What Is Complex Fraud?

Something all businesses never want to have to deal with is a case of fraud, but unfortunately illegal activity resulting in the loss of money is becoming increasingly common. Therefore, it is important for companies to fully understand what it entails and how they can stamp it out. 

Difference between fraud and complex fraud

Fraud involves someone gaining money that does not belong to them through illegal means, such as lying or tricking the person whom the finances belong to. 

The difference between this and complex fraud is that the latter is when the crime is committed by someone who has a relationship with the perpetrator and they, therefore, trust.

This not only impacts the victim more because this trust has been broken, but it questions whether the people closest to them, whether employees, friends or relatives, can be trusted with their financial information. 

It also makes them consider their levels of security, such as their password protection, where they hold their assets, and who they disclose information to. 

Why is it hard to find out about complex fraudsters?

Unlike opportunistic fraudsters who are likely to target individuals or companies once for a large sum of money, complex fraudsters are far more subtle so they can continue stealing money without being caught. 

This, therefore, might involve them taking small amounts regularly, so the financial losses are harder to spot. 

What’s more, they might also have knowledge of the business’ anti-fraud systems in place. Therefore, they know how to avoid being caught out by it by targeting its weak points.

By having so much information about the company or individual, they will also be privy to facts others will not know, such as when security might be lower than usual and where money is being moved to. 

Although the Financial Ombudsman Service received 21,918 fraud and scam complaints between 2023 and 2023, which is a rise of 19 per cent from the year before, this is likely to only account for non-complex cases. This is because complex cases typically take much longer to discover, as they tend to go under the radar for a long time. 

However, when they are found out, they are likely to be far more financially damaging than simple fraud cases. 

How are complex fraud cases discovered?

If a business or individual senses money is being discreetly embezzled by someone they trust, they can use fraud investigation experts to help them find out whether their suspicions are accurate.

They will be able to analyse the evidence, use asset-searching tools, and employ fraudulent techniques to uncover a potential perpetrator. 

The team of investigators will be able to find the location of the stolen funds, as well as the criminal, if illegal fraudulent activity is occurring. 

This will not only help the victim recoup their lost assets, but also remove the person of trust from their team, and reconsider their security measures in the future.