Scrap Metal Theft

As metal prices have risen on the world markets over recent years, so has the age old problem of metal theft. Around the world municipal, transport and communications infrastructure, as well as religious and cultural property have been targeted by metal thieves. WMW asks some of the world's leading experts what is being done about it, and what more governments, law enforcement agencies and the recycling industry itself could do to combat the issue. Kevin Whiteacre, Ph.D., director of the Community Research Center and assistant professor of Criminal Justice and Sociology at the University of Indianapolis and managing editor of www.metaltheft.net The Need for Reliable Data Most of what we know about metal theft in the U.S. is anecdotal. In the five years I have been looking at metal theft, I continue to be surprised by the shortage of good empirical data on the problem. Data is crucial for a number of reasons. Most important, there has been a long wave of new local ordinances, state laws, task forces, and partnerships meant to reduce metal theft, but it is hard to say with confidence "what works." Valid baseline data at the national, state, and municipal levels can help us assess the impacts of new regulations and practices, while allowing us to control for confounding variables, like other crime rates, regional differences, and metal prices. Basic prevalence and incidence data can also give policymakers a sense of the actual extent of metal theft, which is important when allocating resources among different interests. To that end, the University of Indianapolis Community Research Center started the Metal Theft Project in 2008 to collect data in Indianapolis. In the first six months of 2008, we counted 1520 metal theft reports. On average, 1.5 catalytic converters were stolen daily, and aluminium siding was stolen off a house once every four days. We estimated victims lost more than $7 million in the first six months of 2008. Using National Insurance Crime Bureau data, we found that the per capita number of scrap yards in a city was the strongest predictor of metal theft rates, even stronger than crime rates generally. With data shared by the Rochester police department, Posick and associates found that metal thefts are less geographically clustered than other property crimes, which has implications for prevention. Still, the most important questions remain unanswered: What exactly is the extent of metal theft in the U.S.? Which, if any, regulations work and are most cost effective? Some data does exist and is being collected. Local law enforcement agencies are collecting statistics here and there across the country and various industry groups have conducted their own surveys or maintain limited databases for their singular purposes. Unfortunately, these data sources generally remain in their respective silos, and there seems to be very limited sharing. New data needs to be collected and shared. Institutional inertia and self-interest must be overcome if we are to understand this problem nationally and locally and find appropriate responses. Importance of Police Relationships and Staff Training Gary BushNational law enforcement liaison at the Institute of Scrap Recycling Industries (ISRI) in the U.S. The recycling industry is well aware of the on-going metal theft problem, which has been occurring for a long time, and shows no signs of slowing. High commodities prices have once again attracted would-be thieves who see metal theft as a way of turning an easy buck. What can the industry do to combat this? It's important to understand the scope of the problem. Many of these crimes have evoked outrage around the country, from thefts at nursing homes or schools, to public services or even beloved landmarks. Cemeteries are not immune to these thefts. Recyclers are often victimised, as well. There are three main stakeholders in the metal theft problem. They are law enforcement, scrap recyclers, and victims - each with responsibilities. Law enforcement/prosecutors Make materials theft a high priority crime Vigorously prosecute thieves Alert crime watch programs Establish partnerships with recyclers. Scrap recyclers Establish relationships with police Take ID on all who do tot have a regular business relationship Keep records on all transactions Train employees to spot suspicious or proprietary materials Follow ISRI Recommended Practices. Victims Recognise the value of materials Secure potential target materials and reduce opportunities Mark materials for easier identification. It's critical that recyclers reach out to their local law enforcement officials. In addition to cooperating with law enforcement, invite them to your facilities, and show them what we do to combat the problem. In most states, there are currently laws in place requiring recyclers to keep records on transactions. Another important step is to train employees to spot suspicious or proprietary materials. Finally, register for and use ISRI's Scrap Theft Alert system. This is a free service provided by ISRI for use by recyclers, law enforcement and other stakeholders. Scrap Theft Alert is a web-based alert system that will notify all users within minutes in the event of a theft (www.scraptheftlaert.com). Once registered the user will begin to receive alerts for their region and will also have to ability to submit alerts for broadcast to law enforcement officers, recyclers, and other stakeholders within a 100 mile radius. There are currently over 14,000 registered users, with nearly 5500 of those being law enforcement officers. To date over 8300 alerts have been issued, resulting in107 arrests/warrants and 65 Ssuccess stories. Is a cash ban the answer? Ian HetheringtonDirector general of the British Metals Recycling Association (BMRA). The high profile of metal theft in the UK has led to regulatory reform, which is set to impact scrap metal dealers. The BMRA continues to advise UK Government on implementing the measures without damaging the country's most successful recycling sector. The last 12-18 months has seen media and political interest in metal theft skyrocket. While metal theft is highly localised and has a major impact on communities, it is a national problem demanding a national approach rather than a series of disconnected short-term initiatives from well-intentioned local police forces. The BMRA has worked with the Government as well as British Transport Police (BTP) and the Association of Chief Police Officers (ACPO) to introduce measures that are considered and appropriate, while having the maximum impact on metal theft. In January this year, BMRA with ACPO and BTP launched Operation Tornado in the north east of England to trial enhanced identification measures to provide an audit trail for all metal coming into licensed metals recycling sites. Coupled with coordinated police action across three counties the incidence of metal theft has dropped dramatically in the area and the initiative is now being rolled out across other areas of the country. Despite this, the government has been keen to do more, and in May an amendment to the Legal Aid, Sentencing and Punishment of Offenders (LASPO) bill outlawing cash payments for scrap metal came into law. Whilst the industry accepts the cash ban, BMRA has argued from the outset that any ban on cash will be ineffective in addressing metal theft unless it forms part of wider regulatory reforms. Currently the cash ban only applies to those defined as scrap metal dealers under the Scrap Metal Dealers Act (SMDA) 1964, which means that some – such as itinerant collectors and vehicle salvagers – will still be able to trade in cash. As it stands, it has the potential to seriously damage legitimate metals recyclers which will lose business. Indeed, the large number of illegal operators which do not have a licence at all will also continue to pay cash for scrap. Without regulatory reform to remove loopholes and effectively isolate and punish those which operate outside the licensing and permitting regime, the ban on cash will not have the desired impact and may even boost illegal trade. The Government acknowledges the need to replace the SMDA 1964, and is supporting a Private Members' Bill coming up for its second reading in the House of Commons. A reformed SMDA could close the loopholes relating to current legislation and provide a modernised licensing system. The BMRA continues to advise UK Government on the issue and is urging that the SMDA be replaced without delay. It is expected that the cash ban will be implemented this autumn, but if successful the revised SMDA would not be implemented until early 2013. It is imperative that the introduction of the two pieces of reform are part of a single coordinated package and are applied alongside each other to ensure legitimate businesses are protected. Recyclers: The Forgotten Victim of Metal Theft Ross BartleyEnvironmental & Technical Director at the Bureau of International Recycling (BIR) Today, ordinary people are so much more vulnerable to the consequences of metal theft. In addition to the upsetting desecration of religious buildings and memorials and loss of public art, the loss of electrical power or public transport especially for travel to work or holiday, or the loss of telephone or internet connection can all be the disruptive consequence of metal theft. In this decade alone, despite the small quantities of metal stolen, some 1% of total metal recycled, the cost of the damage caused to infrastructure and the disruption caused as a result of metal theft exceeds by far the scrap value of the metal stolen with many millions of dollars of consequential losses in a number of countries. International experience Some countries have had to be more active in responding to metal theft than others. BIR, the world federation of the recycling industries, gathers together its affiliated national associations to address policies to tackle metal theft. For example: cashless scrap trading in both France and the UK, which can be affected by neighbouring countries' businesses; or as in some countries where scrap buyers have to report transactions, an administrative burden that could threaten business confidentiality. Unfortunately, recyclers are most often the victim of theft, but crimes against business do not make news headlines. The international dimension was made clear at the spring 2012 Rome Convention, where BIR members reported increasing thefts of their metal scrap metal whilst in transit, and watched a video demonstration of a container being opened without breaking the seals. Regulations In industrialised countries scrap collectors, sorters, processors, traders, foundries and metal works are highly regulated, being registered or permitted to operate. The consequences of registered or permitted facilities receiving stolen metals can be dire and those facilities should have procedures in place to avoid buying stolen metal. In contrast, informal operators are active with or without scrap yards. While illegal facilities are taking in metals, many authorities apparently lack the ability or will to enforce existing laws. Developing countries also suffer from metal theft when public infrastructure is damaged. In developing countries, recycling is more often carried out by the informal sector, but it is still necessary to make a distinction between criminal enterprises and the informal operations. Metals vary greatly in value. Some call copper the new gold and wrongly point to Chinese demand or the international price of copper as the driver for metal theft. Iron manhole covers and lead roofs, however, are regularly stolen where in both cases these materials are a fraction of the value of copper or gold. Irrespective of government policies, where cashless or scrap purchase reporting have yet to prove their effectiveness, it is the owners of infrastructure who still need to find ways to improve the physical protection of the metal on railways, for power supply and in telephone systems. Fortunately new effective means to do so are currently being developed and deployed. Pol-PRIMETT Project The Pol-PRIMETT project in Europe is examining metal theft from, among other things, the transnational and organised crime viewpoint and has provided a forum to examine the drivers of theft. The project aims to improve collaboration between the private sector and law enforcement agencies and promotes good practice across the EU. It is comprised of representatives from the UK, Spain, Italy, Greece and Bulgaria. Time to scrap reactive legislation Brandon R. Kooi, Ph.DAssociate Professor of Criminal Justice at Aurora University. Metal theft continues to be a problem plaguing many of our communities. Recent research has confirmed what we have long suspected; the theft of metal can be tied to the international price of scrap. In the U.S., we find almost every community is touched in some way by metal theft and we remain the world's leading supplier of scrap metal with continued international demand. A couple years ago we published a guide through the federal Department of Justice, Office of Community-Oriented Policing Services, and Center for Problem-Oriented Policing to assist communities in creating proactive strategies to combat metal theft. We predicted, the issue of metal theft would continue to evolve, but it could be reduced in significant ways once an accurate analysis of the local problem is conducted. Asking the right questions Like all good problem-oriented policing initiatives, one must begin with asking the right critical thinking questions. For example, is there any tracking mechanism for calculating the amount of metal theft that is occurring in the community? If (or when) the data is collected, what do the trends look like with regard to increases/decreases? Where has most the metal theft occurred (i.e., are there hot spot locations such as abandoned buildings, construction sites, foreclosed homes, and utility companies)? Who owns or operates surrounding scrap yards and have there been any recent changes in management? What are the procedures for selling/buying metal? Are sellers identified in some systematic or standard way? How are thieves successfully stealing the metal? What is the overall financial cost to the victims? Data acquired from these analytical questions will assist the community and the police in determining an appropriate response. In other words, best practice solutions are going to vary from community to community based upon your unique analysis of the local problem. Communities should not jump to a response until they have accurately analysed their given metal theft problem. Prevention strategies A number of responses that work collaboratively with relevant stakeholders are often necessary and can be accomplished through the following situational crime prevention strategies: Increasing the Effort: Harden targets by securing metal around construction sites, utilities, and other vulnerable areas. Increasing the Risk: Work collaboratively with scrap yards to create an identification system for scrap metal sellers Let potential offenders know about ID markings on targeted metal products Conduct spot check audits of scrap yards and hold them criminally accountable for being in possession of stolen metal or not adhering to prescribed seller identification record keeping. Reducing the Rewards Prohibit cash payments from scrap yards Prohibit scrap yards from paying for obvious stolen metals Let thieves know copper ground wire has been replaced with copper weld (which is worth less in resale). Removing Excuses Conduct public awareness campaigns letting the public know about the results from the analysis of the problem so everyone is aware of the community costs Educate the community about their role in preventing metal theft (securing metal when appropriate) Educate scrap yard management about their role in helping to identify and deny the sale of stolen metal Legislation Some state legislation has called for scrap yards to tag and hold metal for a period of days. This type of legislation is reactive since it calls for making a legal case against an offender and asks the scrap dealer or metal recycler shoulder the burden of the investigation costs by keeping the metal for a specific time period. Successful prosecution from these cases may be minimal and significantly it also does little with regard to preventing future metal thefts. In addition to changing the scrap yard transaction practices, further attention needs to be directed towards creating a constant feedback loop for educating potential victims (i.e., construction companies, utility companies, etc.). The key is prevention that follows a thorough local analysis of the problem. Reducing metal theft is most likely to occur when offenders perceive some risk before they commit the offense (e.g., signs say they will be prosecuted or that surveillance is active) or find it difficult to successfully complete the transaction through their loss of anonymity. This is best done at the local level. More information on assisting communities with metal theft is available at www.popcenter.org. Metal Recyclers: The Last Line of Defence Paul RyanSecretary of the Australian Metal Recycling Industry Association The theft of metals in Australia has been an ongoing problem for years. The Australian Metal Recycling Industry Association (AMRIA) recognised quite some time ago that stolen metals such as copper and brass had a value which could be realised by criminals if they were able to sell their materials through legitimate scrap metal dealers. AMRIA also knew that if metal recyclers were aware of a particular theft they could be on the lookout for stolen material. It was to this end that AMRIA began to circulate among its members "Notices of Theft". The Australian system works with the police, who upon receiving advice from a victim of a metal theft, contact AMRIA as a part of their procedures. AMRIA the circulates to members and non members via email, a Notice of Theft which describes what was stolen, from where and gives the investigating officers contact details. AMRIA also works with a Government initiative know as Crime Stoppers which airs a brief of a crime the police are working on T.V and Radio. It should be understood that it is not the metals recycling industry thatcommits metal theft, but we are pretty much the last line of defence in catching the criminals who do. Being seen to be a part of the solution and not a part of the problem is uppermost in AMRIA thinking. As with any other type of property though, the responsibility for security of metals must sit with the owner of the metal to minimise theft. AMRIA has initiated discussions with government in the past but it is fair to say that these have not yielded any real priority in government thinking. The ability to change the nature of scrap metals by baling, shredding melting often makes the task of easily identifying stolen materials difficult. However, new techniques such as micro dots have been progressively introduced by the infrastructure companies and will assist in identifying stolen materials when they are presented to scrap metals dealers. A recent initiative by the Australian Tax office to ensure that the ATO gets its fair share of the tax take, requires that all people selling scrap metals with a value over $82.50 must present a photo I.D. at the time of selling their metals. This has had the unintended effect of providing some form of trail for police. An improvement on our current system would be for all police to be able to email dealers directly of metals rather than relying on what is in fact a voluntary system offered by AMRIA. Data Collection on Scrap Collectors Essential Heiner GroegerPresident of the German Steel Scrap Association (BDSV). Unfortunately, the theft of steel scrap has been an issue for us for several years. On one hand our member companies are hit by thefts themselves, on the other hand they get offered stolen material. The background for this is the increasing global demand for raw materials. By using secondary metallic resources, large amounts of both energy and primary raw materials can be saved. This increases demand results in rising prices. Needless to say, the scrap market is volatile. This was explicitly demonstrated during the last global economic crisis (2008/2009) with extremely low prices for scrap steel on the world markets. During times like this the collection of scrap slows, and with it the incidence of metal thefts. In times of high prices both legal and "illegal" collections grow. To support our member companies in their fight against purchases of stolen scrap we discussed the subject with police authorities on both federal and local levels. Following this we only saw the possibility to inform our member companies about thefts as soon as possible – today we use our website (www.bdsv.de) for this purpose. To be able to publish thefts we require the respective information. Generally material is stolen from scrap yards, construction areas or production plants which deliver scrap. However, thefts of materials such as cables, rails, rain pipes, etc. are usually not indicated to us. Registered Collectors We agreed that continuous registration of scrap collectors can be a reasonable means for containing theft deals. Thus we advised our member companies to establish customer files and to ask customers to present their identification card. This has been working very well during recent years. In particular, tax authorities intensively inspect payment transactions. This is especially valid for cash payments which are only approved as operating expenditures on complete customer data schedules. However, some data protection officials have expressed objections about the identification registration recently and we need assistance in our favour. Our member companies can only comply with fiscal duties and prevention of criminal acts if customer data are registered.