Small businesses have been warned that they could be facing a wave of ‘white-collar’ crime, following an increase in the number of fraud offences since the turn of the year.
Figures released by Martin Cunningham, a solicitor and fraud supervisor for the Legal Services Commission, revealed that the number of fraud cases increased from 63 to 69 compared with the last six months of last year.
Although the actual cost of fraud fell from £158 million to £71 million over this period, Cunningham said that small firms will be hurt by any kind of monetary loss, making the rise in offences worrying.
Although crime and vandalism against businesses is still a significant problem, the new figures suggest there is a growing problem of white-collar crime against companies, with dishonest employees taking advantage of their employer’s trust.
Crime in general is a major threat to the viability of small businesses that cannot afford to repair damage or deal with the resulting lost sales.
Cunningham said that for most businesses the size of fraud is irrelevant, it’s the fact that it has happened in the first place that’s critical.
“This is why the figures and new developing trend are so important.
“Businesses should not just look at the headline grabbing fact that the total value of committed fraud has reduced; instead they should focus on the fact that the chances of being hit by white-collar fraud have increased,” he said.