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Company heads 'need to take active role against corporate fraud'

Published on 1 Dec 2009 under category: legal

Company directors need to assume greater responsibility for guarding against corporate fraud, a new report has stated.

Citing the increasingly sophisticated tactics being used by fraudsters, as well as the ongoing growth in the number of financial transactions being carried out over the internet, the report from PricewaterhouseCoopers has stressed that directors need to 'lead from the top' when it comes to fighting back against the problem.

As well as computer crime and ID theft, business leaders also need to raise their efforts in the fight against false accounting, corruption and bribery, all of which could lead an organisation with serious professional negligence issues.

"Directors need to be aware, more than ever, than ever of their responsibilities for fraud," Bob Semple, a partner at PwC, explained.

"The more challenging economic circumstances recently have led to increased vulnerability to fraud in all organisations."

The report, which was co-authored by An Garda Siochana in Ireland, also revealed that 26 per cent of private companies have seen a rise in corporate fraud over the past year, with this trend expected to carry on for the foreseeable future.

Earlier this month a former Aviva account manager was jailed for his part in attempting to de-fraud the insurance company.

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