Business Fraud On the Rise

Business fraud is on the rise and has employers and business owners across the U.K wondering whether it is to do with employee dissatisfaction, poor HR management or improper financial management.

BDO Stoy Hayward reported in a recent research that business fraud has gone up by 42% as compared to the same period last year. It also found that one of main reason for this trend is not poor management or dissatisfied employees but because the fear and risk of prosecution is low.

“When it comes to frauds against businesses, if you are discovered there is only a small chance of being prosecuted. When a fraud is discovered, all but the very largest are not a priority for the police given their limited resources, “says Simon Bewan, the national head of BDO Stoy Hayward.

Less than 15% of business frauds are prosecuted simply because companies want to focus on getting back the money and protecting their company image and reputation.

Most often business fraud is committed by employees in a position of trust with access to company funds and crucial financial information. Interestingly the research also showed that the larger the amount that was stolen the lower is the chances of prosecution.

2 Responses to “Business Fraud On the Rise”

1. Roger
   http://www.xwave.co.uk
   
   Said on August 14th, 2007 at 9:50 am

   These details show why along with fraudsters courts should prosecute banks too for not implementing fraud deterring ID KEY system.

   Banks have option to reduce card, cheque, mail order and identity fraud to VIRTUALLY ZERO permanently simply by implementing ID KEY system described on website www.xwave.co.uk

   Fake documents have made signature system unreliable but ID stickers will enable us to personalise them like passports to make these signatures reliable again.

   Skimmers and pin-hole cameras have made ATM transactions unreliable but use of Card Key Code stored on ID KEY required to activate ATMs will make ATM transactions reliable again. This system will make use of stolen and skimmed cards meaningless.

   This shows that if banks implement ID KEY system we will not have to prosecute organisations for failing to protect our personal and card details since these details will not get misused.

2. Julian Evans
   http://www.id-protect.co.uk
   
   Said on August 14th, 2007 at 2:26 pm

   About ID THEFT PROTECT
   Our mission is to provide consumers (and SME’s) with clear, objective information about the dangers of ID theft and how consumers, can protect themselves.

   We provide product reviews, up-to-date information on the latest scams, identity fraud statistics, a useful find a solution search tool, an ID theft quiz to establish your risk rating and the unique step-by-step programme to do all that is possible to keep your identity out of the hands of fraudsters.

   I’d be interested to hear thoughts on business ID fraud. Roger, your comments appear very interesting to us as does your site.

   Julian

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