Crime against businesses costs almost €2bn a year

Crime against businesses is costing almost €2bn a year.

One in three SMEs have been the victim of crime in the last 12 months, with 45% of these experiencing more than one offence.

Isme, publishing the figures today following a national survey,

estimates that crime costs businesses €1.83bn a year. There are approximately 245,000 SMEs operating in Ireland.

The most reported crime was theft, which accounted for 32% of offences, followed by burglary (29%) and vandalism (27%).

Some 98% said the judicial system was an ineffective way to combat crime.

Businesses working in the retail sector were affected most by crime (45%). This was followed by the construction sector (36%).

Isme chief executive Mark Fielding said the Government is not doing enough to tackle crime against SMEs.

“The reduction of business crime is fundamental to business prosperity and is not being prioritised by Government,” he said.

“The business community has the right to expect that, when found guilty; a perpetrator of crime against business will be dealt with appropriately within the legal system. This survey clearly shows that there is a total lack of faith in the justice system, as 98% of respondents feel that it is ineffective in dealing with business crime.”

Mr Fielding called for business crimes to be recorded separately to other crimes. “Until this issue is taken more seriously at an official level, business owners will remain fatalistic about the legal system and not put in the time and money into reporting a crime unless they are convinced of adequate action being taken against the perpetrators of crime in their businesses,” he said.

Annually, crime now costs each business €6,570 directly. This is in addition to the €5,428 spent, on average by a business, on prevention and security.

However, a majority of businesses were happy with how the gardaí handled a crime they had reported.

A total of 69% who reported a criminal incident to the gardaí were satisfied with the response it received.

In reference to the indirect costs associated with being the victim of a crime, 16% of SMEs reported “poor staff morale” and 13% reported “reputation damage” following an offence.