Technology in the Fight Against Equipment Theft
March 2003
Technology can be used to fight crime, but
there are cost/benefit considerations for each of these technologies. Analyze
your environment and determine whether you want to detect or deter thieves.
Are two layers of protection better than one? What is the real cost? Consider
ignition locks, inventory marking systems, and tracking devices.
by David J. Shillingford
National Equipment
Register, Inc.
This is the fourth and final article in a series that deals with the growing
problem of heavy equipment theft and what owners and risk managers can do to
reduce the costs associated with equipment theft. Part 1 of this series discussed the
size and nature of the problem and how to align theft prevention with business
goals. Part 2 described simple physical
measures that can be taken to prevent theft. Part 3 looked at how information can
be used to deter and detect theft.
This article considers ways in which new technologies can be used to fight
equipment crime and the factors to consider when weighing the cost and benefit
of these technologies. Some of the factors that will help you assess your own
environment as it relates to theft will be introduced along with available antitheft
technology. Rather than a review of specific products, the analysis looks at
different technologies and which factors play the greatest part in their effectiveness.
The article ends with some additional considerations that relate to the overall
cost of a product.
Analyze Your Environment
The initial analysis of your circumstances should look at what type of equipment
you have and how and where is it used. If your equipment, or certain pieces,
is in a remote location that is difficult to secure, e.g., highway maintenance,
at weekends or at night when most equipment is stolen, then your solution must
focus on the equipment as well as the work site. The technologies discussed
below are generally used on equipment rather than premises. (See Part 2 of this series for premises
recommendations.)
The next step is to assess whether some equipment is higher risk than others.
A good target for a thief is something that is mobile and relatively high value—skid
steers are a good example and top of the list of the 10 Most Stolen Items. Another factor to consider is whether or not you think
that you suffer from employee theft or theft by outsiders assisted by employees.
This will affect decisions on devices that rely on the action of employees.
Your general geographic location may also have an effect on what type of technology
best suits you and which machines it is used on.
To Deter or Detect?
One way of broadly categorizing security devices is whether the device deters
or detects theft—or both. In an ideal world, we would deter all thefts. But
in reality, this is impossible. Deterrence, like detection, is only measured
in degrees. The key to deterrence is to ensure that of similar targets for a
thief, yours are the best protected and that this is clear to the thief. Devices
that detect a theft may be said to "generally" deter theft by the mere fact
that they exist, but if a thief does not know that a certain technology is employed
whilst in the act of considering a theft, the device does not really deter.
As will be discussed in more detail later, the role of law enforcement in detection
is important as an item cannot, or should not, be recovered without some involvement
by law enforcement.
General Factors
There are some general questions that can be asked regardless of what technology
is employed.
Does the device rely on the action of employees such
as fitting or setting a device daily? If so, how complex is this, and
how can it be monitored? These kinds of devices are only as effective as those
responsible for their activation and is accentuated by any concern over employee
involvement in thefts. One of the advantages of many of the new technologies
is that control of the device is remote and in the hands of a limited number
of accountable employees.
How easily can the device be located and disabled
by a thief? This applies across the board but is often a key consideration
when looking at tracking devices and will be discussed further below.
Does the unit have other uses? An example is
safety. Some devices may help with safety, such as a remote monitoring device
that can give early warning of system failures. It is also possible for a device
to pose a safety risk such as a device that immobilizes part of a machine other
than the ignition which, if not disabled properly, could damage equipment or
even injure an employee. However, if the device does have other uses, it is
worth considering whether combating theft is its primary use; if it is not,
then it should be bought for this use with the knowledge that it may help prevent
or detect theft.
Is the device factory fitted? If it is, it
is more likely to be concealed or better integrated into the overall design
of the machine but may be an item for which the primary use is not combating
theft.
Has the device been proven in combating other types
of property theft such as autos? If it has, then there will be a track
record that can be part of your analysis, but beware—just because a device works
well on a car does not necessarily mean that it will work well on equipment.
Factors such as the time it takes to discover a theft, the remoteness of work
sites, and the "wear and tear" that a unit is subjected to are a few examples
of differences for off-road vehicles.
Three technologies being employed to combat equipment theft are ignition
locks, inventory management and marking systems, and tracking devices.
Ignition Locks
There are two systems of ignition locks generally used: the "smart" key and
keypad ignition. The smart key is an electronic key with a unique digital ID
that must match the machine to start it and is usually reprogrammable. In some
products, the digital ID can be programmed for more than one piece of equipment
or for limited time periods. A keypad ignition works through a code being programmed
into the machine’s ignition system that must be reentered to start the machine.
Most devices allow a number of codes to be programmed into the system, allowing
a number of employees to have access to that machine.
The use of this technology in heavy equipment varies from autos because equipment
owners need the flexibility to be able to change who has access to the equipment,
whereas the code or key for an auto can be more closely controlled. This means
that the system you buy should be flexible but also one that allows close control
and monitoring.
Another important difference between autos and equipment is that the ignition
system in a car tends to be encased, whereas this may not be the case with equipment.
Look carefully at the ability that a thief may have to bypass the ignition security
and "hotwire" the equipment. This is an example of where a factory-fitted system
may have an advantage over an after-market device.
Inventory Management and Marking Systems
The previous article explained
the importance of recording as much information as possible about your equipment
so that a full and accurate police report can be filed if a theft occurs. Inventory
management and marking systems take this concept a step further and can be cost
effective and powerful as both a deterrent and to recover equipment.
An inventory management system will enhance your ability to accurately track
your equipment by serial number and allow an accurate police report to be filed,
but this can be turned into a powerful detection tool if this information is
stored on a national database that law enforcement uses around the clock to
confirm the true owner of suspicious equipment. Be sure to ask what measures
are taken to keep your data secure.
This can be further enhanced to act as a deterrent if a decal is added to
the equipment to clearly tell the thief that the equipment is registered and
that the chances of detection whilst handling the equipment are greater. Although
it may make the equipment harder to sell and more likely to become the subject
of police scrutiny, a determined thief might remove the decal and any other
visible identifying numbers. For this reason, owners should also consider stamping
a hidden ID number onto the equipment or employing "invisible" marking technology.
Technologies such as DNA marking, molecular marking, and microdots have been
developed to "invisibly" (that is, invisible to the naked eye) mark property.
The technology that is used will determine what type of information is recorded
and what type of device is needed to read the mark. The primary use for this
technology is identification and authentication rather than the location of
the asset because if the marking is invisible to the thief, it is also invisible
to a police officer.
Scanners that use ultraviolet light, magnification, magnetism and lasers
to quickly scan surfaces for markings go some way to meeting this challenge,
although this still relies on officers to know to look in the first place and
to have the appropriate device to hand. This will improve as certain marking
technologies become more widely used. Microdot technology is widely used in
the motorcycle industry although bikes have a clear advantage over equipment
as there is a limit to the number of places that an officer may have to look
or the amount of dirt that may be covering the mark.
Once the marking has been read, an officer needs some way of linking the
mark to an owner. This will be most efficient where marks and owners can be
matched on a central, secure, national database accessible to law enforcement
24 hours a day. In most cases, it is impossible for a thief to fully remove
the mark, which means that a decal warning can be posted—a powerful deterrent.
Tracking Devices
This is a technology that has been used successfully in the detection of
auto theft. But does it work on equipment? Although the employment of these
devices on equipment is in its infancy, the technology does work although the
degree to which it does depends upon what the device is designed to do and how
it overcomes some challenges that are specific to off-road equipment.
A point of some debate is whether or not such devices deter theft. As discussed
above, deterrence will be achieved where the thief is alerted that the equipment
has such a device fitted. This is generally not done where a tracking device
is fitted due to the fear that this might allow a thief to locate and disable
the device.
The type of communication used is important because it determines the type,
strength, and geographic coverage of the signal. Equipment can be used in almost
every square mile of the United States, whereas cars are limited to roads and
are concentrated in urban areas. Does the technology provide coverage over your
area of use or the area to which a criminal may move the equipment?
In broad terms, tracking devices use one of two types of communication. The
first involves ground-based communications such as radio signals or using satellites—commonly
referred to as Global Positioning Systems (GPS). A GPS device is likely to have
a wider coverage. There are two types of satellites employed: geostationary
satellites appear to remain in the same position above the earth and synchronous
satellites that go around the earth once a day returning to their original position.
The strength of signal is important when you consider whether or not the equipment
might be used or stored inside or under some other kind of cover—will this block
the signal? What if the equipment is moved by a thief into a container? Will
bad weather affect the signal? In general, radio signals are stronger. An enhancement
of active technology employs geofencing, whereby an alarm message will be sent
when the next signal is sent once a machine is moved out of a predetermined
area. Take into account the maximum size of the area and ease of resetting the
area in which the equipment is used and who has access to do this.
Another way of categorizing tracking devices is whether a device is active,
whereby a signal is sent in any circumstances at a predetermined time, or a
device that is passive, whereby the signal is triggered by an event related
to a theft. For active devices it is important to know how often a signal is
sent and received and if this can be increased during nights and weekends. Usually
there is a limit to the number of signals and further charges for more frequent
exchanges. If the device is passive, you should ask what trigger is used to
initiate the device. Does it depend on something that happens to the equipment
when it is being stolen, or will activation occur when the theft has been discovered?
An important difference between car theft and equipment theft is the greater
time that it may take for an equipment theft to be discovered.
A common concern of equipment owners is that their equipment may be in a
remote location where a criminal has more time to locate and disable a device
than he might with an auto. The risk of this will depend on how easy the power
unit, transmitter, or antenna are to find and what happens if any one of these
components is disabled. Does this send an alarm message, if so, to whom, and
is this a different message than when a signal is lost for some other reason?
If theft detection is not the primary role of the device, such as fleet management
systems, it is important to be aware that clear communications may be a greater
priority than hiding key components such as antennae.
Damage to the device is a greater concern when used on off-road equipment
than on-road vehicles, so it is important to understand how the device has been
strengthened to cope with this. This may be an area where factory-fitted devices
have the upper hand.
At some stage in the recovery process, law enforcement should be involved.
Do you receive the alert, or does the service provider have established contacts
with law enforcement to help facilitate police involvement? There are hundreds
of thousands of agencies at the local, state, regional, or federal levels. Which
agency would be contacted in your area? Have they heard of your service provider
or worked with them before? You might even ask if the service provider has ever
acted as an expert witness in court. This may be beyond and above any service
contract but reflects a determination to help convict equipment thieves.
Another question to ask is whether or not the service provider owns the communication
systems that are being used. If it is a satellite, this is unlikely, but the
degree to which the vendor is “removed” from the owner of the basic communication
system may have a bearing on the level of service and any possible interruptions
further down the line. What guarantees of service are given?
Are Two Layers Better than One?
Because some of your equipment may be higher risk than others, consider different
layers to your security. A low cost measure may be appropriate for the entire
fleet, whereas a more expensive solution may be appropriate for higher risk
items. Employing both technologies if they compliment each other may achieve
both deterrence and detection.
The Real Cost
The points above are some areas to look at to assess the likely performance
of a device. This can then be compared against the cost, but there are some
factors to consider beyond the basic cost of the device.
Are there any extra costs such as when an alarm is triggered, be it a real
or false alarm? How many messages can be sent for your monthly fee and what
do extra signals cost? Is there an installation cost? Does the device need regular
servicing? If so, how often, who does it, and how much does it cost?
What is the expected lifetime of the device? Can you speak to an owner who
has had a device fitted for this length of time? Can the device be moved from
one piece of equipment to another? The greater your equipment turnover, the
greater the importance of this for you. Note that if you have different machines
moving in and out of a high-risk environment, an easily movable device may be
able to cover more than one piece of equipment.
If you are insured, will your agent or insurer be prepared to adjust your
deductible or premium to reflect use of such a device? Now is a good time to
ask as insurers are being encouraged to look at incentives for increased security
to strengthen homeland security.
Conclusion
The bottom line on the use of equipment theft technology is one of risk assessment.
Consider the likelihood and possible severity of a theft, including the costs
of business interruption and how many devices could be bought for the cost of
deterring or detecting one theft.
Opinions expressed in Expert Commentary articles are those of the author and are
not necessarily held by the author’s employer or IRMI. This article does not purport
to provide legal, accounting, or other professional advice or opinion. If such advice
is needed, consult with your attorney, accountant, or other qualified adviser.