Business News

SMEs Count Fraud Toll

Fraud costs small and medium-sized enterprises an average of £2,800 a year each, according to new statistics from the National Fraud Authority (NFA).

The NFA released its second Annual Fraud Indicator on 27 January, which estimates the total yearly cost of fraud to the UK at £38 billion.

The public sector bore the brunt of the losses, estimated at £21 billion, with the private sector losing a further £12 billion.

The NFA also worked with the Federation of Small Businesses (FSB) to produce a figure for how fraud affects small businesses.  They put the figure at £780 million lost by SMEs, adding up to around £2,800 per business, per year.
 
FSB policy chairman Mike Cherry says: “These costs can hamper enterprise for small firms when in fact the Government are looking to them for economic growth and job creation.”

He urged small businesses to report fraud to Action Fraud, the national fraud reporting centre run by the NFA.

Private sector areas seriously affected by fraud include the financial services industry, which lost £3.6 billion to fraudsters, mortgage fraud (£1 billion), insurance fraud (£2.1 billion) and online banking (£60 million). Charities lost a further £1.3 billion.

LINK: NFA press release

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