Developing effective tools to manage the risk of damage caused by economically motivated crime fraud

Abstract

PurposeThis paper aims to examine what is meant by economically motivated crime (ECM) and to look at the typologies of offences considered to fall into this category, to analyse the effects of ECM on financial services business and assess the efficacy of steps taken by law enforcement and business to prevent, investigate and mitigate the damage caused by ECM on business.Design/methodology/approachThe paper is based on the session: “Risks to financial institutions presented by economically motivated crime” at the Cambridge 24th International Symposium on Economic Crime.FindingsMuch ECM is perpetrated by organised crime on business and the tools available to law enforcement, through legislative instruments and available resources to investigate it, are inadequate. Business does not accord sufficient recognition to the risks posed by ECM and accordingly fails to manage those risks. Models for a Fraud Policy and a Fraud Policy Statement are set out and a higher priority for fraud on the Government agenda for policing is advocated.Originality/valueThe paper addresses the impact fraud has on business and the economies of the world and highlights the threat of financial crime which is affecting everyone.