According to a study, three quarters of fraud professionals support mandatory reporting: CityAM
Three in four fraud professionals support mandatory reporting of the most common crime in the UK, according to a new survey.
Under current law, a business is not required to report fraud to law enforcement and has little incentive to do so unless criminal prosecution is initiated.
An overwhelming majority of the 200 professionals surveyed supported the introduction of legislation to impose mandatory reporting, with two-thirds of those in favor saying it should be mandatory in all cases, regardless of the financial impact.
“We need to raise our collective game in a very substantial way to meet the enormous challenge of fraud, and that will require key changes, including the ability to report mandatory fraud,” said David Clarke, chair of the advisory group on the fraud that commissioned the investigation along with the UK chapter of the Association of Certified Fraud Examiners (ACFE).
While professionals were almost unanimous in their conclusion regarding the report, the investigation found that many companies are reluctant to come forward if they have been the victim of a financial crime.
Some companies feared that they would be seen as an easy target for criminals if they claimed to have been victims of fraud, while others feared retaliation from regulators and insurance companies.
Tim Harvey of ACFE said: “Taken together, these results again underline the urgent need for a coherent approach to tackling fraud based on a strong strategy and sufficient resources. The survey finds strong support for the idea of a legal approach to mandatory reporting, but there is also a lot of skepticism as to its likely strength and thoroughness. “
Financial crime is said to cost the UK economy billions every year. While UK losses due to fraud are estimated to amount to £ 52bn each year, cases totaling just £ 742m appeared in UK courts in 2020.
Read more: Exclusive: UK fraud is big business at £ 52bn every year, says financial crime guru