February 8, 2006 
LA Times - Highway 1

YOUR WHEELS
Thieves outwit high-tech advances


By Ralph Vartabedian, Times Staff Writer


The recent thefts in Southern California of several Lexus LS 400s, known among security 

experts for their antitheft systems that tie into the car's central computer system, have created 

new concerns about the evolving expertise of organized crime rings to defeat the auto 

industry's most clever engineering.

In the past, the theft of a few vehicles might not have seemed like such a big deal. But the 

ability of thieves to defeat top-tier automotive technology is another sign of the 

sophistication of criminal networks. Increasingly, car theft is more like computer hacking than 

like breaking and entering a home or business protected by physical locks and keys.

For every step taken by engineers to increase the difficulty of stealing a car, criminal 

networks have responded with schemes to defeat physical and electronic systems.

"It is a cat-and-mouse game between the bad guys on the street and the engineers in the lab," 

said Kim Hazelbaker, senior vice president of the Highway Loss Data Institute, a 

Washington, D.C. insurance group.

Though theft rates have been cut in half, insured losses remain unchanged from a decade ago 

as professional thieves target higher-value vehicles.

Just like any automotive technology, antitheft systems differ widely in both their design and 

effectiveness, said Forrest Folck, who operates Motor Vehicle Forensic Services in San 

Diego.

The LS 400s that were stolen are among models that use a smart key to tie into the car's 

electronic control module, or ECM, the central brain for the engine, transmission and related 

systems. Unless the smart key sends the proper code to the ECM transponder, the ECM 

disables the electronic fuel-injection system.

Here's how a criminal ring has defeated it: First, they force the locks on the door and steering 

column with a custom-made tool, using a socket wrench coupled to a specially machined 

blank key that fits any Lexus lock and can deform the wafers and tumblers.

Once inside the car, the hood is popped, the steering wheel lock is broken and the ignition 

electronics can be engaged. Normally, however, the ECM transponder would recognize that 

the key is not providing the proper security code.

But a second team member goes straight for the ECM, unscrewing the 6-by-8-inch box under 

the hood and unplugging the 50-pin connector. It is replaced with an altered ECM with a 

disabled transponder that does not shut down the fuel-injection system, Folck said.

Ken Zion, a collision and theft expert from Auto Collision Consultants, said he inspected two 

of the Lexus LS 400s and was impressed with how little damage was caused during the thefts.

"This was very ingenious," Zion said. "They can do the entire ECM swap in under five 

minutes."

The Lexus vehicles were recovered by an inter-agency auto theft task force, one of 16 in the 

state funded with a portion of vehicle taxes in an attempt to keep a lid on the theft problem.

Southern California is close to the Mexican border and next to the nation's largest port 

complex, both destinations of choice for thieves who want to export luxury cars to foreign 

markets, according to Hazelbaker.

In 2004, there were 2.3 theft claims nationwide for every 1,000 insured vehicles. By contrast, 

Los Angeles has 2.8 theft claims per 1,000 and the claims average $10,240, about 30% above 

the national average, he said.

Mark Stowell, a theft expert with the National Insurance Crime Bureau who works with the 

Orange County Auto Theft Task Force, said police recover 86% of stolen vehicles. While 

some are undamaged, many are stripped, crashed or burned.

Every generation of antitheft technology is good for a while but eventually gets figured out 

by criminal networks, a cycle Hazelbaker has seen play out before.

"A new technology is good for two or three years before you see the theft statistics creep 

back up," he said. "By five or six years, if the manufacturer hasn't changed the technology, 

you see the numbers back to where they were before."

The evolution began with locking steering columns back in the 1970s. They were effective 

until thieves defeated them with brute force. Now, even teenage thieves know how to defeat a 

locking steering column.

Among the most sophisticated antitheft systems is the Bosch controller area network system, 

used on BMW, Mercedes-Benz and other brands, Folck said.

But thieves have increasingly found ways to defeat this system as well, using laptop 

computers that plug into the OBD II connector under the steering wheel to reprogram the 

vehicle's software. Who is smart enough to write pirate software to steal cars? Electrical 

engineers who are familiar with basic computer design, Folck said.

Less sophisticated antitheft systems are widely used, including the General Motors "Pass 

Key" system. Folck said Pass Key systems are defeated using a simple magnetic tool. 

Consequently, the Cadillac Escalade has ranked as the most frequently stolen vehicle in the 

nation.

Folck said homemade antitheft systems that cut off power to a key mechanical system often 

cause thieves more trouble than a factory device because they are so unpredictable in design. 

But even if a homemade or factory electronic system does work perfectly, it will not 

necessarily protect a vehicle.

Some theft teams use casters to elevate a car off its wheels and then roll it onto a flatbed tow 

truck.

*


Ralph Vartabedian can be reached at ralph.vartabedian @latimes.com.
-------------------------------------------------------------------------------- BW0313 NOV 12,1996 15:09 PACIFIC 18:09 EASTERN
( BW)(FROST-&-SULLIVAN-16) Automotive Sensors Steer Market Toward the Future Business Editors MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 12, 1996--Today's automobiles may be considered high-tech, but you haven't seen anything yet. Tomorrow's cars are going to be increasingly sensitive to their owners' needs. Analysts at Frost & Sullivan have peered into the future and see a car with electronic steering; sun and rain sensors that automatically control windows, sunroof, wipers, climate control and lights; an intelligent cruise control that will slow the vehicle when it senses you're getting too close to that semi; and a parking assistance system that will warn about obstacles. That forecast is contained in new strategic research, NORTH AMERICAN AUTOMOTIVE SENSORS MARKET. It recounts that, until the 1970s, sensors only monitored fuel, oil pressure, coolant temperature and speed. Since then, state and federal governments have mandated reduced emissions, better fuel economy and safety devices like air bags. Sensors helped meet those requirements. By 1992, there were 19.6 sensors in the average vehicle. By 1995, that number had grown to 23.2, and the installation rate is projected to increase to 24.3 in 1999 and 25.9 in 2002. Since not all possible sensors are counted, these numbers are considered conservative. Modern electronic engine modules can set ignition timing to minimize fuel consumption and combustion by-products, and maximize power. But that's not all sensors can do. Electronic steering is on the horizon; a system will control the firmness of shock absorbers to suit road conditions. While this has been possible for some time, the technology was too expensive. Soon, installing an electric steering system will be easier than putting in the traditional hydraulic system, and cost is not expected to remain an obstacle. Silicon micromachining (SMM) makes possible mass production of extremely small sensors. SMM sensors are analog devices that continuously read conditions (temperature, pressure, acceleration, etc.). As dynamic as the automotive sensor application market is, manufacturers' revenues are projected to grow at a compound annual rate of only 1.0 percent from 1995-2002. Price declines are expected to nearly offset volume growth. But Frost & Sullivan analysts forecast that steering and suspension sensors will buck this trend; they project an 18.7 percent compound annual growth in revenue in the forecast period (1995-2002) due to the anticipated introduction of electric steering systems. This study by Frost & Sullivan details in length why some companies stand to gain -- and some to lose -- shares in the automotive sensor market. Its analysis provides significant strategic insight into the direction and velocity of this market; companies receive recommendations for strategic action when purchasing this report, and receive a reliable source of continuing research by an international marketing consulting firm dedicated to defining market problems, needs and opportunities. Companies included in the Frost & Sullivan study are: Airmar Technology Corp., Allegro MicroSystems, Inc., Alpha Industries, Inc., Alpha Thermistor, American Electronic Components, Inc., Analog Devices, Inc., Aura Systems, Inc., Breed Technologies, Inc., CTS Corp., Delco Electronics Corp., Delphi Automotive Systems, Duncan Electronics Division, Eaton Corp., Eaton Vorad Technologies, Edcliff Instruments Division, EG&G IC Sensors, Electro Corp., Fasco Controls Corp., First Inertia Switch, Futek Advanced Sensor Technology, Inc., General Electric Company, Hamamatsu Corp., Hi-Stat Manufacturing, Inc., Hitachi Automotive Products (USA), Inc., Holley Automotive Division, Honeywell, Inc., ITT Automotive, Inc., Kavlico Corp., Keystone Thermometrics, Lucas Control Systems Products, Magnetoelastic Devices, Inc., Merritt Systems, Inc., Motorola, Inc., Multicraft International, Nartron Corp., NGK-Locke, Inc., NGK Spark Plug Manufacturing (USA), Inc., Nippondenso America, Inc., Optek Technology, Inc., Optrand, Inc., Philips Automotive Electronics, Polaroid Corp., Robert Bosch Corp., Robertshaw Controls Company, Sensycon GmbH, SenSym, Inc., Siemens Automotive Corp., Silicon Microstructures, Spectrol Electronics Corp., SSI Controls Technologies, Inc., Systron Donner Inertial Division, Takata Electronics, TEMIC Automotive Technical Center, Texas Instruments, Inc., Transportation Electronics Division, TRW Automotive, Vaisala Inc., Varity Kelsey Hayes Company, Wabash Magnetics, Walbro Automotive, and Walker Electronic Silencing, Inc. Frost & Sullivan is an international marketing consulting company that monitors the sensors industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications and to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press. -0- *T Report: 5511-18 Publication Date: August 1996 Price: $2495 *T --30--lmm/sf CONTACT: Frost & Sullivan Amanda Christensen, 415/961-9000 ext. 231 415/961-5042 (fax) achristensen@frost.com or Kristina Menzefricke, 44.171.730.3438 (London) 44.171.730.3343 (fax) or Stefan Gerhardt, 49.69.235057 (Frankfurt) 49.69.234566 (fax) KEYWORD: CALIFORNIA INDUSTRY KEYWORD: AUTOMOTIVE RETAIL URL: http://www.frost.com REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or 800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473 Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.