Smaller firms 'more likely to need corporate fraud lawyers'

Published on 3 Jun 2010 under category: legal

Small business owners may be unwittingly ensuring that their firms will need the help of corporate fraud lawyers in the future, it has been suggested.

New research carried out by the York-based life assurance firm CPP found that one in five small to medium-sized businesses (SMEs) are aware that they are vulnerable to fraud attacks due to their own security shortcomings.

The study found that a loophole within current Companies House data processing systems mean many smaller businesses may have to call on the help of corporate fraud lawyers, with many bosses unaware of this vulnerability.

Commenting, Michael Lynch, fraud expert at CPP, told the Yorkshire Post: "Our report demonstrates that corporate identity fraud is a real concern for businesses.

"It's key that organisations ensure that they have secure methods of storing sensitive information to avoid falling victim to this growing problem."

Earlier this week, a report published in Accountancy Age argued that the new coalition government needs to make taxation clearer for smaller businesses so as to avoid a rise in insolvencies.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.