Direct Communication Solutions, Inc. announced it has entered into a strategic agreement on September 26, 2023 with CATrak Technologies, Inc. to offer its Catalytic Converter Theft Prevention solution. Catalytic Converter theft is on the rise on North America according to a new report based on insurance claims data released by the National Insurance Crime Bureau (NCIB), which shows a surge in catalytic converter theft across the country. According to NCIB, the US experienced more than 64,000 catalytic converter theft in 2022.

Leading the country in theft are California and Texas, which experienced more than 32,000 catalytic converter thefts in 2022. Catalytic converters contain precious rare earth metals like palladium, platinum, and rhodium, that are currently more valuable than gold. The NCIB report also shares that stolen catalytic converters are typically sold to metal recyclers for $50 to $250, and up to $800 for a catalytic converter from a hybrid vehicle.

Replacing a stolen catalytic converter can cost between $1,000 to $3,500 or more, depending on the type of vehicle. The loss to a business with a fleet of vehicles can suffer a significant financial impact due to loss of use of their fleet while they wait for replacement parts to be installed. Insurance companies are also spending a lot of money on replacing stolen catalytic converters.

In 2021, State Farm Insurance paid out more than $73 million in converter theft claims nationally. In 2022, it jumped to $112 million.