A new industry body has been set up to gauge the cost of fraud to UK businesses, charities and the public. The UK Fraud Cost Measurement Committee will seek to revive and enhance the government’s previous Annual Fraud Indicator, last published in 2013. The committee’s new National Fraud Indicator will aim to measure and manage the impact of fraud.
In 2013 the government estimated that fraud and cyber-crime was costing the UK economy £52bn every year. There has been no official estimate since. The new National Fraud Indicator is due for release in late 2015.
Comprised of organisations that represent sectors across the economy, the industry body will be led by PKF Littlejohn, a firm of chartered accountants and business advisors, with the credit checking firm Experian.
Jim Gee, Partner and Head of Forensic and Counter Fraud Services at PKF Littlejohn, said: “Unless the scale of the problem is understood then the right solution can’t be applied. By treating fraud as a business cost, like any other, it can be measured, managed and minimised – making businesses more profitable, mitigating the effect of austerity in the public sector and freeing up more resources for worthwhile purposes in the third sector. The new National Fraud indicator will help UK Plc to achieve these benefits.”
Nick Mothershaw, Director of Fraud and Identity at Experian, said: “Preventing fraud and protecting the businesses and the people most at risk is a big part of what we do as a business. The loss of the National Fraud Indicator left a knowledge gap for UK organisations who are involved in fighting fraud, so this new committee should go some way to bridging the gap. By putting a value on the cost of fraud we aim to change the mind-set of the public and private sectors in how they deal with future threats.”
The new group will use techniques of fraud loss measurement, applied by the Centre for Counter Fraud Studies at the University of Portsmouth.
