New Zealand Security Magazine - December 2020-January 20201 by Defsec New Zealand

December 2020/January 2021

New Zealand Security Magazine

Women in Security

Rethinking Retail

Recognising excellence in security â&#x20AC;&#x201C; we celebrate the winners and finalists of the inaugural Women in Security Awards Aotearoa.

Acceleration of multi-channel retail in the wake of COVID-19 is disproving assumption that eCommerce is good for loss prevention.

New Privacy Act

COVID and cyber

New Act now in force means a good time to consider whether your organisation is compliant with overseas privacy regulations.

The projected economic impacts of COVID and the rush for a vaccine have fuelled a rush of state-sponsored cyber incursions.

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Gallagher delivers latest technology to market.........................................................................................................................................8 Women in Security Awards Aotearoa launches.......................................................................................................................................10 Women in Security Awards Aotearoa: The Winners...............................................................................................................................12 CoA training platform a ‘virtual’ success....................................................................................................................................................14 Hikvision releases Gen 2 ColorVu cameras with 4K options................................................................................................................16 Busted! Stories from New Zealand’s leading private investigator.....................................................................................................18 Good Practice Guidelines: Training..............................................................................................................................................................20 Security Industry Training 2020: Post Covid- 19.......................................................................................................................................23 Inner Range Bolsters Cyber Security with NIST Certification...............................................................................................................24 Securing medicinal cannabis.........................................................................................................................................................................26 5 reasons the new Privacy Act can impact your business....................................................................................................................28 A report from the NZSA Chair........................................................................................................................................................................30 NZSA CEO’s November Report......................................................................................................................................................................32 Annual report from the NZSA CEO...............................................................................................................................................................34 ASIS International Announces 2021 Global Board of Directors..........................................................................................................36 Security Training and Professional Development SIG...........................................................................................................................38 New Minister for Justice Portfolio...............................................................................................................................................................39 Rethinking Retail............................................................................................................................................................................................... 40 Malicious cyber activity in the COVID-19 era........................................................................................................................................... 44

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December 2020/January 2021

FROM THE EDITOR Welcome to the December 2020/January 2021 issue of New Zealand Security Magazine! In this issue we focus on the issues of security training and retail security, and we profile the winners of the Women in Security Awards Aotearoa! Independent security consultant and seasoned trainer Lincoln Potter PSP looks back over 2020 as a year of significant progress for industry training. Lincoln highlights Hard Target’s award winning online training initiative, the NZSA-MSD partnered virtual reality training platform, and the great work being done by the NZSA SIG for Training and Professional Development as stand outs. NZSM is delighted to be able to profile the winners of the inaugural Women in Security Awards Aotearoa. This is a fantastic initiative that promotes excellence within an under-represented group within security. Congratulations to all the winners and finalists for your contribution to our sector! We’re also delighted to be giving away two signed copies of Ron McQuilter’s just-published book Busted! Stories from New Zealand’s Leading Private Investigator! See inside for all the details. In his return to NZSM, David Withers APP writes that with the new Privacy Act becoming law on 01 December, it’s a good time to also consider whether your organisation is compliant with overseas privacy regulations. Information security specialist Steve Honiss explores the spike in state-sponsored cyberattacks linked to COVID-19. In retail security, Sara Mosqueda writes that the acceleration of multi-channel retail in the wake of COVID-19 is disproving that assumption eCommerce is good for loss prevention. Continuing with the theme of training, we feature Part Three of our focus on the NZSA-published Good Practice Guidelines, this time with a focus on guidelines for training. We also feature reports from the Chair and CEO from the NZSA Annual Report and the final update for the year from the NZSA’s Training Special Interest Group. Also in this issue, our sponsors and partners their latest security solution news. It’s only through these organisations that NZSM is able to continue to publish news and analysis for the security sector and to shine a light on topics and developments of professional interest. A big thank you to them for continuing to support us during what has been a challenging year. There’s plenty more in this December-January issue of NZSM! To ensure you don’t miss out on any of the news and analysis we publish, subscribe to our email newsletters via our website, and follow us on LinkedIn via the address listed on this page. As always, feel free to get in touch to find out about how your business can benefit by being part of New Zealand’s premier security and risk management industry publication in 2021. And, if you’ve got something to write about, we’d like to hear from you! Nicholas Dynon Auckland facebook.com/defsecmedia twitter.com/DefsecNZ linkedin.com/company/ defsec-media-limited Upcoming Issue February / March 2021 Banking, Insurance and Finance Loss prevention, industry training

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Disclaimer: The information contained in this publication is given in good faith and has been derived from sources believed to be reliable and accurate. However, neither the publishers nor any person involved in the preparation of this publication accept any form of liability whatsoever for its contents including advertisements, editorials, opinions, advice or information or for any consequences from its use. Copyright: No article or part thereof may be reproduced without prior consent of the publisher.

NZSM New Zealand Security Magazine

Nick Dynon Chief Editor Nick has written for NZSM since 2013. He writes on all things security, but is particularly fascinated with the fault lines between security and privacy, and between individual, enterprise and national security. Prior to NZSM he clocked up over 20 years experience in various border security and military roles.

Contact Details: Nick Dynon, Chief Editor Phone: + 64 (0) 223 663 691 Email: nick@defsec.net.nz Craig Flint, Publisher Phone: + 64 (0) 7 868 2703 Email: craig@defsec.net.nz Postal and delivery address: 27 West Crescent, Te Puru 3575, Thames, RD5, New Zealand

December 2020/January 2021

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ACCESS CONTROL

Gallagher delivers latest technology to market Command Centre v8.40 introduces the future of photo ID – the Mobile Connect Digital ID – along with a number of improvements that offer sites greater flexibility for managing their security. Gallagher’s Digital ID removes the cost and inconvenience of issuing physical photo ID cards, instead providing a secure, on-phone and digital alternative through Gallagher Mobile Connect. Digital ID streamlines ID provisioning with the ability to issue and revoke IDs remotely, while real-time updates with Command Centre keep IDs permanently up to date.

“Keeping security systems up to date is one of the best ways customers can keep themselves protected,” said Meredith Palmer, Chief Product Officer at Gallagher. “With cyber threats on the rise, Command Centre v8.40 features improvements to enhance both cyber and physical security.”

In response to the COVID-19 pandemic, Command Centre v8.40 also enables sites to issue mobile credentials to visitors and contractors from the Visitor Management reception client, helping to reduce direct human contact. Gallagher unveils new SMB solution at Facilities Integrate Gallagher unveiled their new security solution for small and medium businesses – Gallagher SMB – at Facilities Integrate 2021 in late November. The SMB solution is a simplified, cloud-based security solution that gives business owners the freedom and control to manage their security with an easy-to-use app. It offers an integrated system with intruder alarm, access control, user management, and video integration, as well as an optional guarding service managed through the app. “It’s exciting to return to the trade show scene – something we haven’t been able to do since before COVID-19,” said Meredith Palmer. “We’re looking forward to introducing our SMB solution, which expands our range of security offerings to protect businesses of all sizes.” Gallagher announces 2021 scholarship recipient Gallagher is pleased to announce Leo Oliver-Dowling as the recipient of the 2021 Sir William Gallagher Master of Cyber Security Scholarship. Started in 2015, the scholarship supports academically talented students

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Leo Oliver-Dowling, this year’s recipient of the Sir William Gallagher Master of Cyber Security Scholarship

studying towards a Master of Cyber Security at the University of Waikato. “My main area of interest is cryptovirology, the study of how cryptography is used to design malicious software,” said OliverDowling. “My goal is to pursue a career at the forefront of cyber security where I’m continuously learning about technology, and also helping people.” “The Sir William Gallagher scholarship has lightened my financial burden immensely, which will allow me to focus on the most important part of university – learning,” he continued. Oliver-Dowling will receive financial support towards his postgraduate studies and industry experience through a research project at Gallagher. “Not only is Leo a high-achieving student who we’re pleased to support, he is also deeply interested in learning about the use of complex technology, in this case cryptovirology, to help people and society at large,” Gallagher CEO and executive director, Sir William Gallagher.

December 2020/January 2021

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WOMEN IN SECURITY

Women in Security Awards Aotearoa launches Underrepresented in New Zealand’s security sector, a new recognition initiative celebrates the women who are making a difference, influencing others and achieving security excellence in Aotearoa. The Women in Security & Resilience Alliance (WISECRA), Defsec Media, ASIS New Zealand and New Zealand Security Association (NZSA) announced the launch of the inaugural Women in Security Awards Aotearoa recognition program on November 10.

Established to recognise women who have advanced the New Zealand security industry, the Women in Security Awards Aotearoa initiative attracted an impressive 37 nominations across seven categories following a fleeting 10-day nomination period. “By offering recognition to women working in the field, other women may be inspired to consider security as a career, which in turn helps address the imbalance,” said Bonnie Butlin, the founder and international coordinator of WISECRA, a global network of female security and resilience professionals. Nominations were accepted in relation to women with more than three years of experience in New Zealand working in physical security, personnel security and/or information security, with an international judging panel considering such information as: • What the person has done to inspire the nomination; • Who benefits from the work, contribution, or influence of the person – and how;

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• How the person sets a positive example for other women in security and demonstrates the potential for change; • What time commitment, risks, and challenges the person has faced to make an impact; • What the person has done above and beyond to show leadership, create change, and give back; • How thoughtful, creative, and unique the person’s approach is to their challenge, opportunity, or situation; and • How the person plans to grow and/or adapt their work, contribution, or influence in the future? How winning the award might impact on them and their work. Winners and Finalists Following consideration by the judging panel, the following outstanding women in security were identified as the category winners: • Educator: Ngaire Kelaher of RISQ New Zealand • Consultant: Sai Honig of ANZ • Indigenous Awareness: Tash Bettridge of Vodafone • Executive: Natasha Hallet of Maritime NZ • Rising Star: Ankita Dhakar of Security Lit • Thought Leader: Kendra Ross of Duo • Engineering: Grace Lee of Cyber Research

Also identified by the judging panel were a select group of Finalists consisting of the following exceptional nominees: • Jill Priest of FIRST Security • Melonie Cole of Mind Shift • Michelle Welten of Global Security • Georgia Kitt-Lobo of SecOps • Toni James of SafeStack • Rosario Soria of IAG • Maniaiwaho (Sarah) Philips of SSS • Jazz Kaur of Global Security • Marie Ahokava of Global Security • Carla Edgar of Alpha Security Services • Angela Beaumont of Seacom Guardall NZ • Janine Anderson of VR Security • Sam Wheatley of Advanced Security • Suliana Jacobsen of Auckland War Memorial Museum • Helen Alai-Stowers of Platform 4 Group • Erina Edmonds of Seacom Guardall NZ • Yvonne Bruce of FIRST Security Comprising the international judging panel were Dr Carrine Teoh Chooi Shi, CISSP, CBCP, Chief Strategy Officer at Westplan Resources Sdn Bhd; Sir Kenneth McKenzie, Head of Security, Health & Safety at Auckland War Memorial Museum; Bonnie Butlin, co-founder and Executive Director of the Security Partners’ Forum; Nicholas Dynon, Chief Editor at Defsec Media; and Jennie Vickers, CEO of the New Zealand Defence Industry Association.

December 2020/January 2021

NZ Certificate in Electronic Security (Level 4) Now Available for Enrolement Have you heard the news? E-tec, in partnership with MIT, is now offering the NZ Certificate in Electronic Security (Level 4). This is a great next step if you’re looking to further your career in the security industry or if you currently hold the NZ Certificate in Electrotechnology (Level 3) and are looking to hone your skills further. Better yet this course qualifies for the Government’s Fees Free policy until December 2022, so don’t miss out.* *Free study for this qualification may be available to you under the government’s Targeted Training and Apprenticeships Fund (TTAF). Find out more at manukau.ac.nz/TTAF

Find out more: Visit etec.ac.nz or contact Carine via 022 568 66 71

WOMEN IN SECURITY

Women in Security Awards Aotearoa: The Winners Recognising excellence in security. We celebrate the winners and finalists of the inaugural Women in Security Awards Aotearoa.

Indigenous Awareness Tash Bettridge is a strong and enthusiastic advocate for greater access to technology, the implementation of it to disadvantaged communities, and cyber security training for indigenous Maori. Tash has a strong connection with her whakapapa and recognises the importance of connecting Indigenous people with technology through an understanding of traditional Maori tikanga. Tash has worked tirelessly for diversity in the NZ Cyber Sy landscape, most recently participating and presenting at the annual WiSy seminars. Tash also co-established an online community, New Zealand Network for Women in Security (for physical and virtual meetups). In doing this, she has woven traditional Maori manaakitanga that has meant typically introverted people, have greater access to resources and are now regular contributors to content and support.

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Educator Ngaire Kelaher PSP, CPP has worked hard on her professional development in order to ensure her students gain as much theoretical knowledge with practical experience as possible. Ngaire is the first woman, and first Maori woman, to lead the New Zealand Chapter of ASIS International. Recently, Ngaire has facilitated presentations by global security thought leaders and sector influencers to improve access to knowledge and learning programmes. Ngaire is one of very few double ASIS certified professionals, and the only woman to hold both CPP and PSP designations in New Zealand. She has delivered training and presentations across both private and public sectors. Ngaireâ&#x20AC;&#x2122;s understanding of training systems and processes mitigate the risk of low completion rates typically associated with low paying jobs, with many of her students over the years having transitioned into senior operational and management roles.

Thought leader Kendra Ross makes it her business to keep up-to-date on national and international security events and trends so that she can share her learned knowledge with others in NZ and around the globe. Kendra is always available to help businesses and individuals. Money is not her motivator. She believes that a cyber safe NZ is possible with collective participation. Kendra is strongly motivated to see people succeed. Kendra is the founder of First Tuesday and has provided her energy and enthusiasm to information security for over 12 years through this group. She is a board member of CERTNZ and an active advocate for personal information security, sharing cyber smart tips to help all New Zealanders. She is a strong advocate for cyber security as part of tertiary education and has led the formation of Project Wednesday, a networking group for students and people new to cyber security.

December 2020/January 2021

Consultant Sai Honig CISSP, CCSP is a recent recipient of the IFSEC Global Top Influencer in Security in the Cyber Security category. Originally from the U.S., Sai has worked in a variety of fields following achieving a BSc degree in Aerospace Engineering. Sai has volunteered across multiple organisations, including the Grameen Foundation. Sai’s work with the Foundation culminated in her being the recipient of the U.S. President’s Volunteer Service Award in 2013. Sai has demonstrable experience leading teams, advising C-Suite executives and boards on cyber security best practice, including establishing and delivering child awareness campaigns in New Zealand through ISC2. Sai is also a member of Cloud Security Alliance APAC Research Advisory Council. Sai has served as a director of ISC2, co-established the New Zealand Network for Women in Security, in addition to becoming a director of the Black Cybersecurity Association. Rising Star In the short time since founding Security Lit in February 2020, Ankita Dhakar has built a strong team and acquired noteworthy key clients with a revenue of 10+ million, and a vision to go global. Ankita inspires everyone she works with, demonstrating by example that you can achieve your goals by believing in your vision,

trusting your team, and giving back to your community. Only 27 years old, Ankita founded her company on the values of commitment, integrity and collaboration, and she lives those values daily. Ankita has built a cyber security company despite having neither the technical background nor formal education, and she has lived in New Zealand for just five years. Far from letting these factors stop her, she has a plan and vision to create an environment in NZ where businesses and individuals don’t need to worry about their digital assets. Engineer Grace Lee is a Security Engineer and Penetration Tester at Cyber Research. Her role involves planning and implementing security measures for information systems and computer networks. Grace has been working in the security Industry in Aotearoa for the past four years and she holds a number of security certifications including OSCP which only a few women in this country have. Grace is adept at all aspects of SOC operations including threat hunting, SIEM operation and management. She is also regularly involved in penetration testing and red team projects. Coming to New Zealand from Korea, Grace excelled as a student at the University of Canterbury. She is an active member of the New

Zealand Network for Women in Security and Tech Women New Zealand where she has presented her security research. Executive Natasha Hallett is Senior Advisor Maritime National Security at Maritime NZ, and she is acknowledged for her dedication and commitment to improving maritime security both in New Zealand and the Pacific. The international relationships Natasha has built up have provided ports in NZ exposure to agencies such as the US Coastguard and Pacific Islands, resulting in improving their overall knowledge of security risks and controls. Natasha has inspired the Port Security personnel she works with to aim for a higher standard of Maritime Security, and to work with the other agencies in this space to help achieve better results. The benefit from Natasha’s work is across multiple agencies, regions and port companies. The relationships she has built have not only benefitted the New Zealand ports, but also in the Pacific, and further afield as the work she does is acknowledged by other agencies and countries. Natasha is committed to lead from the front, responsible for bringing together international security agencies that are traditionally lead at senior level by men though the development of trust and integrity. The positive feedback and support she has from these agencies is unheralded.

VR TRAINING

CoA training platform a ‘virtual’ success The result of partnership between the Ministry of Social Development, the NZSA and experiential learning specialist JBA, the SkillsVR virtual reality and e-learning security training platform is ready to launch. A partnership between MSD, the NZSA and specialist virtual reality developer JBA (Joy Business Academy), a new Virtual Reality training platform seeks to address frustrations with delivery of mandatory training that must be completed as part of obtaining a Certificate of Approval for security officers.

“Those frustrations include accessibility issues (particularly outside of main metropolitan areas), a lack of consistency in the training delivery (including shortened programmes) and literacy issues with current training materials.” Said NZSA CEO Gary Morrison. “Virtual reality and e-learning are recognised as leading edge technologies for the delivery of high quality and effective training,” he said, “providing benefits such as: • Time and cost of training and certification - guards are certified in less time and with less disruption to operations. • Practice for the real world - guards have the opportunity to practice potentially dangerous scenarios, allowing them to safely and effectively comprehend principles before applying them in the real world. • Accessibility outside metropolitan areas - guards can get trained, refreshed and/or certified anywhere without the need to travel and without the cost of facilitator travel and accommodation. • Comprehension - literacy challenges - guards are emotionally connected to their virtual environment,

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and need to utilise their cognitive abilities to complete training/certification, overcoming literacy challenges. • Consistency - guards receive comprehensive and consistent training and have access to training and refreshers throughout the year without having to engage a training facilitator or incur any massive cost to the business. Whilst the original intent was to develop a high quality and readily accessible training delivery option for candidates placed into employment through the NZSA MSD Skills for Industry programme, the NZSA believes that it is in the interest of the wider industry to make the training platform available for all industry participants. “It is important, however, to stress that industry has the choice to utilise the platform or not,” said Gary, “and that it is an option for industry to consider, not a replacement for existing training.” The SkillsVR security training platform comprises a mixture of e-learning and virtual reality modules hosted on the JBA SkillsVR portal and comprises the three unit standards: • 27360 Demonstrate knowledge of managing conflict situations in a security context (e-learning) • 27361 Manage conflict situations in a security context (virtual reality) • 27364 Demonstrate knowledge of the security industry in a pre-employment context (e-learning)

December 2020/January 2021

Better learning outcomes for COA training with SkillsVR JBA, NZSA and MSD are in the process of developing a ground-breaking VR Security platform that will enable accredited provider partners to deliver the mandatory training required for those seeking a COA to work in the security industry. Once the VR platform is approved for use, individuals will be able to enrol for training via the platform, with one of the provider partners. > Total flexibility for timing and location of delivery > 11 real-world scenarios to encounter > Immersive scenarios provide safe but convincing conflict situations > Real-time communication between observers and learners > Escalating character responses to challenge learners > Flexible delivery options including in-house for larger organisations

4x more focused 4x faster than in class 3.75x more connected 275% more confident - PwC VR Soft Skills Training Efficacy Study, 2020

Find out more at SkillsVR.com/Security Job site training delivered off-site “The e-learning modules provide total flexibility with regards to venue and timing from a learner perspective and the virtual reality is delivered from a simple to use headset that can either be purchased or hired (with one day courier turnaround),” he said. “Users can expect an immersive experience for potentially dangerous situations, allowing them to flex their cognitive abilities in real-world environments, said JBA’s CEO James Coddington. “VR is the only technology that can highlight identifiers of performance in real-world situations before people are put in harm’s way.” “It also helps candidates and employers understand how someone might react in a specific role, as opposed to working for 3 months only to learn that the candidate is more suited to something else.” JBA and NZSA recently hosted a user testing session, with a small group of security providers and Skills representatives viewing, testing and providing feedback on the platform. “Despite some unexpected technical glitches the overall feedback was exceedingly positive,” said Gary, “particularly with regards to the quality, realism and effectiveness of the virtual reality scenario-based training.” JBA is currently making system improvements and adding further functionality based on user feedback. It is planned that MSD candidates will be trained on the platform in coming weeks. The NZSA will conduct a roadshow around the country in early 2021 with an open invitation to security providers to trial and experience the platform and discuss

delivery and pricing options. Dates and locations will be promoted well in advance. The value of partnerships According to James Coddington, the cost of developing VR-based training platforms can be prohibitive, but via partnerships JBA has been able to make the tech more accessible. “Because we’ve developed our VR modules in conjunction with Government and Industry, they address challenges that are common to all businesses, at a cost that is more efficient than traditional, in-class, and e-learning channels,” he told NZSM. JBA has worked with MSD to develop Kills for Industry VR learning experiences for job seekers and employers in a range of areas in addition to security, including construction and health and safety. “We’ve had funding approved for 14 more VR scenarios, aligning to multiple industry standards including NZQA,” said James. “Customers can expect to see an ever-growing library of VR scenarios covering all aspects of the workplace, and ultimately improving the quality of health and safety in New Zealand.” “To help businesses adopt VR we’re offering a very affordable package to help pilot this emerging technology with minimal risk. This package includes onboarding, access to VR headsets, postage to regional offices, deployment guidance, benchmarking, and analysis for Return on Investment (ROI).” For further information please contact Chris Thomas from SkillsVR: chris@SkillsVR.com, Ph 021 771 173.

TECHNOLOGY

Hikvision releases Gen 2 ColorVu cameras with 4K options Hikvision has announced its new generation of ColorVu cameras for more vivid 24/7 colourful imaging, including 4K options in its full-colour offerings. In video security, colour-related information is crucial to identifying details of events, especially at night. Conventional cameras with infrared lighting provide only black and white images for night monitoring. As a result, people, vehicles, or other important objects can appear blurry and blend into the background, making critical elements difficult to distinguish. It’s a challenge faced by security camera users the world over, and the good news is that Hikvision ColorVu technology provides a solution, enabling cameras to produce colourful videos even in extremely dim environments. “Since 2018 when we introduced the first generation of ColorVu cameras to the market, they have been one of our best selling products,” said Frank Zhang, President of International Product and Solution Center at Hikvision. “The demand for low-light cameras continues to increase in the security industry, and we’re glad to see that our upgraded Gen 2 ColorVu cameras can bring even more vivid imaging experience to our customers.” Enriched ColorVu options with 4K cameras The newly released Gen 2 ColorVu cameras offer enriched options designed to satisfy a multitude of customer needs – from high performance products to budgetfriendly options and smart solutions. Hikvision has now included 4K ColorVu cameras in its product range, which brings colour imaging to new ultra-high-definition levels day and night.

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With better image quality and richer detail, 4K ColorVu cameras can be deployed across an even wider range of scenarios including stadiums, airports, harbours, and parking lots, where clear and highresolution images are necessary. Enhanced colour imaging with AA manufacturing technology Gen 2 ColorVu cameras lenses have kept the F1.0 super-aperture design, allowing four times more light to enter the lens than conventional F2.0 cameras. Focusing high definition cameras with large F1.0 apertures is extremely technical, requiring precise manufacturing. Hikvision has applied its advanced Active Alignment (AA) Technology in the production of ColorVu cameras to bring adjustment accuracy to within 4 pixels – smaller than a 1/30 hair diameter. With optimised sensors, Gen 2 ColorVu camera night time colour imaging renders much more brightly than conventional cameras. A new 3D dynamic noise reduction (DNR) algorithm helps the camera record additional remote details clearly and

deliver sharper images. In addition, Gen 2 ColorVu cameras are equipped with a soft and warm supplemental light that illuminates to guarantee colour imaging even in zerolight environments. Quick target search with AcuSense technology Most security cameras are deployed to focus on alarms triggered by human and vehicles, especially at night. The newly released ColorVu cameras can integrate Hikvision’s cutting-edge AcuSense technology to help users focus only on the events that matter. Empowered by deep learning algorithms, ColorVu cameras can distinguish people and vehicles from other moving objects such as rain, leaves and animals. Alarms will only be triggered when the pre-set intrusion type takes place. Footage is sorted by human and vehicle categories, with object classification leading to vastly improved search efficiency. To find out more about Hikvision ColorVu Technology, visit https://www. hikvision.com/en/core-technologies/ low-light-imaging/colorvu/

December 2020/January 2021

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NEW BOOK

Busted! Stories from New Zealand’s Leading Private Investigator Ron McQuilter, Chair of the New Zealand Institute of Professional Investigators and seasoned PI, has had a new book published that’s now available at a bookstore near you. He writes exclusively about it for NZSM. When you tell people you are a Private Investigator (‘PI’) the usual response is “Oh so you spy on cheating husbands” then you spend the next few minutes trying to explain the real work performed, though often you can see in the listeners eyes that the stigma remains, because it’s not easy in a brief conversation to cover off the wide range of cases involved.

But with the vast variety of interesting work undertaken, nearly every PI I have spoken to has commented that their friends suggest they should write a book, myself included. And so, a couple of years ago recovering at home in a sling from a shoulder operation, I decided to take up the challenge. Interestingly, it took only four weeks to write because when I started the stories just flowed. Once I had the draft I sought out a professional editor to kick it around,

Ron McQuilter is Managing Director of Paragon Investigations. A leading figure in the New Zealand private investigation sector over the past 35 years, Ron is a long-serving Chairman of the NZIPI. 18

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because I did not want it to read like a collection of reports. The editor loved it and pitched it to publishers and now you can buy it at Whitcoulls! So why should a PI write a book?. My sole purpose was to educate the public in what real PIs do, the hard graft involved and the amount of good we do for the community. Sounds corny, but professional PIs are a group of dedicated, trained and licensed individuals, working to a code of professional conduct, out in the business community saving peoples jobs, livelihoods, personal assets and businesses, the list is long. All the while there’s that public perception or stigma, I think related back to infidelity work, that somehow PIs are only interested in breaching privacy. Recent media and a State Services Commission enquiry did not help our cause. I chose a variety of 18 cases to write about, encompassing most of the work a professional PI might take on, yes, including an obligatory infidelity case and one where I assisted a prostitute to check up on how her opposition was stealing her clients. If I did not include this work, it could seem like I was running from reality. There is a lot of humour, like getting peed on in the bushes while on surveillance, and getting conned by a client dressing up as a tree. The common denominator is the sad indictment on society or rather the scumbags that prey on the public and businesses. One story involved a cold case in which I was on a hiding to nothing from the start – no leads, a missing Kiwi at the other end of the world and a budget of $0. But rather than turn a blind eye, I opted instead to pay it forward and as I am sure all PIs will testify to, the harder and smarter you work the luckier you get. There has been a lot of publicity surrounding the book launch, none bad, which should lift the reputation of New Zealand PI – that’s the plan. I recommend it as a read over Christmas for readers of this magazine especially.

December 2020/January 2021

NZSM has two signed copies of Busted! to be won!

See below for more details An NZSM exclusive giveaway! New Zealand Herald describes it as an “eclectic collection of some of the thousands of cases McQuilter has solved: blackmail, cheating spouses, corporate espionage, thieves, fraudsters and insurance scams.” In addition to print media coverage, Ron’s been doing the rounds on radio and television, and has been seen mixing it up with the presenters of TV’s The Project. Thanks to Ron, NZSM has two signed copies of Busted! Stories from New Zealand’s leading private investigator to give away. To be in the running to secure your copy, NZSM invites you to put pen to paper and provide us with a 500 to 1,500-word account of your most interesting investigation or incident as a security professional (whether a PI, security officer, consultant or electronic or cyber security professional). The winning two entries will each receive a signed copy of the book, and they’ll also get published in NZSM! Deadline for submission is 20 January 2021. That’s plenty of time to create a masterpiece, so get writing over the summer break! Email your entry to editor@defsec.et.nz. The book is available in Whitcoulls and Paper Plus stores nationwide. Title: Busted! Stories from New Zealand’s leading private investigator Author: Ron McQuilter Ron McQuilter lives by his ABCs - Assume nothing, Believe nobody, Check everything. It’s helped him through 37 years working as a private investigator in New Zealand.

December 2020/January 2021

Publisher: New Holland Publishers RRP: $34.99

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TRAINING

Good Practice Guidelines: Training Launched in June, the NZSA’s New Zealand Security Industry Good Practice Guidelines provides clear guidance on a range of security guarding topics. In this excerpt we step through what it has to say on training. All staff employed in the security industry must be licensed in accordance with the requirements of the Private Security Personnel and Private Investigators Act 2010.

Employers in the security industry should encourage their staff to improve their knowledge and skills through both in-house training and the New Zealand Qualifications Authority (NZQA) qualifications framework. During the recruitment process, as an employer you should carry out a series of checks on the good character of prospective workers. These checks should include: • where possible, three reference checks with previous employers. • a credit check. You should also consider the mental resilience of potential candidates and whether they have the physical fitness to meet the requirements of the job. All frontline security staff should hold a current first aid certificate. You should not permit any staff to begin any duties until they have completed the basic induction and minimum training standards required for that role. Company induction training Your security company must ensure that all new property and mobile security patrol guards undergo an induction process that at a minimum covers: • company communication codes and RT procedures. • phonetic alphabet and 24-hour time clock. • incident reporting and statement (taking and making) processes. • incident management skills. • detect, deter, observe, report training. • conflict management beyond what NZQA Unit Standards 227360, 27361 and 27364 cover. • situational awareness training. • risk assessment training. • site safety plan training.

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• Move, Hold and Tell response training. • fatigue management on shift work. • legal rights and powers that guards can use in a security function. • health and safety policies and procedures. • administrative requirements and company rules and policies. Your security company should have a system of recording on the personnel file of each property security guard and mobile security patrol guard when they have completed the induction process and any further training. Pre-deployment training To get their security licence, all property and mobile security patrol guards must complete these mandatory training standards: • NZQA Unit Standard 27360 – Describe conflict management in a security context. • NZQA Unit Standard 27361 – Manage conflict situations in a security context. • NZQA Unit Standard 27364 – Demonstrate knowledge of the security industry in the pre- employment context.

December 2020/January 2021

Security Services in New Zealand

Good Practice Guidelines od Guidelines JUNE 2020 New Zealand Security Association E tū WorkSafe New Zealand

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Where guards are working under a temporary licence and have yet to complete this training, we recommend that they: • are not deployed on their own. • are closely supervised. Detect, deter, observe and report The primary purpose of property and mobile security patrol guards is to detect, deter, observe and report. Like all workers in New Zealand, property and mobile security patrol guards are not expected or required to put themselves at risk of injury or death when they go to work every day. It is important that: • all property and mobile security patrol guards are adequately trained in the detect, deter, observe, report method and do not take unnecessary risks while at work; and • your security company and the customer provide an environment that ensures the safety of the guards while they are at work. Situational awareness Situational awareness is the ability to identify, process and comprehend information about how to survive in an emergency. More simply, it is knowing what is going on around you. Situational awareness is dynamic, hard to maintain and easy to lose. Knowing what is going on all the time is very difficult to achieve for any one person, especially during a highstress survival situation. Therefore, it is important that property and mobile security patrol guards know what behaviour helps to maintain situational awareness. Here are some ways you can improve your situational

December 2020/January 2021

awareness today before you need it as a property or mobile security patrol guard: Learn to predict events in a survival situation: The most effective aspect of situational awareness is being able to predict how elements around you are likely to affect future actions and events. After you have been able to identify elements in your site environment and understand the situation, it is time to take your situational awareness one step further. Use this information to think ahead and work out how it will affect future actions and events in the environment. Identify elements around you: The first step in achieving situational awareness is to become aware of the important elements in the environment on your site. It is designed to help you expand and improve your perception of what is happening around you. Start by noticing the threats that surround you and then expand your awareness to other non- threatening elements. This is the most basic level of situational awareness where you begin to monitor, detect and recognise many different elements in your situation. These include objects, events, people and environmental factors. Basic situational awareness also requires you to notice the locations, conditions and actions of the elements around you. For a property or mobile security patrol guard, these are skills you already use on a daily basis. Trust your feelings: Disorder within your work environment or a gut feeling that things are not right can cause you to lose proper situational awareness. This clue is one of the most reliable indications that something is wrong because the body is able to detect stimuli in the environment long before we have consciously put all the information together. Limit situational overload: Overload causes distraction, increased errors and high stress. During times of overload, you can help yourself survive by: • prioritising and delegating tasks. • minimising surrounding distractions. Avoid complacency: Assuming everything is under control will make you less vigilant. You have to actively keep yourself in the right mindset. When things are slow or tasks are routine, we usually become complacent. The worst part is that complacency slowly creeps up on us, so we hardly ever notice it except in hindsight. To stop yourself from becoming complacent: • continue to challenge yourself and those around you to be prepared for contingencies. • do a mental check every now and then. Be aware of time: Time is an important factor in mastering situational awareness. The actions of individuals, task characteristics and outside elements are constantly changing the pace of your environment. When unplanned events begin to arise, make the necessary changes to your schedule and goals to help you survive. Begin to evaluate and understand situations: The next

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step involves understanding multiple elements in your environment through recognising, interpreting and evaluating patterns. Use this information to work out how these elements will affect your goal – which, in this case, is to survive. This information will help you build a comprehensive picture of your immediate surroundings and stronger situational awareness. Actively prevent fatigue: Fatigue makes it harder for you to watch for possible danger or difficulties. Active steps you can take to prevent fatigue are to: • try adjusting your work routine and following a disciplined sleep routine to prevent wake cycles longer than 18 hours. • get a sound sleep of at least five, preferably eight, hours every day to minimise sleep deprivation. Continually assess the situation: When you are in a survival situation, always be prepared for changes around you. Continually assess and reassess the situation to work out if you are giving yourself the best possible chance of survival. Learn what nature, the land and new tasks are telling you, before you find yourself in a difficult situation. Monitor the performance of others: Be alert for changes in the performance of people around you, which may be due to work overload, stress or mistakes. When you observe changes in performance, take action by speaking up and helping out. A weak link in your team could be the difference between success and failure. High-risk sites Staff working at high-risk sites should have an increased level of refresher training on managing critical incidents. We recommend providing refresher training every six months for staff deployed to a high-risk site. Site hazards All property and mobile security patrol guards must have training to: • understand workplace hazards in the site they are deployed to.

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• know what controls, including operational policies and/or personal protective equipment, are in place to protect them from such hazards. Your security company should also inform its security guards about procedures to follow if an emergency involving site hazards or hazardous materials occurs. Escalation All property and mobile security patrol guards should be trained in your security company’s escalation plan. Your security company should also provide them with a copy of that plan. The escalation plan should set out the process to escalate when: • an incident has occurred. • the risk to the health and safety of the guard or someone else has increased. • a service delivery issue has arisen. • a customer has complained. The escalation plan will also provide instructions on: • when to escalate an issue. • how to escalate an issue. • who to escalate an issue to. • what will happen once the issue is escalated. All property and mobile security patrol guards are encouraged to understand and use the escalation plan to ensure a safe and secure work environment. Legal knowledge required Property and mobile security patrol guards should have a basic understanding of the following laws: • Crimes Act 1961: Section 42. Preventing breach of the peace; Section 48. Self-defence and defence of another; Section 56. Defence of land or building; and Powers of arrest for serious offences such as murder, rape and robbery. • Summary Offences Act 1981: Section 9. Common assault; Section 11. Wilful damage; and Powers of arrest under authority from lawful owner or occupier.

December 2020/January 2021

TRAINING

Security Industry Training 2020: Post Covid- 19 Despite the significant challenges COVID-19 has thrown at the security industry, writes Independent Security Consultant Lincoln Potter PSP, adversity has delivered some innovative new training initiatives. The COVID-19 pandemic has presented new challenges for training within our industry. Amid the various Alert Levels, the demand for security officers increased, along with applications to the PSPLA for Certificates of Approval. During the lockdowns, it was difficult for new entrants coming into the industry to get through the mandatory training requirements. Classroom teaching was out of the question and e-learning online resources were in early stages of review and renewal. But these challenges also triggered new initiatives.

Lincoln Potter PSP is an Independent Security Consultant based in Auckland

December 2020/January 2021

During lockdown, training provider to industry HardTarget identified the need for specialist online training content and launched a series of video modules to fill the classroom training void and to give our new entrants the skills to keep themselves safe while at work. HardTarget picked up a gong at the NZSA 2020 New Zealand Security Industry Awards as a result. In another major initiative, the NZSA, in partnership with the Ministry of Social Decelopment (MSD) contracted Joy Business Academy ( JBA) to develop a new line of mandatory training modules that, once moderated, will fill the requirements of the NZQA Unit Standards 27360, 27361 and 27364. These incorporate e-learning and virtual reality technologies. The new e-learning has been developed using the new Skills Organisation content (recently released) in order to maintain currency with our standard setting provider. Due for release early next year, this training package will completely change the way we train our security officers in the future. The virtual reality (VR) training has been developed to train new entrants in common scenarios we come across out in the field. This initiative is visionary for our industry, and given the current economic climate, I feel we should be very greatful for the investment

the MSD and NZSA have made in support of industry training. Given that VR training is a new concept, I am pleased that the response from industry so far has been very encouraging. The NZSA Special Interest Group for Training and Professional Development within the Security Industry has had a busy year working on what is called the ‘High-Risk’ Unit Standards relating to self-defense and control and restraint. A great deal of work has been done on wrapping the metrics of this training around the Unit Standards. In the past, this has always been extremely difficult to achieve, however the SIG has so far been successful and is waiting to hear back from NZQA. Training providers are already working on their resources for delivering this training. Skills and Shift (Standard setting body) is busy working on the resources for the new Level 3 foundation qualification. This is a fortunate turn for the industry as it had been doubtful there would be funding to do this. Without the funding we would have had a new qualification but no learner materials and resources. These developments have indeed been very encouraging, and they reflect the fact that 2020 – despite its major challenges – has been a productive year for industry training.

NZSM

ACCESS CONTROL

Inner Range Bolsters Cyber Security with NIST Certification Following on from the release of Two Factor Authentication in Inception earlier this year, Inner Range continues to enhance its cyber security credentials through the National Institute of Standards and Technology. The National Institute of Standards and Technology (NIST) was founded in 1901 and is now part of the U.S. Department of Commerce. NIST is one of the USA’s oldest physical science laboratories and was established by Congress to remove a major challenge to U.S. industrial competitiveness at the time—a second-rate measurement infrastructure that lagged behind the capabilities of the United Kingdom, Germany, and other economic rivals.

NIST is responsible for developing information security standards and guidelines, including minimum requirements for U.S. government information systems. NIST standards are based on best practices identified from a range of sources, and are designed as a framework for federal agencies requiring stringent security measures. The encryption algorithms used by Inner Range Integriti and Inception have both received NIST certification, and customers can be assured that the encryption used by Inner Range is of the highest standards. Certification demonstrates Inner Range’s ongoing commitment to their partners and customers by delivering solutions that have security embedded within,” said Andrew Thorburn, Enterprise Security & Risk Manager at Atlas Gentech. “It has been achieved through robust internal and independent external vulnerability testing of their products.” The Federal Information Processing Standard (FIPS) 140-2 is a US government computer security standard used to approve cryptographic modules. As noted in the FIPS PUB 140-2: Security Requirements for Cryptographic Modules change notices document, dated 25 August 2007, FIPS 140-2 defines four levels of security, simply named “Level 1” to “Level 4”:

security function shall be used). An example of a Security Level 1 cryptographic module is a personal computer (PC) encryption board. Level 2 Security Level 2 improves upon the physical security mechanisms of a Security Level 1 cryptographic module by requiring features that show evidence of tampering, including tamper-evident coatings or seals that must be broken to attain physical access to the plaintext cryptographic keys and critical security parameters (CSPs) within the module, or pick-resistant locks on covers or doors to protect against unauthorized physical access. Level 3 In addition to the tamper-evident physical security mechanisms required at Security Level 2, Security Level 3 attempts to prevent the intruder from gaining access to CSPs held within the cryptographic module. Physical security mechanisms required at Security Level 3 are intended to have a high probability of detecting

Level 1 Security Level 1 provides the lowest level of security. Basic security requirements are specified for a cryptographic module (e.g. at least one Approved algorithm or Approved

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December 2020/January 2021

and responding to attempts at physical access, use or modification of the cryptographic module. The physical security mechanisms may include the use of strong enclosures and tamper-detection/response circuitry that zeroes all plaintext CSPs when the removable covers/doors of the cryptographic module are opened. Level 4 Security Level 4 provides the highest level of security. At this level, the physical security mechanisms provide a complete envelope of protection around the cryptographic module with the intent of detecting and responding to all unauthorized attempts at physical access. Penetration of the cryptographic module enclosure from any direction has a very high probability of being detected, resulting in the immediate deletion of all plaintext CSPs. The NIST Cryptographic Algorithm Validation Program (CAVP) provides validation testing of approved (FIPS-approved and NIST-recommended) cryptographic algorithms and their individual components.

December 2020/January 2021

This certification is required for use by US federal government agencies and regulated industries. It is recognised globally and most importantly the certification provides confidence in the implementation of Inner Range cryptographic modules and their ability to communicate and store data securely. “Cyber Security is extremely important, and it is essential that companies such as Inner Range implement the best in class encryption algorithms to ensure that our customers communications and data are secure,” said Steve Mitchell – Inner Range product development manager. “Along with the current NIST CAVP certification, we will continue improving the cyber security of our products into the future to ensure our customers have access to the best possible protection.” For more information about this or any other Inner Range solutions, please contact your local Atlas Gentech representative in Auckland, Wellington and Christchurch, or call our customer services representatives on 0800 732 637.

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INTEGRATED SOLUTION

Securing medicinal cannabis When Rua Bioscience needed to secure its production of medicinal cannabis, the company turned to Gallagher for a world-class integrated solution to protect their site and keep people safe.

Founded in 2016, Rua Bioscience has grown from two co-founders to over 20 employees, including expert growers, scientists, and plant geneticists – all committed to the breeding, cultivation, and processing of medicinal cannabis.

With no standards in place for the security of medicinal cannabis sites, Rua Bioscience looked to Gallagher for a world-class integrated solution to protect their site and keep people safe. Since 2016, the cannabis industry has advanced quickly and so has the company. They’ve become a world leader in the research and development of plant genetics, specialising in cannabinoid extracts. With this in mind, a security solution was required to detect, deter, and defend the three sites in which Rua Bioscience operates within New Zealand. “When the medicinal cannabis regulations were released in December 2019, we needed a security system in place that would not only meet these regulations but also limit access and keep staff safe,” said Paul Naske, Chief Operations Officer at Rua Bioscience. “When we built the sites to cultivate medicinal cannabis, there were no defined standards for such

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sites,” Naske contined. “We looked at what other sites across the world had done and so we chose to learn from those. “We worked with Aotea Security to develop an integrated security solution which included a monitored pulse fence, access control, and CCTV, which provides a high security environment for what we require. The Gallagher system was the best option for us because it can provide all this and more.” With two sites used for the growing and cultivation of cannabis plants and one head office, Rua Bioscience required multi-site access. “In the future we will increase employee numbers and employ contractors, and so access to zones will be more prominent along with access to multiple sites,” Naske said. “We are also investigating the requirement for personal duress because of the nature of the work we do here.” Rua Bioscience has huge growth plans and is working towards the manufacture of GMP-certified, qualityassured medicinal cannabis as Active Pharmaceutical Ingredients and products, for domestic and global customers. The flexibility of the Gallagher system is key as the business evolves.

December 2020/January 2021

REACH

NEW HEIGHTS in Professional Excellence

ASIS accredited certifications can help you reach your career goals.

Globally recognized as the gold standard for more than 40 years, the CPP is designed for senior-level security managers with seven to nine years of related experience.

WHY EARN THE CPP DESIGNATION? • Validate your security management expertise • Gain global recognition by your peers and the industry • Get a competitive edge in the marketplace • Enhance your career and earnings potential • Enjoy personal satisfaction and professional achievement Be one of the many ASIS board certified practitioners who are leaders, mentors, and trusted strategic partners, serving both their organizations and the profession.

"This gave me a better understanding of security management, and in turn made my conversation with clients and stakeholders more meaningful and useful. It has also increased my profile in the profession. I encourage any security professional to become board certified. I wish I had done this sooner." - Rehan Du Toit CPP

WHY SHOULD AN EMPLOYER HIRE ASIS CERTIFIED PROFESSIONALS? • Build a strong, dedicated team committed to high standards and continuing professional development • Promote ongoing education of critical job knowledge and skills • Feel confident that your staff are using best practices • Recruit the most qualified professionals • Reinforce or elevate your organization’s reputation and credibility Increase the competency level of your staff by supporting your security professionals in their certification journey.

Visit www.asis.org.nz for more information

PRIVACY ACT

5 reasons the new Privacy Act can impact your business New Zealand’s new Privacy Act became law at the beginning of December. It’s a good time to also consider whether your organisation is compliant with overseas privacy regulations, writes Planit Software Testing’s Dave Withers APP. New Zealand has ironically caught a lucky break with COVID-19. New Zealand businesses are now in a situation that we can all take advantage of. With many parts of the world in lockdowns, our workforce is now living their healthy normal lives. Teams can now meet in-person to collaborate on ideas and work together.

David Withers APP is a Security Consultant with experience in large CCTV installations. He has also worked for over 20 years in Quality Assurance. As a Shadow Committee member of the ASIS NZ Chapter, David establishes and supports Auckland-based ASIS certification study groups.

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The first wave forced most workers into remote working. As a result, going to a physical location to work is no longer a requirement for many assignments, and remote work is now an accepted work practice worldwide. Our workforce can now work with clients anywhere in the world, and we are well placed to grow our businesses outside our borders as a result. Given that from December businesses are required to adjust to New Zealand’s new Privacy Act 2020, in our globalised context it is recommended that you also look to become compliant for international markets as well. Privacy regulations worldwide are all based on the same ideal of collecting and securing appropriate personal and sensitive data correctly. This means for very little extra effort you can become complaint in other territories. Some examples are: • General Data Protection Regulation (GDPR): The European data privacy and

security law covers a market of 446 million people. Noncompliance costs for hundreds of companies were more than 114 million euros in fines in the law’s first 20 months. • Health Insurance Portability and Accountability Act (HIPAA): This US standard is designed to protect sensitive patient data in a market of 328 million people. Noncompliance costs companies an average penalty of USD1.2 million per violation. • California Consumer Privacy Act of 2018 (CCPA): This law protects the rights of consumers personal data. All the above could be addressed when making your company compliant with the new NZ Privacy Act. The new Act comes into effect on 1 December 2020, bringing with it a number of changes: • New privacy breach notification regime: If a privacy breach has caused (or is likely to cause) serious harm, the company must notify the Office of the Privacy Commissioner and affected individuals as soon as possible • Compliant notices: The Privacy Commissioner can issue compliance notices to organizations to require them to do something; or stop doing something • Enforceable access directions: The Privacy Commissioner can

December 2020/January 2021

•

direct organizations to provide individuals access to their personal information in line with principle 6 Disclosing information overseas: New principle 12 to regulate the way personal information can be sent overseas The extraterritorial effect: Any overseas organisation that is ‘carrying on business’ in New Zealand will be subject to the Act’s privacy obligations New criminal offences: Up to $10,000 fine for person impersonating or misleading someone to access the information you are not entitled to see, or organization destroying data after a request is made to access it. Principle 1 Change: Organisations can now only collect identifying information if necessary.

Data classification, Storage and Access control Class

Governmental classification

Non-Governmental Classification

Potential Damage

Top Secret

Confidential / Proprietary

Exceptionally Grave Damage

Secret

Private

Serious Damage

Confidential

Sensitive

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Public

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personal information for a lawful purpose where that data is needed to fulfill that purpose. Collecting or holding personal or organizational data that is not required is not allowed.

People and organisations own their data! It is important to remember you are just a custodian of private information. It is not yours to sell or pass on without explicit permission from the person or organization.

Data classification, Storage, and Access control To keep data safe, you must classify all data to ensure correct handling and storage. Information security professional association (ISC)2 talks about four classes types of data For each data classification above there should be a policy for: • Where data can be stored, given a lot of data is in the cloud do you have to host it in NZ, or can it be anywhere in the world? • Where it is used? • Security and Access controls, who can see the data? • Are audit trails needed for who accessed the data from where and when?

What Personal Information are you holding? Part 3, Principle 1 of the privacy act clearly states you can only collect

By classifying the data and basing policy on each class you can protect your organisation from unintended breaches of the Privacy Act

As you can see, the new act has more enforceable action and fines. This means organisations need to review their current privacy policies and data collection processes to ensure compliance. When conducting a review, consider the following as good privacy practices:

December 2020/January 2021

What data don’t you need to retain? There is a difference in what you need to have to onboard a customer versus maintain a relationship with them. Some considerations are: • Do you need to retain Id documents used and other sensitive data to identify the person/organisation and onboard them? • Do you need to keep personal or sensitive related data to maintain the relationship? • Do you need to retain data for past customers and employees? If you don’t need it, the best practice is to purge it. Retention period of data As per the point above, all personal and other organisations’ data needs to have a prescribed retention period. When you assess and classify data that you hold a good practice is to set a retention period based on how long you need that data. Holding data longer than needed makes any breach event worse than it needs to be The time to act is now. Armed with the information from this article, go through your datasets and identify anything that might be in non-compliance with the new Privacy Act. Ignorance is not a defence. We can see from the GDPR and HIPAA examples, regulators in other jurisdictions have not been shy to use their powers and available enforcement options to ensure compliance. If you are not sure of anything feel free to reach out for in-depth guidance. Our IT security specialists are available to help.

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INDUSTRY

A report from the NZSA Chair In this report, originally published in the NZSA Annual Report for 2019/20, Board Chairperson Brett Wilson highlights the challenges and achievements of the Association over an unprecedented year. The last 12 months has seen a continuation of the good work done by Gary and his team to make the NZSA not only a strong industry voice but an entity that continues to add value to its membership. Putting the impact of Covid-19 aside (comment on that subject has been done to death) the focus of the last 12 months has been very much long term strategic direction and engagement on matters that affect our industry. On the back of another strong financial result the Association has built on the previous years’ initiatives to bring some ideas to fruition and create new initiatives that will have lasting impact on members and the industry as a whole. Highlights for me were: • Continuation of the MSD employment initiative that resulted in 178 employment placements. Special thanks to Andrea Charlton and Napat Pawapootanon for their commitment in making this project a success. • Consolidation of the Special Interest Groups (SIGs) initiative. The SIGs are enabling wide ranging industry input into a number of important areas such as training for example. • The HR Advisory line went live early this year and makes available expert advice which would otherwise not be nearly as cost effective for our SME sized members in particular. The service has been used on average about 15 times per month since its inception. • The 0800 Speak Up line also went live enabling a confidential reporting service that has been

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particularly welcomed by unions and government partners. • The Security Services in New Zealand Good Practice Guidelines was finally signed off by WorkSafe and the Unions to provide an up to date consistent standard for the guarding sector service delivery. • A small group ably driven by former Association Chairperson Doug McCormick continues the often arduous task of working on relevant NZ/AU standards. At the end of last year the Board took part in a day long strategy session facilitated by an outside consultant. One of the key initiatives to come out of this was the commitment to fund (in conjunction with MSD) the development of a Virtual Reality training platform for the mandatory COA unit standards. It was an initiative that was very robustly debated by the board before being approved but at the time of writing is very close to completion. Personally, this is the high point of board initiatives in my time with the Association. One thing that came out of the situation created by Covid-19 was how easily the security industry can be turned into a political scapegoat. We recently found the reason why there are never enough buses in Auckland .... it’s because the politicians were using them all to throw our industry under them. Part of the reason that got traction was the perception (justified or not) of guard staff and their training and competency. I believe that this VR training initiative will not only revolutionise the way industry training is delivered, it will solve

NZSA Chairperson, Brett Wilson

a number of issues encountered particularly in the regions that guard providers have in sourcing staff training. While there have been some detractors it is clear that there is a huge amount of support from guarding service providers. There is no doubt that historically the guarding sector in particular has under delivered in terms of equipping and training our personnel. This initiative provides an opportunity to provide consistent and easily accessible first stage industry training, but this should simply be the starting point not the end. There is massive potential to build upon this project and provide training that could significantly lift the standards of service delivery across the industry. Finally I would like to thank Gary Morrison for another outstanding year as CEO, supported in no small part by Tacia Strawbridge. Also my personal thanks to the rest of the board who once again gave up their time, their energy and their passion to represent all the members of this great industry.

December 2020/January 2021

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INDUSTRY

NZSA CEO’s November Report NZSA CEO Gary Morrison talks Covid-19 Managed Isolation Facilities, new employment rules, MSD Skills for Industry Program, security career pathway website and more. In our last newsletter I commented on the security issues that had occurred at the MIFs (Managed Isolation Facilities) and the resulting negative coverage from the media and ill-founded government announcements with regards to replacing all 500 to 600 private security personnel working at those sites with staff from the armed forces, supported by security staff to be recruited and trained by MBIE.

Gary Morrison is CEO of the New Zealand Security Association (NZSA). A qualified accountant, Gary originally joined Armourguard Security as a junior accountant and held several roles over two decades prior to appointment as GM for New Zealand and Fiji, after which he established Icon Security Group.

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I’m pleased to advise that the number of private security staff at the MIFs has in fact increased since that time (with contracts in place for most sites ensuring service continuity), and the lack of reporting of any incidents seems to indicate that services are being performed to a high standard. I note that Nick Dynon, the highly credentialed and respected Chief Editor for the New Zealand Security Magazine, commented in last month’s magazine that the political announcements appeared to be nothing more than an attempt to distract the media focus from the need for more proactive security measures at the border and without any engagement with the Army or MBIE with regards to their ability to provide the additional resource. I still find it disappointing that politicians can be so indifferent towards the situation of the 500 to 600 workers facing potential redundancy, or the employers who had invested heavily in recruiting and resourcing their staff on the MIF sites. However that is probably the reality of decision making when leading in to an election.

Impact of new employment rules The strong mandate for Labour at the recent election means that some significant employment law changes are likely to be implemented within the next year or two. Labour’s employment policies include: • Raising the minimum wage from $18.90 to $20.00, effective 1 April 2021 • Increase paid sick leave from 5 days to 10 days • Legislate for and implement Fair Pay Agreements (FPAs) with the guarding sector, probably the first industry sector to be implemented (this is on Labour’s first 100-day plan) • Removal of the 90-day clause for new workers • Recognising Matariki as a statutory holiday • Four weeks compulsory redundancy • Providing unions with a stronger presence in the workplace. The NZSA maintains strong relationships with the various government agencies that will be involved in the development and implementation of these policies and we will continue to advocate strongly for the interest of our members. We recently circulated a MBIE survey on the proposed increase in the minimum wage to our members and utilising the returns we received, were able to provide a comprehensive submission to MBIE on behalf of the industry. We are very aware of the potential cost implications associated with many of these policies and will provide more detailed information as the policy detail and timing becomes known.

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for Industry programme and for introducing the security industry to those seeking employment - be it school leavers, those seeking a career change or the newly unemployed through the impact of COVID-19. In addition, we believe it will provide a valuable resource for our members in their recruitment process. Look out for notification of the formal launch and associated social media programme in coming weeks!

MSD Skills for Industry programme Our team of Andrea and Napat continue to achieve fantastic results with close to 200 full-time candidate placements over the last twelve months. We have noted a slowdown in member vacancies over the last two months, probably attributable in part to the confusion over the continuation of the MIF contracts, however we expect a significant boost in vacancy numbers as we head towards the busy Christmas period. Other than a short shutdown between Christmas and New Year, our team will be available to assist with your employment requirements contact either andrea@security.org.nz or napat@security.org.nz to discuss how the programme works and the support payments that we provide to assist with additional training and induction costs. With the pending launch of the careers pathway website (see below) we are very confident of our ability to attract quality workers for our members, and to have our placements fully licensed (at our cost) in the near future through the SkillsVR Virtual Reality Training Platform, which will further benefit members using the placement programme.

It is also worth noting for our members that whilst Labour has announced a Future of Work initiative that will involve a partnership with the unions and one-off placement fees for new appointments, we are confident that this will not compromise or disadvantage our Skills for Industry Programme. Security career pathway website We are pleased to advise that the new website www.careers.co.nz is nearing completion and will go live during November. The website is designed to provide a comprehensive and structured introduction to roles within the security industry and the pathway opportunities for those seeking career progression into more senior positions. The website includes information on the roles, skill set requirements, training requirements and options, indicative pay scales and possible pathways into other sectors or industries. We will also feature short videos of employees in their roles talking about their jobs and what they enjoy most. The inclusion of further videos will be a work in progress as we continue to develop the site content. We view the website as a great support tool for the MSD Skills

Apprenticeship funding for security technician training The government announced a feesfree funding for apprenticeship programmes back in July with the promise that further details would be released shortly after. When the list of approved apprenticeship qualifications was finally released, NZ2767 New Zealand Certificate in Electrotechnology Level 3 was included, however the Level 4 qualification, being the electronic security-specific component, was not listed. This created a high degree of uncertainty with regards to funding coverage and has effectively halted the registration of new apprentices since the approved list was published. We have been working with TEC (Tertiary Education Commission) to get this resolved and have just received confirmation that the New Zealand Certificate in Electronic Security Level 4 has been added to the approved qualification list and that the security technician apprenticeship qualifies for the fees-free funding. This is great news as we have seen a strong uptake in the qualification since the recent rewrite and we are aware that a number of employers have been holding off on new registrations pending clarity on the funding. Unfortunately we have yet to gain approval for the apprenticeship on the Apprenticeship Boost Support Programme through MSD however we are continuing to lobby on behalf of the industry. For more information on the apprenticeship and funding, please contact Carine Vaccari at Shift/ ETEC on admin@shift.org.nz.

INDUSTRY

Annual report from the NZSA CEO In this report, originally published in the NZSA Annual Report for the 2019/20 financial year, NZSA CEO Gary Morrison looks back at an eventful 2020 and looks ahead to the challenges of 2021.

In last year’s report I commented that with continued strong governance of our revenue generating activities and financial performance, the NZSA would be well positioned and resourced to be able to offer our members additional and enhanced benefits from their membership in coming years and to secure our stability and viability in case of future economic uncertainty. Little did I appreciate how relevant those comments would be with the global impact of Covid-19!

Whilst our Annual Report, including the commentaries from both the Chairperson and CEO, correctly must focus on the financial year that finished 31 March 2020, we cannot ignore the immense impact that Covid-19 has wrought across most industry sectors as well as the New Zealand and world-wide societies and economies. Our security industry has responded very well to the pandemic with businesses responding quickly and effectively to changing business demands and ensuring continuity of service expectations. From our surveying we are aware that in excess of 80% of security providers experienced significant revenue loss however from our knowledge there have been minimal business closures or employee lay-offs attributable to Covid-19.

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From member feedback it is also very apparent that the NZSA has provided a valuable role during this period by effectively lobbying government agencies on industry needs (particularly around the determination of essential service providers), providing clear, concise and timely communication to the wider security industry and identifying available resources and support mechanisms for those in need of assistance. Whilst the effects of Covid-19 will unfortunately be very long reaching, we are far better placed than many other industry sectors and the NZSA remains committed to providing our members with continued support and guidance that will ensure the continued growth and development of the security industry. Moving on from Covid-19, the last financial year (April 2019 to March 2020) was very positive for the NZSA, with a number of highlights including: Membership – we achieved membership growth of 18% over the year and from the records available, this is the highest ever achieved. In part this probably reflects a growing awareness of the activities we are engaged in and increased media profile, however, our regional visit programme has also been very successful in enabling engagement on a face to face basis with nonmembers.

Profitability – our profit of $243,724 was the highest in our 48-year history. Whilst we are a Not for Profit, the result places us in a very sound financial position and supports the investment in industry resources such as the Virtual Reality training platform and Industry Career Pathway Website, developments that are nearing launch. MSD Skills for Industry Work Broker Programme – during the last annual contract we placed 178 MSD candidates into full-time employment in the security industry. We also paid out $413,000 to our members in the form of subsidies to assist with training and induction of these employees and an additional $101,500 in milestone payments where the employees remain in long term employment. We are the top performing industry sector in the MSD Skills for Industry programme and have signed a new contract with MSD for the 2020/2021 year based on 200 employee placements. Launch of Security Services Good Practice Guideline – this document was originally recommended in the 2015 Coroners Report into the tragic death of Security Officer Charanpreet Dhaliwal in 2011, where MBIE and WorkSafe were tasked with developing an Industry Approved Code of Practice or Good Practice Guideline. Unfortunately,

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these agencies cited other priorities as taking preference and it required the NZSA taking ownership for preparing this document. The Security Services Good Practice Guideline was launched early this year and is recognised as the standard for all companies operating in the guarding and security patrol sectors. Copies of the guideline can be downloaded from the NZSA website (www. security.org.nz) and the PSPLA refers all new company license applicants to the document on the NZSA website. Following the launch, we have formed a working group focused on developing an Event Security section which will be included in the guideline in coming months. Similar working groups will be formed next year to develop additional sections for other industry sectors such as Hospital Security and Cash- InTransit Services. Launch of additional Member Benefit Programmes – over the last year we have launched three new member benefit programmes: • HR Advisory Service – this service is free to members and provides immediate access to advice from HR experts and the

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ability to source template HR documentation including contracts and policies. • 0800 Speak-Up/Integrity Line – again this service is free to members and provides a fully confidential reporting line for employees. • Uniform and equipment supplies – our programme with Tactical Solutions provides a 10% discount on the purchase price for all NZSA members. • Industry Training – with the ROVE (Review of Vocational Education) process creating significant change to the training landscape, there have been a number of challenges in maintaining progress on the development of industry NZQA qualifications. The NZSA Training and Professional Development Special Interest Group (SIG) – has been a valuable resource in ensuring appropriate focus and pressure on all stakeholders to ensure that we have industry qualifications that are current, relevant and ‘fit for purpose’. Whist delivery of training resources for the new Level 3 and 4 New Zealand Certificate in Security

have been delayed, we remain confident that these will be available in the near future and that training outcomes will be improved with the new qualifications and training materials. Whilst it is pleasing to report on such positive developments, as noted in my introductory comments Covid-19 will continue to provide challenges for us as an industry and there are other hurdles that we will need to face. At the time of writing my report the election has yet to occur however it appears very likely that business owners will be faced with covering an additional five days per annum sick leave allowance and significant increases to the minimum wage and the guarding sector will in likelihood move to mandated Fair Payment Agreements. We are already engaged in consultation with the relevant government agencies on these matters and will continue to act in the best interests of our members. I remain very confident that the NZSA is recognised as the industry peak body and has the credibility and support of all stakeholders to be the true voice for the industry going forward.

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INDUSTRY

ASIS International Announces 2021 Global Board of Directors ASIS International, the international association for security management professionals, has announced the directors for its 2021 Global Board.

ASIS’ Global Board of Directors, first installed in 2020, is a major step in the association’s transition to a new global governance structure that allows it to better provide service to its members at the local, regional, and global levels.

Global Board director Timothy M. McCreight CPP of Canada was selected by the board to serve as Secretary-Treasurer in 2021. McCreight joins President John A. Petruzzi Jr. CPP of the United States, PresidentElect Malcolm C. Smith CPP of Qatar, and ASIS Chief Executive Officer Peter J. O’Neil on the 2021 Global Board Executive Committee. The security leaders selected for three-year At Large Director terms beginning in 2021 include Pablo Colombres CPP of Brazil, Joe M. Olivarez, Jr. of the United States, Axel Petri of Germany, and Eddie Sorrells CPP PCI PSP of the United States. Colombres will be serving a second term as At Large Director Chiko Scozzafava of the United States was selected to serve the remaining year of McCreight’s At Large term on the Global Board. The new directors of the Global Board were selected in October 2020 by a Nominating Committee comprised of 2019 ASIS President Christina Duffey CPP, McCreight and fellow Global Board member Jaime P. Owens CPP, and member-elected representatives Melissa Mack CPP, Gary L. Miller CPP PCI PSP, and Werner Cooreman CPP PSP. The committee evaluated candidates according to core ASIS values and competencies—including management experience, knowledge of ASIS and the security profession, strategy development and visionary thinking, leadership skills, and cultural intelligence. The global board approved the new director slate on 10 November. Continuing as an At Large director from the 2020 Global Board is Malcolm B. Reid CPP of the United States. Serving as ex-officio representatives to the 2021 Global Board are leaders from various ASIS volunteer groups, namely: Scott A. Lowther CPP PCI representing the CSO Center Board (voting member), Cy A. Oatridge CPP representing the ASIS Foundation Board of Trustees (voting

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member, Bernard D. Greenawalt CPP representing the Professional Standards Board (non-voting member), and Kristiina Mellin CPP PCI PSP representing the Professional Certification Board (non-voting member). Regional Boards In 2022, ASIS will establish regional boards to support members in Europe and North America. And, after that, every region around the globe. When fully implemented, each regional board will assume a seat on the Global Board. To learn more about the ASIS global governance initiative and 2021 Global Board of Directors, visit asisonline.org/GlobalGovernance. About ASIS International Founded in 1955, ASIS International is the world’s largest membership organisation for security management professionals. With hundreds of chapters across the globe, ASIS is recognised as the premier source for learning, networking, standards, and research. Through its board certifications, award-winning Security Management magazine, and Global Security Exchange—the most influential event in the profession— ASIS ensures its members and the security community have access to the intelligence and resources necessary to protect their people, property, and information assets. Learn more about the work we do at www.asisonline.org.

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INDUSTRY

Security Training and Professional Development SIG The NZSA Special Interest Group for Training and Professional Development has had a big year. Chairperson Andy Gollings reflects on a productive 2020. A key objective of this group is to support the development of a professional industry that offers training, career pathways and opportunities. It has been recognised for some time that the security industry has some challenges. We have struggled for recognition as a valued service and therefore have struggled to be a valued vocation across New Zealand.

This unfortunately is almost selffulfilling as if we struggle to attract the right people to our industry we will struggle to improve the levels of service and therefore that value that we are perceived as providing.

Training SIG Chair Andy Gollings

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2020 could eventually provide us with a real catalyst for change. Our industry stepped up and provided much needed reassurance during the various alert levels and to help protect our border at the Managed Isolation Facilities. The fact that our industry could offer much needed employment at a difficult time for many has also allowed the industry to attract people who may have never considered this sector otherwise. On top of the events above, 2020 has also seen the refresh of the training for the Certificate of Approval, and the establishment of a new NZ Certificate in Security Levels 3 and 4 with the Level 2 resources being developed on our behalf by the Skills Organisation. These resources will be available by the second quarter of 2021. We have also seen some real traction for the NZ Certificate in Electronic Security and the introduction of a qualification for call centre and monitoring centre personnel. NZSA and Skills have supported a mandatory refresher training for our Conflict Management Trainers across the country, which should address some of the previous inconsistencies of this training. They also hold a register of these approved trainers and these people are the only trainers that are approved to deliver conflict management training to security officers for the COA. If you donâ&#x20AC;&#x2122;t know if your trainer is approved, you should be checking this list on the Skills website.

Another initiative that has the potential to provide real value is the MSD/NZSA initiative to embrace virtual reality training. This approach is certain to improve the consistency and availability of training across the country. It also has the potential to simulate situations, in a safe environment, to test and develop appropriate responses from trainees. In progress currently is the development of a website that outlines career opportunity, training requirements and progression within the industry. This is designed to show potential employees the opportunities that exist within our industry and could also be a great vehicle to inform industry and our customers of the opportunities that exist for us to develop our services and our personnel. There are many training opportunities that either exist now, or are in stages of development. If you have questions I invite you to reach out to myself or the NZSA. We need to work as an industry to make use of these opportunities and demand higher standards of each other. As an industry we operate in a position of trust and we need to work together to improve our standards of professionalism so that we can continue to operate in this position and provide the security and assurance that our communities require.

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GOVERNMENT

New Minister for Justice Portfolio In the post-election ministerial line-up, Aupito William Sio retains the Justice Associate Minister role, while Kris Faafoi replaces Andrew Little to become New Zealand’s 50th Minister of Justice. Following the Labour party’s landslide election victory, Aupito William Sio has picked up the role of Minister for Courts while retaining the Justice Associate Minister role he’s held since 26 October 2017.

Sio has also retained his Pacific Peoples ministerial portfolio while adding foreign affairs, education (Pacific Peoples), and health (Pacific Peoples) to his list of associate portfolios. Kris Faafoi is now Minister of Justice in addition to his roles as Minister of Immigration and Minister of Broadcasting and Media. Faafoi was elected as the Member of Parliament for Mana in November

New Zealand’s Minister of Justice, Hon Kris Faafoi.

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2010, following more than a decade working as a journalist at both TVNZ and the BBC. He had also served as chief press secretary for the then Labour leader Phil Goff. After the resignation of Mana MP Luamanuvao Winnie Laban on 10 August 2010, Faafoi represented Labour in the resulting by-election, which he won, becoming the first MP of Tokelauan descent. Faafoi became Minister of Civil Defence, Commerce and Consumer Affairs and Associate Minister of Immigration in October 2017. He assumed the Customs portfolio in August 2018 after Minister of Customs Meka Whaitiri stood aside over a ‘staffing matter’. On 7 September 2018, he was appointed Minister of Broadcasting, Communications and Digital Media upon the resignation of Clare Curran. On 27 June 2019, Faafoi was appointed Minister of Government Digital Services. He also assumed the position of Associate Minister for Public Housing, and relinquished his position as Minister of Civil Defence and Minister of Customs. On 22 July, he became Minister of Immigration after Iain Lees-Galloway was dismissed following admission of an inappropriate relationship with a former staffer. According to Pacific Media Network, Minister Faafoi says he will provide a different perspective to the Justice portfolio. “The fact that we’ve got a Maori corrections minister [Kelvin Davis], a Cook Island police minister [Poto

Williams] and a Tokelauean justice minister, I think we’ll bring a unique perspective to that because we’re really sick and tired of seeing our friends and whanau being overrepresented in those spheres,” he told PMI. “It’s time to make sure that we do all the long-term stuff to make sure that if they are going through, they come through the system better people.” In his maiden speech in parliament, Faafoi commented that the Tokelauan custom of inati— sharing on the basis of need—is something that is ingrained in his DNA. “I saw it first hand in 2003 on my first visit to Tokelau,” he said. “The men of the village set a large net to catch fish for all the families. It was then divided up to ensure that no family would go without.” As Immigration Minister, Faafoi recently announced that from January 2021, up to 2,000 experienced seasonal workers from the Pacific will be able to travel to New Zealand to address labour shortages in the horticulture and wine growing sectors. Under the arrangements, employers are required to pay the workers at least $22.10 per hour (living wage), and the equivalent of 30 hours work per week while in managed isolation. Meanwhile, the majority of New Zealand’s front line security guards are being paid at or around the minimum wage ($18.90).

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Rethinking Retail Traditional thinking is the eCommerce is good for loss prevention, but the acceleration of multi-channel retail in the wake of COVID-19 is disproving that assumption, writes Sara Mosqueda in ASIS International’s Security Technology magazine.

Sara Mosqueda is Associate Editor of ASIS International’ Security Management magazine. She has previously worked as a freelance reporter and copy editor, natural gas journalist and daily newspaper reporter.

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Every November in the United States, the busiest shopping day of the year rolls around: Black Friday. In previous years, the day after Thanksgiving often evoked the image of bleary-eyed, keyed-up shoppers waiting in line outside stores in the early morning hours, ready to stampede into malls to hunt down the best deals. But in recent years, the singleday shopping spree expanded into a long weekend of sales, including—with the advent of Cyber Monday—a growing shift to eCommerce. Online sales hit a new record for that weekend in 2019, according to the National Retail Federation (NRF). “For the first time, Black Friday topped Cyber Monday as the busiest day for online at 93.2 million shoppers compared with 83.3 million,” the NRF found in its 2019 survey of Black Friday. The 2019 Black Friday holiday weekend resulted in online sales generating $7.4 billion. And while 124 million people visited brickand-mortar stores throughout those four days (with Friday remaining the busiest day), 142.2 million shoppers used retailers’ websites to take advantage of sales, and 75.7 million did both. A little more than three months after 2019’s record-breaking Black Friday, with winter holidays disappearing from the rearview mirror, local authorities in King

County, Washington, issued the first recommendation for people in vulnerable groups to stay home in an attempt to tamp down the spread of COVID-19. Since then, a total of 42 U.S. states and Washington, D.C., have issued stay-at-home orders as the coronavirus grew into a global pandemic. State and national authorities urged employers to allow for remote work where possible and asked the public to leave their homes or neighbourhoods only if necessary. As a result, many people’s personal and professional lives were further pushed online, and shopping was no exception as consumers sought ways to limit potential sources of exposure. The NRF reported in August that the pandemic accelerated interest in online shopping, but research also found that retailers were adapting to address concerns around the coronavirus, including blending online and offline channels through curbside pickup or personal shopper services. However, these shifts in buying habits and business operations are also linked to evolving risks. The NRF’s 2020 National Retail Security Survey attempts to measure total retail shrink, including fraud, theft (both internal and external), and other sources of retail loss. Although the report was based on fiscal year 2019 loss prevention data collected from 69 U.S. retailers, the survey was conducted while stores and other businesses were ordered to shut down in response to the pandemic.

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The survey found that Black Friday was not the only recordbreaker in 2019—shrink cost the industry $61.7 billion. Although on a granular level this amounted to roughly 1.62 percent of total sales, the percentage is still an increase from 1.4 percent in 2018. While demands for flexible and safe shopping methods have risen in response to pandemic measures, loss prevention leaders are facing a shift in major sources of shrink. “Overall, risk is becoming more of a priority to retailers, and that cuts a broad swath: eCommerce, return fraud, and internal hazards,” according to the survey’s authors. “All areas have seen increases in prioritisation from retailers, particularly in organised retail crime, cybercrime, and eCommerce fraud.” When it came to what respondents planned to prioritize for the next five years, the majority said they would invest in remote monitoring technology, upgraded point-ofsale (POS) systems and exception reporting, and refund history tracking programs. This last tool could help in eCommerce operations, where loss can be difficult to fully measure. In theory, eCommerce should reduce traditional sources of shrink, such as shoplifting, organised retail crime (ORC), and internal theft. However, experts say the supply chain complexity created by online sales has resulted in a growing area of loss. As more and more people resort to online shopping for a range of items,

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from lounge clothes to groceries, retailers become divided into the haves and have-nots. Some businesses have dedicated resources to honing the eCommerce facet of their business. But other organizations, especially traditional big-box stores, have focused on attracting customers into their physical sites, so their eCommerce presence at the start of 2020 was sometimes built on top of the existing organisation—not integrated into it. “And that makes it very difficult to manage these eCommerce systems because actually the system wasn’t designed to run eCommerce,” says Adrian Beck, emeritus professor of criminology at the University of Leicester. Beck notes that part of the difficulty lies in how complex supply chains have become for such retailers. On the customer’s end, it’s simple— an online order involves a click of the mouse or a tap on a touchscreen. However, the company is then tasked with shipping the product from a store or distribution center that could be thousands of miles away, and ensuring its safe delivery to the customer by at least one external party—the postal system. The transaction becomes further complicated if the customer decides to return his or her purchase by mailing it back to a central distribution center. “It’s quite difficult to track it because of the nature of the beast,” Beck says. Compared to the simplicity

of entering a store to purchase or return an item, such circuitous and complicated supply chains can make it very difficult to pinpoint where, when, and why losses may happen, Beck adds. While overall typical risks that contribute to retail losses are reduced through eCommerce, overall fraud becomes increasingly possible. Loss in these instances could stem from myriad issues, such as purchases made with a stolen credit card, customers fraudulently claiming they never received their purchase, or even telling the customer to keep an unwanted or defective item while still giving a refund or sending a replacement. ECommerce retailers must also contend with insider threats. As demand for online shopping rapidly increased in 2020, retailers looked to quickly fill new positions to meet their needs. Not unexpectedly when a large number of people are being onboarded, issues arose in both properly training new personnel and hiring unsuitable staff—potentially resulting in errors that could impact loss prevention. “I’ve seen this in my interviews with senior loss prevention managers,” Beck says. “They’ve now got a group of staff that have been rushed into a business and asked to do tasks that perhaps they haven’t been trained for as well as they would like them to be.” Another notable issue with online shopping is the amount of returns

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the process can generate, especially for clothes and accessories. In its 2019 Consumer Returns in the Retail Industry report, software company Appriss Retail found that the total of returned merchandise throughout the year in the United States was valued at $309 billion, with $41 billion of that stemming from online purchases. Beck recalls working with one German retailer that reported that 40 percent of its merchandise was returned. “They have got to have an incredibly efficient reverse logistic to manage that flow of products,” Beck says. This is because beyond the convenience of offering customers free shipping for returns, returned merchandise presents a wide swath of risks. “When people say there’s tons of money to be made on eCommerce, well, potentially,” Beck says. “But there are also a lot of extra costs that you need to think about as a retailer when you decide to go into the e-world, because there’s a lot of extra labour that’s required that perhaps isn’t factored in.” With a return, not only is the initial sale lost, but the profit margin percentage of the product can be further reduced depending on the condition of the item when it’s returned to the retailer. Returns also require additional labour because the product will need to be inspected, restocked, and sometimes repackaged, generating additional reverse logistics. Consumer Returns in the Retail Industry also noted that roughly half of online returns cannot be resold, even at a discounted price. With returns and the associated intricate supply chain, “you need to be ready for that, to be able to process it, and understand the costs associated with it,” Beck says. “You’ve got to be really well-organized.” Part of the organisation and grasp of this supply chain comes from educating a retailer on what the risks are in an eCommerce world. An understanding of this risk landscape, paired with a way to accurately measure the risks, can help loss prevention specialists quantify what

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the landscape looks like, Beck says. “The second piece then is to say, ‘Have you got the data systems in place in your organisations to measure what these losses are?’ And that’s not easy,” Beck adds. With complicated eCommerce supply chains, inventory systems may encounter stumbling blocks when tracking outgoing and returning merchandise that can be shipped and distributed to and from disparate locations. “Systems weren’t designed for that fluidity,” Beck notes, especially systems that were built on top of traditional brick-and-mortar stores. Retailers should consider implementing data systems that can provide that flexibility and measure these adaptive risks. “If you can’t measure it, you can’t manage it.” Although losses from returns are not entirely malicious or criminal in nature, they still present a threat to retailers. Annual losses from return fraud in the United States climbed up to $27 billion in 2019, a 35 percent increase from 2018, as reported in Consumer Returns in the Retail Industry. Another risk with returns occurs in-store. “BORIS (buy-online-return-instore) return fraud is $1.6 billion compared to $0.45 billion for nonstore locations,” the report authors said. But Beck notes that non-malicious risks can also present a significant loss in the eCommerce supply chain because they can be harder to pinpoint unless someone asks the right questions. A company Beck worked with realised it had a significant problem with product pickers’ errors, which would not only result in a return, but could ultimately lead to it losing customers altogether. In situations where human error comes into play, there can be immense value in going beyond ascribing the loss to shrink and instead trying to find the glitch in the system—whether it’s a single employee or an environment that allows for easy mistakes to be made. “It could be that they need to be much more nimble in thinking about

what the problems are and how to fix them, and the need to be less myopic in thinking only about malicious problems,” Beck says. “It’s still a loss, whether it’s due to the organisation’s mistake or a thief coming in… So, open your mind in terms of the cause of the loss, and then open your mind in terms of how to try and fix it.” The Cost of Convenience It’s been on the minds of retailers for years: How to compete with Amazon? “Because consumers are exercising the many choices available today, there is great pressure on retailers to make more products available in more ways,” according to the authors of a Retail Systems Research benchmark report, BOPIS & BORIS: Good or Bad for Retailers? With the online retailer offering its hundreds of millions of Amazon Prime subscribers free twoday shipping, the competition looked to blended in-store–online methods to continue attracting shoppers to their respective brands, creating the relatively new field of omnichannel or multichannel retail. Add in the compulsion to socially distance during the COVID-19 pandemic, and retailers found that multichannel sales had the potential for long-term success. Target, for example, reported that the surge in demand online and in stores made the average day in April 2020 comparable to a blockbuster Cyber Monday sale, relying on its physical stores to fill 80 percent of its online sales. Demand for same-day services, such as picking up an online purchase at a physical store, nearly tripled in the retailer’s first quarter. However, the National Retail Federation (NRF) 2020 National Retail Security Survey found that multichannel sales are a growing area of concern for loss prevention, and although the greatest increase of fraud was from in-store sales, multi channel fraud is on the rise. While some newly added services make multichannel shopping convenient, they also add risk. Buy-online/pick-up-in-stores (BOPIS). Alternatively known as

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click-and-collect, this method allows retailers to lure customers back into stores. It also can provide an added level of convenience as an alternative to shipping—because packages can get sent to a wrong address or stolen from doorsteps—and shipping fees for both the seller and the buyer. According to an NRF consumer flash poll in April 2020, 50 percent of respondents used BOPIS because of COVID-19, and 25 percent opted for BOPIS more than once. In the National Retail Security Survey, more than 53 percent of retailers reported that they have made return fraud, including from BOPIS, more of a priority within the last five years. Curbside pickup. This other form of BOPIS enables consumers to practice social distancing while minimizing risk for the retailer. According to the NRF, more than 90 percent of consumers said it was convenient. Setting up curbside pickup sometimes involves little more

investment than placing traffic cones in the parking lot and walking purchased merchandise out to shoppers’ vehicles. If retailers plan to make the offering permanent, however, additional infrastructure such as a robust point-of-sale system, accurate inventory management, designated parking spaces, bollards or barriers, and dedicated staff to manage curbside deliveries may be required. Buy-online/return-in-store (BORIS). Although this method still brings customers into stores and avoids issues and additional costs associated with shipping returns, a return is still a lost sale—reducing cash, profits, and margin percentage. And while this method already offers shoppers convenience, according to Appriss’s 2019 Consumer Return in the Retail Industry report, BORIS returns are prompting additional demands, such as “frictionless” or “hassle-free” returns. The upside to a return, especially one handled in-store, is the

opportunity to directly interact with customers and create a relationship between the brand and its clients. The downside is that malicious actors may find opportunity in this channel—as some retailers offer more flexible or lenient returns, it could allow for more return fraud or abuse of this system. Examples of return fraud that take advantage of BORIS services include returns using counterfeit receipts or e-receipts, return of products bought with stolen credit cards or gift cards, wardrobing or renting, and more. According to the Consumer Returns in the Retail Industry report, the amount of BORIS returns in 2019 amounted to approximately $20 billion, while fraudulent BORIS returns resulted in $1.6 billion worth of losses. Overall, return fraud was reported to have increased during 2019, with annual losses estimated at a total of $27 billion, a 35 percent increase from the previous year.

December 2020/January 2021

NZSM

Malicious cyber activity in the COVID-19 era Steve Honiss, Director at Aardwolf Consulting and Senior Fellow at the Azure Forum for Contemporary Security Strategy, writes that COVID impacts and the rush for a vaccine have fuelled a rush of state-sponsored cyber incursions. It is fair to say that aside from the health impact of COVID-19, the wider impact of the pandemic is something that has never been seen before.

In a hyperconnected world, where national economies are experiencing downturn or recession, populations are suffering illness and fear of death, and people are looking to their governments for leadership, it is hardly surprising that the resources of governments are being focused on finding prophylaxis, treatment, or cure for the virus. This is being manifested through the significant and urgent efforts being undertaken by universities, pharmaceutical and vaccine researchers, government health organisations, and other R&D

Steve Honiss is a Director at Aardwolf Consulting.

NZSM

entities. There are vast sums of money being dedicated to this activity. Large pharmaceutical companies, who by nature are traditionally competitors, are now working together in pursuit of the cause. The threat landscape Google’s Threat Analysis Group (TAG) has been closely monitoring state-sponsored threat groups carrying out COVID-related espionage. In July, the US Department of Justice indicted two Chinese hackers associated with the WICKED PANDA threat group and charged them with carrying out cyber activity against a range of Western assets. These actions were reportedly carried out both in their own interests and also at the behest of the Chinese Ministry of State Security. Amongst other crimes, the pair are charged with targeting US organisations involved in developing COVID-19 testing, anti-viral treatments, or vaccinations, on behalf of the Chinese government. The hacker group known as COZY BEAR, linked with high certainty to Russia’s Foreign Intelligence Service, the SVR, has been accused of targeting vaccine research networks in the US, UK, and Canada. This activity is said to have focused on the vaccine development work being carried out jointly by Oxford University and AstraZeneca.

Likely South Korean APT group Darkhotel is believed to be responsible for a series of sophisticated attacks against the World Health Organisation (WHO). The WHO makes a very attractive target for threat actors because of the possibility that it holds unreleased information about virus testing, cure, vaccine research progress. Gaining any sort of foothold within the WHO network would be a valuable outcome for an APT group. Vietnam linked threat group OCEANLOTUS has been accused of conducting campaigns against Chinese government organisations, including China’s Ministry of Emergency Management, as well as Wuhan-based government officials. In addition to these, Iranian and South American threat groups have also reportedly been identified carrying out cyber activity related to COVID-19. All told, the Google TAG is tracking no less than 12 APT groups undertaking COVID related activity. Like much cyber activity, these campaigns targeting bio-tech entities and government agencies have not been particularly sophisticated – but the fact is that attacks don’t always need to be sophisticated to be successful. Well-crafted phishing emails, carefully mimicked domains, and enticing lures are often all it takes to obtain account credentials that frequently provide attackers with their first access point.

December 2020/January 2021

Alternatively, similar techniques may be used to entice a user to unwittingly download or execute a malicious application that provides technical access to the victim network. In April, investigative journalist and security researcher Brian Krebs wrote about the huge increase in new domain registrations featuring the keywords coronavirus or Covid-19 in the weeks around the beginning of the pandemic. One security researcher reported that these sorts of domains were being created at the rate of 2,000 per day at the height of the activity. A significant proportion of these will have been used for malicious purposes. Commentary It is difficult to find any aspect of our governments and economies that are not reliant to some degree on technology and the Internet. Even in the years pre-COVID we saw regular public reporting of nation states being called out for hostile cyber activities. It is not unreasonable to believe that what was reported publicly then was only the tip of the iceberg, and that in reality there is a constant unseen war being waged by those states that have offensive cyber

December 2020/January 2021

capabilities â&#x20AC;&#x201C; or at least have the will and ability to pay for it. This sort of activity has a range of motivations, including obtaining state secrets, financial bargaining positions, defence policy and plans, material to use for blackmail, academic research, R&D and other valuable intellectual property; destruction and disruption; and, in some cases, fundraising efforts to support national economies. In addition to this normal level of cyber espionage, the global impact of COVID-19 on health, public confidence and way of life, working situations and employment, and economies in general has provided a new and fertile ground for malicious cyber activity to take place. There has been a real flurry of compromises and other malicious activity that has connections in one form or another with the pandemic. There are three likely main motivations for this: (i) traditional financially motivated cybercrime, (ii) state-backed espionage, and (iii) corporate or economic espionage: (i) Cybercrime actors are attempting to steal intellectual property and other secrets with a pure financial motivation. They want to sell what they find to the highest bidder, or they could

undertake ransomware attacks in order to hold secrets to ransom. (ii) The pandemic is having wideranging effects on economies, and countries are concerned. States, it appears, are prepared to carry out unlawful activity, potentially in violation of bilateral or multilateral agreements, for economic reasons. (iii) It stands to reason that whoever wins the race to develop a safe and effective vaccine stands to make potentially massive profits. Paying state-level hacking groups to attempt to copy the oppositionâ&#x20AC;&#x2122;s homework seems a reasonable investment. Implications It is hard to say what the implications of this increased activity will play out to be. Cyber espionage is not a new thing, itâ&#x20AC;&#x2122;s just that COVID-related espionage is a hot topic right now. Cyber espionage has become a new arms race. Instead of the race for bigger and more destructive kinetic or nuclear weapons, countries are building bigger and more skilled offensive (and defensive) cyber

NZSM

capabilities. There are clear signs that countries are engaging their national defensive capabilities in support of protecting COVID research and vaccine developments. The bigger question perhaps is what is the real end goal here: • Is it simply a question of the states trying to get hold of research so they can advance their own vaccine production efforts? • Is it a case of states just attempting to identify who is furthest along the development path in order to support their vaccine nationalism agenda? • Is it an attempt to just have good intelligence on which to base planning for their ongoing pandemic response? Responses by states Over recent years we have seen agreements and treaties executed that have the intention of at least reducing state-sanctioned cyber activities. They have had questionable effect. The US Department of Justice has not infrequently indicted individuals

NZSM

who they accuse of computer crime on behalf of countries such as China, Russia and Iran. These have been, in my view, largely symbolic acts. Public denunciation of attack campaigns where strong attribution has been carried out are also not uncommon, but to what effect? They send a message to perpetrators that they have been caught, but it would be naive to believe that they have a great impact in terms of curtailing the malevolent behaviour. These tend to amount to little more than political statements. The standard practical measures ought to be taken. States should be investing national resources in shoring up their defences and supporting holders of valuable research and intellectual property. Perhaps some might engage in active defence measures or return fire. Information owners and governments need to raise the cost of attackers doing business to a level where the return on investment becomes questionable. Policy response options have not

had great effect. When dealing with threat actors supported by major world powers, it’s my view that a public telling off is unlikely to change behaviour significantly. In the case of a perpetrator state already subject to global sanctions, there are minimal options to consider. Agreements to not behave badly in cyberspace are only going to be adhered to by states that are either not doing it in the first place or are confident that they can continue without either being caught or retaliated against. In conclusion, COVID-19 has provided a rich environment for countries with capability to put those capabilities to use in their own national interests to mitigate the impacts of the virus. Past and present behaviours would tend to indicate that this will continue and become part of the new normal. Making the task too hard, too expensive, or too time consuming may be the most reliable option for defending against malicious cyber activity in the COVID era.

December 2020/January 2021

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New Zealand Security Magazine - December 2020-January 20201

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Rethinking Retail

New Minister for Justice Portfolio

Security Training and Professional Development SIG

ASIS International Announces 2021 Global Board of Directors

A report from the NZSA Chair

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Annual report from the NZSA CEO

NZSA CEO’s November Report

Securing medicinal cannabis

Inner Range Bolsters Cyber Security with NIST Certification

Security Industry Training 2020: Post Covid- 19

Busted! Stories from New Zealand’s leading private investigator

Women in Security Awards Aotearoa: The Winners

Gallagher delivers latest technology to market

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