A new industry body has been set up to highlight 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, which ceased publication in 2013.
The committee’s new National Fraud Indicator will be the only one of its kind and will help organisations measure and manage the impact of fraud.
It will highlight the preventative steps that can be taken to combat fraud and ultimately help protect individuals across the UK.
In 2013, the government estimated that fraud and cyber-crime was costing the UK economy £52bn every year.
But there’s been no official estimate since then.
The new National Fraud Indicator will replace this research and give the most up to date and comprehensive view of the cost of fraud in the UK. It 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, an independent firm of chartered accountants and business advisors, in partnership with Experian.
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 involved in fighting fraud, so the new committee goes 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.
Through extensive analysis, the industry body aims to change attitudes towards fraud so that it is no longer seen as an uncontrollable factor, but rather a business cost that can be managed and minimised. The group intends to demonstrate the extensive benefits available to public, private and third sector organisations in reducing fraud costs.
The new group will use pioneering techniques of fraud loss measurement, applied by the Centre for Counter Fraud Studies at the University of Portsmouth, to help create the new indicator.