In Q3 2011, the percentage of fraudulent emails in spam traffic increased twenty times, rising from 0.1 per cent last quarter to 2 per cent of all spam traffic in Q3. The quantity of fraudulent messages is striking, but so is the variety of social engineering techniques deployed. On one level, attackers used tried-and-trusted tricks, sending email offers on behalf of online games to steal usernames and passwords, or fake notifications from major organisations which then link to a phishing resource.

The basic principle underlying the concept of wrongful trading can be summarised in the simple phrase, 'If you are in a hole, stop digging', while the concept of fraudulent trading covers the more serious 'intent to defraud.' This article discusses these risks to directors and how to deal with them.

What Are Wrongful Trading and Fraudulent Trading And When Do They Apply?

Fraud seems to be a problem that many do not give much importance to until it impacts them. Many people do not take care of themselves, eating and smoking until obesity or cancer impair their lives. The fact that prevention is better than a cure is just as true for fraud as it is for diseases. Given that unlike some aspects of health most fraud is completely preventable at very little cost to an organisation, this is surprising.

In the majority of cases, you need to be a real "people person" if you want to succeed as an entrepreneur. If you own or run a business, you need to be able to interact with people of all shapes and sizes, personality types and origins, if you are to do well in the cutthroat business world of today.

Almost a third of UK businesses, (31%), have been targeted by fraudsters over the past eighteen months, reveals recent research carried out by Graydon UK, the commercial credit referencing agency.

The survey also finds that 22% of firms believe that the problem of commercial fraud is getting worse. According to Martin Williams, Managing Director of Graydon UK: “Fraud remains a persistent threat to business stability.

Insufficient security checks and the complexity involved in taking online payments are leaving small firms exposed to payment processing fraud, the Forum of Private Business is warning.

Accepting card payments online is an increasingly important source of revenue for small firms but many business owners have little or no experience of the contractual processes that can be involved.