Expert Investigations

In today’s fast-paced and increasingly digital world, the risk of loss within commercial and industrial environments remains a constant and evolving concern. Business leaders and security professionals must recognise the scale and breadth of these risks, which typically fall into three broad categories: external fraud and cyber-attacks, physical theft and criminal damage, and internal theft and fraud by employees.

External Threats: Cyber Attacks and Financial Fraud

One of the most significant and growing threats to commercial operations comes from external cyber actors and fraudsters. These individuals or organised groups often target businesses for direct financial gain through tactics such as false invoicing, phishing attacks, and supplier frauds. A common strategy includes impersonating vendors to redirect legitimate payments to fraudulent accounts.

More alarmingly, these attackers often seek access to sensitive data, including personal identification information (PII), financial records, and trade secrets. Once compromised, this data can be used in a multitude of other fraud schemes or sold on to criminal networks. In addition to financial loss, such breaches can lead to reputational damage, regulatory fines, and erosion of customer trust.

Physical Theft and Criminal Damage

While digital threats are on the rise, traditional crimes such as burglary, walk-in theft, and vandalism still pose serious risks to businesses. In these scenarios, the immediate losses may include valuable assets like tools, IT equipment, and vehicles. However, the long-term impact—particularly the downtime caused by such incidents—can be even more costly. Disruption to operations results in lost productivity and missed opportunities.

Criminal damage, including arson or acts of sabotage by protest groups, presents another layer of complexity. While the financial cost of a smashed window might be minimal, large-scale damage can have catastrophic consequences, particularly in critical infrastructure industries such as energy or waste management. For example, a recent risk assessment I conducted at a power incinerator revealed that a targeted protest action could lead to devastating operational and environmental outcomes.

This kind of threat appears to be more prevalent in today’s society, driven by increased activism and political unrest. The consequences can be far-reaching, especially for industries perceived as environmentally or ethically controversial.

Insider Threats: Employee Theft and Internal Fraud

Perhaps the most underestimated risk is that which comes from within. Over the past 25 years, I have investigated theft and fraud across a wide range of commercial, industrial, and manufacturing businesses—including sectors such as automotive, aviation, healthcare, wholesale, and food production.

Internal offences are committed at all levels of a company’s hierarchy—from junior staff to board members. When multiple employees or senior executives are involved, the fraud typically takes longer to detect and results in higher financial losses. These cases often go unnoticed for extended periods, particularly when internal controls are weak or when a culture of accountability is lacking.

Conclusion

The risk of loss in commercial and industrial settings is multifaceted and ever-present. Businesses must adopt a proactive approach to security—both physical and digital—and foster a culture of vigilance and transparency. Understanding these risks is the first step in mitigating them, ensuring not only the protection of assets but also the long-term sustainability and reputation of the organisation. For more information, get in touch with the experts.