Transcript Northtec Security RFP

Estee Lauder Global Security &
Trademark Protection
Securing Your Supply Chain
Long Island Import Export
Association
May 10th, 2012
Robert Masciana
Security Director
Immediate
Impact on
the Business
Indirect Loss:
Value of the
investment $
Marketing $
Our Brands
discovered in
unauthorized
outlets
Time constraints
for replacement
inventory
Direct
Impact
of Cargo
Theft
Direct Loss
of
Sales/Brand
Recognition
Direct Impact:
Theft of Finished
Goods
Components,
Boxes, Bottles,
New Launches
/Seasonal Gifts
Theft of a
Component within a
gift set
What Bad Guys Love to Steal
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Cosmetics
Food/Drinks
Electronics
Cigarettes
Pharmaceuticals
Appliances
Packaged Foods
Fashions
Alcohol
Empty Trailers
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Diesel Fuel
Seafood
Power Tools
Metals
Cooper
Health Products
Tractors
Tires
Lawnmowers
Cargo Thieves Are Sophisticated
• Experts at “Supply and Demand”.
• Steal only goods that are easy to unload.
• They Know the supply chain and strike at it’s
weakest point.
• Travel hundreds of miles to get what they want
(Fla./Calif./Tenn./NJ).
• Conduct clandestine surveillances
2011 Cargo Theft Data – United States
Statistics
• 2011 - 974 Cargo thefts vs. 893 in 2010 (8.3% increase)
• Out of 974 thefts 853 (85%) were full truck load or container
thefts.
• 34 were facility burglaries
• Theft of Metals increased by 254%,
Major Trends- Deceptive Pickups
• Are largely made possible through online brokering sites that criminal
elements use to impersonate legitimate carriers, and win business from
shippers. Of course the loads never arrive at the destination and are
never seen again
• Deceptive Pickups – YTD 11 events , 38/2011, 29/2010,
Regional Gangs
• Miami/South Florida:
“HIALEAH” gang, theft of Full Truck Loads “FTL”. Possibly the single
most active theft group in the U.S.
New York/New Jersey:
• Larger gangs aligned with the gangs from the south Florida/California.
• Gangs that steal “FTL” and “Grab and Runs” within NJ, New York City,
Nassau and Suffolk Counties.
• We know Cargo Gangs are:
– Persistent
– Patient
– Plans in detail
– Practices
It is just a matter of time.
“How the Bad Guys Do it”
• Armed Robbery/Kidnapping:
Impersonate plainclothes police officers, kidnap driver,
steal load, retain driver’s wallet/cell phone.
• Theft at Unsecured Yard
Extensive surveillance of your yard looking for any
opportunity to steal your trailer with/without your
tractor. Most often obtained inside information.
• Theft at Pick Up locations:
Gang follows trailer till driver stops at pick up location,
observes him going into the warehouse, gang members
enter the rear of the trailer, loading cartons into a SUV.
“How the Bad Guys Do it”
• Diversion Tactic 1:
A gang member approached a driver to redirect their
attention (request directions) at a DC while other gang
members remove products from the rear of the trailer.
Most truckers are unaware they were ever hit.
• Diversion Tactic 2:
A gang members will follow the load until the 2nd/3rd
stop. Approach the driver as if there were an employee
of that DC and leads them to the trucker’s lounge. Tells
them to wait until someone calls them. While other
gang members unload the trailer to a near by SUV.
Cargo Theft 2011
State
2010
2011
California
229
254
Florida
117
135
New Jersey
121
124
Texas
84
104
Georgia
58
60
Illinois
33
53
Cargo Theft Data – United States
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2011 – Six Top States Where Thefts Occur
• The rate of thefts in the top six grew 13.7%
• They account for 75% of all reported incidents.
• California recorded 254 thefts (25%).
Theft Type/Location
• Organized gangs target stationary/unattended loaded or stationary
trailers and containers.
• 2011 – 63% occurred in unsecured parking areas. Truck stops (33%),
public parking (18%), drop lots (11.5%).
• Facility lots (8.5%).
Warehouse Facility Burglaries:
• 24 of the 35 cases (69%) occurred over the
weekend
• Averaged $2.9 million per event
• Largest facility robbery –Fremont California armed
thieves made off with $37 million in microchips
• Eli Lilly Burglary netted $75 million in various
medications.
• A warehouse in Farmingdale incurred a one million
dollar burglary of high priced office phones.
• Perfume Factory – Cedar Grove, NJ- 5 Arrested
Cargo Gangs Warehouse Theft M.O.
Burglaries to Warehouses
• Cut telephone lines - observe response
• Violate perimeter - observe response
• Enter facility – recon, disable video & alarm system observe response.
• They hit cargo lotto - your warehouse has been
cleaned out.
Recommendations:
• Test all alarm back up systems on a regular basis
• Respond to all trouble/line cut signals
• Assign 2 or more security personnel inside the
building until condition identified/corrected.
Cable Seal Compromised
1. Seal -
Cable looked perfectly fine in the
holding block
2. The cable came away from the block with
relative ease. You can see that the cable
had been cut ,“crimped” epoxy glue used
to allow it to be easy re-inserted
3. Upon closer inspection of the block face there were noticeable cut marks –
consistent with a cutting device
Noted Air Cargo Case
Dept. of Justice – Southern District of Indiana:
• On 2/8/2012 US Attorney Joseph Hogsett announced that OHL
Solutions, Inc. (formerly of ActivAir - NY based Company) agreed to a
TSA civil penalty of $1 million fine for shirking their responsibility to
screen cargo under Certified Cargo Screening program (CCSP) for
explosives that was destined for passenger planes.
• Three Indianapolis employees were arrested and pled to conspiracy to
commit federal reporting and recordkeeping violations. Each face a
maximum of 5 years in prison and $250,000 fine.
• Bottom line - The employees failed to properly screen cargo for
passenger aircraft and certified that they did.
Fictitious Pickups
• Deceptive/Fictitious Pickups – Driver wearing a carrier uniform,
presents counterfeit paperwork, duct tapes carrier signs on the tractor,
presents counterfeit Driver’s license/company identification.
• No one validates the paperwork/ID. Signs for the load and departs
location. When in doubt contact the carrier directly.
• As of April 2012 – MO continues with 11 recorded events resulting in
major losses.
• $1.8 million loss of cell phones in Miami, Florida
• $1.5 million loss of computers in Carson, California
Signs of A Fictitious Pick up
Placard
appears
to be
taped
Fictitious Pick Up
• Adhesive signage on doors.
• Magnetic signage on doors.
•Nervous Driver (s)
•Not wearing company uniform
•FTL of 27 Pallets/474 Cases of
Handbags
•Similar Event in North Bergen,
NJ. Where the sign duct taped
was from approved/legitimate
trucking company.
Signs of a Fictitious Pickups
Fictitious License
DRL# Out of
sequence for
NJ
No water
mark
State seal
Signature over logo
Great Job by Irving Police Department
Fictitious Pick Up in Irving,
California
• Responded to an online
posting for a pickup/delivery
of Kyocera Copiers valued at
$202,000.
• Driver tried to swallow the
BOL, spit it out, left BOL at the
scene.
• DNA identified driver with a
match to another stolen load.
• He previously filed a medical
claim and put his original
home address in paperwork.
He was arrested at home .
AKA: Alex Yourin, Alex Smiriviv,
Keven Grandov, Jack Groms
Target Hardening Your Supply Chain
•Identify weaknesses after an investigation.
•Cradle to grave mind set/root cause analysis.
•Review of cases shared from cargo theft alerts.
• Information shared from cargo security meetings.
•Performing security audits.
•Think proactively.
•Work with your business partners.
Best Practices with New Carriers
•
Perform a Dun and Bradstreet audit for Company History/ number of
years in service, financial condition
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Obtain and verify company references
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Go to DOT / Safer Website – provides company snapshot http://safer.fmcsa.dot.gov/CompanySnapshot.aspx
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Verify insurance information by calling insurance company – cross
referencing company contact information and phone numbers.
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Search for the company on the internet (face book/) to verify
information. If they don’t match red flags should raise up. You must
validate that you are truly hiring the listed company.
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Beware of internet postings to contract loads (know who you are
contracting too!)
2011 Cargo Thefts - USA
https://route.freightwatchintl.com
Written “Standards of Care” - Security
Guidelines
Clearly set your requirements in a written document:
– Tractor and trailer are never left unattended.
– Cell phones and ignition keys are never to leave driver(s)
possession.
– In the event of an equipment failure and the trailer must be left at a
3rd party, an immediate call to dispatch providing date, time and
location.
– Carrier to ensure drivers maintain regular communication (every four
hours) with their company while in transit. Any failure to do so shall
be assumed suspicious and a breach of required protocol.
– Consider Team Drivers
Written “Standards of Care” Security
Guidelines
Designated Trucking Company:
Carrier to provide email on each load:
– Name(s) of the driver(s),
– Tractor and trailer numbers
– Status updates
– All tractors and trailers must have an active GPS tracking system,
and must be actively monitored.
– The carrier must agree to all security guidelines and will be held
responsible for full value of lost, damaged, stolen goods if noncompliance.
Develop Security Audit Protocols
BE PROACTIVE:
• Develop/Review your own security procedures first
and ensure compliance.
• Conduct security assessments/audits in partnership
with third parties.
• Work closely with your internal/external business
partners.
• Security Training - Test the officers knowledge of
their post assignments.
• HOLIDAY ALERTS
• Shared Cargo Alert Messages/Meetings
GOYAKOD
Recap
• Secure Your Cargo by reviewing past incidents/losses
and building preventative measures.
• Secure Your Cargo by conducting an analysis of internal
and external transportation security processes.
• Secure Your Product from losses through periodic
security risk assessments.
• Secure Your Company’s Reputation by staying alert of
the industry’s best practices.