The FSA Fraud Governance report, which examined how senior management tackles fraud risk, revealed many large firms had moved to enhance their fraud management capabilities. However it suggested that firms should do more to collect detailed and accurate data, as well as enhancing systems to detect fraud threats at an early stage. It also revealed many firms have unclear allocations of anti-fraud responsibilities, with some found to have put other business needs ahead of tackling fraud.
Philip Robinson, financial crime sector leader at the FSA, said: “A robust fraud strategy is one that is sponsored at the highest level within a firm and embedded within the culture. Fraud threats are dynamic and fraudsters constantly devise new techniques to exploit the easiest target. Firms need to continue to invest in systems and controls and manage their responses to fraud in order to avoid being targeted as the weakest link.”
The FSA confirmed insider fraud was one of the most serious threats, with staff being approached outside work and offered money to sell confidential information high on the agenda.
Rob Clifford, managing director at Mortgageforce, agreed: “Fraud is taken very seriously and firms will have a raft of provisions to tackling fraud. All sensible businesses have a clearly defined structure of tackling the issue.”
