Study: Direct Link Between Scrap Yards, Crime

INDIANAPOLIS -- A new study suggests there is a direct correlation between the number of scrap yards in a city and the quantity of metal thefts.

University of Indianapolis researchers maintain there is good reason to focus crime-prevention on area scrap dealers because the resale of certain metal items -- like catalytic converters, copper plumbing and wires and aluminum siding -- requires a specialized secondhand market.

The study suggests that dealers who unwittingly, or sometimes knowingly, purchase stolen items facilitate the disposal of those items and, therefore, might play a role in increasing metal thefts.

Last year, when metal prices hit a record high, homeowners and business suffered losses of $1 million per month in Indianapolis, where there are nearly 30 metal recycling companies.

Still, many of the thefts go unreported, researchers said.

"A lot of thefts never get reported by utilities," said Kevin Whiteacre, one of the authors of the study. "Companies that are big victims never make claims, they simply make that part of the cost of doing business."

Indianapolis ranked 8th among 51 of the nation's cities where victims filed insurance claims to cover losses.

And while scrap yards have been the focus of police raids and increased attention, they might also prove to be law enforcement's biggest ally in the fight against metal theft.

"You really have to work with them," Whiteacre said, "in order to try and help identify what things are stolen and how you can try to get them back."