The intersection between chemicals and homeland security cannot be overstated. The United States chemical sector is responsible for more than a quarter of U.S. gross domestic product (GDP) and supplies Americans’ everyday products, including the medicines we take, the electronics we use, and the clean drinking water we require. The industry is essential to our economic and national security, and, as a result, the chemical sector, and its supply chain, has become an attractive target to bad actors.
While the chemical distribution industry has remained vigilant against threats, tactics and technologies are constantly evolving. In fact, Alliance for Chemical Distributors (ACD) members have experienced an uptick in fraudulent attempts and reported incidents of individuals trying to not only access their data, but to acquire the hazardous materials they handle. In January, ACD members were contacted by suspicious individuals requesting chlorine products and demanding the locations of their distribution centers, placing businesses on high alert to safeguard their product, customers, and supply chain operations. Fortunately, thanks to their training and awareness, ACD members were quick to recognize and respond to stop these attempts by malicious actors.
Cybercriminals also have become increasingly adept at impersonating legitimate companies to purchase chemical products, often using the newest technologies, like artificial intelligence (AI). The rapid embrace of AI further complicates this challenge and requires businesses of all sizes to exercise even more diligence to safeguard operational integrity and minimize potential security breaches. Theft through “deceptive acts” is up 700% in some areas of the U.S. A record 925 cargo thefts occurred in the first quarter of 2024, with total losses of more than $150 million and an average loss of $188,000. This type of theft can cause significant delays in the delivery of essential goods, disrupting the supply chain and placing communities at risk.
Amid these countless threats – both physical and cyber – there is one program that played a significant role in safeguarding chemical facilities and surrounding communities from acts of terror: the Chemical Facility Anti-Terrorism Standards (CFATS) program. Unfortunately, despite having nearly two decades of bipartisan support, Congress failed to reauthorize the CFATS program in 2023. Without this critical program and the lack of collaboration between chemical facilities, the Department of Homeland Security (DHS), and law enforcement, security gaps have persisted. More than 89.5 million people live or work within two miles of a high-risk site, and as a result of the program’s lapse, DHS has not conducted terrorist vetting for an estimated 118,000 personnel who have recently gained or are seeking access to restricted areas of chemical facilities. This number continues to rise the longer this critical program remains inactive. It’s long overdue for Congress to reauthorize this program for the safety of our industry and the surrounding areas.
Chemical security and national security go hand-in-hand. In the face of significantly sophisticated and evolving threats, ACD members and the chemical distribution industry continue to stay vigilant against severe security risks to protect our businesses, supply chains, and communities.