STORES Magazine - September 2008 - (Page L4)

NEWSbeat Charges in Credit Card Numbers Theft E LEVEN people were charged with stealing more than 41 million credit and debit card numbers, cracking an 18-month-old case that federal prosecutors believe to be the largest hacking and identity theft ring ever exposed. Several well-known retail companies were caught up in this mess, including T.J. Maxx, Sports Authority, OfficeMax and BJ’s Wholesale Club. Systems at these chains and others were breached by hackers using covert means of breaking into the applications and stealing data. According to The New York Times, the principal organizer of the ring was Albert Gonzalez, who was indicted for computer fraud, wire fraud, aggravated identity theft, conspiracy and other charges; a conviction could result in a sentence of life in prison. The thieves drove around and scanned the wireless networks of retailers to find security holes. Once some weakness was detected, they installed “sniffer” programs to intercept customer data by tapping into the retailers’ networks for processing credit cards. The credit card data was then sold online or used to create new cards. Associates Can Play a Role in Reducing Shoplifting H ERE’S A SCARY NUMBER. It takes approximately 27 million shoplifters in the United States an average of 48 thefts before they’re caught stealing, according to the National Association for Shoplifting Prevention (NASP). Retailers deploy numerous solutions to combat shoplifting, but Associates Interactive CEO Bob Richardson insists the first line of defense should be active and informed store associates. He outlines four tips for reducing shoplifting: Greet every customer. Real shoppers will appreciate the personal attention; shoplifters will realize they’re likely to be recognized if they steal. Make a formal introduction with a firm handshake. Share your name and ask the customer his name. Knowing someone’s name allows an associate to personalize the shopping experience and it makes would-be thieves very uncomfortable. Work the store floor. Recognize customers who are lingering in one area. Tiffany Appeals Counterfeit Ruling T IFFANY & CO. is appealing a trademark ruling issued in U.S. District Court in a case that pitted the jewelry retailer against eBay. In July, Judge Richard Sullivan ruled that it is the trademark owner’s burden to police its mark, effectively absolving eBay from monitoring it auction site for counterfeit items. In early August, Tiffany announced its intention to challenge that ruling. saying that the judge “got several important legal issues wrong.” The case dates back four years, with Tiffany seeking a judgment that would require eBay to remove knock-offs that the jewelry retailer says threatened its reputation and reduces demand for authentic products. Tiffany and other retail companies have alleged online sales of counterfeit goods cost the industry about $30 billion a year. The ruling was in sharp contrast with that of a French court that ordered eBay to pay $63.6 million to LVMH Moet Hennessy Louis Vuitton SA over claims the site didn’t do enough to block the sale of counterfeits. Right around the time of these rulings, Make sure shelves are organized. It’s pleasing for customers and prevents mis-shelved items from becoming easier targets. Don’t Cut the Budget T a new online service – developed to protect against traffic in stolen counterfeit goods – made its debut in the United States. Called CheckMEND, the website offers a platform for identifying serialnumbered stolen and counterfeit property offered on the Internet. The CheckMEND database has more than 100 million records; a search costs 99 cents. CheckMEND claims that, within seconds, it is able to tell the potential buyer if an item has had previous owners, is reported stolen or lost or is subject to an insurance claim. HE INDUSTRY is battling its share of economic woes, but if you’re considering cutting your LP budget, you may want to think again. Retailers that cut LP budgets during an economic slowdown were more susceptible to theft, according to a survey conducted by Preference Research, an independent research firm commissioned by Checkpoint Systems. Conducted in May, the study found that current LP budgets had been delayed or cut by 38 percent of respondents – even after the budget was finalized. If history is a guide, that could be a mistake. According to the survey, 68 percent of respondents said that shrink increased when LP spending was cut. WWW.LPINFORMATION.COM L4 STORES / SEPTEMBER 2008 http://WWW.LPINFORMATION.COM

Table of Contents Feed for the Digital Edition of STORES Magazine - September 2008

STORES Magazine - September 2008 Contents Executive Editor's Page President's Page Office Depot Unveils First Green Store Dunkin’ Donuts Debuts DDSMART What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Are You a Facebook Fan? RFID Concept2Watch E-commerce Supply Chain Marketing ERP Credit Web Optimization LP Vantage Point Newsbeat Cover Story LP Program Building Biometrics Industry Perspective Customer Service Site Selection E-Commerce LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - September 2008

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