Significant rise in number of businesses falling victim to fraud and cybercrime

The number of UK businesses affected by corporate fraud and cybercrime has risen by 16% over the past year, according to a new report published by risk management company Kroll.

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90% of firms who were interviewed by Kroll said that they had experienced an incident of cybercrime over the past 12 months.

Theft of physical assets and the misappropriation of funds were found to be the most common types of fraud.

Businesses also reported that the majority of those carrying out fraudulent activities came from inside the company.

The report also suggested that the UK has the second highest rate of cyber incidents: 92% of companies interviewed revealed that they had experienced a cyber-attack or loss of information over the past year.

Tommy Helsby, Co-Chairman of Investigations and Disputes at Kroll, commented: ‘It’s becoming an increasingly risky world, with the largest ever proportion of companies reporting fraud and similarly high levels of cyber and security breaches.

‘The impact of such incidents is significant, with punitive effects on company revenues, business continuity, corporate reputation, customer satisfaction and employee morale.

‘With fraud, cyber and security incidents becoming the new normal for companies all over the world, it’s clear that organisations need to have systemic processes in place to prevent, detect and respond to these risks if they are to avoid reputational and financial damage.’

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