Three quarters of businesses conduct financial investigations to root out fraud

"Almost three quarters of businesses (73%) have undertaken financial investigations within the last five years, in an effort to root out fraud, financial crime, regulatory breaches or accounting anomalies, a survey from accountancy and business advisory firm BDO has found. The most common issues requiring investigation included financial statement manipulation, cross-border financial investigations and asset misappropriation. The survey uncovered some wide variation between different sectors."

"Over two thirds (68%) of financial irregularities involved external parties or collusion between external and internal parties. Almost a quarter of businesses (24%) also reported a rise in international offenders targeting UK victims. The survey found that these financial irregularities are significantly impacting costs for affected businesses, with average losses equating to 11% of turnover. Recovery of monies is also proving a challenge with affected businesses only able to reclaim less than a third (32%) of losses, often through legal action or insurance."

Nearly three quarters of businesses (73%) have undertaken financial investigations within the last five years to root out fraud, financial crime, regulatory breaches, or accounting anomalies. Common issues include financial statement manipulation, cross-border investigations, and asset misappropriation. Levels vary by sector, with charities (90%) and arts, recreation and entertainment (89%) highest, and wholesale trade lowest (50%). Over two thirds (68%) of irregularities involve external parties or collusion; 24% report rising international offenders targeting UK victims. Affected businesses suffer average losses equal to 11% of turnover but recover less than a third (32%) of losses. Technology contributes via deepfake AI and cyber-attacks.

Read at London Business News | Londonlovesbusiness.com