LP Worldwide: Vancouver police bust ‘predatory’ baby formula fencing ring
A suspect allegedly using a “predatory fencing method” that exploits the vulnerable population of the Downtown Eastside (DTES) has been arrested following the seizure of approximately $50,000 worth of baby formula stolen from stores in Metro Vancouver. The unit’s investigation, dubbed “Lactose Intolerant” started after a tip to police about a person who was buying large quantities of baby formula in the DTES. The fence was allegedly shipping the stolen goods to China for a large profit.
VPD Detective Cst. Doug Fell explained the fence was mobile and part of an organized retail crime group. “They use a predatory method… they take our DTES drug-addicted person, who are disadvantaged and they put them to work,” said Fell. “We estimated this person has 10 to 20 people working for him on a daily basis. He’s paying 30 percent on the retail value for every product they bring in and placing orders with them.”
The retail value of a baby formula is $33, but Fell says it is different from the normally seen fencing operations because the suspect was getting two-and-a-half times the cost in China [roughly $90 per package of baby formula]. Police suspect the fence was getting up to 100 or more formula units a day and has been in operation for about a year.
Police, in consultation with loss prevention officers, believe the suspect could be responsible for 70 percent of the thefts of baby formula in the Metro Vancouver area. Fell estimates that in the last year this suspect has been responsible for moving $200,000 in baby formula. The investigation is ongoing. While police said baby formula theft rings still exist in the Lower Mainland, they do not believe there are any other groups that are operating on the same scale. [Source: Global News]
Increased fraud turns retail holiday cheer into holiday horror
Omni-channel commerce technology and operations provider Radial recently released the results of its Annual Holiday Fraud Index, which revealed the ongoing risk retailers face of coordinated and sustained fraud losses.
“We’re heading into our second holiday season with more retailers EMV ready, which means CNP fraud becomes a lot more attractive to organized and tech-savvy criminals,” said Stefan Weitz, chief product and strategy officer at Radial. “Combine that with the increased prevalence of data breaches and retailers are faced with the daunting challenge of approving as many orders as possible while minimizing fraud. Bottom line for most retailers: if you are managing fraud yourself, you are going to get wrecked.”
In 2016, there have already been more than 2 billion records stolen, and the increasing occurrence of hacks, leaks and data breaches show no sign of slowing down. The report highlights six key findings retailers should keep in mind this holiday season and beyond:
- The largest segment of fraudulent activity is CNP fraud and fraud attacks have continued to rise in nearly every market sector. On average, the report claims a 30 percent increase in online fraud attacks. Electronics, Entertainment and Jewelry market segments experienced the biggest impact.
- While some cross-border countries present a greater fraud risk, others offer increased sales potential. The highest cross-border e-commerce attack rate belongs to Venezuela, which came in at around 17 percent, while Korea and China account for more than 78 percent of sales during the holiday season.
- Cyber Monday usually sees a significant drop in cross-border fraud attack rates.
- After Dec. 25, digital gift card fraud spikes. These attacks are 10 times more likely to take place during the holidays compared to other payment methods, but it jumps to 25 times more likely the week after Christmas.
- Certain billing and shipping domains and payment tenders see a massive jump in digital gift card attacks during the holidays.
- The risk factors for digital gift card purchases can vary based on IP locations and credit card bank identification number (BIN). Credit card BIN and IP country can have huge impacts when accessing risk.
“It’s peak season, so we know retailers are going to see significant spikes in order volumes. Right alongside that comes increases in fraud attacks,” said Weitz. “Retailers must be on alert and be able to protect their customers, but they also need to protect their bottom lines. Killing too many good orders can result in millions of lost dollars. It’s an insanely tricky thing for a retailer to balance.” [Source: PYMNTS]
LP Worldwide: Syringe used to spike chocolate drink at Hong Kong convenience store
Police are warning the public to be on the alert after a woman fell ill after consuming a packaged chocolate drink which might have been spiked using a syringe. A man was struck by dizziness, abdominal pain and vomiting upon drinking the 250ml packet of Vitasoy chocolate milk soon after buying it from a nearby 7-Eleven store in Hong Kong. He was taken to the hospital for treatment and later discharged.
During an investigation, officers found a suspected syringe hole covered by the fold at the top of the drink carton. They found no further signs of tampering after checking other packaged drinks in the store. Chief inspector Yin Hiu-yu from Sau Mau Ping district said it was not known whether there were any poisonous substances in the man’s drink, which was being examined by the government laboratory.
A police source said it was believed the suspected contaminated beverage was placed in a fridge in the convenience store shortly before the victim bought it. A spokesman for 7-Eleven said it believed the incident was isolated and it would assist in the police investigation by providing security camera footage.
It was understood that the chain had not received any blackmailing or threatening messages. It also had no plans to shelve its packaged drink products, as the case was not regarded as a food safety issue. The Sau Mau Ping district crime squad was investigating. [Source: South China Morning Post]
Wigs for cancer patients stolen in store break-in
A Vernon, British Columbia, business owner is still reeling after a large group of thieves made off with more than $20,000 worth of items, including wigs for cancer patients, in a break-in. Beauty Haven owner Carol Roney says as many as seven people broke into her salon and used the store’s laundry hampers, recycling bins and garbage cans to load up on products.
“They would leave and then come back to pack away more,” Roney said of the break-in, which was caught on video surveillance. After prying the door open, Roney said the suspects spent almost three hours in the store. At first, only a couple of men gained entry, but more, including a few women, showed up later. In total, Roney counted seven different individuals who took part in the theft.
Among the items taken were individual stylists’ scissors and other personal tools of the trade, as well as more than 20 wigs. “We treat a lot of cancer patients and style the wigs for them,” Roney said. “There were wigs stolen that people were coming to pick up, that were ordered specially for them. They’d been waiting for them to come in.”
She reported the break-in to police and provided video footage, but has not been informed of any arrests in the case. She says the store is taking extra precautions to prevent another break-in. [Source: Info News]
Retail owner locks in would-be shoplifter, cohorts free accomplice by ramming storefront with car
A clothing outlet owner got more than he bargained for when he locked a would-be shoplifter inside the store, with two cohorts bursting through the storefront in a compact car to free the foiled thief. Tulsa police were summoned to a clothing retail store on a disturbance, which quickly turned into reports of a car crash.
Officer Brandon Smith said two men and a woman appeared to be browsing inside Super Tops & Bottoms when the owner caught them attempting to shoplift. Two of them escaped, and the owner locked the third inside. The two who fled outside returned for their accomplice by ramming a Dodge Dart into the storefront three times, Smith said. The trio then fled in the car.“They were desperate enough to do that to get their buddy out of trouble,” Smith said.
“There could have been underlying issues, they knew maybe they had warrants or some other stuff that they didn’t want to be found out,” Smith said. “Normally a simple larceny, if it’s a first offense, it’s just a ticket. So maybe for them they knew that they were facing some more serious charges.”
The would-be thieves and owner were the only people inside the shop, Smith said. No injuries were reported, and the merchandise was recovered. The storefront sustained significant damage with shattered windows and busted-in double doors. But authorities report the building’s structural integrity was fine. [Source: Tulsa World]
LP Worldwide: Major credit card fraud busted
Police arrested five persons who they said were involved in a “major” credit card fraud. According to police, 67 credit cards, seven mobile phones, tablets, laptops, swipe machines, two cars and one motorcycle was seized from them. Police said the gang was arrested after they set up roadblocks to check cars on a tip off that that they were arriving to Kasargod from Kannur (India).
District police chief Thomson Jose said the accused could be part of a larger network of online fraudsters, with each having a role to play. Some of the accused buy credit card information — called dumps — from black markets available online using bitcoins, he said. Bitcoin is a form of digital currency, created and held electronically.
“Once the dumps are bought, they encode the data onto a blank credit card using a loading machine,” Jose said. Loading machines are easily available on e-retail stores, he said. The fake cards are now ready for swiping at brick and mortar shops, and they usually prefer jewelry shops, said Rahman. He said the accused also get dumps from a point person in Uttar Pradesh. On questioning, the accused reportedly told police there were 200 sub-agents under the point person.The prices of dump vary depending on the particulars such as type of card and expiry date. ‘Fullz’, which includes the victim’s name, address, credit card information, social security number, date of birth, will cost a bomb. “They use cards which do not require PIN,” said the district police chief.
Police said credit card data are obtained through physical skimming, infecting device with malware, or hacking into a retailer’s internal network. “Those who steal data rarely make the purchases. The bigger the network of their buyers, more money they make.” Most of the victims are from the Middle East, and “other foreign countries”. They have not yet used Indian cards. [Source: The New Indian Times]
Woman who set fire to Dollar Tree Store was ‘upset’ there were no shopping carts
A 64-year-old woman has been charged with first-degree arson in connection with a fire that destroyed several businesses in a Kent (Washington)strip mall. The King County Prosecutor’s Office charged Linda Katherine Poplawski with first-degree arson. Bail was set at $225,000. Several businesses in the strip mall were destroyed in the fire. The roof of the building collapsed after the fire erupted.
According to court documents, the woman “became upset about there being no shopping carts at the Dollar Tree store.” She left the store, returned shortly afterward and told employees she was going to burn the store down. The woman then went into an aisle where cards and party supplies were and then left the store, telling employees the store was on fire. Employees found a fire and attempted to extinguish it, but they were unsuccessful. [Source: Crime Watch Daily]
The post Breaking News in the Industry: November 21, 2016 appeared first on LPM.
