Business Electricity Meter Types
There is a wide range of electricity meters that your business may have installed, depending on your electrici...Read More
UK SMEs are losing £18 billion every year to fraud, says a recent study, with 35% falling victim in the past year. How can the fraud threat be stopped?
The most obvious cost of fraud is immediate: research from Sage Pay found that UK small to medium sized businesses lose an average of £3,450.
But the financial loss can pale into insignificance when compared with the reputational damage. Bad publicity associated with a fraud can negatively influence suppliers, customers and potential employees, discourage investors and affect relations with regulators.
Despite these serious consequences, too many SMEs are unwittingly exposing themselves to the risk of fraud. Almost a third of SMEs (32%) do not spend money on fraud prevention and the average investment in fraud prevention, £1,881 annually, is just half the average cost of fraud.
Perhaps most striking is the failure to use simple existing systems to tackle fraud. Many don’t even use some of the tools and checks that come as standard with payment gateways, with only 22% using CV2.
But the most common cause of fraud can come as a surprise to many small to medium sized businesses.
Contrary to popular belief, most workplace crime is carried out by employees. Common types of ‘insider fraud’ include: asset theft, payroll fraud, corruption, theft of intellectual property and selling sensitive company information.
Companies that are underperforming or failing to motivate staff are more likely to suffer fraud. However, there is usually a personal factor such as uncertainty about employment, money worries such as debt, illness or gambling problems. Indeed, one well-worn phrase has it that “fast women and slow horses” lead employees to commit fraud. Secrecy and stress should be investigated, not just for fear of fraud, but also to ensure employee welfare.
Jokes aside, behaviour that is not exactly suspicious but still unusual, such as refusing to take a holiday, can be a sign that something is wrong. This reticence to take a break is a red flag to official fraud investigators as it may mean the employee is concerned that their crimes may be uncovered.
Close relationships with suppliers are usually to be lauded. But being too cosy could suggest corrupt activities such as inflated invoices and kickbacks to the employee.
How can owners and managers get to grips with such subtleties and protect their business. As a minimum, SME owners need to have a stated anti-fraud policy that:
A few simple tips can help build this plan and cut the risk of employee fraud:
"Fantastic! Very happy with the service received Would definitely recommend"This review was posted by Room 305 on the 06th of December 2017
I've used Switch My Business for a few …
"I've used Switch My Business for a few years because they literally do everything for you with no fuss. Mark Weeks was incredibly helpful, friendly and understood how busy I was. He explained everything simply, clearly and found rates that matched my needs perfectly (needed a 0 fee standing rate gas supply). He prepared all the paperwork so all I had to do was print, sign and scan. Highly recommended!"This review was posted by Jay Grocott on the 06th of December 2017
Mark Weeks is very informative of the …
"Mark Weeks is very informative of the current market and helped us change our utility provider effortlessly on an attractive contract"This review was posted by Alex Slee on the 05th of December 2017
"It was a seamless switch and Mark Weeks was extremely helpful and knowledgeable. I will be using SMB again on the next renewal date."This review was posted by Marc Hesford on the 05th of December 2017
Mark Weeks provided quotations for my …
"Mark Weeks provided quotations for my search for alternative electricity supplier which were competitive though not significantly better than our current supplier. Very useful however."This review was posted by john barrus on the 05th of December 2017