Identity fraud targeting businesses on the rise

While sophisticated scams may not have caused as much damage to companies in 2012, that doesn't mean executives should feel completely safe - particularly since a recent KPMG report found that identity fraud jumped significantly in the U.K.

"While it's good news to see a drop in the value of fraud, organizations should not be fooled into thinking that they can drop their guard," said Hitesh Patel, forensic partner at KPMG UK. "The history of KPMG's Fraud Barometer tells us that the trend is a rising one. We are simply catching our breath."

Businesses may want to boost their fraud prevention measures, as the study revealed that employees and management scams account for 80 percent of all financial losses. In addition, identity fraud nearly doubled in 2012

Companies in the United States may want to be wary of these threats, as a recent Experian report found that approximately 10,000 ID fraud rings exist in the southeastern U.S. alone. These criminals launch attacks in a variety of ways - through credit and bank cards, for instance, and through fraudulent applications. 

Avoiding corporate fraud

With constant pressure from both internal and external threats, effective fraud prevention measures are as important as ever. In a recent blog for Management Today, Class Telecom CEO Julian Miller and Simon Paterson, partner at Surrey Accountants, highlighted some useful tips for preventing fraud.

Most importantly, companies should thoroughly investigate whether the identity of potential new clients are real. Social media and other online platforms make ID theft easier than ever, so companies need to respond accordingly.

Therefore, they should always verify that the information they receive is accurate by:

- Making sure the phone numbers are real.

- Looking at websites, with a particular focus on the domain.

- Calling the prospective client if anything is suspicious.