Securing your cannabis business: A Q&A with Dave Myers of Cannaspire

Cannaspire is a sponsor for NY Cannabis Insider’s upcoming conference in Albany on May 20th. Get your tickets here.

When cannabis businesses start applying for licenses, all will have to submit a security plan. Dave Myers, vice president of security at weed industry consulting firm Cannaspire, says business owners should really think through these plans to protect their businesses.

Myers, who joined Cannaspire after a 26-year career with the Pennsylvania State Police Department. In a Q&A with NY Cannabis Insider, he talked about security threats in the cannabis industry, seed-to-sale tracking, and other topics.

This interview has been edited for length and clarity. Cannaspire is a sponsor of NY Cannabis Insider’s conference in Albany on May 20.

In which areas of the cannabis industry (cultivation, retail, distribution) is security the most important? Why? All of the above. Cannabis and cannabis products are highly sought-after commodities making them valuable targets at a high risk for theft. In addition, due to the banking restrictions placed on the industry, most cannabis businesses are forced to handle, store, and transport large amounts of cash. This combination of factors significantly elevates the risk for adverse events resulting in some type of loss. When it comes to security, it’s important to not have a “one size fits all” approach. Security measures designed to suit the specific needs of each business type are important to reduce the risks associated with them.

I’ve heard there has been an uptick of robberies on dispensaries, but I’ve also heard people say this is overblown. What is your take? Nationally, there has been a rise in “smash-and-grab” type incidents at dispensaries. Burglaries that occur after business hours also continue to be a problem. I believe that this trend will continue, especially in areas where such crimes are not fully prosecuted. One other common denominator is a lack of security posture. Dispensaries or other types of cannabis businesses that fall victim to burglaries or robberies typically don’t look secure. A person who is thinking about robbing or burglarizing a business will more than likely pick out a facility that appears vulnerable. Having the proper security features, personnel, and operational measures can do a great deal with thwarting or even preventing these kinds of attacks.

What are the biggest security threats to cannabis businesses? Cannabis, cannabis products, and cash will always continue to be the main targets from unknown persons who may be willing to commit robbery, burglary, and theft. What many business owners do not realize however, is that the biggest threat from theft is from within their own pool of employees. Studies have shown that more than 85% of businesses suffer from employee theft. Another threat to cannabis businesses that is often overlooked are cyber threats. Cannabis businesses are prime targets in the cyber sphere due to the relative newness of the industry. Many business owners will focus more of their resources on other priorities which will leave them vulnerable to a type of cyber-attack.

What are the best ways for cannabis businesses to prevent employee diversion of their products? The best way to prevent employee diversion is to have a comprehensive security plan that addresses product diversion and provides specific measures to prevent it. The plan should contain key physical security features such as video surveillance that provides unobstructed viewing and recording from multiple angles everywhere cannabis is grown, stored, moved, processed, sold, etc. This surveillance, in combination with clear standard operating procedures for cash management, inventory counts and controls, storage requirements, seed-to-sale tracking, and point-of-sale procedures are all necessary to prevent employee diversion. In addition, constant employee training in all procedures is crucial.

Do you think seed-to-sale tracking does much to secure the cannabis supply chain? How burdensome is it for businesses? As the industry evolves, so does seed-to-sale. Seed-to-sale software is proving to be a business tool and not just a tracking tool for security. Cultivators are using it to monitor their harvest and increase yield. Dispensaries can forecast inventory needs or be alerted to compliance violations like overselling. Some software will now auto-generate compliance reports or other types of reports to demonstrate transparency of operations to regulatory boards. I think time will tell whether seed-to-sale is a proven method when it comes to security in the cannabis supply chain. At face value, it appears to be quite effective in inventory management, traceability and tracking, and chain of custody. These are all important factors in cannabis security and diversion prevention, and I think we’ll continue to see its use in the future.