Fraud is Costing Small Businesses Nearly £8bn

13% of small and medium-sized firms are affected by company fraud, with 1% losing over £10,000 Company fraud affected 13% of the UK’s small and medium enterprises, costing 286,000 businesses a total of almost £8bn, according to information group Experian’s small and mid-sized business reputation index. While the average amount of money lost per business was £2,627; company fraud cost 3% of businesses up to £5,000, £1% between £5,000 and £10,000, and an additional 1% over £10,000. The findings made direct connections between employee numbers and fraud, with medium-sized firms (over nine staff members) experiencing higher fraud levels than micro-businesses (less than nine employees) – 27% compared to small firms’ 11%. Global information group Experian examined over 500 UK small business owne... »

Fraud is Costing Small Businesses £22bn a Year

Over 40% of small businesses have experienced fraud in the last year, according to research conducted by Sage Fraud costs small and mid-sized businesses an estimated £22bn a year, according to a new report published by Sage Pay. In the last 12 months, businesses lost an average of £4,515 each as many remain unprotected or oblivious to the fraud prevention they do have in place. The study confirmed that over 40% of small and mid-sized businesses had experienced fraud in the last year, however 39% still have no fraud protection established. Furthermore, of those that have purchased some type of protection, 21% don’t know what the prevention tools do and 42% don’t know if they comply with Payment Card Industry Data Security Standards(PCI DSS). The report listed several ways of reducing the ch... »

Rise in Fraud Threatens Small Business says KPMG

Fraud against UK businesses is on the rise ― that is the warning from KPMG after its research highlighted that the cost of fraud against commercial organisations exceeded £64 million in the first six months of this year. The report found that the cost of fraudulent activity against public and private sector organisations increased by a third in the first six months of 2011 on the same period in 2010. KPMG added that while big businesses bore the brunt of the cost of fraud against commercial organisations, it could also cripple small firms. “Although it’s just as prevalent in larger organisations, small and medium-sized businesses are more likely to suffer dire consequences as a result.” said KPMG UK forensic partner Hitesh Patel. “For small companies, fr... »

New Powers Protect Companies From Fraud

New Powers Protect Companies From Fraud

Small firms will be able to take action more swiftly if fraudsters hijack their records at Companies House, following new rules to come into effect on 1 October. New powers for the Registrar of Companies mean businesses that suspect their records have been tampered with can now contact Companies House directly to ensure the information is corrected, to stop fraudsters from entering into contracts using their company name. Up to now, firms have had to go through the courts to put a stop to third parties falsifying their records. The change is among the last new processes to be implemented as a result of the Companies Act 2006. “There has been a steady stream of companies being effectively hijacked, when fraudsters submit statutory forms to Companies House changing the names of company... »

Workplaces lax on Data Protection

Security–lax employers are leaving staff exposed to identity fraud by failing to protect their personal data at work, according to marketing firm CPP. A CPP survey of more than 1,000 UK employees found that 60% have been put at risk of fraud because of their employer’s poor data security policies. The research revealed that despite recent high–profile data losses by business and government, employers are still failing to shred sensitive documents and personal information, with some even placing this data on websites. CPP identity fraud expert Danny Harrison said the results were surprising, given that employers have a legal responsibility to protect their staff under the Data Protection Act. “Businesses could be at risk of hefty fines if they don’t comply, and... »