Our British Chambers’ of Commerce (BCC) colleagues have recently published a report on business crime, ‘Crime against business – The hidden threat to UK growth’,which you can read here:
Crime-Against-Business-Report-FINAL.pdf
The report is shining a light on a challenge that is stealthily holding businesses back. Crime is often seen as an operational issue for individual firms but the report emphasises that the impact is far wider. Business crime is a structural barrier to economic growth across the UK.
One of the most striking findings is the scale of the problem, with more than two in five UK businesses (42%) who reported having experienced some form of crime in the past year. This could include traditional offences such as theft and vandalism, through to increasingly prevalent cyber-attacks, fraud and scams.
More than one in five businesses (21%) have been affected by cyber incidents, while one in five reported online fraud or scams.
It’s often larger firms who tend to be more exposed to crime, with 58% of businesses employing over 250 staff affected, compared to 32% of micro-businesses. There are noticeable sector differences, with manufacturing identified as the most frequently targeted sector.
However, the true scale of business crime is likely to be significantly higher, due to under-reporting, particularly amongst smaller businesses and high-street retailers dealing with low-value, high-frequency incidents.
Many firms simply won’t report crime because of the time involved or a lack of confidence that action will be taken. This creates a gap in understanding and limits the effectiveness of enforcement responses.
Beyond the immediate financial losses, the report emphasises the wider economic consequences of crime. Businesses find themselves having to divert time and resources into security measures and crime prevention rather than investing in growth, innovation, and skills.
Business crime is not just a cost, as it can also serve to drag productivity and competitiveness, limiting business confidence and slowing investment. The added cost burden of crime risks further constraining growth.
The very nature of business crime continues to evolve. While physical crime such as shoplifting remains a concern, cyber threats and fraud are increasing in both scale and sophistication. Such crimes are often harder to detect and can have long-lasting impacts, from financial loss to reputational damage and even business collapse.
Our BCC colleagues have called for a series of recommendations aimed at improving prevention, reporting and enforcement. These include a national business crime strategic assessment, which can provide a more accurate measure of the economic harm caused by crime against businesses.
The creation of a single cyber-attack reporting system for firms will reduce administrative burdens, whilst improving protection.
At a local level, Staffordshire Chambers of Commerce is funded by the Police and Crime Commissioner for Staffordshire to deliver specialist support to businesses impacted by crime.
This support has a real focus on the provision of practical advice and guidance, with the aim of ensuring business continuity following a crime.
All victims of business crime will receive one hour of free confidential specialist support should they wish to take up the offer. This can include security, ICT, business continuity. For further details, please click on the link:
