Small firms must improve anti-fraud strategy

In its Fraud Governance report, the FSA warns small firms the impact of a fraud attack or a series of fraud events could be particularly damaging for them. But, the report reveals only a handful of firms are developing formal risk assessment processes and, as a result, firms tend to respond to fraud in an incident-driven manner. In addition, the report notes some unclear or inappropriate allocation of anti-fraud responsibilities within firms. For example, accountability in individual roles is not clearly defined and responsibility may be de-prioritised in favour of other business needs....