Economic Crime Survey: Retail and Consumer Industry Supplement

The Retail and Consumer Industry Supplement highlights:

•          R&C is one of the hardest-hit sectors, with a higher rate of economic crime - 57% - and more than double the mean number of incidents compared to all industry sectors (21.4 vs. 8.4 across all industries)

•          Retailers face a two-fold threat from "shrinkage" and other types of economic crime; companies should be wary of focusing solely on controlling shrinkage and neglecting measures to combat other types of economic crime

•          The increasing importance of the internet as a retail channel includes corresponding rising risks for some types of economic crime

•          Consumer goods manufacturers are increasingly outsourcing production facilities, and are also facing high rates of intellectual property (IP) infringement, such as product counterfeiting. While direct costs are substantial, potential damage to the brand may be even more detrimental in the long run.

•          Dramatic pressures and significant levels of change in the industry in 2007/2008 could present increased risk factors for even higher levels of economic crime in the near future. Although 57% of respondents reported economic crime over the past two years, just 14% are expecting further incidents in the next two years.