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Industry News August 2008


Insider theft. Deceptive inventories. Counterfeit products. Inflated bills. Unscrupulous vendors. Those are just a few examples of how fraud can creep into the supply chain.

The latest Global Fraud Report from Kroll Inc. describes the increasing vulnerabilities that occur throughout the supply chain. These risks are attributed in part to global expansion, outsourcing, and the use of new IT systems. Because supply chains are becoming more complex, new ways of cheating spring up in new places.

The pharmaceutical industry may have suffered more than most. Its complicated production, distribution, and sales practices make it particularly vulnerable to fraud. The World Health Organization has estimated that about 10 percent of drugs on the market are counterfeit, a statistic that rises to 25 percent in developing countries. The U.S. Food and Drug Administration has reported that the volume of fraudulent drugs in the supply chain increased fivefold between 2001 and 2007.

In its report, Kroll offers advice for minimizing risk. The company urges businesses to watch for “red flags,” including abnormal selection of vendors, unusual payment patterns, excessively high charges, and unexplained improvements in the lifestyle of a company or vendor employee. Some of these may signal incompetence, but others point to fraud. Readers can learn more by linking to the Kroll report


Agent Vi has been selected by the Dolmabahçe Palace in Istanbul, Turkey, to provide video analytics technology for protection of the historic facility and its contents.

RSA Insurance Ireland has selected Agiliance to automate IT processes associated with multiple compliance initiatives.

Alliance Building Services has announced that its First Quality Maintenance and Classic Security divisions have received contracts to provide janitorial and security services at New York’s 2 Herald Square, owned by Sitt Asset Management.

CNL was invited by IFSEC to lead the integrated management platform for its IP Innovation Center.

Datastrip Inc. has joined forces with Codebench to integrate their respective products for FIPS 201-compliant identification card verification.

Foundry Networks and Secure Computing have formed a comprehensive security solutions partnership to reinforce enterprise gateway security through Web, messaging, and network gateway security.

Butler University in Indianapolis has selected Instant Alert Plus from Honeywell to communicate with students, faculty, and staff during emergencies.

Enjoy Group has chosen an IP video system from IndigoVision as a surveillance solution for all nine of its casinos in Chile. The IP storage solution will be provided by Intransa and installed by Bitelco Diebold Chile.

Friendly’s Ice Cream Corporation is using a credit card payment security solution from Merchant Link, LLC.

At the Boston Marathon, Strix Systems deployed its wireless system as the foundation for the multiple integrated wireless video surveillance systems that delivered video images to state and local public safety agencies. Live video and recording management was enabled by Axis Communications IP cameras and a client-server platform from Milestone Systems. Connectronics and Galaxy Internet Services facilitated the installation.

ADI, Altronix, and Security America Risk Retention Group have joined Honeywell Security as Executive Strategic Partners of the National Burglar & Fire Alarm Association.

WEBHELP SA is using the Interaction Analytics solutions from NICE Systems at 15 of its sites to enhance its customer contacts.

ObjectVideo has partnered with ESP Group to provide a complete video surveillance system to 40 Norwegian airports.

The University of Minnesota has selected a two-factor authentication solution from Secure Computing Corporation to replace traditional passwords for its staff and faculty.

Securitas Systems Sverige AB has signed an agreement with Saab AB to supply customized security systems and services to new detention centers and remand prisons in Sweden. The agreement is part of a contract between Saab and Specialfastigheter AB.

Spybusters LLC has selected a Tektronix Real-Time Spectrum Analyzer to identify wireless eavesdropping devices in clients’ facilities.

UPEK, Inc., and IDology, Inc., have partnered to deliver an identity verification and authentication solution for online businesses and their customers.

SightLogix Inc. and videoNEXT collaborated to implement a video surveillance system for a high-security military installation.


Adesta, LLC, will design and deploy an access control, CCTV, and video analysis system for the Port of Los Angeles.

ARINC Incorporated will provide its electronic security and control platform to the U.S. Department of Energy for monitoring and control of security at the U.S. Strategic Petroleum Reserve.

Arteco has installed its intelligent video solutions systems at the Florissant Police Department (Missouri).

Atlantic Diving Supply, Inc., will provide a suite of ballistics equipment to the Pentagon Force Protection Agency, including helmets, body armor, and ballistic door panels for vehicles.

The Long Beach City School District (New York) is using network cameras from Axis Communications to provide public school security.

BAE Systems will develop a secure mobile military communications network designed to protect against cyber attacks under a contract awarded through the Defense Advanced Research Projects Agency.

An emergency gate access control system from Click2-Enter, Inc., has been chosen to fulfill requirements of new ordinances in the City of Savannah and Chatham County (Georgia). The regulations mandate that all electromechanical gates must be fitted with a public safety radio frequency-controlled, mutual-aid compatible emergency gate access control system.

Cooper Notification announced that the Greater Houston Transportation and Emergency Management Center has launched its Roam Secure Alert Network for emergency notification.

Cooper Notification’s alert network has also been deployed by Philadelphia, Pennsylvania, and five surrounding counties in Pennsylvania and New Jersey.

CryptoMetrics has been awarded a contract to provide face recognition products and services for the Taiwan Bureau of Consular Services ePassport project.

The Cincinnati Police Department (Ohio) has deployed automated license plate recognition technology from Federal Signal Corporation.

Gemalto has secured a new contract to supply electronic card driver’s licenses to the states of Mexico, Veracruz, and Sonora, Mexico.

GE Security, Inc., has sold two explosives detection systems to Toluca International Airport in Mexico for baggage screening.

ICx Technologies has won a research and development contract under the U.S. Department of Homeland Security’s (DHS) “Detect to Protect” project. The goal is to develop rapid sensors that can limit exposure to an attack involving biological agents.

Ideal Innovations has established a partnership with the U.S. Army Joint Manufacturing and Technology Center, Rock Island Arsenal, Illinois, to produce armor for the Bull version of the Mine Resistant Ambush Protected II Vehicle.

I.D. Systems, Inc., has received purchase orders from the U.S. Postal Service to deploy its industrial vehicle management system at 16 additional mail distribution facilities.

IndigoVision is providing CCTV surveillance for the Madhya Pradesh State Mansion in New Delhi, India.

Video management software from On-Net Surveillance Systems, Inc., is part of a wireless surveillance installation at Mission Beach in San Diego, California. provided software, wireless networking, and the cameras for the system, while Dotworkz Systems provided the hardware. The San Diego Police Department monitors the five-camera system.

Raytheon Company has deployed the first increment of the National Data Exchange law enforcement information system for the FBI.

Polk County School District (Florida) has implemented bioLock, a biometric access control and fraud mitigation solution from realtime North America Inc., to protect its critical transactions using SAP software.

Sagem Sécurité will provide portable voter enrollment stations for registering voters’ biometric data to the Republic of Guinea. The company was chosen by the Inter-Agency Procurement Services Office of the United Nations Development Programme.

Secure Systems has renewed its contract with the State of New York’s Office of Mental Health, which provide users with a Personal Alarm Locator, a key fob with a panic button that enables law enforcement or security departments to locate the user when pressed.

Sentry Technology Corporation is providing more than 100 SentryVision Smart-Track traveling camera systems to the Mexico City Subway system.

Siemens Building Technologies, Inc., has partnered with Rankin County School District (Mississippi) to create new security solutions for the schools.

Smiths Detection, working with the Transportation Security Administration, has installed its advanced threat identification x-ray systems at the Albuquerque Sunport airport.

Steelbox Networks and its OEM partner Telindus Surveillance Solutions Ltd. have delivered an integrated video surveillance system for deployment on six stations of the Incheon Subway in South Korea.

Telos Corporation has been named a partner by L-3 Services’s Global Security and Engineering Solutions unit on its tactical video capture system contract with the U.S. Marine Corps.

Tiburon, Inc., has signed a contract to provide an integrated public safety system for Polk County, Florida. The system includes dispatch, law enforcement records management, jail management, civil process, and mobile reporting systems that support public safety and justice agencies.

Rio de Janeiro, Brazil, has expanded its deployment of the Nextiva Critical Infrastructure solution from Verint Systems Inc. to improve its citywide surveillance system.

VirTra Systems has received an order for its small arms training simulator from Phelps County Sheriff’s Department (Missouri).


Advanced Software Products Group and Innovation Data Processing have announced a strategic alliance. Companies can purchase both MegaCryption and FDRCRYPT at a significant discount through the alliance.

Convergint Technologies has entered a distribution agreement with GuardRFID to provide its customers with active RFID solutions.

DataCom Systems and EVT have announced a new partnership under which Data-Com will market and support EVT’s video management systems and networked video recorders in the United States.

EMRISE Corporation has entered into an agreement with Brilliant Telecommunications for the sale and marketing of products and access to Brilliant’s technology.

Human Recognition Systems has launched a new Web-based company, Simply Biometrics, that offers biometric technology from leading companies such as Ingersoll Rand, Panasonic, Hitachi, Fujitsu, Sagem, Bioscrypt, CrossMatch, and L1.

I.D. Systems, Inc., and Zetes Industries have agreed that Zetes will market I.D. Systems products and services throughout Europe.

March Networks will collaborate with Sun Microsystems to jointly market IP surveillance solutions to enterprise organizations across North America.

Mayflower Sales Company, Inc., is selling the new Logic electromechanical keys and cylinders from Medeco.

Route1 Inc. and Giesecke & Devrient have executed a collaborative agreement to develop and market devices using Rout1’s MobiNET platform.

Wick Hill has announced that it is making additional credit available to its reseller partners to help them take advantage of the growing demand for security products and expertise.


ABB earned the 2008 Global Low Voltage Electric Drives Company of the Year Award from Frost & Sullivan.

Maxim Series Access Power Controllers and StrikeIt1 Panic Device Power Controllers from Altronix have earned the cUL listing Underwriters Laboratories of Canada. The products had already earned the UL listing.

Contigo was issued a U.S. Patent for its technology for monitoring the movements of mobile items.

Fortent has been named one of the top innovators of 2008 by Bank Technology News.

Imperva announced that its SecureSphere Web Application Firewall has achieved the ICSA Labs’ Web Application Firewall Certification.

IndigoVision was honored with the 2008 European Network Video Surveillance Award for Customer Value Enhancement by Frost & Sullivan.

Middle Atlantic Products named GP Marketing of Redmond, Washington, its 2007 Security Market Representative of the Year. Winner of the Outstanding Representatives Award for Most Improved in Territory was Vihon Associates, LLC.

Risk Management Associates, Inc., was honored at the Greater Raleigh Chamber of Commerce (North Carolina) Pinnacle Awards as the 2008 recipient of the RSM McGladrey, Inc., Integrity in Business Award. The award recognizes companies that demonstrate dedication to corporate responsibility, integrity, and ethics.

Sipera Systems announced that its Sipera IPCS line of security appliances has been designated a Nortel Select Product.

UPM Raflatac has been ranked at the top in the latest Vendor Matrices released by ABI Research.

Veracode is the recipient of two 2008 SC Magazine Europe awards. SecurityReview won in the Best Vulnerability Assessment Solution category, and the company was honored with the SC Innovation Award for technology innovation in the IT security industry.

Verizon Business was named a Top Siemens Reseller Partner by Siemens Communications, Inc., and won the 2007 Siemens Pinnacle Partnership Award.


ADI has expanded its training program with new courses in fire, IP, and audio/video topics.

Archer Technologies has launched the Archer Exchange, an online marketplace of on-demand applications, services, content, and integration solutions.

Astaro Corporation has joined The Green Grid, which advances energy efficiency in data centers and business computing ecosystems.

Convergint Technologies has opened a new technology center in Littleton, Colorado, where it will design, install, and service electronic security systems in the Rocky Mountain region.

Honeywell has launched the Vindicator System Integrator program, which recognizes the commitment that integrators make in delivering Vindicator products and solutions for end users.

I.D. Systems, Inc., has acquired PowerKey and launched a new wireless product, PowerKeyPLUS, for the entry-level segment of the industrial vehicle management market.

The Incident Management Training Consortium has introduced a DHS-compliant Incident Command System all-hazard incident-management training curriculum.

IQinVision has moved its headquarters to a larger facility in San Juan Capistrano, California.

Global risk management firm iSIGHT Partners has opened a new office in Dalian, China.

M. Malia & Associates, Inc., has moved to larger offices in Egg Harbor Township, New Jersey.

The National Retail Federation and International Council of Shopping Centers have created a mall security training video to combat retail theft and organized retail crime.

OSRAM has opened a new Asia regional headquarters for its subsidiary OSRAM Opto Semiconductors Asia Ltd. in Hong Kong.

Securitas Systems has changed its name to Niscayah Group AB.

Security Network of America is celebrating its 20th anniversary.

Senstar-Stellar has unveiled a new name and logo to reflect a contemporary image.

Splinternet Holdings, Inc., has acquired Vidiation, Inc., in order to commercialize Splinternet’s radiation detection architecture and alert system.

Swann Security is supporting the efforts of Crimestoppers in the United Kingdom.

Wren has launched a new blog on school security to serve as a resource and forum for leaders in education. It can be found


CSO Roundtable Accepting Applications

The CSO Roundtable, a by-invitation-only group of ASIS International that serves senior security executives in major organizations, is now accepting membership applications. Launched by ASIS in 2004 to give top security executives a stronger voice in business and public policy, the CSO Roundtable has now become a full-service membership group offering an exclusive array of benefits.

“The CSO Roundtable is dedicated to assisting security executives in their careers and to elevating the status of security professionals in the CSuite and the boardroom,” says Regis Becker, CPP, Global Director of Security and Compliance of PPG Industries and cochair of the CSO Roundtable Advisory Board. Another key goal is “developing the next generation of security leaders,” Becker adds. That’s why CSOs will be able to nominate up to four directly reporting staff for membership.

Among the benefits of membership are a password-protected Web site containing policies and procedures, metrics, articles, and other knowledge items; free resources and tools provided by partners;

CSO-specific news; and a private- messaging function.

The most popular aspect of the Web site thus far has been the discussion section, notes Don W. Walker, CPP, chairman of Securitas USA and cochair of the CSO Roundtable Advisory Board. In that Web site area, members post items and comments on topics ranging from guns in the workplace to contingency planning in Africa. “The discussion area allows for frank, open exchange among CSOs on issues critical to the industry,” says Walker.

The CSO Roundtable held its inaugural meeting in April in Washington, D.C., highlighted by keynote presentations by former U.S. Ambassador to the United Nations John Bolton and former homeland security presidential advisor Frances Fragos Townsend. Attendees called the event “outstanding in every way,” “a complete success,” and “well worth the investment.”

Eligibility criteria for the CSO Roundtable can be found

ASIS European of the Year

Don Randall, MBE (Member of the Order of the British Empire), senior vice president and international security manager of JP Morgan Chase has been selected as the ASIS International European Person of the Year. Randall received the award in April at the ASIS International Annual European Security Conference in Barcelona (see below).

Randall has been an invaluable part of Project Griffin, which began as a joint initiative between the London Metropolitan Police Service and the City of London Police, to provide advice and training to managers, security officers, and workers from large organizations across London on security and counterterrorism issues. There are three principal parts to Project Griffin: counterterrorism awareness, communications, and emergency response. The aim is to enhance the knowledge and capability of all managers, security personnel, and staff working with the public.

The ASIS European Person of the Year Award is presented each year to recognize outstanding accomplishments advancing the security profession in Europe. The nominee should be highly regarded in Europe and known to be a strong contributor to the improvement of the standing and image of the security profession.

Queen Elizabeth II previously honored Randall with the rank of MBE for his services to law enforcement.

Spain Hosts European Security Conference

by John Barham

Barcelona, Spain, was chosen as the venue for this year’s ASIS International European Security Conference in recognition of Spain’s growing importance in the European Union and its vulnerability to homegrown and foreign terrorism. Using improvised explosive devices, terrorists killed 191 people traveling on Madrid commuter trains in 2004, making this the worst terrorist incident in recent European history.

Conference Chair Arjo DeJong, partner at Amsterdam-based Ernst & Young Security and Integrity Services, introduced Fernando Reinares who gave the opening keynote address. Reinares is director of the program on global terrorism at Madrid’s Elcano Royal Institute as well as chair of the European Commission’s expert group on violent radicalization. One of the points Reinares made was that although al Qaeda may be viewed as a loose federation or grouping of terrorist franchises, it still presents a mortal threat to Europe and the United States. Reinares said he disagrees with analysts who believe that “Al Qaeda no longer exists” as a coherently structured organization. “The fact is that al Qaeda has relocated to the tribal areas of Pakistan. It is very resilient and has an outstanding capacity of adapting to a changing environment,” he said.

Al Qaeda has “provided training and indoctrination for thousands and thousands of individuals from around the world,” Reinares said. And while al Qaeda is losing support in the Muslim world and is under pressure from Western counterterror efforts, it still has considerable clout via providing financial resources, helping to select targets, and organizing logistics. “Al Qaeda is not the only player in international terrorism, but it is the primary reference point,” he said.

The good news is that polls show a continued decline in support for al Qaeda in the Muslim world since 2002, while Western security and law enforcement agencies are cooperating and sharing intelligence as never before. Reinares pointed out that the “vast majority of victims of al Qaeda are Muslims.”

John Didden, a Dutch intelligence officer and security consultant with decades of experience in the Middle East, warned attendees that while Western intelligence services are working and cooperating well, much still needs to be done. “Infiltration [of terrorist groups] is improving but is not sufficient yet, and information is still coming mainly from arrests,” he said.

He added that resentment toward the West runs deep in Middle Eastern societies. This sentiment “is growing very, very quickly. Hate against the West is growing and language against infidels is growing in schools and mosques.” These extremist views are present even in the security forces of pro-Western governments, said Didden. He also highlighted the deepening rift between the Sunni and Shia branches of Islam as the Iranian government moves ahead with a plan to subvert Arab governments and spread its revolutionary model of Islamic rule.

David Cresswell, a former British Army officer, said in a presentation on risk modeling and terrorism that neither the security management community nor ASIS are leading the field in terrorism risk analysis. U.S. government bodies such as the Federal Emergency Management Agency and industry associations like the American Petroleum Institute have developed sophisticated risk management tools.

Glenn Schoen, senior manager for Ernst & Young Security and Integrity Services, gave a detailed presentation on the differing, and often confusing, alert levels implemented by European governments. The use of threat levels to alert emergency services, and later the public, began in the 1960s and 1970s in Spain, France, and the United Kingdom as these governments responded to mainly domestic threats.

Since 9-11, these programs have grown more detailed and drawn in private sector companies. Most European countries (with the notable exception of France) have privatized their infrastructure. Yet there is little coordination among governments on which events trigger alerts, how long they last, and the levels of response. This is a recipe for confusion that requires a greater role for the European Union to establish standards and improve cooperation between the 27 member states’ national agencies, Schoen said.

Few countries have developed more complex or effective ways of curbing terrorism than Israel. Ivor Terret, CEO of Israel-based Multi Tier Solutions, described how terrorists—and criminals—carry out target reconnaissance and surveillance. Companies able to detect these activities can deploy simple techniques, such as directing security guards to interact with suspected scouts to deter attacks or assaults. Before setting up his company,

Terret worked alongside the Israeli security services and was a founding member of a government surveillance detection unit that specialized in both surveillance detection and cover protection. Terret also warned companies to be careful in providing public information about their activities and the movements of security personnel. Key information is already available on the Internet, such as the addresses of senior executives or aerial imagery and can be exploited by terrorists. Companies need to be aware of these vulnerabilities when they carry out corporate security planning.

The U.K.’s Justin King, CEO of London-based consultancy C2i International, told attendees about the growing threat from violent groups that are infiltrating legitimate nonviolent environmental, peace, and animal rights movements. King, a former intelligence and security officer in the British armed services, commented that militants have targeted national infrastructure such as London’s Heathrow airport, military installations such as the nuclear base at Faslane, Scotland, and events such as the Defense Systems and Equipment International Exhibition.

King said, “their aim is to cause maximum damage” and “create mayhem.” The structure of these groups has evolved from hierarchies, which left them vulnerable to infiltration by security services, to an “insurgency approach” operating with a cellular, decentralized network.

Terrorism was far from the only subject on offer in Barcelona. Other presenters focused on issues as varied as the psychological dimensions of cybercrime and the role of corporate investigations. The latter topic was addressed by Christoph Rojahn, chief of fraud and investigations at Zurich Financial Services.

Rojahn discussed how inhouse corporate investigators can and should branch out into market intelligence and due diligence activities as a way to add value to security management tasks. He said that security managers are “reactive and focused on direct threats” by tradition. They need to become more involved in strategic business decisions.

Security managers can go as far as setting up a network of industry experts and analysts to provide confidential information. However, managers cannot risk violating the law or business ethics. He urged security managers to keep their business intelligence arm separate from their traditional security functions.

Andrew Fahy, chief security officer at Ireland’s national broadcaster RTE, warned in his presentation of the threat from Bluetooth technology and the ubiquity of cell phones and other portable electronic devices. Criminals can send viruses to handsets using Bluetooth connections and turn them into listening devices. “The threat from GSM [cell phones] is huge,” said Fahy.

The closing keynote speech was given by Gijs de Vries, former EU counterterrorism coordinator who is now a senior fellow at the Netherlands Institute of International Relations. He said that the United States and European countries have taken different approaches to combating terrorism. The United States has constructed its counterterrorism strategy on the basis of a “war paradigm,” while European governments view a “crime paradigm” as both more effective and more in line with the values of Western democracies.

“For the U.S. to return to a mainstream interpretation of human rights and humanitarian law in the fight against terrorism is, therefore, a key security interest of Europeans. In the fight against terrorism, the West needs to agree on a new paradigm, one based on respect for international law. Establishing a joint transatlantic new paradigm deserves to rank at the top of EU talks with the incoming U.S. administration,” he said.

John Barham is a senior editor of Security Management.