New Zealand Security - January-February 2022 by Defsec New Zealand

February/March 2022

New Zealand Security Magazine

WHAT SECURITY OFFICERS SAY ABOUT THEIR WORK Standards Setter: Doug McCormick

COVID through a National Security Lens

The Psychology of Security

Access control statesman and security industry luminary recognised for service to the sector and standards setting.

Dr John Battersby argues that the consequences of the COVID response may generate risks we are less able to mitigate.

Selling peace of mind: security professionals must understand the underlying psychology of what makes us feel secure.

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CONTENTS ISSN Print 1175-2149 • ISSN Online 2537-8937

From The Editor........................................................................................................................................................................ 6 Shoot ‘em up – with video...................................................................................................................................................... 8 Research: What security officers say about their work.................................................................................................... 10 A Brief glimpse at COVID through a National Security Lens.......................................................................................... 14 NZIPI Update........................................................................................................................................................................... 17 US bank regulator reports key risks and effects of COVID-19...................................................................................... 18 Risk and Resilience New Zealand Summit.......................................................................................................................... 20 Call for papers: National Security Journal ‘Security beyond Government’.................................................................. 22 Holography to grow in 2022 amid COVID-19 im pact and new threats.................................................................... 24 Integrated Surveillance Monitoring Even In Off-grid Scenarios? Yes, It’s Possible!.................................................... 26 NZSA CEO’s January Report................................................................................................................................................. 28 NZ Certificate in Electronic Security (NZCiES) qualifications......................................................................................... 31 Standards Setter: Doug McCormick conferred NZSA Life Membership...................................................................... 32 AML/CFT risk ratings confirmed for sectors under FMA supervision.......................................................................... 36 Ransomware continues to rise as nations struggle to address payouts....................................................................... 38 Safer Internet Day: Reducing online harm......................................................................................................................... 39 The Psychology of Security................................................................................................................................................... 40 Mandatory booster vaccinations for key workforces progressing.................................................................................. 44 Romance scams cost victims almost $350 million in 2021............................................................................................ 46

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FROM THE EDITOR Kia ora and welcome to the February-March 2022 issue of New Zealand Security Magazine! In this issue we kick the year off with our traditional Feb-Mar focus on the banking and finance sector as well as all the latest industry news. Firstly, a big thanks to our wonderful advertisers (both print and online) who have already signed up for 2022. Quality journalism and expert commentary comes at a cost, and our advertisers play an important role by contributing to a vibrant and informed security sector through their sponsorship of the magazine. Our gratitude for this first issue of NZSM for 2022 extends to our supporters and leading manufacturers and distributors Loktronic, Hikvision, Panasonic, Dahua and Dicker Data. We’d also like to recognise our association partners for this issue, the New Zealand Security Association, the New Zealand Institute of Private Investigators, ASIS International, Risk NZ, and the New Zealand Security Sector Network. Inside this issue, there’s plenty of compelling reading to catch up on while you relax in the backyard, by the pool, or during a lunch break under the Summer sun. We suggest you start with our coverage of access control luminary Doug McCormick’s appointment as the NZSA’s newest life member. Congratulations to Doug on this rare accolade, and for a career of service to the security sector both in New Zealand and internationally. In an extended article, I review the recently released report The Competence of Frontline Security Professionals and What They Say About Their Work published by the International Foundation for Protection Officers (IFPO) and undertaken by Perpetuity Research. The findings shed fresh light on security officer perceptions of their jobs, training, and the competence of their colleagues. On matters of national security, counter terrorism specialist and regular NZSM contributor Dr John Battersby argues that a myopic focus on the pandemic’s impact, as well the growing social and economic fault-lines it is opening up, will generate risks in an environment in which we are less able to mitigate them. Also among our feature articles is a great piece on the psychology of security and the challenge of navigating security as both a feeling and a reality, and understanding how the perception of the risk differs from the reality of the risk. A thought-provoking discussion that’s bound to elicit much debate. All this, plus the latest industry and product news to get your year underway! Lastly, from the team here at NZSM all the best for a happy, successful and rewarding 2022! Stay safe, and stay well. Nicholas Dynon, Auckland

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New Zealand’s National Defence, Fire and Security Publishers of: Line of Defence, FireNZ, New Zealand Security Magazine

Contact Details: Chief Editor, Nick Dynon Phone: + 64 (0) 223 663 691 Email: nick@defsec.net.nz Publisher, Craig Flint Phone: + 64 (0)274 597 621 Email: craig@defsec.net.nz Postal and delivery address: 27 West Crescent, Te Puru 3575, Thames, RD5, New Zealand

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Upcoming Issue April / May 22 Government, Transport, Tourism, Access management, IT security threats

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NZSM New Zealand Security Magazine

Nick Dynon Chief Editor Nick has written for NZSM since 2013. He writes on all things security, but is particularly fascinated with the fault lines between security and privacy, and between individual, enterprise and national security. Prior to NZSM he clocked up over 20 years experience in various border security and military roles.

Disclaimer: The information contained in this publication is given in good faith and has been derived from sources believed to be reliable and accurate. However, neither the publishers nor any person involved in the preparation of this publication accept any form of liability whatsoever for its contents including advertisements, editorials, opinions, advice or information or for any consequences from its use. Copyright: No article or part thereof may be reproduced without prior consent of the publisher.

February/March 2022

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Shoot ‘em up – with video Hikvision’s complete security solutions for bank branches Everyone has a favourite heist film – whether it’s a traditional ‘shoot ‘em up’ like ‘Bonnie and Clyde’, or something a bit more hi-tech, like ‘Oceans 11’ they’re compelling viewing. However, more often than not, the audience sympathies are with the thieves. Of course, in reality, bank robberies cause a lot of damage, stress and injury, let alone the financial losses. Hikvision has all kinds of state-of-the-art technology to provide a full security solution for the banking industry – from the lobby to the vault deep within the bank’s walls. It’s not just in security where banks are exploring AI and the use of technology to gain an edge. According to Statista 2022, IT spending in banking globally is expected to reach 570 billion U.S. dollars and will grow

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steadily to 715 billion U.S. dollars in 2025.1 There are a number of priorities for banks. The most obvious ones are securing customers, employees and assets, but there are also considerations like collecting reliable video clips for investigation, intelligence to help them make business decisions and streamlining processes to manage all of their branches effectively. In the end, like all business, they are also looking to increase customer satisfaction. The development of AI and video security technology gives banks significant flexibility and new opportunities to build an interesting future, and this has scope across the entire bank. Entering the Bank the front door and the lobby Banks need to be aware of who is coming in and out – the starting point of monitoring. Clarity is important here, especially since the environment could lead to strong back lighting (on

a bright day when the light behind the person coming in is a lot stronger than the ambient light inside). This is where WDR-enabled cameras come in, with the technology rendering a crystal-clear image, even in this environment. Super WDR can reach up to 140db, making everything clearly visible. It’s also useful for banks to know footfall numbers of people coming in – to help with business decisions. A People Counting camera at the entrance takes care of that, with smart technology able to distinguish individuals, so they’re only counted once, ensuring an accurate count. At the counter The main day-to-day activities of the bank happen at the counters. Counter transactions need to be recorded clearly to solve the disputes. HD cameras can give 4K resolution to provide good images where a bilateral close-up view is needed.

February/March 2022

When recordings are clear, both counter staff and customers are protected, should any disputes need to be resolved. Of course, cameras give close detailed images available for general security too. Waiting time can have a devastating effect on the customer experience. If a customer sees a long queue in a bank, they may leave again. Queue detection solutions can help customer services teams manage the lines, and the queue detection cameras are designed to monitor queues in realtime. The cameras count the number of people in each queue, and if there are too many people in each line and customers still continue to walk into the bank it triggers an alarm to service management, who can open a new counter. Security deep in the vault In the depths of the inner bank lies the vault – usually the first priority for security in any bank. Because vaults are often in low light areas, ultra-low light cameras like Hikvision DarkFighter are really useful to be able to monitor and record crystal-clear images even in the dead of night. Often, access corridors and areas close to the vault will be covered by cameras too – giving a full overview if a person’s movements need to be tracked through the building. Video analytics rules can also be set up to alert February/March 2022

operators if a person ventures beyond a certain point – useful to prevent unauthorized persons from entering more sensitive areas. It all comes together in the Security Centre The place that few people see is the hub of all of the security activity. Feeds from all of the cameras can be managed and stored in the Security Centre using a video management software solution, like Hikvision HikCentral, simplifying security processes. Users can also access the security system via laptop or mobile which increases flexibility and efficiency of the security operations. Technology is evolving with banking With banks evolving and offering more and more services to their customers, the security challenges are also changing. The need to be constantly aware of who is in their building and monitor all activities – from the main lobby and banking counters to the vault itself. And bringing all of this information together becomes more important too – not just so that operations staff can access it when needed, but also because it provides valuable support for business decisions. That’s when surveillance starts to add a lot more value – helping them to serve their customers and improve the experience they have when using the bank.

Of course, the likelihood of most of the famous heists in film history actually being pulled off becomes very slim in the face of smart new technologies to monitor and secure our banks. Some of us will probably have to stick to routing for the villains in our favourite heists movies…. https://www.statista.com/ statistics/1154162/worldwide-bankingsecurities-spending-forecast/ 1

About Hikvision Hikvision is an IoT solution provider with video as its core competency. Featuring an extensive and highly skilled R&D workforce, Hikvision manufactures a full suite of comprehensive products and solutions for a broad range of vertical markets. In addition to the security industry, Hikvision extends its reach to smart home tech, industrial automation, and automotive electronics industries to achieve its long-term vision. Hikvision products also provide powerful business intelligence for end users, which can enable more efficient operations and greater commercial success. Committed to the utmost quality and safety of its products, Hikvision encourages partners to take advantage of the many cybersecurity resources Hikvision offers, including the Hikvision Cybersecurity Centre. For more information, please visit us at www.hikvision.com. NZSM

Research: What security officers say about their work A recently published report sheds light on security officer perceptions of their jobs, training, and the competence of their colleagues. It provides fresh perspective, writes Nicholas Dynon, in an area otherwise dominated by stereotypes.

It’s an unwelcome fact: to put it diplomatically, the media is often not kind to the security industry – and to security guards in particular. So much so, in fact, that one might be led to believe that the media seems to have something against private sector security officers.

Negative stereotypes When guarding hits the media it’s usually for the wrong reasons, whether it’s footage of bar security beating up a non-compliant patron, guards sleeping or engaging in inappropriate social media while on duty, security officer corruption or links to organised crime, the media seems to love making private security look bad.

Nicholas Dynon is chief editor of NZSM, and a widely published commentator on New Zealand’s defence, national security and private security sectors.

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February/March 2022

And it’s not just the 24 hour news cycle that perpetuates negative stereotypes of security officers as unfit, unprofessional, and incompetent. With Hollywood serving us up the likes of Paul Blart: Mall Cop (2009, and the 2015 sequel) and Richard Jewell (2019), cinema and home audiences everywhere are fed depictions of private security officers as well intentioned yet bumbling law enforcement wannabes. And if that’s not enough, our own government is also in on the antiguard antics. There was, of course, Prime Minister Jacinda Ardern’s infamous claim in April 2021 that an MIQ security guard “was lying” about his COVID-19 tests. This followed Housing Minister Megan Woods’ suggestion in August 2020 that private security wasn’t up to the task of securing MIQ sites and that the government could do a better job. Yet private security guards continue to guard MIQ facilities, as well as countless other sites for government, hospitals, schools, businesses and communities around New Zealand. They do so in their tens of thousands, and as the market’s response to the gradual decades-long retreat of the New Zealand Police from the services that police used to provide, such as event security, alarm response, and other frontline tasks. They do so without weapons and without any legal powers beyond those held by ordinary citizens. They do so in the almost complete absence of public recognition and of thanks for their service. It would appear that our media, cultural and political elites have been dominating the narrative when it comes to describing the value and performance of the nation’s private security officers. And it’s fairly clear that their descriptions do not tend to be very positive. So, is all this negativity against our private sector protectors of the community at all warranted? Can there be justification for our hard working security officers receiving the ire of our society’s influencers? In short, how do our private security officers actually perform? February/March 2022

What security offers say The Competence of Frontline Security Professionals and What They Say About Their Work was published in September 2021 by the International Foundation for Protection Officers (IFPO) and undertaken by Perpetuity Research & Consultancy International (PRCI). According to the report, negative perceptions of security offers is a global phenomenon. “The security sector generally, and security officers/guards specifically suffer from an image problem,” states the report authors. “Around the world the perception of the poorly presented, badly dressed, under trained,

overweight, hapless male security guard pervades.” “Negative perceptions of frontline security work have been fed by a longstanding concern about the competence of operatives,” it continues. “In short, the perception is that despite the important work that security officers engage in, which may even be considered essential, many of those who are involved are neither able nor professional. But is this true? What competencies are needed? Where are the gaps and how can they be filled?” The objective of the report and its associated survey and interviewbased research is to better understand NZSM

the perspectives and experiences of frontline security personnel, with the aim of highlighting key considerations for enhancing their capabilities. In particular, the research explored the range of tasks that security officers undertake, the perceived difficulty of those tasks and of the competence of their colleagues, and the effectiveness of training. It also looked at other key issues impacting on frontline security personnel, including licensing and the use of force (including carrying weapons). The report’s findings are based on 10,625 responses to a survey of security officers from nine countries: Canada, Ecuador, India, Ireland, Nigeria, South Korea, Saudi Arabia, the UK, and the USA; supplemented by online oneto-one interviews with 42 security professionals. General perceptions According to the report, general perceptions among respondents of working in security were fairly positive. 59% indicated their work provides an opportunity to serve the public; 57% indicated that the hours of work suited them; 55% indicated the work is interesting. Although 53% overall saw it as a career, 56% of those that receive on-going training agreed, compared with 38% of those that do not. On the matter of pay, 38% stated that they feel that it pays well, whereas 37% neither agreed nor disagreed that it does, and 23% disagreed. Among UK respondents, only 23% agreed that it pays well, and those employed by guarding companies were least likely to feel that their job pays well (29%) compared to those employed in-house, who were most likely to agree (47%). Frequency of tasks Categorising the work of security officers into six ‘typical’ tasks, the survey found that undertaking access control is the most common (54% did this often); followed by undertaking physical patrols (48%), customer service (44%), monitoring and managing alarms and emergencies (39%), enforcing rules (39%) and finally basic investigations (32%). 12

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It found that the frequency with which officers undertake particular tasks is influenced by a number of characteristics, including sector, age of respondent, and education level of respondent. Officers employed by a contractor, for example, were the most likely to carry each out ‘often’, those employed were next likely, and those selfemployed the least likely, indicating that there is more specialisation among self-employed officers. Respondents who had worked in security the longest were the most likely to indicate each task is ‘core’. Difficulty of tasks Respondents rarely perceived the abovementioned six tasks to be ‘difficult’, with most perceiving each task as either ‘easy’ or ‘average’. Customer service was the task most commonly seen as ‘easy’ (50%); followed by physical patrols/ surveillance (49%), access control (45%), monitoring and managing alarms and emergencies (43%), basic investigations (42%) and enforcing rules (37%). Competence Overall, a fairly low proportion of respondents perceived their colleagues to be ‘low’ in competence – between 6% and 13% of respondents rated their colleagues as ‘low’ in competence in each activity. Respondents more commonly rated their colleagues as ‘high’ in competence than ‘medium’ although at most 53% of respondents rated colleagues as ‘high’ in competence in any given activity – suggesting that ample room remains for improvement in how well activities are completed. The activities most commonly perceived to be carried out with ‘high’ competence were customer service (53%), and emergency response (51%). Those least commonly perceived to be carried out with ‘high’ competence were working with civil and criminal codes, statutes, bylaws, codes etc. (39%), conducting an investigation (41%) and both report writing (42%) and written communication skills (42%). “Although there were some specific variations across a number of

characteristics, the only clear overall trend in respect of perception of competence and the characteristics of respondents, was that across all of the tasks explored, those who receive on-going training within their current role more commonly viewed their colleagues to be high in competence than those that do not receive any on-going training,” stated the report’s authors. “This would suggest that ongoing training is an important factor in performing competently.” Training Although only between 5% and 9% of respondents perceived their training across each activity to be ineffective; those rating the training as ‘highly effective’ topped at only 55%. There was a strong correlation between work areas where training was rated as ‘highly effective’ and where work is perceived to be carried out with a high level of competence, including customer service, situational awareness, and emergency response. Correspondingly, those where the training was least commonly rated as ‘high (effective)’ were the same as those least commonly perceived to be carried out with high competence by colleagues. 85% of respondents indicated that they do receive on-going training, although it should be noted that a very wide definition was used (including both formal and informal types). Contracted respondents were less likely to receive on-going training than inhouse and self-employed respondents. Site-specific training 10% of respondents indicated that they had received no site-specific training after being assigned to their current site. Employment type impacted on the likelihood of receiving site- specific training (contracted respondents were less likely to receive it than in-house and self-employed respondents), as did the presence of on-going training (those that do not receive on-going training are much less likely to have received site-specific training than those that do receive on-going training). February/March 2022

Licensing 82% of respondents indicated that they need a license to undertake their current work as a security officer. 60% agreed that licensing increases the trust placed by law enforcement/ agencies in security personnel to do their jobs, while 55% believed that the licensing process gives security officers a better understanding of their duties, and 25% thought licensing to be a waste of time. Use of force According to the report, 31% of respondents indicated that they never use force; 25% use force about once per year; and 23% use force about once a month (although this figure is much less in the UK). Cash-in-transit/armored car guards were the most likely to have used force, followed by door supervisor/bouncers and undercover store detective/loss prevention. In terms of sector, use of force was most common in the executive protection sector. Respondents that receive on-going training were much more likely to use force than those who do not receive February/March 2022

it, while contracted respondents were much less likely to use force than their in-house and self-employed counterparts. The training received in the use of force was most often (38%) perceived to be adequate, while a third (33%) perceived it to be effective. One in ten respondents (10%) thought it was not effective (‘low’). Cash-in-transit/ armoured guards were much more likely to perceive training in the use of force to be effective, which reflects their likelihood of using greater levels of force. Carrying a weapon Respondents were asked whether they ever carried a weapon and 35% said they did not. Of those that did, the weapon carried most commonly, by a third of respondents (33%), was an electrical energy device. Nearly as many carried a striking weapon (29%), and more than a fifth (22%) carried a chemical irritant. Less than a fifth (17%) carried a firearm. The vast majority of those that carried a weapon thought they had received adequate training in how and when to use it (90%). Respondents

holding a license were much more likely to indicate they had received adequate training to use their weapon(s) than those without a license. Further, respondents that (generally) receive ongoing training were much more likely to indicate they had received adequate training to use their weapon(s) than those who do not receive on-going training. In conclusion, while the report’s detailed results were interesting enough, what was perhaps most compelling about the report was that it presents the perspectives of those engaged in an occupation that is otherwise relatively silent, and in doing so it sheds an important and new light on security officers and their jobs. Importantly, it also gives some insight into those areas where security officers do well, and those where there are opportunities for improvements and change. In doing so, it provides for insight into the occupation beyond the negative stereotypes that otherwise obscure it while also identifying potential areas where positive developments might assist in the eventual demolition of these stereotypes. NZSM

A brief glimpse at COVID through a National Security Lens Dr John Battersby argues that a myopic focus on the pandemic’s impact, as well the growing social and economic fault-lines it is opening up, will generate risks in an environment in which we are less able to mitigate them. Covid-19 has produced an environment not anticipated when news of the Covid pandemic broke. Driven by fear of the unknown, predictions were for economic downturn, unemployment, and property market decline. While some sectors have been devastated and national debt has risen dramatically, the doomsayers were mistaken….at least for now.

Dr John Battersby is a Teaching Fellow at the Centre for Defence and Security Studies (CDSS), Massey University, specialising in terrorism and counter terrorism. He is also Managing Editor of the CDSS-published National Security Journal.

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The question of the impact of Covid on New Zealand’s national security is not one that is easily answered. It is not known how long the pandemic will last, how many times the virus will mutate and how effective vaccination and treatment will be in the long term. It could be a mistake to presume there will be a ‘back to normal endpoint’, but historically – entirely without vaccination or treatments, global pandemics have always eventually ended. The question remains, if an endpoint is inevitable, how far away is it? New ways of thinking about human security as a national security concept means Covid is clearly a major consideration. The maintenance of the health and well-being of New Zealanders, the accessibility of vaccination and treatment, the information/mis-information clash, and the need for health infrastructure – not just for Covid – are all factors in the human security of New Zealanders.

Can our business communities outlast the disruptions of lockdowns, the traffic-light system, closed borders and interruptions in commodity supply chains? These are big economic security questions and satisfactory answers are elusive. Has the government’s approach been dominated by an illusory imminent ‘back to normal endpoint’ based on a hope that the globe gets the virus under control in the not too distant future? The Omicron variant suggests this could be an illusion, with subsequent variants a possibility. In the meantime, national security considered in the traditional sense of existential threat to the state, and the state’s ability to mitigate it, is a worthwhile question to ponder. New Zealanders have for a long time now considered their geographical isolation as an insulator from threat, and in closing our borders against Covid we have banked on it. Domestically, New Zealand was not in the best of shape before the pandemic struck. Lulled by long periods of low inflation, low interest and high employment levels we thought our ship was on a steady course. We could see a housing crisis looming, but we seemed unwilling or unable to positively address it. A parliament wellendowed with multi-house owners was insufficiently motivated to resolve it, and social housing, a short-term remedy at best, has seen the proliferation of crime, drug and gang activity. Our cost February/March 2022

of living, especially food and fuel, were high despite us producing vastly more food than we needed. Covid’s sudden appearance in 2020 did not cause any of this to occur, but it has exponentially compounded its negative impacts. Interest rates and inflation are on the move, the cost of living is up; our attempts to construct houses are frustrated by shortages of building materials, while millions of logs are piled at our ports for export. Many of our businesses are eating into their savings or borrowing heavily to survive, while others seem to be profiting from the prevailing circumstances. Property prices have put houses out of reach of the average New Zealander. The rich are getting richer faster, the poor are poorer and there are now more of them. All of this could be put down to griping about the economy and thus hardly unusual. However, from an historical and global perspective, it’s a denied, aggrieved or dispossessed middle class that has often presented February/March 2022

the greatest risk to a country’s political stability. Additionally, Covid has opened up social fault lines between the mainstream acceptance of the vaccination strategy and a minority who oppose it, or who individually just don’t want it. Emulating protests overseas, those opposed to vaccination, or believing in individual choice, or who don’t like being told what to do, who dislike the ‘ute tax’ or who follow Brian Tamaki, or who have developed a pathological dislike of the Prime Minister, or are gang members taking the opportunity to give the middle finger to police, all have found that their paths intersect now. This creates a dilemma for intelligence analysts trying to interpret what this meeting of discontented minds in the streets, parks and in front of Parliament could all mean if it continues. In a worst-case scenario, Covid continues to mutate, governmentimposed restrictions continue medium to long term, and discontent ferments.

Protests proliferate, but result in no softening of the government’s position. The decision by a few in the context of Vietnam War protests of the early 1970s was that protest wasn’t working so stronger measures were necessary. In 1970, politically motivated bombings averaged one a month in New Zealand aimed deliberately to change New Zealand foreign policy on the Vietnam War. This could be complicated by individuals who have lost their jobs, or have chosen to leave them, amid the clear housing crisis, and with costs of living increasing all the time. Personal perceptions of grievances and desperation could lead down the wellworn path toward lone-actor terrorism; the path is short, and the option to take it could be quick. It can safely be assumed individuals fitting this profile have already come to the attention of police and intelligence services. Most will do no harm. As always, the challenge will be trying divine who will, before they do. NZSM

New Zealand’s capacity to deal with domestic threats is possibly already compromised. The government’s previous border strategy, the need to staff MIQs, and the traffic light system’s spot checks, and the controversial Northland checkpoints’ – has seen an enormous additional workload onto police. The media use the term – extra police – but there is no such thing. The extra police have been withdrawn from other duties, leaving gaps elsewhere, and more gaps will be left if they have to move staff to deal with increasing disorder. To aid the demands of MIQs the New Zealand Defence Force has been called on to augment the personnel available. Unlike police who largely train their personnel for normal duties by constant exposure to daily risks, NZDF spend the vast bulk of their time training to maintain unusual skills that are only really needed in an emergency, such as major humanitarian disasters or a break-down of constitutional authority, as has recently occurred in the Solomons. While military personnel are monitoring MIQs, these unusual skills are depleting and their ability to react to sudden and unusual circumstances depletes with it. Covid is almost certainly reducing New Zealand’s overall national security capacity, domestically and internationally. The 16

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longer Covid persists, the more likely a secondary risk will eventuate which will need to draw on that capacity – an earthquake, a volcanic eruption, a terrorist attack or an unforeseen event that has not occurred before. On the other hand, security professionals have a tendency for paranoia, and over-securitisation can create the very problems they seek to prevent by reacting to phantoms induced by what they fear. The protests so far have been overwhelmingly peaceful, and while the vast majority of New Zealanders do not subscribe to their views – this would not be unusual with protests generally. The complicating factor currently is that many of those opposed to vaccination, vaccination passports, or government restrictions under the traffic light system emerge from across the political spectrum (or have no political views at all) and predetermined assumptions about them is likely to misconstrue their intent, or risk, or potential to be a national security threat. Covid-19 is a demonstration that New Zealand is not insulated from national security threats by virtue of our geographical location. The value of distance has fuelled our ability to endure the pandemic without the adversity that other countries have suffered. But the tyranny of distance is evident in the way it has caused

us to look inward, the media and our political leaders risk becoming absorbed by our problems – we may not be looking at geostrategic shifts globally or regionally, or noticing the subtle moves by other powers, or non-powers (such as organised crime groups) to exploit the Covid distraction to increase their presence in our region. We have already been stung by an apparent neglect to anticipate the implications of our Afghanistan withdrawal – so what will tension over Taiwan bring us? What are implications of AUKUS? What are the short and long term implications of Bougainville’s ongoing uncertainty and what about the instability in the Solomons? What about larger geo-strategic players inserting themselves into our region, or into Antarctica? The recently released 2021 Defence Assessment outlines an expected worsening threat environment in the Pacific. But have we borrowed too much money for COVID, leaving us unable to afford the measures needed to prevent outcomes we would rather avoid? New Zealand’s Covid distraction may not have dimmed our awareness of national security concerns beyond our borders, but our ability to project and plan for the future, and our ability to meet policing, military or aid demands that may well emerge in any of these areas in the near or intermediate term have all been compromised. February/March 2022

NZIPI Update It’s been a busy time for the nation’s private investigators, with COVID ushering in new forms of fraud and more incidence of dishonesty. In addition, the NZIPI has a new name! 2022 is shaping up to be a busy year for Private Investigators. It is a sad indictment on our society that COVID has brought with it an increase in dishonesty offending across all spheres of business and with stretched Police resources commercial victims of fraud and theft are left to turn to the private sector. And, the figures being mentioned in the media show that the numbers are not low, often into the hundreds of thousands. Burglaries, car break-ins, stolen cars, boats, campervans even dishonesty

within family all feature in the work Private Investigators are tasked to investigate.

Our Institute name change has been accepted by the Registrar of Incorporated Societies along with our new rules which are now operating. As of now, only an individual who already holds a PI licence or COA can apply and be accepted into THE NEW ZEALAND INSTITUTE OF PRIVATE INVESTIGATORS INC. One aspect of the Private Investigator profession often not immediately recognised is the fact that the majority of individuals only hold a COA which permits them Ron McQuilter, Chairman NZIPI

Decide which type of PI Licence you require Do you operate as Individual / Sole Trader

Either Advertising for work / Working on your own behalf seeking clients / Hiring contractors

Individual Licence Form https://www.justice.govt.nz/ assets/Documents/Forms/BApplication-for-an-IndividualLicence-form.pdf

Do you operate your business by way of A Limited Liability Company

Do you operate as

A Contractor working only for a licenceholder

Company licence Form https://www.justice.govt.nz/assets/Documents/ Forms/D-Application-for-a-Company-Licenceform.pdf

Every working director requires

Certificate of Approval Form https://www.justice.govt.nz/ assets/Documents/Forms/ACertificate-of-ApprovalApplication-form.pdf

Certificate of Approval Form

If you trade as any other name you must seek approval from PSPLA [Sect 39 PSPLA Act] https://www.legislation.govt.nz/ act/public/2010/0115/latest/ DLM1594432.html

But you cannot trade with "Limited" in your name

https://www.justice.govt.nz/assets/ Documents/Forms/A-Certificate-of-ApprovalApplication-form.pdf

If there are more than one director Company Officer Form for each other director https://www.justice.govt.nz/assets/ Documents/Forms/E-Company-Officer.pdf

This chart, prepared by our Chairman Ron McQuilter might help explain the various types of licence and pathway available.

to only work for a licence holder, meaning that individual cannot advertise or seek work from a client independently. The profession operates very much on the contractor model with most Private Investigators assisting others and licence holders engaging contractors on an as-needed basis. In short, salaried staff are few and far between. Persons wishing to obtain a PSPLA Ministry of Justice licence with no formal investigative experience are recommended to undertake the C4 “Professional Investigations (Foundation)” course https://c4group.co.nz/wp-content/ uploads/2020/09/PI.pdf This course is endorsed by NZIPI and the PSPLA. Upon completion of the course, the individual would then require a letter from a licence holder to obtain a COA. If a person does have relevant experience already, such as a former police officer, they can apply to PSPLA to be licensed.

US bank regulator reports key risks and effects of COVID-19 The US Office of the Comptroller of the Currency’s Semi-annual Risk Perspective for Fall 2021 reports that risky times continue for banks as the COVID-19 pandemic persists and the outlook remains uncertain.

The Office of the Comptroller’s (OCC) Semiannual Risk Perspective addresses key issues facing banks in the US, focusing on those that pose threats to the safety and soundness of banks and their compliance with applicable laws and regulations.

Published in November 2021 by the OCC’s National Risk Committee, the report identifies ongoing risk exposures in the areas of credit risk, strategic risk, operational risk and compliance risk associated with the continuing impacts of COVID-19. Credit risk According to the OCC, credit risk among US banks remains moderate with loan portfolios remaining resilient and the fact that “widespread credit deterioration has not materialized from the crisis due to appropriate risk management by banks, improvements in economic activity, and the remaining effects of pandemic-related government actions and relief programs.” On the flip side, the duration of the pandemic, its impact on demand for credit, and non-bank competition have the potential to place pressure on some banks’ credit discipline as economic recovery continues and opportunities for loan growth return. Commercial real estate remains an area of particular concern for the OCC. “Changing consumer and business preferences related to shopping, travel, and returning to the 18

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office may lead to medium- and longterm income and valuation challenges in certain commercial real estate sectors,” states the report. Stress in the retail sector remains, particularly in retail strip malls, and the hospitality sector continues to face challenges. Leasing activity for office space remains subdued and sublease availability continues to rise in many markets. Despite jobless figures, retail delinquency and losses remained stable and did not significantly increase as expected at the outset of the pandemic. The report attributed this to government stimulus packages, widespread mandated and voluntary forbearance programs (involving mortgage servicers/lenders allowing mortgagees to pause or reduce their mortgage payments for a limited time while they build back their finances), more resilient underwriting, and strong residential real estate and automobile values. With improving economic conditions, most banks are re-entering credit markets or easing credit standards that had been tightened earlier in the pandemic, and the OCC recommends that banks avoid complacency in their lending activities. Strategic risk According to the OCC’s Fall 2020 report twelve months beforehand, banks’ net income declined sharply due to higher loan loss provisions and historically low net interest margins (NIM) primarily due to banks holding high levels of low yielding assets.

A year later, the latest report, identifies elevated strategic risk associated with banks’ management of NIM compression and efforts to improve earnings. “Stimulus measures, low-yield investment options, and reduced lending opportunities fuelled deposit inflows that resulted in additional highly liquid assets and lower margins as banks struggled to find yield,” stated the report. Banks may attempt to further improve earnings through measures including increasing credit risk (in both loans and investments), extending loan duration, and cost cutting. Operational risk The move to remote working and an evolving and complex operating environment are elevating financial institutions’ exposure to operational risk. Cybersecurity threats are a key contributor to this heightened operational risk environment. According to the report, the OCC has observed an increase in ransomware attacks in financial services. “These attacks continue to leverage phishing emails targeting employees and compromised credentials to gain access to networks through remote access channels. Once access is gained, the attackers conduct ransomware and other extortion campaigns.” “Expansion of remote financial services via personally owned computers and mobile devices, remote work options, such as virtual private networks, and reliance on third party providers to include cloud-based February/March 2022

environments, increase the importance of effective cyber controls.” With banks relying on third parties to perform or assist in the offering of certain products and services, the OCC recommends that banks conduct risk-based due diligence commensurate with the criticality of the activity provided by the third party. “This is especially true when introducing new products, services, or delivery channels or when entering into partnerships where the third party provides a critical function. The report also identified the risks to banks presented by their development of cryptocurrency-based products and services, recommending that banks conduct due diligence and risk management in relation to these. Compliance risk Compliance risk remains heightened, states the report, as the conclusion of pandemic-related assistance programs February/March 2022

“creates increased compliance responsibilities, high transaction volumes, and new fraud types at a time when banks continue to respond to a changing operating environment.” “Bank post-implementation monitoring and testing are critical to determine that products are being delivered, and processes or systems are working, as intended. In the continuing COVID-19 pandemic environment, a bank may determine that it should update its compliance testing or audit plan to account for waves of new requirements and processes and allow for earlier detection and correction of issues.” Interestingly, the report also suggests customer feedback and the monitoring of complaints as an important component of an effective compliance risk management program. “Customer feedback and complaints can serve as an early warning indicator of a potential problem.”

The OCC The OCC regulates, and supervises national banks and federal savings associations in the US as well as federal branches and agencies of foreign banking organisations in order to ensure they operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations. The OCC’s National Risk Committee (NRC) monitors the condition of the federal banking system and identifies key risks. The NRC also monitors emerging threats to the system’s safety and soundness and ability to provide fair access to financial services and treat customers fairly. The fall 2021 Semiannual Risk Perspective report reflects data as of 30 June 2021, and is available from the OCC website www.occ.treas.gov. NZSM

Risk and Resilience New Zealand Summit Auckland will play host to the Risk & Resilience New Zealand Summit and Awards Gala Dinner over 30-31 March 2022 – two days of risk, resilience, and decision making in uncertain times. Risk is ubiquitous, but how an organisation understands and defines the risks they face and develops systems to manage them, can be the difference between success and failure. Change and uncertainty have also become a constant feature of the modern world, and nothing has heightened our awareness of this more than the ongoing global battle with Covid-19. However, Covid is just one of the major features of the current dynamic risk environment. Others that will be preoccupying many businesses right now include the climate crisis, challenges in the global supply chain, and workforce issues hampering their ability to access the talent they desperately need. RiskNZ, New Zealand’s leading association for risk professionals is working in partnership with Brightstar, New Zealand’s premier conference company to bring you the Risk and Resilience New Zealand Summit. Organisations prosper and are more effective when risk is well managed, and this new event has been developed to support organisations to embed awareness of the most effective mechanisms to manage and mitigate risk. The event was also created to support the further development of the risk profession, analyse the changing role of the risk professional within modern organisations and define the value they deliver to business by allowing them to identify blind spots, recognise weaknesses, and put in place systems to mitigate them. Ultimately, risk management is about supporting decision making, rather than a specific set of processes that needs to be followed. Risk professionals know that it’s not about eliminating risk entirely, but about effectively analysing the impact of uncertainties on your business and supporting it to create frameworks to make judgements around the right risks to take. As well as analysing the current risk environment and exploring in detail some of the major risks identified above. The Summit maps the connection between strategy and risk, recognising that strategy drives risk and that the inability to execute their strategy is the often the biggest risk an organisation faces. Effective risk management allows a strategic approach to planning, which identifies external and internal risks to strategy and focuses governance and monitoring in 20

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these areas. A key goal of modern risk management is to ensure that risk responsibility and accountability is not just compartmentalised in the risk function. Enterprise risk management is about managing an interdependency of operational risks distributed across the organisation and that simply isn’t possible without embedding accountability and ownership of risk at all levels and achieving organisational risk literacy. The end goal being the creation of a risk aware and resilient culture. The challenges and disruptions of recent times have brought to the fore an appreciation of the resilient organisation – able to confront and weather highly disruptive events, adapt to new environments, and keep ahead of risk. But resilience is about more than just good crisis management and effective business continuity planning. It’s about trust, which must be earned and comes from a consistency of approach built on solid systems and processes, this is what allows a culture of resilience to develop. The Risk and Resilience New Zealand Summit provides a unique opportunity for business leaders and risk professionals to come together and explore these strategic risk themes and some of the operational risks they face in a series of masterclasses and workshops. We hope you will be able to join them. February/March 2022

30 - 31 March 2022 | Auckland

RISK & RESILIENCE NEW ZEALAND SUMMIT & AWARDS GALA DINNER

SUMMIT & MASTERCLASS SPEAKERS INCLUDE:

KEY SUMMIT THEMES: Assessing the current risk environment Decision making in uncertain times Developing the risk profession and the role of the risk professional

SIR PETER GLUCKMAN, University Distinguished Professor, Koi Tū; The Centre for Informed Futures and President, International Science Council

GRANT GILLINGHAM, GM - Group Risk Advisory, Fisher & Paykel Healthcare

Responsiveness to Māori - cultural risk in a bi-cultural Aotearoa Creating a risk culture and embedding organisation wide risk literacy The resilient organisation Mapping the connection between strategy and risk

FIONA CARRICK, General Manager Risk, Fonterra

HANS LÆSSØE, Founder, AKTUS

Risk, governance, and Boards

PLATINUM SPONSOR

risknzsummit.co.nz

Call for papers: National Security Journal ‘Security beyond Government’ On behalf of the Massey University-published National Security Journal, the New Zealand Security Sector Network calls for papers for an upcoming ‘National Security beyond Government’ special issue. The New Zealand Security Sector Network (NZSSN) is calling for papers for a ‘National Security beyond Government’ special issue of the National Security Journal (NSJ). Established in 2019 by Massey University’s Centre for Defence and Security Studies, the NSJ is Aotearoa’s leading security-focused scholarly journal. The special issue aims to elicit articles of 2,000 to 5,000 words in length from practitioners and scholars (academics and students) from within New Zealand’s security ecosystem. The Guest Editors are particularly interested in submissions from professionals working in the private security industry. Topic ideas potential authors may wish to consider include (but are not limited to): • Government procurement and supplier management in security and defence • Barriers to public-private partnership in national security • Public discourse and society narratives on security in New Zealand • Perspectives on government public consultation processes in national security • Public-private engagement in relation to Protecting Our Crowded Places from Attack: New Zealand’s Strategy • Private sector involvement in COVID-19 border security • Historical perspectives on New Zealand’s private security industry • Comparative research on private security regulation • Private sector development of the space sector The NSJ is focused broadly on national security. It invites academics and practitioners across the expanded national security working space to contribute their research, knowledge and experience. It is available to subscribers across the government, NGO, business and academic sectors and on request. It is intended that the ‘National Security beyond Government’ special issue will be published during 2022, with a submission deadline in May. Potential contributors should contact Managing Editor Dr John Battersby j.m.battersby@massey.ac.nz to discuss submission ideas. 22

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National Security Journal

New Zealand’s national security environment is hyperdynamic, involving constant changes in geo-political positioning, population movement, trade variations, information security, the impact of climate, food safety, biosecurity, and cyber security. The NSJ was established to provide a platform for the dissemination of high quality academic and professional research on national security topics relating to New Zealand and its regional environment; to foster a closer interaction between academic and professional communities; and to encourage various agencies and community groups to engage with each other in areas of mutual interest. New Zealand Security Sector Network The NZSSN is a community of industry and professional associations and academic research centres situated within or focused on Aotearoa New Zealand’s security and resilience sectors. Members of the community include (among others) the New Zealand Security Association, ASIS International New Zealand Chapter, and Massey University’s Centre for Defence and Security Studies. The NZSSN aims to (i) facilitate communication and collaboration across the sector; (ii) promote the sector within the broader community; and (iii) conduct/coordinate research into issues of relevance to the sector. February/March 2022

Power supply cabinets • Mounts for our 5 most popular models of power supplies; 6 key-hole anchor points for easier mounting • Lift off hinged doors for added convenience

total reed switch

• Louvre ventilation on doors • Roller ball reed switch provides anti-tamper to front and rear of cabinet

solutions from Flair

• 6 x 25mm knockouts, 2 each sides and bottom • Medium cabinet holds 5 x 7 A/h batteries

Choose from Closed Circuit or SPDT. Listed options will suit Standard doors, Steel doors, Roller doors

• Large cabinet holds 14 x 7 A/h batteries • Cam lock for security • Front lip to retain batteries and for additional strength

• Lip return on door for greater rigidity • Durable powder coated white finish in N Z •

ic Prod ron uc •D

e s i gned

and Pr od ted

Designed, tested and produced in New Zealand.

• Heavy gauge 1.2mm steel

for power supplies

Specials available to order.

With 30 models in stock, make Loktronic your go-to supplier. Fully monitored Powerbox brand security PSUs in 12 VDC from 3.5 A to 20 A and 24 VDC units from 5 A to 12 A. We have Meanwell DIN rail PSUs in 12 & 24 VDC from 20 - 100 watts, with optional battery charging. Inline, Plug packs and DC/DC converters round out this great range.

Flair reeds from Loktronic: an unbeatable combination.

Power supplies from Loktronic – a Powerful Deal.

• Surface mount • Press fit • Self adhesive tape or screw mounting • Flying leads or screw terminals • Standard and wide gap • Stubbies • Mini flange • Sub miniatures • Pull aparts • Clamp ons • Overhead doors with offsets

• Removable shelf and removable back plate to facilitate easy bench mounting of equipment

Loktronic

ISO 9001:2015

REGISTERED COMPANY

Certificate No. NZ1043

20238_PSC

Loktronic Limited Unit 7 19 Edwin Street Mt Eden Auckland P O Box 8329 Symonds Street Auckland 1150 New Zealand Ph 64 9 623 3919 Fax 64 9 623 3881 0800 FOR LOK www.loktronic.co.nz

Unit 7 19 Edwin Street Mt Eden Auckland P O Box 8329 Symonds Street Auckland 1150 New Zealand Ph 64 9 623 3919 Fax 64 9 623 3881 0800 FOR LOK www.loktronic.co.nz 20237.FL.2018

Loktronic

Unit 7 19 Edwin Street Mt Eden Auckland P O Box 8329 Symonds Street Auckland 1150 New Zealand Ph 64 9 623 3919 Fax 64 9 623 3881 0800 FOR LOK www.loktronic.co.nz 20757_BP.2018

Loktronic

Power

distribution module

key switches Two functions are available Momentary or maintained contact (specify when ordering) This 6, 8 rated or 10 way Distribution Module Switch at 6APower @ 28 VDC will drop power to akeyed group of doors when signaled Supplied random byRe-key a fire alarm and key has at individual fused power or master any locksmith supply lock. LED lights when fuse fails. Front to or each rear fixing Red and black terminals distribute from PSU orApplications battery to load. Access control, air-conditioning, lifts, lighting etc Comprises • DPDT 12 or 24 VDC Fire Drop Relay New options with this versatile product • 6, 8 or 10 fused terminals with LED supplied loose • 2Key Redswitch Terminals bracket • 2Mounting Black Terminals Escutcheonon DIN Rail • Assembled Mounted on PDL plate with alloy cover • All Terminals Labelled

Loktronic

for gate locks

For the widest range range of applications, see our IP67 rated Loktronic and Loktrenz electromagnetic locks with optional brackets to make fitting a breeze.

ic Prod ron uc •D

in N Z •

Comprises • DPDT 12 or 24 VDC Fire Drop Relay • 6, 8 or 10 fused terminals with LED • 2 Red Terminals • 2 Black Terminals • Assembled on DIN Rail • All Terminals Labelled

ts ,T

e s i gned

Outdoor and Gate Locks from Loktronic - a smart choice.

We have strikes by FSH and eff-eff, Rim locks by CISA, plus specialty roller door locks.

This 6, 8 or 10 way Power Distribution Module will drop power to a group of doors when signaled by a fire alarm and has individual fused power supply to each lock. LED lights when fuse fails. Red and black terminals distribute from PSU or battery to load.

Designed,tested testedand and Designed, producedininNew NewZealand. Zealand. produced

Designed, tested and produced in New Zealand.

and Pr od ted

ISO 9001:2015

REGISTERED COMPANY Certificate No. NZ1043

Unit 7 19 Edwin Street Mt Eden Auckland P O Box 8329 Symonds Street Auckland 1150 New Zealand Ph 64 9 623 3919 Fax 64 9 623 3881 0800 FOR LOK www.loktronic.co.nz 20756_BP.2018

ISO 9001:2015 ISO 9001:2015 REGISTERED COMPANY

REGISTERED COMPANY Certificate No. NZ1043 Certificate No. NZ1043

Unit Edwin StreetMtMt EdenAuckland Auckland Unit 7 71919 Edwin Street Eden PO Box 8329Symonds Symonds StreetAuckland Auckland1150 1150New New Zealand PO Box 8329 Street Zealand 9 623 3919Fax Fax 9 623 38810800 0800 FOR LOK PhPh 6464 9 623 3919 6464 9 623 3881 FOR LOK www.loktronic.co.nz 21636.KS.2018 www.loktronic.co.nz 20239.2018

ISO 9001:2015

REGISTERED COMPANY Certificate No. NZ1043

Unit 7 19 Edwin Street Mt Eden Auckland P O Box 8329 Symonds Street Auckland 1150 New Zealand Ph 64 9 623 3919 Fax 64 9 623 3881 0800 FOR LOK www.loktronic.co.nz 20239.2018

Holography to grow in 2022 amid COVID-19 impact and new threats COVID threats and increased illicit trade and counterfeiting are set to drive hologram growth in 2022, particularly for authentication purposes, says global body. According to the International Hologram Manufacturers Association (IHMA), authentication and track and trace systems that feature holograms will help to underpin international efforts by government and law enforcement agencies to bolster overt and covert protection strategies in the next 12 months.

Dr Paul Dunn is Chair of the International Hologram Manufacturers Association (IHMA).

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Fake COVID cards, documents and vaccines will remain a big security threat in the months ahead, leading government, law enforcement authorities and global supply chains to review their anti-counterfeiting plans and investment in security resources. Growth in security devices appears “strong and potentially lucrative”, says the IHMA, following The Future of Anti-Counterfeiting, Brand Protection and Security Packaging to 2026 and other reports predicting increasing incidences of global counterfeiting alongside heightened awareness of tracing technologies. These indicate that brand protection, track and trace and other anti-counterfeiting technologies in packaging will increase in use as economies wrestle with the impacts of COVID. The packaging industry will continue to benefit in the coming months from the use of anticounterfeiting solutions, particularly as fears over shortages of medicines,

pharmaceuticals and vaccines in many parts of the world drive demand for counterfeit and illicit products. Security devices such as holograms on packaged goods can ensure quality and check the distribution and smuggling of illicit products, while items not displaying them can be seized and destroyed. There is a growing volume of fake medicines on sale in developing countries, according to the World Health Organisation (WHO), while Interpol has reported an increase in fake medical products. Seizures of fake COVID tests and personal protective equipment (PPE) have also been reported by US Customs and Border Protection and the World Customs Organisation. Added to this, the economic damage wrought by COVID including tax hikes, global shortages of raw materials and finished goods, rising prices and falling incomes - is providing fertile ground for illicit trade to flourish. This situation is set to continue in the next 12 months, the IHMA predicts, while growth in authentication devices will stay ‘strong and lucrative’ on the back of forecasts that the market for anti-counterfeit technologies on pharmaceuticals and cosmetics products will grow. The overall global market for anticounterfeit products on security packaging is projected to be worth in excess of US$188 bn by 2025. A poll has revealed that almost 50 percent of hologram manufacturers February/March 2022

and suppliers are seeing an increase in demand from customers, specifiers and end-users for holographic devices and technologies. This indicates that hologram users will continue to be concerned about the impact of counterfeiting on supply chains as the pandemic continues to be felt well into the new year. “Counterfeiting puts governments, companies and the public at risk and must be tackled effectively to minimise the impact on society,” said IHMA chair Dr Paul Dunn. “We look forward to seeing supply chains further bolstered in 2022 with countries enhancing their anticounterfeiting plans, which should include the introduction of harder hitting anti-counterfeiting legislation and strategies.” “It’s clear that in the face of the continued impact of COVID and other threats, we can legitimately say law enforcement, government, brand owners and other influencers will continue to push demand for authentication and brand protection devices such as holograms.” Holography will also hold up well in comparison with other optical variable features in the currency market in 2022, says the IHMA. Despite predictions about the demise of cash, demand for banknotes has actually February/March 2022

increased around the world during the pandemic – especially for high value notes as a store of value, which fuel demand in turn for holograms. One third of all banknotes currently feature a holographic device, and the R&D going into ever more secure and complex holographic features for both paper and polymer banknotes that reassure the public and central banks about cash authenticity will continue. On the other hand, a drop in travel has seen a decline in the demand for passports and travel documents, and hence for holographic devices that protect these. So long as uncertainties remain around COVID, this situation will persist, but is somewhat offset by the global migrant crisis, which will continue to drive the development and deployment of secure personal identification outside of that related specially to COVID. “Innovative features in banknotes are pushing the boundaries of what the technology can achieve, reflecting that there is plenty of mileage in holography,” said Dr Paul Dunn. “We will also see new applications for holographic features on ID documents coming through, where innovations linked to digital applications, packaging and tax stamps, could all see continued growth.”

The exploration of holography technologies for new wearable headup displays and other smart devices to enhance people’s lives along with applications will see continued development in the new year. Holographic optical elements (HOEs) which are used in, for example, vehicle lighting and headup displays, will also continue to gain traction alongside ‘groundbreaking’ holographic applications in medical imaging, solar energy, data storage, healthcare such as legalised cannabis-derived treatments, and cryptocurrencies, says the IHMA. The use of authentication solutions, as advocated by the ISO12931 standard, enables examiners to verify the authenticity of a legitimate product, differentiating it from fake products coming from counterfeiting hot spots in Asia and eastern Europe. Even those that carry a ‘fake’ authentication feature can be distinguished from the genuine item if that item carries a carefully thought-out authentication solution. Holography to grow in 2022 amid COVID-19 impact and new threats COVID threats and increased illicit trade and counterfeiting are set to drive hologram growth in 2022, particularly for authentication purposes, says global body. NZSM

Integrated surveillance monitoring even in off-grid scenarios? Yes, it’s possible! The Dahua Integrated Off-grid Security solution combines 4G network transmission technology, video surveillance, and solar power technology to surveil areas with no access to electricity or network. Thinking of installing a surveillance system but your site is located off the grid? Yeah, that could be troublesome, and it tends to require a level of patience as long as the power grid line itself.

A lot of people may think that just because they do not have the same infrastructure as what they have in the city, deploying a surveillance system in a remote area may not be the smartest idea due to antiquated power sources, lack of device options, steep installation and maintenance costs, etc. Nevertheless, with the advent of continuous innovation and developments in technology, intelligent solutions are gradually emerging to

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ensure that any site, whether on-grid or off-grid, is not left behind. One of these solutions involves the harnessing of solar energy, which is one of the predicted technology trends for 2022. Challenges Deploying outdoor surveillance monitoring in an off-grid scenario could be very challenging compared to conventional town scenarios. Installation of traditional outdoor surveillance requires the laying of large cables and setting up of stable networks, which areas off the grid might not be so able to accommodate. An off-grid monitoring scheme often resorts to solar panels and wireless transmission technology to do the trick. However, doing so tends to come with hefty installation and

maintenance costs. Every device must be installed independently, and the whole system lacks basic maintenance features, making it impossible to be operated remotely while generating onsite fault data in time. So here’s where Dahua comes in. With its years of accumulated experience in technology and innovation, Dahua has developed an integrated off-grid security solution that ticks all the boxes for an effective and efficient monitoring of scenarios beyond the grid. What we offer “In some remote and outdoor locations where power and network conditions are limited, deploying a security system is always challenging – cumbersome wiring, long construction

February/March 2022

periods, high maintenance costs, poor system stability, etc,” said Bobby Cheung, Product Director at Dahua Technology. “This lightweight integrated solution solves all these problems. It replaces traditional power system and cable with renewable solar energy, and enables remote data transmission via the camera’s built-in 4G module. Thus, no extra power supply and network cables are needed, which is cost-saving, green and convenient.” The Dahua Integrated Off-grid Security solution combines 4G network transmission technology, video surveillance (including Artificial Intelligence functions), and solar power technology to build an integrated offgrid surveillance system. It is suitable for areas with no access to electricity and network connection. The solution includes a solar module primarily made of monocrystalline silicone with aluminium alloy frame and tempered glass panels. It offers excellent weak-light performance and outstanding solar cell efficiency. In addition, its MPPT Solar Controller boasts high charging efficiency (>99%), RS-485 communication, and 10A maximum charging/discharging capability. Since the entire equipment has IP66 waterproof rating, its lithium battery, controller and other components are well protected against harsh weather or jarring outdoor conditions. It also ensures February/March 2022

a long product life, making every penny of your investment count. The 2MP/4MP camera itself has an ingress protection rating of IP67. It offers a high performance 4G module and AI functionalities that can amp up your monitoring operation just like those in regular application scenarios in the city. There are also pole mount and wall mount options for the mounting brackets, which are waterproof and present a hidden line design. Advantages With the above mentioned integrated components, the benefits of this solution need no further explanation. It doesn’t require extra cables for network and power connection as it is equipped with a robust solar panel and a built-in 4G module that enables stable wireless transmission of data. Its sophisticated and integrated design significantly reduces installation and maintenance costs. Its high ingress protection ratings ensure that all parts of the equipment are well protected and can withstand all-weather operation. When connected to Dahua NVR and DMSS mobile app, users can view realtime videos of the monitored scene and check battery status, allowing for remote system monitoring and maintenance. They can also receive alarm push notifications when the battery level is low or when intrusion

has been detected. Overall, all of these advantages contribute to the entire system’s excellent monitoring performance in off-grid environments. Application scenarios The Dahua Integrated Off-grid Security solution is a lightweight outdoor monitoring solution that is ideal for a wide-range of application scenarios. The solution can be deployed in conventional areas like scenic spots, small construction sites, farms, roads, etc. It is also applicable for small-scale industrial scenarios such as mining areas, oil/transmission lines, water reservoirs, and other critical zones. In addition, this flexible monitoring solution can also be used for outdoor events like sports games, conferences, concerts, etc. If this article has piqued your interest about our Dahua Integrated Off-grid Security, please feel free to contact your nearest Dahua distributor.

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NZSA CEO’s January Report NZSA CEO Gary Morrison talks Omicron, NZSA Board appointments, CoA conflict management instructor training, Special Interest Groups, industrial relations, and the NZSA’s 50th anniversary.

I hope that those of you who were able to have a break over the festive season had a wonderful and restful time with friends and family and for those who worked through, I trust that it was busy and successful for you. I would also like to pass on our thanks and recognition to all security staff who have been required to work through this period providing critical essential services.

Gary Morrison is CEO of the New Zealand Security Association (NZSA). A qualified accountant, Gary originally joined Armourguard Security as a junior accountant and held several roles over two decades prior to appointment as GM for New Zealand and Fiji, after which he established Icon Security Group.

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2022 is certainly going to be a busy year, with known and unknown challenges ahead of us. As the last two years have shown us, we need to be prepared for change and to be flexible and resilient. Whilst we have been able to enjoy some degree of normality over the holiday period there remains the near certainty that it is only a matter of time before we are exposed to community transmission of the highly infectious Omicron Covid variant and concerns as to how ready we are as a country to handle an outbreak.

Evidence from around the world suggests that even countries with a highly vaccinated population have been severely impacted by Omicron not just in maintaining core hospital services but right across basic functions and services including first responders, government services and frontline essential service workers. Employers are finding it impossible to meet increased demand for these critical services given ever increasing numbers of staff on sick leave with Omicron (current figures overseas reflect between 10% and 20% absenteeism daily). Unless we can delay the arrival of Omicron for a sufficient period to allow for a high proportion of the population to receive their booster shot and an effective programme for vaccinating children, it seems highly likely that New Zealand will soon face exactly the same challenges. Similarly, the security industry and in particular protective services such as guarding, patrols and event security, will find it extremely difficult to provide and maintain services effectively. The industry is already struggling with staff resourcing difficulties and this will only be compounded if faced with

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increased demand and high levels of unplanned and short notice sick leave. We appreciate how challenging this will be for business owners and managers and as always, we will strive to assist our members with timely and relevant guidance, information and updates on all Covid-related matters. On a more positive note, we have some exciting updates within this newsletter including confirmation of date and venue for this year’s Security Awards ceremony. I’m also looking forward to the reimplementation of our Regional Visit programme and the chance to meet with our members in their own business. This is a great chance for me to better understand your business, to meet with your team and to understand the key issues being faced by our members around the country. Details of the visit programme will be available shortly. NZSA AGM and Board appointments The NZSA AGM was held on 7 December at the Royal New Zealand Yacht Squadron. With Auckland only coming out of lockdown a day prior, the attendees were able to enjoy the freedom of a face-to-face meeting with participants from outside Auckland joining via zoom. It was pleasing to note that the Association remains in a very strong financial position and remains well placed to continue to assist its members in these challenging times. The NZSA Board continues to be led by our Independent Chairperson Gray Paterson, with Brett Wilson February/March 2022

as Deputy Chairperson and a board comprising David Proud, Greg Kitto, Matt Stevenson, Evan Morgans, Caroline Halton, Lance Riesterer, Shane O’Halloran and Andy Gollings. CoA conflict management instructor training As part of their industry role, Skills Organisation had previously overseen and managed the approval process for Trainers delivering the CoA Mandatory Training and the facilitation of Train the Trainer and Refresher Training programmes. With the transition of the ITOs into the new WDC (Workforce Development Councils) structure there remains some uncertainty as to where functions such as this will ultimately reside, and it has been agreed with Ringa Hora (the Service WDC that will cover protective security services) that the NZSA will pick up and manage the CoA Conflict Management Instructor Training at least on an interim basis. Following a robust RFP process, we have appointed Hard Target (Quinton Swanson) and RISQ NZ (Ngaire Kelaher and Mac Te Haara) to deliver the training and courses for those needing to undertake the two-yearly refresher course, and those seeking to be approved to deliver the training have been scheduled throughout the year. If you have trainers who need to complete the refresher training (one day course) or who you would like to have approved to deliver the CoA training via the train the trainer programme (two day course) can you

please contact Andrea on andrea@ security.org.nz as we are currently scheduling courses for 2022. Please note that those wishing to become approved trainers are required as a minimum to hold NZCiS Level 3 (and preferably Level 4) and to have appropriate experience and qualifications in adult education (such as Unit Standards 4098 and 7108). Training and Professional Development Special Interest Group The TPDSIG continues to meet every two months, albeit that most meetings during 2021 were conducted electronically. The main focus for the group currently is the development of a Literacy and Numeracy resource package designed to assist Managers, Supervisors and Team Leaders in identifying and addressing literacy and numeracy issues in the workplace. The resources will include a package of modules that can be used individually or collectively and once finalised, the materials will be made available to all industry. We will provide more information on this exciting development in our next newsletter. Electronic Security Special Interest Group The ESSIG held its first meeting in November with a follow up meeting shortly before Christmas. The group has elected Mike McKim (Aotea Security) as Chairperson and Sohail Autar (BECA) as Deputy Chairperson and agreed to establish a number of NZSM

smaller working groups that will focus on the following critical issues: • Industry training and professional development • Industry compliance • Career pathways and opportunities • Industry best practice including Standards, Guidelines and Codes of Practice • Industry licensing Updates will be provided on a regular basis. Industrial Relations Late last year the government announced that with effect from 1 December 2021, all new and renegotiated contracts for security officers, cleaners and caterers working at government agency sites will be based on workers being paid a living wage, currently $22.75 per hour. With most government contracts on two or three year terms this will take some time to filter through, unless agencies actively seek to renegotiate their contracts with their providers. It was also noticeable that schools are excluded from specified government agencies at this time. We can also advise that we are working with Etu with regards to preparing a joint submission to MBIE seeking some additional changes to Schedule 1A where Security Officers are recognised as Vulnerable Employees. Our submission will request the inclusion of a minimum threshold for staff providing Patrol and

CIT services where they may service a large number of customers during a single shift and the requirement to consult with regards to every lost job is both ineffective and unrealistic. Whilst this may require a change in regulations, we are hopeful of a successful outcome given both employers and employees are supportive of the change. At this time, it also appears that despite being targeted by government for introduction early this year, the Fair Pay Agreement legislation still faces some hurdles and may well be deferred until next year. NZSA 50th Anniversary The NZSA is celebrating our 50th anniversary this year. The initial minutes of meeting of Subscribing Foundation Members of the proposed NZ Security Industry Association are dated Thursday 21 September 1972 with attendees recorded as: • D Agar, Chubb Alarms Limited • E Bensemann, Vigilant Limited • C Devine, Answer Holding Services Limited • P Henslow, Chubb Lock and Safe Company • W Jarvie, Wormald Brothers NZ Limited • D Major, Armoured Freightways Limited

to act as Executive Secretary and both the NZ Police and Insurance Council of NZ were invited to join as Honorary Members. The New Zealand Security Association Incorporated was formally registered on 4 October 1972. We believe that it is important to remember and celebrate our history and would like to invite our members to send in old photos of vehicles, staff, signage, equipment etc, that we can profile in the coming newsletters and as part of our Annual Awards event in September (refer later in this newsletter). Please forward photos to nzsa@security.org.nz. New Zealand Security industry 25 years in print

December 1997/January 1998

At the meeting it was agreed to invite J Slater, Executive Secretary of the NZ Fire Prevention Association,

NZSecurity

December 2020/January 2021

Magazine

A trusted source of information for industry professionals

December 2011 / January 2012

New Zealand Security Magazine

Need more space? Data storage comes of age

Retail Security Surveillance technology and growth

Beyond smoke and mirriors Hi-tech sparks fire protection changes

Not worth the paper it is written on

Disaster Planning

Women in Security

Rethinking Retail

Recognising excellence in security – we celebrate the winners and finalists of the inaugural Women in Security Awards Aotearoa.

Acceleration of multi-channel retail in the wake of COVID-19 is disproving assumption that eCommerce is good for loss prevention.

New Privacy Act

COVID and cyber

New Act now in force means a good time to consider whether your organisation is compliant with overseas privacy regulations.

The projected economic impacts of COVID and the rush for a vaccine have fuelled a rush of state-sponsored cyber incursions.

www.defsec.net.nz

www.FireAndSecurityNews.co.nz

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NZ Certificate in Electronic Security (NZCiES) qualifications In a December update, the NZSA advised its members of two significant developments for those wishing to undertake training as Security Technicians and their employers. According to the update, the Level 3 (Electrotechnology) and Level 4 (Electronic Security) qualifications are currently covered under the Targeted Training and Apprenticeship Fund (Fees Free), which runs until 31 December 2022.

Under the TTAF, fees are paid directly to tertiary education organisations (TEOs) by the Tertiary Education Commission (TEC), thus enabling TEOs to provide education and training without fees to learners. In addition to being Fees Free, the New Zealand Certificate in Electronic Security (Level 4) has now been approved by the TEC as a New Zealand Apprenticeship. This means that it now qualifies for the Apprenticeship Boost through Work and Income, which provides a subsidy of up to $1,000 per month for the employer. Applications can be made via the Work and Income website. This scheme only runs until 4 August 2022, however, so employers should apply with some urgency if they wish to maximise the subsidy. “Further good news is that it is now possible to enrol non-New Zealand citizens, provided they have a legal right to work in New Zealand for the length of the training programme specified in the training agreement,” stated the NZSA update. “We are aware that the previous restrictions had impacted onto a February/March 2022

number of employees and this should provide some certainty for employers looking to register non-New Zealand citizens for the NZCiES qualification.” According to the Work and Income website, Apprenticeship Boost can be paid for an apprentice who is employed by a business, or self-employed if contracted by a business. The business needs to apply for the apprentice, and it needs to have a training agreement between the business, the apprentice and a TEC approved Transitional ITO or provider. How much of a boost a business can get depends on whether the apprentice is in their first or second year of training. First year apprentices can get $1,000 a month, and second year apprentices can get $500 a month (if

GST registered, the employing business will be paid the amount plus GST). Apprentices must be paid at least the minimum, starting out, or training wage. To be eligible for the Apprenticeship Boost, an apprentice must not have completed more than 24 months of their apprenticeship and not had their enrolment withdrawn or put on hold. According to the NZSA, these funding arrangements are relatively short-term with an entirely new funding system scheduled for introduction in 2023 as part of the Review of Vocational Education (ROVE), however initial indications are that training investment will be further increased. NZSM

Standards Setter: Doug McCormick conferred NZSA Life Membership Security industry and access control luminary Doug McCormick joins an exclusive club as the New Zealand Security Association’s newest life member.

Doug McCormick, New Zealand Security Association Life Member.

On 8th December 2021, the NZSA announced that the motion put forward by the its Board nominating Doug McCormick as a Life Member was unanimously supported and approved by attendees at the Association’s 2021 Annual General meeting. “Doug was appointed to the NZSA Board in 2012, representing his employer Gallagher,” stated the announcement. From an Engineering Technician at the NZ Broadcasting Corporation from 1965 to 1972, Doug went on to work for Gallagher for 27 years, including as an Engineering Manager (in New Zealand and in the UK), Product Manager, and Engineering Compliance Manager. “In 2015 he was elected Chairperson for the NZSA and was instrumental in working with newly appointed CEO, Gary Morrison, in implementing a wide ranging strategic plan focused

on lifting performance across the organisation and addressing governance and operational concerns. Initiatives implemented included improved member communications, introducing additional member benefit programmes, the divestment of the NZSA Training Division and downsizing of the corporate office and staff resources.” “When Doug stood down from the Chairperson role in 2018, the Association had recorded three years of substantial growth in membership and was in a position of financial stability.” During his career, Doug has also been instrumental in the development and implementation of a number of Australia and New Zealand Standards covering electronic security related services. This included as a member of the IEC (International Electrotechnical Commission) Access Control Working Group (TC79, WG11) and New Zealand delegate to the IEC Technical Committee 79

Gallagher’s Hamilton headquarters

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(Electronic Access Control Systems), and as a member of the Australia/New Zealand EL-031 joint committee. Doug has since continued to volunteer his time representing the NZSA on both the Australia New Zealand Standard for Monitoring Centres and the Fire Protection Association Guideline for Integrated Building Services. “As one of a small group of subject matter experts, Doug has always sought to ensure the Standards are reflective of industry best practice whilst balancing the need to be representative of the New Zealand industry needs and requirements,” stated the NZSA. “The work on Standards is a critical but undervalued requirement for a well-functioning security industry. It requires an exceptionally high degree of technical knowledge and incredible patience and resilience to ensure that the standards are correct from both a technical and operational perspective.” February/March 2022

In addition to his standards work, Doug has also been a strong communicator and advocate for the adoption of international standards. He has penned several articles on the subject, including an article titled, “It’s time New Zealand caught up with the world: Why we need standards for electronic security”, in the June-July 2018 issue of NZSM. In that article, Doug wrote, “Did you know that there are currently no recognised standards for access control in New Zealand or Australia? But there is a dated series of standards for intruder alarms. It’s time we caught up with the world and set some relevant standards for our markets.” 18 months later, Australian Standards and New Zealand Standards adopted the IEC 60839 standard for access control as AS/NZS IEC 60839.11.1:2019 and AS/NZS IEC 60839.11.2:2019. Doug had been a key figure in the subcommittee that produced the standard.

“International standards bodies are recognised by the World Trade Organisation (WTO), and are required to ensure that standards documents do not create trade barriers or anticompetitive activities,” Doug wrote in an April 2020 NZSM article. “By adopting an international standard such as IEC 60839, we are aligning our access control standards with many other countries who have also adopted these standards.” Sharing the NZSA lifetime membership accolade on LinkedIn, Evan Morgans, Chief Marketing Officer at Gallagher, wrote: “While I know you don’t seek the recognition please take it as a thanks from the many people you’ve worked alongside for the betterment of our industry and related standards - always driving to make the world a safer place.” Gallagher’s Software Team Leader and Enterprise Testing Practice Manager Sherilyn Tasker wrote, “Well deserved Doug, it has always been a pleasure to work with you. Your contribution to the quality of our products and to the security industry as a whole has been huge.” “Thank you NZSA members for my nomination and support for life membership of the association,” Doug commented in response. “It has been an honour to be part of the professional security industry in New Zealand.” And it was obvious from the comment thread that Doug’s impact on the security industry has been felt not only in New Zealand but in the United Kingdom as well. Jason Boyce, Business Development Manager at Abloy UK, commented that “the UK Security Industry is still benefiting from your brilliant work and input during your time here with us.” According to George Mckechnie, sales Manager at Tormax United Kingdom Limited, Doug “has always been a leader in bringing new ideas and setting high standards within the security industry, he is an example to everyone in the manner in which he conducts himself in front of clients and colleagues. Doug takes the time to listen and manage his clients expectations. Add to this a touch of humility and you have a wonderful human being.” NZSM

AML/CFT risk ratings confirmed for sectors under FMA supervision A report by the Financial Markets Authority (FMA) identifies derivatives issuers (DIs) and cryptocurrency service providers as high risk for meeting anti-money laundering and counter-terrorism financing obligations. In December, the FMA published its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Sector Risk Assessment 2021, which updates the regulator’s 2017 version. The report outlines those factors that can increase a sector’s risk to ML/TF. According to the FMA, it is an important document for reporting entities that report to the FMA under the AML/CFT regime because they must carry out an individual risk assessment of their business. The report aims to improve firms’ understanding of ML/TF risks in their sectors, as well as identify trends and emerging issues. The risk ratings of the 10 sectors the FMA supervises have not changed since 2017 as there has been little change in circumstances for reporting entities. However, virtual asset service

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providers (VASPs) - which facilitate cryptocurrency, token, or cryptoasset transactions – have been added and rated as high risk. The primary supervisor of VASPs is the Department of Internal Affairs (DIA); the FMA supervises a very small number of these. “The sectors we supervise are generally expected to be the target of more sophisticated money launderers, as these criminals are familiar with capital markets and financial products,” said James Greig, FMA Director of Supervision. “This means it’s essential that entities understand their key risks and take the necessary steps to detect and prevent money laundering and terrorist financing.” “Derivatives issuers are naturally high risk because their products have high liquidity, accounts can be opened easily, and they can have many

non-resident customers in higherrisk jurisdictions. And since our last assessment the risks of virtual assets, particularly cryptocurrencies, have become more prominent. Virtual assets allow for greater levels of anonymity and have global reach, making crossborder payments easy.” The SRA found providers of client money or property service (previously known as brokers and custodians) were medium-high risk and noted there had been a rapid increase in the use of online investment platforms in this sector. “The rapid growth of a large customer base using online investment platforms means they may be targeted by money launderers because their compliance resources may not have kept pace,” said Mr Greig. “These platforms are highly liquid, allowing for high volumes of trading to take place without suspicion, and customers can create online accounts quickly without face-to-face verification, which favours anonymity. Although these platforms often have sophisticated systems to monitor accounts, they must collect sufficient information regarding the nature and purpose of the investment.” Mr Greig said the FMA expected all FMA-reporting entities to review the new SRA and update their own risk assessments accordingly, incorporating any new risks and findings. February/March 2022

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Ransomware continues to rise as nations struggle to address payouts Ransomware is thriving, writes senior editor of ASIS International’s Security Management magazine Megan Gates, and addressing it will require a multinational and multipronged approach. The nabbing of the Lindbergh baby Charles in 1932 made kidnapping across U.S. state lines a federal offense punishable by death. But curiously, it did not prohibit victims from paying ransoms to extortionists.

Megan Gates is Senior Editor at ASIS International’s Security Management magazine. She joined the Security Management team in 2013 after graduating from Missouri State University with a Bachelor of Science in Journalism.

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This is becoming increasingly problematic as ransomware—an attack method where threat actors infiltrate a victim’s network, encrypt his or her data, and hold it hostage until a ransom amount is paid—is thriving. Between January 2021 and June 2021, the total value of suspicious activity reported in ransomware-related Suspicious Activity Reports (SARs) reached $590 million—up from $416 million for all of 2020, according to the U.S. Treasury Department.

Bitcoin is the most common ransomware-related payment method for reported transactions, which reach a mean monthly average amount of $66.4 million, the department said in the report Financial Trend Analysis: Ransomware Trends in Bank Secrecy Act Data Between January 2021 and June 2021, published in October 2021. “The transition to remote and online work in response to COVID-19 has also exacerbated risks and vulnerabilities of businesses to cyberattacks, such as ransomware,” the department found. “Attacks on small municipalities and healthcare organisations have also increased, typically due to perceived weaker security controls and higher propensity of these victims to pay the ransom because of the criticality of their services, particularly during a global health pandemic.”

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The department also highlighted a growing concern that some ransomware threat actors are engaging in “double extortion,” where they exfiltrate data, encrypt it, and then threaten to publish it if the ransom is not paid. For instance, in May 2021, ransomware actors leaked internal information— including intelligence reports and officer disciplinary files—when the Washington, D.C., police department refused to pay the ransom to prevent their dissemination. Threat actors are also becoming increasingly savvy to ensure that when a victim pays a ransom, the criminals can obtain the funds by using multiple wallet addresses and avoiding reusing wallet addresses to prevent the funds from being seized by authorities. “Threat actors identified from SARs primarily use foreign centralised exchanges for ransomware-related deposits, including exchanges incorporated in high-risk jurisdictions that may have opaque ownership structures or that may have inadequate [anti-money laundering/counterfeit] compliance standards,” according to the Treasury.” This observation is also corroborated by commercial blockchain analytic companies that note the use of exchanges incorporated in jurisdictions that may not enforce know your customer requirements or require the reporting of suspicious transactions.” February/March 2022

And the issue is not limited to the United States. In her remarks reflecting on her one-year anniversary as the UK National Cyber Security Centre CEO, Lindy Cameron said ransomware poses the most immediate danger to the UK government, businesses, and organisations. “We expect ransomware will continue to be an attractive route for criminals as long as organisations remain vulnerable and continue to pay,” Cameron said. “We have been clear that paying ransoms emboldens these criminal groups—and it also does not guarantee your data will be returned intact, or indeed returned at all.” Transnational criminals are most often the perpetrators of ransomware crimes. Along with the ability for criminals to collect payments and continue to spread ransomware, another main challenge of addressing ransomware, Cameron explained, is that criminals often operate from outside the victim’s nation. International cooperation and extradition agreements are required to prosecute threat actors. This has become increasingly challenging as various ransomware gangs are traced back to Russia, which has largely refused to cooperate with outside forces to extradite these individuals. U.S. President Joe Biden met with Russian President Vladimir Putin in July 2021 and discussed the rise

in cyberattacks from actors living in Russia, and Putin said Russia would cooperate in reducing ransomware attacks. In a press conference after the meeting, Biden said he “made it clear to [Putin] that the United States expects when a ransomware operation is coming from his soil, even though it’s not sponsored by the state, we expect them to act if we give them enough information to act on who that is.” Ransomware activity, however, has not decreased, and Russia was not invited to a Ransomware Summit hosted by the White House in October 2021. Instead, officials from more than 30 other nations gathered to discuss the threat ransomware poses and what can be done to counter it. Representatives from the Czech Republic, Ireland, Israel, and South Korea all spoke about the increase in ransomware attacks they have seen during the past year, targeting healthcare organisations and other critical sectors. “No one country, no one group can solve this problem,” said U.S. National Security Advisor Jake Sullivan. “Transnational criminals are most often the perpetrators of ransomware crimes, and they often leverage global infrastructure and money laundering networks across multiple countries, multiple jurisdictions to carry out their attacks.” NZSM

In response, the gathered representatives pledged to work together to take a multipronged approach to addressing ransomware. “Efforts will include improving network resilience to prevent incidents when possible and respond effectively when incidents do occur; addressing the abuse of financial mechanisms to launder ransom payments or conduct other activities that make ransomware profitable; and disrupting the ransomware ecosystem via law enforcement collaboration to investigate and prosecute ransomware actors, addressing safe havens for ransomware criminals, and continued diplomatic engagement,” the representatives said in a joint statement. Europol and the United States had made some progress towards those goals, as of press time. In November, the U.S. Department of Justice announced the arrest of the suspected mastermind behind some high profile REvil ransomware attacks—along with the seizure of $6 million in suspected ransom payments. The U.S. Treasury Department also announced sanctions against Chatex, a cryptocurrency exchange, for its alleged role in facilitating ransomware payments. At the same time, Europol announced the arrest of five individuals suspected to be involved in the REvil

ransomware gang. Another suspect, a Russian national, remained at large. Officials are also continuing to weigh whether ransom payments should be made illegal. So far, most nations have taken the approach of discouraging individuals from paying ransoms because they create financial incentive for criminals to continue conducting ransomware attacks against lucrative targets with better forms of ransomware. For instance, new research from cyber firm Ermetic found that Amazon Web Services (AWS) S3 buckets could be targeted to spread ransomware in organisations’ environments. “AWS S3 buckets are regarded as highly reliable, so they have come to be used with great confidence,” Ermetic wrote. “What most cloud security stakeholders don’t realize is that S3 buckets face a great security risk, from an unexpected source: identities. A compromised identity with a toxic combination of entitlements can easily perform ransomware on an organisation’s data.” Researchers with IBM’s X-Force team are also tracking the possibility of ransomware being used to target cloud environments, furthering its reach, according to its 2021 IBM X-Force Cloud Security Landscape Report. “X-Force analysed data from our

IR teams to find how threat actors are using cloud environments once they’re inside,” the report said. “Based on our analysis of incidents, cryptominers and ransomware were used extensively, accounting for over half of system compromises.” And once compromised, many organisations and individuals will choose to pay the ransom to get their systems back online to restore essential services, just like Colonial Pipeline did when CEO Joe Blount decided to pay $4.5 million in cryptocurrency to ransomware attackers that targeted his company in exchange for a decryption tool in 2021. “You don’t want to pay the ransom. You don’t want to encourage [hackers], you don’t want to pay these contemptable criminals,” he said in an interview with NPR. “But our job and our duty is to the American public,” Blount added. “So, when you know that you have 100 million gallons of gasoline and diesel fuels and jet fuels that are going to go across the southeastern and eastern seaboard of the United States, it’s a very critical decision to make. And if owning that decryption tool gets you there quicker, then it’s the decision that had to be made. And I did make that decision that day. It was the right decision to make for the country.”

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Safer Internet Day: Reducing online harm 8th February is Safer Internet Day, an international event celebrated by more than 150 countries and aimed at encouraging and promoting a better online experience for everyone. Netsafe is the official organising committee of Safer Internet Day in New Zealand, and started coordinating the event in 2014. In 2021 a record number of supporters joining together to promote Safer Internet Day and help people have a more positive time online.

Founded in 1998, Netsafe is an independent, non-profit online safety organisation providing free and confidential online advice and support to people in New Zealand seven days a week. They answer about 450 requests weekly for help related to online safety topics, including bullying, grooming, illegal content and scams. When a member of the public makes a report, a member of the Netsafe team determines if the report relates to the Harmful Digital Communications Act (HDCA) or another online safety area. If Netsafe believes that the report may relate to the HDCA, a member of their team contacts the complainant to understand more about what has happened, advise on what resolution options may be available and outline how they can help resolve the harm. Harmful Digital Communications Act The HDCA was passed in 2015 to help people dealing with serious or repeated harmful digital communications. It covers any harmful digital communications (such as text, emails or social media content) that includes racist, sexist and religiously intolerant comments – and harmful comments about disabilities or sexual orientation. The Act includes 10 communication principles that provide guidance on how to communicate online. Specifically, a digital communication should not: 1. disclose sensitive personal facts about an individual 2. be threatening, intimidating, or menacing 3. be grossly offensive to a reasonable person in the position of the affected individual 4. be indecent or obscene 5. be used to harass an individual 6. make a false allegation 7. contain a matter that is published in breach of confidence 8. incite or encourage anyone to send a message to an individual for the purpose of causing harm to the individual February/March 2022

9. incite or encourage an individual to commit suicide 10. denigrate an individual by reason of colour, race, ethnic or national origins, religion, gender, sexual orientation or disability Netsafe’s role under the HDCA Netsafe is responsible for helping resolve reports related to alleged breaches of the HDCA’s 10 communication principles. Some of the things they can do include: • liaise with website hosts, ISPs and other content hosts (in NZ and overseas) and request them to takedown or moderate posts that are clearly offensive • resolve complaints via advice, negotiation, mediation and persuasion (as appropriate) • inform people about their options if they wish to apply to the District Court For those cases Netsafe is unable to resolve, the complainant may apply to the District Court for a takedown order against the author or host of the allegedly harmful content (having tried to resolve the matter with Netsafe first). Netsafe provides a Netsafe Summary that the complainant can take to the District Court to demonstrate that they have been through the reporting process. To find out more about Netsafe and Safer Internet Day, visit; www.netsafe.org.nz. NZSM

The Psychology of Security It may be a cliché to say that what the security industry sells is peace of mind, but that’s only because it is true. Rather than services or products, customers and clients pay for the idea of security; in very many cases a physical response may never become necessary. So for security professionals, it is essential we understand the underlying psychology of what makes people feel secure. In his 2000 essay ‘The Psychology of Security’, Bruce Schneier writes, “Security is both a feeling and a reality. And they’re not the same.” The reality of security is a mathematical probability, based on various risk factors combined with their various countermeasures. The feeling of security is based not on mathematical calculations but rather on psychological reactions to both risks and countermeasures.

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It is relatively simple to calculate how secure any given home is from burglary using such factors as its neighbourhood crime rate, presence of security systems, the door- and window-locking habits of the occupants, etc. The likelihood of being murdered in the street by a stranger or in one’s home by a family member can also be calculated. So can the probability of identity theft, based on behavioural patterns. These calculations are performed by insurance companies all of the time, and the actuarial data used to set premiums. But oftentimes,

the feeling of security bears little or no relationship to these statistical probabilities. Feeling Secure vs Being Secure Many of us can probably remember being afraid of the dark as children, even though we were in a safe, secure family home. This is because fear is not always rational, or commensurate with the actual risk of harm, and the perception of risk varies from individual to individual. One person may be deeply concerned about terrorism, and feel comforted by heightened airport security measures, while another may see them purely as an inconvenience. One person might feel they are at high risk of burglary, medium risk of murder, and low risk of identity theft. Meanwhile, their neighbour, in the exact same situation, might feel at a high risk of identity theft, medium risk of burglary, and low risk of murder. To put it more generally, a person can be secure even if they don’t feel secure. And they might feel secure even though they are not. So, even though the feeling and reality of security are related, they are not the same thing. Says Schneier, “We’d probably be better off if we had two different words for them.” But it will be more useful to look at the psychological factors underlying the feeling of security, and see how they correlate to, and are affected by, statistical probabilities. Fortunately, there have been numerous studies that, while not specifically addressing the concept of security, look deeply into the nature of risk, and our response to it. February/March 2022

Understanding the Feeling of Security Over the millennia, human brains have developed complex mechanisms to deal with threats. Understanding how those mechanisms work, and how they fail, is critical to understanding the feeling of security, both intellectually and emotionally. There are four fields of research which can shine a light on these questions. The first two – behavioural economics and the psychology of decision-making – are closely related. The third is the psychology of risk, and the fourth is neuroscience itself, which studies the processes by which we actually think. These fields have a lot to teach security practitioners, going a long way to explain where the divergence between the feeling and reality of security comes from, and how that manifests in behaviour. That way, we can create security systems by which a customer’s feelings about their own security is enhanced, rather than ignored. To Understand Security, Understand Risk As we have seen, the study or security is directly related to the psychology of risk, both actual and potential. So it is useful to outline a few general concepts that make up this psychology. People exaggerate extreme but rare risks while downplaying common ones. They have trouble estimating risks in unfamiliar situations. They tend to overestimate risks that are under public discussion. People underestimate the risks they take voluntarily, while overestimating risks in situations outside of their control. Finally, personified risks are perceived to be greater than anonymous ones. Yet we can reduce the psychology of risk even further, if we wish, to encompass just two basic principles. One, most people are less afraid of a risk they feel they have some control over, like driving, and more afraid of a risk they don’t control, like flying, even though one is demonstrably safer than the other. And two, most people February/March 2022

will forego potential gains rather than risk losing what they already have. This second principle is of profound importance for practitioners. In the main, security systems are designed to protect those things that customers and clients already possess: their family, their wealth, their possessions and their own physical and mental well-being. With regards to wealth, the principle is illustrated perfectly by something called Prospect Theory, as demonstrated in the following experiment. In it, subjects were divided into two groups. One group was given the choice of these two alternatives: n Alternative A: A sure gain of $500. n Alternative B: A 50% chance of gaining $1,000. The other group was given the choice of: n Alternative C: A sure loss of $500. n Alternative D: A 50% chance of losing $1,000. In traditional economics, what is called “utility theory” predicts that people will make a straightforward calculation between relative gains and losses, and then choose accordingly.

In the experiment, both groups could choose between commensurate gains or losses of+$500 and –$500, i.e. both choices had the same utility. Psychologically, some people are risk takers while others will prefer a sure thing. Still, the theory predicts that people will choose alternatives A and C with the same probability and alternatives B and D with the same probability. The fact that one is gains and the other losses does not reflect the mathematics. Therefore, it should not affect the results. And yet it does. When faced with a gain, 84% of subjects chose Alternative A (the sure gain) of $500 over Alternative B (the risky gain). But when faced with a loss, 70% chose Alternative D (the risky loss) over Alternative C (the sure loss). To explain the difference, the researchers developed what they called “prospect theory.” Unlike utility theory, prospect theory recognises that human beings respond differently to the prospects of gains or losses. For most people, a small sure gain is better than the prospect of risky larger gain, hence the old saying, “A bird in the hand is worth two in the bush.” But when it comes to losses, the reverse

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holds true: most people will risk the prospect of a greater loss when faced with a guaranteed smaller one. The Trade-Off Similar experiments have been conducted where the potential outcomes were commensurate, but the language used to define them differed; people made their choices based solely whether the outcome is presented as a gain or a loss. The commonality is that all of these choices represent a trade-off, and the trade-off is a fundamental notion when it comes to understanding the psychology of security. There is no such thing as absolute security; any increase in security necessarily requires some sort of tradeoff in cost, convenience or freedom. Not having one’s house broken into is worth the trade-off of paying for a security system and ensuring all the doors and windows are locked when you go out.

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People make such security tradeoffs, both large and small, every day—deciding whether to lock the when they are just popping into the dairy, or purchasing something from an untrustworthy website because it’s cheap. Often we make these trade-offs intuitively, without thinking, because our brains have evolved over millions of years to quickly assess potential threats and respond accordingly. Assessing and reacting to risk is one of the most important things a living creature has to deal with. The part of the brain that performs this function is called the amygdala, which processes sensory input into base-level emotions such as fear, anger and avoidance, and then compels the body to act on them through the use of adrenaline and other hormones. The fight-or-flight and other physiological responses these hormones produce were invaluable in ensuring the survival of early humans. But as the brain’s higher functions

evolved, the ability to learn and to reason overlaid them with more complicated critical faculties. And though risk assessment still happens automatically and unconsciously all of the time, it is more often acted upon by the conscious mind deciding what trade-offs it is prepared to make. We could say that the security trade-off is governed by the following factors: a) the severity of the risk; b) the probability of the risk; c) the magnitude of the costs; d) how effective the countermeasure is at mitigating the risk, and; e) how well disparate risks and costs can be compared. As security professionals, it is our job to assess these criteria for our customers and clients, and use this assessment to create products and services that balance the necessary trade-offs. To do that, we must ensure that perception does not diverge too far from reality in any

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of these five areas—this way the perceived trade-off will match the actual trade-off. For example, if we think the risk is greater than it is, we may spend too much on mitigating that risk. Overestimating the cost of a countermeasure may mean we hesitate to employ it where we should, and so on. And if we incorrectly evaluate the trade-off, we cannot accurately balance the costs and benefits. Balance Is the Key One of the things we must contend with when making such assessments is understanding how the perception of the risk often does not match the reality of the risk, both in our clients and ourselves. We all know that flying is safer than driving by orders of magnitude, and yet flying makes us nervous, where driving usually doesn’t. This is because perceptions are often governed by psychological processes which are not wholly February/March 2022

rational. Most people are less afraid of a risk they choose to take than of a risk imposed on them. For most people, the fear a risk entails reduces if that risk also offers benefits they desire. People are more afraid of being murdered by a stranger than by a family member, even though the latter is far more common. And noone is concerned about risks that they do not know exist, even though such risks may be very real. Very rarely do we evaluate security trade-offs purely mathematically, analysing the probabilities of different events. Rather we use a combination of experience, intuition and rules of thumb, along with shortcuts, stereotypes and biases. With these, we are able to evaluate the probability of future events, consider the necessary costs, and decide which trade-offs we are prepared to make. We often think of security in terms of “effectiveness,” whether a particular security measure is effective

in achieving a given end. Bullet-proof vests are effective in stopping bullets, but for most of us, wearing one constantly is not a good trade-off. What our customers want is that we provide them with the best security trade-offs—ones that offer genuine security for a reasonable cost—such that their feelings of security match the reality of security. We have all heard the term “security theatre” used to describe palliative, often even illusory methods that only make people feel more secure. But in a certain way, all security is theatre, in that it both represents and reacts to a reality which is constantly being written. Those who seek to be protected by it must believe that what they see reflects the real world they live in. Those who we seek to prevent from doing harm must also be convinced that that security systems represent a real impediment. Either way, how people feel about security is of the utmost importance if it is to be effective. NZSM

Mandatory booster vaccinations for key workforces progressing COVID-19 Response Minister Chris Hipkins says that mandatory vaccination booster uptake is progressing well, urges further uptake in preparation for Omicron.

According to Minister Chris Hipkins, more than 5,785 (82 percent) border workers eligible for a booster vaccination at six months have received it so far.

“That’s a really strong uptake considering we announced the requirement the week before Christmas, but we need to continue this momentum,” said the minister. On 21 December 2021, Cabinet announced a suite of precautionary measures to keep Omicron out of the community for as long as possible, including making it a requirement for eligible border and health workers to get a booster vaccination. “We know that the most likely place for Omicron to enter the community is at the border, so we want all border and eligible health and disability workers to have the extra protection the booster vaccine provides to protect them and their families. The border continues to be our first line of defence,” he said. “The Ministry of Health is continuing to work with the sectors that have mandatory workers to help them identify and manage the boosters for their staff. It’s encouraging all employers, covered by the Vaccinations Order or not, to support their employees to get their booster vaccinations as soon as they are able to. “After consultation with the workforces most likely to come into 44

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contact with Omicron, workforces covered by the Vaccination Order including border, MIQ and health and disability workers will be required to have their booster by 15 February 2022, or not later than six months after their second dose for those who were only recently vaccinated. “All other workforces covered by the Vaccination Order including Education, Corrections, Police, Defence, and Fire and Emergency workforces will be required to have their booster vaccination by 1 March 2022. “Anyone aged 18 or older who has had two doses of COVID-19 vaccine at least four months ago is able to get their free booster vaccine. Booster doses are available at all vaccination centres including walk-ins and drivethroughs,” Chris Hipkins said. “The single most important thing New Zealanders can do to prepare for Omicron is to get a booster dose as soon as they are eligible. I want to

thank all New Zealanders who have already arranged and received their boosters.” Affected workers who are not eligible for a booster vaccination by the set dates should receive a booster vaccination no later than 6 months (183 days) after the completion of their primary course. However, they are eligible for a vaccine booster shot from four months after the completion of their primary vaccine course and the Ministry recommends they take the earlier dose, rather than wait the full six months. People are not eligible for a booster vaccination if they are under 18 years of age. People covered by the Vaccinations Order who are under 18 years, can continue to work and they should not get their booster until they reach 18 years old. The COVID-19 Public Health Response (Vaccinations) Amendment Order 2022 can be found here: https:// www.legislation.govt.nz/regulation/ public/2022/0004/latest/. February/March 2022

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Romance scams cost victims almost $350 million in 2021 According to analysis by secure VPN service Atlas VPN, heartbroken victims lost upwards of $343 million in the first three quarters of 2021 – a big jump from 2020’s annual figures.

Online impersonators have found the pandemic to be a treat - they have a legitimate excuse as to why they cannot meet up in person, at least for now. This allowed fraudsters to carry out romance scams on a larger scale than ever before.

As of yet, there is no data for Q4 2021. But based on the information already collated, it is safe to assume that romance scams caused somewhere around $500 million in damages throughout the entire year. The figures for the research were extracted from the official Federal Trade Commission’s (FTC) website. The FTC has a website where romance scam victims can submit their complaints and receive further help. In 2020, impersonators swindled $268 million from victims of all age groups. In Q1/Q3 2021, monetary damages exceeded $342 million, representing a 27.7 percent growth. Perhaps the most surprising finding is that elders aged 60-69 lost significantly more money than all other groups in 2020 and 2021 ($84 million in 2021). This was the case in 2019, as well. However, younger Americans are not immune to romantic impersonators, far from it. Individuals ages 20-59 lost $130 million in 2020 and $187 million in Q1/Q3 2021, a growth of 44 percent even without the data on losses in Q4. Interestingly, although the youngest age group in the research – 20-29 year 46

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olds – were one of the least affected, with $18 million in losses in Q1/ Q3 2021, this figure nevertheless represented a big leap from losses of $10 million in 2020. 2021 one of the loneliest years For those who have been monitoring their emotional health, it might be obvious why there is a rise in romantic scams. Newly disclosed statistics from a recent government telephone survey of 11,000 Medicare members, reveal that 40% of respondents felt less socially connected to family and friends than they did in November 2020. Moreover, 28 percent of respondents said they were more stressed or anxious, and 22 percent said they felt lonely or depressed.

According to the Atlas VPN researchers, “having a single core principle of not sending money to anyone you have not met in person will keep most of the troubles away. If your romantic interest shows a negative reaction towards this principle - that’s a huge red flag.” “Another dead giveaway is when someone asks for money via gift cards, money transfers, or even worse - cryptocurrency. All of these are virtually untraceable, which makes them popular amongst impersonators.” Building relationships online is a wonderful way to stay connected, they stated. “Our advice is to keep your heart open, but your wallet closed at least until you meet them in person.” February/March 2022

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New Zealand Security - January-February 2022

Articles inside

Romance scams cost victims almost $350 million in 2021

Mandatory booster vaccinations for key workforces progressing

The Psychology of Security

Safer Internet Day: Reducing online harm

AML/CFT risk ratings confirmed for sectors under FMA supervision

Standards Setter: Doug McCormick conferred NZSA Life Membership

Ransomware continues to rise as nations struggle to address payouts

NZ Certificate in Electronic Security (NZCiES) qualifications

NZSA CEO’s January Report

A Brief glimpse at COVID through a National Security Lens

Integrated Surveillance Monitoring Even In Off-grid Scenarios? Yes, It’s Possible

From The Editor

Shoot ‘em up – with video

Risk and Resilience New Zealand Summit

US bank regulator reports key risks and effects of COVID-19

Holography to grow in 2022 amid COVID-19 impact and new threats