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Why Fraud is costing businesses over £38bn a year

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. FRAUD COSTS THE UK WHY IS FRAUD COMMITTED? £38 BILLION A YEAR Fraud is on the rise and fraudsters are getting smarter, faster and more inventive and this trend is not expected to change any time soon. Why? Because online Figures from the transactions and communications are fast becoming standard business practice. National Fraud Authority FRAUD SO WHAT IS FRAUD? Fraud is broadly any intentional deception made for personal gain - and it's usually at your expense. COSTS THE UK PRIVATE SECTOR £12 BILLION A YEAR PUBLIC SECTOR Unintentional payment errors have exactly the same impact and they cost your business financially, operationally and reputationally. FRAUD COSTS THE UK £21.2 BILLION A YEAR HOW MUCH MAY FRAUD BE WHAT ARE THE TYPES OF FRAUD THAT YOUR BUSINESS MAY BE EXPOSED TO? 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 PROFESSIONAL FRAUD When someone deliberately gives you false information with the intention of de-frauding you. When a trusted adviser tries to CUSTOMER FRAUD ACCOUNTS divert your funds for their own gain. FOR OVER 50% OF ALL CASES ID THEFT AND MISREPRESENTATION ACCOUNT TAKEOVER When someone gets their hands on another's account THE VAST When someone steals or MAJORITY INVOLVE SOME creates another person's information and starts using it without their knowledge. details. FORM OF DATA MASSAGE OR SLEEPER FRAUD INSIDER FRAUD MISREPRESENTATION When a colleague, agent or When someone develops a relationship with you to build a credit line before leaving with your money. trusted adviser uses TOTAL FRAUD LOSSES ON UK confidential information with DEBIT & CREDIT CARDS the intention of cheating you. TOPPED £360 MILLION IN 2010 PAYMENT FRAUD MONEY LAUNDERING When fraudulent transactions are made by someone using a legitimate The process of disguising illegal funds so that they look like they are from legitimate 7. 2010 customer's account. sources. MOTOR FRAUD, INCLUDING "STAGED ACCIDENTS" IS ESTIMATED AT £350 MILLION A YEAR, WHICH IS WHEN IS FRAUD COMMITTED? AT THE POINT OF APPLICATION DURING THE CUSTOMER RELATIONSHIP Open account fraud takes place when an established and apparently legitimate customer suddenly starts behaving fraudulently. DRIVING UP Application fraud is one of the biggest sources of lost revenue, particularly among organisations managing high application volumes. It always directly affects profitability. THE COST OF MOTOR INSURANCE CHARITIES ARE BELIEVED TO LOSE £1.3 BILLION A YEAR WHAT CAN YOUR BUSINESS DO TO PREVENT TO FRAUDSTERS AND DETECT FRAUD? AROUND 2.4% OF THEIR ANNUAL INCOME Specialists from the world of fraud, payments and identity can help you to FRAUD separate your genuine customers from the fraudsters by applying automated checks against information already available. GENERAL INSURANCE FRAUD It's something of a balancing act – CUSTOMER EXPERIENCE and PROFITABILITY against managing RISKand FRAUD. how to get the balance right for your business – YOU CHOOSE! LOSSES NOW TOP £2.1 BILLION EVERY YEAR TELECOM FRAUD PRODUCED BY EXPERIAN COSTS £730 MILLION DExperian EVERY YEAR website: www.experian.co.uk/you-choose email: [email protected] phone: 0845 266 6604 STUDENT FINANCE FRAUD COSTS Source: £31 MILLIONA YEAR http://www.homeoffice.gov.uk/publications/agencies-public-bodies/nfa/annual-fraud-indicator/ Figures from the National Fraud Authority © Exp registered in the EU, USA and other countries. The graphical device is a registered Community design in the EU. All rights reserved. 2012. The "EXPERIAN" and the graphical eare trademarks of E: and/or its ciated companies and may Experian registered in England and Wales under the company registration number 653331. Registered office address: Land mark House, Experian Way, NG2 Business Park, Nottingham NG80 1z.

Why Fraud is costing businesses over £38bn a year

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Explained in this infographic, the what, where, how and why is fraud happening and some of the options available to safeguard busineses and their customers.

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