The Real Cost of Vandalism

Think that minor crimes, such as vandalism, aren’t a huge deal to your business?

Many business owners make the mistake of considering minor crimes to be a nuisance and not worth worrying about. After all, they reason, the costs of preventing these crimes will be greater than the cost of the crime itself.

This couldn’t be more wrong. The U.S. Small Business Administration estimates that the average cost of each case of vandalism to a small business is $3,370. This results in a loss of 13.5% of annual net profit for a small business making $500,000 a year in revenue, according to Dr. Martin Bressler, author of a study on business crimes and a professor at Houston Baptist University.

So the next time you’re thinking about what crime costs to your business, consider the real costs and, suddenly, that security camera surveillance system may seem like a lot better investment.

Common Business Security Myths

There are a lot of myths out there about business security solutions that leave many businesses vulnerable to fraud, robberies, and even employee theft. These common myths, that may seem harmless at first, can lead to major problems that are not easily repaired.

Here are some of the most common myths:

People Only Sue Big Companies with Fraudulent Claims

We’ve all heard the stories about people suing McDonalds because their coffee is too hot, or someone claiming to have broken their neck in a major retail outlet when really they are completely fine. But what about smaller companies, are they ever really sued with fraudulent claims?

This myth makes the claim that people only sue large businesses because that’s where the money is at. Unfortunately, the reality is that small and mid-sized businesses are also regularly targeted with fraudulent claims. The worst part is that these businesses are much more vulnerable because they can’t afford expensive lawyers and a large settlement could put them out of business.

Shoplifting Only Happens In Low Income Areas

This is a common and completely untrue myth that claims that people in richer areas are much less likely to be stolen from than in poorer areas. Unfortunately, the facts show that expensive stores in fancy shopping malls are just as likely to be stricken by shoplifters as anywhere else. Additionally, since the products they sell are so much more valuable than in lower end stores, there is an added incentive to steal.

Vendors Keep Perfect Records and Are Completely Honest

Many people don’t ever consider vendors a potential source of shrinkage when looking at where they are losing money. For some reason, while businesses are quick to blame customers or even employees, the activities of the vendors are seen as beyond suspicion.

The truth is that vendor fraud is estimated to account for 5.2% of overall shrinkage. It’s important that you watch your vendors carefully to prevent theft.

People Only Steal Inventory and Cash

The reality is that there are a lot of ways that people can harm your business without actually taking something physical.

Without proper business security systems and camera surveillance systems, customers can make false injury claims, employees can “under ring” sales or not work when they should be, and vendors can make errors that hurt your bottom line. When tracking what your company is losing from theft, be sure that you can measure all of the damage, not just the physical loss.

Using Camera Surveillance Systems to Stop Time Clock Fraud

Time clocks are an excellent way to keep track of employee hours and pay them appropriately. Unfortunately, some less than moral employees have found ways to game the system and work far fewer hours than they are paid for.

Not a week goes by that we don’t hear about some clever ploy to get paid for hours that were not actually worked.

In one recent case, two employees would work on alternating days and take turns signing each other in. The company, thinking they were getting two full employees each day, turned out to only be getting half of what they were paying for. It took a full 2 months (and a lot of wasted money) before a manager discovered the scheme and fired the pair!

If your company is using a time clock or other employee sign-in method, it’s important that you take an active role in eliminating this type of behavior. By maintaining a good visible security camera surveillance system, you can catch and punish bad behavior immediately and significantly cut down on employee theft.

Hopefully your employees are totally honest with their hours but it’s better to be safe than sorry.

Increase Your Business Security with These Simple Steps

No matter what type of business you have, keeping it secure and preventing criminal activity is vital both to the safety of your employees, and to the success of your company.

• Start with a plan. Setting goals and measureable objectives helps you understand your needs and track your security progress.

• Make security a priority. Business security systems should be a top priority for any business.

• Run background checks on employees before hiring them. Running a thorough background check on your employees helps prevent employee theft and avoid problems.

• Use visible security measures. People are less likely to engage in criminal activity if they know that they are being watched.

• Use surveillance cameras in ALL important areas. Recording all activities where cash or inventory is handled via a camera surveillance system can help to identify and prosecute thieves. Be sure to always keep your cameras well maintained as you don’t get second chances to stop criminals.

• Always prosecute criminal activity. By pressing charges against any criminal activity, no matter the cause or amount stolen, you send a clear message that you do not take theft lightly.

• Check your plan regularly. Regularly check the results of your security efforts and make alterations when you find things that are not working.