White Collar Crime
Discussion Questions: In Introduction to Security, regarding white collar crime, it states that the crime itself may be non-violent, but the end result very well could be. Can you offer input and reasoning as to why this is the case? What do you feel will serve as the primary security issue(s) facing the security manager in the upcoming decade? What steps should be taken out to address them?
Instructions:Fully utilize the materials that have been provided to you in order to support your response. Your initial post should be at least 350 words.
Introduction to Security Ninth Edition. DOI:
2013 Elsevier Inc. All rights reserved.
487
2013
10.1016/B978-0-12-385057-7.00019-1
Security: The Future
OBJECTIVES
The study of this chapter will enable you to:
1. Consider the future and what challenges and opportunities will face the security profession.
2. Know what resources might be available to the security profession.
3. Discuss the critically important relationship between the public sector and private industry.
4. Understand the importance of pandemic planning and brand protection management.
Introduction
In the 21st century, most of the world is concerned about terrorism. In particular the United
States and other developed nations have focused resources to wage war against terrorist net
works. While the federal government focuses on homeland security, with the cooperation of
state and local governments, local communities must still contend with crime prevention.
Despite the efforts of law enforcement agencies, community programs and private secu
rity, the crime problem continues to be a major concern for most U.S. citizens. Today, few
would argue that the criminal justice system alone has been totally effective in reducing crime.
In addition, declining funding for public law enforcementas funds are diverted to home
land security and the war on terrorismhas forced most law enforcement administrators to
reduce services even in a time when the federal government is asking for more. Many such
policies forbid law enforcement personnel from responding to or investigating certain types of
crime. In fact, most local law enforcement agencies are triaging their responses, focusing and
responding primarily to the most violent crimes in their communities. Hope is not lost, how
ever, and to fill this void, criminal justice administrators and scholars have called for greater
involvement from the private sector. This is where the security profession comes into play on
the crime prevention field. A collaborative partnership among the security profession, public
law enforcement, and citizens at large is necessary to protect the homeland and reduce the
fear of terrorism and crime. The private sector has embraced this challenge and has responded
willingly, including participating in volunteer federal programs such as the Customs Trade
Partnership against Terrorism (CTPAT).
The overall perceptions of the terrorist threat and crime are important, but the economic
impact on businesses is equally significant to security management and the resiliency of the
business in the long run. The problem stems from the nations inability to find a set of accurate
metrics regarding criminal behavior. Not only has the problem of economic crime continued
to grow in size, it has also become increasingly sophisticated, aided by the use of computers
19
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http://dx.doi.org/10.1016/B978-0-12-385057-7.00019-1
488 INTRODUCTION TO SECURITY
(what is commonly referred to as cybercrime). For example, and since 2008, the recent rash
of insider trading and Ponzi schemes are a result of major corporate and government gover
nance failures. The growth of identity theft is an indicator of problems yet to come. As such, it
is imperative that the security industry come up with proactive solutions to help defeat these
kinds of white collar and cybercrimes, which naturally includes a reporting mechanism back
to federal law enforcement agencies.
The Aftermath of September 11, 2001
In January 2003 Security Management asked security managers, senior business executives,
Wall Street analysts, and others for their perspective on how the events of September 11,
2001 had impacted security. In general, their report shows that security has become more
visible and important to the business enterprise. This is true not only in the corporate view of
security but also in the security technology and services sector. There is no doubt that secur
ity now plays an important role as part of companys business resiliency strategy.
A study conducted for the American Society for Industrial Security (ASIS) International by
Westat, Inc., ASIS found that almost 75 percent of the security executives surveyed reported
no changes in the structure of security within their companies. However, almost half reported
an increase in budgets. The increased budgets did not result in additional staff in 66 percent of
the organizations. Some of the increased budgets went to enhance and in some cases supplant
security through new technologies, but most respondents did not place equipment at the top
of their lists.1
Where was the money spent? For most companies, funds were used to improve business
resiliency and to update security policies that addressed issues raised in the events of 9/11.
Companies with established policies spent time dusting them off and revising them for the cur
rent state of threats to the business enterprise. For others, policies were nonexistent and had
to be created. Policy concerns focused on suspicious packages, bioterrorism concerns, access
control issues, followed by technology.2 Business resiliency and incident management also
became key focus areas for companies, to include practical exercises with the support of exec
utive management to ensure the resiliency of the enterprise in the aftermath of a crisis.
Private Security Resources
Growth in private security is shown by increases in expenditures, employment numbers, and
value of equipment. In addition, many new firms have entered the business, established firms
are showing strong growth, and some Fortune 500 companies as well as foreign firms are
buying security firms.
In a time when public law enforcement is experiencing little or no growth, private security
directors are experiencing greater demands on their resources and professional expertise.
More than half of local and central station alarm firms reported annual budget increases.
The private security industry will continue to grow commensurate with the need to secure
Fischer, R., Halibozek, E., & Walters, D. (2012). Introduction to security. ProQuest Ebook Central http://ebookcentral.proquest.com
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Chapter 19 l Security: The Future 489
the business enterprise as a result of homeland security concerns. Businesses have also gone
global with supply chain security now being a major remit for security managers.
To fill the gap left by public law enforcement and to help alleviate some of the publics fears,
private sector security has offered its services in a variety of areas, including private patrols of
residential areas, security for courtrooms and correctional facilities, traffic control, and so on.
The private sector has a tremendous impact on crime and the criminal justice system.
Therefore, it is absolutely necessary to completely understand the private sector system. In the
future, the private sector will bear more of the burden for crime prevention and asset protec
tion, while public law enforcement will narrow the focus of police services to crime control.
Most of the security managers surveyed by the researcher were willing to accept this growing
role and continue to embrace this mission even to this day.
Interactions and Cooperation
Although Hallcrest II, in 1990, rated interaction and cooperation between the public and pri
vate sector as good, it also noted (as did the RAND report and the Private Security Advisory
Council [PSAC]) that certain impediments to interaction and cooperation still existed. These
impediments included role conflict, negative stereotypes, lack of mutual respect, and minimal
knowledge on the part of law enforcement about private security. As noted when these topics
were discussed in earlier chapters, both private and public sector administrators are cooperat
ing to try to overcome these problems.
We presented some discussion of these areas earlier in this text. The trend by the public
sector to contract services or develop hybrid security operations, with greater cooperation
between the public and private sectors, continues in the 21st century. According to the late
Robert Trojanowicz:
One question that need not be asked is whether the trend will persist. We are already
too far down the road to turn back. Therefore, the ultimate question is not whether this
change is good or bad, but whether these changes will occur piecemeal and poorly or
thoughtfully and well.3
Limitations of Security
A great burden has been placed on the private sector. It goes without saying that some of the
expectations will very likely not be met. It is impossible to be everything to everyone, especially
in an area that is changing so rapidly and dynamically.
Consider, for example, the changes in technology. Securitys main purpose is to prevent
losses, whether traditional, such as burglary; new age, such as cybercrime of hacking and iden
tity theft; or military, as in reduction of vulnerabilities to terrorist attacks. Historically, losses
were reduced through the use of various physical security devices that served as delaying
devices to wouldbe intruders. As the targets for theft changed, security modified its protective
strategies and adopted new security technologies.
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490 INTRODUCTION TO SECURITY
Today, security in many companies is truly a full lossprevention operation, and within
such operations, stateoftheart and enterprisewide security systems are coupled with tradi
tional security methods. Integration of security systems with data processing and other com
pany operations are becoming commonplace as logical and physical security converge. As
discussed earlier, the relationship between the chief security officer (CSO) and the chief infor
mation officer (CIO) will need to be reinforced and clearly defined. In short, it is important that
the CSO and CIO stay very much aligned regarding how to mitigate threats against the busi
ness enterprise.
How effective are security devices today? Security managers would be wise to remember
that no system is completely effective. A determined criminal can find ingenious methods of
defeating any system. For example, consider the progressive development of lock technology.
It began with a simple doorknob lock with a spring latch. As we know today, this combination
offers virtually no protection from a person who wants to gain entry. The simplest and least
destructive method of gaining access would be to card the lock. If this option is removed by
installing a dead latch, the intruder will have to choose another means of access. Since the
latch does not extend more than half an inch into the doorframe, a burglar could spring the
door or twist the doorknob off to gain access to the locking mechanism. Installing a good dead
bolt lock may solve this problem.
Each step that security takes requires a burglar to use more time, but the burglar is still not
stopped. The burglar chooses to either cut the dead bolt or twist the collar mechanism off the
dead bolt lock. Security then responds by installing a dead bolt with a slip collar (or recessed
system) and a dead bolt with a casehardened core.
In most cases, if the door and frame are of solid construction (that is, metal), burglars will
not attack them. But some might want company assets enough to find another method of
entry. The keying device then becomes a target; key cores can be drilled or popped. Security
managers who have been thinking ahead will purchase locks with casehardened drill plates,
which will foil both drilling and popping. However, there is still the chance of picking the lock.
But security can anticipate this possibility and install a pickresistant lock.
Has security now stopped the potential intruder? In reality most thieves would not bother
to assault this level of protection; but if the target is sufficiently valuable, other alternatives
exist. The thief s imagination is the only limiting factor.
With todays hightech security devices and reliance on computers, a security manager
can virtually eliminate any targets probability of being attacked. The modern age has brought
Star Wars devices such as computer accesscontrol systems based on fingerprints or voice
identification, laser beam alarm systems and communication devices, and sophisticated lis
tening devices and their counterparts, sweeping devices. Lighting technology has made it pos
sible to illuminate areas to daylight levels with reduced costs. The list goes on, but the question
remains: Why does crime continue to plague us?
The answer could lie in the fact that when professional thieves are sufficiently motivated,
they will simply find a waythe professional thief being one whose job it is to steal. Or it may
be because a security manager has failed to convince executives to pay for a security operation
that appears to them to be an added expenditure that will not add to the profit margin. Return
Fischer, R., Halibozek, E., & Walters, D. (2012). Introduction to security. ProQuest Ebook Central http://ebookcentral.proquest.com
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Chapter 19 l Security: The Future 491
on investment (ROI) and valueadd analysis must become part of the working vocabulary of
the security manager and CSO.
High technology has made the operation of most businesses much easier. The photocopier,
the fax, the computer, and 21stcentury communication devices make information transfer sim
pler and more efficient. This convenience has at the same time created new problems for secu
rity in the areas of increased information and physical security risks, as discussed in this book.
Evolving Trends
Although the security field is now composed of more than 1.1 million personnel, with the
majority employed in contract security, the trend will continue toward fewer and smaller pro
prietary security operations and even fewer proprietary unionized firms will hire contract secu
rity or security consultants for specialpurpose projects. Contract firms will continue to merge.
As noted in earlier discussions, Securitas is now the largest contractor in the United States and
continues to grow by buying other firms. Hybrid security operations are now commonplace.
The testing industry, geared to preemployment, drug, and psychological testing, will con
tinue to offer services sought after by the private sector. Advocates of privacy standards will
continue to restrict the use of these types of tests.
The use of outside investigators and security specialists will increase. The trend will be
toward a manager of security services using security consultants for special projects. However,
given recent corporate scandals, such as the pretexting investigation into HewlettPackard,
which brought the CEO to testify before Congress, more contract management and rules of
engagement will be required in order to mitigate liability and ethical issues.
Liability costs, though remaining relatively high, will continue in the downward trend that
began in 1986. The downward trend may be attributable to better prepared security managers who
are learning the value of risk management, premise liability mitigation and workplace privacy.
Drug testing will continue to be a major issue for corporations. Until the nation is able to
control the influx of drugs over the border, this issue will remain a legal and safety problem for
many companies. The cost associated with screening can be prohibitive, and though the pub
lic relations aspect of the Employee Assistance Program (EAP) cannot be disputed, there are
those who are now asking whether the company can afford to spend thousands of dollars on
each employee who needs rehabilitation. The question remains, what is enough?
In addition to its role in fighting the increase of economic crime in general, security will
continue to face an increase in computer and informationrelated crime. As noted earlier in
this text, estimates of the cost of computer crime range from $1 billion to $200 billion annu
ally. On the international scale, there is more concern about security issues. The Common
Market has mandated that security laws be reviewed and upgraded to bring commonality to
the European Union. Many companies have established Situation Watch programs designed
to track escalating economic, social, political situations and weather patterns that could nega
tively impact a companys employee interests and supply chain in a given region.
Terrorism without a doubt is currently the most talkedabout issue facing the nation, espe
cially for companies operating on an international scale, referred to as multinationals. The
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492 INTRODUCTION TO SECURITY
terror of 9/11 made it abundantly clear that terrorism is truly global and can negatively affect
the ecosystem of multinational companies. The continuing attacks, such as the Madrid train
bombing and the Mumbai and London bombings, keeps the terrorism menace in the fore
front of our minds. The 1991 Gulf War caused a growth in concern among most multinational
companies. Since 2003 the war with Iraq has also had its impact on money markets around the
world. Companies can protect their assets from terrorists but have little control over the impact
of nations decisions in their efforts to control terrorist states. The key in planning antiterrorist
security operations for the 21st century will be providing adequate protection without spend
ing money for unnecessary security.
Convergence: Integration of Logical and Physical Security Technologies
Technology will continue to drive the integration of computers and biometrics with CCTV and
access control protocols. Telephone, wireless systems and Internet protocols will be used increas
ingly to connect security systems safety devices and building management. Microprocessing
chips dedicated to security purposes will be embedded in equipment, resulting in smart cam
eras and employee identification cards. The field of robotics will continue to grow, particularly in
the area of corrections and guard operations within confined areas. Miniaturization is a growing
trend. CCTV cameras the size of small packages are already on the market. Electronic article sur
veillance (EAS) will continue to grow as prepared packaging becomes more prominent.
Still, integration of security technology is a continuing process rather than a single event.
Though the industry has come a long way from the independent systems of the early 1990s,
consultants and security practitioners continue to argue over the true extent that integration
has arrived. Elliot Boxerbaum, CPP and president of Security/Risk Management Consultants,
recently stated that security [will become] just another piece of the puzzle, but at the same
time its importance to the whole is increased.4
True integration creates a myriad of potential issues. First among these is the process of
giving computer techies control over systems that were once the domain of security profes
sionals. The real end result should be cooperation between the CIO and CSO as well as firm
employee policies in place that could result in termination of employment for violating infor
mation technology practices.
The Future
A number of years ago, Ira Somerson, president of Loss Management Consultants, provided
an excellent overview of the future in his article The Next Generation. Security professionals
must be futurists and ready to initiate and adapt to change based on the larger forces shaping
the future given the turbulent world we all live in today. The following are the trends that Mr.
Somerson noted. These are very much true as the author revises this section in 2012:
l Expansion of global markets and production will continue 24 hours per day across the
globe.
l Multinational and multicultural workforces will be the norm.
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Chapter 19 l Security: The Future 493
l Downsizing will continue.
l Technology will move us into a telehumanic age.
l Qualified workers will be difficult to find.
l Religious extremists will become more prevalent.
l Biotechnology will become a powerful force.
l Employee loyalty will continue to erode.5
The future for the security field is very positive. Professionalization is being pursued; large
sums of money are being spent to improve security and lossprevention operations. For the
first time since World War II, security has found its place in business. In addition, limitations
of the criminal justice system have been identified, and the resultant void is being filled with
some success by the private sector. The future in private security is exceptionally bright and
lucrative for the talented person who wants to do something special, especially if that person
has had sound educational preparation. It cannot be underestimated that security is going
global. Its imperative for security professionals to think and act globally, with those having
proven international experience competing for the best jobs. As such, international experience
and exposure through personal and business travel will be important hiring criteria for the
security director of the future. In short, if you dont have it, it will be hard for you to compete
for the top job!
Technology
The future for technological advances in security is also bright. In just 45 years, the security
business has seen the arrival of CCTV, microwave detection systems, small portable radios and
cameras, magnetic sensors, laser technology, and truly integrated computer and security sys
tems. Security has taken advantage of these technological improvements through necessity
the realization that for every new piece of security equipment there is a person who, given the
challenge, will find a way to subvert, bypass, or defeat it. Todays battles with criminals are far
more often battles of intellect than they are of muscle. We may eventually see security mea
sures such as force fields, holographic security officers, and laser pistols. The future is limited
only by the security technicians imagination.
Combinations of biometric, electronic, and computer technologies will allow security and
other management personnel to follow employees from the time they enter the facility until the
time they leave it. Global positioning systems (GPS) are now available that will allow monitors
to track vehicle position within yards on a geographic earth grid. The satellite technology that
has made this possible also allows people with access to monitor activities across the globe.
By combining GPS and radio frequency identification (RFID) technologies, it is now pos
sible for retailers to track merchandise in real time. Where is that shipment of Viagra? We can
find out relatively easily. A geofence may also be created that would signal an alarm should a
load deviate from a chosen route.
In the area of intellectual technology, the field continued its rocketlike growth from a
$17 billion industry in 2001 to more than $45 billion in 2006. The strongest market will likely
continue to be in security hardware and then software, with a 16 percent growth rate.6 The
Fischer, R., Halibozek, E., & Walters, D. (2012). Introduction to security. ProQuest Ebook Central http://ebookcentral.proquest.com
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494 INTRODUCTION TO SECURITY
demand for technology is the result of increased interest in integration of all security operating
systems to include access control, surveillance, databases, GPS, and RFID technologies.
Guards equipped with wireless handheld tablets will be able to monitor surveillance cam
eras from remote locations, submit reports over WLANs, and access email and other data in
real time. It will also allow them to call up CCTV cameras and floor plans while on scene
handling a crisis situation. It is also likely that GPS technology will allow control centers to
monitor guard locations for enhanced safety and accountability. Workplace privacy issues will
always be a consideration when it comes to surveillance technology in the workplace.
Managers equipped with similar technology will be able to provide realtime updates or
alerts to officers in the field without radio broadcasts.7 Smart cameras will replace traditional
fixed CCTV and even todays stateofthe art integrated systems. These almost standalone
cameras will not rely on hardwire systems or computer support to make adjustments. Rather,
wireless technology coupled with memory chips will allow these cameras to make decisions
based on preprogrammed scenarios and send information back to the central station or to
remote computer receivers carried by security officers.
The issues associated with identity theft may remain, but with the increased use of smart
cards in place of traditional credit/debit cards, credit card operations may no longer need to
retain database information on customers. Removing critical information from customer data
bases will mean less critical information will be available to identity thieves.
WLANs may be improved through meshnetworking. Both Microsoft and Intel are look
ing at ways to make the WLAN individual systems a coherent network. Issues include ways to
provide proper security to wireless systems.8 The introduction of the iPhone is just a first step
in this process.
The future will also bring increased use of biometrics and spending as part of the layered
access security protocol.
Leadership and Management
As Tom Peters notes in his writings, the manager of the future must be able to predict and
manage change.9 In fact, Peters would probably prefer the word leader to manager. The
security leader of the 21st century will need to be flexible. As Thomas Sege, chairman and CEO
of Varian Research, notes, You have to approach things much more flexibly. Change can come
from all directions. You cant chart one course and hold to it. Course corrections are going to
have to be made.10
The author submits that if you are flexible you are still too rigid, as todays environment
requires the security manager to be fluid in dealing with events and incidents, in addition to
being a superior communicator and problem solver. All businesses will continue to stress the
benefits of cost containment management. Profit margins must be improved, and security will
be expected to offer its fair share (ROI). The security manager will thus become a security pro
gram educator and salesperson. Security managers must learn to sell security as though it were
any other product. Because CEOs think in terms of profit, a good security manager must find
ways of selling security as a costeffective return on investment.
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Chapter 19 l Security: The Future 495
For example, perhaps better lighting is needed in a particular workplace. All the CEO sees
is the cost for new lighting, but the security manager suggests it might reduce theft, vandalism,
and accidents. Will possible savings in these areas offset the cost? Probably not in the first year!
But why not project the cost of the project over five or more years? Also consider the savings in
electricity costs from installing more efficient fixtures and the possible reduction in insurance
rates. Now the CEO is interested. All of a sudden the investment is at worst breaking evenand
it might even save the company money. The bottom line will be more important than ever.
Security managers will find that safety, architecture, consulting and engineering, human
resources, compliance, transportation, telecommunications, information processing, and mar
keting will demand more from the security operation and that to develop futureoriented secu
rity programs, they must take an interest in these areas.
The security manager of the future must carefully consider terms such as integration, rightsiz-
ing, interfacing, hybrid security systems, ROI, and reengineering. The current trend is toward down
sizing and the increasing use of technology to replace or at least augment existing operations, but
the future may go beyond this trend. Even as this book is being completed, more and more pro
fessional employees are completing their work assignments using technology from their home
offices. From a security point of view these trends offer new opportunities as well as challenges.
The Challenge of Theft
Arguably, the greatest threat for security managers will continue to be employee theft. Worker
loyalty is at an alltime low. Ethical issues and a gross sense of entitlement will become impor
tant for security managers to understand as they struggle to protect company information as
well as physical assets. Employee theft will continue to cost businesses about $40 billion annu
ally. This challenge will become more complex as cybercrime continues to grow.
Education and Professionalization
Experts predict that by the year 2020 the majority of new jobs will require posts
