BP36: Border Transportation Security Issues

BP36: Border Transportation
Security Issues – Cargo Theft
JJ Coughlin
Steve Lewis
BP36 Presentation Agenda
• Scope of Problems/Cargo Theft Trends
• Cargo Theft – Methods of Operation
• Cargo Theft - Prevention and Solutions
• Supply Chain – Information Sharing and Analysis Center
• Border Theft issues – Equipment
• Border Theft issues – Prevention and Recovery
Scope of the Problem
• Crime in the US exceeds $800 Billion annually.
• Ernst & Young asserts corporations lose between
1% and 2% of revenue to business abuse annually.
• 30% of all business failures are attributable to
employee theft.
• 23% of US workers use drugs on the job.
• Companies lose $90 Billion annually in lost
productivity and health expenses due to job related
drug abuse.
Scope of the Problem
• International Cargo Security Council (ICSC),
Washington D.C. “Estimates at least $10 Billion a
year is lost to cargo theft.”
• FBI: Operation Sudden Stop-June 22, 1999, “The
theft of cargo has become so widespread that it
constitutes a serious threat to the flow of
commerce in the U.S.”
Scope of the Problem
• Domestic Cargo Theft
• Low-Risk, High Reward
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Employee Theft
External Theft
Collusive Theft
Organized Crime
• Ethnic Gangs
• Mafia
Scope of the Problem
• Domestically, Cargo Thieves target five main
product types:
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Computer components and software
Consumer Electronics
Cigarettes & Pharma
Fashion Apparel
Copper and Metal
Scope of the Problem
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Global Cargo Theft
Where in-transit commodities are most vulnerable
Collusion between consignee criminals
Allegations of widespread corruption
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Mecca for Manufacturing
High Tech
Shoes
Clothing
Cargo Theft by Location
Cargo Theft by Day of Occurrence
Type of Incidents
Types of Incidents
300
Theft
250
Robbery
200
Intelligence Report
150
Fraud
100
Non-Theft Property Crime
Policy Violation
50
Other
0
1
Top Cargo Theft States
# o f R e p o rte d In c id e n ts
Top10 Cargo Theft States
80
70
60
50
40
30
20
10
0
AL
AR
CA
FL
GA
NC
States
NJ
OH
TN
TX
Main Commodity Theft Targets
Automotive 7%
17%
Clothing/Accessories 7%
7%
Computer&peripherals 4%
7%
4%
Consumer Electronics 11%
Drugs/Medical 12%
6%
11%
Food 13%
Health/Beauty 3%
12%
Music/Movies/Software 1%
12%
7%
1%3%
Tobacco/Spirited Beverages 7%
Building Supplies 12%
13%
Other 6%
Category Not Reported 17%
Main Target Items
Most Stolen Item Per Commodity
Tires (9)
13
9
Clothing (7)
7
Computers (8)
8
8
3
2
TV's (24)
Pharmaceuticals (19)
Drinks (7)
7
Collagen/Lotion (2)
24
19
DVD's (3)
Cigarettes (8)
Copper (13)
Current Cargo Crime Activity
• Ethnic groups, mostly of Cuban descent, focus on
Tractor-Trailer (FTL) thefts from supply chain
carriers moving high value loads.
• Local gangs concentrate on local distribution
centers, truck stops and drop yards.
• Ethnic groups, mostly of Cuban descent, commit
burglaries of high value warehouses or shipments
sto involving high value goods.
Method of Operation–
FTL Thieves
• Travel from Florida to distribution center location
and place it under surveillance.
• Follow loaded tractor/trailer from DC awaiting an
opportunity to take the unit.
• Will follow for hundreds of miles if necessary.
• Once driver leaves unit alone, they will steal the
entire unit, by either hot-wire or master keys.
Method Of Operation – FTL
Thieves (Continued)
• They immediately disable any QUALCOMM or asset
control GPS on the tractor or trailer.
• They either drive the stolen unit a short distance and park
in a remote or crowded area, and place it under
surveillance for LE response.
• If no one comes within a few hours, they either move it on
or trans-load the freight to a clean trailer.
• If freight is not recovered within 16 hours, chance of
recovery is very limited.
Method of Operation – Local
Gangs
• Prey on local high value supply chain operations.
• Much more opportunistic than organized.
• Usually have local “fence” where the freight can
be quickly sold for about $.10 on the $1.00.
• Stolen freight is turned at a much faster rate,
usually within a few hours.
Method of Operation – High Value
Burglaries
• Place location under surveillance to establish hours
and method of operation.
• Might even enter location under guise of job
application or some maintenance operation.
• Usually commit offenses over weekend or long
holiday break.
• They will first set off the alarm, and pull back from
building to watch police/owner response.
Method of Operation – High Value
Burglaries
• After response, they will set the alarm off a second
time and pull back, again watching the response.
• After second response, they will now disable the
alarm, pull back looking for response and when
there is none, they will enter the building, usually
cutting through dock doors with a torch.
Method of Operation – High Value
Burglaries
• They will enter the warehouse, take their time and
load up several trailer loads of freight and pull
them away, many times using stolen tractor from
the victim’s yard or nearby businesses.
• Usually empty trailers are found in Florida or
Georgia.
Why are FTL Carriers a Target?
• FTL carriers have clients with High Value (HV)
products that are in demand
• HV products are easily resold in the black market
• Cargo Thieves want and target these HV Products
• HV products are most vulnerable while in-transit.
Steps FTL can take for Self
Protection
• FTL Providers should have:
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Established Security Group/Team
Established written security plan
Control and evaluate transportation partners
Establish minimum security requirements for partners –
contractually
Steps FTL can take for Protection
(Continued)
• Establish a Company Security operation.
• Establish supply chain security guidelines
and specific programs in response to HV Shipper security
requirements.
• Evaluate using shipment security devices:
HV Security Tape, High Value locking devices, Covert
cargo AGPS systems/others .
FTL Security
Supply Chain Security Oversight:
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Physical Security ( W/ PDT)
Guard Services
Crime Prevention
Employee Training
Reward Program/Tip Hotline
Incident Investigation
Risk Assessments and Risk Analysis
RFQ/RFI – Security Guideline Responses
Government Compliance Programs
Government Compliance Programs
• Transportation Government Programs
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C-TPAT- Certification and Validation
PIP- Customs Canada, Partners in Protection
FDA- Food and Drug Bio-terrorism Act
FAST- C-TPAT Northern Border
HM 232- Hazmat Security
TSA- CCSP - Cargo Security Screening Program
Steps FTL can take for Protection
• Participate in industry regional councils.
• Network at Law Enforcement/Cargo Theft functions.
• Participate in National Transportation Security
Organizations.
• Participate in the Supply Chain-Information Sharing
and Analysis Center (SC-ISAC).
Transportation Security
Organizations
• International Cargo Security Council
• American Trucking Association
• Southwest Transportation Security Council
• North Texas Crime Commission
• Five other Regional Security Councils
Cargo Security Councils
Cargo Security Councils are transportation
security industry sponsored groups formed to
promote cargo theft awareness and partnership
with Law Enforcement members who work cargo
and transportation related crimes. The councils are
regional in operation but network with national
organizations and other councils to provide a
national effort.
Cargo Security Councils
• Currently there are seven (7) active industry
sponsored councils.
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SETSC
SWTSC (www.swtsc.org)
WSCTA - North & South
Mid- South
ERCTA
Mid-West
Industry Cargo Security Council / LE
Public Partnerships
Mid-West Cargo Security
Council
Chairman – Michael Kozak
[email protected]
Office: 708-857-1936
Cell: 630-240-4247
Western States Cargo Theft
Association - North
Illinois
Chairman – Sgt. Ward Radelich
[email protected]
Office: 510-622-4614
Cell: 510-715-6529
Eastern Regional
Transportation Security
Council
www.wscta.com
Chairman – Kurt Duesterdick
[email protected]
Office: 210-330-3681
Northern California
New Jersey
Western State Cargo Theft
Associations - South
Chairman – Mark Donahue
[email protected]
Cell: 951-538-3142
www.wscta.com
Southern California
Southwest Transportation
Security Council (SWTSC)
Chairman – JJ Coughlin
[email protected]
Office: 972-722-4777
Cell: 214-649-6441
www.swtsc.org
Texas
Southeastern Transportation
Security Council (SETSC)
Mid-South Cargo Security
Council (MSCSC)
Chairman – Eric De La Barre
[email protected]
Office: 404-581-6024
Chairman – Jerry Keenum
[email protected]
Office: 901-344-3540
Cell: 901-849-2093
www.setsc.org
Georgia
Tennessee
Council Membership
Membership includes security management groups
from companies involved in the transportation
field, including manufacturing and insurance,
along with Law Enforcement personnel assigned
to units which investigate shipment (Cargo),
vehicle and commercial vehicle theft.
Council Objectives
• Improve Transportation Cargo Security
• Serve as clearinghouse for information for Cargo
issues
• Platform for Cargo Security matters
• Assist voluntary initiatives by government and the
private sector
Council Objectives (Cont.)
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Increase communication between Law
Enforcement (LE) and Industry Security
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Establish LE points of Contacts for major offense
alert notifications regionally by email
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Promote exchange of security related information
between companies and law enforcement
Council Objectives (Cont.)
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Provide assistance and training to Law
Enforcement
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Education on Supply Chain methods and
documentation
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Assistance with major recoveries
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Assistance with theft stings
Council/Law Enforcement
Cooperation
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Companies can provide Covert Operation
equipment.
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Property and equipment for stings.
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Storage of recovered Property if needed.
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Provide Alerts, BOLOs and info share through
councils and SC-ISAC.
Law Enforcement Response/Issues
• Limited Cargo Task Forces exist around the
country.
• Law Enforcement recovery and response is many
times limited unless you know who to call.
• How incident is reported by the agency with
jurisdiction is not consistent.
• It is imperative that load and vehicle (license and
VINs) information readily available if there is an
incident.
Regional Cargo Theft Task Forces
Illinois State Police Cargo
Task Force
California Highway Patrol Cargo
Theft Interdiction “CTIP”
Northern Division
Oakland
Sergeant Steve Covey
[email protected]
815-651-4260
Newark – FBI Interstate Theft
Task Force
Agent Michael Palermo
[email protected]
973-792-3215
New Jersey State Police
Cargo Theft and Robbery Unit
Sergeant Mike McDonnell
[email protected]
732-548-7153
Sergeant Ward Radelich
[email protected]
Office: 510-622-4610
Cell: 510-715-6529
Memphis Auto/Cargo Theft Task
Force “TAMCATS”
FBI Office
901-747-4300
Barry Clark – Shelby County SO
901-508-0466
Detective Alvin Clark – Memphis PD
[email protected]
901-508-1882
Shelby County SO Alert Unit
Lieutenant Richard Nelson
901-385-4716
Detective Chuck Tarwater
[email protected]
901-508-0462
California Highway Patrol Cargo
Theft Interdiction “CTIP”
Southern Division
Los Angeles (310-513-7800)
Sergeant Sid Belk
[email protected]
Office: 310-513-7818
Cell: 951-951-5338
Detective Sgt. Dave Zapien
[email protected]
310-513-7811
Tactical Operations Multi-Agency Cargo AntiTheft Squad “TOMCATS”
South Florida
Florida Statewide Cargo Theft Task
Force
(Florida Highway Patrol)
Lieutenant Tony Bartolome
[email protected]
407-858-3233
Corporal David Vincent
[email protected]
352-732-1260
FBI-FDLE-Miami Dade PD
FBI Special Agent Lisa Lamey
305-471-3400
Miami Dade – PD
Lieutenant Twan Uptgrow
[email protected]
Sergeant Raul Delgado
[email protected]
Lieutenant Richard Mestre
Detective Willie Morales
[email protected]
Introducing
• SC-integrity operates the Information Sharing and Analysis Center
for the critical infrastructure of the global supply chain (SC-ISAC).
• SC-ISAC provides its Members with the trusted exchange, analysis
and dissemination of information needed to protect their critical
supply chain infrastructure.
• SC-ISAC services reduce global supply chain losses from criminal
activity, i.e. cargo theft, product diversion, counterfeiting, terrorist
threats, etc.
Supply Chain
Financial
Chemical
Information Technology
Energy
Water Supply
Multi - State
Public Transit
Emergency
Management
Surface
Transportation
Electricity
Highway
Telecommunications
Incident Submission
• Members can submit incident information
– Online
– Email
• Incident information can be “sanitized”.
• More incidents submitted the faster the data base
builds.
Membership
Complimentary
• Easy registration
• Use Application Form Herein
• Email:
Email: [email protected]
[email protected]
•• Immediately
Immediately begin
begin benefiting
benefiting
from
from vital,
vital, actionable
actionable intelligence
intelligence
to
to help
help you
you catch
catch the
the BAD
BAD GUYS!
GUYS!
Border Theft Issues -Equipment
• Tractor, Trailer, Cargo
• Focus of Border Control
– Crimes on the Person
– Shortage of Manpower
• Low Risk High Reward – Focus on High Value Cargo
– A multi-billion dollar business and growing
• Who are the participants?
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Internal
External
Random Acts of Cargo Theft
Organized Crime
Opportunities for Border Theft
• Limited Paper Trail
• Weekends are best
– Border Patrol is the busiest
• Victimless Crime
• Border States are the target (Southern States)
• Driven by ethnic groups - Cuban, Mexican
– Fearless Crimes
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Cargo is pre-sold
Minimum Security while in transit
Protection under International Law
Legal Obstacles to Recovery
Border Theft Issues
Cargo Theft Prevention
• Drivers
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Start with full fuel tanks
Use Buddy System
Keep in touch with law enforcement
Avoid unnecessary stops
Always keep equipment locked
Always have an escape route
Only stop in well-lighted, secure areas
Cargo Theft Prevention (Continued)
• Shippers & Carriers
– Conduct complete background check during pre-hire.
– Inspect locks & seals prior & during operation.
– Install incident reporting procedures for all parties who
handle cargo.
– Plan routes to avoid high crime areas.
– Install & use “Panic Button” for drivers.
– Use tracking devices on tractor, trailer, & cargo.
– Alert Law Enforcement of high value cargo.
– Alert truck stops to improve security
• Demand Protection with security cameras.
Border Theft Issues
• Recovery Solutions
– Border Theft Scenarios
• International Law Application
– The Hague Convention
• Recovery of Cargo & Prosecution of Responsible
Parties
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Criminal Prosecution – United States
Criminal Prosecution – Mexico/Canada
Civil Prosecution – United States
Civil Prosecution – Mexico/Canada
Required documents
Recovery Guidelines
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Law Enforcement – BOLOS
Rewards & Flyers
Mystery shopper operations
Surveillance
Cargo Management & Communication
– Identify Peripheral Criminals
• Use of high quality cargo tracking devices
Questions?
JJ Coughlin
Cell 214-649-6441
[email protected]
Steve Lewis
Cell 214-735-9039
[email protected]