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Expert warns of high cash turnover risk

Johannesburg - The theft of the tote takings at one of the Durban July hospitality marquees this past weekend follows the recent cash heist that took place just two months ago at the FNB Stadium where thieves engineered their way into the stadium strong room on the night after Justin Bieber and Bon Jovi performed.

With no major developments or arrests in the investigation, both incidents remain as a stark warning bell for businesses with high cash turnover to review how they manage their risk.

Whilst investigations are underway to determine the precise financial loss in each case, the skill and frequency of these thefts are becoming worryingly apparent.   

Santam’s head of commercial underwriting, Shehnaz Somers, said: "Highly secured environments like these are still exposed to a significant number of risks which must be taken into account, managed and have insurance.

“We work together with our clients to identify their risk exposure by surveying their businesses where necessary.

“We give them advise on risk mitigation which may include risk transfer via an insurance policy to make sure that they are fully covered and advising them on other precautions they may take,” said Somers.

Foam shields

Police crime statistics show incidents of cash-in-transit heists rose from 192 reported cases in 2003-4, to 467 cases in 2006-7.

The figure dropped to 291 cases in 2010-11 and then again in 2011-12 with 182 reported cases, with incidents primarily occurring in Gauteng, followed by KwaZulu-Natal.

Despite the drop in cases, Somers says the recent spate of cash-in-transit robberies are worrying: "The methods used by thieves are becoming increasingly complex and companies have sought new ways to combat this type of crime.”

One of the deterrents include the use of a cash staining dye within the cash box, which is a highly corrosive ink originally designed to destroy the cash.

It is predominantly used to indelibly mark the cash and make it difficult to use.

“More recently, we’ve seen cash-in-transit companies such as G4S solutions announce robber-proof foam shields for their vans as a means of mitigating their risk,” adds Somers.

She mentions that security will always be a challenge for any cash business: "Companies must be aware of the risks to which they are exposed.

Premises

"By not having correct systems in place for their premises, money and personnel, and if they have inadequate insurance cover, the business owner could face ruin.”

Some safety measures high cash turnover businesses may consider in order to reduce or prevent crime include the following:

Security is priority

Business owners should make sure that security measures, such as security lights, CCTV monitoring and alarms are in place, and that they are clearly visible and activated on the premises.  As additional  security measures, business owners can install burglar bars, erect a security fence or wall around the premises, hire a reputable security company or start a community night watch programme with other local businesses.

Alarm systems

Insurance cover for theft requires that an alarm be installed in the building. To ensure insurance cover for theft, a business alarm must be switched on and be in good working order after business hours.

Cash on the premises

If your business has a cash register, remove all the money at night and leave the register open to deter break-ins. Always ensure that you bank as much of your cash as possible.

No routine

Vary the times of deliveries or when you do your banking. Sticking to the same schedule can make you an easy target for robbery.

Insurance

Santam’s Money Cover policy provides insurance for loss of, or damage to money on your premises, or while in transit to and from the bank.  Business owners must remember to review and update their insurance policies on a regular basis.

Santam also advises customers that have high cash-turnover businesses to ensure that safes and strong rooms are SABS approved and that they have the appropriate security level for the amount of cover required; and to only use reputable money transit agencies.  Contracts with these agencies should state clearly where responsibilities lie.

 - Fin24




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