Do Check-Cashing Businesses Face a Higher Risk of Robberies?

Check-cashing businesses play a vital role in providing financial services to individuals, especially those without traditional banking access. However, one common concern is the potential for robberies. In this article, we will explore whether these businesses are more prone to robbery than banks and discuss the security measures in place to protect them.

Myths and Reality: Does Having Checks Make Them More Susceptible to Robberies?

It is often believed that because check-cashing businesses deal with checks, they are more likely to be targeted by robbers. However, this is a misconception. Check-cashing businesses primarily handle small amounts of checks, typically amounting to less than $50,000 a day. This is in stark contrast to the substantial amounts of cash that banks store and manage.

Moreover, most check-cashing businesses employ armed staff who are well-prepared to handle potential security threats. Many are equipped with bulletproof glass, secure entry and exit mechanisms, and even safe rooms. These measures significantly reduce the risk of successful robberies.

Are They Really Under Greater Risk?

Contrary to popular belief, check-cashing businesses are often subject to a higher frequency of robberies compared to banks. The reasons for this are multifaceted:

Higher Cash Availability: These businesses often have a higher amount of cash on hand. This is because they cater to individuals who would otherwise use cash for their transactions, making them prime targets for robbery.

Local Focus: Due to their local nature, check-cashing businesses are more susceptible to community-specific crime trends and risks. Unlike banks, which operate on a broader national and even international scale, local robberies can have more immediate and significant impacts.

Security Varying by Region: The level of security in check-cashing businesses can vary greatly depending on the area. Some regions may have higher crime rates, which can lead to more frequent targeted robberies.

How Do They Protect Themselves?

While check-cashing businesses face a higher risk, they employ several robust security measures to protect their assets:

Armed Staff: Many businesses have staff who are armed, providing an immediate deterrent against potential robbers.

Closed-Circuit Television (CCTV): CCTV systems are installed to monitor the premises and provide crucial evidence in the event of an incident.

Secure Entrances and Exits: The use of secure entry and exit systems, including coded access systems, ensures that only authorized personnel are allowed in or out of the premises.

Bulletproof Glass and Safe Rooms: High-quality bulletproof glass and the presence of safe rooms provide a layer of protection against physical attacks.

Landline Communication: While many businesses may also have internet-based communication systems, maintaining landline phones ensures ongoing communication channels in the event of a power outage or cyber-attack.

Reporting and Investigation

The reporting and investigation of robberies in check-cashing businesses differ from those in banks. Unlike banks, which are federally insured and have national oversight, check-cashing businesses are often local entities. This means that robberies are typically investigated by local law enforcement and not by the FBI.

However, most check-cashing businesses prefer not to report robberies to local news outlets. This is because they generally do not want to disclose the amount of cash on hand, as this can attract unwanted attention and potentially increase the risk of future incidents.

Instead, they rely on internal security measures and regular communication with local law enforcement to stay alert and proactive. Additionally, some businesses maintain a low profile by limiting the amount of cash they keep on hand and utilizing armored vehicles for cash deliveries and pickups.

Conclusion

While check-cashing businesses face a higher risk of robbery compared to banks, this is largely due to the higher amount of cash on hand and local security measures. By employing armed staff, utilizing CCTV systems, and adhering to strict security protocols, these businesses effectively mitigate the risk of successful robberies. Their reliance on local law enforcement and a low-profile approach further enhances their security.