Gareth Hughes and Co, Chartered Accountants and Business Advisers based in Llandudno Juntion, Conwy, Wales

Business news : February 2009

Businesses Called to Guard against Fraud

Llandudno Junction-based accountants Gareth Hughes & Co are warning businesses to remain wary of fraud despite a rise in fraudster prosecutions, new figures show.

National crime statistics published by the Ministry of Justice show the total number of fraud cases went up 52% in 2007, to 6,483. However, it is feared the number of convictions do not accurately reflect the scale of the fraud problem in the UK.

Gareth Hughes, a director of Gareth Hughes & Co said: "According to some estimates, fraud costs this country something in the region of £50bn a year – 6483 convictions, although promising, hardly begins to deal with this huge problem in the UK.

“Businesses need to ensure that their guard is never allowed to drop. Companies should never be pressured to cut corners before opening up credit accounts. Validate all application data, do credit checks with a bona fide credit agency, and always look to corroborate delivery address details before dispatching goods.”

The 2006 Fraud Act came into force on 1 January 2007 aimed at helping police and prosecution services gain more convictions in this fast growing area of crime and to bring the law in line with a new generation of internet and identity theft scams.

For more information, contact Gareth Hughes & Co on 01492 593345.

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