Cash Connect & ATMIA Publish Armored Carrier Best Practices Guide for the USA
Newark, Delaware – In response to increasing carrier-related losses and rising cash insurance rates, Cash Connect, working with the ATM Industry Association, has published a new Best Practices Guide for armored carriers and ATM service companies, also referred to as cash-in-transit providers (CIT providers) operating in the United States.
The guide, which details 128 Best Practices, has been developed in partnership with Brink’s, Lowers & Associates, and American Special Risk and has been endorsed by the ATM Industry Association (ATMIA).
In recent years there has been a significant increase in cash thefts associated with CIT providers at their vaults, in-transit, and even after the funds have been loaded into the ATM. In 2010 alone, there were numerous such losses including: a high-profile theft where a carrier’s owner stole tens of millions of dollars out of their own vault; a bold robbery of a carrier vault which resulted in a loss of millions; and numerous bill denomination frauds netting hundreds of thousands of dollars that may have been prevented by the carrier using stronger processes while servicing the ATMs.
“ATM cash differences, thefts, and losses can quickly erode the profitability of an ATM program and drive up insurance rates,” said John Clatworthy, SVP of Client Services at Cash Connect. “Implementation of these Best Practices will significantly enhance the security of funds and protect the long term profitability and viability of the ATM Industry.”
The guide covers areas such as insurance requirements, external audit requirements, access controls, transit procedures, and physical security.
“We can’t control fuel costs, interest rates, or market saturation, but we can better protect the cash, which will directly impact insurance rates by reducing losses through adopting Best Practices for CIT Providers.” said Tom Stevenson, President and founder of Cash Connect.
Cash Connect has surveyed all of its approved CIT providers to determine which of these Best Practices are currently being followed. Cash Connect is also conducting on-site audits of each CIT provider for the same purpose.
“We are in an economic climate where we must remain vigilant,” said Mark Lowers, President of Lowers & Associates. “Without meaningful security provisions and an ongoing commitment to adhere to them, the exposure to incidents of theft, fraud, embezzlement, etc., remains for the CIT industry. The alternative is increased outside regulatory scrutiny and the potential for more frequent and severe loss experience, something that the CIT industry simply cannot continue to sustain. Implementation of these Best Practices will add a major hedge of protection around both the ATM and CIT industries.”
Tom Stevenson said he has been pleased so far at the positive response from CIT providers, many of whom are also facing heavy insurance premium increases and recognize the need to strengthen security measures. “Most armored carriers recognize that significant changes need to be made in order for underwriters to gain confidence that the upward trend in losses will be reversed,” said Stevenson, who travelled to London in November to meet with insurance underwriters, pledging a push for major security improvements in the US CIT industry.
The guide was previewed at the ATM Industry Association annual conference in February. ATMIA has since endorsed the guide.
“We applaud Cash Connect and their partners for their leadership in drafting these guidelines and advancing their implementation for the benefit of the entire industry,” said Mike Lee, CEO of ATMIA “Security continues to be one of the top issues facing the ATM industry and one that must continue to be addressed in order to stay ahead of criminals. We’re pleased to endorse these Best Practices and urge all CIT providers to implement them.”
About Cash Connect
Cash Connect provides over $6 billion annually in ATM Vault Cash to nearly 11,000 ATMs in all 50 states, Puerto Rico and the US Virgin Islands. A division of WSFS Bank (NASDAQ: WSFS) in Wilmington, Delaware, Cash Connect prides itself on outstanding customer service, and helping ATM deployers manage their program more efficiently with complementary services such as cash forecasting and armored carrier management. In 2010, Cash Connect was honored with the ATM Industry’s Award for Excellence, presented jointly by ATMIA and ATMMarketplace.com
The ATM Industry Association is a global non-profit trade association with over 2,100 members in 60 countries. Its mission is to promote ATM convenience, growth and usage worldwide, protect the ATM industry’s assets, interests, good name and public trust; and provide education, best practices, political voice and networking opportunities for member organizations. In June 2003, ATMIA established the Global ATM Security Alliance (GASA) (www.globalasa.com) with the mission to employ global security resources in a united alliance in order to protect the ATM industry from criminal activity.