BusinessCompany NewsFraud costs double for UK plc

Fraud costs double for UK plc

Corruption and bribery are the fastest-growing forms of fraud in the UK, doubling the average cost to affected businesses to £1.75m

The newly released
2007
Global Economic Crime Survey
by PricewaterhouseCoopers shows UK businesses
have failed to learn anything over the past two years since a damning
OECD
report exposed a raft of potential loopholes for bribery and corruption in the
UK.

The PwC report found corruption and bribery was the fastest-growing form of
UK fraud over the past two years, doubling the average cost to UK businesses
affected by fraud from £0.8m in 2005, to £1.75m in 2007. Not only was fraud more
costly, but the UK has some of the highest incident rates in the world. UK
businesses, suffering fraud were typically affected 15 times in the 24-month
period – twice the global average and three times more than the average in
Western Europe.

Despite this, UK plc appears to be in denial about the scale of the economic
crime – only 17% of companies surveyed believed they would become a victim, when
half, at 48%, had been affected. This denial is partly the reason why few fraud
cases end up in court and on public record.

The trend towards a more globalised market is a factor in the increased
threat of fraud. Almost half, at 49%, of UK fraud cases involved an overseas
party. The possible impact of economic crime is considered a significant factor
in about half of investment decisions and 90% of UK respondents cited corruption
as their major concern when doing business with E7 countries.

Further reading:
Bribery loopholes blight UK accounting
Criminal finance ‘can be beaten by accountants’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor