Eight suspects who were allegedly involved in credit card skimming operations in western Michigan are now being charged in federal court. The suspects face charges of conspiracy to commit wire fraud, wire fraud, and access device fraud.

According to police, the fraudsters hid credit card skimmers at gas stations in small towns throughout southwest Michigan. When unsuspecting customers used pumps that had been tampered with to purchase fuel, the devices would harvest the data from the card’s magnetic stripe. The suspects reportedly recovered the files containing the stolen credit card information using a gas pump key and then encoded it onto manufactured credit cards. Some of the cloned cards were used to purchase innocent-looking gift cards to Meijer and other big-box stores.

When electronic skimming devices are placed inside gas station pumps, they are completely concealed from view. Criminals can use keys to access the interior of a pump in a matter of minutes. Devices are often placed at gas stations in low-traffic areas (especially if they close at night) or at pumps located at a considerable distance from the actual building.

The recent shift to chip-and-PIN technology will not protect customers from a skimming attack, experts say. Gas stations are not required to update their credit card readers at the pump until 2017.

In recent weeks, inspectors with the Michigan Department of Agriculture and Rural Development (MDARD) have been working to locate skimming devices and warn consumers about the potential threat of card fraud. Customers are cautioned to stay alert, check bank account activity regularly, and use pumps closer to the store when possible.

“Bottom line, this is fraud,” said Jamie Clover Adams, MDARD director. “This is stealing someone’s personal information for criminal use. These inspections are just another way MDARD is protecting consumers at the pump. Through the collaborative efforts with the Michigan Petroleum Association, U.S. Secret Service, Federal Bureau of Investigation and local law enforcement, we’re letting these criminals know Michigan is not open for business.”

The post Credit Card Skimming Ring Arrested in Michigan appeared first on LPM.

While loss prevention may be a universal focus for retail organizations, the way that the loss prevention program is approached and implemented can provide us wide a wide spectrum of possibilities and a broad scope of challenges based on the particular type of organization. Here we will take a closer look at the security and loss prevention program for an icon in the quick service restaurant industry.

McDonald’s™. The name is instantly recognizable, conjuring up images of Big Mac™ sandwiches, Chicken McNuggets™, and World Famous Fries™. No matter where your travels take you across the globe, chances are you will find a McDonald’s, and chances are the hamburger you purchase in Doha, Qatar, will taste and look identical to the one you purchase in Peoria, Illinois.

McDonald’s is the juggernaut of quick service, the restaurant chain that eclipses its competition by an order of magnitude. Think your retail chain is pretty big? McDonald’s gets 27 million visitors per day, and that’s in the United States alone.

From a retail security and loss prevention program perspective, one can imagine not only the types of incidents that can occur at your average McDonald’s location, but the sheer number of them as well. To understand why this might be, just consider what goes on at the nearly 15,000 McDonald’s restaurants scattered throughout the United States through the dual mechanisms of lobby dining and drive-through service.

At the end of the day, it is truly remarkable that such a small team is so effective in protecting what just might be the most identifiable brand across the globe. It ultimately comes down to the attitude of retail security pervasiveness throughout the organization, as Senior Director Rob Holm puts it, “from the boardroom to the crew room.”

The local McDonald’s is often much more than a spot to buy food; it’s a well-known landmark in whatever city it happens to be in. The Golden Arches™ are often occupied by people seeking a place for morning meetings or parents enjoying time with their children over a Happy Meal™ in the Playplace restaurants.

For a demographics comparison, this author also visited several Southern California McDonald’s restaurants during the writing of this article. The drive-through lanes are occupied with everything from Bentleys to barely running jalopies. Translation—when asked who their demographic is, McDonaldÕs can confidently and with a straight-faced answer, “Everyone.”

When considering all of the circumstances that can and do occur at your average McDonald’s, one starts to form a picture of the lay of the land when it comes to loss prevention programs and security protection nationwide. To that end, McDonald’s possesses one of the most unconventional, yet effective, loss prevention teams in the business. They call themselves U.S. Security, which sounds as if it is some flavor of Special Forces SWAT team or other such covert group. And yes, they really are everywhere.

McDonald’s U.S. Security Team

McDonald’s may be mainstream today, and its modus operandi might seem fairly conventional, but when the company founder Ray Kroc stumbled upon the McDonald brothers in the 1950s, he knew he had something special. It wasn’t so much the food (barbeque) or the location (sleepy San Bernardino, California), it was the whole package. Implementing a Ford-style food assembly line that produced burgers ultra-fast, McDonald’s became an instant hit, expanding like no other business before it, and to be honest, probably any business that comes after it.

Robert “Rob” Holm, Senior Director

Kevin Trimble, Director

Octavio Jara, Director

Osama “Sam” Ayache, Regional Security Manager

William “Bill” Ball, Regional Security Manager

Don Carman, Regional Security Manager

U.S. Security takes the uniqueness of principle that is McDonald’s and forges its own path in the loss prevention space. The result is a retail security organization that resembles exactly no other loss prevention program in the business. To be clear, U.S. Security seldom uses the term “loss prevention,” nor do they embrace the other industry alternative “asset protection,” either. Instead, they prefer to use the “security” moniker, although physical security is only a small part of what they actually do. And guess what—they do a stellar job with far fewer people than one might think possible.

Hugo Cortez, Regional Security Manager

Ruben Martinez, Regional Security Manager

Jesse Perez, Regional Security Manager

Jennifer Schaefer, Regional Security Manager

Daniel Thomas, Regional Security Manager

Johnny Webb, Regional Security Manager

U.S. Security boasts a fairly simple organizational chart considering the behemoth size of McDonald’s. It is headed up by Senior Director Robert “Rob” Holm, who is the executive in charge of all U.S. safety and security efforts. From there and specific to the security function, the country is split into four zones—South and Northeast headed by Director Kevin Trimble; Central and West headed by Director Octavio Jara. The zones are broken down into regions with ten regional security managers (RSM) assigned to one or more regions. If you’ve been keeping count thus far, you’ve arrived at a grand total of thirteen individuals. Really? Certainly there must be some sort of accounting error.

Before wrapping your head around these statistics, it’s important to understand the business model that McDonald’s uses to operate. McDonald’s restaurants are comprised of two distinct types of restaurant. First, there are the company-owned restaurants, internally referred to as McOpCo restaurants, which is short for “McDonald’s-operated company” restaurants. Of the approximate 15,000 U.S. restaurants, roughly 10 percent are McOpCo restaurants, and they are the rudder of the ship, as it were.

According to Holm, “There are three reasons why McOpCo restaurants exist. First, to provide revenue for the corporation. Second, they are a petri dish, a place to vet new technologies and try things. And third, which is the most important reason they exist, they are a people pump. They train and develop future leaders for both inside and outside the restaurants.”

This takes us to the bulk of McDonald’s restaurants—the restaurants run by independent franchisees (“owner operators”). Owner-operator restaurants comprise the vast majority of the McDonald’s empire, and while the owner operators themselves must adhere to the terms and conditions of a franchise agreement, the individual restaurants are run in such a manner that the owner operators make their own financial decisions and run their businesses as they see fit. Of course, this sometimes presents a challenge to the U.S. Security staff, but more on that later.

To the thousands of franchisees across the nation, U.S. Security can take on a number of roles when supporting an owner operator. Depending on the situation, that role could include a security professional resource, a trusted advisor, or a strategic business consultant, with the goal of helping them address all manner of loss prevention issues.

Boots on the Ground

Where the rubber meets the road at U.S. Security, you’ll find ten high-speed regional security managers, each responsible for providing expert security advice to hundreds of restaurants in their respective geographical regions. Most of them come from conventional retail loss prevention programs, while others do not.

Take Jennifer Schaefer for example, a RSM in the Midwest and Heartland region of the country comprising approximately 1,200 restaurants. Schaefer boasts a master’s degree in criminal justice leadership. Prior to coming to McDonald’s, Schaefer worked for such retail and gourmet coffee and food establishments as Target and Caribou Coffee Company. She also has significant experience as a judicial law clerk, correctional officer, and college professor, which gives her a wide plethora of experience to apply in the multi-faceted LP industry and QSR system.

William “Bill” Ball is another RSM in the Midwest territory (Ohio and Indiana) and serves as the go-to security professional for approximately 1,300 restaurants. “I started my loss prevention career chasing shoplifters at Sears for $5.45 per hour,” stated Ball, who later worked for Kohl’s, The Gap, and then Lowe’s, before beginning his career at McDonald’s.

Daniel Thomas, however, holds a somewhat different background. He currently serves as RSM for the Michigan and Chicago area regions, comprised of nearly 1,400 restaurants. Thomas came to McDonald’s eighteen years ago after serving as a police officer. “I spent ten years as a patrolman and detective with the St. Louis Police Department,” he stated.

The regional security managers hold an eclectic mix of talents and former avocations to be sure, but this diversity is what makes U.S. Security so effective. Octavio Jara, director of U.S. security for the Western U.S., was also a former police officer in his past life in Southern California before working as a member of the loss prevention program at AutoZone.

Senior Director Holm is a career security executive, having held similar positions at Honeywell, 3M, Imation, and the Tribune Company, among others. With such a small staff compared to similarly sized retail establishments, there are no novices, no trainees, and no second-rate people within U.S. Security. Each position is filled by a seasoned pro. What is interesting about U.S. Security as a whole is the corporate mantra that pervades the organization, which was summed up best by Holm when he said, “I’m not a loss prevention professional. I am a business professional who has expertise in the security field.” Thomas echoed that sentiment with a slight twist. “I see myself as a strategic business partner. If the restaurants only use me for security issues, they are missing out,” stated Thomas.

What Could Possibly Go Wrong

Before delving into U.S. Security’s methodology, consider the range of incidents that can take place at your average McDonald’s. Some of these are germane to other retail establishments, while others are particular to McDonald’s, mainly because of the massive foot traffic within the restaurants on a daily basis.

“Over the course of a single week,” began Schaefer, “I was asked to consult on two missing deposit investigations, a credit card skimming incident, a multi-restaurant demonstration, and one private plane that crash landed in the parking lot.” Other, unique events are common as well, due to the sheer ubiquity of the chain.

“I recently had someone call a restaurant claiming there was an explosive device under one of the chairs, and it turned out to be a high-profile media event,” said Thomas. “Thankfully, no explosive device was found.”

Holm has perhaps the best explanation for the wide diversity of potential issues that may arise nationwide. “Twenty-seven million people per day visit McDonald’s restaurants. If you tell me there is a one-in-a-million chance that something will happen in our restaurants, then it will happen 27 times per day,” explained Holm.

Accordingly, the regional security managers are no strangers to calls at all hours of the day and night. “When I get a call in the middle of the night, my first question…is everyone okay? It is all about our number one priority—our people,” emphasized Schaefer.

With each regional security manager in charge of the loss prevention needs of several hundred restaurants each, how does US Security manage to execute their responsibilities at such a high level? “We are a one-man or one-woman show in the regions we support,” said Bill Ball. “Our primary responsibility is brand protection, which includes protecting our employees and customers, our corporate assets, and our strategic partners, all with the goal of providing the best restaurant experience for our customers.”

Spend enough time with the regional security managers, and you will hear the term “brand protection” mentioned a lot. It is not just a catchy buzzword that McDonald’s has adopted. It is in fact an actual detailed strategy with dozens of implications. To U.S. Security, brand protection is a multi-faceted strategy. “We have to protect the brand from different things—robberies, homicides, and burglaries,” said Ball.

Jara wholeheartedly agrees, yet adds further items to the laundry list. “Protecting the brand includes protection of confidential information, our reputation, our most valuable resources, our employees, and of course, our customers,” he stated.

A Two-Pronged Approach

Each RSM has to deal with the two distinct retail environments—McOpCo locations and franchisee restaurants—both of which have their own separate and unique needs. Said Ball, “We have to fly at a much higher level. We have to stay cognizant of resources and time. We have to handle things by phone, which includes coaching and investigations.” Although occasionally, as Thomas pointed out, “Sensitive issues require boots on the ground, and you need to get into a restaurant.”

What makes U.S. Security’s job such a challenge is the inherent dichotomy between the McOpCo restaurants and the franchisee restaurants. On the one hand, LP needs within the McOpCo restaurants function much like any corporate loss prevention program. In those restaurants U.S. Security enjoys a tabula rasa approach at loss prevention activities. Things like camera systems, safes, lighting, alarm systems, and exception-reporting software can all be purchased as a whole and then rolled out to each location much as would happen in any other corporation. In this environment, McDonald’s U.S. Security team is free to test new technologies and practices, which can then be offered as solutions to the owner operators. In McOpCo restaurants, these new methods and procedures are thoroughly vetted, so by the time they are offered to owner-operator restaurants, US Security knows they are proven solutions.

Don’t think, however, that U.S. Security merely issues an edict or proclamation and then leaves it to the owner operators to follow. That’s really not how it works. “We are here as a resource for best practices. In the end, it is their restaurant, their time, their employee base,” said Schaefer.

Ball expanded upon that thought. “McOpCo restaurants are the test beds, the restaurants that we do all these things in to show what works,” he explained. “Then the franchisees can see that it works and determine whether or not to adopt those methods within their restaurants as they see fit.”

When called upon by owner operators, the RSMs can serve as valuable resources and consultants for the loss prevention program. Said Thomas, “We try to walk in their stores from a loss prevention standpoint and determine which LP methods might be effective from a security and cost standpoint and which might be less so.”

In many cases, the adoption of new technologies or methods involves a large degree of consulting and influence with the owner operator. “It’s all about building those relationships,” stated Ball. “It’s your subject-matter expertise that you have to convey to the operators. You have to show them results through metrics, through data.” Ultimately, however, the owner operators are free to do what they see fit from a security standpoint, including what equipment to use and what process to employ. U.S. Security’s role is to make sure they understand the options and resources available to them to make their restaurants safer and more secure.

McDonald’s U.S. Security team is free to test new technologies and practices, which can then be offered as solutions to the owner operators. In McOpCo restaurants, these new methods and procedures are thoroughly vetted, so by the time they are offered to owner-operator restaurants, US Security knows they are proven solutions.

In fact, U.S. Security is also quick to point out that McOpCo’s test bed status is a tool for the owner operator, a resource they can tap into, showing them that certain best practices work and are not merely a corporate push. “What we do from a security standpoint at the corporate level needs to make sense to our owner operators,” explained Jara. “Our McOpCo restaurants provide us an opportunity to showcase new security initiatives, technologies, and put them in place to demonstrate to our owner operator the value that these systems work. This type of relationship is rewarding for us because it gives us the ability to put our influencing skills to work.”

In many cases, the regional security managers act as lobbyists at the local co-op meetings. Each major city will have its own co-op, which is a group of owner operators and McOpCo restaurants that hold monthly meetings. “Every co-op gets together each month,” said Ball. “As a security professional, you want to get on those agendas to influence McOpCo’s business and operations, and then hopefully, McOpCo can influence the owner operators on security best practices.”

Thus, to the thousands of franchisees across the nation, US Security can take on a number of roles when supporting an owner operator. Depending on the situation, that role could include a security professional resource, a trusted advisor, or a strategic business consultant, with the goal of helping them address all manner of loss prevention program issues. Whether it is offering assistance with the selection of a surveillance camera system, or referring them to an armored car service, assisting with an internal investigation, or serving as a liaison to local law enforcement, US Security is there to consult.

Considering that the RSMs don’t have any direct loss prevention staff that report to them, they clearly have a lot on their plates. However, when asked whether he could use more LP staff, Holm replied, “Part of me says yes. It’s a knee-jerk reaction. The thing is, we are not a security company. We are an operations company that sells hamburgers. In that sense, I have 90,000 security members on my staff.”

At the end of the day, it is truly remarkable that such a small team is so effective in protecting what just might be the most identifiable brand across the globe. It ultimately comes down to the attitude of retail security pervasiveness throughout the organization, as Holm puts it, “from the boardroom to the crew room.” Every employee is a loss prevention node, and each owner operator has a vested interest in brand protection and the safety and security of McDonald’s restaurants. And with US Security at its best, the brand is in great hands with the Golden Arches shining brightly!

EDITOR’S NOTE: McDonald’s, Big Mac, Chicken McNuggets, World Famous Fries, Happy Meal, and The Golden Arches are trademarks of McDonald’s Corporation and its affiliates, and are used with permission.

This article was first published in 2015 and updated in February 2016.

The post Guardians of the Golden Arches: The McDonald’s U.S. Security and Loss Prevention Program appeared first on LPM.

Retail stores: Embrace smartphone technology, or it’s your funeral

The time for retail stores to get with the mobile program is now. Stores that fail to embrace in-store technology – namely integrating smartphone apps with the customer shopping experience – risk their own extinction, claim London-based technology analyst ABI Research. Regardless of how sci-fi the shopping experience will be a decade from now, retailers would be wise to heed the mobile call. For starters, Connolly said, this means embracing next-generation inventory, point of sale and aggregated data technology. It also means using online analytics to better understand your store’s vast customer base and take advantage of new ad revenue channels… [Fierce CIO]

Finalists Named for the 2016 CFI of the Year Award

The International Association of Interviewers (IAI) has named this year’s finalists for the CFI of the Year award. This award recognizes achievement and performance while striving for excellence and professionalism in the performance of his or her duties, exhibiting the highest level of professionalism while interviewing sources, victims, witnesses, and suspects; and following the established CFI values as identified by the International Association of Interviewers. The 3 finalists for the 2016 award are:

• Hector Erazo, LPC, CFI (Market Asset Protection Manager for Walmart)
• Jonathan Derek Mayes, CFI (Regional Loss Prevention Manager for Tuesday Morning, Inc.)
• Tim Ruggiero, CFI (Regional Loss Prevention Manager for Barnes & Noble College Booksellers)

The winner of the CFI of the Year will be announced next week at Elite Training Day on April 6 in Minneapolis, Minnesota. [LP Magazine]

FBI-Apple case: Investigators break into San Bernardino gunman’s iPhone

The FBI has managed to unlock the iPhone of the San Bernardino gunman without Apple’s help, ending a court case, the US justice department says. Apple had been resisting a court order issued last month requiring the firm to write new software to allow officials to access Syed Rizwan Farook’s phone. But officials on Monday said that it had been accessed independently and asked for the order to be withdrawn. Farook and his wife killed 14 in San Bernardino, California, in December. They were later shot dead by police. The FBI said it needed access to the phone’s data to determine if the attackers worked with others, were targeting others and were supported by others… [BBC News]

LP Worldwide: Gang of female thieves mount shoplifting spree in upmarket Glasgow store (Video)

A girl gang of thieves are caught on camera gleefully helping themselves to a haul of luxury goods from an upmarket shop. Footage shows the four-strong team laughing as they distract a member of staff before plundering the watches and other items worth hundreds of pounds. Crime sources believe the gang may have targeted dozens of shops around the city during their thieving spree – potentially taking the value of their haul into thousands of pounds. CCTV film shows one of the brazen women – who are thought to be eastern European – grabbing a number of £200 designer timepieces while the shopkeeper stands just inches away… [Daily Record]

3 arrested in alleged gas pump skimming scheme

Police have announced the arrest of three Cuban nationals in connection with an alleged credit card skimming and cloning operation. The suspects were allegedly making multiple purchases with stolen credit cards when police were alerted and officers located the suspects’ vehicle. 32 stolen and/or cloned credit cards were recovered. Authorities say the cards contained the identities of different victims, 15 of whom have been located. The victims’ credit card information was stolen through the use of a skimming device on a local gas pump… [ABC News]

Cargo Theft was Top Supply Chain Risk in 2015

Last year supply chains across the world faced a number of challenges. One of the largest issues was damages caused by cargo theft that amounted to $22.6 billion, according to BSI’s Supply Chain Risk Exposure Network. “Companies are facing an increasingly wide range of challenges to their supply chain, from human rights issues to acts of violent theft and natural disasters,” explained Jim Yarbrough, Global Intelligence Program Manager at BSI. “Such complexity creates extreme levels of risk for organizations, both directly affecting the bottom line but perhaps more seriously, hidden threats to the supply chain which, if ignored, could do serious harm to a company’s hard-earned reputation…” [MH&L]

The post Breaking News in the Industry: March 30, 2016 appeared first on LPM.

Editor’s Note: The following article provides an excellent narrative regarding the ongoing concerns associated with credit card skimming. As retailers and companies issuing credit cards in the United States continue to move forward with chip-and-pin and/or chip-and-signature technology, many of the issues associated with credit card skimming may be resolved. However, while technologies have continued to evolve practical application has not always kept pace, and the issues discussed are as relevant today as they were when this article was originally authored.

Recently, I was asked to present at the National Food Service Security Council (NFSSC) annual loss prevention conference in Dallas, Texas. Always eager for an opportunity to meet and network with loss prevention professionals from different retail and service formats, I readily agreed. I was given a list of topics from which to choose; one of which was credit card skimming. Although I was not well versed on the topic, what I did know was the importance of educating retailers and merchants to protect both their business reputation and personal interests. What struck me was the perception that retailers aren’t the victims of this crime.

I set about the task of becoming more educated on this topic. I spoke to merchants who are victims of credit card skimming, law enforcement personnel who handle consumer complaints, the Secret Service who works with banks to close down credit card skimming operations, and financial institution security directors for the card issuers who detect, monitor, and track fraud related to credit cards

I started my research close to home with contacts from local law enforcement specializing in white collar crimes who clued me in on some of the local cases. From there I was put in contact with senior security officers for the banks who also deal with the investigation and aftermath of these crimes. I was humbled by the graciousness of each agency I reached out to and their eagerness to help educate others on the impact of the crime of credit card skimming.

The research process for the presentation was just as rewarding as the actual presentation. Ours is a hospitable group of professionals who are generous with both time and resources when the need relates to educating others with the goal of eliminating or reducing loss due to fraudulent activity.

Defining the Problem

Just what is credit card skimming and how does it impact us as retailers, merchants, and consumers?
By definition credit card skimming is the theft of credit card information used in an otherwise legitimate transaction. It is typically carried out by a dishonest employee of a legitimate merchant. However, there are documented cases in which business owners were the culprit in this form of identity theft. In some instances, connections to terrorist organizations have been made to this fraud activity.

The tools used to carry out this fraud are varied from the archaic, simply using pen and paper to copy credit card numbers and security codes, to the more technologically advanced use of magnetic-stripe readers. With the use of the magnetic-stripe readers, the fraudster is able to capture all of the information that appears on the card, including name, card number, and expiration date.

If the Cvv2 (card verification value) number located on the back of the card is also captured, it allows for cloning of the cards and factory production of duplicates. The Cvv2 is the three- or four-digit credit card security code located on the back of most cards. The Cvv2 code is an important security feature for preventing credit card fraud, especially in the card-not-present transaction environment, such as telephone and Internet sales

While credit card skimming is often a high-tech crime, it doesn’t necessarily require magnetic-stripe readers and computer equipment. Simply put, an employee who fraudulently gathers and records credit card information is just as much a threat as one who uses more technically advanced methods.

Where Skimming Occurs

Credit card skimming activity occurs in many places, but the most prevalent location for this crime is in restaurants. According to a research and advisory service for the payment industry, restaurants account for 70 percent of credit card skimming activities. Why? Restaurants are one of the few establishments in which the card actually leaves the hands or the sight of the cardholder for a period of time; enough time for a fraudster to capture the data from the card manually or by means of a skimming device.

Other known locations ripe for this crime include gas stations with card readers at the pump, self-checkout registers, and standalone vending machines or kiosks that accept credit cards as a form of payment. In these formats a credit card skimming device is placed over the existing card reader. When an unsuspecting customer uses their credit card at the pump, through the checkout, or in the vending kiosk, the initial entry of the card into the reader captures the information for the fraud. As the card is inserted further it captures the information for the legitimate sale. The credit card skimmers may be left on the machine for a period of time before being removed. Information gathered in the skimmer over that period of time can be periodically uploaded to a computer wirelessly.

ATM machines are also an opportune environment to aid in the execution of skimming fraud. The fraudsters in this case may use cameras in addition to the card reader in order to capture the cardholder’s debit card PIN numbers. In this case the cardholder’s bank accounts can be quickly emptied before they even realize they were victimized.

A Form of Organized Retail Crime

In retail loss prevention, we talk a lot about organized retail crime (ORC) as it relates to shoplifting—when a group coordinates or organizes in such a way as to execute shoplifting crimes with the intent to steal thousands of dollars worth of merchandise that is then resold on-line, through fencing operations, or diverted back to the retailers it was stolen from. Credit card skimming in many cases is also well organized and has the potential to generate thousands of dollars of fraud from just one operation. In some cases the proceeds from these organized groups support terrorist activity.

When skimming is part of an organized retail crime operation, a group or chain of restaurants may be targeted based on their known operations and procedures for handling credit card transactions. In these instances, operatives are hired by the fraudsters to specifically seek employment at these chain restaurants for the sole purpose of obtaining credit card data.

Why is credit card skimming the new perfect crime? When the card data is captured and sold, it can then either be resold as is, in an electronic format, or manufactured and cloned onto look-alike cards. In either case, the cardholder isn’t aware of the theft of their credit card information until charges actually appear on their statement thirty days after purchases. The fraudsters have plenty of time to gather account numbers, clone cards, and then sell them. The buyers then use the cards for purchases and the crime goes undetected until the card holder’s statement arrives in the mail. It is not uncommon for stolen accounts to be used in different continents within days of each other. Credit card companies have stepped up their fraud alert detection to identify these transactions and decline the purchase if strange activity is apparent.

With this relatively long window of opportunity, the fraudsters have time to make the account numbers more attractive to the buyer, thereby demanding a higher price for each account. One method used by the fraudster to ensure a good account is sold to the buyer is called “carding.”

Carding is a term used for the process of verifying the validity of stolen card data. The thief presents the card information on a web site that has real-time transaction processing. If the transaction is processed successfully, the thief knows that the card is still good. The problem presented with carding is the seller has just started the clock ticking by completing a fraudulent transaction. Within the next thirty days an alert consumer may see the charge and question it.

When credit card details have been verified in this way, it is known in fraud circles as a “phish.” A carder (the name used for persons who perpetrate this type of fraud) will typically sell data files of phished card numbers to other individuals who will carry out the actual fraud. Market price for a phish varies depending on the type of card, freshness of the data, and credit status of the victim

Investigating Credit Card Fraud

When the fraudulent transactions of credit card skimming are realized, information begins to pour into different agencies. Cardholders may first discover the fraud when viewing activity on-line or upon receipt of their monthly statement and begin disputing unauthorized use of their credit card. However, in many cases the card issuer…banks or credit card companies…become aware of the fraud before the cardholder does by utilizing advanced software programs that alert them to changes in cardholder behavior or location of charges.

A bank’s fraud prevention department compiles a list of all the cardholders who have complained about fraudulent transactions, and then uses data mining to discover relationships among the cardholders and the merchants they use. For example, if many of the customers used one particular restaurant or chain, that merchant’s terminals (devices used to authorize transactions) can be directly investigated.

Sophisticated algorithms can also search for known patterns of fraud. Merchants must ensure the physical security of their terminals, and penalties for merchants can be severe in cases of compromise.
The U.S. Secret Service is working with the credit card industry to track down credit card skimming rings by assembling a database of locations where scams have occurred.

Other advancements on the horizon to combat credit card skimming includes chip cards. These cards have a microcomputer chip embedded in the card. Information on a chip card is virtually impossible to copy. Countries who have already implemented these chip cards have seen up to an 80 percent reduction in credit card fraud

Even when all of the parties involved respond and react perfectly, identifying the culprits and then bringing them to justice may be difficult at best.

If the fraudsters are identified and prosecuted, the punishment varies by state. Many states have adopted laws that identify credit card skimming or, specifically, possession of a skimming device with the intent to defraud as a felonious act. However, other states still define possession of a skimming device as a misdemeanor. Most state laws addressing the use of stolen credit card information to make fraudulent purchases define the crime as a felony act punishable with imprisonment and court-ordered restitution.

The Impact of this Crime

What impact does credit card skimming have on the business from which the credit card data was stolen? Merchants may think that the subsequent charges will likely be made elsewhere, so there’s no fall out on them, right? Wrong!

The reputation of a company is its most valuable asset. When one’s business reputation is damaged from a breach of data security, customer trust suffers. When customer trust suffers, sales are impacted and the company’s position in the market is threatened

The public has a long memory when their sense of security has been shaken. Consider a few examples.
Most of us will remember the fast-food restaurant chain in which a customer claimed to find a finger in her chili back in 2005. Although the allegation was proven false, we still remember. [See “The 99 Cents Chili Crisis” January-February 2008.]

Most of us will also remember the brand of pain reliever that was the target of a cyanide contamination in 1982. The parent company was honest and sincere with the public and took immediate steps to ensure its product, and others like it, would never have undetected contamination again. Despite their efforts and regaining of market share, we still remember.

The reputation of a company is its most valuable asset. When one’s business reputation is damaged from a breach of data security, customer trust suffers. When customer trust suffers, sales are impacted and the company’s position in the market is threatened.

More recently, most of us are very aware of the retailer who discovered and reported a breach of 45-million credit cards used in purchases made by their customers. Many of us were directly impacted by that breach and, yes, we will likely remember that company brand for a long while.

These examples are of very large companies with very strong brands who were able to withstand the multimillion-dollar impact on their bottom lines. Smaller retail or chain restaurant establishments don’t have the corporate financial backing to sustain the public backlash of reputation-damaging events, even those in which the company was not at fault.

Simply search “credit card skimming” on the Internet and you’ll find many small businesses that have been highlighted in the media for a breach that took place under their roof. Following are items from one such search.

• A 21-year-old used a pocket-sized electronic swipe pad to record credit card numbers while working as a cashier at Union 76/Circle K convenience stores.
• A waitress formerly employed at Harpoon Hanna’s restaurant in Fenwick, Delaware, was indicted for skimming credit card information.
• Police in the New York area broke up a credit card scam ring that involved waiters in about forty restaurants recording credit card information and passing it to thieves. The scam brought in about $3 million. Stolen numbers, lifted with skimming devices, were used to make counterfeit cards, which were used to buy merchandise that was then sold for cash. When the ringleader was arrested, police found 296 counterfeit credit cards, about $200,000 in cash, and numerous fancy wristwatches and handbags.
• Redbox, the DVD rental kiosk often found in supermarkets, recently sent warnings to customers about credit card skimming.
• According to state police, Wawa locations in several Delaware counties have had skimming devices placed inside their gas pumps.
• A personal trainer at a Boston fitness club was charged with skimming credit card data that ultimately went to the two Algerian nationals convicted of planning the bombing of Los Angeles International Airport.
• Syracuse, New York, police worked on a case with the Secret Service involving a local Middle Eastern restaurant. They arrested a local restaurant owner and courier who transported skimmed information from a handheld skimmer to a location in Montreal where the ringleader, an associate of the Russian mob, manufactured cloned credit cards that were used to commit fraud at various mercantile locations in Canada and across the United States. The courier and restaurant owner were charged federally. The Russian mobster ringleader was never apprehended due to extradition difficulties with Canadian authorities

Protection against Credit Card Skimming

Both individuals and merchants can help prevent fraud due to credit card skimming. Following is a list of suggestions.

Individuals. What can an individual do as a cardholder to protect himself from identity theft?

• Watch your credit card. Keep it in your possession when possible or keep your eye on it if the server or clerk takes it from you.
• When possible take your check to the bar to close out your tab.
• Ask questions if you see your card swiped more than once.
• Look for wait staff or sales clerks carrying extra equipment in environments where the clerk takes your card to process the transaction.
• Check your card activity throughout the cycle period on-line for unauthorized transactions.
• Check your statement carefully and report inaccuracies immediately.
• Sign up for fraud alerts. Keep in mind your credit may be temporarily frozen or suspended until transactions can be validated as authorized by you.

Merchants: As a merchant, what can you do to prevent credit card skimming?

• Monitor associate behavior and define policies for cell phone use.
• Educate new associates on the consequences of fraudulent acts, including prosecution, termination, and public embarrassment.
• Pay attention to personal calls into the business for employees or frequent visits to them from friends.
• Control the register and ensure extra devices are not present.
• Utilize tableside card payment devices that allow the customer to swipe their own card.
• Notify merchant services if you suspect skimming is taking place.

The steps you take to protect your customers from credit card fraud will be rewarded by their continued patronage and the preservation of the reputation you worked so hard to establish.

There will always be a new scam, and there will always be those who are willing to try them. However, just as technology is created to commit crimes, there is as much technology being developed to help us prevent it

Staying informed and educated on the latest scams, such as credit card skimming, is your best defense.

This article was first published in 2009 and updated May 2016.

The post Credit Card Skimming: A Crime against the Brand appeared first on LPM.

Embezzlement Study: a Report on White Collar Crime in America

Hiscox, an international specialist insurer, recently released the 2016 Hiscox Embezzlement Study, a comprehensive study of employee theft in the United States. The 2016 Embezzlement Study incorporates employee theft cases that were active in the US federal court system in 2015. While the report tends to focus on companies with fewer than 500 employees—which according to the study accounts for 69 percent of all federal cases reviewed, many of the lessons would apply globally.

A closer look at the specific retail aspects of the study revealed that while retail employee theft cases accounted for only 5% of the cases reviewed in the study, those retailers showed a high median loss of $475,876.

“The impact of employee theft can rock an organization to its very core,” said Doug Karpp, Crime & Fidelity Product Head at Hiscox. “There is of course an obvious financial impact, but the ripple effect of employee theft threatens the trust employers place in their teams and damages morale.”

Perpetrators are often people who are smart, well-liked, and those whom you’d least expect. There are, however, four driving factors that can turn a trusted employee into a criminal:

• Pressure: An employee is put into a situation which, seemingly, can only be relieved by additional funds.
• Opportunity: Employers should be particularly watchful of employees who have greater access and the opportunity to embezzle.
• Capability: Embezzlers are also often the ones who have the skills and knowledge to commit fraud.
• Rationalization: Perpetrators often rationalize their crime by convincing themselves they are providing for their family, feel underpaid or that they were not treated well, or think others are stealing, too.

“Understanding the reason why employee theft happens and the psychology of a potential perpetrator are the first steps to mitigating fraud,” said Karpp. “Once you understand that, enacting controls will help manage exposure for businesses of all sizes.” [Source: Yahoo Finance]

Report: Credit card skimming increased 546 percent last year

Every day, more credit card skimmers are out for your card number. Authorities are finding more credit card skimmers installed on places where you swipe your plastic—like gas pumps, ATMs, and self-checkout lanes. Skimmers record and store all of a credit card’s information from a single swipe. The cyber pickpocket then either later retrieves the device or records remotely via bluetooth.

According to FICO, a company that tracks credit card fraud, skimming incidents were up a whopping 546 percent from 2014 to 2015. The crime continues to grow because it’s easy and profitable. Investigators are now urging gas stations to increase security, use unique keys to open pumps, and install security tape, so employees and consumers can see if a pump’s been tampered with. So how can you protect yourself?

• Don’t use your debit card at the pump–if you use a credit card, your bank will cover the loss.
• Check your accounts regularly.
• Choose a pump near the front of the store, it’s less likely to have been tampered with.
• Pay inside. Tug on the card reader, if if pops off, it’s probably a skimmer.

[Source: Fox News Memphis]

LP Worldwide: Portuguese ORC gang stole £50k of designer clothes in raids on Oxford Street shops

A Portuguese crime gang involving up to 50 people stole almost £50,000 in designer clothes by “swarming” high street stores. The group, dressed all in black, raided a series of luxury brand name stores near London’s Oxford Street in under an hour. They got away with £2,000 worth of jeans from Levi’s, £5,000 from G-Star Raw and £40,000 worth of ‘black label’ items from Ralph Lauren. Police rounded up some of the group outside Hamley’s Toy Store in Regent Street but many remain at large.

Judge David Tomlinson said: “Members of staff knew quite well what you were up to but the sheer weight of numbers and the speed of your offending meant that they were overwhelmed and quite unable to intervene and prevent what you were doing…Between each event you regrouped and then executed the next raid in a calculated way. But for police intervention this offending may very well have continued.”

The court heard that some of the group are from Portugal with others originate from Guinea-Bissau, a former Portuguese colony. Between those arrested there are a host of previous convictions including for heroin and crack cocaine possession, possessing offensive weapons in public and attempted robberies. [Source: The Express]

How the future of fit could spell the end of retail returns

In retailing, buyers aren’t necessarily keepers. According to a study by the Retail Equation and the National Retail Federation, total merchandise returns accounted for more than $260.5 billion in lost sales for U.S. retailers last year, meaning that if merchandise returns were a corporation, it would rank No. 3 on the Fortune 500 list. That’s a staggering statistic, and one many retailers are struggling to change. Per the same NRF report, most send-backs are due to customer satisfaction issues: Jill Standish, senior managing director, retail, at New York-based consultancy Accenture, cites product defects, a lack of personalization and, notably, poor fit as major factors related to return activity.

While stores can work more closely with manufacturers to solve quality control issues, and personalization is becoming increasingly important, helping customers find the right fit has proven vastly more challenging—and more costly. To that end, some retailers have begun exploring next-generation solutions, such as fit technology. In the simplest terms, fit technology leverages new data science that aggregates consumer information regarding size and fit in apparel and footwear, and applies that information to potential purchases with the intention of matching customers with items that will best suit them. The idea is that if shoppers can make more accurate size and fit decisions when buying apparel and footwear, the number of fit-based returns will be vastly reduced.

Experts say that these tools are game-changing when it comes to returns. Retail technology is helping to improve the front end and make sure the customer is buying the right product for them. As this new technology is more widely embraced, developers hope to see it expand out of online retail and into brick and mortar, too. With the kind of information available through fit technology, a sales assistant could have exactly the right items for a customer the instant he or she enters a store. Ultimately, though, it’s not about the technology, but about the product return problems the technology solves. [Source: Retail Dive]

There ought to be a law, but there isn’t: Upskirting not a crime in Georgia retail stores

The lewd practice of “upskirting” — the surreptitious videotaping of a person’s private parts in a public place — cannot be prosecuted as a crime in Georgia, the state’s Court of Appeals has ruled. The court recently arrived at that conclusion when overturning an invasion-of-privacy conviction against former grocery clerk Brandon Lee Gary, who took videos up a woman’s skirt while she was shopping. The Georgia court found, as have other courts across the nation, that decades-old laws simply did not envision criminal acts committed with modern technology. “It is regrettable that no law currently exists which criminalizes Gary’s reprehensible conduct,” Judge Elizabeth Branch wrote.

The ruling throws out the felony conviction against Gary, 24, who in June 2013 used his cell phone to take videos from under a woman’s skirt as she walked the aisles of a Publix grocery store. Chuck Spahos, head of the Prosecuting Attorneys Council of Georgia, said Houston County District Attorney George Hartwig has asked DAs across the state to support a legislative change that would solve the problem. Spahos also said his group will draft legislation and look for a sponsor to carry the bill in next year’s General Assembly. In recent years, legislatures in Massachusetts, Texas and New Jersey have enacted new laws that specifically criminalize “upskirting” — today’s version of a peeping tom offense.

Eugene Volokh, a UCLA law professor who has written about “upskirting” laws, said he believes the court’s majority got it right. “This was obviously bad, bad behavior and it’s behavior that can be criminalized,” he said. “But under Georgia law, it’s not a crime because it didn’t occur in a private place. A private place could clearly be a closed stall inside a restroom or somewhere inside someone’s home. But it’s not a public grocery store.” [Source: Atlanta Journal Constitution]

Brian Flannery Named Director of Loss Prevention for ULTA Beauty

Brian Flannery has been named Director of Loss Prevention for ULTA Beauty. Brian most recently served as Director of Loss Prevention for Dollar General, where he worked his way from Corporate Manager of Loss Prevention and Director of Investigations before becoming the Director of Loss Prevention in 2007. Brian has also held positions in both the private and public sectors in security and loss prevention, primarily as a consultant providing investigative, physical security, crisis management, and guard force management services. He holds a Bachelor of Arts in Sociology-Criminology from North Carolina State University.

Congratulations, Brian!

For more, look for the “People On the Move” in today’s newsletter.

The post Breaking News in the Industry: July 20, 2016 appeared first on LPM.

Washington mall shooting: Police arrest 20-year-old suspect

One day after a shooting left five people dead at a mall north of Seattle, authorities arrested a 20-year-old suspect Saturday after an overnight manhunt that left the city on edge. Arcan Cetin is suspected of killing four women and a man Friday night at the Cascade Mall in Burlington, Washington. Washington state authorities said it’s too early to rule out terrorism or anything else because their investigation is still in the preliminary stages. Before the suspect’s arrest, an official with the FBI had told reporters there was “no evidence at this time” of a link to terrorism.

When police confronted the suspect walking down the street near his residence in Oak Harbor, he did not try to run, he just froze and complied, said Lt. Mike Hawley of the Island County Sheriff’s Office. The suspect, who was not armed at the time of his arrest, said nothing, “kind of zombie-like,” Hawley said. Cetin immigrated from Turkey and is a legal permanent resident of the United States, authorities said. It’s unclear when he moved to the US.

A blurry surveillance photo of a rifle-toting man inside the mall offered a big lead in the hunt for the shooter. The grainy security camera footage showed the suspect initially appearing to enter the mall unarmed and — about 10 minutes later — walking into Macy’s carrying a rifle.

The suspect “fired multiple times, struck four females ranging in age from a teenager to seniors,” said Mount Vernon police Lt. Chris Cammock. It’s unclear whether the suspect knew his victims. “I don’t know what his motivation was,” Cammock said. “I don’t know what his motivation was to continue, I don’t know what his motivation was to stop, but I certainly intend to find out.” He said police recovered a rifle at the mall but would not disclose the type or caliber.

The FBI office in Seattle is helping with a review of intelligence. There’s no information to suggest additional attacks were planned. [Source: CNN News]

Three indicted in attempted killing of Texas judge

A federal grand jury has indicted three individuals for their roles in fraud and racketeering schemes that involved the alleged attempted capital murder of State District Court Judge Julie Kocurek. An 11-count indictment unsealed in Austin Friday alleges that Chimene Onyeri, Marcellus Burgin, and Rasul Scott carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas. The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder.

According to the indictment, the defendants carried out a wire fraud scheme whereby they used debit card readers, or “skimmers,” and cameras placed on ATMs to steal personal identification information (PII) from, and identify PIN #’s used by, unsuspecting individuals. The defendants then used the stolen PII and debit card PIN #’s to “cash out,” or deplete, those bank accounts. The indictment also alleges that Onyeri and others carried out a credit card skimming scheme whereby they captured unsuspecting individuals’ credit card information at various restaurants and retail stores. They would then transfer the stolen information onto gift cards and subsequently use those gift cards to purchase retail items or money orders which could then be sold or converted to cash. The indictment further alleges that Onyeri and others were involved in a Stolen Identity Refund Fraud (SIRF) scheme. Onyeri and others used stolen PII to create and file fraudulent income tax returns seeking refunds.

When the existence of the criminal enterprise was threatened, the defendants responded with violence. The indictment alleges that the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin. As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel. “This multi-agency investigation uncovered a diabolical scheme that went from multi-faceted fraud to an attempt on the life of a state judicial officer,” stated United States Attorney Richard L. Durbin, Jr.

Upon conviction, the defendants face up to life in federal prison for the RICO conspiracy charge; up to 20 years in federal prison for conspiracy to commit mail or wire fraud charge; and, a mandatory two years in federal prison for each aggravated identity theft charge. [Source: Kokomo Perspective]

Armed subject enters Tampa Ross store, found dead after shots fired

A male with a handgun walked into a Ross discount clothing store in north Tampa on Saturday night, shots were fired and he was found dead there by deputies, the Hillsborough County Sheriff’s Office said. The incident occurred just before 9 p.m. at the Ross Dress for Less store in the Carrollwood Commons shopping center. The subject entered the store, walked towards the front counter and then to the rear of the store, the Sheriff’s Office said. Patrons and employees started evacuating. Employees heard gunshots and deputies later found the subject dead. He was not immediately identified. Local police are still investigating. [Source: Tampa Bay Times]

Many Questions Still Unanswered After Yahoo Confirms Massive Data Breach

Yahoo has recently suffered a data breach in which the data of 500 million accounts were stolen. And while Yahoo voluntarily came out and admitted to what happened, the lack of details in its press release left a lot of unanswered questions.

Bear in mind that these information were stolen in late 2014. So one has to wonder why it took two years for Yahoo to disclose that half a billion accounts are compromised. The Sunnyvale-based company did not specify when it uncovered the information got stolen from its database. Did they not know until recently? If this is the case, however, then it puts Yahoo in a peculiar spot where its ability to provide data security becomes questionable.

Yahoo says that a “state-sponsored actor” is responsible for the intrusion without giving any specifics regarding the culprit/s. Early in August, reports of a hacker, known only as “Peace” or “Peace of Mind,” selling 200 million Yahoo accounts over the dark web surfaced. However, analysts say that Peace does not fit Yahoo’s description of the culprit for the late 2014 data breach since it’s not typical of a state-sponsored hacker to sell/profit from the looted dumps.

It is no secret that Verizon is well on its way to closing $4.83 billion deal for acquiring Yahoo. However, Yahoo’s data breach report may prompt Verizon to make adjustments regarding the deal. “We will evaluate as the investigation continues through the lens of overall Verizon interests, including consumers, customers, shareholders and related communities,” Verizon said in response to Yahoo’s revelation. [Source: The Tech Times]

7K worth of ink pens stolen from Rice Village store

Seven thousand dollars worth of high-end ink pens were stolen from a store in Rice Village, Texas, and the theft was caught on camera. The owners are hoping the clear image of the thief will help identify him. It happened on Tuesday at Dromgoole’s; but owner Larry Dromgoole didn’t notice the pens were missing until Thursday. “Evidently he’s been here before,” Dromgoole said. “He knew where the key was to the case, he unlocked it and started loading his pockets up with pens.” On his way out, Dromgoole said the thief even put the key back in its proper spot.

Dromgooles’s has been in the community for five decades. Larry Dromgoole is the third-generation owner; he’s never had something like this happen before. “My customers are my friends,” he said. “I don’t have to worry about this happening, and I’m very shocked that it did. We’ve got a good video. We want to catch this person.” [Source: NBC News Houston]

Brinks Security employee steals over $30,000 on the job, police say

A California man is out of a job after police say he stole over $30,000 from his employer, Brinks Security, a money transportation company that supplies and collects cash. La Que Jefferson was arrested and faces a charge of grand theft greater than $20,000, but less than $100,000, after authorities say he stole money from his employer. The Palm Beach County Sheriff’s Office said Jefferson used the money to pay medical bills, buy gifts for his family members, such as an Xbox game console and television, and pay credit card payments. Authorities also said he gave money to his family.

Jefferson worked as a messenger, or money person, for Brinks Security, where he replenished ATMs, banks, or businesses with the necessary amount of money needed at the time. As is standard practice, Brinks Security supervisors confronted Jefferson and asked him to complete an ATM shortage/overage explanation form. On each of these forms, Jefferson said he collected and packaged the money cassettes from each ATM, as he normally does, and that he did nothing else with the money from that point on.

According to the police report, Jefferson confessed to the theft to a Brinks employee who questioned him during an internal interview about the three incidents of shortages mentioned above. Jefferson showed remorse and wrote letters of apology where he explained how he took the money, what he spent it on and that he was apologetic for his crime. He returned $10,560, including $9,300 in cash, and a television valued at $960 and an Xbox valued at $300. He said the rest of the stolen funds, totaling $16,673, could not be returned because he “spent a good amount of it and cannot get it back.” [Source: ABC News]

LP Worldwide: Drug Dealing bridal shop owner boasted ‘who says crime doesn’t pay’

A wedding business owner who boosted her income by selling ecstasy and cannabis and boasted in a text “who says crime doesn’t pay” has been jailed. Melanie Chirgwin, of Caernarfon (North Wales) has been sentenced to four years in prison after being found guilty of possessing drugs with intent to supply. Chirgwin, who ran the former Mel’s Brides store in Caernarfon, broke down and wept in the dock as she was jailed.

Chirgwin’s vehicle was stopped by police in Penrallt, Caernarfon. When officers carried out a search, they found 120 ecstasy tablets with a street value of about £380 and a small amount of cannabis. A further search found several mobile phones and sim cards. Ffion Tomos, prosecuting, said: “Although the amount of cannabis found was small, the evidence on the mobile phones demonstrated her involvement in the supply of drugs. Messages suggested she was making as much as £1,000 a week and she boasted in one message about this and added ‘who says crime doesn’t pay’.” [Source: The Daily Mirror]

The post Breaking News in the Industry: September 26, 2016 appeared first on LPM.

A credit card skimmer is a device by which thieves and fraudsters steal credit card information. Often these events will occur in the retail setting, but there are other ways and means by which the devices can be used to steal information from card owners for criminal purposes as well. Unfortunately, all it requires is a little illicit technology and a lot of criminal intent.

A credit card skimmer is a small device that can scan and store credit card data from the magnetic stripe on the back of the card. Credit card skimmers can be installed on a gas pump, on ATM machines or other card reading devices, or corrupt employees can have a credit card skimmer on their person, out of sight of customers but easily accessible to the dishonest employee. Once the card is run through the skimmer, the data is recorded, and the information can be used for identity theft incidents by the fraudster or sold through a contact or on the Internet, at which point counterfeit cards can be made using the stolen card information. Criminals can then go on shopping sprees with a cloned copy of the credit or debit card—often with fraudulent names to further avoid detection—and cardholders are often unaware of the fraud until a statement arrives with purchases they did not make.

How the Device is Used

Credit card skimmers have been around for years, but the different devices are constantly improving with evolving technology. A credit card skimmer can come in different shapes and sizes, and most include several components. Most operate as a portable capture device that is attached in front of or on top of the legitimate scanner, passively recording the card data as the credit card is inserted into the legitimate scanner. However, mobile credit card readers can also be used to independently capture information, or even with the use of a smartphone. This is a common way that employees capture and exploit card information in the traditional retail setting.

A typical credit card skimmer fits over the existing card reader at a gas pump, ATM, or other convenient self-service point-of-sale terminals. At gas stations, some devices may be installed inside the pump casing and out of sight of the customer. When a credit card is swiped through the card reader the skimmer will record the account data from the magnetic stripe on the back of the card. Sometimes thieves will even place a hidden camera in the vicinity of the card reader with a view of the number pad in order to record personal-identification-numbers. The camera may be in the card reader, mounted at the top of the ATM, or to the side of the device hidden in brochure cases or other inconspicuous places. Some criminals may even install a fake PIN pad over the actual keyboard to capture the PIN directly, bypassing the need for a camera.

Some of the more common places where credit card skimming might occur would include:

• Gas Stations: Gas stations are a favorite target for thieves who use skimmers because there are multiple credit card devices sitting outdoors, none of which have an directly monitoring their use.
• ATMs: Popular for the same reasons as illicit use at a gas station, thieves can leave a skimmer on a card reader collect your information.
• Retail Stores: While most employees are honest, hardworking people, we still must remain aware of those with dishonest intentions. Portable skimmers can quickly be used to gather information in a matter of seconds, often out of sight of the actual cardholder but occasionally right at the terminal depending on the illicit skill of the dishonest employee.
• Restaurants/Bars: Similar to incidents in retail stores, this can occur by using a small, mobile card reader. Most never think twice about leaving cards unprotected in the hands of an employee at the restaurant or bar, but be beware of the possibilities.

Ten Tips for Avoiding Credit Card Skimmer Incidents

Following are ten tips to follow to help avoid becoming the victim of a credit card skimming operation. While these incidents can happen to anyone, remaining aware and following a few common sense rules can help avoid many situations.

1. Inspect the card reader, PIN pad, and the surrounding area. Check for obvious signs of tampering at the top of the ATM, gas pump, or other card reading device. Check near the speakers, the side of the screen, the card reader itself, and the keyboard. If something looks different, such as a different color or material, graphics that aren’t aligned correctly, or anything else that doesn’t look right, it might be a skimmer.
2. Compare nearby gas pumps, ATMs, or other card reading devices to see if they match. If there are any obvious differences, it might be a skimmer. For example, if one has a flashing card entry to show where you should insert the card and the other has a plain reader slot, something may be wrong.
3. Wiggle Everything. Does anything move when you push or pull at it? Legitimate devices are solidly constructed and generally don’t have any loose parts. See if the keyboard is securely attached and just one piece.
4. Be aware and try to avoid situations where your card leaves your sight if you can help it. Store transactions should generally occur in your presence. While this may be more difficult in a restaurant setting, try to remain aware of the service provider, where they take your card, and for how long.
5. Check Security Tape. Many gas/service stations use security tape on the device to verify that no one has entered or compromised the device. If the security tape has been broken or if the security tape isn’t consistent on all devices, there may be reason for concern.
6. Avoid Using Your PIN at the Gas Pump. When you pay at the pump, you usually have the option to use it as a credit or debit card. It’s best to choose the credit option that allows you to avoid entering your PIN. When you use it as a credit card you usually only have to enter your billing ZIP code as verification which is much safer. It’s also generally safer to use a credit card versus a debit card, because it’s easier to stop payment or cancel a payment than it is when money’s already taken out of the account. Typically, the most you’d have to pay for unauthorized use of your credit card is $50, and if your funds are stolen, you won’t have to wait to recover your losses with an empty account.
7. Read Your Surroundings. Criminals are more likely to install a credit card skimmer in locations where they are less likely to be observed installing malicious hardware or collecting the harvested data. Readers located in poorly lit or more remote areas (for example gas pumps outside of easy view of employees) are more likely to be targeted.
8. What Day is It? The chances of getting hit by a skimmer, especially those used on ATMs, are higher on the weekend than during the week, since it’s harder for customers to report the suspicious activity. Criminals typically install skimmers on the weekend, and then remove them before business offices reopen on Monday.
9. Keep an Eye on Your Accounts. If you suspect that you might have had your card skimmed. Keep an eye on your account balance and report any suspicious activity immediately. Consider monitoring your checking account transactions daily on your bank’s website. You can also request “card not present transaction” notification. If someone tries to use your credit or debit card number online, you’ll be notified immediately.
10. Use Chip Technology When Possible. Rather than swiping the card, as you would for a card with a magnetic stripe, insert the card into a terminal slot during a transaction and then remove it once the transaction is complete. EMV cards provide a higher level of security. Unlike the magnetic stripe on a card, which contains data that remains the same, EMV cards change with each transaction and are basically impossible to predict.

The post The Fundamentals of Credit Card Skimmer Fraud appeared first on LPM.

Organized retail crime bill signed by New York Governor

State Assemblyman Michael Cusick announced Thursday that Governor Cuomo has signed his bill, designed to combat organized retail crime. “Organized retail theft has grown exponentially in the past decade,” Cusick said. “My legislation gives the authorities the upper hand in prosecuting these crimes by allowing all charges to be heard in one venue.” Organized retail theft refers to a varitety of schemes that involve stolen and repackaged goods that are sold back into the marketplace and then moved across county and city lines in an effort to avoid prosecution. These schemes cost United States retailers about $30 billion a year, according to the Federal Bureau of Investigation. Cusick’s bill is the first time the phrase “organized retail crime” will be featured in the New York State statute, and aims to make it easier for prosecutors to try these cases. Several prominent retail and business leaders joined Cusick to praise the signing of the bill… [NY Assembly]

Police find giant heroin-selling operation behind secret door inside Brooklyn candy shop

The Gates Candy & Grocery in Bushwick advertises cold soda, ice cream and coffee on its green awning. But behind a secret door disguised as a shelf, cops found a massive heroin-selling hub, according to police. State Finance Department officers found the door during an inspection for untaxed cigarettes Wednesday night, and on Thursday, cops swarmed the store, located on Gates Ave. at St. Nicholas Ave. Inside, they found a truckload and a half of drugs and packing material, police said — including more than a million glassine envelopes, typically used to package heroin, stuffed into 50 boxes. Cops found several ziplock bags of suspected heroin, two full barrels of cutting agent, and several blue bags of what police believe to be fentanyl — a powerful prescription painkiller often used to cut and enhance heroin, police said. Police took their haul to a lab for testing… [NY Daily News]

400 iPads stolen from Amherst store

Police in Amherst, NY say thieves stole 400 iPads from a Best Buy store. Best Buy employees discovered the break-in when they showed up for their shifts around 6:30 Friday morning. Amherst Police Detective Lieutenant Rick Walter says the crime was very well planned out and very well orchestrated. “The suspects actually used a high lift type vehicle referred to as a sky lift which lifts workers to higher places. It was being used at a construction site close to Best Buy to get themselves onto the roof,” says Walter. From there, Walter says the thieves cut through the roof, then used a ladder to get into the store. Once there, they stole 400 iPads valued at more than $90,000.

“We don’t feel it’s an inside job at all. What we feel is it was very well planned, as a matter of fact, we’re conferring with police departments in Erie, Pennsylvania. I just recently found out also that Pittsburgh, Pennsylvania also had a very similar crime at a Best Buy. So we feel at this point that all three may possibly be related,” says Walter… [NBC News]

Man Sentenced to 70 Years in Prison for Retail Theft Scheme, Child Pornography, and Witness Tampering Charges

Bradley J. Prucha, 39, of West Des Moines, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to a total of 840 months, or 70 years, in federal prison for executing a multistate retail theft scheme, producing and possessing child pornography, distributing Xanax to minors, and attempting to bribe minor witnesses to change their trial testimony, announced United States Attorney Kevin E. VanderSchel. Prucha was the leader of a retail theft scheme printing UPC bar code stickers, and then placing the stickers on items in stores so they would ring up at a lower price. He then returned the items to stores for their full price, or sold them online through eBay, Craigslist, or directly to bulk buyers. Prucha committed the thefts between Florida and Iowa, where he maintained separate residences, 2 and in Nebraska and Illinois.

At trial, witnesses described how Prucha recruited adults and teenagers to place stickers on items, purchase them for the fraudulent price, and make the returns so as to avoid detection himself. At the time Prucha orchestrated and executed his retail bar coding scam, he was on probation for having committed a nearly identical bar code switching scheme in Florida. Prucha admitted to committing the bar code fraud scheme during his trial testimony. The evidence at trial also established Prucha used teenage girls to commit thefts for him, and paid the girls to have sex with him using proceeds from the scheme as well as Xanax. A former inmate at the Polk County Jail also testified that Prucha directed him to offer money to the minor witnesses for them to sign false affidavits, which would have contradicted their statements and the evidence in the case… [U.S. Department of Justice]

SF cops hunting 2 thieves in $500K Union Square jewelry heist

A pair of thieves broke into a jewelry store in San Francisco’s Union Square neighborhood early Thursday morning and stole over $500,000 worth of gold chains and bracelets before fleeing in a Ford sedan, police said Friday. At least one of the crooks was caught on security cameras using bolt cutters to destroy the lock and break through the back door of Grace Jewelry on the 100 block of O’Farrell Street at 3:44 a.m., said the store’s owner, Peng Zhou. The thief could then be seen entering the store with a bag and a sledge hammer and systematically going from counter to counter smashing through the glass and scooping up the jewelry, Zhou said.“From what we could tell, he was very targeted. He knew exactly where he was going,” Zhou said. “We have about 27 cases. He went for the men’s gold chains, bracelets and pendants. And then men’s diamond pieces. He did not touch anything else. Still images of the two suspects and the Ford sedan used in the crime were taken from security camera footage…” [SF Gate]

LP Worldwide: Credit card skimming at Calgary gas stations leads to arrests

Police are asking Calgarians to check their credit card statements for unusual charges after arresting two men accused of stealing 500 credit card numbers a month at gas stations. Officers say credit card skimming devices were placed on gas pumps throughout Calgary in at least 38 different gas stations. Police investigating reports of the devices searched two homes Wednesday and uncovered what they are describing as a credit card and identification counterfeiting lab, along with $150,000 worth of high-end clothing and merchandise. “This included hand tools and paint to create overlays, pinpad keys, cash, a track two data reader and encoder, and samples of fraudulent credit cards and counterfeit identification,” police said in a press release. “The merchandise includes items from Breitling, Holt Renfrew, Burberry, Nordstrom, Prada, Gucci, Canada Goose, Apple and Go Pro.” Police also found a list of 38 gas stations and have made sure those businesses no longer have credit card skimming devices on pumps. The two menwere charged with 39 offences, including mischief to property and data, forgery and possession of fraudulent credit cards… [CBC News]

Regular customer fingered in $18,000 pet store theft

Following up on a story from last week, an Omaha pet store owner says his stolen snakes have been returned. Don Everson said that the eight ball pythons all seemed to be in good health. They and several frozen rats were taken from his store. The loss was estimated at around $18,000. Everson told police he thought he recognized the thief on security video. The man lives in Harlan and had visited the store several times over the past six months. Officers went to see the man, which led to the snakes’ return. The man’s name hasn’t been released. It’s unclear whether he’s been charged… [CBS News]

The post Breaking News in the Industry: June 27, 2016 appeared first on LPM.

What President Trump means for retailers

After a long election night that defied many pollsters’ predictions, Donald J. Trump is set to become the next president of the United States. In his acceptance speech, Trump made clear he wants to unite the American people. But if Trump does not succeed in doing so, retailers can expect a “brutish” next four years, according to David French, senior vice president of government relations at the NRF.

It’s difficult to say with any clarity how Trump will govern, given his lack of a political track record and the unpredictable actions that have marked a historically contentious election cycle. But trade associations are hopeful that a positive relationship can be formed with the future president.

NRF CEO and President Matthew Shay congratulated the election winners in a press release on Wednesday morning, pledging to work with Trump and Congress on a “pro-growth, pro-jobs agenda.”

“The next few months will offer many opportunities for us to educate lawmakers on our priorities, such as tax reform and investment in our nation’s infrastructure, as well as pro-growth policies that create jobs and reward capital investment,” Shay said. “If this election taught us anything, it is the importance of focusing on policies and programs that not only benefit today’s economy, but the economy of the future and our next generation of workers.”

The biggest challenge with the presidential turnover, according to RILA’s Brian Dodge, executive vice president of communications and strategic initiatives, will be the “sheer volume of education that needs to be done to make sure that people who are making big decisions about industry priorities understand the industry and its impact on the economy and the challenges the industry faces.”

But policymaking won’t officially begin until January. For now, retailers can look forward to the holiday season as consumers distracted by the election return to their shopping lists.

“With the holiday season upon us, retailers are glad that this unprecedented election is over, along with the divisive rhetoric and the impact it had on consumers concerned about their future,” NRF CEO Matthew Shay said. “It is time to bring all Americans together, working in a bipartisan fashion to address the pressing needs of the day.” [Source: Retail Dive]

LP Worldwide: Tesco scandal named worst cyber crime in UK history

Repayments of £2.5 million have been made to customers of Tesco Bank after this week’s cyber scandal. The supermarket retailer today announced that full service had resumed in its financial arm after 9000 people lost money from their Tesco Banks accounts in a cybercrime incident. The incident, which has been dubbed the worst cybercrime attack on a British bank, is reportedly being investigated by GCHQ over fears it may have been state-sponsored. Initially the number of defrauded accounts was thought to be upwards of 20,000, but this was later revised to 9000.

“We’ve now refunded all customer accounts affected by fraud and lifted the suspension of online debit transactions so that customers can use their accounts as normal,” Tesco Bank chief executive Benny Higgins said.

“We’d also like to reassure our customers that none of their personal data has been compromised.” The chief executive of the Financial Conduct Authority, who are investigating the incident, Andrea Bailey told MPs: “There are elements of this, as far as we can tell at the moment, that look unprecedented. “The heart of concern is what is the root cause of this and what it tells us about the broader threats.” [Source: The Retail Gazette]

90% of employees violate data breach prevention policies

More than 90 percent of employees violate policies designed to prevent data breaches. New research says that employees pose a bigger threat than hackers even though companies are increasing technology investments to protect against external data breaches.

More data is changing hands and leaving company-controlled networks than ever before. Almost two-thirds of employees report regularly using personal technologies for work, mainly for convenience purposes. When conveniences and productivity are chosen over security, employees put sensitive data at risk, resulting in high costs. Forty-five percent of internal privacy failures are caused by intentional but non-malicious employee actions.

To manage employee behaviors that jeopardize data privacy and mitigate relevant costs, organizations must avoid collecting unnecessary data and build privacy into business workflows to make it easier for employees to comply with requirements. “Investing in technology to improve security is essential, however organizations also need to ensure that employees are doing their part to protect sensitive information,” said Brian Lee, data privacy practice leader at CEB.

“Employees will often work around controls – especially ones they feel are onerous – as a way to make their job easier. This ‘rationalized non-compliance’ can not only increase privacy risks, but even jeopardize corporate strategy and ultimately growth. Establishing a more balanced approach to information governance – one that complements technological controls with prudent and relevant privacy policies that employees can easily follow – will allow companies to effectively use the information they collect and protect against a damaging data breach,” concludes Lee. [Source: SC Magazine]

McDonald’s to Host IAI’s 2017 Elite Training Day

The International Association of Interviewers (IAI) is proud to announce the location of the 2017 Elite Training Day. McDonald’s Headquarters, affectionately named Hamburger University, near Chicago, IL, will host this annual event on April 4-5, 2017.

“We are very excited to have our Elite Training Day at such an impressive venue,” said Wayne Hoover, CFI, IAI Executive Director. “We are confident this high-caliber venue will be a perfect setting for this year’s elite event.”

Certified body language trainer & founder of Power Body Language, LLC, Lisa Mitchell, will reveal the power of body language and how to master nonverbal skills in her keynote session. “By understanding and mastering the power of body language and nonverbal cues, people can communicate with greater confidence and have greater influence,” Lisa Mitchell, Founder of Power Body Language, LLC, said. “I am honored to be able to present these insights at Elite Training Day 2017!”

Elite Training Day is the main event of the year in the interview and interrogation community where leading experts from across the globe gather for exclusive training and networking opportunities. Developed by IAI, this is the only event with a dedicated focus on honing the skills of the interviewer. [Source: International Association of Interviewers]

FBI Warns Internet Online Attacks on Private Industry Will Continue

Online attacks launched from thousands of connected devices, such as one that disabled parts of the internet in October, are here to stay, the Federal Bureau of Investigation is warning. The exploitation of the Internet of Things (IoT) to conduct small-to-large scale attacks on the private industry will very likely continue, the FBI wrote in a bulletin to private companies.

In a statement, an FBI spokeswoman said, In furtherance of public-private partnerships, the FBI routinely advises private industry of various cyberthreat indicators observed during the course of our investigations. This data is provided in order to help systems administrators guard against the actions of persistent cybercriminals.

The FBI issued the bulletin five days after hackers used a network—called Mirai—of internet-connected devices including cameras and digital-video recorders to launch an attack on internet service provider Dynamic Network Services Inc., known as Dyn. [Source: Wall Street Journal]

LP Worldwide: South Africa: Police Intervention in Umkhanyakude Results in Seizure of Counterfeit Goods

Additional Police deployments in the UMkhanyakude area continues to see results with regards to preventing cross-border crimes in the northern parts of the province. Following concerns from the community in the UMkhanyakude area with regards to hijackings and other cross border crimes in the area, KwaZulu-Natal police management deployed additional police officers to the area. The deployments are bearing fruits as serious crimes are showing signs of stabilizing following increased police operations in that area.

Whilst performing crime prevention duties, police spotted four vehicles along the R22 road at Mbazwana. When police pulled over the vehicles, they discovered that the vehicles were full of counterfeit goods. The said vehicles were searched and boxes of counterfeit goods such as shoes and takkies were seized. The occupants of the vehicles could not provide police with a satisfactory explanation as to how they got hold of such goods. All four drivers were arrested and charged accordingly.

The KwaZulu-Natal Acting Provincial Commissioner, Major General Bheki Langa praised the police officers for their dedication towards curbing crime in the area. “We will continue with these operations in the UMkhanyakude area to limit hijackings as well as to arrest those involved in cross-border crimes. I also appeal to the local community to work together with our police officers by providing them with information with regards to wanted criminals living in the area, he said. [Source: All Africa News]

Men charged with credit card skimming ring

The Middlesex District Attorney’s office (Massachusetts), in collaboration with Burlington and Bedford Police, announced the arrest of Antonio Testone of Italy, and Bogdan Ionut Bojur of Romania charged with more than 40 counts of credit card skimming and fraud.

Police allege that several branches of a local bank reported fraudulent activity. Bedford and Burlington Police say that photo stills and video surveillance confirmed that the two suspects were involved in all three incidents. In total, more than 120 fraudulent cards, ATM PIN numbers, and more than $15,000 in cash was recovered from the two suspects.
Testone was arraigned in Concord District Court and charged with one count of money laundering, one count of conspiracy, six counts of credit card forgery, two counts of card fraud over $250, six counts of possession of a blank credit card, and other charges. Bujor was arraigned in Woburn District Court and charged with 10 total counts of larceny, nine total counts of credit card fraud, money laundering, conspiracy, and other charges.

Investigators believe other suspects are involved. [Source: WHDH News Boston]

Attempted shoplifter stashed 49 items in his pants

Police have arrested a man who they say attempted to steal 49 items from a New Jersey Walgreens by stuffing them into his pants. Frank Wiley, 43, of Irvington, tried to leave the store Monday with 49 personal hygiene products – including deodorants, Visine dry eye drops, and bottles of body wash – in his pants, Millburn Police said in a release.

“He was spotted by an employee, probably walking in a strange way with all (of) that hidden,” Captain Michael Mulligan said.

Altogether, police said the items were valued at $333.56. Wiley was arrested on shoplifting charges, and released with a summons, police said. [Source: NewJersey.com]

The post Breaking News in the Industry: November 10, 2016 appeared first on LPM.

Dallas Cowboy cleared of shoplifting claims; police apologize

This is a follow-up to a report we brought you on Tuesday. Lucky Whitehead was not responsible for a shoplifting incident in Woodbridge, Virginia, last month, Prince William police spokesperson Sergeant Jonathan Perok said Tuesday. The professional football player grad was released from the Dallas Cowboys on Monday after news of the “arrest” was made public, along with claims that Whitehead failed to appear in court to face the charges earlier this month. In response to the allegations, Whitehead’s agent told the media Monday evening that his client wasn’t even in Virginia at the time. Flight information shared by Whitehead showed his flight from Dallas didn’t arrive in Virginia until hours after the shoplifting incident. “Upon reviewing the June 22, 2017 arrest of an individual named ‘Rodney Darnell Whitehead Jr.’, the police department is confident that the man charged with petit larceny, and who is subsequently being sought on an active warrant for failure to appear in court, is not Lucky Whitehead of the Dallas Cowboys.” Investigators are now seeking to identify the man who claimed to be Whitehead, while also working with the Prince William County Commonwealth Attorney’s Office to clear Whitehead of all charges related to the investigation.

“The police department regrets the impact these events had on Mr. Whitehead and his family,” Perok said. Early on June 22, police responded to a shoplifting report at the Wawa at 2051 Daniel Stuart Square. A store employee told police that a man ran from the store without paying for some merchandise. Police located the man in the parking lot and he identified himself as Whitehead. He did not have identification, Perok disclosed Tuesday, but the man provided Whitehead’s name, date of birth and social security number. “The DMV photo on file was then used to compare to the man who was in custody,” Perok said. “Officers acted in good faith that, at the time, the man in custody was the same man matching the information provided. At this point, the police department is also confident in confirming that Mr. Whitehead’s identify was falsely provided to police during the investigation.” Dallas head coach Jason Garrett said Tuesday the Cowboys will not bring Whitehead back.  [For more: InsideNova]

Employee sentenced in $1 million embezzlement

The former finance director of Jazzercise was sentenced Tuesday to more than seven years in prison for embezzling what authorities say was upwards of $1 million from the Carlsbad, California-based company and its owners, possibly to feed a gambling habit. Sherri O. Potts, who spent nearly nine years as the corporate director of finance for the physical-fitness firm, was arrested in Carlsbad in October on 50 theft-related charges, including forgery, fraudulent appropriation and grand theft by an employee. She pleaded guilty in March to one count of grand theft, three counts of forgery and one count of failing to report the stolen money on her tax returns. She also admitted that she stole more than $500,000. Superior Court Judge Michael Washington sentenced the 60-year-old Fallbrook resident to seven years, eight months in prison. [For more: The San Diego Union-Tribune]

Area man gets prison for credit card fraud

A 39-year-old former rural Boyceville, Wisconsin, man has been sentenced to 6½ years in prison for the fraudulent use of a credit card for charging more than $10,000 on a card stolen in November. Ryan J. Hobbick was given five years of extended supervision upon his release from prison and must pay $12,453 in fines and restitution. According to the criminal complaint: A Dunn County sheriff’s search warrant was executed December 15, 2014, at Hobbick’s then-Ridgeland address. Receipts were found for copper tubing and parts as well as furniture and other personal items at Menard’s stores in Eau Claire and Rice Lake. A gift certificate for $2,000 was found that authorities believe was to be delivered to Hobbick’s home in another person’s name.  [For more: Leader-Telegram]

More than 6 billion records have been hacked this year

More than six billion records have been hacked in 2017, surpassing the number of personal, financial or medical records compromised overall in 2016. According to a mid-year report from Richmond-based cybersecurity firm Risk Based Security, there have been 2,227 public data breaches as of June 30 this year. “It is stunning to see the steady increase in the number of breaches impacting one million or more records. In the first six months of 2013, 2014 and 2015, the number of these large breaches hovered in the mid-teens. Last year we saw that number jump to 28, and now, for the first six months of this year, we’re tracking 50 such incidents,” says Inga Goddijn, Executive Vice President for Risk Based Security.

Cybercriminals are targeting individuals’ tax information at a higher rate than in previous years. In 2016, about 160 phishing campaigns successfully collected victims’ W-2 information. This year, similar incidents have increased by 25 percent, including scams targeting human resource departments, payroll service providers and state employment agencies. America’s Job Link Alliance in March fell victim to a multi-state data breach that exposed the birthdates, social security numbers, names and addresses of 5.5 million job seekers. Criminal data breaches are becoming more commonplace, it’s estimated that they’ll cost businesses a total of $8 trillion over the next five years, according to a report from U.K-based market intelligence firm Juniper Research last month.  [For more: KRCA3 News]

The post Breaking News in the Industry: July 27, 2017 appeared first on LPM.

Almost 300 cartons of counterfeit toys seized at Charleston port

Protecting our shores from the constant threat of copyright infringement, US Customs and Border Protection’s Office of Field Operations seized a shipment of counterfeit toys valued at $121,442 at a Charleston port. 

Arriving in late June from China and headed to an importer based in North Carolina, Customs officials say the shipment contained multiple items bearing trademarks and copyrights registered to Cartoon Network, Apple, Saban, and Danjaq LLC, owners of the rights to James Bond intellectual properties. For those who can’t tell a Megazord from a Putty Patroller, Saban Brands holds the copyrights to the Power Rangers. 

Suspecting the goods weren’t quite on the level, the CBP contacted the actual owners of the intellectual properties being infringed upon and determined that the 284 cartons of toys were counterfeit.

“Counterfeiting robs lawful rights holders of their unique ideas and the ability to make a profit from them,” said Robert Fencel, CBP Charleston area port director, in a press release. “It damages legitimate manufacturers and can harm consumers because manufacturers of counterfeit items have little motivation to use safe, high-quality materials in their products. In essence, they’re trying to make a ‘quick buck’ off of another party’s reputation and ideas.”  [For more: Charleston City Paper]

Employee arrested for stealing electronics

Loss prevention personnel from Target called the Southington, Connecticut, Police Department on April 13, at approximately 11:23 a.m., to report an investigation of an employee theft. On July 19, at approximately 7:45 p.m., Bonnie Davis, 31, of Bristol was turned over to the Southington Police Department by Farmington police to face charges. The warrant alleges that on April 8, along with another unspecified date, Davis selected numerous high dollar items from the shelves and placed them into a shopping cart. She then took the merchandise to the delivery area where she placed the items into a box and had the items shipped to her residence. Most of the merchandise involved in this incident was electronics. Target gave a value of $5,653.31 for the merchandise. Davis was charged with third degree larceny. she was released on a $2,500 bond with a court appearance scheduled for July 31 at the Bristol Superior Court.  [For more: The Southington Observer]

Florida man charged in lottery sting takes plea deal

One of four convenience store workers arrested in a May lottery sting operation pleaded no contest Wednesday to a charge of grand theft of less than $20,000. Vishnubhai Patel, 47, appeared in court next to his defense attorney Carrie Proctor. The only words he spoke during the roughly five-minute change of plea hearing were “yes, sir” and “no, sir” when answering questions from 5th Circuit Court Judge Willard Pope. Patel will serve 18 months of probation. He also will have to reimburse the Security Department of the Florida Lottery $351.83 for the sting operation costs and complete 60 hours of community service. Grand theft of less than $20,000 is a third-degree felony punishable by up to five years in prison.

On the night of Patel’s arrest, a Florida Lottery state official, pretending to be a customer, gave the mart’s store clerk a winning ticket valued at $599 and asked the clerk to make sure it was valid. The clerk scanned the ticket, which indicated it was a winning ticket, and then showed it to Patel. The clerk then returned to the undercover officer and said the ticket was valued at $10 and tried to sell him a $5 scratch-off ticket instead of giving the full amount, according to Patel’s arrest report. When officials returned to arrest the clerk and Patel, he told them he knew the ticket was valid and knew the clerk was going to keep it. Officials found the ticket and player claim instructions stapled together in a garbage box. Patel admitted he tossed the ticket into the box when he saw officials returning to the store, according to the report. The clerk, Pina Patel, 44, also was arrested, charged with grand theft, and solicitation and conspiracy.  [For more: Ocala StarBanner]

Southern US is a hotbed for gun theft

2012 and 2015, thieves lifted $328 million worth of guns from private owners across the southern United States, according to a study released this week. The Center for American Progress said Tuesday more than half of the 1.2 million privately-owned firearms stolen over those three years came from southern states. Seven of the top 10 states where 22,000 guns go missing from retailers daily are southern: Texas, Florida, Georgia, North Carolina, South Carolina, Alabama and Mississippi. “This problem does not affect all states equally,” the study says. “From 2012 through 2015, the average rate of the five states with the highest rates of gun theft from private owners, Tennessee, Arkansas, South Carolina, Oklahoma, and Alabama was 13 times higher than the average rate of the five states with the lowest rates, Hawaii, Connecticut, Rhode Island, New York, and Massachusetts.” Likewise, gun store thefts occurred 18 times more often in the top five ranking states as compared to the bottom five. Dealers in Georgia reported more than 1,100 guns stolen in 2016, a 122 percent increase over the year before. South Carolina gun store thefts tripled in the same time-frame, according to the study. “Every two minutes, a gun is stolen in America,” said Chelsea Parsons, vice president of Guns and Crime Policy at the Center for American Progress, in a press release Tuesday. “These stolen guns feed directly into illegal gun trafficking networks and are destined for use in violent crimes, so gun dealers have a substantial obligation to secure their dangerous inventory and prevent against theft.” The center recommends state and federal officials enact safe storage laws with tougher penalties for private owners, while challenging the Bureau of Alcohol, Tobacco, Firearms and Explosives to regulate security protocols and inventory compliance measures for gun dealers nationwide… so long as Congress gets out of their way.

Rep. Brad Schneider, a Democrat from Illinois, proposed a H.R. 3361 Tuesday in response to this problem. His proposal, the SECURE (Safety Enhancements for Communities Using Reasonable and Effective) Firearm Storage Act, would mandate federally licensed dealers safely store their inventory when closed for business, as well as compel the attorney general to promulgate security policies for FFLs. Compliance with these to-be-determined regulations would become part of the FFL application approval process. “The SECURE Firearm Storage Act makes practical improvements to ensure gun dealers are properly safeguarding their inventory so fewer of these weapons can be easily stolen and later used in violent crimes,” he said in a press release. “This bill is a commonsense step for gun safety, and I remain committed to finding further thoughtful ways to tackle this critical public health crisis in our communities.”
Parsons called the bill “a crucial step forward.” “Nobody in America is in favor of gun theft,” she said. “And Congress should act quickly to enact this commonsense measure to help protect all of our communities.”  [For more: Guns.com]

The post Breaking News in the Industry: July 28, 2017 appeared first on LPM.

Michigan man sentenced for organized retail crime scheme

A Kingsley, Michigan, man will spend at least three years in prison for his stealing and reselling video games amid discovered during a broader investigation into an organized theft scheme that put three others in jail. Thirteenth Circuit Court Judge Thomas Power on Friday sentenced Gene Allen Perritt, 30, to no less than three years in prison stemming from a guilty plea to an organized retail crime charge — a felony that could have put him away for five years. “This is different than … impulse,” Power said, noting Perritt was on parole when the thefts occurred. “This is systematic over a long period of time requiring a number of individual decisions to both plan and execute repeated thefts. At some point, that makes it a lot worse.” Perritt pleaded guilty last month to the charge and told Power he felt “like a fool” to be in court Friday. His attorney Paul Jarboe said selling stolen video games alone isn’t the “crime of the century” and acknowledged that his client cooperated with law enforcement amid the continuing investigation. “I’m trying to change everything about myself,” Perritt said, noting a desire to give back to the community. Power said Perritt’s coat-pouch method of disabling anti-theft devices was “rather sophisticated.” He also noted that surveillance footage placed him at multiple stores where thefts occurred over a two-month period but said he’ll only be sentenced for his role in stealing from one store. [For more: Traverse City Record-Eagle]

Maryland officer buys diapers for mom caught shoplifting for her son

A police officer in Laurel, Maryland, is being commended after he paid for the diapers of a mom who attempted to shoplift them from a supermarket for her baby. When the struggling 20-year-old mother found out she didn’t have enough money to purchase food and diapers for her child on July 22, she decided to steal the diapers from a supermarket and was caught. But Officer Bennett Johns of the Laurel Police Department felt sympathy for the young mother, and instead of arresting her, the rookie officer purchased the two packs of diapers for her himself. She was still issued a criminal citation for the theft. “Though we often joke that our field trainees are still in diapers, it turns out that rookie Officer Johns was not buying these for himself,” the Laurel Police Department wrote in a Facebook post. “Though it’s but a snapshot of some of the work your officers are doing daily,” the post continues, “we still wanted to take a moment to thank Officer Johns for not just fairly enforcing the law, but also showing empathy to an innocent child put in a difficult situation.” The woman’s name has not been released, and she has been referred to advocacy groups who specialize in helping struggling families.  [For more: People Human Interest]

Bucks from bricks: These retailers make the most money per square foot on their real estate

Sales per square foot — a popular metric used when comparing the profitability of retail real estate — have tumbled in recent years as the retail industry struggles to draw in shoppers. Those sales, as measured by CoStar, at most public retailers have declined to an average of around $325 per square foot, down from roughly $375 in the early 2000’s, the commercial real-estate research firm said in a report. To be sure, there are still a few bright spots in the industry. Top retailers are managing to grow sales in the brick-and-mortar business, even as more and more shoppers ring up purchases online. Meantime, mall, shopping center and street-level retail landlords,  names like Simon, GGP, Macerich and Taubman, have been looking for ways to keep their properties fresh, innovative and enticing to consumers. Their best interests are aligned with retailers in that they also want to claim the most sales per square foot. Here are the top 5 retailers that are bringing in the most dollars per square foot of real estate, according to CoStar.
5. Lululemon
The retailer does sales of $1,560 per square foot — less than its technology and jewelry counterparts. But apparel is notably a tough sector to draw shoppers toward today.
4. Tiffany & Co.
The jewelry industry is led by Tiffany & Co., which also boasts an impressive presence globally. Tiffany does sales of $2,951 per square foot.
3. Murphy USA
Don’t forget the gasoline retailers. Murphy USA sells both fuel and convenience merchandise to consumers across America. With about 1,400 retail stores, Murphy USA does $3,721 in sales per square foot.
2. Generation Next Franchise Brands
Chances are you haven’t head of Generation Next Franchise Brands. But this retailer is present in movie theaters, malls, airports, hospitals, tourist attractions, and more across America. Generation Next Franchise does sales of $3,970 per square foot.
1. Apple
You could’ve guessed it. The top retailer, based on sales per square foot, is Apple, CoStar found. This might not come as a surprise for many, considering the hefty price tags on many of the technology company’s products, which range from MacBooks, to iPad devices to the Apple Watch. Apple does $5,546 in sales per square foot.  [For more: CNBC News]

Texas City police bust retail theft ring at Tanger Outlet Mall

Texas City police have arrested four shoplifting suspects who are believed to be part of a much larger theft ring that spans the state of Texas. On Sunday, July 23, police responded to a shoplifting call at the Tanger Outlet Mall, 5885 Gulf Freeway. Police said that after detaining the four suspects, investigators recovered more than $1,700 in shoes and clothing, stolen from the Express store and the Nike store at the mall.  All four suspects have been charged with organized retail theft, and the merchandise has been returned to the stores. The suspects are in the Galveston County Jail. Under arrest and charged with organized retail crime are Cristina Isabel Rios, 19; Miguel Hernadez-Andablo, 31; Edward Palomino, 24, and Michael Patrick Gracia, 23.  [For more: The Citizen]

The post Breaking News in the Industry: July 31, 2017 appeared first on LPM.

Around 11:00 PM on Saturday, police reports say that a man assaulted a Kalamazoo County Deputy and loss prevention associate with a metal flashlight.  The suspect, who wasn’t identified in the story, had been stopped on suspicion of shoplifting.Authorities say that the LP associate was trying to detain the suspect, when the Deputy tried to arrest the suspect in the parking lot, when the scuffle broke out. The suspect allegedly struck the deputy in the head several times with a metal flashlight.  The LP associate was also struck in the head. Both were transported to a local hospital, where they were treated and released. Deputies report that the suspect was arrested and taken to the Kalamazoo County Jail and is facing multiple assault charges. Names of the Deputy, LP associate, suspect and retailer were not provided for this story. We will bring you updates to this story as we receive them. [WOOD8 News]

The post Deputy, Loss Prevention Associate Assaulted, Hospitalized appeared first on LPM.

New York man arrested for credit card fraud; facing over 100 counts

Police said they arrested a man Wednesday after reports of a suspected credit card fraud incident at Whole Foods. Glastonbury, Connecticut, police said an investigation determined that Robert Bari, 38, of Milton, N.Y., was in possession of numerous fraudulent credit cards and gift cards. He is charged with forgery in the 1st degree, larceny is the 6th degree (3 counts), possession of controlled substance, pills not in original container, ID theft in the 3rd degree (17 counts),forgery in the 2nd degree (17 counts), criminal impersonation (17 counts), unlawful reproduction of a credit card (17 counts), illegal use of a credit card (17 counts) and credit card theft (17 counts). Bari appeared in Manchester court Thursday where he was released on a $500,000 bond. He is due back in court August 9.  [For more: Fox61 News]

“Mastermind” of gun theft burglary crew arrested

A Hallandale Beach, Florida, man is being called the “mastermind” of a crew accused of breaking into Bass Pro Shops in Dania Beach to steal weapons. Hallandale Beach police arrested Noel George Baker, Jr., 24, at his home, the second arrest in the case, Major Pedro Abut said Friday. Shawn Sherkins Derival, 19, of Hollywood, Florida, who the sheriff’s office said appeared on store surveillance video as he allegedly stole rifles, was recognized by a Hallandale Beach police officer and was arrested on Tuesday. The sporting goods store was burglarized July 20 and 21 by five men, the sheriff’s office said. [For more: SunSentinel]

Manhattan man admits to stealing dead trooper’s identity

A Manhattan man admitted Friday that he stole the identity of a state trooper killed in the line of duty last year and tried to go on a $5,000 spending spree on the day of the officer’s funeral. Steven J. Calderon, 32, pleaded guilty in Saratoga County Court to first-degree identity theft, a felony, the District Attorney’s Office said.

The case began last October, when Trooper Timothy Pratt was hit by a car on Ballard Road in Wilton while trying to help a tractor-trailer turn around. He died hours later. Days later, while Pratt was being buried, Calderon, who police believed was part of an identity-theft ring, entered a downstate Home Depot and opened a $5,000 line of credit using the trooper’s personal information. He made a purchase at the store and went to another Home Depot, where a clerk became suspicious after he exceeded the credit limit, according to the police account.

When Calderon was arrested in late December, then-Captain (now Major) Robert Patnaude said the clerk contacted the store’s loss-prevention department, which called Pratt’s daughter to ask if her father was making the purchases. “And she said, ‘No, I’m at my father’s funeral,'” Patnaude said. State Police used store surveillance cameras to identify the suspect’s car and license plate number, Patnaude said. Troopers also identified a shipping address from Home Depot documents.  [For more: TimesUnion]

LP Worldwide: Dutch police catch Romanian gang suspected in truck cargo robberies

After over two years of investigation, the Dutch police arrested a group of Romanians suspected of stealing the cargo of at least 17 trucks while the trucks were on the move. The robberies started in early 2015. A number of arrests were made over the weekend, according to reports. The gang drove a car up behind the moving truck. Thieves then got onto the hood of the moving car, forced the truck’s cargo area open and threw the items in there into their own car. Other following cars kept traffic at a distance. The thieves mostly targeted trucks carrying expensive electronics.

According to the reports, the police traced the gang members to a luxury holiday park on the Veluwe. When searching the cottage they stayed in, the police found about half a million euros worth of iPhones, as well as a van specially equipped for this type of cargo robbery.  It is not yet clear whether the suspects will be tried in the Netherlands, only five of the 17 robberies happened in the Netherlands, the rest in other parts of Europe. Romania may ask that they be extradited because of the crimes committed elsewhere in Europe.  Cargo theft from moving trucks is an increasingly popular crime in the Netherlands. In the first three months of 2017 a total of 136 trucks were stolen from in this way, 46 percent more than in the same period in 2016.  [For more: NL Times]

Chicago man swiping TVs tells LP he has a gun

A Chicago man pushing a cart with two flat screen TVs out of the Oak Lawn Kmart was arrested after he told loss prevention associates that he had a gun, prosecutors said. Pedro Montalvo, 29, appeared before Cook County Judge Peter Felice on an aggravated robbery charge. He was also cited for violating his probation and has another pending case for reckless driving. The alleged heist unfolded around 3:08 p.m. July 26. According to the charges, Montalvo had loaded two 40-inch, Samsung flat-screen TVs into a cart after he had cut off their security devices. He pushed the cart out of the store at 95th Street and Pulaski Road. Loss prevention associates pursued Montalvo into the parking lot where he told them he had a gun and reached for his belt, the prosecutor said. Montalvo allegedly abandoned the cart with the televisions in the parking lot and fled. Police canvassed the area and he was found a short time later. The prosecutor said it was not known if an actual gun was recovered.

The prosecutor said that Montalvo has had various misdemeanor arrests for battery and retail theft, two of which were felonies that got knocked down to misdemeanors. The assistant public defender told the judge that Montalvo is the father of four children and has applied for disability.“It’s never a good idea to tell someone you have a gun,” Judge Felice said before setting bail at $200,000. Bail on the violation of bail for reckless driving was also set at $50,000. Montalvo is due back in court August 15 in Bridgeview.  [For more: Oak Lawn Patch]

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A 62-year-old transient man in Califonia was arrested after allegedly stealing merchandise from Walmart and using that merchandise against the store loss prevention associates confronting him, according to Napa police.

After putting more than $300 worth of merchandise into a shopping cart, the subject, later identified as Mark Leray Vroman, exited the store with the merchandise, bypassing checkout and not rendering payment, police said. When loss prevention associates contacted Vroman outside the store, Vroman reached into the shopping cart and pulled out a large black hunting-style knife that he had just stolen and swung it in the direction of the LP associates.

Vroman first threatened to stab the officers then, as he reached into his backpack, threatened to shoot them. Fearing for their safety, the associates retreated and headed back toward the store. Police said that Vroman then lost his footing, fell to the ground and dropped the knife before fleeing the scene.

Police located Vroman nearby and, after he was positively identified by loss prevention and surveillance footage, was arrested. Vroman was booked on suspicion of robbery, dissuading a witness by threats, and criminal threats as well as a parole violation. No firearms were located. [Source: Napa Valley Register]

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Deputy recovering after being assaulted responding to shoplifting call [Update]

In the Monday, July 31 issue of the LP Insider, we brought you a story about a Kalamazoo County Deputy and LP Associate were assaulted by a man fleeing the store after and alleged shoplifting incident.  This is an update to that story. The deputy now has multiple staples in his head after being attacked while responding to the shoplifting call. The man accused of carrying out the attack has been identified as James Collins,  24,and has now been officially charged and faces multiple charges including assault with intent to murder, and this isn’t his first run-in with the law. It was in the parking lot of a Kohl’s where the deputy was attacked. The sheriff’s office says Collins beat the deputy with his own flashlight, as he was responding to a call about shoplifting. [For more: WWMT3 News]

Bar owner admits processing $80K in fraudulent credit card purchases

A Philadelphia bar owner has pleaded guilty to processing more than $87,000 in fraudulent credit card purchases. Fifty-two-year-old Michael Hoffner Sr. acknowledged before a federal judge on Monday that he knew the charges were made using cards with stolen credit information between September and December of 2012. Prosecutors say that at least two credit card companies had warned Hoffner about a large number of disputed charges at his Brown Street Pub in the city’s Fairmount section. Hoffner pleaded guilty to 40 counts of wire fraud the day before jury selection was to begin for his trial. Online court records do not list a sentencing date. But prosecutors say he could face more than three years in prison under the plea agreement.  [For more: US News]

Troy police terminate pursuit of suspects after their vehicle runs red light

Troy police terminated a pursuit of suspects who may have been involved in an attempted shoplifting and tampering with a vehicle in the parking lot of Home Depot, at about 10 p.m. Friday, July 28. A store manager told police that two men were stopped by loss prevention associates after they allegedly attempted to steal merchandise. They were ordered out of the store. The manager later observed them in the parking lot used by employees, where it appeared they were tampering with a vehicle. The manager told police he believed they arrived in a tan 2002 GMC Envoy, which a responding officer observed driving through the lot. The officer attempted a traffic stop but the driver took off, traveling 80 to 90 miles per hour, going south in the northbound lanes of Coolidge Highway. The vehicle ran a red light at the next intersection and the pursuit was terminated. [For more: Daily Tribune News]

Store’s data breach funds go to nonprofits

Home Depot’s class action settlement with customers whose personal and confidential financial information was stolen by hackers who penetrated the Atlanta-based home supply chain’s data security firewalls will provide an unexpected windfall to the Atlanta Legal Aid Society and Georgia Legal Services.  Lawyers representing Home Depot and those representing the class of as many as 56 million Home Depot customers have agreed to donate $250,000 to each nonprofit organization to enhance their services to the state’s low-income and indigent populace, many of whom the organizations’ executives told the court have been victimized by thieves and fraudsters trafficking in stolen identities. The donations come from more than $3.5 million in unclaimed funds, known as cy pres money, remaining after class members received their settlement shares.

Leftover settlement funds also will go to three other organizations that combat identity theft—the Identity Theft Resource Center, Electronic Frontier Foundation in San Francisco and the Retail Cyber Intelligence Sharing Center. Each organization will receive approximately $900,000 to help victims of data breaches. Home Depot agreed last year to pay $27 million to as many as 56 million Home Depot customers across the nation whose personal and financial information was stolen in 2014 when hackers breached electronic checkout systems across the chain and made the information available to the cyber underworld.  [For more: Daily Report]

Don’t try this: Thieves steal iPhones from moving truck [Update]

Yesterday, in the August 1 issue of the LP Insider, we brought you a story about the Dutch Police and Romanian cargo thieves.  This is an update to that story, with more details. Dutch police arrested five Romanian men suspected of stealing iPhones worth 500,000 euros ($590,000) in a dangerous heist on a moving truck, a spokesman said. The five men, aged from 33 to 43, allegedly stole the iPhones in a late-night raid a week ago by driving a modified van so close to the delivery truck that one of the suspects was able to clamber across the van’s hood and break into the truck while it drove along a Dutch road, said police spokesman Ed Kraszewski. He said the suspect then passed boxes of iPhones back to the van through a hole cut in its roof.  Kraszewski said police have long been investigating thefts from trucks but remained skeptical that such a heist could succeed. Not anymore.

“The truck was taking its freight from A-to-B and did not stop. Even so, (the phones) were gone,” he said. “So it must have happened that way. And now we finally have the evidence, with the van and the loot.” The men were arrested Saturday at a holiday park in the central Netherlands, where police also recovered iPhones and the van they believe was used in the theft. The suspects were to appear Tuesday before an investigating judge. Such raids have been reported elsewhere in Europe, almost always targeting high-end smartphones, but there have been no arrests in the other cases, Kraszewski said. Dutch police plan to send fingerprints of the suspects to European colleagues to check for matches in previous thefts.  [For more: CNBC]

The post Breaking News in the Industry: August 2, 2017 appeared first on LPM.

A suspected shoplifter was fatally shot to death by an off-duty, Baltimore County police officer who was working security.  The officer was in full uniform but did not have a body camera, when he suspected the man of not paying for detergent at a local supermarket.  The officer approached the man, who’s name hasn’t been released, as he was getting into the drivers side of  a vehicle and drove off dragging the police officer over 100 feet before he shot the driver in the vehicle.  Police spokeswoman, Officer Jennifer Peach, did not say how the officer came to be dragged.

The officer “feared for his life,” she said. The suspect died at the scene, and another person, who had been sitting in the passenger’s seat of the vehicle, was hospitalized for stress-related pain, Peach said. The officer, whose name also was not released, was not injured, she said. Some at the scene and on social media, questioned the officer’s justification for shooting the suspect and wondered whether the man had a weapon. Peach said she did not know whether one was found. “The person is definitely wrong for shoplifting, but to shoot and kill somebody?” a shopper said. “Especially if they didn’t have a weapon …” County Councilman Tom Quirk, who represents the area, called the incident “unfortunate,” and said he was relieved to hear the officer was not hurt. “We’re a very safe community,” he said. “Bad things sometimes happen in good places.”  [Source: The Baltimore Sun]

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Police arrested a woman accused of a robbery at a retail store in Palm Springs, then assaulting store loss prevention associates and trying to run them over with her car Monday afternoon. 38-year-old, Cathedral City resident Rachel Sample was arrested after allegedly stealing items from the Palm Springs Walmart, then assaulting and trying to run over loss prevention personnel. Palm Springs police officers were called to the Walmart regarding a possible robbery.

Officers arrived on scene and were told that Sample refused to cooperate with loss prevention associates inside the store and at one point swung her purse at them and threatened to kill them. Officers also learned that Sample fled the scene in a vehicle and tried to run down the loss prevention associates as they attempted to detain her. Police used her license plate number to track down sample at her home where she was arrested a few hours later. Sample was taken into custody and booked into the Larry D. Smith Correctional Facility in Banning. She is being held on $30,000 bail.  [Source: KESQ News]

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Michigan police take down $300K theft-to-pawn ring

The owner of iPawn Shop in Detroit, and one store associate will be arraigned in 36th District Court on multiple felony charges stemming from a six-month criminal investigation by the Canton Police Department, Michigan State Police and the Wayne County Prosecutor’s Office. Gasswan Usama Gargis, 38, of Commerce Township, is being arraigned on two misdemeanor charges and the following felony charges: one count of conducting a criminal enterprise; seven counts of organized retail crime, and six counts of receiving & concealing stolen property over $1,000. Trisha-Lynette Viado Razon, 20, of Orchard Lake, is being arraigned on two misdemeanor charges and the following felony charges: five counts of organized retail crime; and two counts of receiving & concealing stolen property over $1,000.

On June 12, the Canton Police Department executed a search warrant at the iPawn Shop on 8 Mile Road in Detroit, and at Gargis’ home in Commerce Township, resulting in the recovery of over $300,000 worth
of new, in-box merchandise, including high-end electronics, kitchen appliances, generators, and power tools. Wayne County Prosecutor Kym L. Worthy said: “The defendants are allegedly responsible for thwarting over approximately $300,000 from major big box retailers in the metro Detroit area. These charges today are the result of months of tedious and exhaustive work by the Canton Police Department and the Wayne County Prosecutor’s Office. This case should serve as notice that these wide-scale sales of stolen goods to pawn shop operations will be vigorously investigated and prosecuted in Wayne County.”  [For more: Plymouth Patch]

Employee charged with suspected fraudulent returns scheme

Carlentz Desire, a 21-year-old former clerk at the Sears in Nanuet, New York, has been hit with three felony charges for allegedly printing false return slips totaling $5,483 and depositing the money for the returns in his bank account. On Tuesday, August 1, Desire’s store manager reported the alleged theft via phony return slips to Clarkstown PD. Following an investigation, Clarkstown PD agreed with the manager’s assessment of the situation, concluding that Desire transferred the monies from the false return slips directly onto his debit card. Officer Peter Walker told the Rockland County Times there was a total of five thefts over a five-week period. Desire faces two D felony charges of third degree grand larceny and third degree criminal possession of stolen property and one E felony charge of first degree falsification of business records. The Rockland County Times has not yet confirmed whether Desire has a criminal record or is a first-time offender.  [For more: Rockland County Times]

Two defensive starters for Ole Miss arrested on shoplifting charges

Two Ole Miss defensive starters were arrested Tuesday night on shoplifting charges, and interim coach Matt Luke has suspended them for the September 3rd opener against South Alabama. According to a Lafayette County (Mississippi) Detention Center jail log, Oxford police arrested cornerback Ken Webster and linebacker Detric Bing-Dukes around 7:55 p.m. ET on Tuesday. They were released on bond about an hour later. Oxford Police Chief Joey East didn’t immediately respond to ESPN’s request for copies of incident reports on Wednesday morning. “We are gathering facts on the matter,” Luke said through a university spokesman.Luke was named the Rebels’ interim coach when former coach Hugh Freeze abruptly resigned last month. Webster, a junior from Decatur, Georgia, missed nearly all of the 2016 season after he injured his left knee on the opening defensive series of the first game. He started every game in 2015 and is expected to return to the starting lineup this season. Bing-Dukes, a junior from Tucker, Georgia, played in 11 games at middle linebacker last season, totaling 41 tackles with three tackles for loss. He transferred to Ole Miss from Iowa Western Community College, after redshirting at Georgia in 2014. On Thursday, Luke also said receiver Octavious Cooley has been suspended for an undisclosed violation of team rules.  [For more: ESPN]

Would-be thief uses foil in attempt to thwart store’s security sensors

A 21-year-old woman from the Saginaw, Michigan, area took a crafty approach in her alleged attempt to steal from the Macy’s store on Big Beaver Rd. in Troy recently. According to Troy police, the woman was stopped by a loss prevention associate who found $888.73 worth of merchandise in her purse lined with aluminum foil which she thought could defeat the store’s anti-theft security sensors. She also had a wire cutting tool in her purse, police said.  Following her arrest, the woman was charged with second-degree retail fraud and possession of burglary tools.  [For more: Oakland Press]

Employee accused of stealing $2 million from law firm

A 48-year-old woman is accused of stealing more than $2 million from the law firm of Bernard “Bunny” Charbonnet Jr. where she worked as comptroller and office manager for more than nine years, according to police records. Latanya Arnold was arrested on felony theft, forgery and bank fraud. Her husband, Raymond Arnold, 48, was arrested on the same charges. Latanya Arnold withdrew money from six different Charbonnet accounts from 2008 to 2017, according to an application for an arrest warrant. She used the money to bail her son out of jail, to pay the lease for a Mercedes Benz vehicle, repay personal loans, and for expenses related to several companies she owns with her husband, including M&M Express and Vapor’s Edge, both domiciled in Slidell, the warrant states.

Charbonnet, first discovered the illegal activity in May when he noticed an unauthorized withdrawal of $25,000. Arnold, who was the only other person besides Charbonnet with access to the account, used the money to bail her son, Malcolm Arnold, out of jail, according to the warrant. When Charbonnet confronted Arnold she agreed to pay him back. She did so, however, by forging Charbonnet’s name on a check from one of the law firm’s bank accounts to which she didn’t have access, police said. “He was being repaid by the unauthorized withdrawal of his own money,” the warrant states. Charbonnet ordered an audit of his bank accounts and found that Arnold had stolen more than $2.1 million, leading to her arrest. Arnold had authorization to sign checks from five of the six affected bank accounts, police said. She forged Charbonnet’s name on a check to withdraw money from the sixth account, the warrant states. Latanya Arnold posted bail of $100,000. Her husband, Raymond Arnold, posted $50,000.  [For more: Times-Picayune]

The post Breaking News in the Industry: August 3, 2017 appeared first on LPM.

A Hammond, Louisiana, man was in critical condition Wednesday with severe head trauma and a Tickfaw man left dead after a suspected shoplifting traffic stop ended in a wreck. Brandon McKay, 30, of Hammond was the passenger in the red SUV that caught fire after climbing an embankment and striking an overpass bridge Tuesday evening, according to city police. He and driver Bradley Melancon, 26, of Tickfaw were trapped in the badly damaged vehicle until responders from Hammond Fire Department extricated them. An ambulance took them to North Oaks Medical Center, where Melancon was pronounced dead. Shortly after the crash, Hammond police were on foot directing traffic away from the wreck while smoke rose from the vehicle that had come to rest against a highway railing.

The accident happened after police stopped the vehicle in response to a shoplifting complaint at Walmart, a city spokeswoman said. When police approached the SUV, which matched the description provided in the complaint, McKay was compliant. However, after a fight ensued between an officer and Melancon, who was in possession of a knife, Melancon fled in the vehicle with McKay, authorities said. Police Chief James Stewart said the officers lost sight of the suspects’ vehicle but soon saw smoke coming from the area of the overpass. Police department fatality investigators processed the scene and recovered the knife and the stolen Walmart articles, authorities said. Melancon was also a suspect in a theft that occurred at Lee’s Drive In Friday. The incident remains under investigation.  [Source: The Daily Star]

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