BusinessCompany NewsFraud costs to UK business soar above £705m

Fraud costs to UK business soar above £705m

Fraud costs to UK business in the first six months of the year soared by more than 74% to more than £705m

Fraud cost to UK businesses soared by 74% in the last six months on the same
period last year, to more than £705m as the credit crunch took its toll,
according to a
BDO
Stoy Hayward
report released today.

Finance and insurance sectors were worst hit, reporting fraud worth £636m –
more than 90% of total reported fraud and up 15-fold on the first six months of
2007, the Financial Times reports.

The biggest threat to business came from internally and management fraud
accounts for 46% of the total but the problem could get bigger still, the report
warned.

‘What is really scary is that these figures don’t even include losses that
may have been incurred by rogue traders,’ Simon Bevan, BDO Stoy Hayward head of
fraud services said. ‘When you add in the fraud that’s not yet been uncovered,
or which businesses have discovered but don’t wish to expose, the real cost to
UK industry could be much, much higher.’

Further reading:

Police seize thousands from suspect company

Greencore sacks senior managers over accounting fraud

Read
the Financial Times story

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