Action is needed to tackle the ‘hidden threat’ of crime against businesses damaging growth, according to a new report from the British Chambers of Commerce. It found that theft, fraud, scams and cyber attacks are increasingly affecting firms of all sizes and across all sectors.

BCC research carried out last Autumn shows that 42% of UK businesses experienced some form of crime in the past year. The data reveals larger firms are more vulnerable, increasing from 32% among micro-businesses to 58% among firms employing more than 250 people. The manufacturing sector is the hardest hit, with 50% of firms reporting business crime.

The data suggests that cyber crime and fraud are also becoming increasingly widespread, with 21% of firms having experienced cyber attacks in the past year, while 20% reported fraud or scams.

The report concludes that business crime is a ‘structural constraint’ and ‘measurable brake’ on UK economic performance. The BCC is calling for a number of urgent steps to address the problems, including a national business crime strategic assessment to better understand the economic harm caused by crime.

It also suggests the creation of a single cyber-attack reporting system for firms to reduce admin while improving protection, as well as the creation of regional business crime hubs, bringing together police and business crime reduction partnerships.

Ellis Shelton, policy manager at the British Chambers of Commerce, said: “Crime against business is now a serious barrier to growth and investment across the UK. Our research shows many firms are dealing with rising levels of theft, fraud and cyber-attacks. Bosses are being forced to divert crucial time and money to tackling this anchor on growth.

“Crime is becoming more sophisticated and there needs to be a step change in the support businesses can count on. Reducing crime against business isn’t just about protecting balance sheets. It’s about removing structural barriers to growth.”

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