Business fraud is on the rise and has employers and business owners across the U.K wondering whether it is to do with employee dissatisfaction, poor HR management or improper financial management.
BDO Stoy Hayward reported in a recent research that business fraud has gone up by 42% as compared to the same period last year. It also found that one of main reason for this trend is not poor management or dissatisfied employees but because the fear and risk of prosecution is low.
“When it comes to frauds against businesses, if you are discovered there is only a small chance of being prosecuted. When a fraud is discovered, all but the very largest are not a priority for the police given their limited resources, “says Simon Bewan, the national head of BDO Stoy Hayward.
Less than 15% of business frauds are prosecuted simply because companies want to focus on getting back the money and protecting their company image and reputation.
Most often business fraud is committed by employees in a position of trust with access to company funds and crucial financial information. Interestingly the research also showed that the larger the amount that was stolen the lower is the chances of prosecution.