When a person dishonestly makes a false representation and in doing so intends to make a gain for themselves or a loss for another, then they are committing fraud.
Fraud is a criminal activity committed by those acting in a deceitful way.
There are a number of offences within fraud which fall under three category types:
If you think you have been a victim of fraud, even if it was unsuccessful, you should report it.
If you do not report it, the fraudster will learn by this experience and may be successful next time.
All fraud should be reported to Action Fraud, the UK's national reporting centre for fraud:
You can report fraud to us, if:
You can report it:
A business being a victim of fraud can have serious repercussions. There is a risk of serious financial loss which could ultimately cause the company to become bankrupt. For this reason, measures should be taken to limit the risk posed by these types of fraud.
This type of fraud occurs when a business is started up, seems legitimate, but aims to defraud over a period of time.
Confidence can be built between the firm and a supplier by placing smaller orders using falsified details, before going on to place large orders which they then fail to pay for after receiving the goods or services.
This type of fraud is similar to the above, however it takes place over a much shorter time scale.
These fraudulent businesses use credit to obtain easily disposable goods with a high turn over (for example, electrical goods, toys, computers, alcohol), have them delivered to a third party address and sell the goods on before disappearing without paying the credit due.
Being caught out by these crimes can be very damaging to your organisation and staff. To avoid becoming a victim, it is important that you perform rigorous checks on potential employees and any organisations with which you do business.
If you suspect there is fraudulent activity taking place, contact Action Fraud as soon as possible so that it can be investigated.