Professional Security Magazine Online: Fraud could cost UK £193b a year

May 26 — Fraud could cost UK £193b a year

The annual cost of fraud in the UK could be as high as £193 billion per year, a new report suggests – with comments from NuData Security.

The Annual Fraud Indicator 2016 has been produced by the UK Fraud Costs Measurement Committee (UKFCMC) supported by credit checking company Experian and chartered accountants PKF Littlejohnand is based on research by the University of Portsmouth’s Centre for Counter Fraud Studies.

The UKFCMC has revised and renewed research undertaken by the Government up to 2013.

The private sector has been under the biggest attack from fraudsters, with both SMEs and large enterprises losing an estimated total of £144bn a year. By far the biggest source of fraud for these businesses relates to procurement; £127bn. Procurement fraud includes crimes such as the submission of false invoices or the awarding of contracts in exchange for bribes. The report highlights that procurement is so vulnerable because of the sheer size of spending , as well as the high volume, low value nature of transactions and the breadth of fraud it is susceptible to.

And Lisa Baergen, director at NuData Security, says: “One of the largest growing fraud vectors is digital fraud. The global threat environment is rapidly changing, and the growing size and scope of breaches and exposure of personally identifiable information (PII) is concerning, because it can expose people to significant fraud. Individual point solutions for fraud prevention fail to deliver the visibility needed to protect financial institutions from threats posed by an increasingly complex world of cyber crime.

For the complete article, go here.