Security trends and emerging technologies in the cannabis industry

Aug. 26, 2021
From access control to video surveillance and beyond, myriad options open to distributors and growers

Security in the cannabis industry has come a long way since its implementation in the first legal businesses more than 15 years ago. Initially, cannabis businesses were often designed with high, uninviting fences and other external security measures to discourage crime. Though these security tactics are effective for keeping people out, modern cannabis retailers want to be seen as welcoming to customers while still protecting their business from theft and diversion.

As the cannabis industry is adapting to changing laws and a more accepting society, the security industry is also advancing to meet these new needs. Each year, new security technologies emerge that can be applied or modified for the cannabis industry. This year, the cannabis industry is trending toward remote security technologies that could potentially improve business operations and efficiency. Although these remote technologies had already been in development, their use in security solutions has been increasing in popularity since the start of the COVID-19 pandemic.

Video Surveillance Systems

Video surveillance systems have made some of the most impressive technological strides of any security equipment in the past decade and almost all cannabis businesses now use advanced IP cameras. These systems are capable of streaming in real-time to almost anywhere with a connection to the internet and have made remote monitoring possible for any size cannabis business.

While these advanced systems are trending in both retail and commercial industries, cannabis businesses are often required by regulation to install and maintain a video surveillance system that can transmit a live feed so that law enforcement can remotely monitor the business. States like New Jersey and Illinois mandate live-feed access so they can remotely confirm that the cannabis business is operating compliantly and respond to potential incidents unfolding on the premises efficiently and safely. Situational awareness allows law enforcement personnel to better protect customers and other individuals in the facility, as well as ensure the safety of the responding officers.

Larger cannabis businesses are more likely to utilize 24/7 video monitoring, even if it is not required by regulation. While this can be accomplished on-site, remote technology has opened the door for third-party companies to take charge of monitoring the business. These third-party companies are experienced in remotely monitoring high-risk businesses like cannabis, assessing threats, and sounding the alarm when an incident occurs. 

One emerging security trend in the cannabis industry is the use of more advanced monitoring companies that utilize PVM, or proactive video monitoring. In addition to remotely monitoring the premises like other third-party monitors, PVM companies provide an audible intervention if an unauthorized individual attempts to access the premises. Remote interventions are often successful at deterring a crime before it occurs, but if a crime were to occur, PVM companies are able to provide responding law enforcement with detailed descriptions of the incident-in-progress from their off-site monitoring center. This also provides a means to deter loitering without immediate escalation.

Access Control Systems

Another trending security technology for cannabis businesses is advanced access control systems that can be managed remotely. Cannabis business management is able to remotely manage employee access to limited access areas of the facility using the cloud, granting or revoking access instantaneously to respond to changing security concerns. Additionally, these systems allow management to remotely lockdown the facility or unlock secure doors using a mobile app or website. Cannabis business management can also use these systems to remotely monitor access to the premises in real-time and review and export access logs.

Physical access control systems are also evolving to allow for completely contactless methods of granting access. Instead of using access control keycards to open secure doors and permit access to secured areas, some cannabis businesses have begun to use advanced access control systems with apps on mobile phones. These access control apps function as the “keycard” and utilize Bluetooth or Near-Field Communication to authorize access when the user gets within close proximity of the secure door without physically touching any other security devices.

Contactless access control systems have been increasing in popularity since the beginning of the pandemic as a way to reduce the spread of germs on physical surfaces. Similar to contactless access control methods using mobile phone apps, some innovative access control systems can regulate access through facial recognition. These systems can be programmed to recognize and identify thousands of users, including employees, customers, and visitors. Additionally, some innovative systems can even take the user’s temperature and deny access if the individual has a fever or is not wearing PPE.

Since these advanced systems can grant access remotely, there is a risk that someone could gain access to the business if an authorized user’s mobile phone was compromised. To prevent this, all users should be instructed to report lost or stolen mobile phones used for access control to management immediately. Like any security system that operates using the cloud, these access control systems also have more cybersecurity risks than a system that is managed on-site. Though there are cybersecurity tactics that can be used to protect the system, cloud-based security equipment is more vulnerable to hacking. If these systems are used, cannabis business owners should contract with an experienced IT professional to ensure their system is secure from cybersecurity threats.

Alarm Systems

While alarm systems have not changed as rapidly in the past decade, modern alarm systems have developed the ability to be managed remotely. These systems utilize a mobile app or website like other remote security technologies and allow cannabis business management to arm and disarm the alarm system remotely. Additionally, management can remotely monitor the alarm system in real-time and review data or logs generated by the system. If an alarm is triggered, the system will send a notification to management. Cannabis business management can remotely investigate the alarm activation, and in the event of a false alarm, they can deactivate the alarm.

One alarm security device that is trending in the cannabis industry is the wireless panic button, which is used to remotely activate the alarm system in the event of an emergency. Panic buttons are often required by regulation and, although hard-wired devices are common in cannabis businesses, wireless panic buttons are increasing in popularity. Wireless panic buttons are often worn on a lanyard around the employee’s neck and are especially beneficial for large facilities and outdoor operations where it is difficult, if not impossible, to ensure there is a panic button in every area where cannabis is vulnerable to theft.

While fully remote capabilities have their advantages, they also have their risks. If the alarm system can be armed and disarmed remotely, a crime could occur at the business without an alarm activation if a management team member’s phone is stolen. If a mobile device with access to the alarm system is compromised, the alarm company should immediately be notified so that access to that device can be terminated. Remote wireless panic buttons also pose more risks than hard-wired devices. Like any wireless device, these panic buttons could fail to operate if the device’s signal is interrupted or if the device has a low battery.

Smart Safes and Secure Storage

Internet-connected smart safes are another emerging technology in the cannabis industry. While the term “smart safe” can represent safes with a wide variety of internet-dependent functions, many assist with cash management and reporting. Smart safes for cash can improve the efficiency of business operations, while those designed for storing cannabis or other valuables are evolving to allow remote access and management.

Businesses with a high cash volume can struggle to maintain available funds without making frequent deposits into their financial institution. Perhaps the most common smart safe application for businesses that handle large amounts of cash, such as cannabis dispensaries, is their use to provide provisional credit. Smart safes are able to communicate with the financial institution to remotely verify the funds within the safe on-site at the cannabis business. The financial institution then issues the funds to the cannabis business as a provisional credit. While this ability can improve the efficiency of business operations, these smart safes can be quite costly and offer the most benefit for an extremely high cash volume.

Smart safes that can be managed and opened remotely are an emerging technology in the security industry, and once they become widely available, they will likely have a major impact on the cannabis industry. While the exterior lock of these safes typically needs to be opened on-site through a local method, individual secured compartments within the safe can be opened remotely using a mobile app or website. These smart safes could revolutionize the way cannabis storage is secured and managed in the future.

Though many of these trending technologies have their risks, it is likely that more remote options will emerge as IP capabilities continue to advance. Security is a crucial component to a successful and compliant cannabis business, so security leaders should stay up to date with trending and emerging security technologies to ensure the cannabis business is protected.

About the Authors:

Tony Gallo is the managing partner for Sapphire Risk Advisory Group, which specializes in security and loss prevention for high-risk businesses. He has more than 30 years of experience in the Security, Audit, Safety, and Emergency Management fields. Tony is a licensed security consultant and a published author on retail, financial loan services, and cannabis security. He is also a member of the American Society for Industrial Security, the National Pawnbroker Association and the National Cannabis Industry Association.

Katherine Baxter is the Lead Technical Writer and Industry News Editor for Sapphire Risk Advisory Group.

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