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Estee Lauder Global Security & Trademark Protection Securing Your Supply Chain Long Island Import Export Association May 10 th, 2012 Robert Masciana Security.

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Presentation on theme: "Estee Lauder Global Security & Trademark Protection Securing Your Supply Chain Long Island Import Export Association May 10 th, 2012 Robert Masciana Security."— Presentation transcript:

1 Estee Lauder Global Security & Trademark Protection Securing Your Supply Chain Long Island Import Export Association May 10 th, 2012 Robert Masciana Security Director


3 What Bad Guys Love to Steal Cosmetics Food/Drinks Electronics Cigarettes Pharmaceuticals Appliances Packaged Foods Fashions Alcohol Empty Trailers Diesel Fuel Seafood Power Tools Metals Cooper Health Products Tractors Tires Lawnmowers

4 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

5 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,

6 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.

7 “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.

8 “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 2 nd /3 rd 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.

9 Cargo Theft 2011 State20102011 California229254 Florida117135 New Jersey121124 Texas84104 Georgia5860 Illinois3353

10 Cargo Theft Data – United States. 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%).

11 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

12 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.


14 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

15 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.

16 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

17 Signs of A Fictitious Pick up Placard appears to be taped

18 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. Fictitious Pick Up

19 Signs of a Fictitious Pickups

20 Fictitious License Signature over logo No water mark State seal DRL# Out of sequence for NJ


22 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

23 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.

24 Best Practices with New Carriers Perform a Dun and Bradstreet audit for Company History/ number of years in service, financial condition Obtain and verify company references Go to DOT / Safer Website – provides company snapshot - Verify insurance information by calling insurance company – cross referencing company contact information and phone numbers. 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. Beware of internet postings to contract loads (know who you are contracting too!)

25 2011 Cargo Thefts - USA


27 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 3 rd 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

28 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 non- compliance.

29 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

30 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.

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