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Economic Crime the Most Common Crime Affecting Welsh Businesses

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Economic Crime is arguably the most common crime affecting Welsh businesses with the five most consistently reported types of economic crimes being:-

  • Asset Misappropriation
  • Cybercrime
  • Bribery and Corruption
  • Procurement Fraud
  • Accounting Fraud

Today, more than ever, it is obvious that businesses need to do everything in their power to limit their exposure to these risks and mitigate the cost of damage likely to be caused by commercial crime in the future.

Some of the claims Towergate Insurance have dealt with recently include:-

Mandate Fraud

A member of staff in the accounts department received an email purporting to be from contractors who were carrying out renovation works. It attached a letter confirming a change of bank account details. The employee rang the number quoted to confirm the change. Two further emails followed chasing up payment of the amounts due. A payment of over £1.2m was authorised and wired to the new bank account. Three days later the company was contacted by the fraud department of their bank to raise suspicions over the transaction. It was quickly established that the money had been sent to an account that did not belong to the genuine supplier and the money had gone into the account of a fraudster and had been quickly dissipated.

Fake CEO Fraud (email)

Fraudsters created a bogus email address for the Managing Director of a building contractor, virtually identical in format and appearance to the original one. They used this email address to instruct an individual in the firm’s accounts department to make an electronic transfer of £50k to a new supplier. The payment was approved by the Accounts Manager and reached the bogus bank account the same day. As approval was given by the authorized individual at the firm, the bank was unable to recall the transfer or offer any form of compensation.

Direct Dishonesty

A company discovered that the Finance Director of a European subsidiary company had been manipulating its internal financial controls and was able to cover up the fact that he had regularly withdrawn small sums of money from the business and transferred them to his personal bank account. He also used a company debit card for personal expenditure. Over an eight-year period more than £700k was stolen.

Are you doing enough to protect your business?

Commercial Crime, Cyber or Fidelity Insurance can protect organisations from loss of money, securities, or inventory resulting from crime. Fraud and embezzlement in the workplace are on the rise and eventualities can have a huge bearing on any type of organization.

If you are interested in learning more about the options available to your business, contact Tim Rees at Towergate on [email protected]

Towergate is a trading name of Towergate Underwriting Group Limited

Registered in England No.4043759 . Authorised and regulated by the Financial Conduct Authority

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At Towergate we take our time to understand your unique business and its specific requirements. We deal face-to-face with large corporations, organisations and SME’s with a local, regional, national and international footprint; businesses with complex needs requiring insurance programmes that are rarely a single product.

No matter what the size of your organisation, we will always adopt the same process to safeguard your business. We will sit down and discuss your company’s requirements with whoever we need to; the MD, the owner, the Finance Director; Health & Safety advisors; the company secretary, in-house Risk Manager or a combination of Senior Directors.

We truly believe in providing the personal touch, providing both local and national service. That’s why we have over 80 locations across the UK. Our proposition to you is underpinned by strong relationships with leading insurance partners, who in turn appreciate that we place our clients, at the centre of everything we do.

Having formed a historical presence in Wales, our Welsh offices continue to trade in Cardiff, Swansea, Barry, Bridgend, Tonypandy, Bargoed, Haverfordwest and Ammanford and form part of the Towergate Group. Formerly trading as Antur Insurance Services, CCV Cardiff, Morgan Brokers, Motaquote and Underwood Insurance Brokers our teams have a local knowledge and understanding of Welsh business practises.

As part of the Towergate Group, these business are backed by the one of the largest corporate and SME insurance brokers in the UK, which not only allows access to the general insurance market and Lloyds, but also to a number of bespoke and unique options, which can provide specific benefits for our clients.

 

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