AVERAGE CONTRACTOR LOSS TOPS $10,000

• NCJ Number: 62600
• Journal: Security Management Volume: 23 Issue: 10 Dated: (NOVEMBER 1979) Pages: 42-44,46
• Author(s): H J BALEVIC
• Date Published: 1979
• Length: 4 pages
• Corporate Author: American Soc for Industrial Security
• Publication Format: Article
• Language: English
• Country: United States of America

Annotation

THE INCREASED INCIDENCE OF FARM, INDUSTRIAL, AND CONSTRUCTION EQUIPMENT THEFT IS DISCUSSED, AND THE LOW RECOVERY RATE FOR OFF-THE-ROAD EQUIPMENT IS EXAMINED.

Abstract

THE ASSOCIATED GENERAL CONTRACTORS ORGANIZATION REPORTS THAT THEIR MEMBERS LOSE $728 MILLION ANNUALLY TO THIEVES AND VANDALS, AN AVERAGE OF MORE THAN $10,000 PER CONTRACTOR. STUDIES CONDUCTED BY OTHER TRADE GROUPS AND FARM ORGANIZATIONS INDICATE THAT THE COST OF ANNUAL EQUIPMENT THEFT EXCEEDS $1 BILLION. THE PROBLEM FOR CONTRACTORS IS THAT INFLATION HAS ESCALATED THE COST OF REPLACING MACHINES AND INSURANCE COVERS ONLY PART OF THE LOSS. MOREOVER, DUE TO MARKET CONDITIONS, THE DEMAND FOR A PARTICULAR PIECE OF EQUIPMENT MAY BE HIGH AND THE WAITING PERIOD FOR REPLACEMENT MAY BE LENGTHY. ONLY 5 TO 10 PERCENT OF STOLEN EQUIPMENT IS OVER RECOVERED. REASONS FOR THE LOW RECOVERY RATE ARE: MACHINES ARE NOT LISTED AS STOLEN IN THE NATIONAL CRIME INFORMATION CENTER; LAW ENFORCEMENT OFFICIALS ARE NOT FAMILIAR WITH OFF-THE-ROAD EQUIPMENT; OFFICERS EXAMINING SUSPICIOUS EQUIPMENT CANNOT ALWAYS LOCATE THE SERIAL NUMBER AND THUS HAVE NO IDENTIFICATION DATA FOR AN INQUIRY; AND PROSECUTION OF THEFTS IS INFREQUENT. AN ANALYSIS OF EQUIPMENT FRAUD INVOLVING FINANCIAL INSTITUTIONS INDICATES THAT COLLATERAL IS NOT VERIFIED, INACCURATE OR INCOMPLETE SERIAL NUMBERS ARE OBTAINED, NO ATTEMPT IS MADE TO DETERMINE IF EQUIPMENT IS CURRENTLY FINANCED ELSEWHERE, OLD EQUIPMENT IS BEING FINANCED AS NEW OR LATE MODEL EQUIPMENT, AND VERIFICATION OF EQUIPMENT PURCHASES IS NOT CONDUCTED. MANUFACTURERS, DEALER ORGANIZATIONS, FARM GROUPS, AND CONSTRUCTION ASSOCIATIONS ARE SEEKING SOLUTIONS TO THE PROBLEM OF EQUIPMENT THEFT BUT ARE AGAINST GOVERNMENT TITLING AND REGISTRATION BECAUSE THEY VIEW THESE AS REVENUE-PRODUCING MECHANISMS. THE SOLUTION LIES IN EQUIPMENT CERTIFICATION, A COMMITMENT BY MANUFACTURERS TO PROVIDE SUITABLE DOCUMENTATION FOR THEIR MACHINES. (DEP)