Concern about Year 2000 computer glitches has led many US depositors to worry about the safety of their money in financial institutions.
While the US banking industry remains confident that it will not experience Y2K problems, it still anticipates a run on cash approaching the millennium. With all this extra cash floating around, the 10-day holiday period - from Christmas to New Year's Eve - poses the greatest risk of robbery at bank branches and customers' homes.
A recent American Bankers' Association telephone seminar brought together representatives from the FBI, police and the banking industry to discuss Y2K physical security exposures.
"We expect an increased risk of robberies to stores, branches and to customers, and we see an increased risk of disruptive customer behaviour," said William Wipprecht, senior vice-president and director of security for Wells Fargo Bank in San Francisco which has a presence in 21 states.
The reason, he said, is that the media have been "pressing the fear factor" and so the public is demanding extra cash in case of computer systems' failures.
The US Federal Reserve is already putting an extra $50 billion (€47.02 billion) into circulation at year-end to accommodate possible cash hoarding. This means there will be $529 billion in circulation, two-thirds of which is held overseas.
"Overall, we need to be prepared because there will be an extra cash demand," said Mr Wipprecht. Even if each customer only asks for $500 more, that can add up.
"We don't want anything to happen to our customers," said Mr Wipprecht. "Although our liability is minimal to none once we hand them over their money."
The upshot, he said, is for bankers to have cash management plans and robbery training. Cash control could include increasing the number of armoured car deliveries so the amount of cash held in each branch is reduced and splitting up the cash into multiple deposit boxes in bank vault to reduce loss exposure.
Mr Wipprecht said banks should adhere to cash limits in each branch. One suggestion was to have one branch act as the hub with extra cash so that if a branch or store runs short of cash, someone can go there to replenish supplies.
Other suggestions were to train branch staff to prepare for a robbery and to increase the number of guards on duty.
Customer management is also desirable, said Mr Wipprecht. "You should designate a teller at each branch to speak to someone who is fearful. Customers need to rethink the issue [of withdrawing cash] and be advised on the alternatives."
Bankers also fear that customers who withdraw substantial amounts of cash may be robbed after they leave the branch. Mr Wipprecht said if a customer still wants to take his money out of the bank, he may need to consider arranging an armoured car, a police escort with cellular phone or a storage safe deposit box.
Wells Fargo has devised a Y2K daily check-list for its branch managers. When filling out this questionnaire, a manager will record the volume of daily branch activity and the volume of ATM usage and see whether it is normal, less than normal or more than normal. He also needs to ensure that the cameras, doors, night-safe and ATMs are all in working order.
In general, Mr Wipprecht said, time and date-sensitive facilities, like VCRs and ATMs are the "unknowns" along with mechanical equipment like pacemakers and traffic lights, which can have dates embedded on chips. Mr Wipprecht estimated there are 200 billion embedded chips in the US alone.
A recent Gallup Poll found that 42 per cent of adults expected ATMs to fail in the new year and Mr Wipprecht said ATM burglaries could occur by pulling the machines from the wall.
He expects the "party" week could also result in civil disturbances due to the influence of drugs, alcohol and vandalism. "You need to anticipate and prepare for the unexpected," Mr Wipprecht told the estimated 1,250 bankers who listened to the telephone seminar. "An emotionally charged event like Y2K could aggressively escalate into harassment, verbal abuse and physical threats" to branch staff. Coping with such scenarios is included in Wells Fargo's staff training."
Senior Officer James Andrews is a Crime Prevention Co-ordinator with Chesterfield County police department in Virginia who won the Police Officer of the Year award in 1997. He expects an increase in residential and commercial break-ins during the New Year's Eve celebrations. "We believe there will be an increase in crime around Y2K," he said.
He reiterated what Mr Wipprecht said, and added that in many instances, customers need to be warned that their insurance policies may not cover the total amount of cash stolen by thieves. "They can put their money into safes or not withdraw it all at one time," he said.
When training staff, Mr Andrews said, the most important person is the receptionist who can greet people inside the bank as well as keep an eye on events taking place outside.
"I would encourage banks to put on extra receptionists," he said. He also advised banks to work with their police departments beforehand to discuss their security needs and to use a security company or off-duty police officers for protection.
The FBI has highlighted a number of professional burglars who could strike in the US. The most threatening of these is the YACs, which stands for a group of burglars known to the FBI to be of Yugoslav, Albanian or Croatian descent. The YACs have carried out 500 burglaries taking a total of $600 million from grocery stores and bank ATMs along the East coast, in Los Angeles and San Diego.
"The peak robbery season coincides with Y2K," said Mr John Conditt, co-ordinator of the FBI's National Bank Robbery programme. "I suspect some robberies will be staged to take advantage of the extra cash on hand."
