Little recourse therefore exists for the victims of fraud. According to published information in 2007, it was perceived that credit card fraud had effectively been decriminalised, with Police Forces taking no action and placing the onus of investigation the responsibility of the banks. According to David Kirk Director of The Fraud Prosecution Service, he maintained that the Police Service was failing to devote sufficient resources to investigating fraud, despite an increase in the number of fraud victims. In an interview with BBC he added….’Police priority for fraud investigation is low, in fact it isn’t on their list of priorities !!…as an ordinary member of the public you would have to be very lucky to get an investigation’.

Derby Associates Limited has introduced Actus Reus Fraud Risk Services as a dedicated division specifically aimed at reducing the risk of fraud by implementing rigid due diligence controls, but where fraud has occurred, offering the client a bespoke and dedicated investigation service aimed at collecting evidence and identifying the perpetrators, thereby conducting a sterile compliant investigation which can be handed over to Police for prosecution purposes, or as the client so desires.

This service will also provide the client with the option of a civil recourse through their legal representatives to trace, freeze and recover stolen assets, where the standard of proof remains at the lower threshold ‘on the balance of probabilities’. In 2011 Fraud is estimated to be costing the British economy between 30 and £40 billion pounds a year. Government and Corporate fraud accounts for a large proportion of this but the total could be considerably higher because many firms are reluctant to tackle the problem. In a lot of cases Fraud is committed by trusted senior management who are able to bypass internal controls.

Companies need to be diligent and focussed to detect Frauds early, through tight internal controls, data analytical tools, and widely published Fraud reporting mechanisms. Whistle Blowing facilities and procedures should be adopted to encourage reporting by honest employees who may otherwise feel reluctant or compromised. Some companies are being forced into liquidation because white collar crime ranging from computer fraud to industrial espionage, corruption and petty pilfering, has got out of hand.

Managers often believe that fraud by employees is the start and end of the problem, but this is rarely true. The largest losses are caused by suppliers, customers, competitors, third parties, hackers and other external opponents over whom the victim organisation has little control. Most victims are woefully unprepared and few understand the real risks or the sophistication of their opponents.

All large Companies and SME’s are latent victims of Fraud and potentially vulnerable without rigid controls in place. Companies should establish and incorporate best practice guidelines in the event of Fraud, to avoid a disastrous outcome. Anti Fraud Policies providing a Code of Conduct, an Anti Fraud Strategy, a Fraud Response Plan and a Whistle Blowing Policy should be a minimum requirement and starting point.