New research from Visa reveals that more than two fifths (41%) of small-medium businesses in the UK have been a victim of fraud, with the average amount lost due to fraudsters in the last year being £3,808.

Bank account hacks (23%), billing and invoice fraud (26%) and phishing scams (24%) were the most common types reported

The survey also found that fraud can have a detrimental impact on SMEs’ ability to grow their business with consumers placing a high premium on security.

A new offence of ‘failure to prevent fraud’ is a good start, but if we really want to stop this crime we need better incentives for whistleblowers, says Dr Alison Cronin

Earlier this month the government published its guidance on the new corporate ‘failure to prevent fraud’ offence, from the Economic Crime and Corporate Transparency Act 2023, which will come into force next year.

The Home Office deserves some credit. Unlike the attribution of corporate liability for the substantive offence of fraud itself, for which it is necessary to show that senior managers or directors were involved or knew about the fraud, the new failure to prevent offence is suitably broad. Instead of relying on just senior managers or directors, it holds large organisations to account where an employee, agent, subsidiary, or other “associated person” commits a fraud offence. Liability can be imposed where the organisation did not have reasonable procedures in place to prevent the offence and the fraudster intended to benefit: the organisation, its clients, or indeed just the fraudster themselves if their actions also benefitted the organisation.

https://www.cityam.com/to-tackle-fraud-its-time-to-start-paying-whistleblowers/

The tax agency HMRC has nearly doubled the amount paid out to those making tip-offs, the highest figure of at least the past seven years.

According to Freedom of Information data obtained by accountancy firm Price Bailey, HMRC has paid out nearly £1m for tip-offs over 2023/24, 92 per cent higher than the £508,500 paid over 2022/23.

“Protecting people must be the priority – I am warning organisations today that data protection law is not an excuse and it does not stop you sharing data that may assist with tackling fraud,” said Stephen Almond.

The UK’s data protection regulator, the Information Commissioner’s Office (ICO), has called on organisations across the country to share personal information responsibly to protect customers from scams and fraud.

https://www.digit.fyi/ico-data-protection-not-an-excuse-when-tackling-scams-fraud/

What are the 5 key things you need to know?

Our previous blog on this topic (found here: Fraud: ‘failure to prevent fraud' offence - KPMG UK) set out the background to the new ‘failure to prevent fraud’ offence contained in the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”). As a one-line recap, this is where an organisation can be prosecuted under the ECCTA (potentially resulting in a fine) if a fraud is committed by an associated person, for the organisation’s benefit, and the organisation did not have ‘reasonable procedures’ in place to prevent the fraud.

https://kpmg.com/uk/en/home/insights/2024/11/government-guidance-for-failure-to-prevent-fraud-offence.html

The DVLA has issued a warning over a "widespread" scam that's so realistic millions of drivers are falling for it. Motorists and road users are falling for a swindle from con artists and fraudsters as we head towards Christmas, the motoring group has warned.

The DVLA has issued an alert over the scam, which has been reported more than 1,100 times in just two weeks. The fake messages purport to be from the DVLA and are trying to chase up motorists for car tax or Vehicle Excise Duty which is unpaid.

https://uk.news.yahoo.com/dvla-warns-over-widespread-scam-165416045.html

With many of us spending more time shopping online, it is more important than ever to do so safely.

Action Fraud the National Fraud & Cyber Crime Reporting Centre have put together some guidance on shopping online and how to avoid scam websites to purchase items safely.

1. Be careful where you shop

2. Pay for things online with a credit card

3. Only give enough details to complete your purchase

https://crimestoppers-uk.org/news-campaigns/news/2024/nov/3-tips-for-shopping-online-safely-from-action-fraud

The much-anticipated new corporate criminal offence of failure to prevent fraud was introduced by the Economic Crime and Corporate Transparency Act 2023.

Its commencement was conditional on the government publishing guidance and that was issued on November 6 2024, and a regulation was laid before parliament on the same date that will make the offence effective from September 2025.

https://www.ftadviser.com/financial-fraud/2024/11/13/the-net-has-drastically-widened-for-corporate-criminal-liability/

Last year alone, mobile network operators successfully blocked over one billion scam messages, safeguarding their customers from potential harm. This significant achievement is a testament to the industry's ongoing commitment to protecting consumers.

https://www.politicshome.com/members/article/uk-mobile-industry-blocks-one-billion-scam-messages

The UK may look to follow the lead of the US in introducing a whistleblowing reward scheme in a bid to combat corporate crime.

US Deputy Attorney General Lisa Monaco recently announced a new Department of Justice-run corporate whistleblower rewards pilot programme, highlighting the critical role whistleblowers play in uncovering corporate misconduct. The new pilot programme also aims to encourage more corporate self-reporting.

https://www.pinsentmasons.com/en-gb/out-law/news/us-whistleblowing-reward-scheme-reignites-calls-for-uk-reform