PKF Littlejohn and Experian to revive the government’s fraud cost estimate. UK’s only indicator on the total cost of fraud to be launched this year. A new industry body has been set up to highlight the cost of fraud to UK businesses, charities and the public.
The UK Fraud Cost Measurement Committee will seek to revive and enhance the government’s previous Annual Fraud Indictor, which ceased publication in 2013. The Committee’s new National Fraud Indicator, which will be the only one of its kind, will help organisations measure and manage the impact of fraud. It will highlight the preventative steps that can be taken to combat fraud and ultimately help protect people across the UK.
In 2013 the government estimated that fraud and cyber-crime was costing the UK economy £52bn every year. There has been no official estimate since then. The new National Fraud Indicator will replace this research and give the most up to date and comprehensive view of the cost of fraud in the UK. It is due for release in late 2015.
Comprised of organisations that represent sectors across the economy, the industry body will be led by PKF Littlejohn, an independent firm of chartered accountants and business advisors, in partnership with Experian.
Jim Gee, Partner and Head of Forensic and Counter Fraud Services at PKF Littlejohn, said: “Unless the scale of the problem is understood then the right solution can’t be applied. By treating fraud as a business cost, like any other, it can be measured, managed and minimised – making businesses more profitable, mitigating the effect of austerity in the public sector and freeing up more resources for worthwhile purposes in the third sector. The new National Fraud indicator will help UK Plc to achieve these benefits.”
Nick Mothershaw, Director of Fraud and Identity at Experian, said: “Preventing fraud and protecting the businesses and the people most at risk is a big part of what we do as a business. The loss of the National Fraud Indicator left a knowledge gap for UK organisations who are involved in fighting fraud, so this new committee should go some way to bridging the gap. By putting a value on the cost of fraud we aim to change the mind-set of the public and private sectors in how they deal with future threats.”
Through extensive analysis, the industry body aims to change attitudes towards fraud so that it is no longer seen as an uncontrollable factor, but rather a business cost that can be managed and minimised. The group intends to demonstrate the extensive benefits available to public, private and third sector organisations in reducing fraud costs across the board.
The new group will use pioneering techniques of fraud loss measurement, applied by the Centre for Counter Fraud Studies at the University of Portsmouth, to create the new indicator.
Source: Experian UK