BUSINESS FRAUD

Business fraud is an act that is illegal which is usually done in order to save or make money by way of deception. Business fraud does not only affect the government, specifically the tax man although this does depend on the type of business fraud being used, but also affects the consumers of that company as well as the shareholders.
Although the word consumer is thrown around in the world of business today, it does have a strong and rather large meaning. Not only does a consumer mean a person who is actually buying the product or using the service but it also means the people who are involved in that business and have a stake in it. The companies most affected by business fraud are firstly the government, as it is usually some kind of tax evasion, and secondly the businesses dealing with this fraudulent company.

Fortunately there are many safe guards put in place in order to stop business fraud before it can affect so many people. The main act that has allowed the government to act aggressively against this threat is the Serious Crime Act 2007; using this act the CIFAS (Credit Industry Fraud Avoidance System) can share information on possible fraudulent activities made by businesses.
By using this information correctly safeguards can quickly be put in place to stop loop holes in legislation and in business contracts.


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