Securus Technologies
{{Short description|Prison communications company}}
{{advert |date=November 2023}}
{{Infobox company
| name = Securus Technologies, Inc.
| logo = SecurusTech.net_submission.png
| type = Private
| industry = Technology, Rehabilitative Electronics, Telecommunications for Correctional Facilities
| fate =
| predecessor =
| successor =
| founded = {{start date and age|1986}} (as TZ Holdings Inc.)
Dallas, Texas, U.S.
| founder = Richard Smith
| defunct =
| hq_location_city = Carrollton, Texas
| hq_location_country = U.S.
| area_served =
| products = Tablets, Money Transfers, Communications, education, and reentry services for incarcerated individuals.
| owner = Platinum Equity
| num_employees = 1,600+ (estimated)
| num_employees_year =
| parent =
| website = www.Aventiv.com {{URL|securustech.net}}
}}
Securus Technologies is a technology communications firm serving prisons across the United States.{{cite news |last1=Markowitz |first1=Eric |date=8 April 2015 |title=Video Chats Are Replacing In-Person Jail Visits, While One Tech Company Profits |publisher=IBTimes |url=http://www.ibtimes.com/video-chats-are-replacing-person-jail-visits-while-one-tech-company-profits-1873918#.VSVgoyncgd4.twitter |accessdate=15 April 2015}}{{Cite web |title=About Us - Securus Technologies |url=https://securustech.net/about-us/ |access-date=2019-05-04 |website=securustech.net}} The company is a subsidiary of Aventiv Technologies. In the past, the company has faced criticism over phone call pricing, data security, monopoly{{Cite web |title=State of Phone Justice |url=https://www.prisonpolicy.org/phones/state_of_phone_justice.html |access-date=2023-05-11 |website=www.prisonpolicy.org |language=en}} and product innovation.{{Citation |title=Prison Labor: Last Week Tonight with John Oliver (HBO) | date=4 August 2019 |url=https://www.youtube.com/watch?v=AjqaNQ018zU |language=en |access-date=2019-09-25}}
Securus is owned by Beverly Hills–based private equity firm Platinum Equity.{{cite web |last=Darmiento |first=Laurence |date=2020-01-21 |title=Under pressure from activists, L.A. billionaire's prison telecom announces reforms |url=https://www.latimes.com/business/story/2020-01-21/tom-gores-platinum-equity-securus-ceo-reforms |website=Los Angeles Times |accessdate=2020-01-22}}
History
Securus was founded as TZ Holdings Inc. in 1986 in Dallas, Texas. The company changed its name from TZ Holdings Inc. to Securus Technologies in April 2009.{{cite web|title=Company Overview of Securus Technologies, Inc.|work=Bloomberg|url=https://www.bloomberg.com/profile/company/387158Z:US}} During the 2010s, Securus was one of a number of companies which provided telephone service to inmates in US prisons.{{cite web|last1=Connor|first1=Tracy|title='Huge Step': FCC Slashes Costs of Prison Phone Calls|url=https://www.nbcnews.com/news/us-news/huge-step-fcc-slashes-costs-prison-phone-calls-n449286|website=NBC News|date=22 October 2015 |accessdate=22 October 2015}} Securus was partially acquired by ABRY Partners from Castle Harlan in 2013 for $640 million.{{cite web|title=Private Equity Deals|work=Fortune|author=Dan Primack|date=April 8, 2013|url=http://fortune.com/2013/04/08/private-equity-deals-327/}} The company was the target of a data breach of about 70 million records of phone calls in July 2015.{{cite web|last=Young|first=Stephen|url=http://www.dallasobserver.com/news/dallas-based-prison-phone-company-securus-hit-by-massive-hack-7766782|title=Dallas-Based Prison Phone Company Securus Hit by Massive Hack|publisher=Dallas Observer|date=November 12, 2015|accessdate=August 2, 2016}} Since its inception, Securus has acquired 20 government services, software-based businesses, technologies, patents and exclusive partner agreements.{{cite web|title=ABRY Partners' Securus Buys PHD Medical's Telemedicine Assets|work=PEhub|author=Kirk Falconer|date=December 1, 2016|url=https://www.pehub.com/canada/2016/12/3423029/|access-date=November 21, 2017|archive-date=December 1, 2017|archive-url=https://web.archive.org/web/20171201044240/https://www.pehub.com/canada/2016/12/3423029/|url-status=dead}}
The company was acquired in 2017 by Beverly Hills-based private equity firm Platinum Equity, owned by billionaire Tom Gores. In 2019, Platinum Equity announced plans to reorganize the company as a more diverse technology company, and created Aventiv Technologies as Securus' new corporate parent.{{cite web|url=https://www.bizjournals.com/dallas/news/2019/10/08/securus-technologies-aventiv.html|last=Womack|first=Brian|title=Dallas-area company that's targeted prison populations realigns structure, broadens reach |website=Dallas Business Journal |date=2019-10-08 |accessdate=2020-01-22}}
In October 2020, Securus Technologies partnered with Televerde.{{cn|date=March 2024}} In this collaboration, Televerde will offer inbound customer service to friends and families of imprisoned people on live support networks, promoting the transition and training Securus users on the use of its goods.{{cn|date=March 2024}}
Securus was founded as TZ Holdings Inc. in 1986 in Dallas, Texas. The company changed its name from TZ Holdings Inc. to Securus Technologies in April 2009. During the 2010s, Securus was one of a number of companies which provided telephone service to individuals in US correctional facilities. Securus was partially acquired by ABRY Partners from Castle Harlan in 2013 for $640 million. The company was the target of a data breach of about 70 million records of phone calls in July 2015. Since its inception, Securus has acquired 20 government services, software-based businesses, technologies, patents and exclusive partner agreements.
In July 2015 Securus Technologies announced that it acquired JPay, Inc. technology and financial services provider.
In mid-January 2020, Aventiv Technologies named Dave Abel as its president and CEO. Abel committed to reform corporate policies and practices, acknowledging the company "faced criticism in the past over pricing, data security, product innovation and other issues."{{cite web |title=Dave Abel Named Chief Executive Officer Of Aventiv Technologies And Its Corrections Subsidiary Securus Technologies |url=https://www.platinumequity.com/getmedia/f28511f8-754e-49a0-96a5-2e62990e98d2/aventiv_Dave_Abel_CEO_01.aspx |website=Platinum Equity}}
Operations
Securus is headquartered in Dallas, Texas with regional offices located in Carrollton, Texas, Miramar, Missouri, and Houston, Texas. The company employs approximately 1,600 people and is reported to have contracts with 2,600 correctional facilities in the United States.{{cite web |last=Kozlowska |first=Hanna |date=May 9, 2015 |title=Prison communications company Securus will no longer require jails to ban in-person visits |url=http://qz.com/400055/prison-communications-company-securus-will-no-longer-require-jails-to-ban-in-person-visits/ |url-access=subscription |work=Quartz |accessdate=August 2, 2016}}{{cite web |title=Securus Technologies Inc. |url=https://www.privco.com/company/securus-technologies-inc/ |work=PrivCo}}
By the end of 2021, Aventiv Technologies deployed over 400,000 tablet devices to incarcerated individuals including 100,000 tablets that Securus Technologies made available to incarcerated individuals in Texas for free, with additional content expected to cover the costs.{{Cite web |date=17 September 2021 |title=110,000 Texas prison inmates to get computer tablets with apps, radio and email |url=https://www.wfaa.com/article/news/local/texas/texas-prison-inmates-to-get-computer-tablets-with-apps-radio-and-email/287-cf570e10-8b24-436c-a858-72a20882f94b}}
Communication costs
Prices for calls vary greatly among institutions, with first-minute charges from over US$5 to 4 cents, and from over US$1 to 4 cents for subsequent minutes.{{Cite web |title=2018 Phone Rates Survey |url=https://www.prisonpolicy.org/phones/appendix_table_2.html |access-date=2019-05-04 |website=Prison Policy Initiative |language=en}} Prices of out-of-state calls were capped by the FCC to around 21 cents per minute; however, instate rates at many jails and prisons continue to be much higher.{{Cite web |last1=Wagner |first1=Peter |last2=Jones |first2=Alexi |title=State of Phone Justice |url=https://www.prisonpolicy.org/phones/state_of_phone_justice.html |access-date=2019-05-04 |website=Prison Policy Initiative |language=en}} On December 8, 2021, Aventiv Technologies announced that the average per minute cost of calls made by incarcerated individuals with Aventiv technology was reduced from $0.15 per minute to a record-low $0.13 per minute.{{cite web |title=Securus Technologies Announces Record-Low Average Call Rate of $0.13 Per Minute and More Than 95 Million Free Connections |url=https://www.aventiv.com/securus-technologies-announces-record-low-average-call-rate-of-0-13-per-minute-and-more-than-95-million-free-connections/ |website=Aventiv Technologies |date=8 December 2021}}
In 2017, the company announced its Wireless Containment Solution, which was developed to prevent contraband cell phones from connecting to mobile networks.{{Cite press release |url=http://www.corrections.com/vendor/show_press/15877 |title=Securus Technologies Announces the Activation of Additional Wireless Containment Solution Installation |publisher=Securus Technologies, Inc. |via=Corrections.com |date=February 7, 2017}} As of November 2017, the company reported that the Wireless Containment Solution system has blocked 1.7 million inmate calls from prisons.{{cite web |author=Willard Shepard |date=November 6, 2017 |title=Ex-Corrections Officer Works to Disconnect Inmates' Cell Phones |url=https://www.nbcmiami.com/investigations/Ex-Corrections-Officer-Works-to-Disconnect-Inmates-Cell-Phones-455464753.html |work=WTVJ |location=Miami, Florida}}
In 2021, the California Public Utilities Commission capped the calling rates at detention facilities in the state at $0.07 per minute.
Criticism and controversy
In 2015, Securus aggressively lobbied to strike down Federal Communications Commission intervention regarding pricing regulation for inmate communications.{{Cite web| title=Exhibit 3 | url=https://static.prisonpolicy.org/messaging/Exhibit3.pdf | archive-url=https://web.archive.org/web/20180727104123/https://static.prisonpolicy.org/messaging/Exhibit3.pdf | archive-date=2018-07-27}}
On May 10, 2018, The New York Times revealed that one of Securus' products can be used to track the location of almost any phone in the US within seconds. Senator Ron Wyden (D-Oregon) has sent letters to the Federal Communications Commission (FCC) and telecommunications companies demanding answers on the controversial surveillance system. In June, 2022, a US Marshal was indicted by the Department of Justice for abusing the product to track people he knew, uploading blank documents and pretending he had authority to track people he had personal relationships with and their spouses.{{Cite news |last=Valentino-DeVries |first=Jennifer |date=2018-05-11 |title=Service Meant to Monitor Inmates' Calls Could Track You, Too |language=en-US |work=The New York Times |url=https://www.nytimes.com/2018/05/10/technology/cellphone-tracking-law-enforcement.html |access-date=2023-05-11 |issn=0362-4331}} Securus responded to the indictment that they had "discontinued the tool more than four years ago and permanently shut it off.{{cite web |title=US Marshal Charged for Using Cop Phone Location Tool to Track People He Knew |url=https://www.vice.com/en/article/us-marshal-securus-phone-location-tracked/ |website=Vice.com |date=14 June 2022 |language=en}}
The prison phone industry has been criticized for charging high fees and profiting off of vulnerable inmates.{{Cite web|url=https://www.prisonpolicy.org/phones/state_of_phone_justice.html|title=State of Phone Justice: Local jails, state prisons and private phone providers|last1=Wagner|first1=Peter|last2=Jones|first2=Alexi|website=Prison Policy Initiative|language=en|access-date=2019-05-04}}{{Cite news|url=https://www.nytimes.com/2015/03/31/us/steep-costs-of-inmate-phone-calls-are-under-scrutiny.html|title=The High Cost of Calling the Imprisoned|last=Williams|first=Timothy|date=2015-03-30|work=The New York Times|access-date=2019-05-04|language=en-US|issn=0362-4331}} In 2019, New York City passed a bill ensuring 21 minutes of free phone calls for all inmates in New York City jails; before the bill, the phone contract with Securus had generated $5 million in revenue for the city and $2.5 million for Securus.{{Cite news|url=https://www.nytimes.com/2018/08/06/nyregion/phone-calls-free-nyc-jails.html|title=Phone Calls From New York City Jails Will Soon Be Free|last=Greenberg|first=Zoe|date=2018-08-06|work=The New York Times|access-date=2019-05-04|language=en-US|issn=0362-4331}}
In 2015, Securus fees were the following:
- Around 10% for bank transfer{{Cite web |title=The multi-million dollar market of sending money to an incarcerated loved one |url=https://www.prisonpolicy.org/blog/2017/01/18/money-transfer/ |access-date=2023-05-11 |language=en}}
- Between $0.35 and $0.50 for "virtual stamps" per page of email.{{Cite magazine |last=Law |first=Victoria |title=How Companies Make Millions Charging Prisoners to Send An Email |language=en-US |magazine=Wired |url=https://www.wired.com/story/jpay-securus-prison-email-charging-millions/ |access-date=2023-05-11 |issn=1059-1028}}
- Around $20 per hour for video chat{{Cite web |title=Screening Out Family Time |url=https://www.prisonpolicy.org/visitation/report.html |access-date=2023-05-11 |website=www.prisonpolicy.org |language=en}}
In 2019, was found to covertly record and fingerprint inmates' and their correspondents voices by monitoring phone calls, to automatically flag the "suspicious" ones. Securus did not respond to a request for comment on how it defined “suspicious.” In some states, enrollment in the voice recognition program is mandatory to be able to make calls. Voice prints produced by the program are permanently archived at Securus’s facility in Texas.{{Cite web |last1=Joseph |first1=George |last2=Nathan |first2=Debbie |date=January 30, 2019 |title=Prisons Across the U.S. Are Quietly Building Databases of Incarcerated People's Voice Prints |url=https://theintercept.com/2019/01/30/prison-voice-prints-databases-securus/ |access-date=2023-05-11 |website=The Intercept |language=en}}
Securus faced a class action lawsuit in 2024 with the plaintiffs claiming that the company engaged in a "quid pro quo kickback scheme" with county jails in Michigan which banned in-person visits in order to maximize revenue from voice and video calls.{{cite news |title=Jails banned visits in "quid pro quo" with prison phone companies, lawsuits say |url=https://arstechnica.com/tech-policy/2024/03/jails-banned-family-visits-to-make-more-money-on-video-calls-lawsuits-claim/ |access-date=3 April 2024 |publisher=Ars Technica |date=29 March 2024}}
See also
References
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