Over a third of businesses in Ireland has been the target of criminal activity over the past 12 months, a survey by the Irish Small and Medium Enterprises Association (ISME) has revealed.

The survey of over 1,500 businesses found that the level of crime is down on the previous year (when 45 per cent of companies were effected), however there has been an increase in the actual cost of criminal activity, which is costing the business community almost €1.5 billion in direct costs.

The incidence of crime in Connacht is down from last year's figure of 50 per cent but this year's rate of 38 per cent is higher than in the regions of Ulster (20 per cent), Munster (26 per cent) and Dublin City (32 per cent) and is only lower than in Dublin County (43 per cent) and Leinster (48 per cent).

Crime against retailers is a particular problem, with 44 per cent reporting that some form of criminal activity had affected them in the last year. This compares to 40 per cent for manufacturing companies, 39 per cent construction and 29 per cent for both service and distribution companies.

'Theft by outsiders' reported by 38 per cent of respondents was the most common form of crime inflicted on SMEs followed by 'damage to vehicle' at 25 per cent and vandalism on 24 per cent. A significant 22 per cent of businesses confirmed 'theft by members of staff' as being a particular problem.

The overall direct cost of criminal activity on SMEs is estimated at €440 million per annum or €5,305 per company. This figure increases dramatically when added to the €1.02 billion or €4,295 spent per company on crime prevention methods including alarms, CCTV and security guards. The indirect costs of crime cannot be underestimated, as 21 per cent of SMEs who suffered from criminal activity identified disruption to trading as being a particular problem, with 13 per cent indicating poor staff morale. Only seven per cent of business owners are confident that criminals would be apprehended.

The use of alarms remains the primary weapon for crime prevention, with 70 per cent of companies having an alarm on their premises. This was followed by 50 per cent who use alarm response and 44 per cent using access control and CCTV. Computer related and e-crime continues to be problematic, with 28 per cent of companies experiencing computer-related crime over the past year.

The increase in sophisticated scams is also highlighted in the report, with 32 per cent of companies experiencing 'phishing,' while a significant one in ten companies has experienced credit card fraud while doing transactions over the Internet. A massive 86 per cent felt that the judicial system is ineffective in adequately deterring repeat criminal activity, with only two per cent who felt it was effective.

When questioned on what measures should be taken to prevent crime, 86 per cent of SMEs indicated that they would be in favour of a significant increase in Garda numbers and presence on the streets. Seventy-nine per cent would encourage tougher sentencing by the courts, 67 per cent would like an increase in CCTV in town centres, while 35 per cent are in favour of more emphasis on rehabilitation of criminals.

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