Regional alternative lender BCRS Business Loans and business IT specialist Superfast IT have teamed up to release a series of blogs aimed at preventing small business owners from falling victim to financial fraud.
Businesses in the West Midlands should be aware of potential fraud risks.
BCRS has deployed numerous preventative measures to reduce our risk of becoming financial fraud victims. We have worked with Wolverhampton IT support company, Superfast IT, to share some of the tactics we use to spot business financial fraud, which any business can use to reduce their risk of becoming a financial fraud victim.
Rise of Financial Fraud in the West Midlands
The number of financial fraud victims has dramatically increased in recent years and continues to rise. Impersonation scams alone, through fraudulent calls, texts and emails, have more than doubled over the past 12 months, with UK businesses losing £129.4 million in first half of 2021 (Finance UK).
Between Nov 2020 – Nov 2021, Action Fraud recorded 2,800 accounts of corporate, banking and investment fraud, including loan applications – amounting to £31.2million of reported losses in the West Midlands. That’s an average loss of £11,464 per victim, we know of some West Midlands businesses that have lost upwards of £60,000.
Why is Business Financial Fraud on the rise in the West Midlands?
The number of financial fraud cases is rising in the West Midlands. This is because criminals are turning to the internet to commit crimes. It is a criminal ‘business model’ that is working, as many small and medium sized businesses fall victim to these scams. While the scams are effective and lucrative, criminals will persist with them.
Effects of fraud in business
Financial fraud can have a detrimental effect to small and medium sized businesses. Many organisations struggle to recover from the severe financial and reputational damage. Over the next five weeks, we will be releasing a series of blogs that cover:
- Superfast IT and BCRS Business Loans Team Up to Help Prevent Financial Fraud in the West Midlands
- What types of financial fraud small businesses need to be aware of
- Principles to follow to protect your business from financial fraud
- What to do if your business falls victim to financial fraud
- How to check if a financial institution in genuine
Stay tuned for the next blog which will focus on what types of financial fraud small businesses need to be aware of.
In the meantime, follow BCRS Business Loans and Superfast IT on social media.