Scams Drain £42.6 M From UK Businesses: SMEs Urged to Fortify Defenses in Early 2023

Spotting Fraud: Small Business Owners Still Find It Hard

Take Five to Stop Fraud’s “Can you spot fraud?” quiz—crafted with Amazon—has rolled up its sleeves on the front lines of small‑and‑medium enterprises. The latest findings show that about one in five participants (17%) struggle to spot a scam the first time around.

How the Quiz Works

Since launching last year, more than 7,000 business owners have taken part. The quiz recreates a bustling office scene, guiding users through a series of high‑stakes scenarios that could be a genuine business opportunity or a sly trick.

Scams That Stick (and Those That Slip)

The data indicates that impersonation scams—where fraudsters pretend to be familiar names or organisations—are top of mind. These usually involve scammers calling in as a trusted bank officer or a senior executive.

But when it comes to procurement scams—where a new supplier is introduced without going through the usual vetting process—the results are worrisome. One in ten quiz takers failed to recognize the red flag.

Real‑World Impact

UK Finance’s recent report paints a stark picture. In the first half of 2023, businesses lost a shocking £42.6 million to authorised push‑payment (APP) fraud. Here, the victim is tricked into sending money directly from their account to a fraudster‑controlled one.

Businesses tend to hold higher balances, making them prime targets.
SMEs often lack advanced fraud‑detection tools and regular training, putting them at greater risk.

What This Means for Small Business Owners

These findings underscore the need for continuous education and preparedness. Even a quick refresher—like the Take Five quiz—could sharpen eyes on the most deceptive scams. Keep an ear open for “trusted” names, double‑check supplier credentials, and stay skeptical of any sudden changes in your procurement process. Trust but verify, folks!

Guarding Your Business From Scam Foes

Ever felt that adolescent anxiety when your phone lights up with an unknown number? That’s the emotional alarm your company should ring for every suspicious call or message. The Take Five to Stop Fraud quiz is designed to give both leaders and staff the confidence to spot real‑world scam calls, texts, e‑mails, and social media posts before they hit the inbox.

Why This Matters

Financial loss – A single phishing hit can bleed a small business dry.
Reputation damage – Once a customer trusts, it’s hard to regain that trust after a scam.
Recovery often takes months and thousands of euros.

Scams That Wear the Mask of Authority

One of the most clever tactics is the CEO scam. Fancy a quick walk‑through:

Criminals dial your CEO’s number or spoof their email.
They claim an urgent payment is required.
You’re instructed to break standard procedures and send money to an unfamiliar account.

Another popular ploy is the invoice or mandate scam. Picture this:

Your regular supplier contacts you claiming a bank account change.
They provide the new details and push you to act fast.
Within seconds, the money is in the hands of fraudsters.

Thought Leaders Say This

Paul Maskall, Fraud and Cybercrime Prevention Manager:

“It’s a game of cat and mouse. Businesses are getting clap‑back ready, but the cat is getting slicker. The key? Keep your guard up. Reflect on training, culture, and policies, and heed the Take Five advice: pause, think, and then act. It’s the simplest kindness your company can give itself.”

David Raw, Managing Director, Commercial Finance at UK Finance:

“Fraud is a brutal boss. Small businesses—our economy’s heartbeat—often lack the firewalls of giants. That’s why vigilance is not optional; it’s a lifeline. For any big payment, double‑check with your supplier through trusted channels. And if you haven’t yet, take the Take Five quiz to arm yourself with knowledge.”