Every year, values worth DKK 600 million disappear from Danish construction sites. That's according to the Danish Construction Association. According to one expert, the total amount could easily be much higher, pointing out that thieves do not only come from outside.

One explanation for why there may be far more thefts from construction sites than are reported to the police may be due to busyness and high deductibles. The thieves' profits could be far higher than the DKK 600 million that the Danish Construction Association, among others, points to. This is what former police officer and PET employee, Christian Pejtersen, has to say about the problem. Christian owns and runs the company yourCompany, which works to reduce fraud in small and medium-sized businesses - including fraud from construction sites.

Christian estimates that this amounts to a billion Danish kroner in waste - perhaps several billion kroner. "A lot goes missing from construction sites every day, and unfortunately, only a very small part of the waste is reported," he says. At the same time, he also points out that the fraud-prone companies instead hurry on when uninvited guests have visited.

Many companies in the construction industry have such high deductibles on their insurance policies that it can prevent them from reporting the thefts, and at the same time, they are extremely busy, which also often results in the cases not being reported. Many companies simply rush on to make some new money.

When the thief comes from the inside, internal shrinkage occurs

The statistics and the total amount of fraud are totally misleading when the thefts are not reported. Companies may run a greater risk than they think, says Christian Pejtersen, who was previously employed to reduce fraud in a major construction company.

He has also investigated nearly 50 cases of internal fraud for a number of companies. The term ”internal fraud” covers fraud and theft committed by employees themselves.

According to Christian, this is unfortunately something that happens on a large scale - both as simple theft of, for example, building materials and tools, but also as actual embezzlement from bosses and even directors. One example from 2019 is the revelation that a project manager and a project manager had jointly defrauded their employer of no less than DKK 5 million.

The problem lies in the culture

The many thefts - especially those committed by the company's own employees - are very much a cultural problem. Christian explains that it's partly because in some places there's a culture where it's seen as a kind of fringe benefit to occasionally take a few building materials or tools home.

In the long run, this can develop into major theft due to a lack of clear communication about what is acceptable. Companies need to be very clear about their attitude towards shrinkage," says Christian Pejtersen.

When it comes to actual embezzlement, committed by everyone from foremen and project managers to CEOs, the construction industry must also take action. Trust is good, but a little bit of control doesn't hurt.

The owner of yourCompany, for example, is baffled by the lack of clean criminal records among high-ranking employees who are negotiating multi-million dollar contracts. If companies started demanding it and combined it with better control measures, companies and the construction industry could go a long way, Christian believes.

When the thief comes from outside, external shrinkage occurs

Better control to combat theft ”from the outside”, where the thief cuts a hole in the fence or similar, could be done in the form of daytime access control, but also with professional labeling of machines and tools.

Much better logistics management is one of the common denominators to combat both internal and external shrinkage. Companies simply need to have better control of what materials and machinery are on site. Otherwise, companies don't stand a chance in hell of detecting fraud. And the discovery of fraud is essential for the police report to be initiated and completed.

An example where equipment worth DKK 40,000 disappeared from a construction site without anyone noticing is just one of many cases of fraud that have taken place in Denmark. yourCompany, in connection with another case, found the equipment with some Bandidos-related people in Valby. The owner of the equipment was very surprised and happy to get it back - but apparently he had no control over the logistics at his construction site. This makes it all too easy for the thieves and very difficult for the police.

GPS and tagging helps a lot

The fact that yourCompany was able to find the stolen goods in Valby in connection with the investigation is actually due to the fact that some other stolen goods at the same location were equipped with GPS transmitters. Without the GPS transmitters, the theft would probably never have been solved.

According to Christian, using GPS transmitters is extremely effective and he encourages the construction industry to put them on equipment, machinery and other valuable materials. In addition, it's also a good idea to tag your equipment with professional RFID, Bluetooth, or DNA techniques.

It's suddenly less interesting for thieves when signs and banners are used to draw attention to the fact that the equipment is labeled. It's much harder for thieves to sell labeled equipment, machinery and other materials. It's a preventative and relatively easy strategy that works really well in combination with motion sensors, active video surveillance and GPS tracking.

Investigation with the help of yourCompany

yourCompany helps many companies in Denmark with investigations of fraud, theft, internal matters and other tasks. If you suspect fraud or theft in your company or on your construction site, then contact us for a no-obligation chat about the possibilities.

For fraud prevention - and as an alternative to investigation - yourCompany also offers Outsourcing the security function. Get a part-time safety manager who can handle the aspects of your business that you don't always have the time or experience to take care of. This has a positive impact on both culture and finances.

We have helped many companies with exploration and outsourcing - and we can help you too.

Source: https://bygge-anlaegsavisen.dk/byggepladstyverier-er-omfattende-og-til-dels-branchens-egen-skyld