A company is losing hundreds of mobile devices each year due to insider theft.

“Geofencing capabilities in a mobile device management (MDM) solution allow administrators to define a virtual perimeter—based on GPS or network identifiers—around a physical location. Devices that exit the geofence can be automatically restricted or disabled, preventing them from functioning outside the approved area, and will automatically resume normal operation once they re-enter the perimeter. This approach deters unauthorized removal while allowing legitimate, temporary off-site use (for example, if a device is accidentally taken home and returned).”

— CompTIA CASP+ Official Study Guide, Third Edition, Chapter 5: Mobile Device Security, p. 278

“Implement geofencing as part of an enterprise MDM strategy to enforce location-based access controls. Unlike remote wipe— which is irreversible—geofencing ensures devices remain usable when returned, and unlike encryption or simple location monitoring, it enforces a policy that directly blocks functionality outside authorized zones.”

— CompTIA CASP+ CAS-004 Exam Objectives (v7.1), Section 4.3: Mobile Device Management, p. 26

By configuring a geofence around the warehouse, the company ensures that mobile devices become non-functional if removed beyond the defined boundary, yet automatically restore full functionality when brought back, effectively deterring theft without risking permanent data loss or requiring user intervention.