Fraud risk management

Forthcoming change: The Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) received Royal Assent on 26 October 2023. ECCTA 2023 introduces a new 'failure to prevent fraud' offence. This means that organisations can be prosecuted if they financially benefit from fraud committed by an employee. The offence will apply only to large organisations that meet two of three criteria: they must have 250 employees, £36m in sales or £18m in assets. The government will be issuing guidance about procedures that organisations can put in place to prevent them from committing fraud offences. We will be reviewing our content accordingly in due course.

Fraud is the deliberate use of deception or dishonesty to deprive, disadvantage or cause loss (usually financial) to another person or party.

Regardless of a firm's size, all firms are at risk of becoming a victim of fraud which can have an adverse impact on not only the financial health of a business but also its image, its reputation and staff morale.

A firm's reputation depends on its ability to protect itself from fraudulent activities and ensuring any incidents are handled

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