The Cayman Islands Chamber of Commerce has released its 2011 survey on economic crime and the effects it’s having on local businesses.
The report shows that there was only a slight increase in the percentage of businesses experiencing economic crime between 2006 and 2011. The 2006 report was the last time the Chamber did the survey.
Thirty-two per cent of the respondents stated that economic crime had a greater impact on them than the previous year; in 2006, that figure was 27 per cent. In 2011, 46 per cent of Chamber survey respondents expected the crime threat to increase over the next 3 years compared to 50 per cent in 2006.
In relation to property crime, 29.3 per cent of the 2011 respondents thought that physical property crime has had a greater impact on their business than in 2010.
Top concerns for businesses were theft and burglaries, which led to an increase in loss-prevention measures such as employing security guards, using CCTV cameras and alarms. Respondents also indicated that they would like to see tougher penalties for offenders and have additional money spent on prevention and law and social development.
Other findings from the 2011 survey include:
The main threats to Cayman businesses are from money laundering, embezzlement (asset misappropriation) and insolvency/insurance fraud.
Identity theft, bribery and corruption are also major concerns.
More than one-third of Cayman businesses indicated they were involved in at least one instance of economic crime in the past year.
Many businesses are still unaware of the extent of economic crime.
Only 42.1 per cent of boards had formal risk management training and 66.1 per cent of Cayman businesses fully train their staff in the same.
Only 70.6 per cent of Cayman businesses state that their current crime prevention systems are sufficient.
27.1 per cent of businesses are concerned about the potential damage to their business’ reputation; and 68.8 per cent are concerned with impact on their shareholder equity.
Just under half of local businesses expect the threat of economic crime to increase over the next three years.
Many businesses believe that the government, law enforcement and industry associations can do more to combat economic crime.
Few businesses are prepared to share information relating to economic crime incidents.
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