Cyber-crime is growing at an alarming rate. A particular area of fraudulent activity is linked to stolen passwords.
Latest estimates indicate 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 an owner 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 essential 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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