Johannesburg - As South Africans wind down for the end of the year, criminals are ratcheting up their activity and consumer-facing industries can expect to see a spike in robberies of between 20 percent and 30 percent these holidays.
Cash Connect CEO Richard Phillips notes there is an increase in cash in circulation during this period as many people are paid bonuses. “It’s a free-for-all at this time of year.”
Phillips says, based on historical trends, businesses that carry a lot of cash can expect to see a spike of anywhere between 20 percent and 30 percent in armed robberies and burglaries. Retailers have been under pressure as consumers feel the pinch and the weak rand has seen some having to absorb price increases, pressuring their margins.
This sector is not the only one that will suffer, as Sean Pretorius, COO at Risk Benefits Solutions notes the insurance industry tends to witness a spike in claims over this period as people fall prey to petty crimes and burglary as premises are left unattended as people go on holiday, or from general negligent behaviour.
“We find that clients go into ‘holiday mode’ over the festive season, and become less aware of possible petty crimes and burglaries. This is however the time of year when people need to be extra careful at all times due to the rise in such activity,” says Pretorius.
Phillips says there is about R120 billion in cash in circulation at any given time, based on figures provided by the South African Reserve Bank, and the amount of cash and consumers’ reluctance to move to electronic payments makes this a huge target.
He explains some 94 percent of all transactions in SA are done via cash, compared to the global volume, which is at 84 percent of all deals done in physical currency, according to a 2014 MasterCard survey.
This, he says, makes cash and attractive target and “the bandits are running riot”.
Phillips notes robbers have moved away from targeting banks and ATMs as technology to secure that cash has improved.
Currently, he says, there are about 52 armed robberies a day and about 106 burglaries a day on average, based on South African Police Service figures.
Many of these are carried out by professional groups that are syndicated, work in teams of around 15 and use inside information to work out when the best time to strike is, says Phillips.
He notes the cost to the business is “huge” because it will take an outlet about 6 months to get turnover to the same place as it was before the intrusion because consumers are too scared to return.
In addition, he says, staff often quit because they are scared. These issues carry more cost weight than the value of the lost money, which is generally insured, says Phillips.
Yet, he says, many companies have not turned to the latest tech when it comes to cash deposit boxes because they do not understand the cost-saving and safety benefits.
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