Cyber-crime is
growing at an alarming rate. In the period January to June internet fraud
linked to stolen passwords in the UK soared by 71% to £29.3 million.
Meantime it has
been estimated that online fraud hits one in eight UK businesses each year and
costs a staggering £20 billion.
Despite storing
critical information on mobile devices and computers some 82% of SME’s are
unprepared for an IT security breach.
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.
In smaller
organisations fraud can take many forms e.g. invoice scams, to suppliers
providing kickbacks for inflated purchases, theft of stock, fictitious expenses
etc.
For larger
organisations the potential for various fraud activities exists but the numbers
involved are far greater.
It is vital that
all organisations have systems in place to monitor all of the company’s
finances and commitments in a clear and concise format.
Simple but
effective systems of checks and balances can go a long way to limiting if not
removing the risks.
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