Businesses warned of crime risks

Businesses are warned as legitimate credit becomes less available

The economic downturn could be putting small firms in Scotland at greater risk of falling victim to organised business crime, police have warned.

The Scottish Crime and Drug Enforcement Agency (SCDEA) said companies could be exploited by fraudsters as legitimate credit becomes less readily available.

The agency is hosting a conference in January where it will advise business leaders on how to spot the dangers.

It is estimated organised crime costs the Scottish economy £2bn each year.

Det Ch Insp Alan Cunningham told BBC Radio Scotland's The Business programme that firms could be exposed to opportunist criminals in the current financial climate.

He said: "Economic difficulty fosters uncertainty and can lend itself to risks being taken by business to maintain profitability that may not otherwise be taken, and organised criminals will look for these risks and ways of exploiting them.

"An example could be the availability of credit in the legitimate economy. If financial institutions and lenders are reducing the amount of credit that they are willing to offer, then business, particularly small to medium sized businesses, could be tempted to look elsewhere for sources of credit.

"That could be where organised criminals will make an approach. And once that relationship is entered into, the cost for the business is going to be particularly high. "

Vetting staff

The "Risky Business" event on 28 January will be co-hosted by the Scottish Business Crime Centre (SBCC).

The SCDEA said it was the first time it had approached the business community to help prevent firms falling victim to organised criminals.

It will offer advice on issues such as fraud, embezzlement, theft and extortion.

Business leaders get advice on issues such as fraud, embezzlement, theft and extortion. They will also be told how to vet staff and manage information sharing within organisations.

Det Ch Insp Cunningham said often business crime is facilitated by insiders.

He said: "Criminals need businesses to operate, the specialist knowledge that business sectors have to allow them to go about their business themselves - so that would involve the lawyers, accountants, financial specialists for example that can insulate organised criminals and remove them from association with their own illegal activity.

"Some of that is done by a small number of unscrupulous professionals, unfortunately who willingly assist organised criminals. "

The conference will be held at the MacDonald Houston House Hotel, West Lothian, and is open to senior business professionals.