Firms 'must do more to combat fraud'

26 January 2009



Businesses must be better prepared to prevent and tackle fraud, the UK's fraud prevention service warns.

CIFAS states that there has been an "unsettling" 16 per cent growth in fraud in the UK in the past year, a figure which may prompt firms to bolster their security and take legal advice on what they are required to do by law to prevent data loss or theft.

Its figures reveal a "shocking surge" of 207 per cent in facility takeover frauds, where a third party gains access to the account of an innocent victim, and a 69 per cent increase in misuse of facility fraud, which covers activities such as paying in false cheques.

Peter Hurst, chief executive of CIFAS, warns that fraudsters are adapting their methods - another factor which may encourage companies to take legal advice on protecting their consumers.

"Organisations must acknowledge this by arming themselves against the onslaught," he adds.

Firms should concentrate their resources on fraud teams, Mr Hurst continues.

Litigation and dispute resolution partner Matthew Brandis comments: "As the economy tightens, decent people can be tempted into fraud. Businesses must play their part by minimising temptation and moving quickly to investigate where suspicions arise.

"Often, recoveries depend on speed of reaction to warning signs. We are standing by to play our part."

Posted by Matthew Brandis

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