Case Study: State of Michigan achieves secure digital cigarette tax stamping and increased revenue with OpSec Security

State of Michigan - Customer Case Study

The State of Michigan engaged OpSec Security (in partnership with Xerox) to replace its legacy thermal cigarette tax stamps with a tracked, digital solution — SecureITT (digital tax stamps) integrated with Xerox’s eTRACS reporting system — to combat fraud and illicit trade, improve supply‑chain visibility, and maximize cigarette excise tax collections across wholesalers and retailers.

OpSec Security delivered nano‑structured SecureITT stamps, high‑speed stamping machines, scanners/cameras, the cloud‑based eTRACS reporting/audit system, and ongoing Contraband Watch and mobile authentication services. The rollout achieved stamping speeds exceeding 1,000 packs/min with ≤2% error rates, enabled real‑time track‑and‑trace and consumer engagement, and produced measurable gains: revenues rose $15.7M (1.8%) in the first 12 months versus the prior year and $29.8M (3.4%) versus forecast, with the program self‑funding and payback in under one year.

State of Michigan