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From Accountingnet.ie In Business
SFA 7th National Business Crime Survey reveals:
The 7th National Small Business Crime Survey conducted by the Small Firms Association, shows that 45% of businesses have been victims of crime on at least one occasion in the past two years, with 66% of firms having been victims of crime on two or more occasions. According to SFA Director, Avine McNally “the business community is under constant attack from planned professional criminality. There is an enormous psychological price being paid by business people as crime is now more organised, more professional, more ruthless and more pervasive.” The costs associated with crime are increasing rapidly with the current survey showing the costs incurred per single incident of crime ranging from €50 to €50,000, with the average cost per incident being €2,920. There was a 24% increase in capital expenditure by small businesses on security measures, which now averages €9,277 per company or a total investment of €2.04 billion per annum. In addition, the average cost per company of maintenance for security equipment averages €1,231 per annum or €270 million annually. McNally said, "a large part of the cost burden falls on retailers who are especially vulnerable to crime and find themselves spending large sums of money on security measures they can ill afford. The survey indicates that as crime is becoming more sophisticated, firms are putting more complex security systems in place. The use of CCTV has increased to just over 38%, while the number of electronic access control systems have risen to nearly 30%. Firms also use alternative security services such as mobile and static security patrols; guard dogs and key holding services.” Respondents were drawn from all sectors and of the 171 companies who responded to the survey:
The major forms of crime cited were as follows:
Since the 2007 survey, small firms have increasingly become the victims of a range of online crimes, including internet scams, identity fraud, phishing and data theft. The costs of these incidents ranged up to €20,000, with the average cost per incident being €5,663, an increase of €3,500 on 2007 figures. Commenting on the impact of crime and the low rate of convictions achieved in Ireland relative to other jurisdictions, McNally added, “as small business comes under ever increasing pressure to protect itself, the SFA is critical of the conviction rates being achieved in Ireland relative to other jurisdictions. The small business community is under constant siege from planned, professional criminality and the conviction rates being achieved in Ireland fall far short of what is being achieved in other jurisdictions, particularly the UK.” “The latest figures available from the Gardai show that the annualised number of headline cases reported to the Gardai was 284,131. The number of convictions achieved was 41,792. From these figures it appears there is very little chance of Irish criminals ever being brought to justice, leaving the victims of crime in a sense of hopelessness and despair,” commented McNally. The table below sets out the type of crime and the level of convictions achieved:
Total of all reported cases including those listed above 284,131. Convictions 41,792. (Source: IPA Diary 2010) "Crime is of paramount importance because it costs money, affects health and lowers the quality of life. All those unfortunate enough to become victims of crime experience one or more of these traumas. In addition to the obvious costs of crime such as insurance, there are many hidden costs, including the cost of lost production, administrative costs associated with crime investigation, higher staff turnover, absenteeism, stress, loss of premises, degeneration of business areas, closures and job losses,” McNally said. “It would appear that business crime does not feature on the political agenda. Both business and citizens no longer have faith in a system which has a constitutional responsibility to protect them. For too long the emphasis has been placed on the needs of the perpetrator and not the victims of crime. This must change and every citizen and business in the State must be reassured that the necessary steps will be taken.” The SFA is therefore calling for the following approach to reduce the cost and incidence of crime on business, both at policy and operational levels.
McNally concluded “small business is spending billions of Euro on security provision and yet the incidence, extent, scope and costs associated with crime are increasing. This alone reflects the societal changes which are taking place and why it is so important that crime, its prevention and the manner in which we deal with convicted criminals must change, otherwise our society and our nationhood is in serious danger.” ENDS For further information contact: Avine McNally, Director, Small Firms Association.
Avine McNally
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