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Fraud high in finance and insurance sectors, says BDO Stoy Hayward

Fraud cost UK businesses over £705m in the last six months, up 74 per cent from the same time last year, according to BDO Stoy Hayward.


The latest FraudTrack analysis shows that the finance and insurance sectors incur the most reported fraud, costing the sector more than £636m in the last six months.

This represents 90 per cent of the total cost of fraud in the first 6 months of 2008.

BDO Stoy Hayward says management fraud accounts for 46 per cent of fraud cases and third party fraud for 32 per cent, costing businesses a total of £541m. 


Head of the fraud services team Simon Bevan says: 

“The combination of spiraling personal debt and desperate employees spells real danger for business. Especially when, sadly, our figures provide clear evidence that commercial organisations of all types and sizes throughout the UK are currently failing, in some cases quite spectacularly, to get to grips with the fraudulent activity of their staff.



“We are seeing a dramatic increase in banks, corporates and public sector organisations contacting us directly about our fraud investigation and prevention services and we expect this to rocket further still. Interest is coming from Board level as senior executives at British businesses are becoming increasingly concerned about fraud risk as the credit crunch bites.”

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