Firms to face tough criminal threat in 2005

A survey, by AXA Insurance, shows that 12 per cent of small businesses in the UK could fall victim to criminal activity during the next twelve months.

The projections follow findings by AXA, revealing that 62 per cent of small businesses have suffered from crime over the past five years.

AXA believe the most frequent forms of business crime will prove to be theft, malicious damage and forced entry.

The figures also show that the hotel and catering sector are most vulnerable to business crime, with 84 per cent of firms in the sector claiming to be victims since 1999, followed by construction companies (74 per cent) and retailers (71 per cent).

Neil Mercier, property insurance manager at AXA said: “Crime is a very serious problem affecting the business community and in extreme circumstances organisations can find it difficult to recover.

“The average crime related business claim settlement is £3,722, however in the case of arson, for example, the damage can run into hundreds of thousands of pounds.”

At the start of 2004, AXA clamed that although the UK’s business crime rate fell to 17 per cent, the cost of break-ins, vandalism and robberies rose by seven per cent.

Over the past five years theft and shoplifting have remained most prevalent among business criminals, with 28 per cent of small firms falling victim.

Other forms include violent entry, experienced by 17 per cent of firms, fraud and e-crime, 13 per cent, and arson, 4 per cent.

Mercier said: “The good news is that businesses can dramatically reduce the chances of becoming a victim of crime by taking a few simple steps such as making sure that all windows have secure locks and that alarms are fitted and used.”