Partner Article

SMEs are vulnerable to fraud

SMEs are particularly vulnerable to fraud

by, Phil Loveday, Fraud Specialist, UNW

Anyone reading the local press recently would have read that Dave and Grace Purdie and five others made their first appearance at Newcastle Magistrates Court at the beginning of July, charged with serious offences of conspiracy to defraud which relate to the activities of North East Property Buyers and Newcastle Home Loans.

This was the last in a series of major investigations I led in my former life as a Detective Sergeant in Northumbria Police’s fraud squad. A protracted investigation involving collusion between professionals involved in the property business, it’s now in the court system and will be heard at the Crown Court in the future. I believe it to be one of the biggest property frauds ever committed in the UK.

The investigation commenced in 2008, since that time fraud has increased phenomenally over recent years. I believe there are many reasons for this, including the advent of the internet, associated media and the many different ways of committing offences. This, coupled with the potentially high rewards and the relatively slim chance of being caught, make fraud an appetising alternative for the career criminal.

After retiring from the Police I joined chartered accountants and business advisers UNW, still dealing with business crime and fraud related matters but from a completely different angle and thankfully, the added bonus of no more dawn raids!

At UNW, the work I’ve been involved in so far has been fairly low level by comparison, but nevertheless, very important to the client. In most cases the client simply wants the matter resolved and does not want any Police involvement which also makes life easier – no more file preparation for the CPS! This experience goes to show that the National Fraud Authority’s estimate, that only a fifth of actual fraud is reported to the Police, is probably fairly accurate.

Fraud is not a Police priority and is not likely to be in the near future, yet it is massive and affects everyone in some way, especially those involved in running SME’s which are particularly vulnerable to fraud, both internally and externally. Over the next few weeks, I shall be writing to explain a few things - how to prevent fraud, what to do if you suspect an internal fraud, and simple tips on how to spot a fraudster – though this is very difficult!

And finally, if you suspect you are a victim of fraud, contact either myself or another fraud specialist to investigate it!

This was posted in Bdaily's Members' News section by Lisa Kelly .