The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

UK is failing to combat business fraud

Fraud experts from the police, financial services, and legal professions have delivered a stark warning that current UK fraud legislation is unable to cope with the continual rise in financial fraud.

Stephen Philippsohn, a member of the Fraud Advisory Panel, speaking at a conference run by CreditUK, in Manchester last week warned: "Fraud has a devastating effect on business, jobs, savings and pensions." He blamed ineffective legislation and insufficient resources. "Fraud is currently costing business £14 billion per year."

Legislation was ineffective, according to Steve Hancock, head of group money laundering prevention at Prudential plc, and was clogging up the system. He says: "current legislation says employees have a duty to report any suspicious transaction and if they don't they can be prosecuted. As a result they become paranoid and file hundreds of useless reports that all have to be processed."

According to Ken Farrow, detective chief superintendent and head of the City of London Police Economic Crime Department, there are quite simply not enough resources to effectively handle the situation. He admits: "five, even six figure frauds are being reported that forces do not have the resources or manpower to investigate."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree