View more on these topics

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.”


The RDR debate

After a confusing start a year ago, the RDR now appears to be moving in a very positive direction which sho-uld prove of benefit to consumers. Indeed, if consumers understood the argu-ments, they would be writing to the FSA in droves urging them to hold their nerve in the current “advice versus sales” debate.

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm