Businesses most concerned about fraud losses due to cyber-attack

Research carried out by Cifas, the UK’s leading fraud prevention service, has revealed that large UK businesses are most concerned about cyber-attacks, potentially leaving them open to other types of fraud including insider and supplier fraud.

In a survey conducted amongst 2,000 decision-makers responsible for training staff within large UK corporates, an overwhelming 71% said their chief concern was their businesses being cyber-attacked.

However cyber-attacks are not the only source of fraud losses for businesses. In the first six months of 2022, Cifas saw a 20% increase in companies being impersonated by fraudsters, as well as a 56% increase in companies falling victim to account takeover with criminals using a wide variety of methods to achieve this.

Worryingly, less than half of those surveyed (47%) were concerned about employees being targeted by fraudsters, with almost the same number (45%) concerned about staff committing fraud against the business – despite 86% continuing to have staff working from home at least some of the time.

Fraud carried out by staff against their employer is on the rise, with cases filed to the Cifas Internal Fraud Database up by nearly half when compared to the previous year. The majority of these cases relate to individuals working in contact centres who have been targeted by criminals in order to gain access to accounts and processes.

More recently, Cifas has also seen a rise in ‘fraud as a service’, where fraudsters provide their services ‘on demand’ – with many advertising on popular social media and messaging platforms.

Only 37% of those surveyed were concerned about supplier fraud.

Commenting on the findings, Rachael Tiffen, Director of Learning at Cifas, said:

'We know that there's an appetite for fraud training and most businesses recognise its position as a core part of their training budget. However, there is a risk of relying on a one-size-fits-all fraud prevention approach.

‘This can create real financial vulnerabilities for businesses already navigating a tough trading environment. A narrow view of the fraud threat landscape can lead to a false sense of security, making the impact of a successful fraud attempt even more devastating for the business.

‘During the past few years, large corporates have seen widescale changes to working arrangements, as hybrid working becomes a permanent feature of their organisations. Traditional fraud prevention training was developed mainly for in-office working, and as hybrid working continues to be the norm, so should businesses change their approach to fraud prevention, making sure the risks to their business of disruption and losses from fraud are minimised—no matter where work takes place.

‘As fraud continues to increase, a tailored fraud-prevention approach, informed by the latest threats per business sector will be crucial in maintaining the financial health of businesses in the U.K.'

ENDS

Notes to Editor

Methodology

The survey was carried out by Opinion Matters on behalf of Cifas between 1– 12 September 2022, with a sample of 500 UK-based decision makers responsible for staff training programmes/budgets working in companies employing 1000+ people with UK operations, guaranteeing at least 100 respondents with UK based staff working from home for some of the time.

For more information, please contact:
Ione Gyamfi
Press and Public Relations Manager
ione.gyamfi@cifas.org.uk
(+44) 020 4551 7956

About Cifas Learning

Cifas is the UK’s fraud prevention service. We lead the fight against fraud by sharing data, intelligence and learning. The organisations that collaborate with us are drawn from all sectors, operating in both the public and private sectors working together to stop fraud. A full list of our members can be found on our website.

Cifas data is included in the Office of National Statistics England and Wales Crime Statistics of police recorded crime and works alongside law enforcement agencies in tackling fraud.

Organisations that work with Cifas, contribute to and benefit from the UK’s largest databases of fraud risk data and intelligence.

From online to hybrid to face-to-face, and from digital to trainer-led, Cifas offers learning that equips individuals to minimise the fraud risks to their organisations, as well as offering a career pathway for counter-fraud professionals, with regulated and accredited qualifications. We can also provide bespoke training suited to the specific needs of your organisation.

About Opinion Matters

Opinion Matters is an independent market research agency that create bespoke market research solutions for businesses, organisations, and agencies worldwide. Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

Contact us at press@cifas.org.uk