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How is Fraud Affecting Business?

HOW IS FRAUD AFFECTING BUSINESS?

A QUICK GUIDE TO THE THORNY ISSUE OF FRAUD,PAYMENTS, IDENTITY AND YOUR CHOICES



Fraud is costing our businesses millions every year. But the implications of fraud go far beyond cost alone. Fallout from fraud hits business reputation,instils mistrust in customers'minds and,in extreme cases, could lead to businesses folding.



Outlined below are the what,why,where and how it's happening and just some of your options to help safeguard you,your customers and your business.



Figures from the National Fraud Authority

FRAUD COSTS THE UK �38 BILLION A YEAR

FRAUD COSTS THE UK PRIVATE SECTOR �12 BILLION A YEAR

PUBLIC SECTOR FRAUD COSTS THE UK �21.2 BILLION A YEAR



WHY IS FRAUD COMMITTED?

Fraud is on the rise and fraudsters are getting smarter,faster and more inventive and this trends is not expected to change any time soon. Why? Because online transaction and communications are fast becoming standard business practice.



SO WHAT IS FRAUD?

Fraud is broadly any intentional deception made for personal gain-and it's usually at your expense.



Unintentional payment errors have exactly the same impact and they cost your business financially,operationally and reputationally.



WHAT ARE THE TYPES OF FRAUD THAT YOUR BUSINESS MAY BE EXPOSED TO?



CUSTOMER FRAUD

When someone deliberately gives you false information with the intention of de-frauding you.



PROFESSIONAL FRAUD

When a trusted adviser tries to divert your funds for their own gain.



ID THEFT AND MISREPRESENTATION

When someone steals or creates another person's details.



ACCOUNT TAKEOVER

When someone gets their hands on another's account information and starts using it without their knowledge.



SLEEPER FRAUD

When someone develops a relationship with you to build a credit line before leaving with your money.



INSIDER FRAUD

When a colleague, agent or trusted adviser uses confidential information with the intention of cheating you.



PAYMENT FRAUD

When fraudulent transactions are made by someone using a legitimate customer's account.



MONEY LAUNDERING

The process of disgusting illegal funds so that they look like they are from legitimate sources.



HOW MUCH MAY FRAUD BE COSTING YOUR BUSINESS?

The figures vary enormously from sector to sector, but these are a handy indicator of the scale of the problem:



CUSTOMER FRAUD ACCOUNTS FOR OVER 50% OF ALL CASES



THE VAST MAJORITY INVOLVE SOME FORM OF DATA MASSAGE OR MISREPRESENTATION



TOTAL FRAUD LOSSES ON UK DEBIT & CREDIT CARDS TOPPED �360 MILLION IN 2010



MOTOR FRAUD,INCLUDING "STAGED ACCIDENTS" IS ESTIMATED AT �350 MILLION A YEAR,WHICH IS DRIVING UP THE COST OF MOTOR INSURANCE



CHARITIES ARE BELIEVED TO LOSE �1.3 BILLION A YEAR TO FRAUDSTERS

AROUND 2.4% OF THEIR ANNUAL INCOME



GENERAL INSURANCE FRAUD LOSSES OW TOP �2.1 BILLION EVERY YEAR



TELECOM FRAUD COSTS �730 MILLION EVERY YEAR



STUDENT FINANCE FRAUD COSTS �31 MILLION A YEAR



Figures from the National Fraud Authority



WHEN IS FRAUD COMMITTED?

AT THE POINT OF APPLICATION

Application fraud is one of the biggest sources of lost revenue, particularly among organisation managing high application volumes. It always directly affects profitability.



DURING THE CUSTOMER RELATIONSHIP

Open account fraud takes place when an established and apparently legitimate customer suddenly starts behaving fradulently.



WHAT CAN YOUR BUSINESS DO TO PREVENT AND DETECT FRAUD?

Specialists from the world of fraud,payments and identity can help you to separate your genuine customers from the fraudsters by applying automated checks against information already available.



It's something of a balancing act-CUSTOMER EXPERIENCE and PROFITABILITY against managing RISK and FRAUD. how to get the balance right for your business-YOU CHOOSE!



PRODUCED BY EXPERIAN

website:www.experian.co.uk/you-choose

email:info@experianidentityandfraud.com

phone:0845 266 6604

How is Fraud Affecting Business?

shared by calmyourbeans on Mar 23, 2012 in Economy

How is Fraud Affecting Business?

shared by calmyourbeans on Mar 23, 2012 in Economy

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Fraud is costing our businesses millions every year. But the implications of fraud go far beyond cost alone. Outlines here are the what, why, where and how it's happening and just some of your options...
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