Economic crime cost UK businesses more than £40bn last year - equivalent to £100m a day, according to a recent report from RSM Robson Rhodes LLP.
The study states that, in all, UK companies lost £32bn in 2003 through acts such as fraud, embezzlement, corruption and money laundering, and spent a further £8bn seeking to combat the problem. FTSE 100 companies alone lost an estimated £500m and all listed companies lost £3bn. Although the survey confirms that economic crime is now a board level issue, nearly one in three businesses only discuss economic crime once a year or less, indicating that UK boards are not doing enough to tackle a potential business killer.
RSM Robson Rhodes undertook the survey into economic crime with the endorsement of the Home Office and the Fraud Advisory Panel and support from the CBI and others. The survey questioned over 100 businesses with a combined turnover exceeding £500bn about 50 aspects of economic crime.
The firm says that the findings show that boards are beginning to acknowledge the severity of economic crime, with 81% of respondents believing that it could affect the company's share price and 78% stating that it could have a serious impact on brand image.
However, although 93% agree that the board has ultimate responsibility, corporate denial is rife. Only 57% of UK boards believe that they have an understanding of the cost of economic crime.
