Be on your guard

As the economic downturn continues to bite all businesses and organisations must remain alert to the potential for fraud.

Entrepreneurial owners of SME’s are a prime target for fraud as overseeing finances doesn’t always come naturally to them. If a founder is focusing mainly on the product or service being sold, and only minimally on administration, it leaves a business vulnerable to fraud.

It is vital to have systems in place to monitor all the company’s finances in a clear and concise format. After all it is never comfortable experience to find that someone is holding your wallet.

It is not only independent businesses that are vulnerable. UK Councils have been conned out of more than £7m by criminals using information put on their own websites under transparency drives.

The UK Audit Commission reported that Council officials were being tricked into making payments - intended for building firms and other contractors - into false bank accounts. Last year the Commission found that councils across England detected more than £185m worth of fraud - up 37% on 2009/10.

This problem will not go away so vigilance is the order of the day.