Fraud in UK businesses continues to reach new heights.According to the data KPMG“The total value of reported alleged fraud cases of £100,000 or more in UK courts will increase by 151% from £444.7 million in 2021 to £112 million in 2022.” As a result, increased regulation is encouraging businesses to manage fraud more proactively.
Business and banking integration provider AccessPay has launched Detect, a new fraud and error detection tool. According to Electronic Payments International, this is the first in a series of anti-fraud and error-proofing solutions designed to support operational resilience and manage fraud as required by the UK’s new UK SOx corporate governance reforms.
Detection uses a set of predefined rules that can be modified later to build a continuous profile of anomalous activity. Any unusual activity is detected by the traffic light system, which alerts the organization to any individual transactions that require attention.
“Standards and expectations related to how businesses manage their operational resilience and fraud risk are rising. We’ve already experienced this in financial services, where regulated firms have to comply with new operational resilience rules, and now large corporates also have UK SOx,” AccessPay CEO Anish Kapoor said in a prepared statement.
“However, the risk of fraud and error is a real concern for all businesses, regardless of size, and can have significant financial implications,” he said.
What is British SOx?
this UK SOx is the unofficial name for the UK government’s new corporate governance regime. Directors are expected to introduce new reporting requirements requiring additional time and resources to be devoted to compliance.
Specifically, directors will be required to report on steps taken to prevent and detect fraud. Companies are also required to report on their approach to managing and monitoring risk.
Businesses are well aware that fraud is steadily increasing and its impact can be devastating. But while fraudsters appear to have an unfair advantage in deploying new schemes using the latest technology, companies also have the same technology to fight back. A recent report Javelin identified fraud detection solutions currently on the market that companies can use to reduce fraud.