In 2023, the NFD was reported to have received north of 374,000 cases of fraudulent behaviour. Guarding against this risk is more important than ever.
The Cifas National Fraud Database (NFD) found that the majority of fraud cases reported related to identity fraud, with social engineering tactics and the increased use of AI and data harvesting techniques contributing to this.
The largest volume increase across all fraud types is facility takeover. This has increased by 13% since 2022. The telecommunications sector was the most heavily affected in 2023, indicating a shift in criminal methods towards targeting existing accounts.
The NFD states that fraud and financial crime continue to impact people, companies, and the public sector at epidemic levels. Given these figures, it is vital to minimise the risk of fraud as much as possible.
10 ways to prevent fraud risk
Conduct due diligence on all business associates and third parties to determine whom you're dealing with. Watch out for tell-tale signs (red flags) of suspected fraud, including employee fraud, cybercrime, and customer or corporate fraud.
Only make honest declarations (about your credentials, qualifications and expenses); avoid giving unauthorised people access to your company's data, systems, or information.
The fewer people you share information with, the less likely you will fall prey to identity fraud. It is important only to disclose the information if necessary, and you trust the recipient of that information.
It is important to be aware of becoming an unwitting accomplice. Make sure you are alert to the actions of unscrupulous employees, customers, suppliers or others in acts of fraud. It is vital to report any suspicions you may have.
Don't disable your anti-virus, and ensure updates are installed as soon as they become available to plug known vulnerabilities. Running out-of-date software leaves you and your company exposed to the risk of fraud.
For example, make regular data backups, avoid sharing passwords, ignore unsolicited emails or phone calls requesting information (don't be pressured into breaching company rules), and encrypt or password-protect sensitive or personal data.
Don't click on links in unsolicited emails, avoid using public WiFi hotspots to link to your firm's network, and don't connect personal devices or download unauthorised apps.
Guidance from IT designed to prevent fraud is valuable, so it's important to cooperate with their advice immediately. For example, follow their guidance on using firewalls, updating anti-virus software, avoiding malware, and so on.
Signs can include uncharacteristically slow response or network performance when opening or accessing files. Unavailable websites or an inability to access your firm's website could also indicate an attack, as could a dramatic increase in the amount of junk mail you receive.
It is vital to immediately inform your manager or IT of anything suspicious or any errors you notice regarding suspected fraud. Whether you are certain or not, flagging these concerns can go a long way in nipping fraudulent activity in the bud.
The sooner you report your mistakes, the quicker your company will be able to limit its losses. However, if you avoid admitting your mistakes, you and your company are more vulnerable to fraud attacks.
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