In Case You Missed It

July's Moving Ups

31 New Senior LP's - 22 Promotions - 9 Appointments

'Retail America - the Opioid Epidemic's Silent Victim.'
Let's Pass INFORM Act

The D&D Daily's Call to Action Program Starts Monday
Let's Get INFORM Passed & On Trump's Desk

This is Your Bill - Your Opportunity - Your Obligation

With the INFORM Act currently being considered in both Houses the retail industry has a unique opportunity to almost eradicate the biggest legalized fencing operation in history. As in many regards Amazon marketplace along with other market places represents the largest fencing operation in the world.

All of which are fueling and enabling the nations opioid epidemic. As 'Retail America is the Opioid Epidemic's Silent Victim.'

With virtually every law enforcement officer involved in the ORC effort will testify to the fact, that ORC in their respective areas is almost solely driven by the opioid epidemic crushing this nation and spiking now during the COVID-19 pandemic, according to recent reports.

And our industry, which carry's the torch in this fight, has an obligation right now to get involved, get your retail executive leadership involved and communicate support for the two bills at each step during its journey through the congressional processes. As it won't be easy and there will be opposition i assure you.

As the last time we were in a similar fight in Congress, which was being driven by Joe LaRocca when he was VP LP at the NRF, we got very close to being enacted. The issue then was, which we found out a few years after the loss, that the National Flea Market Association immediately built a lobbying effort to specifically counter the bill that would have required their vendors to prove purchase of goods.

This lobbying effort, totally non-existent prior to the bill, had an impact. The degree to which is unknown even today. However just take a look at their current lobbying team and you'll see a strong effort.

And Amazon has a significant lobbying arm very well established and already in the game. So we need every retailer in America sending letters, emails, and calling their elected officials. Remember this is your bill. It's your opportunity to make an impact on over a $30 billion problem and in the process save some lives and make a difference.

Next week you'll have the details, contact info, and supporting evidence as we build a tool box for you to use. In the meantime, if anyone has suggestions, input, and wants to lend their time or data please email us and let's go win this battle. Thanks. -Gus Downing

Will Anything Really Change?
Bezos Admits To Serious Issues For Retail Brands In Antitrust Inquiry. What Will Change?
In 2017 I purchased a Macbook Air laptop from Amazon. Nearly a year later, a university campus police officer contacted my company, asserting that the laptop was stolen property and needed to be returned to the campus. After a frustrating initial experience with Amazon customer service I was eventually directed to their executive relations team who reviewed the police documentation carefully and promptly refunded me.

I had unwittingly purchased stolen goods from Amazon.

The fact that Amazon occasionally sells stolen goods was one of the many topics brought before Jeff Bezos today at the House Antitrust Subcommittee hearing. Bezos had satisfying answers to some questions, and admitted he didn’t know about some fairly critical issues. Here’s a summary of the key issues identified for brands selling on (or to) Amazon, and what the company is likely to do about them.

1. Amazon has used seller data to launch competing private-label products

Unfortunately, this is not clear that the inquiry will really change much.

2. Counterfeit goods are a known issue. Who should bear the cost of resolving it?

It was posed to Bezos that Amazon makes money from sales of counterfeit goods on its site. He responded that this is true “Only in the short term. I would rather lose a sale than lose a customer.”

Is it fair for Amazon to stick this responsibility with brands, when it has arguably facilitated the ugly situation many brands are in?

3. Amazon is the ‘only game in town’ for many small businesses

4. Un-checked seller identities can lead to sales of stolen goods and counterfeits

Connected with the concern around stolen goods is how rigorously Amazon verifies seller identity. This was not information that Bezos could comment on. This month, Amazon announced they would publish seller contact information on its site. (something I have personally pushed for) But this is only as good as how accurate we know the information to be. Sellers can easily setup a fake address, but if Amazon needs to verify it (through mailout, phone call, desk research, etc), everyone can have more confidence that bad actors will be initially deterred and eventually caught.

What Amazon will do now

Bezos committed to following up on several topics related to regaining brand trust, including:

- If Amazon requires a phone number from sellers, and how does Amazon actually verify name, address, and phone number of sellers.
 
- Providing the outcomes of the internal investigation into non-public aggregate sales data being used to develop Amazon private label brands.

- Investigate the claim from Popsockets that Amazon only took care of counterfeiters after committing $2M in ad spend on Amazon.

In Bezos’ opening testimony, he said that trust from consumers is critical to the success of the Amazon, and that the company is committed to “making principled decisions even when they are unpopular”. I would consider all of the items above worthy of having more ethical principles applied to them. Is that comment purely lip-service, or something that Bezos believes in? As it stands, Amazon has a lot of homework to do to regain the trust of retail brands and sellers.

Editor's Note: Bezos, according to his own words, only committed to answering the concerns/questions and working with law enforcement (in yesterday's article). When pressed by another representative, however, it was unclear as to what he actually was committing to. See yesterday's Daily for that full story and the actual video segment or watch here.
 

Report from ECR Retail Loss Group and Genetec:
Academic-Led Report Calls for Retailers to Adopt
More Strategic Use of Video Analytics

ECR Retail Loss Group reports retailers should rethink their near $2B annual spend on video as an integrated business tool rather than just a security blanket

Report recommends creation of video tech ‘Tsar’ to ensure overarching strategy and better organization-wide adoption

A new ECR report, authored by Professor Emeritus Adrian Beck of the University of Leicester, calls for retailers to leverage video analytics more strategically, to control costs, improve operations and increase profitability. Commissioned by the ECR Retail Loss Group and supported by an independent research grant from Genetec Inc. (“Genetec”), a leading technology provider of unified security, public safety, operations, and business intelligence solutions, the report offers practical advice for retailers on extracting maximum value from their video surveillance systems.

The report, 'Reviewing the use of video technologies in retail' is drawn from in-depth interviews and site visits with representatives from 22 retailers based in the US and Europe. These include some of the largest retailers in the world, with collective sales of over $1 trillion - equivalent to approximately 12% of the total US and European retail market.

The report summarizes the ways in which video systems in general, and video analytics in particular, are being deployed across retail businesses, including their use by legal teams for health and safety compliance, and monitoring slip, trip, and fall incidents. It also covers business intelligence applications - such as improving customer service through better staff response times and product availability; generating heat maps and customer dwell times; people counting and queue monitoring; delivery alerts; and improving pick accuracy. Given the need to extract value from across the organization, a key recommendation of the research is the appointment of a video 'Tsar' with overall responsibility for the strategic oversight of video systems deployed across the business.

Adrian Beck, Professor Emeritus at the University of Leicester and author of the report commented: "While video technologies have been used in some form or other in retailing for over 40 years, the research found few examples of retailers where its role, purpose, and capability to contribute to business success was clearly articulated. Video analytics is a technology with a broad-ranging and rapidly evolving capability, but what seems clear from this research is the need for explicit leadership, greater application across retail functions, improved integration of video technologies with existing systems, and better alignment of video system design with organizational objectives."

"Video has over the years become an even more indispensable tool for the whole business, not just the security team," said Scott Draher, VP Asset Protection and Safety at Lowes. "This landmark report provides an essential guide to asset protection and loss prevention leaders on how to proactively manage video, and the data it creates. It not only promotes ways of applying critical thinking to the use of video analytics, but most importantly clears the path on ways they can start to shape a company-wide approach that enshrines video as more than just a tool for security, but an asset for the whole company."

Click here to download the report.
 

Fredric Klein, former LP Leader,
Passes Away at Age 79

Citizens Are Increasingly Worried About How Companies Use Their Data
With data privacy important to almost every American, more than two-thirds of those surveyed say they don't trust companies to ethically sell their data.

Americans are increasingly concerned with how companies are using their data, with nine out of every 10 citizens wanting the government to take on a greater role in the protection of their information, according to a representative survey conducted by professional services firm KPMG.

The survey of 1,000 respondents in the United States found that nearly every American (97%) considers data privacy to be an important issue, with 87% labeling digital privacy as a human right. Yet more than two-thirds of respondents do not trust companies to ethically sell their information, and more than half do not even trust companies to use their information in an ethical way. darkreading.com

Europol:
No More Ransom: how 4M victims of ransomware have fought back against hackers
While the world is in the grip of a coronavirus outbreak, another virus is quietly wreaking havoc. Although this virus has been around for years, its cases have been rising alarmingly in the past few months and has brought critical activities such as hospitals and governments to a standstill. This virus is ransomware, but a free scheme called No More Ransom is helping victims fight back without paying the hackers.

Celebrating its fourth anniversary this month, the No More Ransom decryption tool repository has registered since its launch over 4.2 million visitors from 188 countries and has stopped an estimated $ 632 million in ransom demands from ending up in criminals’ pockets.

Powered by the contributions of its 163 partners, the portal has added 28 tools in the past year and can now decrypt 140 different types of ransomware infections. The portal is available in 36 languages.

You can consult all the key figures in our dedicated infographic.

How No More Ransom works

No More Ransom is the first public-private partnership of its kind helping victims of ransomware recover their encrypted data without having to pay the ransom amount to cybercriminals.

To do this, simply go to the website nomoreransom.org and follow the Crypto Sheriff steps to help identify the ransomware strain affecting the device. If a solution is available, a link will be provided to download for free the decryption tool. europa.eu

NIST: General Access Control Guidance for Cloud Systems
NIST has published Special Publication (SP) 800-210, General Access Control Guidance for Cloud Systems, which presents an initial step toward understanding security challenges in cloud systems by analyzing the access control (AC) considerations in all three cloud service delivery models. nist.gov

REGISTER TODAY: CISA to Host Third Annual National Cybersecurity Summit

Virtual event will be a series of webinars kicking off Sept. 16

This year, CISA will be doing things a bit differently. The National Cybersecurity Summit will be moving to a virtual format. We are excited to continue the legacy by providing meaningful opportunities to discuss cybersecurity, this time in a virtual environment.

CISA’s Third Annual National Cybersecurity Summit will be held as a series of two-hour webinars every Wednesday for four weeks, beginning September 16 and ending October 7. Each week will have a different theme and the presentations will highlight topics relevant to CISA’s mission and include keynote speeches and remarks from leadership from across the government and private sector.

This year’s themes are:

• Sept 16: Key Cyber Insights
• Sept 23: Leading the Digital Transformation
• Sept 30: Diversity in Cybersecurity
• Oct 7: Defending our Democracy

You can now register for the event here. For more information, click here.

Amazon's Q2 sales up 40% to 88.9 billion

Net profit doubled from the year-ago period to a record $5.2 billion.

Amazon is one of the biggest beneficiaries of the COVID-19 pandemic. Amazon's paid unit, or products sold on its site, grew 57%, online sales jumped 49%. Amazon Web Services up 29%. Amazon's overseas up 38% to $22.7B. Amazon to spend $2B on COVID-related initiatives this quarter, on top of $4B it spent last quarter. businessinsider.com

With Online Sales Up 30%, Fraudsters Are Taking Advantage
Forter, a company specializing in online fraud detection, has seen a 300% to 500% increase in fraud over the past few months.

As the growth of online and curbside pick-up has grown exponentially since the coronavirus store closures, the volumes of both legitimate users and fraudsters have also increased significantly. Retailers are challenged with creating systemic processes for acquiring the maximum number of new honest customers but insuring that dishonest customers are prevented from engaging in fraudulent activity.

Additionally, as more customers turn to online purchasing, new accounts are being opened. The decline rate for new accounts is 40-50% on average but within those declines are some legitimately desirable customers, so for retailers even a shift of 5% in approvals of valid customers can make a significant difference in terms of customer experience, increased revenue and loyalty.

Curbside pick-up has created an ideal environment for fraud activity

Forter, which processes over $200 billion in online commerce transactions globally, states that as curbside pick-up and contactless delivery increases, an ideal environment is created for fraudsters to take advantage of untracked curbside pick-ups and of packages left at customer residences due to the pandemic-driven discomfort with signing for deliveries. Even some of the “friendly fraud” has increased where customers complain they did not receive a package and then are being reimbursed for items they actually did receive.

Michael Reitblat, Forter’s CEO, said, “The challenges with curbside pick-up as compared to shipping items to a customer’s residence are: 1) no shipping address, 2) retailers are not able to stop a fraud shipment once it is processed, and 3) there are loopholes allowing customers to potentially pick up goods multiple times.” As retail stores closed due to coronavirus and many stores quickly reacted by creating curbside pick-up, the infrastructure to help prevent fraud lagged behind.

According to the Forter Special COVID 19 Fraud Report, with increased consumer traffic, fraudsters look to exploit vulnerable touch points in the shopper journey where fraud prevention measures are not as robust. forbes.com

Walmart's Flipkart to offer 90-minute deliveries in India

Bowie County, TX: Lowe’s store robbery case heads for grand jury
The cases of two men accused of stealing from a local home improvement store in late May and running from police in early June are headed to a Bowie County grand jury. Thomas Earl King Jr., 23, and Martell Devon Johnson, 26, allegedly sped away from Lowe's in Texarkana, Texas, after being confronted May 28 by store employees over some tool and battery kits, according to a probable cause affidavit. King allegedly walked out of the store without paying and showed employees a gun in his waistband before getting in the car.

On June 4, investigators were contacted by staff at Tri-State Pawn Shop in Texarkana. King had allegedly been in the pawn shop attempting to sell tool kits, which were still in their original packaging. The same day, Texarkana, Ark., police attempted to pull the Nissan over but the driver, allegedly Johnson, fled. Texarkana, Texas, police attempted a traffic stop. The car sped away and a pursuit ensued. If indicted for aggravated robbery, the men face five to 99 years or life in prison if convicted. texarkanagazette.com

Rocky Mount, VA: Man charged for stealing $6,000 worth of merchandise from Exchange Milling Company
The Franklin County Sheriff's Office says they have arrested one man in connection to a breaking and entering at the Exchange Milling Company on June 13. According to the sheriff's office, surveillance footage showed a white male entering the store that evening and stealing over $6,000 worth of merchandise. wset.com

Mayfield Heights, OH: Shoplifter tells officers they will have to shoot him
When officers stopped a Walmart shoplifter July 16 near Circle K, he was uncooperative and said he was going to take their guns and they would have to shoot him. He had stolen two backpacks and filled them with Red Bull, earbuds, clothing and food, valued at a total of $590. The Cleveland man, 51, was eventually identified and charged with theft and failure to identify. newsbreak.com

Norton, OH: Update: Woman, 65, sentenced for stealing from Ohio store, using Pit Bulls to attack employee
65-year-old woman has been sentenced in connection with a store robbery and assault on an employee using pit bulls. Linda Snow was sentenced in court on Thursday, according to the Summit County Prosecutor’s Office. She previously pleaded guilty to felonious assault. The aggravated robbery charge against her was dropped.

She is expected to spend the next four to six years in prison. On Aug. 16, Snow and her daughter, Jennifer Clark, 38, stole a cart full of food from a market in Akron, Ohio. When an employee tried to confront them in the parking lot, Snow opened the doors of her vehicle and let out three pit bulls. Two of the dogs attacked the employee, who suffered serious injuries. Snow, Clark and Clark’s 11-year-old son then drove away with the dogs. myfox8.com

San Diego Organized Retail Crime Alliance Releases July Newsletter
In SDORCA's latest newsletter, see tips for the "new normal," how to identify suspects in an era of mask-wearing, information about upcoming (virtual) meetings, and much more. Read more here

Two Californian's Get 33 months each for Passing Counterfeiting $100's at Retailers in Idaho