BANK AND INDUSTRIAL

SECURITY

— A NORMATIVE APPROACH

AN ABSTRACTAND

SELECTED VIEWS

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ISBN - 81-908948-0-7Bank and Industrial Security — A Normative Approach

Copyright Subhendu S. Mukherjee©

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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.

[26]

[27]

[28]

[29]

[30]

[31]

[32]