Cifas warns that new fraud offence may leave SMEs exposed

The plan places a greater focus on fraud, which includes greater prosecution and disruption of offenders. This follows the recent announcement that fraud will now form part of the Strategic Policing Requirement (SPR), requiring police forces to include fraud within their individual policing plans. 

The Economic Crime Plan also commits to increasing law enforcement capacity, which will be critical to delivering on those prosecution targets and providing a meaningful enforcement deterrent.

In addition to pursuing fraudsters, the Plan commits to blocking frauds and harnessing data sharing to help reduce fraud, as well as introducing a ‘failure to prevent’ fraud offence. This new offence will hold large companies responsible for frauds committed by an associated person, where that organisation did not have reasonable procedures in place to prevent fraud.

Mike Haley, CEO of Cifas, said: “I welcome the introduction of the Economic Crime Plan which I believe is a positive step towards reducing fraud.

“I especially welcome the recognition of the important part that sharing data plays in combatting fraud, however it is essential that if this is to be effective, it includes sharing law enforcement data and intelligence with industry and public sector partners.

“I am concerned that the planned exclusion of SMEs in the ‘failure to prevent’ fraud offence may inadvertently put them at greater risk of fraud. SMEs represent over 99% of UK businesses, often holding sensitive personal and financial data as well as tens of millions of pounds of funds, and so it is crucial that the plan looks to include these businesses to help better protect both them and the wider UK economy from fraud attacks."