Article

Gone in 60 seconds: ATM 'crash and grab' crime on the rise

It's a highly destructive ATM attack with a low barrier to entry for criminals; all you need is 'hot' wheels and a hoodie.

April 17, 2014

It's bad enough that these lowlife wretches would steal someone else's property ... But to compromise an entire building with a vehicle in order to do it is beyond the pale. It's a much more aggravated assault on a civil society, one that respects no amount of industry or investment on the part of store owners. 
— Augusta Chronicle, Feb. 13, 2014

by Rob Reiter
co-founder, Storefront Safety Council

Fifty-thousand dollars of damage in Nutwood, Ohio; more than $100,000 damage in Alberta, Canada; $25,000 damage in Casper, Wyo., and $43,000 in York County, S.C.

Tornados? Earthquakes? Drunk drivers? None of the above. This $218,000 worth of damage was caused by thieves bent on stealing ATMs.

Hundreds of times per month — there's no central databank in the U.S., so no one has a good handle on the grand total — thieves steal pickup trucks, SUVs, or even passenger cars and slam them through the front doors, windows and walls of convenience stores, restaurants — even state office buildings.

In other countries these are called "ram raids," but in America the term "crash and grab" is used increasingly to distinguish this crime from one that might merely use a hammer to smash a window and gain entry.

Easy to use, easy to steal

The crash and grab ram raid is a crime with a very low barrier to entry. There are plenty of "how to" instructions available on YouTube and smart thieves are rarely apprehended.

All that's required to get started is one stolen vehicle and a dark hoodie for a disguise. Many ATMs sit just inside the doors or front window of a store for easy customer access. And unfortunately, easy criminal access, as well. A thief looking for targets will find them in places where he already goes every day — for gas, for cigarettes, for lunch.

Most experts agree that crash-and-grab theft is likely to become even more frequent. "The crash and grab pattern is always the same and it works well for the criminals," Mark Smith of Kahuna ATM Solutions said. "The irony is they commit a felony and only find a couple thousand dollars in the ATM. Split among several gang members and you can see why they would want to hit 10 locations to make it truly pay off for them."

Crash and grab is also getting increased attention from law enforcement, the ATM industry, and insurers. The problem is simply too costly to ignore.

A 2012 guide published by Diebold Inc. and ATM Marketplace estimated that about 300 ATMs are removed (stolen) from financial institutions annually. They pegged the cost of physical attacks on ATMs at $4.5 million per year. But that's just banks, and the fact is that the vast majority of crash and grab ATM thefts take place at retail locations.

Using a conservative assumption of 50 ATM thefts per day nationwide (one per state), and allowing $2,500 for the ATM and $10,000 for repairs and loss of business, the cost of crash and grab theft comes to $625,000 per day, $19 million per month, $228 million per year.  

And that's just property loss. The total does not account for the theft of cash from the machine itself. Assume a modest $1,000 for each theft and you rack up another $18 million in losses.

Add to this the estimated $4.5 million from bank attacks, and the total annual loss from crash-and-grab ram raid thefts in the United States comes to a hefty quarter of a billion dollars. And that's using conservative numbers.

Beware of backlash

There are many victims in a crash-and-grab incident. There's the ATM owner who loses his machine and its cash and the insurer who has to cover the loss. And then there's the merchant and his insurer, who likely have suffered a loss 10 times greater when damage repair, lost merchandise, lost business, and increased security and insurance costs are factored in.

Municipalities also suffer: They have law enforcement response costs, report costs, building inspection costs, and the negative publicity that comes with this high profile crime. In response, cities such as Houston and Atlanta have imposed additional hurdles and restrictions on ATM installations.

And finally, there is the danger of escalation with these crimes; a number of ATM crash and grabs have been carried out while employees were actually working in the store.

Prevention is crucial

CCTV recordings have shown that experienced thieves can smash a storefront and shove an ATM into a vehicle in less than one minute — far faster than police response times in an urban area, much less a rural one. But CCTV, while an excellent security tool, is not an effective deterrent — as evidenced by the increasing frequency of thefts.

To discourage crash-and-grab theft, the ATM industry should follow the lead of the propane gas industry. The propane industry installs stout, ASTM-compliant steel bollards around propane tanks to prevent accidental crashes that can cause fire and explosions.

The ATM industry can take similar measures to prevent deliberate attacks. Strategic placement of bollards can prevent a vehicle from crashing into a store in the first place. There's no need to invest in a fortress; proper, affordable protection will send crash and grab thieves down the street to find softer targets.

And remember — there are also lives at stake. Anyone working or shopping in the store might be at risk of being struck by a heedless crash-and-grab crew.

Insurers and risk managers, pay attention. This is costing you money now and could cost you even more soon.

Rob Reiter is the co-founder of the Storefront Safety Council and an expert in the causes and prevention of both accidental and intentional vehicle incursions. He consults for companies and governmental clients on matters involving perimeter security and pedestrian safety. He writes a blog about storefront safety and can be reached at Blockaides Inc. 

photo: alan cleaver