Small companies must be vigilant against the threat of fraudsters after government figures revealed a rise in convictions.
Figures released by the Ministry of Justice showed the number of fraud cases reaching court rose by 52% in 2007 and numbers are expected to increase still further during an economic downturn.
"All businesses have to educate themselves as to how to protect themselves against criminals who are becoming ever more sophisticated in their approach," said Martin Williams, managing director of Graydon UK.
"For instance, internet fraudsters known as pfishers are developing more and more authentic looking websites and pop-up windows to look like major banks, designed to tempt users into providing personal bank account or credit card details.
"Businesses need to ensure that their guard is never allowed to drop," added Williams. "Companies should never be pressured to cut corners before opening up credit accounts. Validate all application data, do credit checks with a bona fide credit agency, and always look to corroborate delivery address details before dispatching goods."
The recent data revealed the number of fraud prosecutions increased from 4,267 in 2006 to 6,483 in 2007, with 87 percent resulting in guilty verdicts.
The KPMG Forensics Barometer for 2007 estimates that £1bn worth of fraud cases ended up in the courts during 2007, but this is only 2% of the estimated total fraud value.
"According to some estimates, fraud costs this country something in the region of £50bn a year so 6,483 convictions, although promising, hardly begins to deal with this huge problem in the UK," added Williams.
The 2006 Fraud Act came into force on 1 January 2007, aimed at helping police and prosecution services gain more convictions and to bring the law in line with a new generation of internet and identity theft scams.
