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Understanding the long-term effects of fraud

When it comes to fraud, many people forget the severe impact it can have on a company and the employees within it. As we all know, fraud can cause major financial problems for an organisation, but many other issues caused by fraud can get overlooked. Often, the focus is on the loss of money or important information however there are many other side effects of being caught out by a fraudster.

Loss of Reputation and Brand Image


Loss of reputation and brand image can be greatly damaged when a company falls victim to fraud. This can be in the form of customers and clients losing trust in the integrity of the business and its systems. However, internal fraud can lead to clients losing confidence in the company and its employees. This may result in them cancelling existing contracts and sharing their negative experience with others causing serious reputational damage.

Company Morale


Company morale can also be affected in many ways due to fraud. An example would be that employees may feel guilty for not being able to detect fraud, this can have a negative impact on their confidence and productivity. However, if the fraud was committed by someone in a more senior position within the company, employees would lose trust towards their superiors, and this may mean that work may be substandard, or a company may lose employees.

Reduction in New Customers


Reduction in new customers is another factor that fraud will affect, it’s unlikely that new customers will feel safe to seek your services if you are involved with fraud allegations. There may be concerns of the impact it might have on their business if they are associated with a business that has been susceptible to fraud.


All these factors can lead to greater financial impact than the original fraud act itself. It can have lasting impacts on the money that your company makes, the overall happiness of staff and the way that other companies view your organisation.


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Fraud can affect a company in many ways. It can have a huge financial impact but can also have a detrimental aftershock. We understand that not many people talk about the aftereffect’s months and years after your business has been targeted so we are here to raise more awareness about the effects and make it known that fraud doesn't only affect your business financially.


Read our new blog to find out the long-term effects that fraud can have on your business.


Written by

Holly James,

Digital Marketer.

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