Friday 21st February
A report, by research and analytics firm SAS, said the UK was “more reliant on ineffective manual detection techniques” than other nations and “losses are particularly high”.
The report, based on a survey of 850 business leaders across EMEA, found 40% of UK companies lost between €150,000 and over €400,000 a year, compared to an EMEA average of 16%.
However, SAS said there may be a greater awareness of the damage caused by procurement fraud in the UK and this could explain the higher reported losses.
The survey found 31% of UK businesses had been subject to contract bid rigging and 43% to duplicate invoices, compared to EMEA averages of 25% and 27% respectively.
A quarter (24%) of UK firms had experienced collusion between suppliers and 21% had caught employees collaborating with vendors they had a stake in, the survey found, compared to EMEA averages of 16%.
More than a fifth (23%) of EMEA businesses had no assigned personnel responsible for procurement fraud or were unable to say who has ownership for it.
Most organisations failed to hold more than one internal audit and supplier check a year and 22% admitted to not auditing for procurement fraud at all.
Most companies depended on manual controls and basic detection software to protect themselves, while only 14% and 9% use advanced analytics or artificial intelligence (AI) respectively.