Bank and Industrial Security
description
Transcript of Bank and Industrial Security
Omega Traders (India)39/4, Mohammad Pur, 1st. Floor(Near Bhikaji Cama Place)New Delhi - 110066 [email protected]: Thomoson Press, Okhla, Delhi
Published bySecurity Engineers Pvt. Ltd.109/5A, Hazra Road,Kolkata - 700 026 (INDIA)Tel.: ++ 91 24546764Fax : ++ 91 33 24546440E- mail: [email protected]
ISBN - 81-908948-0-7Bank and Industrial Security — A Normative Approach
Copyright Subhendu S. Mukherjee©
Cover PhotoThe Floral Clock, a symbol of Geneva Photo : S.S. Rajput
Back Cover PhotoModel facade of a bank in witzerlandS Photo : The auther
Printed by
No part of this publicationc a n b e r e p r o d u c e d o rtransmitted in any formwithout written permissionof the author
First Edition : October, 2009
PriceINR 975US$ 25.00
PREFACE
l
Afflicted with the recrudescence of crimes pervading the contemporary society
Ms.Kathleen Smith, a former assistant governor of Holloway Prison, U.K. commented
in her inimitable style, “Crime is now an economic investment for those who fancy big
returns with some small risk : exciting to plan, thrilling to commit, sordid but
sensational when found out, richly respected when not … Prison is now less a place of
horror and more an economic factory in criminal reckoning — a sentence is the 'period
of risk' between the 'investment' and 'maturity' ”. Never before, did the
observation appear so relevant than in today's context of global situation. The
growing incidents of offences against body and property drive home the point that
the society is still grappling to provide an immaculate environment to its citizens.
It is commonly believed that crime always changes in pace with changes in
socio-economic and socio-political fabric of a country. The lust for money, appalling
poverty, growing frustration among the youth and the 'demonstration effect' largely
contribute to the causes of economic offences. People feel attracted to criminal
behaviour because they do not see the benefits of clinging to conventional social
values. They are driven to believe that crime is a way to ameliorate personal economic
conditions and to enhance social status. The phenomenal development in information
technology further aggravates the pace of organized crime by enabling the criminals
to be acquainted with the new tentacles of crime perpetrated in other parts of the
globe. As a result, the banks, vital installations and institutions holding massive
liquidity, invaluable artefacts, antiques, documents etc. are getting increasingly
prone to criminal attacks-both from within and without. The banks being the
repository of huge unidentifiable liquidity become the soft targets of external
attacks. Similarly, there exists an equal or greater threat on the property of such
institutions from within. The crimes perpetrated on banks and industries may,
therefore, be classified into two broad categories - external and internal. External
crime involves offences such as theft, robbery, dacoity, dacoity with murder,
burglary, extortion etc. Whereas internal crime includes offences like frauds,
forgeries, misappropriation, cheating, bribery, cyber-attacks and several other
white-collar crimes. A dispassionate analysis of external crime reveals that they are
mostly planned by the outside criminal agencies. But there are innumerable cases,
where the role of inside operators is not above-board. It appears that internal crime
is usually committed by the insiders either direct or in collusion with outsiders. In
sum, the single-most important factor which may keep a bank out of business is
internal crime and the factor which can put public confidence at stake in banking
operation is external crime. But the huge loss thus incurred by the financial
institutions, whether by isolated 'retail crimes' or by systematic institutional
'wholesale crimes', put the authorities in a pillory. The smug notion of correctness
has been the signature tune of majority of the institutions. Internal security
management has, therefore, a clear and specific role to play in the interest of the
institutions and the nation as a whole. I have, therefore, examined the whole gamut of
problems of security in the perspective of well-defined physical, document and
personnel security policies of banks and industries. The methodology adopted in the
book to interpret security and risk-management is explained in a sketch (Annex-1).[ 4
] A pertinent question, however, arises at this stage why some individuals alone
indulge in crime, when majority of the people are averse to it, even when they are
subject to same socio-economic conditions. The society is replete with anomalous
situations where a poor taxi driver or a street beggar returns the lost bag of
ornaments and valuables to its lawful owners, but a section of the privileged few
consciously yields to the provocation of high financial irregularities and systematic
institutional corruption. I have made an endeavour in this book to find out the answer
to a basic question agitating the minds of all whether criminals are born or made. In
other words, I have further goaded the “Nature versus Nurture” debate to
adumbrate its relevance in the field of security. A comprehensive study has been
made in the book on the underlying psychological and biological factors involved to the
problems of bank and industrial security. Most of the studies hitherto made on the
subject suggest palliative measures in containing heinous offences rather than
eliminating 'PEN' factors (Phychoticism, Extraversion and Neuroticism), as
propounded by professor Hans Eysenck. I have examined in detail the need and
relevance of study of this important aspect of human behaviour i.e. “personality” in
selection of vanguards in key position of the banks and other sensitive institutions. I
have dwelt on the subject with the canny mix of empathy and critical enquiry. [ 5
] To my mind, the existing studies and practices on bank and industrial security
are rather scattered and they need to be holistic in approach. I have, therefore,
taken a normative and macro approach based on behavioural pathology to spell out the
concept of physical, document and personnel security concerning banks, vital
installations, archives, museums and art galleries. The behavioural scientists feel
that the determinants of human behaviour, to a large extent, is influenced by
genetics. They are further of the opinion that chromosomal anomalies, environmental
allergies combined with a particular genetic make-up and body chemistry, may
predispose some individuals to criminal behaviour. In the circumstances, the study of
modus-operandi of crimes perpetrated on industries is an imperative need. It should
be carried out on an on-going basis and the information to be shared among the banks
and industries through a Modus-operandi Bureau with a view to evolving cohesive
security policies. [ 6 ] I further suggest that the present security guidelines should
be supplemented with passive resistance measures which have a very pragmatic and
important role to play in prevention and detection of industrial crimes. In reality, the
unarmed employees are not generally expected to offer active resistance during any
hold-up. But they may be equipped with the knowledge of passive resistance. Hence,
the role of forensic science and electronic aids in preventing industrial crimes should
[4]
be extensively incorporated in the training syllabi of security and risk-management
for all categories of employees and executives.
In modern world, nobody can gainsay the fact that the spectre of terrorism
threatens the minds of people in particular after the high-profile attack on
September 11, 2001, even though serious discussion began in 1980s on the subject.
Banks are also not free from terror attacks. Terrorist groups aim at bank robberies
and extortion to finance their acts, especially when they lack sponsorship from
sympathetic nations. The famous “Stockholm Syndrome”, which indicates an
anomalous affection and loyalty by the hostage for kidnappers, arose not from a
political terrorist incident, but from a bank-heist. A study has, therefore, been made
in the book which will help identifying the role of terrorist in bank crimes as also the
devices to combat them. I feel that while keeping abreast of the techniques to
neutralize terror attacks, the industrial authorities should have a transparent idea on
the perspectives of terrorism. It may not, therefore, be irrelevant to acquaint the
readers with the ideas and thoughts of some of the experts of international repute on
the manifestation and evolution of terrorism, the psychological factors concerning
the rise and growth of modern terrorism and their recommendations relating to
prophylaxis of terror victims. It is undeniable that all top executives and officials
holding key position in banks, industries and other significant areas should be
imparted segregated training of anti-terror mechanism, as any one of them can be a
prospective hostage in the hands of the terrorists in years to come. The idea behind
inclusion of two chapters on terrorism is to hold out a picture of terror's tentacles to
unleash mayhem throughout the world.[ 7 ] In these days, it is unequivocal that
all financial and sensitive institutions are susceptible to internal crimes such as theft,
frauds, forgeries, cheating, misappropriation, sabotage, arson, corruption and
criminal breach of trust. The perpetrators of such offences silently attack an
institution like iceberg and cause a sequence of unspeakable social and economic
disaster. The responsibility of the security organization, cannot be eschewed in this
regard. I have, therefore, devoted last three chapters of the book on internal
security which, inter-alia, spells out measures as important steps towards doing away
with the evils of corruption. The concept of industrial security, especially bank
security, is still on the anvil and accordingly it underscores the need for continuous
research and updating the subject. On my part, the book could not have been written
without constant reference to the venerable thinkers and writers such as H.J.
Eysenck, W.F. Ogburn, Hary Soderman, Hans Gross, Lawrence Z. Freedman, Robert
Hauben, Clive C. Aston, Peter Hamilton, Rik Coolsaet and others.[ 8 ] I express my
profound gratitude to Government of India, Reserve Bank of India, the I.B.R.D,
Indian Banks' Association, UCO Bank, Andhra bank and Indian Bank for my utilising
some of their studies concerning bank security to enrich knowledge of security and
operational people and the general readers as well. I am also immensely grateful to
Shri R. Janakiraman, the then Deputy Governor, Reserve Bank of India, for his
[5]
personal appreciation of work done by me as a Member of the Working Group to
prepare training-syllabi on bank security and risk-management.
I am very much grateful to Messrs. Peter Buchegger, the Senior Expert,
Communication Division, Ocsterre Cichische National Bank, Vienna (The Central Bank
of Austria), Karl C. Oellerer, C.E.O., Carlos, Vienna, J. Michel Brunner, General
Manager, STB, Switzerland, Madanjit Singh, Chief Representative, Punjab National
Bank, London, U.K., Zahed Kazi, Manager, Bank of Baroda, London, U.K. and several
others who helped me to study bank and industrial security especially in U.K., Austria,
Switzerland and France during my visit to Europe.
I also take this opportunity to put on record the lessons and guidance I
received from Late B.K. Chatterjee, the then Chairman & Managing Director, UCO
Bank and Late G.K. Kasture, erstwhile Special Security Adviser of Reserve Bank of
India, who prodded me to write a book in this relatively untrodden field of security
management.
I am thankful to Shri S.S.Rajput for contributing an informative article on
electronic aids to bank and industrial security which has been incorporated in the
book. Shri Rajput has very rich and vast experience in the field of electronic security.
I hope that this will be useful to the advanced reader, while the interest of the
beginner will remain unaffected.[ 9 ] Shri Dakshina Ranjan Ray, a noted poet read
through the manuscript in its entirety and his comments led to further improvements
in its contents and approach.
I also feel it expedient to mention that I have only made an endeavour in this
book to introduce the banks, industries, museums, archives as well as the general
readers to the spirit and crux of the science of security rather than to acquaint them
with minute details. In this volume, I have approached the many-sided realities of the
problems of bank and industrial security from my perception and level of experience.
Each chapter of the book has had a vast and varied development which cannot be
treated adequately in a small study like this. But I have approached the subject and
the contentions with due respect to the extant systems and without recourse to
customary criticisms. On the contrary, it is contended that there is much to be
learned from both for the integrated new one. I fervently hope that security being
the concern of all, this small effort will encourage further studies and research in
this area of public interest.
- S.S.M
September 26, 2009
58, Charu Avenue,
Tollygung
Kolkata – 700 033
[6]
CONTENTS
Preface 3-6
Cover Picture
I. CRIME AND PERSONALITY
1. Psychological and Socio-Economic Facets : Bank and 8
Industrial Security
2. Study of Modus-Operandi of Crimes : An Imperative Need 9
II. EXTERNAL SECURITY IN BANK AND INDUSTRY
3. Physical Security in Banks : Preventive Measures 10
4. Industrial Security : Preventive Measures 11
5. Fire Security in Bank and Industries : System Approach 12
III. PERSPECTIVES ON TERRORISM
6. Terrorism : A Cultural Aberration 13
7. Terrorism : Bank and Industrial Security 14
IV. SCIENTIFIC AND ELECTRONIC AIDS TO BANK AND
INDUSTRIAL SECURITY
8. Forensic Science : Bank and Industrial Security 15
9. Electronic Aids : Bank and Industrial Security 16
V. INTERNAL SECURITY
10. Susceptible Areas to Frauds and Forgeries in Bank : 17
Preventive Measures
11. Preventive Vigilance in Industrial Organization 18
12. Alice in Squanderland 19
SELECTED VIEWS 20-24
B O O K M A R T
25-32
ACKNOWLEDGMENTS
INDEX
- I -
CRIME AND PERSONALITY
“This world is a Tantalus’ hell,
that we do not know anything about this Universe;
yet at the same time we cannot say that we do not know.”
—Sister Nivedita
PSYCHOLOGICAL AND SOCIO-ECONOMIC FACETS:
BANK AND INDUSTRIAL SECURITY
l
Are criminals born or made? This basic question has been agitating minds of the psychologists,
sociologists and cultural anthropologists since the beginning of studies on criminology. A fast
social and economic transition from the traditional culture to a more materialistic one is
discerned in today’s world. The present trend of more and more emphasis on industrialization
and urbanization especially in the developing countries belonging to ‘Take-off’ stage of economic
growth, has opened a new dimension of economic offences. With the shift of economic and social
system from the traditional primary sector to secondary and tertiary sectors, a deep shadow of
confusion envelops the group and community living in those countries. In this urban life, people
often get baffled with new standards of conduct outside, which is at variance with those within
their homes. As a result, they are caught in a pincer’s grip of divergent social and cultural
systems. The change of attitude from serenity to profanity leads to three kinds of effects
which prevail upon them — competition, speed and conflict. The processes, among other things,
brought about a change in the level of income and expenditure of the people in a lopsided manner
in the society. The flamboyant life style of the affluent few induces the weaker section to
imitate that but in vain. This ‘demonstration effect’ being a bane of urbanization and
industrialization provokes some individuals to develop
criminalistic outlook and they stoop to perpetrating
financial offences.
... It may, however, be noted that some
individuals only commit crime and majority of the
people are averse to it, even though they are exposed
to same socio-economic environment. It remains
shrouded in mystery why a poor cab driver or an
illiterate street-beggar returns the lost bag of
ornaments or valuables to its owner, while some
highly-privileged people of the society consciously
resort to financial misdemeanour. At this point to
time, it is necessary to make segregated analysis on
the underlying psychological, biological and other
factors involved to the problems of bank and
industrial security.
... The concept of crime and personality needs
to be studied and applied to the gamut of security
systems concerning banks, industries and institutions
such as museums, archives and art galleries.
[8]
on. It will also enable banks and industries to
formulate their own security policies and guidelines to
stave off crime and criminals. The banks and industries
should, therefore, have a system to study modus-operandi
of certain types of crimes usually perpetrated upon them
to build up their own defence as well as to prepare training
syllabi on security and risk-management for all categories
of employees and officers.
... The modus-operandi adopted by robbers in
perpetration of such crimes is diverse and varied. Amidst
this backdrop, the security management must acquaint
themselves with the usual methods employed by robbers in
committing bank heist. Such knowledge will help them
develop an appropriate bulwark to minimize loss, frustrate
robbers/dacoits in their bids and to enable the police to
apprehend the gangs.
... The employees of bank and other installations
must know the importance of guarding the scene of crime
so as to enable the investigating agencies to reconstruct
the crime on the basis of physical evidences left out by the
criminals on the scene.
- I -
CRIME AND PERSONALITY (Contd.)
STUDY OF MODUS-OPERANDI OF CRIME: AN IMPERATIVE NEED
l
The strength or power of a nation is not determined by its geographical size or demographic
galore. The nations are strong and powerful when they shake off conservatism and their
approach towards every problem — economic, social, cultural, national and international, is
progressive. In order to attain autarky, the process of all-round economic and social
development necessitates expansion of banks, industries, vital installations and cultural
institutions in both cities and far-flung areas. As an inevitable corollary of such growth, these
institutions become the soft targets of criminal attacks for their holding huge unidentifiable
liquidity, classified materials and priceless artefacts. Hence, the threat perceptions looming
over them are required to be objectively assessed for devising ways and means to combat the
same: The need for a discreet and specialized study of the modus-operandi of crimes
perpetrated on those institutions is, therefore, imperative.
... It has been observed that the modus-operandi of the criminals is based upon both the
rule of behaviour and inexorable physical law. The taste, flair, ability, habits and past success
induce the criminals to indulge in crime in the same manner for which they are best suited. The
possibility of changing methods cannot be ruled out, but they unbelievably stick to particular
method with unwavering faith. In other words, the modus-operandi adopted by the criminals is
based on the normal pattern of human conduct emanating from psychological compulsions. If
anybody has started committing lurking house-trespass or house-breaking by night, he will in his
all probability adhere to same technique of committing burglary. The specific features of the
methods of operation by themselves do not prove anything. But the building of systematic
records on study of the modus-operandi of criminals will pave the way for identifying them later
[9]
- II -
EXTERNAL SECURITY IN BANK AND INDUSTRY
“It is impossible after all to estimate the losses that do not occur, thanks to effective security.
But those prevented losses, those events that never happened, do get reported in one sense,
they show up in the bottom line as part of the profits that any business earns”
— Kenneth T. Derr, Director,
Standard Oil Company, California, U.S.A.
PHYSICAL SECURITY IN BANKS: PREVENTIVE MEASURESl
Security planning is essentially a management function in the sense that it aims at eliminating or
minimising all existing and perceived threats jeopardising smooth operation of the banks and
other industries. Security administration has, therefore, to be considered in the broader
perspective of risk-management. The risks primarily facing the banks and industries are :
Internal Risk
External Risk
Natural Risk
Internal risk involves crimes like frauds, forgeries, embezzlement of money, sabotage,
misappropriation and criminal breach of trust. Internal risk like external risk, may emanate
from internal or external factors or a collusion of both ...
External risk is broadly of two types:
Dynamic Risk
Static Risk
Dynamic risk may originate from change in state policies... Static risk involves theft,
burglary, robbery, dacoity, kidnaps, mischief to premises, documents, office automation etc.
... The presence of opportunity acts as an inducement to a potential offender. This
behaviour is not ‘dichotomous’, but in ‘continuum’. Banks may, therefore, utlise this psychological
aspect of perpetrators of offences and develop their systems of loss-prevention and loss-
control in respect of physical security,
document security and personnel security. In the
context of numerous developmental functions of the
banks involving people of all segments of society, an in-
built and unobtrusive security system seems to be
more important than security imposed.
... An integrated security system in which the
entire security set-up should mould into a combined
one, can only assess various threat perceptions and
lead to logical conclusion of the measures to be taken
to thwart the same.
... There is a general feeling that wide gap exists
between accomplishments and requirements in the
matter of bank and industrial security including
security consciousness.
... Motivation, training and continuous
upgradation of security arrangements on precise
studies of changing scenarios hold the key to
successful security and risk management of any
organization.
[10]
- II -
EXTERNAL SECURITY IN BANK AND INDUSTRY (Contd.)
INDUSTRIAL SECURITY: PREVENTIVE MEASURES
l
It is observed that the purpose of external security is basically to deal with static and natural
threat perceptions facing any organization ... In a society permeated by crime the vulnerability
of an installation of national importance or a museum/art gallery etc. preserving priceless
artefacts and documents can hardly be exaggerated. The rising trend in losses of money and
property, out of criminal acts, emphasizes utter importance of making scientific and methodical
security arrangements in such establishments.
...”a man who has been preserved from temptation, or enabled to resist it because
confronted by some physical obstacles, may go through life as a good citizen... the authority of
property has his own share of responsibility to society for the crime”... the responsibility of the
owners of property towards ensuring appropriate built-in protective security should not be lost
sight of. The nature and level of security arrangements will, however, very from one
establishment to another depending on various parameters.
... Once the factors are worked out, the threat perceptions facing a particular institution
should be specifically assessed. On a proper security audit of the installations, suitable counter
measures may be devised and evolved.
Security planning should be integrated with the general planning of any important
project/installation at its blueprint stage itself. In-built security design and layout make it
easier and avoid cutting the toes to suit the shoes at a later stage. At the same time, security
planning must have enough scope and flexibility to accommodate new order of changes following
economic and social developments.
Around vital areas there should be security fences and walls. Fence or wall is the first
obstacle in a series of physical defences. But
the security of the perimeter wall will pale into
insignificance, unless it is continuously patrolled or
kept under electronic surveillance... Importance of
access control in any plant or other institutions dealing
and preserving valuables or antiques can hardly be over
emphasized. It is basically an entry control functioning
in a total physical security system to allow movement of
authorized men and material through normal access
routes.
... collective security is an important step in
obviating the dialectical interrelationship of the
employees and management. Security management has
therefore an important role to play in this regard. The
destination can, however, be reached when a security
officer will be a good civilian in uniform and an ordinary
member of the staff will be a good security officer
without uniform!
[11]
- II -
EXTERNAL SECURITY IN BANK AND INDUSTRY (Contd.)
“A little fire is quickly trodden out,
which being suffered, rivers cannot quench.”
— William Shakespeare
FIRE SECURITY IN BANKS AND INDUSTRIES : SYSTEM APPROACHl
The outbreak of a major fire in a plant or a high-rise bank building takes place once in a blue moon, but the
magnitude of loss and damage, it inflicts, is quite staggering. Apart from causing loss of property and lives,
such fire in plants generating basic products grossly hampers national productivity. It is, however,
unequivocal that the loss of property can be replenished, but not lives. While sustaining the biotic world, the
elements of nature are often ignored in constructing high-rise buildings. In consequence, devastating fire
leaves its trails of death and destruction all of a sudden. A few illustrative incidents of major fire will help
brace up for impending fire and convey to all the imperative need of in-built fire security particularly in
banks, industries and institutions preserving valuables and priceless artefacts.
... apart from natural and accidental fires, arson or man-made fires may cause serious destruction of
industrial installations. This deliberate act of arson amounts to sabotage and is a panel offence. Every fire
has a reason and it is essential to ascertain the cause of it.
... The incidents of high-rise fire and helplessness of the innocent occupants, of course, necessitate
a fresh look at the existing fire rating of such structural assemblies, adequacy of the building codes,
inspection procedures of fire-fighting arrangements etc.
Problems of High-Rise Building
A dispassionate analysis of case histories of various categories of high-rise fire throughout the world
reveals:
Inadequacy of modern and well-equipped fire-fighting arrangements including their
construction.
Lack of training and education on the part of majority of the occupants about the
concept of fire and how to react in the event of outbreak of fire in such complexes. In fact, many a small
fire turns into a devastating major fire, as the source of fire is not detected and doused at its embryonic
stage. Even the in-built safety arrangements and systems provided in high-rise buildings are not put to use
by the occupants. On the contrary, everyone tries to run out of the premises leaving the burning complex at
the mercy of nature.
... Mr.G.S.Pathak, the then Vice-President of India inaugurating the National Conference on tall buildings
held in New Delhi in 1973 observed.” ...Another factor to
consider in highrise buildings is fire hazard. In a recent
International Conference on Fire Safety held in America,
a highrise building was defined as one in which emergency
evacuation is not practical and in which fire must be
fought internally because of height”. Contrary to general
belief, fire in high rise buildings are, therefore, to be
fought from within.
...The selection of fire protection systems in a
high-rise building is an intricate issue and depends on
diverse factors like height, location and general
condition of the building, population density,
environmental, condition, road condition, overall
condition of the city fire services, purpose,
effectiveness and last but not least, the cost factor
involved. Having studied these factors, the designer may
decide the range of fire-fighting systems and
equipments to be installed in a high-rise...It is expedient
to make and beef up all internal fire-prevention
arrangements in the light of extant guidelines to put out
any conflagration while there is time.
[12]
- III -
PERSPECTIVES ON TERRORISM
“one can have a perfectly beautiful cause and yet
if one commits terrorist acts, it is terrorism.”
— Professor Martin Rudner
TERRORISM: A CULTURAL ABERRATION
l
The word “terrorism” came into view with the outbreak of “Reign of Terror” (June 2, 1792 –
1794) in post-revolutionary France. The sole aim of the Jacobins led by the dreaded-trio
Robespierre, Danton and Marat was to rule by terror i.e. by frightening their recalcitrants into
submission ... The inexorable lesson of history serves as a warning to the erring humanity in
today’s world also.
... the terror attacks attempt to break human resilience and his indestructible spirit to
face man-made and natural mayhem. But contrary to general belief, there remains a wide gap
between our perspective and the reality on the subject. It is, in this context, necessary to look
at an empiric study on the evolution of terrorism... While dealing with the subject of terrorism,
one is obviously swayed by emotion as there are unspeakable human sufferings, ‘frozen fright’
and throes of separation behind each and every incident. But history also demands a
dispassionate and data-base analysis for truer understanding of the trend of events. Various
research studies on the long term evolution of terrorism contraintuitively indicate that the
impact of today’s global terrorism is showing downward trend and it is more confined to regional
terrorism.
... The spectre of potential cyber-terrorism threatens the minds of the people in
particular after the high-profile attack on September 11, 2001, even though confabulation was
initiated in 1980s on the subject. The increasing
dependence of today’s world on computer network and
information technology in all spheres of life, provides
an added opportunity to the terrorists to disrupt or
destroy the information base by any competent
computer hacker. Such threats are rare and more
potential in nature, but its destructive capacity is
immense.
... It transpires that terrorists often suffer
from a state of depersonalization, neuroticism and
psychotism. Their cause is highly idealized with a
conviction that they cannot attain their objectives by
legal means. They have a feeling, rightfully or not, that
they have no access to a responsive social and political
system. They forget that while they strike social and
cultural foundations of a nation, they are only striking
themselves.
[13]
- III -
PERSPECTIVES ON TERRORISM (Contd.)
TERRORISM: BANK AND INDUSTRIAL SECURITY
l
... Terrorist groups aim at bank robberies and extortion to finance their acts, especially when
they lack sponsorship from sympathetic agencies ... The famous “Stockholm Syndrome” which
indicates an anomalous affection and loyalty by the hostage for kidnappers, arose not from a
political terrorist incident, but from a bank-heist... It is an uphill task to ascertain specific
involvement of terrorists in bank heist and industrial crimes, as most of the available reports do
not throw specific light on this important aspect of terrorism. Hence, scrupulous study of the
modus-operandi of crimes brought about on banks and industries is essential to isolate terrorist
operation from the general crime. It is noted that the rule of behaviour and inexorable physical
law largely influence the modus-operandi of all crimes. The possibility of changing methods or
adoption of new techniques cannot be ruled out, but terrorists also adhere to certain modus-
operandi with utmost faith. An appropriate study of such modus-operandi will help identifying
the role of terrorists in bank crimes, if any.
... The level of protection in respect of physical, document and personnel security should
be decided by banks and industries after identifying the threats of terrorism and their
probability and criticality as well... Utmost precaution concerning safety of cash and valuables in
counters, Strong Rooms and in transit, should be taken in the light of laid-down guidelines to
thwart any attempt of terror attack.
... Historically, banks are exposed to frauds. The cyber-terrorism has further changed and
enhanced the scales and types of those risks facing the financial institutions. Traditional
control of post-event checking is no longer effective in minimizing cyber-crime committed in
banking operations ... Security professionals are concerned over the discovery of a banking
‘Trojan Horse’ which steals user data that precariously
and alarmingly affect 400 banks worldwide. The cyber
weapon used in the 400 online bank heist is called
‘Silent Banker’. The information that Silent Banker
collects, gives it the ability to enroute money to
another account owned by the aggressors or who they
represent. This is done without the user’s knowledge
until he receives his bank statement. Trojan horse is a
piece of malicious software which appears to perform a
certain action, but in fact performs another...
Computer hacking is an unauthorized access defeating
access controls. It is also a malicious code and denial-
of-service attacks. The hacking is carried out with the
objectives of manipulation, sabotage or for espionage...
The security arrangements may be classified into
three broad groups to minimize cyber crime:
Administrative control
Physical control
Information system and technical control
Detection control
[14]
- IV -
SCIENTIFIC AND ELECTRONIC AIDS TO BANK AND INDUSTRIAL SECURITY
“We have but faith, we cannot know,
For knowledge is of thing we see;
And yet we trust it comes from Thee
A beam in darkness.”
— Alfred Tennyson
FORENSIC SCIENCE: BANK AND INDUSTRIAL SECURITY
l
In order that banks and industries may make their full contribution in whittling down the pace
of crime, they must make use of all legitimate means to help prevention and detection of crime
so as to bring the offenders to justice. In many cases, witnesses are not available and
evidences available in the scene of crime are circumstantial. In such cases and other matters
also forensic science may help in a way which remains beyond the competence of the
investigators and personal observation of the other witnesses...
The prevention and detection of crime largely depend on proper guarding of the scene
of crime and preservation of physical evidences. Hence, bank and industrial employees have to
be thoroughly trained and conversant with the techniques of keeping the materials,
questioned documents and the surroundings untouched until the arrival of the police and the
experts. They must be thorough and systematic and keep it in mind that very minute
quantities of material or apparently insignificant marks and documents may render invaluable
clues in connecting the crime with the criminals. Careful search and preservation of all
obstacles such as hedges, barbed wire, wall, railings, windows etc which have been moved,
should be made. Nothing capable of bearing
fingerprint should be handled without adequate
precautions.
... While safeguarding the scene of crime, bank
and industrial employees should have a clear
conception of the materials and traces likely to be
found at the scene.
... The biggest threat facing the banking
industry in recent years is the fraud. Forensic science
can provide valuable service in prevention and
detection of frauds, if the questioned documents are
properly handled, preserved and sent to the experts
by the bank authorities...
To combat financial offences, to make
industrial production faster, to protect public money
in banks and priceless artefacts in art-galleries and
museums, the helping hand of forensic science is
virtually necessary.
[15]
- IV -
SCIENTIFIC AND ELECTRONIC AIDS TO BANK AND INDUSTRIAL SECURITY (Contd.)
ELECTRONIC AIDS: BANK AND INDUSTRIAL SECURITY
— S.S.RAJPUTl
Electronics is an integral part of all areas in today’s technological world, and is proved to be very
reliable, user-friendly, economical, cost effective and dedicated. In all walks of life electronics has
made life comfortable. Almost all utilities in life are available at the finger tips. Any imaginative thing
can be transformed into realities by applying electronics. The flow of electrons in semi-conductors is
known as “electronics” and the application of ICs, microprocessors or microcontrollers is known as
electronics devices. The banks and industries are also using electronics extensively for their
maximum benefits. The following electronic equipments are used for bank and industrial security in
general:
I. Access Control System, Perimeter Control System
II. Security Alarm System
III. CCTV Surveillance System
IV. Metal Detector/Scanners
V. Time Lock System
VI. Counterfeit Currency Detectors
... Access Control is banks is quite complicated issue. During business hours anybody and
everybody can enter the bank premises. Any ill-motive person can enter into the bank in disguise of a
customer. Once entered into the bank, he/she gets access to almost all areas of operations as the
bank is basically a service organisation. However, all other areas except the customer area are
provided with access control.
... The first and foremost part of any security system is perimeter control. Following type of
perimeter controls are used.
Physical Perimeter Control: Civil & Mechanical fencing
Electrical fencing
Electronic fencing
... Walter Bruch, a German engineer (Siemen’s AG)
designed the first CCTV System not for security purpose
but to observe the launch of V2 rockets (The first ballistic
missile) in 1942 in Germany. Today, there are many
applications of CCTV such as in traffic monitoring, process
monitoring, sports events, medical science and many more
apart from security and safety field.
... The electronic metal detectors are used by law
enforcement agencies to locate hidden weapons, by
geologists to locate ore, by treasure hunters to hunt
treasure, by utility companies to locate buried pipes, by
lumber mills to locate metal in sawn logs, by food and
pharmaceutical industry to locate metal in food and food
items and in medicines.
... It is evident that electronic aids to bank and
industrial security are diverse and manifold. Electronics is
now a bright feather in the cap of science. In fact, it has
pervaded all realms of life – from our trade, recreation,
education to the solution of problems of security.
[16]
online bank frauds. It is observed how the ‘Silent
Banker’ has used cyber weapon in 400 online bank heist
throughout the world in perpetrating electronic frauds. In
fact, each day brings news of some new forms of intrusion
that startles the experts if the efforts spent on securing
the computer stock are of any avail at all. It is crystal clear
today that the target of cyber attacks is information, not
the device. The criminals are “leveraging a mature
underground economy to buy, sell and trade stolen
information” ... India being the fourth largest internet
user in the world, all financial institutions are vital
installations must take adequate precaution to thwart
growing menace of cyber offences.
... Prevention of frauds, forgeries and corruption,
like physical ailments, can be an easier process once the
aetiology of the problems is known. Hence, in the light of
the known areas of internal crime perpetrated on banks,
the preventive measures may be identified ... An in-depth
study is necessary to spell out measures in specific areas
of this deep-seated malady to stamp out corruption from
the financial institutions.
- V -
INTERNAL SECURITY
“If we can continue in a larger task as we have begun
in this limited task, there is hope for the world.”
— J. M. Keynes
(Final speech at the conclusion
of Bretton Woods conference)
SUSCEPTIBLE AREAS TO FRAUDS AND FORGERIES IN BANKS:
PREVENTIVE MEASURESl
Internal crime in financial institutions, especially in banks, connote white-collar crimes such as
frauds, forgeries, misappropriation, cheating, extortion, criminal breach of trust, criminal
conspiracy, causing disappearance of evidences, cyber-crime etc. The crimes can be perpetrated by
the external criminals, internal operators or with a collusion between the two. Members of the public
are, however, more concerned with the bank dacoities, hold-ups and other forms of external crime,
since such incidents are widely flashed in the media and issues become the subject matter of
parliamentary debates. But Internal crime, like an iceberg, remains mostly hidden from the public
view and silently causes a sequence of escalating losses leading to ignominious disaster.
... The rising trend of corruption and fraudulent practices in banks, financial institutions and
other realms of society has caused serious concern among those who believe in trust as the basis of
the state. The greed of extraverts for easy money and easy living has however, belied the maxim
“dishonesty is contrary to the very concept of banking”. Consequently, the operators exploit the
weaknesses in the organization, its systems, procedures and functioning. The sources of threat of
banks’ interests in regard to internal crimes are:
Internal Operators
External Operators
Collusion between internal and external perpetrators
... Internal crime in banks usually occur in relation to deposits, remittances, withdrawals or other
transactions including foreign exchange, credit advance on different schemes and several other
areas of operations.
... The decade long experience of cyber attacks speaks of hacker-ingenuity in committing
[17]
- V -
INTERNAL SECURITY (Contd.)
PREVENTIVE VIGILANCE IN INDUSTRIAL ORGANIZATION
l
Vigilance management in any organization is a necessary evil. It is ‘evil’, because vigilance
functioning is not liked by any member of the staff or executives. It is ‘necessary’, because
there is no other way out to save leakage of income of an organization and to protect it from the
vicious circle of frauds and cranks. It is, therefore, the reasonable honesty of the employees
which can neutralize the spectre of vigilance management. The sight of dishonest operators
gloating over the fruits of their corruption must be a cause of concern to the dedicated and
honest employees. In every organization, there are certain areas which are susceptible to
corrupt practices. The systems and procedures should, therefore, be drawn up in a manner that
serves as a deterrent of financial malfeasance. The role of vigilance management will be to
closely oversee the aberrations and take stern disciplinary action after initiating proper
enquiry and ascertaining the facts and circumstances of the case. It should be kept in view that
vendors and interested parties will always try to take at least five times advantage of the
bribes given to the internal operators which will in turn cause loss to the organization. This will
further hinder industrial production and retard economic development of a country.
From vigilance point of view, the most vulnerable area in any organization is the
commercial department which deals with marketing, import and export, stores, purchase and
sales.
... Preventive vigilance and general awareness of all sections of employees and officers
are essential to combat corruption in an organization. In fact, a minority group of employees and
management staff indulge in corrupt practices in a plant or in a factory. A well-knit systems and
procedures can only thwart this threat effectively.
... It is expedient to include a sense of
confidence in all through structured training
programmes to impress upon that Vigilance is not a
blockade in progress. It is rather an effective means
of restricting leakage in income which is essential for
growth of any business... In the absence of proper
checks and controls, the economy is bound to go down
the road to abyss of national loss.
[18]
- V -
INTERNAL SECURITY (Contd.)
ALICE IN SQUANDERLAND
l
... A survey was conducted on 3600 firms in 69 countries at the behest of the World Bank which
provides evidence of the widespread existence and abhorrent effects of venal practices ... The
unabated institutional corruption can have cascading impact on national and global economy in
copious manners...The forms of corruption are varied and unique in nature in every human
institution. Further, financial gain is not the only motivation for corruption. There are other
factors as well which may involve social status, executive and legislative power, drug addiction
etc ... The institutional corruption involves the despoiling of moral character of institutional
role occupants and inflicts greater damage to the institutions in particular and the nation in
general. It also seriously undermines the institutional processes and subverts the purposes and
objectives of the institutions.
...The general erosion of expenditure control coupled with the loss of income seriously
retards the process of economic development of a country. The problems are further
aggravated in the context of many institutions veering from fraud-fuelled boom towards
bankruptcy... Over time, developed countries have emphasised merit-based evaluation
processes, established transparent management and financial systems and encouraged an
active media and civil society to combat institutional corruption and internal crime... The World
Bank feels that it will be important to view corruption not in moral terms but as a ‘constraint to
development’.
... The concept of security does not boil down to
mere protection of lives and property from subversion
...”It is this condition of society and the development
of mind control as an applied science that pose the new
challenge to security... I see security in the rapidly
approaching future as guardian of our minds and the
new concentrated wealth forms, principally industrial
power and cash and credit which have replaced land as
wealth”.
... It calls for new criteria to decide security
norms and measures for banks and industries. In fact,
the need to restructure institutional security
architecture is greater now than ever.
[19]
[20]
Blessings
RAMAKRISHNA MATHP.O. BELUR MATH, DIST. HOWRAH
WEST BENGAL : 711 202
INDIA
th11 August, 2013
Sri Ramakrishna Sharanam!
Dear Subhendu Babu,
… President Maharaj Swami Atmasthananda is happy to receive your
book “ Bank and Industrial Security – A Normative Approach” along with your
ndletter dated: August 2 , 2013.
Many thanks.
May Sri Ramakrishna and Holy Mother bless you all!
With love,
Yours affectionately,
Swami Vimalatmananda
Secretary to
Revered President Maharaj
[21]
“They alone live who live for others.” – Swami Vivekananda
RAMAKRISHNA MATH(The Headquarters)
P.O. BELUR MATH, DIST. HOWRAH
WEST BENGAL : 711202
INDIA
24 August 2013
Dear Shri S.S. Mukherjee,
While acknowledging with thanks the receipt of the book
titled “Bank and Industrial Security – A Normative Approach”, I
am to inform you that you have sent us a valuable possession for
which we are ever grateful to you.
Most Rev. President Maharaj sends his blessings to you and
your family members for your kind gesture and concern for us.
With kindest regards,
Yours sincerely,
Swami Suvirananda
Assistant Secretary
[22]
SELECTED VIEWS
“ … I look forward to reading the book…”
— Pulok Chatterji
Principal Secretary
Prime Minister's Office
New Delhi
“... To offer any comment on a book of this type, namely, 'Bank and
Industrial Security – A Normative Approach, considered by me to be more
of a technical treatise than an ordinary book on security concerning banks
is not that simple. Shri S S Mukherjee's personal knowledge of bank
security and his preparation of what it should be or how it ought to be
approached have been reflected in this valuable production. To put his ideas into practical shape, he has studied the problem in foreign countries as well ... knowledge thus gained has been duly shared in this treatise. As I humbly feel, an average industrial security expert, dealing with bank security in particular, will need to study the book and not mearly read it. Having had the benefit of some personal interaction with Shri Mukherjee when he was in the process of writing the book, I gain the impression, he has merged both his experience and personality into the book, not so easy a task ! A serious student of complicated systems involved, Shri Mukherjee has attempted to provide an ideal module of bank security that must be understood, appreciated and then implemented. A cursory reading of the book will not benefit any one, even a security professional. As I feel the book should be a compulsory study for the bank Management Staff also. It is only when they will appreciate the value or the philosophy of the 'normative approach' to bank security, things will change professionally.The target set by the author is high. I take his opportunity to wish all concerned to take to the book as seriously and sincerely as the author certainly intends. That will usher in a golden age of bank security much needed in the technological sophistry involved in securing assets of the clients by the banks...”
— D. C. Nath I. P. S. (Retd.)Former Special Director
Intelligence Bureau, Govt. of India
“… I went through the book and found to be extremely educative in nature
and the contents should be very useful for security professionals and the
Police force… I suggested to our officers to go through it and try to adopt
the suggestions for implementing security as suggested in the book…”
Naparajit Mukherjee I.P.S, —
Director General of Police
West Bengal
“… I must say that the concept is very relevant in today's world …”
Kumar Mangalam Birla —
Chairman, Aditya Birla Group
Mumbai
“… The publication of the book is very timely, considering the frauds in
Financial Sector as well as the challenges faced with regard to industrial
security…”
Kiran Majumdar Shaw —
Chairman & Managing Director
Biocon
Banglore
“ I have gone through the book on 'Security' written by Shri S.S.
Mukherjee … Before writing this book, he travelled extensively in the U.K.
and Europe and interacted with departmental heads of many well known
organizations including international banks. Further, he enriched his
knowledge by studying extensively his chosen subject by reading at
different famous libraries in those countries. Only after he wrote this
book. … However, the most beautiful aspect of the book is his analytical
approach which is evident in each chapter of the book. Further more,
the book is fairly condensed and there is no repetition. … Another feature
of the book is the method of writing it. The author shows both positive
and normative aspects of security. This is a feature which is very
absent except in books on pure science … I can unhesitantly say that
this book will be of immense value to people who have to handle
security. Even to those who are not concerned with the subject, the
book will provide enormous information which a layman is not usually
[23]
[24]
knowledgeable. At least, I did not come across another book written in
our country which handles the contents so thoroughly from the
scientific angle … Shri Mukherjee worked with me in close coordination in
UCO Bank thereby giving me ample opportunity to observe him in real life
situation.
— H.M. SINGH ROY
Retired General Manager
UCO Bank
“Bank security has always been an issue of genuine concern for decades. …
In view of spurt in incidents of crime due to socio-economic and other
factors, the banks, industries and institutions holding massive
unidentifiable liquidity, invaluable artefacts, antiques and other
classified materials are getting increasingly prone to criminal attacks-
both from within and without. The rising trend in losses out of criminal
attacks emphasizes utter importance of making scientific and methodical
security arrangements in these institutions of vital importance. … With
threats of growing terrorism, there is also a need to ensure that militants
do not target banks to fund their insidious designs towards stability of
the country … A long-felt need towards attaining these objectives has
been fulfilled by Mr. Subhendu S. Mukherjee, former assistant general
manger (Security) of UCO Bank, in his recently published book entitled
'Bank and Industrial Security – A Normative Approach' … Mr. Mukherjee
carried out a long research home and abroad on the subject and offers in
lucid and literary language a system designed to impede, detect and
frustrate all attempts of external and internal crimes perpetrated on
banks and other vital installations. The book studies the varied threats
carefully and with insight. … Delectable photographs and fascinating
printing with hard-bound casing and jacket with gold emboss has added
character to the book…”
— Security Today
Gurgaon
“ … The book must be popular in all banks, industries and other houses in
buttressing up the extant security arrangements as also drawing up their
new security policies based on a new vision of the book… “
— International Institute of Security
and Safety Management
New Delhi
[25]
BOOK MART
SECURITY TODAY, a well-known journal and VEDAMS BOOKS (P) Ltd,
New Delhi of India have released in their websites a short-list of
quality professional books that keep one ahead of time. The book titled
'Bank and Industrial Security – A Normative Approach' by Subhendu S.
Mukherjee has been given a priority status in the said survey lists.