Financial Crime World

Financial Crime Statistics by Country in United Kingdom Show Alarming Rise in Fraud

A Staggering 64% of Businesses Experience Financial Crime in UK

A recent report has revealed that financial crime is on the rise in the United Kingdom, with a shocking 64% of businesses experiencing fraud, corruption or other economic/financial crime within the past 24 months. This marks a significant increase from 56% in 2020 and 50% in 2018, outpacing the global average of 46%.

The Evolving Nature of Financial Crime

The report, compiled by GECS, highlights the evolving nature of financial crime, with new risks emerging such as supply chain fraud. Businesses are being targeted through various means, including:

  • Supply chain manipulation
  • Fraudulent activity
  • Cybercrime

Pandemic’s Impact on Financial Crime

The widespread disruption caused by the pandemic has led to a rise in fraudulent activity, leaving individuals and organisations vulnerable to attacks.

Key Findings of the Report

Some key findings of the report include:

  • Supply Chain Fraud: This type of fraud involves manipulating or exploiting vulnerabilities in supply chains to commit financial crimes. Businesses must invest in effective risk management measures to mitigate this threat.
  • Fraud Risk and Maturity: Organisations must consider their level of maturity when it comes to fraud risk and take proactive steps to address this growing threat.
  • Technology in Risk Management and Detection: The use of technology is crucial for detecting and preventing financial crime. Businesses must invest in effective risk management measures.
  • ESG Risk: Environmental social and governance (ESG) risk is becoming increasingly important for organisations to consider as they navigate the complex landscape of financial crime.
  • Cybercrime: Cybercrime is a major concern for businesses, with attacks becoming more sophisticated and frequent.

Conclusion

The report’s findings serve as a stark reminder that financial crime is no longer a distant threat but a very real concern for businesses operating in the UK. Organisations must take proactive steps to address this growing threat, investing in the right resources and effective fraud-fighting measures. Failing to do so could result in significant costs and reputational damage.

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