The Security System is a gray monitor with a camera-looking laser, that only zaps someone if it detects a threat. Strangely, in a code red situation, the security system becomes alive.
Role in episode
Squidward is ticked off that SpongeBob and Patrick are ruining his Sunday. He sees an ad for this security system and gets it installed in his house. SpongeBob and Patrick are able to walk right in to Squidward's house, however. SpongeBob wants to give Squidward an apology cake, but Squidward wants the security system to get rid of his annoying neighbors. Squidward tries banging on it to get its attention, but Squidward is instead zapped which makes SpongeBob drop the cake on the system to make it declare a 'Code Red' situation. It comes alive and launches a full-scale attack on Bikini Bottom while SpongeBob and Patrick try to find a way to turn it off. It ultimately gets turned off and crushes Squidward. After he kicks SpongeBob and Patrick out the summoner presents Squidward with a summons to do Community Service every Sunday for the rest of his life which has also been received by SpongeBob and Patrick who look forward to it. Squidward, however does not.
It was likely broken after the events of Good Neighbors.
There is no conformation of it returning on a later episode of the series.
It is unknown how it did not pick up SpongeBob and Patrick when they walked in to Squidward's house.