UK Due Diligence a Growing Business

Business fraud has increased in recent years as the U.K. economy continues to struggle to get back on its feet.  With business fraud and investment scams rising, small firms and corporations find themselves targeted by false offers, and criminals seeking a quick financial gain.  Everything from fictitious companies and investments, to complex stock offers and other fraud types are a growing problem in the U.K.  An industry that is benefiting from the rise is UK private investigators and UK due diligence services designed to verify business deals and minimize risk.

According to the Price Waterhouse Coopers, the amount of businesses suffering from economic crimes has been rising since 2009, targeting top executives in at least 54 countries.  Out of 3,000 surveys, 84% of them are located in the U.S. or the U.K.  Some even been scammed by their own employees and people of trust inside their own operations. These U.K. businesses who engage in business relationships in Eastern Europe are at an even higher risk for fraud.

Small businesses, not only in the U.K., do not verify their employment candidates and business partners as well as they should, according to a recent report by the National Fraud Authority in London.  Many companies mistakenly consider verification services a waste of money.  Reputable private investigation firms say due diligence and background check services are a wise insurance to have in today’s world and markets. Company verification, asset searches, background checks and international due diligence is key to minimizing risk for small and large companies.

If companies and business leaders could foresee the potential damage that one scammer or criminal can make, more CEO’s and directors of risk management departments, would consider the services well worth paying for.  Internet criminals, fraudulent and false companies, and scammers offering false investments can not only be expensive, but they can bring a company down.  It’s not uncommon to suffer from serous losses after getting involved in a fraudulent deal, or even battle the case out for years legally in court and public.  The consequences are best to avoid.

The times we are living in where the internet has broken borders, has lead to increased international relationships.  More people are interested to look far beyond their domestic markets to become wealthier or increase profitability, or to find new and existing markets.  Such international deals are inherently risky, and new contacts and providers and suppliers should be vetted.  HR and other in house personnel lack the training and experience to properly verify, so many companies in London are now relying on experienced and highly trained international investigators. 

 
Best of luck,

A Hathaway
© 2013 A Hathaway