In response to an increased number of armored car thefts, including a multi-million dollar heist, Cash Connect and the ATM Industry Association (ATMIA) today announced the publication of new best practices guide for Cash In Transit (CIT) vehicles operating in the United States.
The guide, which details 128 best practices, was developed in partnership with Brinks, Lowers & Associates and American Special Risk, a Woodland Hills, Calif.-based insurance company that works as program manager for certain underwriters at Lloyd's of London, the British insurance company. Brinks, Lowers & Associates, or Lowers & Associates, is a Purcellville, Va.-based risk-management firm that publishes an armored car crime report.
The guide covers areas such as insurance requirements, external audit requirements, access controls, transit procedures and physical security. The publication was previewed during the ATMIA conference in February, and the organization has since endorsed the guide.
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The organizations said there is a need to improve best practices for armored car carriers because there has been a significant increase in cash thefts associated with Cash In Transit carriers.
In 2010 alone, there were numerous transit losses, including a bold robbery of a carrier vault, which resulted in a loss of millions of dollars, the groups noted. Four-masked gunmen robbed ATM Solutions Inc.'s St. Louis office and warehouse on Aug. 2 and escaped with $6.6 million.
"ATM cash differences, thefts and losses can quickly erode the profitability of an ATM program and drive up insurance rates," said John Clatworthy, senior vice president of Client Services for Cash Connect, a Newark, Del.-based company that provides $6 billion annually in ATM vault cash to 11,000 ATMs in all 50 states, Puerto Rico and the U.S. Virgin Islands. Cash Connect is a division of WSFS Bank. "Implementation of these best practices will significantly enhance the security of funds and protect the long-term profitability and viability of the ATM industry."
Cash Connect has surveyed all of its approved Cash In Transit carriers to determine what best practices currently are being followed. The company also is conducting on-site audits of each CIT carrier for the same purpose.
"Most armored carriers recognize that significant changes need to be made in order for underwriters to gain confidence that the upward trend in losses will be reversed," said Tom Stevenson, founder and president of Cash Connect. Stevenson visited London in January to meet with insurance underwriters. He pledged to push for major security improvements in the U.S. armored car industry.
The armored car industry needs to change, said Mark Lowers, president of Lowers & Associates.
"Without meaningful security improvements among armored carriers, the temptation for theft will continue to grow, leading to more losses that the industry simply cannot continue to sustain," Lowers said. "Implementation of these best practices will add a major hedge of protection around the ATM industry."
The guide is available upon request through ATMIA.com.
