The Cost of Fraud
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Fraud could be costing the economy upwards of £20 billion a year according to the City of London Police. Fraud is merely one aspect of corruption in the economy - my graphic comes from a talk on on business corruption given at the Keynes Society by John Burbidge-King
CEO of Interchange Solutions Ltd. Fraudulent behaviour has many causes and mild fraud can often be rationalised if the person or people who commit it manage to create at least one step between them and the cash it involves. But the consequences for business in the long run can be severe.
“Tolerance” of corrupt practices indicative of other deeper problems
Created share volatility ~ loss of shareholder value
Adverse investor attitudes ~ lower capital market and credit market ratings ~ potential impact on insurance cover/premiums
Business distraction and diversion of resources in unearthing the culprits
Negative Impact on brand/reputation
Worrying for employees, customers and business partners
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