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Security 4 Weekly Report 12/3/2010
HOT TOPICS:
Risks and Opportunities
Weekly Incidents 1* to 7" March (1st week of Period 12)
e Fraud Casework losses for period 12 to date are £0k with 2 fraud cases raised with a loss
of currently £0k occurring in the first week of this period.
e Supply Chain losses for period 12 to date are under target with a loss of £0k against a
target of £56k (£187k target for the full month), with 2 incident and nil losses occurring in
the first week of this period.
e Network losses for period 12 to date are under target with a loss of £6k against a target of
£82k (£187k) with 5 incidents and losses of £6k occurring in the first week of this period.
e Of note, there have been 3 recent ‘Post and Go’ incidents during the period, Ludgate
Circus, Arndale Crown and High Street Sutton Crown with a total loss of £430.
D
I
Weekly Incident
« Weekly Incidents Report in more detail- "°° *St- 7" Merc
Accomplishments
Post Office Branch attack arrests
e Robbery at Newlands SPSO, G41 3JF on 26" February 2009. Male arrested
15minutes after the incident. £5k Loss recovered pee
+ Robbery at Yetholm SPSO, TD5 8RA on 26" September 2008.) _ GRO jhas
month.
e Geneva Rd SPSO, DL1 4HG on 12 January. Suspect arrested by Durham Police
e Andersontown 7 February & Turf Lodge SPSO, BT11 8EF
iappeared on two counts of attempted armed
robbery and remande
CviT attack arrests
appeared at Belfast Magistrates
Hill SPSO, BT17 9TX on 26" February. Activated Ibox with contents was recovered
Casework Results
e Alderley Edge SPSO, SK9 7JT - Defendant given 3 months custodial sentence
suspended for period of 12 months and ordered to undertake 120 hours unpaid
work. The Defendant was also ordered to make a contribution towards prosecution costs
in the sum of £410.10
e Bath Road SPSO, SL1 6JA — Defendant sentenced to 8 months imprisonment
e Glasgow CViT — Defendant found guilty of theft and given 120 hours community
service. Full recovery of £6k loss
e Southway Drive SPSO, PL6 6QR — Defendant sentenced to 16 months imprisonment
e Putley SPSO, HR8 2QN - Defendant given a 12 month Community Order. Unpaid work
200 hours. The defendant was ordered to pay prosecution costs of £300 and
compensation of £1,572.56
ceee
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Otterspool SPSO, L17 OBJ — Defendant given 12 months imprisonment suspended for
1 year with a requirement to complete 200 hours unpaid work. He was also ordered to
pay investigation and prosecution costs of £2,200
Jesmond SPSO, NE2 2SY — Defendant given a 3 month Curfew Order. There was no
order for costs or compensation.
Erpingham SPSO, NR11 7QE — Defendant sentenced to 40 weeks imprisonment
suspended for 18 months with 200 hours of unpaid work.
Pant SPSO. NP11 5BX — Defendant sentenced to 12 months immediate custody. No
order for costs was made.
Blackhorse SPSO, WA8 9LQ — £33,944.76 Fraud Recovery
Funtington SPSO, PO18 9LJ — £28,298.00 Fraud Recovery
Rugeley MSPO, WS15 2BE - £8,975.51 Fraud Recovery
Tean SPSO, ST10 4DY - £8,000.00 Fraud Recovery
Project & Programme update
Network
Suppl
Safer Post Office Initiative Programme — 213 joint visits with GMP have been
completed, with 160 offices receiving the accreditation. Bolton Crime Reduction
Advisors have agreed to commence visits within this area running from April through to
May. As at Period 11, GMP robbery incident numbers reduced year on year by 30%,
whilst losses are reduced by 27.4%. An initial batch of 8 offices have now received
discounted CCTV, as part of the camera solution for failing offices within the ‘Safer Post
Office Initiative’ in Greater Manchester
Case across the counter - 50 offices have volunteered to participate in the Case
across the Counter trial in London, Offices will be assessed for their suitability of the
trial, with the training to commence.
Northern Ireland Project - Analysis is on going to aid the design of a Northern Ireland
Project.
Post Office Security sponsored an award at the Greater Manchester Police Chief
Constables Excellence Awards at the Town Hall in Manchester on 26" February. The
winning Officer received the award from Head of Security, Post Office Ltd.
ly Chain
Operation Ingress — Out of 25 supply chain depots to be visited under the Operation
Ingress project, the last depot assessment was completed on the 11" March 2010; the
overall report will be completed by 31% March.
Principal Unit Manager meetings have been attended and will continue with
collaborative working approach within Cash Centres and CViT Depots.
Collaboration between security and supply chain has implemented a robust Post
Incident Process following incidents at supply chain sites.
To conclude the Tiger Eight Programme a change risk assessment has been completed
for the decommissioning of Tiger Foot buttons in Supply Chain vehicles. Subject to
Senior Area Manager concurrence, a residual risk will be addressed before the matter
is resolved.
A meeting has been arranged with Parcelforce security to understand and assist them
with their vehicle security and crew awareness in mitigation of robbery risk.
The Security Team have been represented at a two day Tiger Kidnap conference
hosted by Bank of England.
WH Smith Security has expressed concerns to POL Security over CIT crews servicing
their kiosks through the hatch rather than inside the kiosk. WH Smith are to reiterate
the correct transfer procedure to their staff and an item will be included in Cashcade to
ensure our crews also follow the correct procedures, which effectively is case behind
the counter.
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Security attended a two day course run by Resolve Security Consultancy as observers;
this was aimed at CIT crew safety and threat assessment. This will now be assessed as
to its relevance to POL.
Security programmes for products
.
Stock Issues - A Project Initiation Document has now been submitted in relation to a
number of issues around stock and remittance processes at Swindon and P&BA. A
programme plan is now being completed and will be circulated to the appropriate
stakeholders for agreement. The Security team are meeting with Business Efficiency
next week at Swindon stock centre to share information and ensure collaboration when
moving the programme forward.
FONCH (Foreign Overnight Cash Holdings)— A briefing document has been compiled
with the assistance of P&BA and Inventory regarding the non-reconciliation between
POLFS and Branch declarations of holdings. Security are working closely to support
P&BA in obtaining verifiable data on the scale of discrepancy, within the next few
weeks. Once this is available Security will provide analysis of root cause issues in
conjunction with P&BA and Inventory and then produce activity planning to resolve
issues.
Crowns - Meeting held with Communications Team in order to continue to drive the
use of communication channels by the Security Team. Various topics were discussed,
including proposals for Security WTLL sessions in May. Loss league tables should
appear in this weeks Crown Focus (now a monthly BAU activity) and a quiz highlighting
the remits of the Security Strands should appear in next weeks Crown Focus.
Scratchcards - Following the Stakeholder meeting of 4th March, it has been agreed
that a new process of monitoring holdings will start. Based on the volumes of
dispensers/inserts at branches, rather than a blanket £2k target, Camelot will provide
accurate information about the volume of dispensers/inserts across the network. It is
envisaged that this will take 3 months to complete (via Camelot Field Sales Teams),
when new monitoring will commence.
Horizon Online - Due to live service issues, the decision has been made not to migrate
any further branches until these issues are fully understood, necessary actions agreed
and success criteria met. In effect, the Pilot 'stabilisation' period has been brought
forward in order to assure the quality before proceeding. This will allow Fujitsu some
time to resolve issues, including a higher than expected number of screen freezes and
resultant recovery transactions.
Cheques - As part of the due diligence work around the Cheques ITT evaluation,
members of the Security Team will be part of the team visiting both bidders to observe
their operations.
POSS - The Security Team are working with P&BA to arrange phonecalls to branches,
who are holding excessive amounts of POSS when compared to their sales. The
intention is to support the withdrawal process by tackling the worst 50 - 100 offices at
an early stage prior to migration. The phonecalls were made in early March and the
results will be analysed by P&BA and the Security Team during week commencing 15th
March. The current date for withdrawal of POSS is 25th May 2010.
Spoilt Postage/Rejected labels - P&BA have made phonecalls to the worst 20 offices
for spoilt postage and rejected labels and the results will be analysed in April using the
data from period 12
POca - Following the intervention calls made in January, data has now been provided
to measure the impact and benefit in reducing duplicate transactions. Although not fully
completed, initial analysis of the results, show a reduction overall across the 29
branches of 15% in duplicate numbers compared to the period prior to the calls.
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e MVL- DVLA have agreed the branches to be contacted as part of the manual
transaction reduction initiative. The data is now ready and the call scripts are being
prepared. It is anticipated the calls, made by Security will be completed mid March and
reviewed in time for a meeting with DVLA on the 25th March.
e Analytical capability -The Security Team are currently scoping out the use of software
to advance the efficiency of fraud detection. A presentation from Comsec on their
Intellinx software and a demonstration of ACL (Audit Command Language) of how
Deloittes are building bespoke exception reporting for P&BA are being evaluated for
application to current fraud issues. The strategic analysts have had MapInfo software
installed to provide Geospatial analysis and enhance modelling of crime threats.
e Risk Assessment processes - Property Projects have been provided with a risk
assessment model for use in allocating TDLC (Time Delay Locking Compartments) to
new safe installations. Since the start of the project, 119 requests were authorised
leaving 281 being rejected, resulting in a saving of £18k. New local Risk Assessments
for high risk branches considering screenless working are being trialed with a view to
full out in the near future.
e Critical Business Processes for Security Management - For this year an additional
two processes have been added for security. These processes have been mapped for
IT Security Management and Physical Security. The self assessments of conformance
to these processes have been sent for sign off.
Business Programmes, Security Issues
e Grapevine Tender - The Security Grapevine tender process is now complete, and
Professional Witnesses Ltd. were awarded the contract. A Grapevine strategy meeting
is scheduled for April to plan the way forward bringing together various representatives
from other directorates.
e PCI DSS Audit - The audit is now complete and the only item that caused a problem,
was that Patch Management and Anti-Virus were suspended during roll-out of HNG-x.
Auditor visits to Branches were delayed to coincide with audit on Patch Management.
Fujitsu supported the audit exceedingly well and demonstrated that they have
implemented a very professional service in line with the requirements of PCI DSS.
e Meeting with Streamline went exceedingly well. They were supportive of our planned
programme for PCI DSS across the group.
e It has been agreed with Fujitsu that getting HNG through the Security gates for AG4 is
the highest priority at present. There are, as previously reported, 3 High acceptance
incidents, which are being managed. Two of these, Fujitsu have assured us that will be
completed before the gateway deadline, these are being monitored at our twice weekly
meetings. The third is around Risk Assessment, this is more problematic but a way
forward has been agreed with Fujitsu, we should see the results of that at the meeting
Monday 15th March. If this is not satisfactory the situation will be taken to a wider
forum for discussion and resolution.
e Progress continues to be made in the areas of collaborative working with Service
Delivery, Royal Mail Group and other suppliers. Some projects upon which we have
been relying to provide us with enhanced security of removable media (USB
drives/CDs) have experienced some delays and issues, although the approach of
working closely with RMG and the suppliers is ensuring POL will not be unduly
exposed.
e Ernst & Young Audit - Further progress has been made and the audit is now drawing to
aclose. There has been some overrun by E&Y as a result of delays in the provision of
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information from Fujitsu and the time taken for E&Y to gain sufficient understanding of
the systems, including Credence. Engagement with Service Delivery and
Finance/P&BA is continuing to iron-out the outstanding issues. The deficiencies in the
change control processes for Credence means some additional financial audit work will
be undertaken, although the extent and implications of this are not yet fully understood.
Security Team