SPRING 2024 SMALL BUSINESS CRIME THE COST OF CRIME Small business crime doesnt make The cost of crimes, but research shows a rise in threatening behaviour and an increase in serious organised the!. So what is being done to tackle the problem? There has been a shocking rise in crime affecting small firms in the UK, according to new research from the Federation of Small Businesses (FSB). The FSBs report covers three types of crime: traditional such as antisocial behaviour, theft, burglary and arson cybercrime, and fraud. It highlights crimes experienced by small firms between January 2021 and January 2023, a period that overlapped with the coronavirus pandemic. Rules on limiting social contact resulted in fewer incidents of theft and robbery, for example, which is reflected in the research. Fraud is now the most common crime in the country, costing almost 7bn a year. It accounts for 41 per cent of offences in England and Wales, but only one per cent of police resources is dedicated to it. The FSB believes there needs to be a greater focus on the impact on small businesses of fraud, which can not only be life changing for the business owner, but also have a negative impact on the local economy. FSB recommendations to government: Traditional crime: Introduce a single online portal to allow business complainants and other victims to submit witness statements and simple evidence, such as CCTV images, directly to the police. Cybercrime and fraud: Require online and social media platforms, as well as email providers, to enhance their security measures by, for example, introducing multi-factor authentication to prevent the hacking of accounts. Policing and reporting crimes: Introduce a mandatory recording process for business crime to improve crime data in England and Wales and drive better outcomes through more targeted resource allocation. Worryingly, incidents of small business cybercrime have more than tripled, highlighting the ineffectiveness of measures taken against business crime to date. Phishing is the cybercrime most frequently reported by small businesses in England and Wales. The FSB report also found that, over the past two years: 11 per cent of small businesses say traditional crime has cost them more than 10,000 81 per cent have experienced at least one type of business crime 72 per cent have experienced cybercrime An estimated 1.89m have experienced fraud 26 per cent have experienced unauthorised payments from bank cards/accounts. Small businesses are taking measures to protect themselves 56 per cent say they have invested more in cybersecurity and anti-fraud measures in the past two years but the FSB wants to see more action by government, law enforcement and wider industry to help tackle business crime (see panel). Difficulties around reporting and calculating the impact of crime can also lead to resources being misdirected, so infrastructure must be put in place to enable police forces to classify business crime. Of the small businesses that experienced crime in the past two years but chose not to report it, 20 per cent said it was because of a lack of confidence in the police and Action Fraud. Greater collaboration between forces and support from national leads is needed. Data from Action Fraud also needs to inform the allocation of police resources locally and nationally. Small business crime is not a victimless crime. It impacts business owners, staff and local communities, and acts as a barrier to business growth and innovation. Publication of the Governments Anti-Social Behaviour Action Plan is welcome, but more could still be done to protect and support small businesses and those who work in them. Credit: Karen Woolley, Development Manager, Federation of Small Businesses Image: iStock.com / cenkerdem Anonymous Hotline For further information, please contact your local Trading Standards Service For up-to-date news stories and information, follow us on 0300 303 2636 Is your sector being undermined by unscrupulous traders operating outside the law? Report them via Trading Standards Anonymous Hotline or online and help level the playing field for honest businesses.