FRAUD UP BY 50% IN 2011

10 Jan, 2012

Reported fraud levels in the UK increased by a huge 50 per cent in 2011, rising to £2.09bn, according to accountancy group, BDO.

 

According to the group, more than a third of this is accounted for by tax fraud and although these figures are shocking in themselves, even more shocking is the finding that at least ten times more fraud than this went unreported, the BBC reports.

 

According to the BBC, the BDO head of fraud, Simon Bevan (pictured), said that firms need to take ‘a more proactive approach to tackling fraud’, especially in times of economic challenges, such as we are experiencing now.

 

Simon said: “The fact that reported fraud is up is worrying, but not at all surprising. When the economic climate is difficult there is even more focus on the bottom line and driving out unnecessary costs, so fraud is more likely to be uncovered,” Mr Bevan said.

 

“But organisations need to be much more proactive when it comes to preventing fraud. Too often risk teams are either too externally focused or fail to look at fraud from a financial point of view.”

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