How to Stop an Equipment Thief

Deterrence and insurance are the bookends of a good loss-prevention program.
Aug. 22, 2025
6 min read

Key Highlights

In this article, you will learn:

  • How to raise employee awareness on key security practices.
  • What types of physical barriers help prevent theft.
  • Which machines are most popular among thieves.
  • How telematics systems canhelp prevent theft and aid recovery.

On average, 31 pieces of heavy equipment are stolen in the U.S. every day, more than 11,000 every year. Small-time criminals and mischief makers steal some, but organized crime rings often target yellow iron because the payoff is so big.

Equipment theft is a $1 billion industry, and fewer than one of four stolen machines are ever recovered. Some thieves target machines just for the components. A fast-working group can part-out hydraulics, engines, and other components and have them for sale online within hours.

Preventing the theft of your equipment requires a multi-pronged approach, but it begins with creating awareness. All of your employees should understand the risks and how their daily routines can reduce them. 

One of the more sophisticated AI-based security solutions, iDter’s Nio unit, uses cameras with integrated flood lights and motion detection linked to neural networks and deep learning algorithms. These perform image analysis to determine when intervention is needed and what level of intervention (voice warnings, alarms, personnel and/or law enforcement notifications) to deploy. This AI approach reduces the number of false alarms and repels trespassers at the rate of 98%, says Greg Ayres, VP, marketing and business development at iDter.

Manufacturer solutions to equipment theft

Equipment manufacturers have created a variety of anti-theft technology to protect their customer’s assets against theft and unauthorized use. Most of this is simple and cost effective and built into the telematics package. For example:

  • Bobcat’s Machine IQ telematics service provides machine information that customers and dealers can access virtually anywhere using a computer or mobile device. This program offers a remote engine disable/enable feature. If unauthorized use is suspected, you can log into the Bobcat Owner Portal or Machine IQ app, pinpoint the location, and disable the engine. If the machine is in operation, the engine will derate to a near standstill.
  • Volvo’s CareTrack telematics system includes GPS technology that can help track down stolen equipment and prevent machines from being stolen. Geo-fencing and time-fencing create virtual limits on the area where the machine will be used and the hours it will operate. If the machine travels outside these parameters, it will automatically alert you. On certain machines keypad codes makes it harder for a thief to turn a machine on.
  • Caterpillar’s VisionLink enables real time alerts when a machine exits a geofence or is started outside of set operating hours. Its remote-disable feature renders a machine with electronic engine inoperable from afar. The security system is integrated into the starting system, engine, and transmission requiring security keys or passwords to access. Cat also offers an aftermarket universal security system kit for any brand of equipment.
  • Develon’s telematics system offers various security features include geofencing, which sends an alarm notification via email or to a dedicated app if a machine leaves a designated area. And time fences notify users if a machine is operated outside of set hours. The telematics system can also send alarm notifications if a large amount of fuel is dumped from a machine, helping to identify potential theft or misuse. Beyond notifications, the system also offers ways to prevent theft by remotely locking out or preventing access.
  • KubotaNOW telematics delivers machine location and the ability to set up a geofence around each job site or storage yard. With access to the app, you have the ability to inhibit the restart of the machine before leaving the worksite. The keyless start feature requires pass codes for engine start up.

Insurance and equipment theft

All contractors carry insurance, but it’s important to update and review policies on a regular basis. Surprisingly, many contractors have only a vague idea of the specifics in their insurance contracts when it comes to equipment theft and liability, says Heinlein. And such oversight could lead to painful financial losses.

The changing nature of each job, the different risks associated with different sites, and a host of other variables can make it difficult to understand how much insurance protection a contractor has at any given time. One solution, Heinlein says, is to partner with an insurance broker.

As independent agents, brokers with specialized experience and knowledge of different types of businesses will go over your finances, determine your asset values, and assess your appetite for risk. They can also study your security and anti-theft protections and make informed suggestions on how to improve these elements. The broker can then create a package that they will shop around to different insurance companies to find you the best policy at the best price.

“Most construction companies are less than 100 people and may not have enough people to dedicate to the task of managing an insurance program and figuring out all the angles, which is why a broker can be a valuable partner,” says Heinlein. “A broker will be your advocate. Sit down with them on a regular basis and learn what is covered and what is not covered as circumstances change.”

About the Author

Tom Jackson

Tom Jackson is a magazine journalist, carpenter, and woodworker with 35+ years experience.
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