Retail security experts encourage proactivity amidst rising threats

For anyone overwhelmed by the proliferation of bad actors, complex schemes, financial statistics, and countless tools and technologies in retail security, Tony D’Onofrio offered encouragement to NRF PROTECT 2025 attendees: “You’re at the right place at the right time.”

Those involved in loss prevention, asset protection, cybersecurity, digital fraud and enterprise risk management have the opportunity to play a “critical role across the retail universe.” But there’s a catch: Proactivity is required.

D’Onofrio, president at Sensormatic Solutions, took part in the standing-room-only Wednesday morning session, “Retail Asset Protection 2030: Innovating for a Secure Tomorrow.” He was joined by Ben Dugan, president of the Coalition of Law Enforcement and Retail; Read Hayes, PhD, research scientist/criminologist at University of Florida and director of the Loss Prevention Research Council; and Scott McBride, chief global asset protection officer and CSO with American Eagle Outfitters Inc.

They touched on the need to take a “transnational” view when it comes to solutions, as well as the importance of experimenting with AI, and being willing to “fill in the gap” where cyber meets physical (such as a system intrusion that unlocks corporate headquarters).

It was one of a series of sessions that day that advised attendees to start somewhere — whether it be better vetting and mitigating the cyber risks involved with third parties; seeing return fraud as more than just a “cost of business;” knowing how to package data in a way that can best be used by law enforcement; inventorying every application used by the company that incorporates AI; or even attempting to be the adversary against one’s own company to help discover and improve vulnerabilities and weakness.

“Breaking the Refund Abuse Cycle: Amazon and Target Share Their Efforts” included Preston Ackerman, special agent with the Federal Bureau of Investigations; Jason Ruiz, senior corporate counsel at Amazon; and Erin Becker, senior director cybersecurity, fraud and abuse at Target Corporation. The conversation was moderated by David Johnston, NRF’s vice president, asset protection and retail operations.

That session explored the extensiveness of refund fraud-as-a-service, where fraudsters provide the “service” of helping people receive undeserved refunds from retailers. They may consider it a victimless crime. The retailers present, however, spoke about the impact on prices, product availability and more. In late 2023, NRF reported that return fraud had contributed $101 billion in overall losses for retailers that year. Clearly, one retailer said, this is no longer a “rounding error.”

Retailers can step up by understanding the “cyber kill chain” — a model that outlines the stages of a cyberattack — as well as collaborating with law enforcement and others. The group shared a variety of successfully concluded investigations in which retailers partnered with the FBI. Other collaborative efforts include the NRF Center for Digital Risk & Innovation’s Retail Fraud Taxonomy knowledge base.

“Third Party Cyber Risk Management: New Tools and Technologies in Retail” featured Chad Walker, senior director of cyber risk with Albertsons Companies; Gianni D’Aprile, vice president, CISO at BJ’s Wholesale Club Inc.; and Wei Dong, CISO with Michaels Stores Inc. Here, panelists talked about using only “questions that matter” on questionnaires designed to assess risk with vendors, the things that could truly “inform a business decision.”

Further, when asking analysts about the biggest third-party risk, the correct answer isn’t which vendors have the most findings; it should be about the most important business processes, and which vendors are critical to those processes. Also, it’s essential to remember that a data risk is an operational risk, and could have significant consequences for the business.

Finally, “Strategic Cargo Theft Vulnerabilities: Navigating the Intersection of Cybercrime and Fraud Threats” included Courtney Homan, senior director at PLS Logistics Services; Byron Smith, president and chairman of the International Supply Chain Protection Organization; Scott Cornell, vice president, national practice leader, transportation, Travelers Inland Marine at Travelers Insurance; and Matthew Walsh, director - global investigations at Walmart Inc. Steve Hunter, director - global investigations at Walmart Inc., moderated.

In recent years, cargo theft has fundamentally changed. Between the first quarters of 2022 and 2024, strategic theft (people tricking others into giving them freight) increased 1,475%. The rings are larger, more sophisticated and often international — and as much as these criminals can steal, they can sell.

Learning what was stolen and how is key, as is collecting the evidence, collaborating with the broker and supporting law enforcement in investigations as soon as possible, the panelists said. Technology and tracking methods can also be of use, though a multi-layered approach is important. Companies might also partner with their insurance company to mitigate risk — as well as with NRF in advocating for the Combating Organized Retail Crime Act of 2025.

“Do what you can,” one panelist advised. “Lean in.”