Business crime is any illegal activity that uses a business’s infrastructure to perpetrate a criminal act. It can range from theft and break-ins to money laundering, embezzlement and fraud.

While some of these activities are less common, many types of business crime occur every day. To protect businesses and the public, it is important to understand the different types of business crime, as well as how to prevent them.

Here are some of the most common types of crimes that occur at businesses and steps you can take to prevent them:

1. Fraud

Fraud is one of the most common types of business crime. These days, most criminals will commit credit fraud. This is where criminals buy material and goods on credit and then vanish without paying.

To help prevent fraud, especially credit fraud, watch for new customers who are ordering unusually large amounts of merchandise on credit. While this may seem like a gift, it is often a sign of suspicious activity. Similarly, you want to be careful when customer payments start to fall behind or there’s a sudden increase in orders for no obvious reason.

Other prevention methods include:

• Requiring all customers to fill out credit application
• Doing a credit check
• Verifying customer references
• Building relationships with the management at customer companies
• Requiring all customers to pay upfront

2. Cybercrime

Cybercrime is on the rise as more businesses become dependent on computer systems and the internet. Businesses can protect themselves against cybercrime by:

• Employing strong authentication measures, such as two-factor authentication, encryption, and strong passwords
• Having strict security policies and regular security audits
• Reporting all cybercrime to police
• Hiring a reputable IT or cybersecurity firm to review your cybersecurity systems

3. Internal theft

Internal theft is a big problem for businesses, with employees stealing equipment, inventory, cash and time. The good news is, there are lots of steps you can take to protect your business without your employee’s feeling like they aren’t trusted:

• Create clear policies for employees about the consequences of theft
• Hire reliable employees and carry out proper background checks
• Installing verified surveillance cameras, such as Sonitrol’s SonaVision
• Implementing accounting controls
• Tracking employee access to sensitive areas
• Maintaining a high level of morale (employees have less motivation to steal when they are happy at work)

A Helpful Guide to Employee Theft and How to Stop it

4. Embezzlement

Embezzlement is a type of internal theft when a person or business with access to funds misappropriates them for their own gain. Embezzlement can be hard to detect, but there are ways to reduce the risk of it happening. To protect your business against embezzlement:

• Require employees to submit expense reports with receipt
• Have internal controls in place
• Create a process for reconciling bank accounts and other financial account
• Implement a regular financial audits
• Have thorough inventory controls in place
• Identify potential warning signs (rewriting records to “look neater”, more stock shortages, errors in statements, customer complaints, etc) and watch for them

4. Robbery

Robberies are a common type of business crime, and can be particularly dangerous because it involves the criminal using force or the threat of it. To help prevent robberies, it’s important to make sure your business looks like it’s safe and secure:

• Install a verified alarm security solution
• Ensure the property is well-lit
• Use signs to advertise the security you have in place
• Discourage cash transaction
• Remove ATMs
• Make sure any back entrances are locked
• Install managed access control 
• Always have more than one person on site
• Don’t always do bank deposits at the same time
• Keep minimal cash on site
• Installing panic buttons

In the case of a robbery, you will want to have policies and procedures in place for you and your staff.

5. Shoplifting

Shoplifting is a common type of crime that businesses experience, with criminals trying to steal merchandise from stores. To reduce the risk of shoplifting, you can:

• Hire floor staff
• Train employees to spot shoplifting
• Install verified security cameras
• Implement proper layout/merchandise display
• Tag items with security tags
• Use exit and entrance locks
• Secure cash registers
• Seal entrances
• Establish signage warnings
• Post security signage
• Keep your store clean and organized
• Keep expensive items in display cases
• Lock inventory in secure rooms with monitored access

6. Vandalism

Vandalism is a crime in which someone intentionally damages or destroys property, such as graffiti or breaking windows. To help protect your business from vandalism, you can:

• Install motion-sensing lighting
• Install verified security alarm solution
• Keep your property in a well-cared-for condition
• Paint over graffiti and repair damage as soon as it is spotted
• Install shatterproof glass
• Minimize hiding space with proper landscaping

Crime is a serious problem for business owners, their customers and the community. It is important to understand the different types of crime and how to prevent them. By following the tips outlined, you can help to protect your business and make it a safer place.

Want to better protect your business from crime? Get a free Sonitrol Western Canada security plan today.