Security specialists Inteltrain have urged organisations to do more to combat fraud in the light of a report that shows it rising at an alarming rate.
According to The Annual Fraud Indicator 2016, the annual cost of fraud in the UK could be as high as £193bn, dwarfing previous estimates produced by the UK Government which put the figure at about £50bn in 2013. Inteltrain, which works with a range of organisations, including specialist fraud detection teams, to help them detect and prevent dishonesty, says the findings serve as a call to action.
Overseen by the UK Fraud Costs Measurement Committee, supported by Experian and PKF Littlejohn and based on research by the University of Portsmouth’s Centre for Counter Fraud Studies, the report reveals that fraud could account for an average of more than £3,900 per adult in the UK with losses taking place at £6,000 per second. The private sector has been under the biggest attack, with SMEs and large enterprises losing an estimated £144bn a year. By far the biggest source of fraud relates to procurement at £127bn, including using false invoices or awarding contracts in exchange for bribes.
Other types of fraud identified include:
- Payroll fraud, which accounts for £12bn per year – 8 per cent of the total cost of fraud to the private sector
- The charity or ‘third sector’ with fraud of £2bn per year
- Mortgage lending, which loses £1.3bn annually
- Insurance sector fraud, costing £1.3bn a year
- Public sector fraud of £37.8bn, equivalent to 5.5 per cent of the £694bn spent annually. Central government bears most of the cost at £30bn per year with procurement fraud a major source.
Inteltrain provides Intelligence Analysis programmes which allow organisations to detect and prevent fraud and Nick Atkinson, Commercial Manager, said: “The findings in the Annual Fraud Indicator 2016 are disturbing.
“Fraud is having a massive impact and it is growing rapidly so organisations cannot afford to ignore the problem, especially since many acts of dishonesty can be prevented. “The report is a call to action and, encouragingly, there are practical and highly effective things that businesses can do to protect themselves from fraudulent activity. “The key to combating fraud is being able to detect it and the skills and techniques that we teach empower those working in fraud prevention roles to become better equipped.”
You can find out more about Inteltrain and its products at http://www.inteltrain.com/