When it comes to running a cannabis business, security is not just essential. It’s non-negotiable. Compliance regulations cover everything from where you place your cameras to how you handle transportation. But here’s the thing—just because you’re able to check the compliance boxes, that doesn’t mean your cannabis dispensary, production facility, or transport operation is actually secure.
Many cannabis businesses still have security gaps even after they’ve met all regulatory requirements. That makes them easy targets for theft, fraud, and cyber threats. And the worst part? Most businesses don’t realize they’re at risk until it’s too late.
So, let’s dive into five of the most overlooked security risks in the cannabis industry and, more importantly, how to fix them before they lead to costly oversights.
1) Incomplete Security Camera Coverage
Security cameras are a given in the cannabis industry. You need them to stay compliant with state laws. But many cannabis businesses don’t realize they have blind spots even after regulations are met.
For example, think about the areas in your dispensary that aren’t front and center—the storage rooms where product is kept, the back exits employees use, and the areas where cash is counted and stored. These spaces often don’t get the same level of security attention as the showroom or sales floor, but they’re some of the most vulnerable spots for theft and compliance violations.
Production facilities? They’re at risk, too, especially around packaging lines, extraction rooms, and waste disposal areas where valuable products can quickly go missing. And let’s not forget transportation—without real-time GPS tracking and interior cameras, shipments can be vulnerable to unauthorized access while on the move.
So, while state laws require 24/7 surveillance, if there are blind spots in your coverage, you could face product losses, and maybe even compliance violations before you even realize there’s a security gap.
How to Fix It:
- Run a full security audit to identify and eliminate blind spots.
- Install high-resolution cameras with night vision in key areas.
- Use live remote monitoring to oversee operations in real-time.
- Equip transport vehicles with interior and exterior cameras and GPS tracking.
2) Weak Access Control & Unauthorized Entry
Another security gap we see in the cannabis industry surrounds access control. Sure, most cannabis facilities follow strict access control measures, but many businesses still use traditional locks, shared key codes, or key fobs, which can be easily lost, stolen, or shared. This creates security risks in dispensaries, production sites, and transport facilities, where unauthorized access could lead to internal theft, product diversion, or compliance failures.
How to Fix It:
- Use electronic keycards or biometric access control to track employee movement.
- Implement tiered access permissions for different security zones.
- Require dual authentication for high-risk areas like vaults, storage rooms, and transport vehicle access.
- Regularly review access logs and deactivate credentials for former employees immediately.
3) Employee Theft & Internal Diversion
Employee theft is also a significant risk factor in the cannabis industry, and it can often go unnoticed for months. Dispensaries can face theft from cash register manipulation, hidden product diversion, and fraudulent transactions. Production facilities can struggle with employees skimming products during packaging or extraction. Transport units are at risk if drivers alter routes or make unauthorized stops.
While compliance laws in Illinois, Iowa, and Michigan mandate strict inventory tracking, theft still occurs when security protocols are weak or inconsistently enforced.
How to Fix It:
- Install high-resolution security cameras in all inventory-handling areas
- Use real-time seed-to-sale tracking to flag discrepancies.
- Require two-person verification for all cash handling, product transfers, and high-value transactions.
- Conduct surprise audits of cash registers, inventory logs, and transport manifests.
4) Outdated Alarm & Intrusion Detection Systems
Alarm systems can also be a weak point for security because businesses often utilize basic systems that meet minimum compliance standards. This can lead to outdated systems that can be easily compromised and more. They also might not be linked to a 24/7 monitoring service, which can lead to delayed response times in intruder and employee theft situations.
How to Fix It:
- Install a 24/7 monitored alarm system with instant alerts to law enforcement.
- Use motion detectors, vibration sensors, and glass break alarms on all entry points.
- Incorporate systems with AI intruder detection and real time alerts to your cell phone
- Equip transport vehicles with tamper-proof locks and live tracking alerts.
- Test alarm systems regularly and ensure emergency response plans are up to date.
5) Cybersecurity Risks & Data Breaches
Even if your physical security system checks all the right boxes, cyber threats can also impact your business. A cyber attack can compromise customer payment data, employee records, and security system access. In some situations, they can even turn off your surveillance of security feeds remotely.
How to Fix It:
- Encrypt all digital transactions, customer records, and security system data.
- Implement firewalls and multi-factor authentication on POS and security systems.
- Train employees on phishing scams and cybersecurity threats.
- Perform routine security audits to detect and patch vulnerabilities.
Want to find and fix your security gaps?
Don’t wait for a security breach. Compliance regulations only set minimum security standards for the cannabis industry. They don’t guarantee real protection. To truly secure your business, you need a comprehensive security strategy that goes beyond compliance. Contact SEICO today about our custom security solutions for the cannabis industry!
