Fraud continues to reach new heights among UK corporations. According to data from KPMG, the “total value of reported alleged fraud cases £100K or above heard in UK courts increased by 151% from £444.7M in 2021 to £1.12B in 2022.” Consequently, there has been an increased regulatory effort to encourage corporations to manage fraud more proactively.
AccessPay, a corporate-to-bank integration provider, has launched a new fraud and error identification tool, Detect. According to Electronic Payments International, this is the first of a series of anti-fraud and error prevention solutions to support operational resilience and manage fraud as required by the UK’s new UK SOx corporate governance reforms.
Detect uses a group of pre-defined rules which can later be modified to construct a continuous profile of anomalous activity. Any unusual activity is detected by a traffic light system that alerts the organization of any individual transactions that require attention.
“Standards and expectations in relation to how corporates manage operational resilience and fraud risk are increasing. We have already experienced this in the financial services sector, where regulated firms are subject to new operational resilience rules and now there is UK SOx for large corporates,” said Anish Kapoor, CEO of AccessPay said in a prepared statement,
“Yet, regardless of size, the risk of fraud and error is a very real concern for all businesses and can have a significant financial impact,” he said.”
What Is UK SOx?
The UK SOx is the unofficial name of a new corporate governance regime by the UK government. New requirements for reporting will be expected from directors, demanding more investment of both time and resources to reach compliance.
Specifically, directors will be asked to report on the measures taken to both prevent and detect fraud. Companies will also be required to report on their methods of managing and monitoring risk.
Businesses are well aware that fraud is growing steadily and its impact potentially devastating. But although fraudsters may seem to have the unfair advantage of leveraging the latest in technology to deploy new schemes, companies too have the same technology at their disposal to engage in a counterattack. A recent report by Javelin identifies what fraud detection solutions are currently available on the market for companies to use to mitigate fraud.