more information about how to migrate your access control system, please go to: https://www.genetec.com/a/access-control-migration

More Federal Funding to Fill Cybersecurity Gaps
Department of Energy asks Congress for $201 million to bolster cybersecurity in wake of attacks
The Department of Energy is asking Congress for $201 million in its budget request for the fiscal 2022 to address digital vulnerabilities after a steady uptick in sweeping cyberattacks.

The $201 million request, up from $157 million in 2021, will help bolster the federal agency’s cybersecurity efforts and address any “gaps” in the supply chain and tech infrastructure.

Secretary of Energy Jennifer Granholm told the Senate Armed Services Committee on Thursday that the department also needs the funding to upgrade software, hire more cybersecurity professionals and to develop new cyber policies and standards.

“As we have seen, the Colonial Pipeline incident made it clear that the fact that we do not have cyber standards on pipelines like we do on the electricity sector, that suggests a major hole,” Granholm said referencing a sweeping ransomware attack on the nation’s largest gasoline pipeline.

“I will say that it is clear that there are gaps, not so much in our ability internally to respond but in our ability to see what is happening in the private sector,” she said, adding that the Biden administration was reviewing methods in which the private sector could better collaborate with the government on the heels of cyberattacks.

The Biden administration is asking Congress for $9.8 billion for federal civilian cybersecurity in 2022, nearly a 15% increase over 2021. The Pentagon is requesting $10.4 billion in 2022 for its cybersecurity budget request.

The increased investment in cybersecurity follows a steady drumbeat of ransomware attacks that have directly impacted Americans and hampered logistics and services in the United States. cnbc.com

Shopify Accounts Hacked in Four Countries
After their Shopify accounts were hacked, sellers expected the company to help them recoup the thousands of dollars they lost

The company, which didn't comment for this story, denied responsibility to the merchants.

Shopify has made it incredibly easy for sellers to set up online businesses. But when sellers are hacked, they're finding the Canadian e-commerce company does little to help them recoup their losses — and even demands that victims pay the company back.

Insider spoke with seven Shopify merchants from four countries, all of whom outlined how they lost thousands of dollars via the platform and found Shopify unable or unwilling to help them recoup their losses. Some requested their names be changed or anonymity to protect their businesses from further losses.

Sellers said the hack worked like this: Hackers would get access to the seller's Shopify account and switch banking information, so funds from a seller's store would deposit into the scammer's account.

Mark, a seller on Shopify since 2019 who has been renamed for this story, lost more than $111,000 in payouts to a bank account that was not his, according to documents seen by Insider. "My heart just dropped out of my chest," he said.

Kate Tuff, who runs the Sweet As Candy shop, lost more than $18,000 in sales. A scammer also made a fraudulent $4,800 cash advance from Shopify.

In all of these cases, Shopify told sellers it was their responsibility to recoup the funds and secure their merchant accounts, according to email correspondence between the sellers and the e-commerce company viewed by Insider.

"When it comes to matters involving missing payouts resulting from any of our merchants accounts being compromised, Shopify is not able to assume responsibility for any losses or damages that may be incurred as a result," Shopify wrote to the Texas apparel-shop owner. businessinsider.com

Business Email Compromise Attacks on the Rise
71% of organizations experienced BEC attacks over the past year
Business email compromise (BEC) attacks are one of the most financially damaging cyber crimes and have been on the rise over the past year. This is according to GreatHorn report, which revealed that spoofed email accounts or websites were the most experienced form of a BEC attack as 71% of organizations acknowledged they had seen one over the past year. This is followed by spear phishing (69%) and malware (24%).

Data from 270 IT and cybersecurity professionals were collected to identify the latest enterprise adoption trends, gaps and solution preferences related to phishing attacks.

Spoofing identifiers to harvest credentials takes precedence
Nearly 50% of all BEC attacks result from the spoofing of an individual’s identity in the display name. Among those spear phishing emails, cybercriminals are also using company names (68%), names of individual targets (66%), and the name of boss/managers (53%) to conduct their attacks.

Remote employees and finance departments hardest hit by BEC attacks
One of the largest factors that has played into the rise of BEC attacks and impersonation efforts is the continued remote work policies in place with the majority of organizations.

30% of organizations state that over 50% of links received via email lead to a malicious site, demonstrating the never ending assault on inboxes perpetrated by criminals. On top of that, respondents identified that their finance departments have the largest target on their backs as 34% said finance-related employees are the most frequent victims of spear-phishing attempts. helpnetsecurity.com

Top Data Security Investments
Most businesses to accelerate data security investments in 2021
71 percent of enterprise executives reported their organization’s data and AI timelines have accelerated since the onset of the COVID-19 pandemic, with one in four reporting their data initiatives have significantly accelerated, according to Protegrity.

When asked their organization’s top data security priorities for the next six-to-12 months, 72 percent of respondents cited the need to speed up their ability to use secure data for AI and advanced analytics initiatives.

Findings from more than 600 executives in the U.S. – including 382 security and privacy executives and 228 data and AI executives – reveal key insights on the impact of data security investments on AI and advanced analytics initiatives. Comparison between the two executive audiences found that data and AI executives were more likely to cite the need to accelerate their ability to use secure data for AI (78 percent) compared to privacy and security executives (69 percent).

“In response to the COVID-19 pandemic, enterprises have undergone a dramatic acceleration of digital transformation, cloud, and AI initiatives,” said Rick Farnell, president and CEO of Protegrity. helpnetsecurity.com

How to convince your boss that cybersecurity includes Active Directory

The Fight to Unionize Amazon Workers Continues
The Teamsters consider a new emphasis on organizing Amazon workers

The International Brotherhood of Teamsters, which represents over one million workers in North America in industries including parcel delivery and freight, will vote on whether to make it a priority to organize Amazon workers and help them win a union contract.

“Amazon is changing the nature of work in our country and touches many core Teamster industries and employers,” states the resolution, which will be voted on at the Teamsters convention on Thursday. The company “presents an existential threat to the standards we have set in these industries,” it says.

The resolution states that the union will “supply all resources necessary” and will eventually create an Amazon division to help organize workers at the company.

It does not elaborate on the timing for such a division or how much money or manpower the union will devote to the effort, and a union spokeswoman did not respond to a request for comment on those particulars. Last year the union had revenue of more than $200 million, according to Labor Department filings.

The union will focus on building support from both Amazon workers and from other warehouse and delivery workers and community members, and it aims to bring the company to the bargaining table by orchestrating strikes, boycotts, protests and other actions.

Amazon defeated a conventional campaign organized by a retail workers union at a warehouse in Bessemer, Ala., this year, after which a number of union leaders suggested that a shift to the strategies highlighted by Mr. Korgan might be more fruitful. Those union leaders pointed out that federal labor law gives employers large advantages during election campaigns — allowing companies to hold mandatory anti-union meetings, for example — and that the government cannot fine employers who violate the law. (The retail workers union is challenging the results of the election at the Bessemer warehouse, accusing Amazon of intimidating workers.) nytimes.com

Amazon Isn't Alone
Nike, Burberry, H&M and others under fire for torching their own products
Amazon came under fire this week after a former employee told ITV, a British news channel, that employees at a warehouse in Scotland were instructed to destroy 130,000 unsold and returned items in just one week — totalling more than a million items per year.

But Amazon is far from the only offender.

Brands including Burberry, Urban Outfitters, H&M, Nike, JCPenney, Michael Kors, Eddie Bauer, and Victoria's Secret have all been accused of doing the same, according to various reports in recent years.

Burberry came clean about burning clothes and said it "used specialist incinerators that harness energy from the process." The destroyed goods totaled about $37 million, compared to Burberry's revenue of $3.8 billion that year.

The amount of garments that people have been buying annually has been steadily increasing since the early 2000's. Insider previously reported that the fashion industry makes up "10% of humanity's carbon emissions, dries up water sources, and pollutes river streams."

Chanel and Louis Vuitton have also participated in the burning of merchandise. Richemont, the Swiss company behind brands like Cartier and Montblanc, said in 2018 it had destroyed more than $500 million worth of watches to keep them out of the hands of resellers. businessinsider.com

Five Below expands same-day delivery to 1,100 stores

After the great Amazon flake, Target inks huge deal in Queens

Mt. Juliet, TN: Suspect sought after $100K in jewelry grabbed from store
An investigation is underway after a man ran away with more than $100,000 worth of jewelry from a Mt. Juliet jewelry store Thursday. The theft happened around 4 p.m. at American Jewelry on South Mt. Juliet Road. Mt. Juliet police reported the suspect began to browse merchandise with a store employee before he leaned over a counter, grabbed multiple pieces of jewelry and ran away. Video surveillance captured the suspect in the act and detectives are hoping someone will recognize him. wkrn.com

Cops ‘Throw Shade’ At Mall Sunglasses Theft Suspect with Bust
After an investigation, Kennewick Police this week have arrested a 30-year-old woman, accused of theft, possession, and sale of stolen property. Samantha Kidder-Simons is now in the Benton County jail facing multiple counts on these charges, and when you sell stolen property it becomes a felony. Officers began to investigate multiple burglary reports of sunglasses from the Sunglass Hut located inside Columbia Center Mall. The kiosk is near the food court, just down from the Build A Bear location. Police didn't say how long these were going on, but were able to gather enough evidence to arrest Simons. Authorities say she not only stole multiple pairs of high-end glasses, she apparently was selling them to generate income. No specifics were released about her methodology, but now she's been caught and is facing a good amount of jail time if convicted on all the counts. newstalk870.am

Hopkinsville, KY: Employee charged in connection with alleged $22,000 fraud against Verizon
Two Hopkinsville men have been charged in connection with an alleged scam that resulted in the theft of over $20,000 in cell phone services. An arrest warrant for 24-year old Tevin Clea says between October and December of last year while he was an employee of Verizon Wireless, he provided over $22,000 in phone services which were not paid for by creating “dummy” accounts. Clea allegedly admitted to his part in the scheme and said someone was paying him to participate in the fraud. The warrant lists 30-year old Skylar Scalia as a co-defendant and Scalia was arrested Wednesday, with the jail website listing his charge as felony theft. Clea is charged with complicity to felony theft, $10,000 or more. whopam.com

2 busted, 1 sought after pilfering $10,000 from Stanislaus, San Joaquin stores
The Manteca Police Department busted two of the suspects after they tried to steal more than $4,000 worth of fragrance from Ulta. The Manteca Police Department said they've made two arrests in an organized retail crime group that's pilfered $10,000 worth of items from stores in San Joaquin and Stanislaus counties. Police said Bakari Franco, 36; Rafael Martinez, 29 of Modesto; and a third suspect, only identified as a white man, tried to steal $5,000 in merchandise from Manteca stores on June 9. The bust happened as Franco and the third suspect allegedly ran out of Ulta in Manteca with $4,000 worth of fragrance before being met by police. Authorities said the two men tried to run into a waiting vehicle driven by Martinez, dropped the fragrance and ended up running through the shopping center. Franco and Martinez were arrested, but the third suspect was not found.

According to police, the trio was also seen driving in the parking lot after stealing $500 in shoes from Famous Footwear and $500 in tools from Harbor Freight before trying to steal from Ulta. During the bust, police said they found the merchandise from Famous Footwear and Harbor Freight in the vehicle. The trio is suspected of multiple thefts from Ulta Manteca on June 5, 6, 7, and 9 where they targeted Ulta and Tilly's. Police said they returned five times in the same week. They're also suspected of thefts at a Turlock Ulta that happened the same day as the theft in Manteca. Police said Ulta has outstanding theft cases on Franco at Modesto, Turlock, Riverbank, and Stockton stores over the past year for an estimated 16 other thefts. The group is suspected to be responsible for more than $10,000 in known theft from stores in San Joaquin and Stanislaus counties. Police said Franco's arrest has helped other agencies close dozens of investigations. "The group is believed to be active in retail theft daily in Stanislaus County and surrounding areas," the department said on Facebook. "Bakari and Martinez are suspected of being users of Fentanyl and use retail theft for financial gain." Franco remains in custody on charges of Organized Retail Crime, Grand Theft, Obstruct/Resist an Officer and a felony warrant for Grand Theft from Modesto, pending court proceedings. abc10.com

New Zealand: Three arrested over $100k electronics smash & grab raid
Three men have been arrested over a ram-raid at an electronics store in Pukekohe where $100,000 of items were stolen. The offenders used a stolen vehicle to gain entry to the store on June 6 before fleeing with mobile phones, smartwatches, speakers and other high-value items. Many items have been recovered, but police are warning the public to be “vigilant” when buying from private sellers. If items turn out to be stolen, people run the risk of facing prosecution for receiving stolen property. A Police helicopter was dispatched soon after the burglary occurred. It found the vehicle linked to the burglary and some stolen items were recovered. stuff.co.nz

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Robberies, Incidents & Thefts

Bessemer AL: Elderly woman stabbed multiple times outside Walmart
An elderly woman was stabbed during an attempted carjacking that happened Tuesday in Bessemer. Police there say the incident happened around 3:30 p.m.at the Walmart off of Academy Drive. The woman had a stab wound to her leg and a cut on her arm. "The victim courageously stood her ground and did not give in to the suspect's demands to give up her purse. Officers began searching the area for the suspect while the victim was receiving treatment from Bessemer Fire Department. Officers located the suspect nearby based on a description from the victim and available security camera footage," Bessemer police reported in a news release. The suspect in the case is facing robbery and assault charges. The victim was transported to UAB West for treatment of her injuries. facebook.com

New Caney, TX: 4 sought in Burglary of Family Dollar
Authorities are looking for a group of four tied to a burglary at a Family Dollar store early last week in New Caney. On June 14, the four allegedly burglarized the Family Dollar at 14671 FM 1485. The group had their faces covered with their shirts during the incident, Three of the suspects are described as white males, two with a heavy build and one with a medium build, all wearing dark-colored shorts. A fourth suspect is described as an Hispanic male with a small build and wearing shorts with a U.S. flag design, according to the sheriff’s office. houstonchronicle.com

Evansville, IN: Police Searching for Suspect in Kay Jewelry Store Robbery
The Evansville Police Department is asking for your help identifying a man they believe stole merchandise from Kay Jewelers on North Green River Road. According to the police report provided to local media outlets, the theft occurred on Friday, June 18th, 2021 around 5:30 p.m. EPD says the suspect (pictured above in the above surveillance photo) is a black male who was wearing a grey t-shirt, red athletic shorts, and a blue Chicago Cubs baseball hat at the time of the theft. A second photo provided by the Department (below) shows the man was also wearing white shoes along with what appears to be a black mask covering his nose and mouth. wkdq.com

Long Beach, CA: LBPD Busts Burglary Suspect In Downtown/Retro Row Break-Ins/Thefts
LBPD has located and arrested a suspect following a string of commercial burglaries in LB's downtown and Retro Row areas [and some beyond] between June 19 and June 21. In a release, LBPD says its Burglary Detectives arrested Corey James Swayney, 20, of Long Beach, booked on suspicion of commercial burglary and an outstanding warrant. "During each of the incidents, a suspect broke into the business through the front door and stole cash and/or electronic devices. Detectives immediately began investigating the series of burglaries, and through video surveillance footage, were able to quickly identify that one suspect was responsible for at least eight of the incidents."

At this time, detectives believe the suspect is responsible for restaurant burglaries in the following locations: 200 block of The Promenade North; 1800 block of Ximeno Avenue; 100 block of Atlantic Avenue; 2100 block of East Broadway (x2) ;1800 block of East 7th Street; 3700 block of Long Beach Boulevard (x2) Suspect Swayney is being held on 550,000 bail, and LBPD plans to present the case to the DA's office on June 25 for filing consideration. lbreport.com

● AT&T – Lynchburg, VA – Armed Robbery
● C-Store – Philadelphia, PA – Robbery
● C-Store – Downers Grove, IL – Armed Robbery
● CVS – Monroe Township, NJ – Robbery
● Family Dollar – New Caney, TX – Burglary
● Jewelry – Evansville, IN – Robbery
● Jewelry – Mt Juliet, TN - Robbery
● Jewelry – Westland, MI – Robbery
● Jewelry – Schaumburg, IL – Robbery
● Jewelry – Clifton, NJ – Robbery
● Jewelry – Saint George, UT – Robbery
● Jewelry – Kissimmee, FL – Robbery
● Mall – Berkeley, CA – Burglary
● Marijuana – Haverhill, MA – Armed Robbery
● Pharmacy – Petersburg, VA - Robbery
● Restaurant – Long Beach, CA - Burglary
● Restaurant – Indianapolis, IN – Burglary
● Sunglasses – Kennewick, WA – Burglary
● 7-Eleven – Oak Brook, IL – Armed Robbery
● 7-Eleven – Mishawaka, IN – Armed Robbery

Daily Totals:
• 15 robberies
• 5 burglaries
• 0 shootings
• 0 killed

Weekly Totals:
• 75 robberies
• 21 burglaries
• 2 shootings
• 1 killed

Click to enlarge map

None to report.

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