Concern Over Internal Fraud Among UK Small Businesses Rises 138% In Just One Year

A new report has revealed that ‘salami fraud’, where thieves steal minimal amounts of money that builds up over time, is on the increase

Concern Over Internal Fraud Among UK Small Businesses Rises 138% In Just One Year

Concerns over internal fraud among UK small businesses has risen 138% in the past 12 months, according to a report by Bottomline Technologies.

The UK Business Payments Barometer has revealed that while firms appear to be strengthening their defences – a majority remain in the dark over whether they are actual victims or not.

Indeed, 56% of financial decision makers surveyed admit they don’t know if they’ve been targeted by fraudsters or not – suggesting businesses still aren’t doing enough to detect if they are being swindled by their own employees.

It suggested that a rise in ‘salami fraud’, where thieves steal minimal amounts of money (even as low as 1p or 2p) that builds up over time, is a possible factor as to why small firm owners remain unsure about internal fraud.

Despite the vague sense of security among respondents, a significant number are clear on the impact of larger corprates also leaving them out of pocket – with 45% believing slow payer ethic is the greatest challenge to getting paid.

Ed Adshead-Grant, general manager of payments at Bottomline Technologies, said:

“It is important for organisations to have robust measures to prevent loss due to error and fraud, in particular, ensuring payments are being made to correct suppliers – not fraudsters.

“No-one can be complacent. Companies have a duty of care for customers and suppliers that they have the correct security measures to protect their payments and financial processes”

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