Preventing Crime To Protect Business Profitability

From vandalism to cyberattacks, criminal threats are an ever-present reality for business owners. Criminal activity of all types is a major drain on resources and racks up billions in costs for companies globally. What can be done to reduce the effects of crime and to protect a business? Addressing these concerns starts with looking at the types of crimes as well as their perpetrators.

Shoplifting, burglary and vandalism are just a few of the outside threats. Prevention starts with protecting the property. Installing security lights, cameras and alarms can work as a deterrent and should be part of a greater security system. A proper system needs to have adequate surveillance inside and out to be most effective.

Next is close monitoring. This could be done on-site, remotely, or through third party security guard services trained to provide comprehensive protection. Lastly, keep close control on who has access. Sophisticated systems operating via access codes, card readers or fingerprint readers are advised for central entry and exit points. Requiring ID badges for access to buildings and offices can also help keep unwarranted people from the premises. With an enhanced and highly prominent defensive system, a business may no longer be considered a target and disregarded by would-be criminals.

What about insider threats? In the last two years, roughly 47% of companies have experiencedfraud. Customer fraud, cybercrime and asset misappropriation were the most frequently reported. The crimes were split between internal and external perpetrators, at 40% each, and collusion making up most of the remainder.

Internal crime is on the rise and more employees are admitting to theft of cash, merchandise and supplies, as well as company trade secrets and intellectual property. This is having a tremendous effect:More than 30% of business bankruptcies are attributable to employee theft. Employee theft is a variable term and can come in the form of payroll fraud, falsifying revenue reports, overstated expense reports and much more.

Protecting a business from internal threats starts with hiring. It’s recommended to follow strict hiring practices, such as credit and background checks, contacting references, and verifying information. Furthermore, instating responsibility and reliability policies as conditions of employment is recommended.

Safeguarding from internal fraud can also be in the form of cybersecurity measures. Having secure passwords may help prevent a business from being a target of identity theft, social engineering attacks and other technological exposures. Install upgraded firewalls and antivirus software on all workplace computers.

Nowadays, the range of crimes and their frequency is growing. The subsequent costs take a heavy toll on companies and can lead to increased bankruptcies and failures. Employing preventive measures and utilizing innovative detection systems are a must to protect profitability from internal and external transgressors. For further information and statistics on the impact of crime, please see the accompanying resource. Courtesy of Cancom Systems.