Corporate fraud is on the rise in the UK, and it costs companies millions of pounds every year. This is a troubling trend, as it can devastating impact businesses. Fraud can take many forms, from bogus invoicing to employee theft. Fortunately, there are steps that you can take to protect your business from fraud.
In light of this, businesses need to take steps to protect themselves from fraud. This includes employing domain monitoring services, installing crime prevention measures, such as CCTV and security alarms, and ensuring that all staff are aware of the signs of fraud and how to report it.
By being aware of the dangers posed by corporate fraud, you can take steps to safeguard your company’s finances and reputation.
The State of Corporate Fraud in the UK
As the COVID-19 pandemic continues to cause concern for businesses worldwide, a new report has found that corporate fraud is rising in the UK. According to the 2021 CVS (Crime Victimisation Survey), 38% of the Wholesale and Retail business premises had been victims of crime between April 2020. This is comparable to the 2018 prevalence rate (40%) but lower than in 2012 (53%).
The most common crime type, affecting 27% of businesses, was theft, followed by assaults or threats (12%) and burglary (11%). Theft by a client was the most prevalent form of theft (as in previous years) and the most frequently reported of all crime types, affecting 11% of businesses that experienced this sort of crime with food and groceries being the most frequently stolen items (39% of businesses, up from 33%).
According to respondents, the COVID-19 pandemic has caused an increase in levels of violence and assaults at their sites, with 46% believing that such incidents had risen, 42% thinking they remained the same, and 12% believing they had decreased.
Residents at places where the criminal activity occurred were most concerned about the following common consequences: financial loss (68%), stolen goods and services (60%), and increased personnel time spent dealing with the situation (46%).
The Most Common Types of Corporate Fraud
If you are a business owner, it is important to be aware of fraud risks and take steps to protect your business. Corporate fraud is on the rise in the UK, so it is important to be vigilant.
According to a recent poll, eight in ten (84%) mid-sized businesses were affected by fraud last year. The most common type of fraud experienced was ‘phishing,’ Businesses are contacted by email, text, or telephone and asked to provide confidential information, such as passwords or bank details.
There are many frauds, including ‘false invoicing’ (when businesses are fooled into paying for goods or services that have not been delivered) and ‘cybercrime,’ in which companies’ computer systems are hacked.
The effects of fraud may be severe, with firms reporting financial losses, reputation damage, and even business failure. Over a quarter (27%) of organizations have implemented crime prevention methods in response to the pandemic’s influence on crime rates.
How Businesses Can React Effectively
There are steps that businesses can take to protect themselves from fraud, including being aware of the types of fraud that are common and having systems and processes in place to prevent and detect fraudulent activity.
Some simple steps that businesses can take to protect themselves from fraud are:
- Provide training sessions for employees on learning how to react to cybersecurity breaches
- Have systems and processes to prevent and detect fraudulent activity, requiring multiple approvals for invoices before they are paid.
- Monitor your bank accounts and credit card statements for unusual activity.
- Be cautious about giving anyone confidential information, such as passwords or bank account details.
Fraud is a serious problem for businesses in the UK, but there are steps that businesses can take to protect themselves.’
By being aware of the common fraud and having systems and processes to prevent and detect fraudulent activity, businesses can minimize the risk of becoming victims of fraud.