Nicola Sharp of corporate crime solicitors Rahman Ravelli emphasises the importance of companies having preventative measures that are fit for purpose.
Fraud among businesses is on the rise, according to a new report.
The 2020 Treasury Fraud and Controls Survey by Bottomline Technologies claims that 60% of organisations have experienced some form of fraud, which it says represents a 50% increase in three years.
The report argues that the rise is due to the increasing sophistication of those looking to perpetrate fraud, who are automating and scaling their attacks using ransomware, business email compromise (BEC) and system-level takeover fraud. While the report has found that businesses are now spending more on countermeasures to tackle the problem, it indicates that bigger organisations are the ones that are most vulnerable to fraud. Read more about: Business Crime Defence.
The report concludes that fraud prevention efforts have to outpace the increasingly sophisticated efforts of those looking to commit fraud. It argues that the risk of payment fraud risk could be reduced by promoting defence against fraud as part of a company's culture; with each step of the payment process being subject to preventative measures.
It is an argument that has merit as the increase of more complex fraud techniques places new challenges on companies. They have to ensure that every aspect of their internal compliance and due diligence procedures are up to date, fit for purpose and continually monitored in order to reduce the risk.
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