Taking a lead to beat fraud
Feb 28 2003 By Nicholas Craig, The Journal
Commercial fraud is growing at a phenomenal rate. Over £40m is lost every day to fraud in the UK. In the North-East, police investigated fraud cases amounting to £100m last year.
It is great to know that this region is leading the world in the drive to beat fraud. The launch of the North-East Fraud Forum in Newcastle on March 17-18 is both welcome and timely. It unites the police and private and public sector partners in a unique venture that has captured the imagination of other countries, in particular post-Enron America.
Watson Burton is one of NEFF's founding partners, because of its growing specialism in tackling commercial and professional fraud. The firm is working on cases involving primary care trusts and health authorities in England and Wales, with 100pc success to date in recovering assets.
The growth of fraud and money laundering is of particular interest to all services which act as `gate-keepers' to client funds. Money laundering is the lifeblood of drug dealers, fraudsters, smugglers, arms dealers, terrorists, extortionists and tax-evaders.
Money laundering is also the world's third largest industry by value.
Little wonder that the United States Treasury is greatly interested and involved in the formation of the Fraud Forum that has planned a year of conferences, masterclasses and training events to combat economic crimes.
In a recent KPMG survey 90pc of business people believed that companies should be legally required to implement anti-fraud procedures and investigate fraud.
However, we are surprisingly unwilling to report commercial fraud. We feel duped, naïve, and would rather push the problem under the carpet than admit to being a victim.
This country is leading America in hauling its legislation into the 21st century. A far-reaching review of UK company law will be completed this year.
The North-East Fraud Forum is a positive, practical step forward that will succeed because of the strength and determination of its powerful partnership.
* Nicholas Craig is a partner at Watson Burton law firm.
