News article, 18 November 2008

Metal Theft

Lessons from Losses 8/2008. In line with the rise in raw material prices, thefts of metal have become increasingly common in the form of scrap and production stock, as well as from construction sites. Recently, it has been reported in the media that posts for road signs and lighting, drain covers, and other metallic objects in public places have also been stolen.
Unfortunately, we cannot produce statistics on thefts of various products to demonstrate this increase; it is primarily based on a feeling among those of us who work with this type of damage and loss. Often, metals are exposed to thieves, and easily accessible because as scrap they are kept outdoors in containers or otherwise, which only in the best cases are stored in enclosed areas. It is not unusual for metal production stock to be kept on loading docks or close to production sites, which also means that it is accessible to thieves.

Loss and compensation

As an example, in the early summer, after an extensive police investigation, five criminals were sentenced for serious theft to between 2 - 5 years in prison for metal thefts mainly in Sweden and some in Denmark. The sentences covered a total of 38 serious thefts mainly of metals to a value of approximately SEK 26 million. The value of each individual theft varied from a few tens of thousands up to millions of kronor. The biggest theft was of 55 tonnes of copper valued at around SEK 2.6 million. To this must be added the value of stolen vehicles and damage to fences and buildings. In some cases, the theft also led to production losses.

Apart from the economic losses of the value of the stolen property, theft causes interruptions in production and lost time in contacting police and insurance companies.

The value of the stolen property may or may not be recoverable through the company’s insurance policy, depending on how and where the stolen property was insured and stored. In general, if the property is stored indoors and the burglary takes place on premises that meet the insurance security regulations, compensation for the loss may be sought. If the property was stored outdoors, no claim will usually be accepted unless special agreements or insurance have been signed.

How are thefts carried out?

Mostly, the MO in these thefts has been just about identical. A group of people, maybe as many as 6-8, previously briefed and using GPS navigation devices, approaches the target company in two vehicles. Well in advance, they have checked out the company and its premises looking for metals, primarily copper, nickel, brass, bronze, or stainless steel. If these metals are available, a search is made for a suitable truck, which is then stolen, often from the company’s own premises or somewhere in the immediate vicinity. Loading takes place either manually or using a forklift, again often taken from the actual premises and hot-wired.

The scope of the theft has often been limited by equipment to which the thieves have access on the premises, and the capacity of the means of transport. It is clearly a well-organised crime that has been carried out systematically.

How can these thefts be prevented?

What precautions can be taken against these thefts? On the basis of the procedure described above, it is clearly a question of:

  • exposure
  • storage, access
  • transport and load capacity

Exposure

Avoid storing valuable or large quantities of metals visibly outdoors or on loading docks, for example. If possible arrange indoor storage in the production or stores premises.

In many cases the thieves can retrieve information about available goods and how they are stored on the Internet. There is thus good reason to think about how the company and its products are exposed on the Internet, especially in pictures of premises and storage sites.

Storage, access

Loading up such large quantities metal is an extensive job that takes time. Whatever can be done to extend that time increases the possibility of detection and decreases the risk of loss. Examples of measures to reduce the available time for loading are:

  • alarms
  • monitoring
  • good lighting
  • good burglary protection for both interior and exterior storage facilities. In many cases gates can easily be lifted off, which facilitates driving into the area with transport.

Transport and load capacity

The available transport and load capacity is very important for the scope and the size of the theft so the following should be considered:

  • do not keep forklifts and other transport and lifting gear in or near storage sites
  • keep keys for vehicles and forklifts in other premises locked in suitable cabinets
  • lock pallet lifters and other lifting gear.

Jan Backman