Steps can be taken to minimize robbery risk

NEW ORLEANS (6/18/02)--Steps can be taken to thwart an increasing incidence of robberies at financial institutions, including credit unions, a 33-year Federal Bureau of Investigation (FBI) veteran said Thursday at CUNA Mutual Group's seventh annual Discovery Conference.

William Rehder, a consultant and former FBI agent who focused on robbery, told a gathering of credit union staff that robberies are getting more violent at financial institutions across the country. He added that credit unions, especially, are being targeted for the crime because bandits perceive a lack of security precautions there as well as bigger takes.

Rehder, a leading expert on robberies, noted that 510 credit unions were robbed in 2001, compared with 221 in 1990. But, he added, with proper risk management steps in place, a credit union can minimize its susceptibility to the crime.

According to Rehder, almost one in three financial institution robberies last year were "takeover" robberies characterized by multiple robbers who sometimes fired shots, barked orders, or jumped over counters to grab cash. These situations, he said, posed much greater risks than the "one-on-one" robberies in which a robber usually handed a note to a teller.

To thwart robbers, Rehder recommended these steps:

• Tellers should be instructed to keep a minimum amount of cash in the drawer; limits should be set by policy.

• The locked bottom drawer should be used for excess cash.

• Bulk cash should be counted, broken down, and spread out as soon as possible after delivery.

• Cash deliveries should be arranged twice, not once, a week at varying times if possible.

• Employees should be instructed not to share information on deliveries and amounts with anyone. Rehder said most information comes to robbers "from the inside." For example, from comments an employee makes to a friend or neighbor that is passed along.

Risk management procedures can minimize the probability of robbery, he said. Credit unions should have opening and closing procedures, and managers should ensure video equipment is working properly. Employees must be aware of their surroundings and report suspicious behavior to managers. Tellers should keep bait money in their drawer and know how to use it in a robbery. Practice robbery response and develop a system.

Rehder also encouraged credit unions to form partnerships with law enforcers to find out how they will respond to a robbery.

Rehder emphasized the importance of putting safety first during a robbery. Comply with the robber's demands; don't be a hero. Don't panic or make sudden, unexpected moves, Rehder said. If you are passed a note, push it aside to use as evidence. But if the robber asks to have it back, give it to him. Give out the bait money (and include dye or tracker packs), and be observant.

"Get a good look at the robber, but don't stare," Rehder said. "Remember the exact words or what's written on the note." Observe the weapon, if shown, and the escape route, especially anything the robber touches.

Protecting the scene after a robbery is also important, Rehder said. Close the teller window and lock the drawer. If you haven't already, activate the alarm. (Rehder said the best time to sound the alarm is usually when the robber turns away after getting the money.) Tell your supervisor what happened, but don't discuss the robbery with anyone; it could unintentionally affect what you tell police. Call 911 and the FBI, and lock the door to protect the crime scene. And make sure you share any reports on the incident with police.

Jim O'Dell, process owner for risk management at CUNA Mutual, advised the group that once the robber is out the door, focus on the employee who has been through a very traumatic experience. Insurance coverage should include provision to bring in counselors as soon as possible, he said.