The latest bi-annual Fraud Barometer shows the value of alleged fraud in the UK surpassed the £1 billion barrier in 2016 for the first time since 2011.
According to the report, there were seven super cases in the year, which have caused the average fraud loss to double to £5.2 million. Super cases are defined as cases where the value of alleged fraud is £50 million or more. 2016 also saw the largest cyber fraud since 2008, leading to losses of £113 million.
Fraud against businesses increased significantly in 2016 with internal fraud committed by employees and management the most common type of fraud to hit businesses.
Effective management accounts and company audits
When putting processes in place for effective business administration, sound management accounts will enable better control of your financial situation and awareness of the business in real time. This can be effective not only in detecting and countering fraud, but also in enhancing planning for the peaks and troughs. In turn, whilst many companies do not need an audit due to rising thresholds, an audit can give comfort to business owners and act as a fraud deterrent.
At Beavis Morgan, we work with our clients to put processes in place which make it easier to run your business, reduce risk and maintain effective management of your company’s working capital.