Fraud has been on the agenda this week as the threat posed to businesses by ever more sophisticated crimes is a major concern.

Whie UK insurers have revealed that they identified over £1 billion fraudulent claims a comprehensive report by a unique global coalition of professional bodies spanning internal audit, cybersecurity, fraud examination, risk management, financial planning and corporate investigations has highlighted the threat.

The report, Combatting Fraud in a Perfect Storm, was designed to highlight the risks and it paints a stark picture for businesses.

“From cyber-enabled crimes, AI-driven deception and crypto-related schemes to increasingly pervasive procurement fraud and behavioural schemes such as investment and romance scams, today’s threats interact across systems and value chains, creating blind spots that traditional controls fail to address,” it explained. “Fraud has evolved from isolated incidents to widespread deception that mutates faster than risk registers can capture. We show how the convergence of Web 3.0, accelerating AI and sophisticated global crime networks creates threats that outpace most organisations’ ability to respond.”

Helen Brand OBE, chief executive, Association of Chartered Certified Accountants (ACCA), explained: “Fraud is one of the most pervasive and destructive forces in today’s economy. It is not a victimless crime – every fraudulent transaction leaves a trail of harm to people, businesses, and society at large.

“The losses are staggering: ACFE estimates suggest organisations lose more than 5% of revenue annually to fraud, amounting to trillions of dollars globally. According to the Global Anti-Scam Alliance, scammers stole over $1trillion in 2024, while cybercrime costs alone were predicted to rise to and $10.5 trillion by the end of 2025, equivalent to the world’s third-largest economy if measured by gross domestic product (GDP).”

She added that beyond the financial devastation, fraud acts as a silent killer of trust and organisational value.

“It erodes confidence in markets, undermines governance, and diverts resources from productive investment to criminal networks that fuel organised crime, corruption and exploitation.”

Brand added: “The findings serve as a serious wake-up call: while 62% of respondents agree that fraud awareness training is important, only 57% believe their organisation proactively looks for fraud.

“Many functions engage only after fraud is exposed. Too few eyes actively seek it beforehand.

“The implications are clear: sophisticated modern fraud amplified by new and advancing technologies, economic pressures and shifting geopolitical dynamics cannot be countered by any single profession or jurisdiction. We must embed proactive detection into business operations, strengthen governance and accountability, and foster cultures in which raising concerns becomes safe and expected. Most critically, we must act collectively. Combatting fraud is not optional – it is essential to the trust on which our profession, and society, depends.”

The figures are significant the message stark and businesses are facing a rising fraud threat at a time when there are plenty of risks to occupy the risk management teams.

Jon Guy, Editor, 

Emerging Risks