Fraud and financial crime are increasingly seen as major threats by UK businesses, with rising concern among decision-makers.
- A recent survey revealed that 58% of key decision-makers in large UK businesses acknowledge the serious threat posed by fraud, up from 49% in 2023.
- Fraud now constitutes about 40% of all crime in England and Wales, necessitating heightened vigilance from companies.
- The shift to hybrid working models has heightened concern about susceptibility to fraud and cyber-attacks among half of the surveyed decision-makers.
- Nevertheless, there is a positive trend, with 77% of surveyed leaders increasing budgets for staff training against fraud.
In recent findings, a survey conducted by a leading fraud prevention organization, Cifas, highlights the escalating concern among UK business leaders regarding fraud and financial crime. Currently, 58% of decision-makers in large businesses perceive these as significant threats, a noticeable increase from 49% the previous year. This statistic underscores the growing unease within corporate circles, as fraud now accounts for nearly 40% of all crime in England and Wales.
The rise in fraudulent activity presents various risks, from employee targeting and insider threats to supplier fraud and cyber-attacks. These challenges demand that companies reevaluate their security measures to protect organizational interests. The survey, encompassing 500 leaders responsible for staff training in organizations with over 1,000 employees, reflects a pressing need to safeguard employees from becoming fraud victims.
The transition to hybrid working models has been identified as a substantial factor influencing concerns over fraud. Approximately half of the respondents reported increased apprehension about potential attacks after such operational changes. This shift necessitates a reexamination of cyber-security protocols to mitigate emerging risks associated with more flexible working arrangements.
Encouragingly, a promising development is the commitment of these organizations to bolster their defenses against fraud. About 77% of the decision-makers have expanded their budgets for staff training, indicating an emphasis on enhancing fraud prevention capabilities. This investment in training is intended to empower employees to identify and address fraudulent activities more effectively, thereby contributing to a robust defense strategy.
Despite the proactive measures being adopted, a paradox exists where 40% of respondents view fraud as a non-issue. This perception could potentially undermine efforts to establish comprehensive fraud-prevention systems. Leaders like Mike Haley, CEO of Cifas, stress the importance of maintaining vigilance and investing in protective measures to safeguard business operations and customer interests.
Rachael Tiffen, Director of Learning at Cifas, emphasized the critical role of workforce upskilling in fraud prevention. She believes that equipping employees with the knowledge to detect and respond to fraudulent actions is essential. This approach not only addresses present concerns but also strengthens future prevention efforts, highlighting the value of ongoing education in combating financial crime.
As businesses face increasing fraud risks, prioritizing preventive measures and employee training remains crucial for safeguarding organizational integrity.
