Escalating fraud is a persistent global problem, costing more than $4.7 trillion annually. As technology continues to advance rapidly, criminals become more sophisticated. This poses a significant threat to your business in 2024. It is estimated that organisations are losing around 5% of their revenue to fraudulent activity each year. These ruthless attacks come in many different forms and show no signs of slowing.
While the government is taking measures to fight back against growing criminal activity in the UK, the financial sector has been at the forefront. Advanced security systems helped achieve a £655 million reduction in losses in 2023. However, fraudsters continue to adapt and find new ways to exploit emerging technology, posing a consistent threat.
We talked to Chris Oatts, our Head of Data and Product Strategy, to get some predictions for the new year, and a sneak peek at a brand-new product to take your risk management to the next level in 2024.
The outlook for fraud in 2024
Fraud is one of the most prevalent crimes in the UK, costing businesses billions each year. In an attempt to tackle this growing issue, the UK government passed the Economic Crime and Transparency Act (ECCT Act) in 2023. The Act focuses on Companies House reforms and gives new powers to law enforcement agencies to tackle money laundering and other fraudulent behaviour.
However, the implementation of this Act will take time. In the meantime, you need to ensure your business is protected from bad actors.
A recent report outlined the serious impact fraud is having on the UK economy:
- Fraud has skyrocketed in the private sector, climbing from £14 billion in 2017 to around £157.8 billion
- In the public sector, fraud losses reached an estimated £50.2 billion
- Marketing and identity fraud against individuals was around £8.3 billion
“While we wait for the ECCT Act to be implemented, fraud will continue to pose a serious risk to the UK economy, and to our customers.. Even with the legislation in place, fraudsters will adapt and find a way to continue with unscrupulous behaviour. It is impossible to fully stamp it out."
Chris Oatts, Head of Data and Product Strategy
Some of the key threats fraudulent behaviour will pose to your business in 2024 include:
- Supply chain fraud
- Cybercrime
- AI based fraud
- Money laundering
Doing business with a potentially fraudulent company can put you at risk of legal, reputational, and financial damage. The constant threat might feel overwhelming, but we’re here to help.
How Company Watch is facing fraud head on
In response to the continued threat of fraudulent behaviour in 2024, we wanted to provide you with an even more robust level of protection. We’ve created a new early warning tool to alert you to suspicious activity that may lead to fraudulent behaviour.
Its name is 'Vigilance'.
It isn’t always easy to uncover fraud and trust that data is genuine. Our tools can help even the playing field so you stay a step ahead.
“This new, innovative tool is unique to the market. It was created using our extensive experience and expertise, feedback and collaboration with our customers, and sharing information with law enforcement bodies. The extra level of insight our Vigilance tool will provide will be invaluable in protecting our customers from financial and reputational damage."
Chris Oatts, Head of Data and Product Strategy
How does it work?
- 'Vigilance' scours the UK company database for signs of abnormal activity in behaviour and filings.
- The tool triggers alerts when a suspicious event or behaviour occurs.
- This will prompt you to investigate further any potential wrongdoings or abnormal behaviours that might otherwise go unnoticed.
Our Vigilance tool will work alongside our other award-winning and market-leading products to provide you with the deepest level of insight currently available. This will give you an unbeatable edge when exploring new opportunities for growth and protecting your business from bad actors.
“We are always innovating to provide our customers with a 360 degree view of risk. Alerting our customers to suspicious activity that could indicate fraud alongside our financial and sentiment analysis tools, will give our customers the most robust financial risk assessment possible.”
Chris Oatts, Head of Data and Product Strategy
Fraudulent activity can be costly and potentially destructive to your business. While these events might not happen very often, we’ll make sure you’re ready if they do.
Follow Company Watch on LinkedIn for more information on our new Vigilance tool and it’s upcoming launch!
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