search.noResults

search.searching

note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
fraud


fraud occurring gets detected – but if you protect yourself so it doesn’t happen, then that can make the greatest impact.


“The sectors that don’t think they have a problem are often the ones where the problem is the greatest, because their focus on fraud prevention is not at a high enough level.”


Is technology helping or preventing fraud?


It’s more difficult today to say where cyber crime is taking place because businesses can run their digital operations from various worldwide locations, but modern technology is now being increasingly used to target and track-down criminals.


Ironically, the two-edged sword of technology is also enabling cyber-criminals to set up sophisticated online ‘dark web’ markets and operate internationally as illegal entities. “The days of individual hackers in their bedrooms is long gone,” stated Gee.


And, a fraud prevention mindshift is gathering momentum, he believes, not least because international publicity and social media activity are boosting awareness. People are hearing about cyber scams and hacking at all organisational and professional levels including government departments and possibly elections; some may have had their business operations infiltrated, personal IDs or savings stolen ... fraud has become a very personal experience.


Jeremy Cooper highlighted the increased demand from Crowe’s clients over the past 12 months for fraud prevention advice and assistance. “We’ve certainly seen a big uptake for our services and that reflects what’s happening in the wider business community. The numbers speak for themselves.”


Crowe’s Thames Valley operation is growing organically and is currently at almost 100 partners and professional staff. But as Cooper adds: “We are a national firm and the UK member of Crowe Horwath International, the 8th largest global professional services network, and as such we can always get the necessary resource for our Thames Valley clients, whether that’s in countering fraud by building and preparing resilience or in a triage situation where they need active help because they have an immediate issue.”


What things should businesses be doing? Jim Gee suggested these fundamental fraud resilience focuses: Fraud


• Establish a strong anti-fraud culture throughout your business and its product and services providers.


• Ensure there is a strong and well-known deterrent regime for potential fraudsters. Eg loss of job, cancelled contracts.


• Design-out the business process and system weaknesses that allow fraud to take place.


“If you understand how well protected you are, then you can see where you need to strengthen protection, and we often help clients with that.”


The procurement process, for example, is a major area of fraud, so supply- chain systems and security should be regular and accepted standard evaluation procedures.


“The human element is key. Your people need to be aware of the possibility of fraud, and understand that they have a stake in minimising it because if their company is more secure, stable and healthy, it indirectly brings benefits for them.”


Cybercrime


• Map your systems and data. “If you don’t understand where your data is you really are wide open – effectively you don’t know what’s there to be stolen.”


• Meet the Government’s Cyber Essentials Plus standard for security.


• Test your systems through ‘ethical hacking’. “In all my years, I’ve yet to come across a penetration testing report that did not reveal a serious vulnerability in the organisation it was assessing. I am looking forward to the day when a report doesn’t.”


• Test your workforce preparedness with some crisis scenario planning and ‘live’ training. “When the breach happens you need to be able to manage it, investigate its cause technically, seal it, report it correctly (NB: new GDPR requirements from May 2018), and also to mitigate any reputational damage.


What are the most common frauds to avoid?


Trending over the past few years has been mandate fraud – people contacting organisations and changing bank or supplier details to divert payments into their own accounts. Also, fraudsters monitoring social media to discover when decision-makers are out of their office, then sending fake emails instructing subordinates to make major payments.


“But trends move on, so I am sorry to say that I’m absolutely confident there will be new scams next year,” said Gee.


* Details of the UKFCMC Annual Fraud Indicator 2017 from croweclarkwhitehill.co.uk


croweclarkwhitehill.co.uk


THE BUSINESS MAGAZINE – JANUARY/FEBRUARY 2018


businessmag.co.uk


15


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48