National Fraud Authority

Help for West Midlands businesses to beat fraud

A recent National Fraud Authority (NFA) survey revealed that 28% of small businesses in the West Midlands have been victims of fraudulent activity (1). A new campaign announced today by the NFA will help the region's businesses arm themselves against fraudsters.

To kick-off the campaign businesses throughout the region will get information cards in the post with tips on protecting themselves against e-crime, such as:

• Install anti-virus, a firewall and anti-spyware software on IT systems
• Encrypt data and control who has access to it
• Insure your clients are aware that your company would never request their personal or sensitive data

Businesses will also get information on how to report fraud at Action Fraud, the UK's first national fraud contact centre, run by the NFA.

The campaign offers advice on fraud prevention and support for small businesses that have been victims of fraud. The NFA survey showed that just 12 percent of these businesses have a fraud policy in place and only one in 5 train or advise staff on how to recognise fraud (1).

Run in partnership with the Midlands Fraud Forum (MFF), Federation of Small Businesses (FSB) and Birmingham Chamber of Commerce (BCC), the campaign will also be tackling other fraud issues, such as employee fraud and company ID theft. West Midlands Police are also supporting the campaign and are active in encouraging businesses to take steps to prevent them being targeted by fraudsters.

Action Fraud is at the heart of NFA's strategy to make the UK a more hostile environment for fraud and encourages small businesses and individuals who have been defrauded in the West Midlands to come forward, call Action Fraud and report the crime.

National Fraud Authority CEO Dr. Bernard Herdan said: "By collaborating with partners in the region we will help build a lasting and effective counter-fraud effort. Fraud is rife across the region and costs businesses and all of us dearly. Recent research by the NFA revealed that small businesses are frustrated by the lack of a central reporting facility and our new Action Fraud service is a direct response to this need. It is now much easier for any fraud victim to report the crime and gain the support they need."

Andrew Gillett, Director and Steering Committee Member for the Midlands Fraud Forum, said: "E-crime is among the most prevalent of fraudulent activities with the effects often devastating for victims, whether they are multi-national companies, small or medium businesses or individuals. Awareness of the risks, together with plain advice on measures to afford some protection are the first steps in combating exposure to e-crime and fraud.

"The Midlands Fraud Forum is pleased to participate in and support NFA initiatives such as this. Today's launch of the e-crime leaflet and the practical advice offered in conjunction with Action Fraud are key elements in the continuing fight to reduce fraud."

Ken Wigfield, crimes against business spokesman for the Federation of Small Businesses West Midlands policy unit, said: "The FSB is pleased to be working with Action Fraud to improve the signposting of advice on fraud prevention and support to small businesses that are victims of fraud. The FSB's research shows that fraud costs each small business in the UK an average of £768 a year.

"With a quarter of businesses deterred from buying and selling online because of the risk of online fraud this is an important issue to be addressed in order to support economic recovery. Improving prevention, detection and support to businesses will go some way to addressing these issues."

Jerry Blackett, Chief Executive of Birmingham Chamber of Commerce and Industry, said: "Unfortunately, in times of economic downturn fraud and other crimes in the workplace become more prevalent. Any support the National Fraud Authority can give is welcome, particularly for small businesses whose resources might be stretched. And the e-crime card is a valuable tool to assist businesses in combating crime in the workplace."

If businesses do not receive the e-crime cards, this information will also be available via the following websites:

Action Fraud
Federation of Small Businesses
Midlands Fraud Forum
Birmingham Chamber of Commerce

A copy of the e-crime card is available in PDF format by following this link.

-Ends-

For more information or interview requests, please contact Scott Swinton at the NFA press office on 020 3356 1034 or email scott.swinton@attorneygeneral.gsi.gov.uk

Notes to Editors

Tips on how businesses can combat e-crime

1. Install anti-virus, a firewall and anti-spyware software on IT systems

2. Use a password at least 8 characters long and utilise a combination of different cases, numbers and characters

3. Be cautious when opening all emails and attachments

4. Produce an Acceptable Use policy for internet and email

5. Keep up-to-date with patches and software updates

6. Secure your wireless network

7. Insure your clients are aware that your company would never request their personal or sensitive data

8. Educate staff so that they are aware of the threat

9. Encrypt your data and control who has access to it

10. Employ a backup device to guard against data loss

1) NFA Fraud awareness among small business employing 10-100 employees, was conducted by YouGov. The survey ran from 15 September - 17 September 2009. A total of 531 interviews were undertaken online, with a nationally representative sample of SMEs employing between 10-100 employees.

2) The National Fraud Authority (NFA), established in 2008 is the Government's strategic lead on counter-fraud activity in the UK. It works with a range of stakeholders across the private, public and third sector. The Authority manages 15 priority areas which include improving data sharing between public and private organisations, mass marketing fraud, share sale and mortgage fraud, ID fraud and improving victim support. For more information about the NFA visit our website.

3) The NFA estimates that fraud costs the UK over £30 billion each year and targets every section of society, young and old, rich and poor, individuals and businesses. Everyone is potentially at risk. To see a PDF copy of the National Fraud Authority Annual Fraud Indicator, published January 2010, please go to our website.

4) Action Fraud is the UK's first dedicated national fraud reporting centre. It takes victim's reports of fraud, and provides them with the most up-to-date advice and guidance on getting support. Action Fraud is being rolled out across the UK and will be fully operational in all regions by spring 2010. The National Fraud Intelligence Bureau (NFIB) will receive confirmed fraud reports from Action Fraud. This partnership ensures collaboration on the detection, disruption, investigation and prosecution of fraudsters.

5) If business operators or individuals have been a victim of fraud in the last 12 months and want to report a fraud, they are encouraged to call Action Fraud on 0300 123 2040, Textphone 0300 123 2050 or visit the Action Fraud website to get advice and guidance on protecting yourself from fraud. Online reporting will be available in March 2010. The call centre is open Monday to Friday 8am to 8pm, Saturday 9am to 6pm and Sunday 10am to 4pm. The centre will be fully operational in all regions by spring 2010.

6) Anyone witnessing a crime in action should call the police on 999.

7) The Midlands Fraud Forum (MFF) is non-profit group that works with local businesses to help raise fraud awareness and provides members with the tools to combat fraud. The non-profit organisation provides SMEs with regionally-focused fraud advice. Through its endeavours MFF aims to protect, stimulate and encourage business growth in the region. The organisation liaises with other Fraud Fora representing the Midlands' interests at a national level. For more information visit the Midlands Fraud Forum website.

8) Federation of Small Businesses (FSB) is Britain's leading business organisation with over 213,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at the FSB website.

9) Birmingham Chamber of Commerce and Industry (BCC) is one of the UK's oldest and largest Chambers and represents almost 3,000 companies that employ over 170,000 people in Birmingham and Solihull. It offers extensive services to industry and commerce, having served the interests of business for over two centuries, promoting trade locally, nationally and internationally. More information is available at the BCC website.

10) West Midlands Police officers are available for interview. Call 0121 626 5221.