• Fri. Dec 8th, 2023

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Forms of Fraud That UK Businesses Need to Know About

Fraud is a relatively common crime in the UK. There are a number of reasons why this is the case, but a significant contributing factor is that white-collar crimes are rarely prosecuted. The time and resources required to tackle many types of fraud means that our overstretched and underfunded police forces can only afford to tackle the most serious cases.

As a result, businesses need to be vigilant and watch out for both internal and external fraud. Being aware of the different types of fraud that exist will enable you to do whatever you can to combat them.

Authorised Push Payment Fraud

This type of fraud involves a scam where an account holder is tricked into sending money to another account that is controlled by the scammer. There are a number of ways that this can be achieved. Social engineering is becoming the most common means by which scammers convince people to willingly hand over their money. Social engineering involves manipulating victims by impersonating their bank or another institution and convincing them to send money. Phishing emails are another increasingly common method.

Scammers are perpetrating this fraud against businesses as well as individuals and tricking employees into paying fake invoices or sending payments to bank accounts controlled by the criminals.

Card Not Present Fraud

Card not present fraud is where the fraudster uses someone’s bank account or card details to pay for something remotely. By doing it remotely, the fraudsters are able to charge purchases to a bank card without having to deal with the Chip & Pin security.

Most of the time, the data used in these scams is obtained from high-profile corporate data breaches that expose customers’ personal data. This is why it is important to be vigilant if you learn that a business that you use has suffered a data breach.

If your business suffers a data breach, it is vital that you inform your customers as soon as possible. You are required to do this by law, and failure to do so can have serious repercussions for your business. Customers who are defrauded because you fail to make a timely disclosure could even start legal action against you.

If You Are Accused of Fraud

When fraud is being committed from within a business, it is possible that those responsible will try to cover their tracks, in some cases by pointing the finger elsewhere. It is also possible that genuine honest mistakes can make a normal situation seem like a case of fraud, especially if you accidentally do something that a fraudster would do.

If you find yourself accused of being involved in fraud, you should immediately consult with a solicitor like these serious fraud defence solicitors in London. It is vital that you secure appropriate representation as early on in the process as possible.

It is important that UK businesses are aware of the most common types of fraud that might affect them and their customers. It is especially important that anyone in your business with the authority to transfer money is aware of the ways that fraudsters might try to deceive them. Forewarned is forearmed, so if you want to keep your business and customers safe from fraud, you need to know what to look out for.