THE THREAT

In the UK fraud is estimated to cost £20 billion annually yet investigation and prosecution of fraud is not a government priority. The result of this has been that Fraud Squads within police forces have reduced over the past years with a number of forces having no dedicated fraud investigators. The North West is region, which has suffered more than most from a reduction of police fraud investigative capacity.

The Government has proposed that there should be a central point for the reporting of fraud in England and Wales. It is planned that from summer 2009 The City of London Police will be the force to which reports of fraud are made. It is not clear yet what criteria there will be for reporting such offences but the plans to date are not encouraging for North West businesses.

Company Hi-Jacking is on the increase with estimates that last year this type of fraud alone cost UK companies £1.34 billion. The fast moving pace of computer technology means that businesses struggle to keep up with the threat posed by fraudsters who hack into their systems and steal not only business data but personal details of management and company officers.

Fraud is a real threat to any business. The threat is not only from external sources but is just as likely to be from an internal source.

  1. External Threats
  2. Internal Threats