True Cost of Copper Theft

Tangible:

• -Material: original and replacement costs that often exceed value of the stolen copper wire
• -Labor: repetitive repairs that take time away from other system maintenance projects
• -Lost revenue: unplanned outages that disrupt service and jeopardize public safety
• -Insurance rate hikes due to increased financial liability to maintain system reliability

Intangible:

• -Human risk: ungrounded equipment near public areas; risk to utility personnel who make repairs
• -Equipment risk: lack of grounding increases likelihood of expensive damage that cascades through the system
• -Security: added cameras and personnel for round-the-clock surveillance
• -PR: negative public opinion from customers and regulators about safety and system reliability

With every copper theft, public safety is threatened. From ballpark lighting at the neighborhood schoolyard, to homes, businesses, and traffic signals, the stripping of grounding wire exposes countless innocent people to electrical shock, or worse.

And, with the price of copper increasing 500 percent in recent years, the risk of electrocution appears to be an accepted job hazard for copper thieves eager to get in on the booming business of scrap metal sales.

Copper theft is on the rise across the country and the world.  As global demand grows—along with the price thieves receive for the stolen metal—the problem continues to escalate.

Thieves target copper wire from utility substations, warehouses, homes, and construction sites, among other locations. This can start a chain reaction that has devastating effects on the reliability of the electrical grid and the community.

Curbing Copper Theft Requires Partnership Among Utilities, Recyclers, and Law Enforcement

Across the globe, partnerships among utilities, recyclers, and law enforcement are tackling the universal problem of copper theft that impacts nearly every industry. As awareness grows, the hope is that copper theft won’t be viewed as much of an ‘easy money’ target as it is today.

Stopping Copper Theft is Everyone’s Responsibility

Utilities: Proactively installing theft deterrent solutions; educate customers to report suspicious activity.

Recyclers: Taking an active role in building relationships with utilities, law enforcement and business partners to make a difference.

Law Enforcement: Engage in a relationship with utilities and recyclers. Focus on prosecution through proof of ownership.

Private Property Owners: Take proper measures to secure installed copper. Report theft to law enforcement and recyclers.

Sending bad guys to jail is the best deterrent. That’s why advocating best practices for buying policies and working with local lawmakers to make copper theft a felony is important.  In most states, theft is still only a property crime. But communities are getting serious.

In Ohio, five people were recently sentenced to prison for their roles in a conspiracy to steal copper from two dozen electrical substations.  The Federal Bureau of Investigation led the prosecution that ordered one of the thieves to pay more than $206,000 in restitution to the utility.

In Pennsylvania, Verizon’s popular ad slogan, “Can you hear me now?” was no laughing matter after a string of copper thefts totaling $60,000 in damages hung up service to hundreds of phone customers. The company responded by offering up to $50,000 for information that led to the arrest and prosecution of anyone who had stolen copper cable in two local counties.

Verizon is hardly alone in its copper theft fight. Several national and regional telecoms have joined the copper theft battle with help from community members and state lawmakers. In West Virginia, the attention generated from a state lawmaker’s bill is credited with helping reduce reported copper thefts.  At least four other states including Georgia, Iowa, Kentucky, and Washington have introduced new copper theft laws.

Recyclers are on the front lines of the copper theft epidemic. Thieves hawk their stolen goods to locations with reputations for not asking too many questions. Cutting off point-of-sale with regulations requiring proof of ownership is very effective in getting crooks behind bars.

To build a case that will get a conviction requires the utility proving ownership and linking it to the scene of the crime. The commonality of copper wire has made that difficult.  However, new technologies are making it easier for recyclers to instantly identify stolen copper, and in turn, provide law enforcement the hard proof they need to prosecute criminals.

Copper Theft Deterrents Range from Low-Tech to High-Tech

SPRAY PAINT:

Physically marking copper with brightly colored spray paint to alert recyclers who have been trained on a notification process for informing law enforcement that, for example, “yellow is the power company.”

How it works at a recycler: Prompts employee to take a second glance and report it

Pros:

• Highly visible (unless thief scrapes or burns it off)

Cons:

• No definitive, physical proof of ownership
• Does not prevent theft

DATADOTS:

DataDots are tiny microscopic discs that contain unique identification data visible with a UV light and magnifying glass.  As small as a grain of sand, data dots are applied to a surface by brushing or spraying.

How it works at a recycler: Scrap metal comes in for recycling, and must be thoroughly checked with a black light to confirm presence of DataDots.   Employee enters information into the DataBaseDNA site to confirm ownership, and contacts law enforcement if there’s not a match.

Pros:

• Virtually undetectable when applied correctly
• Ownership data is maintained in a single, secure location
• Difficult to remove all of the markers through normal means

Cons:

• Virtually undetectable without a black light and magnifying glass
• Wiring may only be marked in a single area and be overlooked
• Can be removed through burning or long-term exposure

COPPER CLAD STEEL:

Copper clad steel is steel core covered in thin layer of copper and is primarily used as a less expensive utility grounding wire.

How it works at a recycler: Steel is magnetic, so holding a magnet to suspected copper-clad steel reveals whether the core is steel or, in fact, solid copper.

Pros:

• Nearly the same conductivity as solid copper
• More cost-effective for utilities
• Less scrap value

Cons:

• Looks like solid copper, so thieves may still cut it out, even if they don’t take it
• Does not prevent theft

CAMERAS/MOTION DETECTION:

Video recording devices used in substations and other high-value asset areas record activity when sensors are tripped.

How it works at a recycler: Recycler has to be notified of the theft and be on the lookout for the suspects in the camera footage.

Pros:

• Video evidence for prosecution
• Security and law enforcement can be instantly alerted to activity
• Lower cost than 24/7 physical security presence

Cons:

• Can be difficult to positively ID a person if there’s not a good camera angle or poor resolution
• High initial cost and diminished lifetime when used in substations
• Often does not prevent theft

TRACEABLE COPPER CONDUIT:

A new technology uses copper conductor that is laser etched with unique, owner-specific serial codes that can be traced through a web-based database that stores purchase records.

How it works at recycler: Recyclers can identify the owner of the conductor by entering the codes etched on the center strand of the wire through an online database or free smartphone app.

Pros:

• Web-based system indicates the rightful owner within seconds
• Proof of ownership strengthens chances of conviction
• Unique “candy stripe” design makes it easily identifiable to recyclers and would-be thieves, who may avoid taking a chance on the traceable wire.

Cons:

• Requires investment in new wire and human resources to maintain online purchase records
• Recyclers must be trained in recognizing the traceable wire and confirming ownership using the online database