Big money fraud has risen to over £1.1 billion following a staggering 1,266 per cent increase in cybercrime.
This figure is comprised mostly of ‘super-cases’ with just seven of these complex fraud cases totalling £900m of fraud.
In actual fact, the number of cases of fraud to reach UK courts with losses of £100,000 or more has decreased.
This is according to a studied carried out by accountancy firm, KPMG.
Surprisingly, the average fraud case has more than doubled in value from £2.4m to £5.2m and despite businesses recognising cyber-attacks as a high-impact risk, many still operate on the basis that they won’t be victims of fraud.
Now it is time for all businesses to be vigilant and take positive steps to protect themselves. Below are the necessary steps:
- Robust infrastructures should be set in place to stop fraud;
- Internal procedures should be stress-tested;
- Fraud audits should be carried out;
- If potential fraud is identified, action should be taken swiftly.
According to our research, which surveyed 500 SME business managers and owners, it takes an average of almost six weeks to identify fraud.
Fraud impacts UK firms by reducing or wiping out profits, restricting cash flow, potential negative impact on lending arrangements with financial institutions, not to mention reputational damage within the wider marketplace if the fraud becomes known.
At Slater and Gordon Lawyers we can help your business if you have been the victim of fraud by conducting an investigation with you and any employees and taking civil legal action against the fraudsters to help recover any monies or other assets which may have been stolen.
Clare Durkin is a dispute resolution lawyer based in the Manchester office.