EXPATRIATE RISK MANAGEMENT: KIDNAPPING AND RANSOM RICHARD A POSTHUMA, JD, PHD AND JAIME GARCIA KIDNAPPING AND RANSOM Learning Objectives Analysis: be able to understand and analyze the risk of kidnapping and ransom Avoidance: learn how to avoid the risk of being in situations where kidnapping might occur Prevention: learn how to reduce the likelihood that a kidnapping will happen Minimize Harm: learn how to minimize the harm that is caused if a kidnapping does occur CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS Reality When employees go to work in some foreign countries, they are at greater risk of becoming victims of kidnapping for ransom Definitions Kidnapping means being taken and/or detained against your will by threat or force Ransom is the money and/or things demanded from the family or the employer of the kidnapped employee in order to release the victim from captivity CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS Types of Kidnapping for Ransom Virtual Someone calls and falsely states that a loved one has been kidnapped To insure their safe release you need to something like deposit money in a specific bank account Express (also called “Lightning” or “McKidnapping”) A person is actually kidnapped and held for a short time and a small ransom is paid They might brought to their bank’s ATM machine and told to withdraw the maximum amount, and then held until midnight when they are told to withdraw the maximum again Traditional A person is actually kidnapped and a message is sent or phone calls are made to their loved ones and/or employer asking for a large ransom for their safe release CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS Virtual The victims may be targeted through careful planning or selected at random Express Often the victims are chosen at random Traditional The most complicated form of kidnapping that often involves planning and surveillance of the victims by the kidnappers CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS Actual recent case examples The captain and crew of a tanker ship carrying chemicals and flying a Singapore flag was kidnapped off the coast of Nigeria with kidnappers demanding share of oil money Two French businessmen were kidnapped in Argentina Six expatriate engineers kidnapped in Nigeria In Venezuela a petroleum company manager’s wife was kidnapped and the kidnappers used her cell phone to call him with a ransom demand In Mexico, an employee of a manufacturing company was kidnapped and a ransom of cash and two vehicles was paid for his safe release CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS Kidnapping Statistics 98% of all kidnappings occur within ½ mile of the victim’s home or office 85% of kidnappings happen with the help of people who are close to the victim 90% of kidnapping victims survive 80% of kidnapping victims receive food and water Mexico has one of the highest rates of kidnapping in the world Kidnappers and their accomplices often surveillance of their possible victims for to weeks before the commit the act of kidnapping CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS FREQUENCY BY REGION CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS COUNTRIES RANKED BY RISK OF KIDNAPPING Source: Clayton Consultants, Inc 2010 CMME 2011 KIDNAPPING AND RANSOM: ANALYSIS Source: American Chamber of Commerce in Mexico, 2010 CMME 2011 10 KIDNAPPING AND RANSOM: PREVENTION If you are walking and you suspect that someone is following you… Stop suddenly to see if they also stop Go into a public place or business where there are a lot of people If you are being followed Go to the nearest crowded place (e.g., a business) police station Pre-designated safe house If in your vehicle… sound your horn flash your lights CMME 2011 24 KIDNAPPING AND RANSOM: MINIMIZE THE HARM Minimize the harm that is caused if a kidnapping does occur Keep your family aware of your whereabouts: Sometimes kidnappers will call family members claiming that they have you when it is not true Family and/or trusted persons at the company should know the following: Where are you going? Where are you now? What is the purpose of your meeting? Use security codes or passwords that are well known to your family and trusted associates © CMME 2010 25 KIDNAPPING AND RANSOM: MINIMIZE THE HARM If you are the victim of a kidnapping: Remain calm Cooperate with kidnappers Resistance can be very dangerous The chances of a successful escape or rescue are very low Companies should ask the family members if they want the employer to help, or not Invoking the company could raise the stakes of the ransom demand Sometimes the families don’t want the company involved CMME 2011 26 KIDNAPPING AND RANSOM: MINIMIZE THE HARM Virtual kidnappings… someone who sells you a false story “We have your daughter and you’ll never see them again unless you deposit $$ in XX bank account.” “We know where you live We are going to kill you if you don’t pay.” “I am looking at you right now I’m going to kill you if you don’t make a deposit $$.” CMME 2011 27 KIDNAPPING AND RANSOM: MINIMIZE THE HARM Virtual Kidnapping Many experts agree that you should… Say, “give me your number and I’ll call you right away” and hang up Don’t answer the phone again Locate your family immediately Get a caller ID Install an answering machine for calls that you don’t recognize Don’t give out any personal or family information CMME 2011 28 KIDNAPPING AND RANSOM: MINIMIZE THE HARM Traditional Kidnappings Victims should cooperate with kidnappers, but not volunteer personal information Don’t trust the kidnappers to be ethical negotiators Don’t give in to every demand If you do, they may just ask for more and more Ask for proof that the victim is alive and well Use someone experienced in kidnapping and ransom negotiations CMME 2011 29 KIDNAPPING AND RANSOM: MINIMIZE THE HARM RANSOM NEGOTIATIONS MONEY Initial Demand Reduced Ransom Demands Agreement for Release TIME KIDNAPPING AND RANSOM: MINIMIZE THE HARM RANSOM NEGOTIATIONS VIOLENCE BREAK POINT ULTIMATUM VICTIM RELEASED TIME KIDNAPPING AND RANSOM: RANSOM NEGOTIATIONS CMME 2011 32 KIDNAPPING AND RANSOM: RANSOM NEGOTIATIONS CMME 2011 33 KIDNAPPING AND RANSOM: MINIMIZE THE HARM Kidnapping and Ransom (K & R) Insurance Costs/Premiums If it leaks out that an employer has this coverage It may increase the likelihood that kidnappers will target employees covered by this insurance It may increase kidnapper’s demands The policy may be cancelled Benefits: Loss prevention/how to avoid kidnappings Handle ransom negotiations Reimbursement for ransom payments, medical expenses, etc Frequency 68% of kidnappings in Latin America are not covered by K & R insurance 60% of employers have K & R coverage for some executives (Source: The Steele Foundation, 2006) CMME 2011 34 KIDNAPPING AND RANSOM: MINIMIZE THE HARM Electronic Location Devices Consider the costs and benefits of Global Positioning System location devices Costs: Expensive (typically in the range of term life insurance) Maintenance Rarely used Benefits May enable the location of the phone of a person kidnapped May be placed inside the vehicle of the person kidnapped Can be placed inside cell phones for tracking CMME 2011 35 KIDNAPPING AND RANSOM: MINIMIZE THE HARM CMME 2011 36 KIDNAPPING AND RANSOM: SUMMARY CMME 2011 37 SOURCES, REFERENCES, AND RECOMMENDED FURTHER READING AmCham (2010) The Impact of Security on the Corporate Environment: For a Culture of Prevention 2nd, Ed American Chamber of Commerce Mexico City, Mexico Auerbach, A H 2009 Ransom: The untold story of International Kidnapping Holt Publishing Bolz, F., Dudonis, K J., & Schulz, D P 2005 The counterterrorism handbook: tactics, procedures, and techniques Boca Raton, FL CRC Press Clegg, Brett, & Gray S J 2002 Australian expatriates in Thailand: some insights for expatriate management policies The International Journal of Human Resource Management, 13, 598-623 Clayton Consultants, Inc (2007) Personal Security Handbook 2007 www.claytonconsultants.com Clayton Consultants, Inc (2009, August) Threat Rate Risk Management (2009, August) K & R and Extortion Monitor www.claytonconsultants.com Clayton Consultants, Inc (2010) Kidnap Risk Brief: Annual Report Analyzing Global Kidnapping Trends, Statistics, and Tactics www.claytonconsultants.com Durand, A (2006) Kidnap, ransom, security, and insurance gain importance in today’s business world Caribbean Business, 34, 29., Elango, B., Graff, L A., & Hemmasi, M 2008 Reducing the Risk of Becoming the Victim of Terrorism While on International Business Assignments Simulation and Gaming, 39, 540-557 Harvey, M G 1993 A survey of corporate programs for managing terrorists threats Journal of International Business Studies, 24, 465-478 Norona, C S (2004) Kidnapping: What to when you receive the call A Presentation for ASIS International, Dallas, Texas Overseas Security Advisory Counsel (2008) Surveillance Recognition (2008) U S Department of State http://www.osac.gov Ortega Sánchez José Antonio (2009) 20 Años de Secuestros en México [Twenty Years of Kidnappings in Mexico] Consejo Ciudadano para la Seguridad Pública y la Justicia Penal A.C México D.F Pinkertons (2008) Autoprotection Personal Para Ejecutivos, Preventino de Amenanzas Delictivas Pinkerton Consulting & Investigations (Mexico City; Mexico) www.securitas.com/pinkerton/en Stratfor Global Intelligence (2009) Global Intelligence and Security Report (2009) www.stratfor.com The Steele Foundation (2006) Kidnapping a Big Business on the Rise in Mexico www.globalrapidresponse.com Wright, R P 2009 Kidnap for Ransom: Resolving the Unthinkable Boca Raton, FL, CRC Press CMME 2011 38