Freightwatch International: December 2010 Cargo Theft Report

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released their monthly report on cargo theft for December 2010.

FreightWatch recorded 64 incidents in December, a slight decrease in the average theft rate per month at the end of a very busy fourth quarter.

By location, California, Florida and Texas accounted the highest number of incidents in December, with 17, 13, and seven thefts respectively. This month, an average loss value of $383,350 resulted from the 25 incidents with reported loss values.

Violence in cargo theft remained low in 2010, however, three incidents occurred in December in which weapons were used in the acquisition of cargo, including two hijackings in Southern California and an armed robbery in Memphis.

FreightWatch is reporting four, very publicized pharmaceutical thefts in December:

• December 7th in Dallas, Texas, the theft of a trailer of pharmaceuticals of an unreported value.
• December 13th in Baltimore, Maryland the hijacking of a delivery van of pharmaceuticals of an unreported value.
• December 17th in Memphis, Tennessee a warehouse robbery and hijacking of delivery vans of an unreported value.
• December 23rd in Memphis, Tennessee a delivery van robbery valued at $439,000

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire report from Freightwatch International, visit:
http://www.freightwatchintl.com/

To learn more about pharmaceutical material screening technologies, visit: http://www.xstreamsystems.net/

FreightWatch: Armed Hijacking at Pharmaceutical Distribution Center

Gunmen hijack delivery vans at a pharmaceutical distribution center, police recover product and apprehend the suspects.

FreightWatch International, an industry leader in providing cargo theft intelligence released a news bulletin regarding the armed hijacking of a pharmaceutical distribution center.

According to the bulletin:

• Three armed men entered a pharmaceutical distribution facility as the dock doors were rolled up in the early hours of December 17, in Memphis, Tennessee.

• The armed men held 9 people at gunpoint and proceeded to drive away with three delivery vans full of product.

• Through the use of redundant covert tracking devices embedded in the pharmaceutical products, the suspects and product were tracked to a house where police were able to recover the product and apprehend several of the suspects.

Pharmaceuticals have become a valuable currency and organized gangs realize the high profitability in the theft, adulteration, fraud and counterfeiting of all medications.

All members of the pharmaceutical supply chain must take proactive steps to protect their inventories from theft, adulteration and counterfeited products.

To read the entire bulletin from Freightwatch International, visit:
http://www.freightwatchintl.com/

To learn more about pharmaceutical material screening technologies, visit: http://www.xstreamsystems.net/

Freightwatch International: November 2010 Cargo Theft Report

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released their monthly report on cargo theft for November 2010.

FreightWatch recorded 70 incidents in November. Prior to the Holiday season, Electronics and Food/Drinks continue to be the most stolen commodities.

By location, California, New Jersey and Texas accounted 64% of all the thefts recorded in November with 28, 11, and 6 thefts respectively.

This month, an average loss value of $642,371 resulted from the 24 incidents that contained an estimated load value.

On November 10, a load of pharmaceuticals worth $10.9 million was stolen a few miles away from its point of origin. The driver left the load unattended for approximately 15 minutes when it was stolen.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire report from Freightwatch International, visit:
http://www.freightwatchintl.com/

To learn more about pharmaceutical material screening technologies, visit: http://www.xstreamsystems.net/

Holiday Cargo Theft: A Concern for the Pharmaceutical Supply Chain

During the seven major holidays in the United States, cargo theft rates increase by 28% on a per-day basis compared with the remaining calendar days.

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released a report outlining the statistics and concern over the increase of cargo theft during the holiday season.

The FreightWatch report analyzes the statistics supporting this commonly understood maxim in an attempt to better explain the increased risk faced by shippers and their supply chain providers.

By commodity, pharmaceutical thefts increases from 6% to 8% during the holiday.

It is critical that all members of the supply chain protect their inventories from theft, adulteration, fraud, and counterfeiting through increased vigilance and by deploying solutions and technologies.

To read the FreightWatch International Holiday Cargo Theft report, visit: http://www.freightwatchintl.com/?q=webfm_send/31

Entire Bristol Myers Squibb Shipment Stolen

As reported earlier in Secure Pharma Chain Blog, according to Freightwatch International, Bristol Myers Squibb’s entire truckload of pharmaceuticals, valued at several million dollars was stolen from a rest area in Florence, Kentucky on November 11th.

Products in the shipment included Avapro, Avalide, Coumadin, Abilify, Reyataz and Plavix.

The stolen truck - which was plain white with no unique markings - was taken from a rest area in Florence, Kentucky, after being left unattended for approximately 15 minutes by the driver and a passenger.

The driver had been forced to park some distance away from the main facility because the rest area was full. Evidence from the scene indicated the thieves made entry by breaking the lower window on the passenger side.

FreightWatch has recorded 27 pharmaceutical theft incidents year-to-date in the United States, with an average loss per shipment of $5.1M, up from $4M in 2009.

Secure Pharma Chain is encouraging all members of the pharmaceutical supply chain to be vigilant in protecting their inventories from all suspicious offers of medications from unknown sources. Stolen products are especially dangerous in that the actual drugs will not be handled properly-while the product containers will likely be emptied of the legitimate drugs- replaced with counterfeit drugs and sold within the supply chain.

The most effective solution for the interdiction of fraudulent, adulterated, sub-standard and counterfeit drugs is verifying the drug inside a sealed container with an material authentication technology.

To learn about material authentication technologies, visit: http://www.xstreamsystems.net/

Freightwatch: Truckload of Pharmaceuticals Stolen

A full truckload of pharmaceuticals was stolen from a rest area in Florence, Kentucky at approximately 10 pm, Wednesday, November 11.

According to an email alert, Freightwatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, the theft occurred approximately 225 miles from the shipment’s point of origin.

The load value of the shipment has not been established, but is reported to be worth several million dollars.

The driver and his passenger reportedly left the truck alongside the exit ramp from the rest area because all the parking spaces were full. The vehicle was reportedly left unattended for approximately 15 minutes.

FreightWatch highly recommends that shippers of highly targeted goods such as electronics and pharmaceuticals ensure their transportation providers are aware of all in-transit security requirements and that the shipper has the capability to audit their compliance at any time.

Members of the pharmaceutical supply chain need to be on alert for these stolen goods and their containers. It is likely that the criminals will sell the products which may be harmful if not properly stored and use their containers to introduce counterfeit medications into the legitimate supply chain.

To read more about this, visit: http://www.freightwatchintl.com/

To learn more about verification technologies that can test the authenticity of pharmaceuticals inside their sealed, unit-of-sale container, visit: http://www.xstreamsystems.net/.

Pharmaceutical Cargo Theft and Recovery

As organized criminal elements continue to target the pharmaceutical supply chain, FreightWatch International has reported a pharmaceutical theft and its subsequent recovery of a drug courier shipment in Michigan on August 17th.

According to FreightWatch International, the courier van that contained pharmaceutical products destined for multiple stops, originated in Livonia, Michigan on August 17th.

The van and its contents were stolen while the driver had stopped and was making a delivery at a distribution point in the Greater Detroit Metro area.

Fortunately the pharmaceutical product was equipped with a covert GPS tracker and the Detroit Metro Police was notified and they were able to recover the stolen products and arrest two suspects.

The value of the recovered stolen goods was not reported.

This is a victory in pharmaceutical supply chain security and illustrates the need and value of the deployment of a variety of technologies and solutions in properly protecting the legitimate supply chain from theft, fraud, adulteration and counterfeit product.

Secure Pharma Chain encourages that all members of the supply chain deploy a layered suite of technologies to protect their inventories and consumers.

To learn more about pharmaceutical supply chain security solutions, visit: http://www.xstreamsystems.net/.

Freightwatch International: July 2010 Cargo Theft Report

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released their monthly report on cargo theft for July 2010.

FreightWatch recorded 49 cargo thefts for the month of July; a 9% decrease from the incidents recorded in June. The states with the highest theft rates continue to be California, Florida, and Texas, followed by Pennsylvania, Georgia and New Jersey.

By location, 41% of cargo theft occurred at truck stops and 84% of thefts consisted of full truckloads being stolen.

This month, an average of $259,732 per load results from the 40% of thefts that contained the amount of loss value.

By commodity, electronics and food/drinks persisted as the most targeted commodities. Building/Industrial also appears on the top of the list with six additional thefts compared to June with only two thefts recorded in this category.

Pharmaceuticals as a commodity experienced three reported incidents in July, all on July 16th. The three pharmaceutical thefts in the report include:

• July 16th theft of a trailer at a truck stop in Jefferson, Ohio of an unreported value.

• July 16th high jacking of a truck transporting pharmaceuticals of an unreported value in Detroit, Michigan.

• July 16th a second theft of a trailer on the same day at a truck stop in Jefferson, Ohio of an unreported value.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire report from Freightwatch International, visit:

http://www.freightwatchintl.com/.

To learn more about supply chain security solutions, visit: http://www.xstreamsystems.net/.

FreightWatch International: 2010 Bi-Annual Cargo Theft Report

FreightWatch International recently released its 2010 Bi-Annual Cargo Theft report.

As it relates to pharmaceutical cargo theft, FreightWatch is reporting the number of incidents has declined so far this year from last. However, the the overall volume or value of each incident and sophistication/organization has increased.

This seems to be exemplified by the huge Eli Lilly warehouse theft earlier this year where thieves stole $76 million in pharmaceuticals in a very sophisticated burglary.

Here are some of the highlights of the bi-annual report:

• In the first six months of 2010, cargo theft recorded by FreightWatch has increased 5% over the same time period in 2009. Additionally, there have been several noteworthy trends that differ from cargo theft recorded in the previous year.

• First, multi-trailer losses are becoming increasingly common. Cargo theft gangs are stealing two, three and even four trailers at a time, most commonly from terminals where trailers are more likely loaded with similar product. FreightWatch views this as the natural progression for cargo theft gangs, as they moved from "pot luck" style cargo theft to active targeting; now gangs are seeking a better return for their efforts, hitting multiple trailers at once while incurring the same level of risk.

• Second, Food and Drinks replaced Electronics as the commodity type most targeted by cargo theft gangs over the period examined. Electronic theft has decreased by 23% in the first half of 2010. As a point of comparison, at this same time last year, pharmaceutical thefts were down 50% over the previous year's rate, while the commodity group ended with a slight increase in volume for 2009.

• Third, in 2009, warehouse burglaries were up 50% over the previous year's rate, but slowed significantly through the rest of the year. FreightWatch recorded 12 warehouse burglaries in the first half of 2010, a decrease in the overall rate of incidents. However, due to a $76 million dollar loss in Enfield, Connecticut, the largest cargo theft incident on record, the total estimated loss rose sharply from $38 million in 2009 to $102 million in 2010.

The rise of the sophistication and organization of pharmaceutical cargo theft should trouble all within the pharmaceutical supply chain. This criminal act within the vital health care chain is evolving beyond random acts of theft and threatens the ability of all its members to protect their inventories, brand and safety of the consumer.

Secure Pharma Chain encourages all members of the pharmaceutical supply chain to utilize technologies to protect their inventories and authenticate all products within it.

To download this report in its entirety, visit: http://www.freightwatchintl.com.

FreightWatch International: June 2010 Cargo Theft Report

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released their monthly report on cargo theft for June 2010.

FreightWatch recorded 54 cargo theft incidents in North America during June; a decrease of 14% from May.

By commodity, pharmaceuticals experienced one incident in June, one less than in May. However the in subsequent follow up reports may prove that were more stolen cargo than initially reported in this particular incident.

The one pharmaceutical theft in the report is:

• The June 25th trailer theft of a trailer of pharmaceutical products in Glade Springs, Virginia with an unreported value. This theft was quickly recovered because of tracking devices placed within the stolen cargo. The theft was reported in Secure Pharma Chain Blog.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire report from Freightwatch International, visit:

http://www.freightwatchintl.com/.

To learn more about supply chain security solutions, visit: http://www.xstreamsystems.net/.

Drug Cargo Theft: The New Goldmine

Top 10 Pharma Cargo Thefts By Value

Eric Duggan in the June 29th edition of the FiercePharma Manufacturing, writes an excellent story encapsulating the proliferation of pharmaceutical cargo theft and how it has become one of the most profitable and dangerous crimes to the public-at-large in the 21st century.

The story, aptly titled Drug Cargo Theft: The New Goldmine, describes how this specific criminal activity is likely to continue to grow because of the huge profits gleaned from targeting pharmaceuticals.

Mr. Duggan presents the listing of the top 10 ten pharmaceutical thefts in the 2009 and 2010 to-date, which with few exceptions, seem to have been lightly reported about in the media or otherwise not well known by the general public.

The reality is that with relative ease, a criminal can target a pharmaceutical shipment or warehouse and potentially make millions on the sale of the stolen product along with the ability to gain significantly more by other illegal activities after the fact.

The following is a list of the Top Ten Pharmaceutical Thefts of 2009 and 2010 (to date):

• Eli Lilly Warehouse - $76M
• Eli Lilly Truck - $37M
• Teva Truck - $11.8M
• Novo Nordisk Truck - $11
• Astellas Truck - $10M
• Unknown company - $8.8M
• GSK Warehouse - $5M
• Exel Distribution Center - $3M
• Dey Pharmaceuticals Truck - $2M
• Dey Pharmaceuticals Truck - $2M

With hundreds of millions of dollars of pharmaceuticals cycling through a black market the criminals have the ability to double their profits of the theft by separating the product from the packaging, selling the product and then put counterfeit product into the packaging and sell that as well.

With the advent of the internet, there is also a ready made, anonymous tool to market their stolen and fraudulent goods directly into consumers and the legitimate supply channel for even higher margins.

In a sense pharmaceutical cargo theft and its down stream activity seemingly is a perfect crime. It has high profitability, there is the ability to double dip on the spoils of their theft by adding counterfeit product to packaging and they can sell their stolen wares into legitimate supply chains globally through the anonymity of the internet.

Here are some of the highlights of Mr. Duggan’s FiercePharma story:

• Stolen drugs are most often shipped to Latin America or to illegal online pharmacies. Sometimes they also make their way back into the legitimate supply chain with new fake labels. This poses a potent public health risk that keeps the FDA involved, issuing recalls and investigating cases through its Office of Criminal Investigations.

• Aside from the appealing pay-off, cargo theft has gained momentum in the U.S. because of the relatively light penalty thieves risk if caught. As reported in Security Director News, cargo theft in the past has been viewed as a victimless crime, leading to slow response from law enforcement. According to Keith Lewis, task force agent for the major theft unit of the Georgia Bureau of Investigation, "This is a very easy crime to commit and get away with. Law enforcement does not understand the nature of this crime." courtesy of FreightWatch International.

Fortunately Mr. Duggan offers some hope that there are some efforts being made to combat this crime:

• Greater industry efforts to combat the crime are already having an effect, however. The Transported Asset Protection Association (TAPA) offers a snapshot of cargo-theft in its 2009 incident information report, noting, "With an insight into the industry, the data signify the beginnings of a trend toward improvement--and a greater adherence to supply chain security practices throughout the pharmaceutical supply chain."

• Cooperation is improving between industry and law-enforcement. Companies like FreightWatch and the newly minted CargoNet offer loss control services, including compiling crime data and coordinating with law enforcement. CargoNet managing director Maurizio Scrofani told us, "There is a problem in fragmentation [of data]. You need a central database to tie in regional databases, which is a common way of pulling in law enforcement."

The era of pharmaceuticals targeted for criminal activity carries a huge price tag to the downstream consumer with the potentially deadly effects of contamination, adulteration and counterfeiting impacting the health of large groups of a population.

Secure Pharma Chain Blog encourages all members of the supply chain to deploy technologies and solutions to both secure and authenticate their inventories from the criminal acts of theft, fraud, adulteration and counterfeiting.

Read more of the FiecePharma article, visit: ttp://www.fiercepharmamanufacturing.com/special-reports/top-10-pharma-cargo-thefts-value-2009-2010?utm_medium=nl&utm_source=internal#ixzz0sR3PFWnN

To learn more about pharmaceutical supply chain technologies, visit: http://www.xstreamsystems.net/.

2010 Pain in the (Supply) Chain Survey: Product Security Continues to Be a Major Concern

Findings show the industry’s greatest pain points and reveal companies’ plans for the year ahead and beyond.

UPS, a leading provider of healthcare logistics and transportation services, launched its third annual “Pain in the (Supply) Chain” survey. The survey taken by healthcare supply chain executives, measures concerns about business and supply chain issues in the wake of healthcare reform and other industry changes.

The Survey was conducted by Harris Interactive on behalf of UPS and consisted of blind, in-depth telephone interviews with senior-level decision makers at nearly 150 pharmaceutical, biotech and medical/surgical device companies. All of the survey respondents were responsible for supply chain and logistics at their company.

The “Pain” study is an excellent resource as it relates to the most relevant trends and thoughts of the healthcare industry leadership.

The survey key findings are organized by nine key trend areas including Product Security concerns.

Regarding Product Security, the 2010 survey found the following:

• In the nine key trend areas, Product Security is tied with Access to Global or Emerging Markets.

• Product Security ranks as the third largest supply chain issue following Managing Costs and Regulatory Compliance.

• Product Security ranks as the second largest barrier to global expansion.

• 40% of industry respondents are highly concerned about product security, specifically their concerns are:

o 69% cite attempts to counterfeit products
o 60% name product theft as a top challenge
o 53% worry about product diversion
o 50% name theft in transit as a key challenge

The survey confirms the trend that industry leadership is beginning to understand the relevance of the criminal acts, namely theft, fraud, adulteration and counterfeiting impacting product security within the various healthcare supply chains.

Secure Pharma Chain Blog encourages both industry leadership and regulatory agencies to deploy advanced technologies and solutions to combat the various product security challenges cited in the survey.

To view the UPS survey, visit: http://www.ups.com/.

To learn more about pharmaceutical supply chain security solutions, visit: http://www.xstreamsystems.net/.

FreightWatch International: May 2010 Cargo Theft Report

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released their monthly report on cargo theft for May 2010.

FreightWatch recorded 63 cargo theft incidents in North America during May; a negligible increase from the 61 recorded in April. As is the most common M.O. in North America, slightly more than two-thirds of theft incidents reported to FreightWatch this month involved thieves commandeering stationary trailers with or without the paired tractor. Of the remaining third, three involved pilfering of trailers, two were driver-thefts, and fifteen lacked theft-type specification in their reports.

By commodity, pharmaceuticals experienced two incidents in May, one less than in April. However the May incidents were notable in that they happened in the same region/city and seemed to have been specifically targeted for their cargo.
The two pharmaceutical thefts in the report include:

• May 20th trailer theft of pharmaceutical products valued at $611,461. This theft has been reported in Secure Pharma Chain Blog on June 1st as being fifteen pallets of Lupin Pharmaceutical products.

• May 26th trailer theft of an unvalued amount of pharmaceutical products. This theft has been reported in Secure Pharma Chain Blog on June 14 as being several cases of products from Shionogi Pharmaceuticals.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire report from Freightwatch International, visit:

http://www.freightwatchintl.com/.

To learn more about supply chain security solutions, visit: http://www.xstreamsystems.net/.

DOJ/FBI: Georgia Man Pleads Guilty to Multi-Million-Dollar Cargo Theft Conspiracy

Goods Traced to More Than 20 Interstate Cargo Thefts Totaling More Than $3 Million Over Four-Year Period

In a June 2 Press Release, the Department of Justice and Federal Bureau of Investigation announced that a Georgia man, John Raymond Smith, has plead guilty in Atlanta Federal Court to conspiring to buy, receive and possess goods stolen from multiple interstate tractor trailer and container shipments throughout Georgia and the Southeastern United States from May 2005 and July 2009.

Mr. Smith also pleaded guilty to related cargo theft and money laundering charges.
The stolen goods included consumer goods, electronics, food and pharmaceuticals and many of the stolen shipments were bound for major retailers.

According to the Department of Justice Press Release:

· United States Attorney Sally Quillian Yates said of today’s plea, “Metro Atlanta is a major transportation hub, which makes it an attractive target for cargo thieves. By creating a market in this area for stolen goods, dealers like SMITH encourage others to steal interstate shipments, knowing that they will have a safe haven to unload and sell their truckloads of stolen goods. Consumers who buy these products should suspect they are stolen if they seem to be first-quality, name-brand products at unrealistically low prices.”

· IRS Criminal Investigation Special Agent In Charge Reginael D. McDaniel said, “Money laundering is not a victimless crime. This case is a prime example of how a criminal enterprise creates an underground, untaxed economy that harms our country's overall economic strength.”
· Georgia Bureau of Investigation Director Vernon Kennan said, “Cargo theft is an under-reported criminal phenomenon that has disastrous cascading economic consequences to Georgians. This annual estimated five billion dollar criminal activity negatively impacts transportation providers, retailers and consumers through higher shipping, insurance premiums and retail costs. These modern-day pirates cruise the nation's asphalt interstate corridors and parking lots, much like their predecessors who sailed the open seas for unsuspecting targets of opportunity. These pirates have been stopped.”

· According to United States Attorney Yates, the charges, and other information presented in court: Between May 2005 and July 2009, SMITH, who operated “Smith Sales Company” out of warehouses in Mableton and Hiram, Georgia, conspired with ROBIN L. CHEATWOOD, who operated “A-Z Discount” in Cedartown, Georgia, and other co-conspirators to buy, receive, and possess goods stolen from nearly two dozen interstate tractor trailer and container shipments valued at over $3 million throughout the Southeastern United States, including shipments stolen in Alabama, Georgia, South Carolina, and Tennessee. The tractor trailers and containers were stolen while parked at truck stops, motels, and container storage facilities, often at night. SMITH, CHEATWOOD, and others then sold the goods at discounted prices to consumers and wholesalers.

· As part of a plea agreement with the government, SMITH pleaded guilty to a three count Criminal Information filed on May 17, 2010, charging one count of conspiracy; one count of buying, receiving, and possessing goods stolen from an interstate cargo shipment; and one count of money laundering. He could receive a maximum sentence of up to 5 years in prison on the conspiracy count, 10 years in prison on each of the cargo theft and money laundering counts, and a fine of up to $250,000 on each count.

Mr. Smith’s sentencing is scheduled for August 17, 2010, at 9:30 a.m., before United States District Judge William S. Duffey, Jr.

This conspiracy of cargo theft underscores the vulnerability of the pharmaceutical supply chain and is evidence of how vulnerable the products that they consume daily are and the growing prevalence of adulterated, fraudulent and counterfeit medications.

Secure Pharma Chain Blog, endorses the concept of all members of the supply using authentication technologies to verify their inventories and chain of custody.

To learn more about pharmaceutical supply chain solutions, visit: http://www.xstreamsystems.net/.

SecuringPharma: Another Pharma Cargo Theft in Memphis

Shionogi suffers cargo theft on the heels of the large theft of Lupin products in Tennessee.

According to SecuringPharma.com, Shinogi a Japanese pharmaceutical company with a US division was hit by cargo thieves towards the end of May.

As reported by SecuringPharma.com:

· The theft was of two cases of its OraPred a prednisolone product stolen from a trailer parked at a truck stop in Memphis, Tennessee.

· The Pharmaceutical Cargo Security Consortium said the small amount of material stolen could mean the incident was a 'probe' – in which thieves take a small amount of material to identify what pharmaceuticals are being distributed in the area.

· PCSC also notes the incident could be linked to the theft of two pharmaceutical shipments in the Memphis area earlier in May.

This theft underscores the vulnerability of the pharmaceutical supply chain and undermines the confidence of consumers.

Secure Pharma Chain Blog, endorses the concept of all members of the supply using authentication technologies to verify their inventories and chain of custody.

To learn more about pharmaceutical supply chain solutions, visit: http://www.xstreamsystems.net/.

To read the entire SecuringPharma.com article, visit: http://www.securingpharma.com/40/articles/499.php.

Forbes: The World's Biggest Illicit Industries

Nathan Vardi reports in a June 4th edition of Forbes.com on the World’s Biggest Illicit Industries.

According to Forbes.com the seven illicit industries are:

· Counterfeiting
· Illicit Drugs
· Cargo Theft
· Cigarettes
· Oil Smuggling
· Human Trafficking
· Art Theft

Mr. Vardi states, “from drugs to oil smuggling, the dark side of globalization generates hundreds of billions in profits annually.”

Of the seven primary illicit industries, three of these (counterfeiting, illicit drugs and cargo theft) significantly impact the health care of consumers via fraudulent, adulterated and counterfeit drugs within the legitimate pharmaceutical supply chains globally.

Here are some of the highlights from Mr. Vardi’s piece:

· “But it's not the only criminal enterprise raking in billions of dollars a year. The world's biggest illicit industries continue to grow by circumventing national laws and regulations, and taking advantage of new international networks and technologies. This dark side of globalization has generated huge profits and political instability. The exact size of these industries can be estimated only vaguely, but their scope and impact cannot be denied.”

· Counterfeiting - The Organization for Economic Cooperation and Development in 2009 said the international trade in counterfeit and pirated goods increased to more than U.S. $250 billion, almost 2% of world trade, up from US$200 billion in 2007. The world is awash in fakes--from trademarks like Nike to copyrighted music and high-tech invention like pharmaceuticals or computer chips. The World Customs Organization guesses that counterfeiting accounts for 5% to 7% of global merchandise trade.

· Cargo Theft - Cargo theft is as much as a $30 billion problem annually, according the Federal Bureau of Investigation, which points out it can include anything moved by truck or plane--tailored suits, frozen shrimp, computer chips, toilet paper. These are often non-violent thefts of goods in transit, but they can include sophisticated methods that often involve surveillance. The U.S., Mexico, Brazil, South Africa, Russia, India and the U.K. are the countries most at risk for cargo theft globally, according to FreightWatch International.

· Still, while the size and reach of global illicit industries can seem overwhelming, there are signs of hope. Law enforcement groups from around the world are learning to cooperate in the battle against international crime. Just this week seven people were arrested in Liberia in connection with a conspiracy to distribute more than $100 million of South American cocaine in Europe after the son of the president of Liberia worked undercover with U.S. drug agents.

Secure Pharm Chain Blog has reported extensively on the growing threat of these illicit industries and the impact that it has on the health and welfare of consumers througout the globe.

Secure Pharma Chain Blog, endorses increased cooperation between countries through enhanced enforcement and in the various global supply chains (specifically pharmaceuticals) incorporating various technologies to protect their inventories and consumers from fraudulent, adulterated and counterfeit medications.

To learn more about supply chain solutions, visit: http://www.xstreamsystems.net/.

To read the entire Forbes.com article, visit:
http://www.forbes.com/2010/06/04/biggest-illegal-businesses-business-crime.html

Lupin Pharmaceuticals Notifies Distributors of Large Cargo Theft

On May 21st a trailer containing 15 pallets of Lupin Pharmaceuticals' generic drugs were stolen in Memphis, Tennessee from a commercial transportation parking lot.

To date, Lupin has not issued a public announcement to warn consumers on its website or via a press release but has sent a letter to drug wholesalers with details and quantities of the stolen medications.

Included in the thefts were large quantities of generic cholesterol-lower pills, antibiotics and epileptic medications.

To see a copy of the letter sent to wholesalers with the details of the stolen drugs, visit: http://freepdfhosting.com/eb3250947f.pdf.

This theft underscores the vulnerability of the pharmaceutical supply chain and undermines the confidence of consumers because it is likely that these stolen medications will end up being sold over the internet, are adulterated in someway or the contents be repackaged and the original bottles used for counterfeit medications.

Secure Pharma Chain Blog, endorses the concept of all members of the supply using authentication technologies to verify their inventories and chain of custody.
This lack of information from Lupin is evidence of the industries fear of the public-at-large understanding how vulnerable the products that they consume daily are and the growing prevelance of adulterated, fraudulent and counterfeit medications are even in the US.

To learn more about pharmaceutical supply chain solutions, visit: http://www.xstreamsystems.net/.

FreightWatch International Issues Pharmaceutical Cargo Theft Alert

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released a pharmaceutical cargo theft alert.

Two trailers loaded with an undisclosed value of pharmaceuticals were taken from a trucking company parking lot in Memphis, Tennessee between 10 p.m. Thursday, May 20th and 8 a.m. Friday, May 21st.

Both trailers had been loaded at a local pharmaceutical distribution center, moved to the trucking company lot and dropped unattached to a tractor.

One of the trailers was returned to the transportation provider's lot after being taken and the pharmaceuticals removed.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire alert from Freightwatch International, visit: http://www.freightwatchintl.com/.To learn more about supply chain security solutions, visit: http://www.xstreamsystems.net/.

FreightWatch International: April 2010 Cargo Theft Report

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released their monthly report on cargo theft for April 2010.

FreightWatch recorded 61 theft incidents in North America during April 2010. Of the recorded thefts in April, the highest frequency was seen in California, which contributed more than one-third of the total with 23 recorded.

By commodity, pharmaceuticals experienced three incidents in April, two less than in March.

The three pharmaceutical thefts in the report include:

• April 9th a high jacking at a public access lot in Nashville, Tennessee of undisclosed pharmaceuticals of an undisclosed value.

• April 15th warehouse burglary at a drug distribution warehouse in Richmond, British Columbia of undisclosed pharmaceuticals worth $40,000.

• April 17th theft of a trailer at a truck stop in Mill Hall, Pennsylvania of undisclosed pharmaceuticals of an undisclosed value.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To read the entire report from Freightwatch International, visit: http://www.freightwatchintl.com/.

To learn more about supply chain security solutions, visit: http://www.xstreamsystems.net/.

Smash and Grab Raid at Pharmaceutical Warehouse

Phil Taylor in a piece in SecuringPharma.com reports on a smash and grab raid of a pharmaceutical warehouse in British Columbia.

The Pharmaceutical Cargo Security Consortium has reported another pharmaceutical warehouse burglary at a wholesaler in Richmond, British Columbia, Canada.

The incident occurred on April 15 and resulted in the loss of around $40,000-worth of inventory, says the PCSC, which warned recently of an upsurge in suspicious activity around pharmaceutical facilities in the wake of the $76m raid on Eli Lilly's distribution facility in Enfield, Connecticut.

According to the report from PCSC, on April 15th, five individuals broke into the wholesaler’s warehouse lobby in a smash-and-grab raid in which they attacked the warehouse, cage and vault.

To read the SecuringPharma.com story online, visit: http://www.securingpharma.com/40/articles/451.php.

The issue of pharmaceutical cargo theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

As the value and prevalence increases, so too does the potential risk to consumers.

To learn more about material screening/anti-counterfeiting solutions, visit: http://www.xstreamsystems.net/.