securitybrief
the truth about security technologies
YOU’VE SPARED NO EXPENSE WHEN IT COMES
to security, investing in the best technology money can
buy. But is your warehouse or DC really secure? Probably
not. Although the latest high-tech devices can certainly
prove helpful, all of these technologies have weaknesses
that can be exploited by dishonest employees and professional crime rings. Here are some examples:
; CCTV (closed-circuit television): While some
overzealous salespeople would like you to believe that
installing security cameras will eliminate worries
about theft, this simply isn’t true. In fact, more than 90
percent of the companies that come to us to investigate
significant theft-related loss already have extensive
video systems in place.
Why doesn’t CCTV prevent—or expose—insider
theft? For one thing, fraud and collusion in a distribution
environment look exactly like standard operating procedure. There are no bells or whistles that go off when
employees steal product through what appear to be the
normal shipping, receiving, customer pickup, transfer, or
returns processes—and these are the areas where large-scale theft typically occurs in the distribution center.
For another, few executives have the time, patience,
or inclination to watch live or archived activity.
Unfortunately, dishonest workers are well aware of
this. In this respect, a video system is no different from
a piece of exercise equipment. It’s not enough to buy it;
you have to use it regularly to get results.
; RFID (radio-frequency identification technology):
When it comes to security applications, RFID has a
couple of drawbacks. First, there are the ongoing technical issues—nearly half the respondents to a 2009 DC
VELOCITY survey reported problems like signal disruptions, integration issues, and unit failure.
But aside from the technical glitches, it’s important
to keep in mind that RFID was designed as an operational tracking tool and was never intended to protect
against internal theft. Dishonest workers can defeat
RFID tags and readers a number of ways, at which
point the tracking capability is completely neutralized.
; Bar codes: Like RFID tags, bar codes provide many
operational benefits. However, they will not prevent
internal theft—there are just too many ways to get
around them.
For example, if a dishonest selector or loader wants
to place four extra cases onto the truck of a driver he’s
colluding with, he simply won’t scan the extra boxes.
It’s that easy.
Barry Brandman is president of Danbee Investigations, a Midland Park, N. J., company that provides investigative, loss prevention, and security consulting services to many of the top names
in the logistics industry. He has been a guest speaker for the Department of Homeland
Security, CSCMP, and WERC, and is the author of Security Best Practices: Protecting Your
Distribution Center From Inventory Theft, Fraud, Substance Abuse, Cybercrime and Terrorism.
You can reach him via e-mail at bbrandman@danbeeinvestigations.com or (201) 652-5500.
