Massive data gap hampers efforts to protect business against crime

AXA is calling on the future Government to do more to protect UK businesses from the growing threat of crime. AXA recently met with business leaders and crime experts to discuss the reality of business crime in the UK and whether the Government and the police are recording incidences of these crimes effectively. The overwhelming consensus was that business crime isnít taken seriously enough and that the lack of official data on this area makes it difficult for the police and businesses to tackle the problem.



The way crimes are categorised seems to be at the heart of the problem. This is because criminal offences are not really categorised into enough detail, with only a split between burglary (domestic) or burglary (non-domestic). This makes it difficult to source accurate figures on the types of business crime as the statistics go no further, other than one category separately measuring theft from shops. This means that a whole host of other types of business are left in the dark about the crime trends that affect their sectors, regions and cities.

At the AXA business crime event, which was attended by representatives from the British Chambers of Commerce (BCC), the British Retail Consortium (BRC) and Action Against Business Crime, AXAís quarterly Business Crime Index research, which tracks crime trends based on insurance claims settled, was also discussed. The most recent analysis revealed that insurance settlements for business crimes during the fourth quarter of 2004 were up by more than 22% when compared to the previous three months.

David Williams, claims director at AXA Insurance and meeting chair, said: ìThe AXA Business Crime Index allows us to regularly release data which goes some way to expose and track real-life business crime trends. But despite some figures and advice being available to businesses, weíre still seeing claims rising significantly quarter on quarter.

The crux of the problem appears to be the fact that there is a massive gap in the official (Government and police) data available about business crime carried out in the UK. At AXA we want to raise the profile of this issue so that, in the future, regional crime partnerships have all the facts they need to tackle this problem. Thatís why sharing information with like-minded organisations, such as the BCC, is so important to us in this process.î

To find out more about how UK businesses feel about business crime and the potential risks, AXA also carried out research with small to medium enterprises. The objective was to explore attitudes towards business crime and the people who carry it out. Results clearly show that businesses are not happy with the level of protection they get from the police or with the sentences that criminals are given. 62% of businesses surveyed said there are not enough police on the streets, while 46% would like to see longer custodial sentences for those who are convicted of criminal activity.

In light of this Mike Schuck, chief executive for Action Against Business Crime, pointed out that there are now two pilot schemes in place with Greater Manchester and South Wales police to identify and classify business crime in around 28 different categories in order to build a more accurate picture. But he stresses that key performance indicators (KPIs) that police forces currently work to are skewed towards domestic issues, rather than business crime.

Steven Hill, policy advisor at the British Chambers of Commerce, said The BCCís own research shows that many firms are concerned about the policeís failure to tackle business crime. This failure is, regrettably, largely understandable due to the fact that the police are not measured on their performance in tackling business crime. Requiring the police to record business crime as a separate statistic will serve to raise the profile of the issue amongst forces and should provide a greater incentive for the police to act.

Martin Gill, criminologist, thinks that it is understandable that business owners would want to see stricter punishments for offenders. When he asks offenders why they commit these crimes they tell him it is because itís so easy. ìBut itís also vital we get businesses to take more responsibility too.î says Gill.

So it is also important that businesses do more to protect themselves by undertaking a thorough risk management review. But it is AXAís view that businesses are still failing to take the problem as seriously as they should. Williams warns: ìThis is not just about cash flow ñ itís about losing customers and failing to protect staff.î

Another issue to understand is that criminals may often return to the same location, said Williams. ìA classic is when a companyís ropey old computers are stolen and then replaced with brand-new ones ñ only to have those stolen a week or so later by thieves who are now familiar with the layout of the building.î

Businesses can find relevant information and advice at AXAís website,