8.18 NetFraud in the United Kingdom: A Statistical Study

SAS, the world's largest statistical software company, recently commissioned a survey into fraud in the United Kingdom and uncovered some frightening statistics: 62% of the organizations questioned across the retail, telecommunications, finance, and public sectors have no measures in place against fraud over the Internet, a crime that grew by 20% last year alone, according to British officials. The survey showed that 84% of businesses feel the Internet is not secure, yet 72% plan to continue investing in e-business because they believe the benefits outweigh the dangers of Internet fraud.

While the benefits of e-business may induce corporations to forge ahead, cyber criminals are forging ahead as well, and "e-fraud" will continue to grow as e-commerce increases. Fortunately, Internet fraud can be detected and prevented. Analytical software can be used to model and predict suspicious patterns of behavior. Despite the potential return on investment, there is still some apathy among organizations about fraud.

Twenty percent of managers responsible for fraud prevention in U.K. businesses feel that Internet fraud is not a high priority at board level. This view is reinforced by the fact that 34% of those interviewed believe that fraud has little impact on their bottom line. However, four out of five people interviewed are concerned about the threat of fraud committed by other companies or subcontractors. An even higher 92% indicate concerns about the threat of fraud committed by customers or the public. The survey found that 90% had concerns about the threat of employee fraud.

Of those questioned, half feel that investment in technology is the only way to deal with fraud in the future. However, slightly more than 75% of those with fraud measures in place believe that they are sufficient for the company's needs. Despite the worries outlined in the survey, only 36% of the organizations questioned are planning to introduce new fraud measures in the next 12 months.

Fraud can be extremely difficult to detect, especially fraud perpetrated by insiders who know about a company's systems. The difficulty of detecting fraud grows proportionally to the size and complexity of the organization. But implementing anti-fraud systems and uncovering suspicious activity can improve working practices, erase security issues, and simplify e-business processes, making them more secure and reliable. These strategies are essential for any company wishing to operate both economically and efficiently in the digital age, while safeguarding the public's confidence and trust in its Internet operations.