LPRC - CrimeScience – The Weekly Review – Episode 152 with Dr. Read Hayes, Tom Meehan & Tony D’Onofrio

Episode Date: June 22, 2023

This week, our hosts discuss growing issues in retail from lowered sales due to inflation, inventory distortion, shrink and violence on the rise, and the Amazon effect. Also this week, a new two-facto...r scam to be aware of as well as more current events! Listen in to stay updated on hot topics in the industry and more! The post CrimeScience – The Weekly Review – Episode 152 with Dr. Read Hayes, Tom Meehan & Tony D’Onofrio appeared first on Loss Prevention Research Council.

Transcript
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Starting point is 00:00:00 Hi, everyone, and welcome to Crime Science. In this podcast, we explore the science of crime and the practical application of this science for loss prevention and asset protection practitioners as well as other professionals. Welcome, everybody, to another episode of Crime Science, the podcast. This is the latest in our weekly update series, and I'm joined by Tony D'Onofrio and Tom Meehan and our producers, Diego Rodriguez and Wilson Gaborino from the LPRC team. And today we're going to go around the world and talk a little bit about, of course, what's going on in the crime and crime prevention space, which is all too prevalent and seems to take main stage now in so many of the media sources. take main stage now in so many of the media sources. It seems like almost daily multiple articles and episodes of news shows come out around particularly retail crime, but how it's
Starting point is 00:00:55 reflecting the breakdown across the United States and probably other countries, but certainly the United States and clustered in many, many cities, it looks like around the U.S. and on the coast and sometimes in the interior spaces where there's a breakdown that there just aren't the consequences for offenders, but there's bountiful opportunity for those offenders to victimize or harm people and their places. And I think that's what's always so important for us to keep front and center is that a criminal offender is a criminal offender because they have victimized another person or another person's place and or. And I think that every place belongs to another person or persons. It's there to serve people.
Starting point is 00:01:46 It's there to be part of that vibrant block, that neighborhood, that these are places that are owned and operated and visited by and really serve people in their respective areas. And so when one or more people decide to take something from those people, from those places, to disrupt those places, to threaten people and do worse, that's where we've got a problem. places to threaten people and do worse, you know, that's where we've got a problem. And traditionally, whether it's in a household or a community or a nation, across place and time, I think through human history, we typically have been held accountable for harming another person and or their place and their assets. And in many places, that just doesn't seem to be happening in the way that has been built up and developed and tested over generations. And, you know, many scholars and leaders and philosophers have said over time, there is no perfect way to do
Starting point is 00:03:00 just about anything as humans, but we try and we try and get better. And sometimes we make mistakes. The systems that we've set up, the judiciary process, you know, the law enforcement process, the prosecutorial process, all these things can function and function well, but they also can have mistakes because of individual errors, because we learn and adapt and adjust and things like that. So whether it's learning to walk as a child or operating a criminal justice system, we're going to make errors, we're going to learn, we're going to adjust, we're going to adapt. And we hold people accountable within the system that are out there trying to execute
Starting point is 00:03:42 and make errors in judgment, or sometimes, sometimes, rarely, but sometimes purposely do things wrong. And again, they're held accountable. And the same thing, though, in our population. If we go to somebody's house or their vehicle into their workplace and we take something from them, threaten them, intimidate them, physically harm them? Or again, worse, that's where accountability comes in. So we can step back and go back down to the more granular level. What we've tried to do here at the LPRC is initially play a lot of small ball while doing a couple of overarching studies. Again, you all know in 1988-89, we started working on, myself and Dr. Weitz and Bill Zalat of Security Magazine offered to publish the first
Starting point is 00:04:35 National Retail Security Survey. Sensormatic ended up providing the funding resource mechanism to make the study happen. And we came out in 90 and 91, 92, 93, 94 with the first studies. Dr. Richard Hollinger came on as we had collected our first data, we're analyzing it, written the first wave report, first draft, and helped us polish that up. So we wanted to get an idea about the scope and scale of the problem of retail crime in the United States, how that's reflected, particularly in inventory shortage or shrinkage, and also get the pulse on what are retailers doing about it? What are they things causing the problem? Some of it is their own employees, the internal threat, the insider threat. Part of it is external threat, if you will, people that are just shoplifting, stealing.
Starting point is 00:05:29 So I want to talk a little bit about some of the happenings at the LPRC real quickly here. research team and the operations team working always hand in hand are moving out on the 2023 version of LPRC Impact. Our annual conference, our gathering to review the research we've done, to meet up with our colleagues that we've worked on throughout the year in the six working groups and the Innovate program. And so gather our thoughts, talk about and go through sessions. What have we learned about reducing theft and reducing fraud and, of course, violent, aggressive acts in our seven groups that we meet in, which includes Innovate. And so we're excited about it. We also have a lot of opportunities for networking, engaging with colleagues and friends and others. And we do that, of course, with lab tours.
Starting point is 00:06:30 We have a nice reception at the UF's Innovate Hub building where our seven indoor and outdoor labs are located. And so it's a really neat time. You see probably 300 to 400 industry professionals there, law enforcement, executives and officers, of course, retail, the same thing, executives, and, of course, our solution partners and manufacturers like Procter & Gamble are there. Getting together, we'll have local officials, University of Florida faculty and students are there. And it's a really neat reception always that Monday evening of impact. We also have our gathering on that Tuesday evening of impact. And for the last several years, we've had it at UF's football stadium, fondly known around Gainesville and beyond as the Swamp. It's up there in the champions level and it's really a neat experience you've got albert the alligator and cheerleaders and there's all kind of uh putt putt golf and board games here's normally either a really good dj or live band that open bar and fantastic local
Starting point is 00:07:38 food and uh you can be indoors or outdoors you know you can be out sitting out like you're watching a game uh in there and visiting as well as inside. And people that have been coming for years get together inside and out, catch up, meet new people. It's really a neat time in addition to all the breaks and things. So there's a lot of opportunities to gather and get to know each other. We have talk sessions and, of course, get down to business and go through what a specific issue is, what research was conducted, what did we find, and what are the implications talking about? How does that apply in a C-store or a department store environment or a big box,
Starting point is 00:08:19 a small box in the parking areas, in a corporate office or distribution center, for example. What are these implications? And then each one, too, where are we going next? Okay, we learned this. We didn't learn that. Or because we learned this and we're doing this, we also would like to know that. So every session is designed to move to the next level and then continue that throughout time. Because, again, LPRC was designed by retailers and guided by retailers, and it's different.
Starting point is 00:08:49 It's not a one-off event where you come in, you talk, you share, you learn, you engage, you greet, you relax and enjoy each other. Those are neat. But in a lot of cases, you move on. You get rid of your name tag. You keep moving. LPRC includes those opportunities and all that. That's so vital and important as people and particularly people dealing with very, very complex, difficult and even tragic issues. But in this case, with our six working groups plus the Innovate Advisory Panel meeting year-round, getting to know each other, working on very specific issues within theft, fraud, violence, within supply chain protection, organized retail crime, intel and investigations and prevention with data analytics and mapping and things like that. You get to know each other.
Starting point is 00:09:47 You're solving problems year-round. You're putting out research and action briefs and reports. But you're continuing. There is a continuing problem-solving going on. And so that's really what Impact is about, is to review the year, supercharge everybody for the upcoming challenges in the next year, and maintain that continuity, that momentum, that problem solving that needs to happen individually, but most critically here at the LPRC collectively or collaboratively.
Starting point is 00:10:15 So it's unique and it's different. It's going into our 20th one coming up here soon. And so we invite any and every practitioner, whether you're law enforcement or loss prevention, asset protection, if you're a designer of technology, you know, somebody that's helping us solve the problems with your solutions, your people, your programs, your systems, we want you to come in and engage with us and talk about things with us. So we've also had a series of VIP visitors. It continues, you know, right now, actually this week as we speak, we've got Ahold Dale Hayes, one of the largest supermarket chains in the world with, you know, brands that include Food Lion and Stop and Shop and Giant Foods, just to name a few. They operate in Belgium and the Netherlands and so on
Starting point is 00:11:06 in Europe, but of course, across the United States. These are the leaders overall. We've got Jim in here overall, Ahold and Del Hayes and some of his team at that level, that services level that serve the different brands or chains. And then we've got those brands or chains leaders and some of their team in here. Also, merchants or buyers in here with us to brainstorm, in this case, that product protection side, even though violence is also being discussed and fraud and so forth. They're spending a day and a half in the labs with our team, with just themselves, and we're excited about it. You see the same thing going on. We've got Harbor Freight and Lowe's Home Improvement and Nordstrom coming up. We've had, of course, some leading brands
Starting point is 00:11:50 like CVS and Public Supermarkets and Walmart. TJX is different. Also, they're different. Marshalls, Max, HomeGoods, and so forth in here, and a whole lot more that have come and more that are on the way. So we want to invite you also to come in individually as a team and come this way and, uh, brainstorm with us and yourselves and, uh, get into this unique academic research slash practical environment. Um, and we'll talk next week more about the safer places lab, uh, the, uh, the labs we've got here where we're based, the four square blocks that we've talked about quite a bit, and then the Eastside Initiative a little bit more.
Starting point is 00:12:30 Co-located non-center stores. We'll talk about the Westside Initiative. That's the co-located open environment lifestyle center. And then we're going to talk about what's going to happen in the enclosed environment. We'll unveil that pretty soon. Now that's being worked on. And then finally, working in a very urban environment where high-loss stores are clustered within a brand, but between retail corporations as well.
Starting point is 00:12:55 How can they cooperate like we're learning on the east side, but in a very, very urban, tough environment? So stay tuned on all that. We're excited. So with no further ado, let me turn this over to on all that. We're excited. So with no further ado, let me turn this over to Tony D'Onofrio. We'll go to Tom after that, and we'll sum it up. Thank you very much, Reid, for all those great updates. This week, I actually had the pleasure to be at the PGA National near West Palm Beach
Starting point is 00:13:21 headquarters at the resort, delivering a keynote on the artificial intelligence future of retail. And I call it the artificial intelligence disruptive future retail to a group of about 200 plus people in the technology space. And so what I would like to do this week and this podcast is summarize some of the highlights from that presentation. If you would like a copy of that presentation, please send me a note through either the LPRC or going to my website, TonyDonolfi.com. So the headline is starting at a macro level. The world is slowing down in terms of the economy. So worldwide, the growth for 23 is only expected to be 2.8% if you listen to the
Starting point is 00:14:06 International Monetary Fund and only 2.5% from Euromonitor. But more importantly, for the listening audience, in advanced economies such as the United States, Western Europe, Australia, and so on, the growth for 23 is only 1.3%. And the Euromonitor is even more pessimistic. It's only 0.8% for 2023. Next year, not much better. Both the Euromonitor and the International Monetary Fund only forecast 1.4% growth for the advanced economies. Inflation is a big issue. The good news is that inflation is down worldwide.
Starting point is 00:14:47 It was 9% in 2022. It's now projected to be 6.9% worldwide by the end of the year and dropped down to 4.3%. For advanced economies, it's projected at 4.6% for 2023 and 2.4 for 2024. Again, 2024 is getting closer to that 2% target that most federal agencies are looking for. But it's all over the map in terms of who has the highest inflation. The U.S. just came in at 4%, but U.K., for example, came in at nearly 9%. But there's places like Switzerland that have excellent low inflation and only 2.2%. I also talk about some of the headwinds that are
Starting point is 00:15:36 going on for retail. I show the chart that retail still has a lot of stores. In fact, it has the highest retail per square footage per person at over 20 through 23 feet. And it's really like 10 times what it is in Germany and in a lot of other countries. So in a lot of places, there's a lot of work to do. I talked about retail sales and how we recover from the pandemic. As of April 2023, only the convenience store sector and especially hard goods were negative. Everyone else was positive in terms of sales growth, and that includes food, drug, mass merch, department stores, especially soft goods, restaurants, and online. But if you factor in inflation, everybody was down except for drug stores and also online. So those are the only two sectors that when you factor inflation are actually growing through May of 2023. I also talked about the most
Starting point is 00:16:34 unfortunate basically generation that's being hit the hardest by all this and it's the millennials. They've had the least in terms of wealth generation in their last 15 years versus every other generation. So they are the unlucky generation, and they're suffering the most through all this. Some of the other topics that I covered is the inventory distortion worldwide, which right now stands at over $1.9 trillion, and inventory distortion is out of stocks and overstocks. That is a big problem because that's one of the reasons why consumers leave the store, 59% leave the store when they find empty shelf, and this is a worldwide number, and it's a worldwide problem. For this audience also, a chunk of this audience, they talk about retail shrink
Starting point is 00:17:25 and all the headlines that have been taking place this year. And there's a chart that talks about all the major retailers that have announced shrink. And I mentioned that Bloomberg just stated that 200 retailers actually had shrink in their earnings announcement in the last quarter. And in the Hayes International report that was just recently released of 26 large retailers, 81% of those retailers reported higher shrink in 22, total apprehension increased nearly 46%, and total recovery dollar from those apprehension increased 70.5%. So an amazing set of numbers. I talked about shrink and I also talked about violence in terms of the escalating violence. 694 people were killed in retail in 2022,
Starting point is 00:18:14 up 17% on the previous year and up 86% on 2016. So that's a big issue. Finally, in terms of retail challenges, I've talked about the Amazon effect, which really manifested itself during the pandemic. Amazon is a major powerhouse in retail, has grown substantially over the years, but actually recently has slowed down. The challenges for retail, most consumers have the highest trust in Amazon to actually have the product in stock. And especially those with Amazon Prime, if they find something out of stock when they walk into a store, they will immediately purchase from the phone to from a competitor or directly from Amazon. So they are basically aggressive in terms of leveraging those digital skills.
Starting point is 00:19:03 They are basically aggressive in terms of leveraging those digital skills. I also talked about how Amazon really has dramatically changed as a company in terms of where their revenue comes from. Their Amazon program now has an Amazon Prime program has over 200 million people. Half of Amazon revenue actually comes outside of the retail sales online and physical stores. So it comes from places like their AWS, the web services. They do $38 billion in advertising. And they've sold over 500 million Alexas. So they have a lot of levers that they can pull. And I also pointed out that Amazon spends over $15 billion on retail,
Starting point is 00:19:47 on retail innovation, so on new technologies. And these are examples like Amazon Go and smart cards and so on. But I also pointed out that actually some of those investments are actually being slowed down because Amazon has discovered they're not actually scalable. I then went into a discussion in terms of why I think retail is extremely resilient. And I talked about store openings and closings and how many are out there. And really, 22 for a lot of chains, especially for Dollar General, Family Dollar, Dollar 3, Five Below, TJS companies, Ace Hardware. They opened a lot of stores. So the whole thing about the retail apocalypse is not really a valid statement. And then I finally, in terms of why retail is resilient, I talked about
Starting point is 00:20:32 the global retail sales and where they're at. For 2023, we're going to cross $30 trillion of retail sales. We'll continue to grow. The good news, not everything is going online. Even by 2026, only 24% of total retail sales will be online. The rest is actually going to be in physical stores. And I showed a chart that actually shows that since the pandemic, the growth of online sales has dramatically lowered. I then went into a discussion of detailed technologies in terms of what they are, in terms of which ones are the most important. I've talked about the accelerated pace, what were the technology priorities for retail in 2023, which are, by the way, the top three, personalized customer experience, inventory visibility, and empowering store associates. I talked about emerging technologies that are
Starting point is 00:21:25 most important. They are larger, wider networks to get all that data out of the stores, RFID, and voice and walkie-talkies because the parking lot is now becoming one of those places where there's a lot of commerce. I covered the top five technologies that are most important in retail. And then I went into a deep dive on artificial intelligence, why it's becoming critical to retail, why it's actually a $9.2 trillion retail is going to have an economic impact through 2029 of $9.2 trillion. So I talked about that and the areas where it's going to impact. And I provided a word of caution that Americans are not really fully in in terms of artificial intelligence that are questioning and really don't understand it yet.
Starting point is 00:22:16 Just 15% of Americans are more excited than concerned about increase to the use of AI in daily life. And finally, I concluded about some of the critical technologies that are going to be important in retail going into the future. And these includes a lot more frictionless commerce, a lot more connectivity of products through an analysis of at item level. And this would include products like RFID, GPS, and also computer vision. products like RFID, GPS, and also computer vision. And then I also talked that even for loss prevention, RFID and computer vision popped up as the top two items in terms of technology investment
Starting point is 00:22:53 in the last NRF security survey. And I concluded with the store of the future, which to me, the store of the future looks bright. It's going to have a lot more data being generated going through really these smart filters and these smart filters creating these immersive experiences that really gen up consumers to be very happy with the brand and i said the most important person for retail going forward is actually the store associate that store associate has to be an equal brand ambassador as the consumer and be equipped with tools because right now with smartphone, the consumer in a lot of stores is smarter than the actual store associate. And so they need better tools to actually respond to that digitized consumer. So it was a well, extremely received presentation.
Starting point is 00:23:43 I've asked a lot of requests for copies. Again, if you would like a copy to go into a lot more detail of it, please contact me either through the Loss Prevention Research Council, or you can look me up on TonyDenorphy.com and send me an email. And with that, let me turn it over to Tom. Well, thank you, Tony, and thank you, Reid. A lot of things going on. As always, we've had what I'd say is a pretty action-packed last few months around the geopolitical space, the cybersecurity space, the retail space, finishing up Interact Protect. Lots and lots of back and forth on ORC and the news. So I wanted to talk about a couple of things just this week.
Starting point is 00:24:34 There was actually, I think it was today, the 20th. It could have been yesterday, but I think it's today. New York City Council was looking at potentially passing an ordinance to stop the use of facial recognition in retail in New York City. So this is kind of following the trend in certain cities of what I would say is almost anti-retail type ordinances or laws. This one is in particular specific to New York City, and it does specifically talk about retail and the privacy concerns. So we've often talked about here on the podcast as well at the LPRC is I think everybody understands there's certainly a need for facial recognition regulation, but this is one of those things where facial recognition
Starting point is 00:25:36 is working at helping identify bad actors. And New York City Council is basically targeting that and I have not seen an update yet, but this was supposed to go through today and basically, the city is proposing a ban on the technology to use to deter theft and it is in front. So we'll keep an eye on that. And this also kind of goes to a recent bill in California around the stopping of an apprehension of shoplifters and some of the things that are required. So we're in this very interesting piece, time where we have a lot of different things occurring. Some of them are politically motivated. Some of them are privacy motivated.
Starting point is 00:26:29 But I think we are continuously looking at this evolution. So in the New York City ban specifically, there's a lot of chatter from groceries, grocery stores and grocery stores, both large and small publicly saying this is another example of how the city is not supporting them. So I think there was a recent story not too long ago which follows the city's feud with Madison Square Garden. long ago, which follows the city's feud with Madison Square Garden. Madison Square Garden had a lawyer who was refused entry because of pending litigation with their law firm. That policy in place, there was no problem with that policy. The way they identified this individual was through facial recognition. That's what drove the conversation. And that was what I would say not the start, but part of the start of where this would
Starting point is 00:27:34 start this bill. It actually calls for a fine of up to $5,000 per violation plus any legal fees. And there are a bunch of folks that are for this, but there are also people that are against it. As a matter of fact, Councilman Robert Holden from Queens actually was against it and said that he hopes the bill doesn't pass. He thinks it penalizes small businesses who attended the hearing on the technology committee. So I think this is a divided issue here. And again, I think in some cases, retailers are feeling like the city is not supporting them. So we'll certainly watch the space and follow up with it. I have no predictions on how it will occur, but it is happening in real time.
Starting point is 00:28:35 New scam, not really a new scam, but a scam that surfaced more. As we all are continuing to see cybersecurity, we're becoming more aware, and some institutions, financial institutions specifically, are requiring two-factor authentication. So it's probably not unlikely that if you use a bank or a banking online or other services today that when you get login on a new device, it sends you a text message for two-factor authentication. You may actually be at a higher degree of two-factor using an app-based authentication. But there is what I would say is not so clever, but looks pretty clever when you look at it here, a scam where people are going in and trying to hack into your account. This is being perpetrated a lot on social media,
Starting point is 00:29:26 but what they're doing is they're actually on social media, having a conversation with someone about a product or a, you know, potentially you won something in a chat window and they're saying, okay, I'm going to send you a verification code. You know, don't share this code with anybody else, but send me that code. And what they're actually doing is logging into your account while they're talking to you. So they're talking to you. They've spent a little bit of time social engineering and having a conversation,
Starting point is 00:29:53 built rapport with you in a conversation, and then using safety-type technology where it's going, okay, I'm going to send you this. Go ahead and just click on this and go to the website. Okay, it's going to ask you to enter this code or give me that code. And then they actually log in. And while they try to log in with your usually credentials that they bought somewhere else, then they get that two-factor number and you give it to them.
Starting point is 00:30:21 So when it says never give this code to anybody, never give it to them. So, you know, when it says never give this code to anybody, never give it to anybody. And recently, I was actually in a legitimate technical support call with an extremely large phone carrier. And they said, I'm going to text you a verification code. I know I was talking to them. And they said, I need you to give me that code. And I said, no, I'm not going to give you that code because then you'd have access to my full account. And the person said, well, I can't help you unless you give me that code. And then they put a supervisor on and the supervisor said, oh, you know what? We sent you the wrong code. You're a hundred percent right. We should have never asked you for that so it wasn't malicious but it's important to note that if if you receive any type of two-factor authentication code that you should
Starting point is 00:31:12 not share it with anyone because it gives them access to your account and in times you could not at certain times you may not be able to get that said access back so So I think I can't stress enough the importance of even if it's a trusted actor or what's thought to be a trusted actor, you don't really want to give that code to anybody. Certainly don't want to give it to someone sight unseen over a phone or via a text messaging app. Switching gears a little bit, ChatGPT has hit the news and there was several, I think it was roughly a few thousand credentials found on the dark web to log into people's ChatGPT accounts. There's no reason to believe that there was a data breach or anything along those lines. The data is still becoming available.
Starting point is 00:32:06 This could be just a victim of people reusing passwords. We don't really have all of the information, but there's about 100,000 account credentials being sold on the dark web marketplaces right now. This isn't uncommon. I mean, this is a pretty common thing that occurs with any online service. I think because ChatGBT is in the news right now, you're hearing much more about it. I think one of the things we often talk about in the cybersecurity space is do not use the same passwords, right? Like that happens. Cybersecurity firm Group IB announced that it came across a massive collection
Starting point is 00:32:52 of malware that they believe was caused by malware-infected devices that scraped these passwords. So just something to be very, very cognizant of that when passwords are sold in the dark and when you're sold in the dark web, you may be asking yourself a question, what value does a chat GPT credential have? Well, that all depends. One, if you reuse your passwords and you use your same email address that allows a backer to take that and do a bot attack to look at other accounts where there might be sensitive
Starting point is 00:33:28 or private information or even potentially financially driven things. The other thing is some people are using ChatQBT for things that, although it might not be recommended, like business or personal things, and you are actually able to, when you get into someone's account get their history if if they if they saved it so a couple different things that are there one of the things i would say about um um chat gpt is i you know i think you need to be very aware of what you put in it that the some of the privacy concerns there and And like all services, all services, use good password hygiene. Do not just use duplicate passwords.
Starting point is 00:34:12 Make sure that you're using good password hygiene and you're using different passwords for everything. And I think that those are the things that we should all be aware of. The other thing is if you're using ChatBitGBT, whether it's paid or free, understand that you're giving up your data. So if you're putting confidential information in there, that you need to be aware of the fact that this could occur. Someone could get that information. You don't know what's being used with it. So something extremely, extremely important to be aware of when you're using it.
Starting point is 00:34:54 It's in the news. There are, and we've talked about this here before, several companies that are outlawing or banning chat GPT in the business sector. They're saying, hey, this is off limits. Do not use it. But I think there are things that chat GPT is very useful for, and I think that you want to make sure that what you're aware of and what you're aware of is what the rules are of your company, what information you share, what your privacy risks are.
Starting point is 00:35:32 And the reality is that this doesn't mean that chat DDT is bad. This is just a circumstance of what occurs. This is just a circumstance of what occurs. And I think that's something that you should just be aware of. In the news, and this is where I'll end up, that you have a lot of different news around data sharing and social media and TikTok being bad. I think Facebook is back in the news where there was information being sold and shared around different data brokers. But one of the big things that's come up is the U.S. government,
Starting point is 00:36:21 some classified documents were unclassified and released that the U.S. government was buying commercially available information. So it's actually called CIA. And for the listeners that are in investigators, you may know where some of you may actually use some of the CIA in your investigations. Companies like Axiom, LexisNexis, Reuters, Clear, all sell public data or commercially available information. And Facebook and some of the other organizations, they're also solid. They are data companies, right? These documents that were released showed that the U.S. government was buying private citizens' data and pooling that information.
Starting point is 00:37:17 This is a fairly new report. This is not a new process, but it is something that has garnered a lot of attention. And the government buying this private data, when I say private data, private citizens' data is unusual, but the U.S. government was buying your data and then basically categorizing it and using it for other things from several third-party brokers. This is all over both in the national news and international news. The U.S. intelligence community has often collected data, as we know, but this is a little bit different.
Starting point is 00:37:59 If you're not familiar with CAI, so commercially available information, and sometimes it's referred to as CIA, but basically it's commercially available information or commercial information available. It's really the common term is commercially available information. This is not necessarily always public data. This is information that's bought. data. This is information that's bought. Generally, in the circumstances that we're referring to here, this is information that you as an end user gave permission for people to sell in the terms of services. We talk about this all the time. When you sign up for something that is free, and there are terms like we share data with trusted sources, or we use your data for marketing, that usually means what that
Starting point is 00:38:46 is. This information that was this commercially available data generally includes your location, some credit history, insurance claims, criminal records, employment history, income, purchase history, and personal interest data. That was the thing that really drove a lot of it. And as you probably can tell by the conversation there, where that data becomes available and viable. Now, this information is available commercially, so it can be evolved. It can be acquired from third parties and used for a whole bunch of things. There are fair use acts. and used for a whole bunch of things.
Starting point is 00:39:27 There are fair use acts. There are fair use when it comes to employment decisions or other things. But then there are some gray areas under investigations purposes where what is used or not. The report basically said a significant amount of commercial information for mission-related purposes and sometimes uses social media data to aid in these missions. That was what the report said. So I think we'll watch this. There will be more to come with it. we'll watch this, there'll be more to come with it, but the rule here is that if you're using an online service, if you're using an app, if you're ordering pizza
Starting point is 00:40:08 on a delivery app, and you read those terms of services, and I'm not suggesting you go out and read every term of services, I don't know that that's realistic, that the data that you're giving them is sometimes, oftentimes, made commercially available. Sometimes it's anonymized, and sometimes it's not. So what I often say is know what you're giving up and what you're receiving for it. If TikTok is very important to you and you enjoy watching TikTok, just understand what you're giving TikTok. If Facebook is important to you, understand what it is. If you're using an insurance company, read their... And you don't... they give you a privacy opt-out
Starting point is 00:40:45 notice you read it and those are you can control some of this some of this you can't but it's just a reminder that if you're using these things that your data is available and with that i will turn it back over to read well thanks so much everybody for dial for dialing in, tuning in. Please let everybody out there know about LPRC's Crime Science Podcast. Give us those likes as you hear other podcasts talk about referrals, repost, put us out there. look at things better or differently? What can we do to get the word out to practitioners, to maybe the media, to policymakers, lawmakers, who needs to know about what you all are doing, how everybody's working together, we're injecting science into practice and so forth. So stay tuned, stay in touch, lpresearch.org. Thank you. Thanks for listening to the Crime Science Podcast presented by the Loss Prevention Research Council. Thank you. advice. Views expressed by guests of the Crime Science Podcast are those of the authors and do not reflect the opinions or positions of the Loss Prevention Research Council.

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