Breaking News in the Industry: May 16, 2017

credit card skimmer

Leader of gas pump scheme gets 12 years in prison, likely deportation

The leader of nationwide credit card skimming crew caught in West Michigan was sentenced Monday, May 15, to 12 years in federal prison. Antonio DeJesus Perez-Martinez, 44, of Austin, Texas, was convicted by a federal jury of conspiracy to commit wire fraud, credit card fraud and aggravated identify theft. A Cuban citizen, he holds a “green card” as a lawful permanent resident of the US but is likely to be deported. He said he would not return to the US after his prison term expires.

Assistant U.S. Attorney Hagen Frank, who has prosecuted numerous cases of credit card skimming and identify theft, said the crime can victimize virtually anyone filling up the tank. “This is a scheme leader,” he told US District Judge Robert Jonker. “It’s not often we get a scheme leader sitting where he is now.” Frank said Perez-Martinez, based in Austin, Texas, victimized not only those who had account numbers stolen but those he recruited: Young Cubans, just entering the US. Recruits entered the US in 2014 under a special “parole” program after relations warmed with Cuba. They would travel the country, putting credit card skimmers inside gas pumps to steal credit card information of gas customers. The account numbers would be re-encoded onto other cards, which would then be used to buy gift cards at stores.

Perez-Martinez, who was on probation for similar activity in Texas, told the recruits they would “get a slap on the wrist” if caught. He helped some with housing or finances. Now, “they’re never going to be citizens, never going to be green card holders,” Frank said. He said one of the recruits dreamed of coming to the US to join the Marines. That won’t happen now. Frank wanted others to know that if they take part in such schemes, they will be investigated by the FBI and prosecuted in federal court.  [For more: mLIVE]

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Man caught shoplifting at Delaware Dollar Store stabs manager with box cutter

According to Delaware State Police officials, a male employee of the Dollar General became involved in a confrontation with a man and woman after they were observed shoplifting. The store manager was summoned to the front of the store and, as the confrontation escalated, the manager stepped between the store employee and the female suspect to separate them, at which point, the male suspect produced a box cutter and stabbed the store manager in the arm. The suspects then fled, heading eastbound on Maryland Avenue in a dark blue Nissan Sentra with tinted windows. Police described them as a black female, 25 to 30 years of age, 5’4″ to 5’6″, weighing 140 lbs., with black hair, and a black male, 40 to 45 years of age, 5’8″ to 5’10” and 150 to 160 lbs.

The victim was transported by EMS to Christina Hospital, where he was treated for non-life-threatening injuries.  Anyone with information regarding this incident or the identity of the suspects is urged to contact Delaware State Police Detective Amy Lloyd at 302.365.8411 or Delaware Crime Stoppers at 1.800.TIP.3333. [For more: WDEL News]

Springfield police officer chases, arrests two theft suspects from same store

A former Oregon Beavers linebacker, now a Springfield, Oregon, police officer, proved he can still chase people down Saturday when he responded to a report of a theft at a Safeway. According to the Springfield Police Department, Officer Keith Pankey, who used to play for the Beavers football team, responded to the reported theft at the Safeway at 1891 Pioneer Parkway at 5:10 p.m. Officers learned the suspect, John Michael Shafer, 40, had fled the store after loss prevention associates confronted him. Police said Pankey arrived and located Shafer nearby. They say Shafer attempted to flee on foot, but he couldn’t outrun Pankey who caught him and took him into custody.

Pankey returned to the Safeway store with Shafer at 5:30 p.m., police said. When he exited his patrol car, a Safeway employee told him loss prevention was chasing another theft suspect. Police said Pankey then pursued the second theft suspect, Michael Lee Fletcher, 29. Pankey caught Fletcher on Q Street west of 2nd Street and took him into custody, police said. According to Springfield police, Shafer and Fletcher were both charged with theft III and shared a ride to the Springfield Municipal Jail where they were both lodged. Police say both Shafer and Fletcher are registered sex offenders who were currently out of compliance when they were taken into custody. Police say the thefts were unrelated. Springfield police said Pankey played his last game at Oregon State University in 2012.  [For more: KVAL13 News]

Brooklyn women suspected of credit card fraud

Two women suspected of illegally using credit cards at Dick’s Sporting Goods stores throughout New Jersey, New York and Connecticut were accused of credit card fraud and theft in town.  Upon arriving at the Dick’s Sporting Goods in Manahawkin, New Jersey, Saturday at about 10:20 p.m., police identified the suspects as 27-year-old Demytra Gibbs and 24-year-old Khadijah Greene, both of Brooklyn, New York, Lt. James Vaughn of the Stafford police said in a statement. Gibbs and Greene were each charged with multiple fraud and theft by deception charges.

Officers discovered Gibbs and Greene possessed numerous fraudulent Dick’s Sporting Goods gift cards and merchandise, Vaughn said. Police added the description of the women and their car matched the descriptions employees at other locations gave store management in Manahawkin. Gibbs and Greene were lodged in the Ocean County jail, Vaughn said. Additional charges are pending, and the case remains active. People with information about Gibbs and Greene are asked to call Detective Levi McVey at 609-597-8581, ext. 8441. [For more: Asbury Park Press]

Distribution center theft and collusion on the rise

Theft inside distribution centers is a widespread problem, mostly due to the difficulty of prevention. In addition, the magnitude of the scale of goods moving through the centers invites thievery: when endless, countless items encircle every worker, the temptation to remove it from inventory for personal profit is high.

Two methods seem to best discourage employee theft, as highlighted by Inbound Logistics: an embedded security professional, and an anonymous contact option. The security professional masquerades as an employee, while in reality is observing his fellow workers. This is a slow method of discovery and depends on the persistence of the professional involved, and the likelihood of mistaken overconfidence on the part of the thief.

The anonymous tip option is another alternative. In this scenario, employees who know about theft are provided an opportunity to report what they know, suspect, or observe without leaving a name. Tip lines are maintained by outside sources so as to preserve the anonymity of those reporting. However, dissatisfied workers who provide misleading or false information can abuse tip lines. Employers who act on such information should be certain to understand their legal rights, and those of their employees, before making accusations.  [For more: Supply Chain Drive]

Employees clueless about data breach procedure, Deloitte reports

The employees of 43 percent of top 100 brands have no idea whether or not their company has a data breach procedure, according to a Deloitte survey. The vast majority of those unaware about their business’ breach action plan worked in the education sector, closely followed by healthcare and retail.

The Deloitte Privacy Index 2017 – released today as part of National Privacy Awareness Week– surveyed more than 1000 employees across 100 leading organizations both listed on the ASX and not, gauging opinions on privacy, complaints and information handling.
The figures support a recent study of the ASX 100 companies’ cyber stance. In a survey released in April, 59 percent of organization said they had a documented and approved response, recovery and resumption plan to a cyber attack and had tested it. A quarter of respondents had not yet determined how they would communicate a confidential data breach to customers.

Organizations that ranked the best on the Deloitte survey in terms of risk awareness and privacy protection had a privacy officer, regular training programs, and ensured their third parties notified them in the event of a breach. The most trusted industries in the index were financial services, government, telecommunications, energy, utilities, and industrial companies. “We believe one of the reasons the financial sector ranked at the top of the index again this year, followed by Government and, for the first time in the top three, telecommunications and media, is because all three sectors are highly regulated,” said Viljoen.

“Financial services conduct frequent privacy training. Their employees can correctly identify a privacy impact assessment, and they know the process to follow in the event of a data breach.”The employees of 43 percent of top 100 brands have no idea whether or not their company has a data breach procedure, according to a Deloitte survey. The vast majority of those unaware about their business’ breach action plan worked in the education sector, closely followed by healthcare and retail.  [For more: CIO]


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