Quarter of small businesses a victim of crime

ONE in four small businesses has been a victim of crime in the past two years, costing them £883 million in total and an average of £2,500 each, according to figures out today.

Vehicle break-ins and thefts from the workplace were the most-frequent crimes reported by small businesses and sole traders, while fraud was the biggest single criminal threat to larger companies.

Jazz Gakhal, head of RBS-owned Direct Line for Business, the insurer that carried out the survey, said: “It’s alarming to see that as much as a quarter of small businesses have recently been affected by crime, though unfortunately this is always likely to increase in an economic downturn. Claims typically average £2,500 and an unexpected bill of this size could put huge pressure on many small business owners.”

About 360,000 crimes resulted in companies making insurance claims, spread across trade credit insurers and business insurers and covering policies such as commercial property, commercial vehicle and employer’s liability insurance.

A study published earlier this month by accountancy firm KPMG revealed that nearly two-thirds of fraud is committed from within organisations – and management is the single-largest group responsible.

In Scotland, levels of fraud in the first six months of 2012 came down dramatically after a number of large illegal fishing cases – which together accounted for more than £91m – distorted comparisons with last year.

The figure stood at £1.2m, against £94.1m for the first half of 2011. The latest total is the lowest in a decade.

PETER RANSCOMBE