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In recent years, online fraud has become an increasingly important topic for businesses. Recent research showed that in 2023/24, 69% of companies had experienced attempted online fraud. Victims of online business fraud may face financial damage, reputational harm, and/or an increase in business costs. Knowledge of the nature and extent of damage caused by online fraud in the Dutch business community is essential for targeted (policy) efforts to prevent victimisation of businesses and to provide appropriate assistance to companies that have fallen victim. The current research aims to provide a representative estimate of the nature and extent of the damage suffered by businesses as a result of online fraud.
Taxonomy
An inventory of data sources revealed various classification systems used for online fraud, making it difficult to compare results from different sources. Therefore, the researchers developed their own classification system (taxonomy) with three levels: the expected gains for the perpetrator, the modus operandi of the perpetrator, and the further elaboration into different forms of fraud.
Results
Estimates were based on three data sources: police registrations, reports to the Business Fraud Helpdesk, and a survey of a panel of 600 entrepreneurs by Ipsos I&O. The survey distributed through umbrella organisations yielded an insufficient number of responses. The outcomes varied widely: the estimated number of fraud incidents ranged from just under 1,700 to almost 190,000, while the direct financial damage was estimated between 14 and 211 million euros. Police registrations lacked (reliable) information on the financial damage per incident.Recommendations
To gain better insight into online fraud in businesses, it is important that more data is collected in the future and that the quality of available data improves. The researchers make the following recommendations:- To the police: at least record whether a reporter is a private individual or a business, and the damage caused by the fraud incident. This provides better visibility of victimisation.
- To the organisations managing the data sources: use a common taxonomy for online fraud, such as the classification proposed in this research. Considering the central role of the Business Fraud Helpdesk, they could be considered responsible for this.
- To the Business Fraud Helpdesk: consider collecting business characteristics, such as sector and size, in reports. This enables more targeted policies for preventing and addressing online fraud.
