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Fraud Down Last Year – 24 Jan 2014

Member: Nifa

The analysis of fraud trends during 2013 by the UK's Fraud Prevention Service (CIFAS) reveals that, overall, fraud levels decreased in 2013 by 11 per cent from the levels recorded in 2012, the first year on year drop since 2010, but they remain at a much higher rate than in pre-recessionary times.  The decrease, however, suggests that counter fraud measures, such as data sharing and the use of forensic accountants to ensure that organisations do not lose money through employees siphoning off funds and trying to cover their trail, are working.

However, other research shows that the figures are likely to underestimate the overall level of fraudulent gains in Britain, as many cases go unreported or fail to make it to court.  Stories abound of employees embezzling funds but the only ones that get into the papers tend to be high profile cases or those involving local people in regional editions.

However, a common thread in all these stories is often that their dirty work was picked up because of regular investigation into the firm’s accounts by forensic accountants who spotted anomalies.  Of course, it is one to thing to pick up on the anomalies but another to find out who the guilty party is, which is where the forensic accountants come in again.

They will go through the accounts using sophisticated software, follow the money trail and interview the staff t make sure that the correct person is brought to justice.  In addition, if there is a case of the wrong person being accused, they will be able to use they evidence they have gathered to help maintain an individual’s innocence, so there should be no way that the blame can be pinned on an innocent party.

Author: Roger Isaacs – 24 January 2014

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