Businesses ‘more vigilant on fraud’ says EY

BUSINESSES in the region are being more vigilant and proactive about corporate fraud, fearing the long-term consequences to their reputations of failing to protect their customers’ data and their own good name.

Business advisory firm EY, which is investing in a new Manchester-based forensic technology facility, says clients are being more robust in their attitudes to negligent staff, and are preparing for the worst by installing sophisticated preventative systems.

While the rate of significant fraud found in UK businesses of 14% has not changed much over the last six years, the issue remains high on the agenda, the firm says.

Victoria Spencer, head of EY’s 14-strong forensic practice in the region said: “The volume of cases we deal with in the North West hasn’t changed from the recession through to the recovery. However, the type of work we are doing in the region has shifted, with more clients taking a proactive stance on fraud rather than simply reacting when it happens.

“Alongside the financial crisis, the high profile mis-selling, data breach and corporate fraud cases that emerged during the downturn have ushered in a new era of customer and investor awareness, and it’s one that North West companies know they need to respond to.

“The financial and operational damage of employee fraud or a data breach can last weeks, months or even years, but the reputational damage can last tens of years and that’s the risk large businesses know they can’t afford to take.” Miss Spencer continued.

EY is helping more businesses in the region to put in place preventative cyber security measures, and also developing different types of anti-fraud training and stringent employee policies.