More business fraudsters getting away with it, warns report

15/01/08 17:55

The number of business fraudsters being prosecuted has fallen dramatically yet the problem itself is not improving, it has been claimed.

Research from accountants BDO Stoy Hayward has shown that the number and value of business fraud cases going through the criminal courts has fallen significantly.

The study identified 267 reported cases of business fraud (worth above £50,000) in 2007 with a total value of £ 1.04bn, compared to 295 cases worth £1.37bn the year before.

However, this should not be taken to mean that cases of business fraud are actually falling, the accountants said. The report warned that businesses are losing faith in the courts’ ability to combat the problem.

Simon P. Bevan, author of the report and national head of BDO Stoy Hayward’s Fraud Services team, commented: “Fraud is actually spreading like the ‘flu. Until you are hit by it you don’t always know how bad it can be.

“ T he gap between the number of frauds investigated and prosecutions in criminal courts is widening. When you balance the low chance of being discovered and prosecuted against the millions many white collar fraudsters make, it is not hard to see why fraud is increasing, and more people than ever are getting away with it! ”

Bevan added that, with less fraudsters being brought to justice, they are beginning to feel ‘invisible’, meaning that businesses need to be ever more vigilant with reference checking to ensure they are not an easy target.

He added: “In my experience when you check into the background of a fraudster, invariably there is a skeleton in their cupboard or an inconsistency in their CV that, if identified earlier, would have prevented the business becoming a victim.”