| Fraud is a very serious issue as it not only | | | | One of the more recent and widely recognised |
| effects people and businesses alike, it also causes | | | | actions of OFT is the fraud investigation launched |
| damage to the government and trade relations in | | | | on banks for the seemingly unfair charges |
| the more serious cases. As many people already | | | | imposed. For those of you unfamiliar to this case |
| know fraud is not simply defined as lying about | | | | the facts are relatively simple; the bank gives you |
| money that you shouldn't have, fraud actually | | | | an overdraft, if you then go over this overdraft a |
| encompasses a wide range of possible issues. | | | | charge is incurred from as little as £15 to £30 |
| Within the UK the Office of Fair Trading (OFT for | | | | and more. Since this has always been a thing we |
| short) attempt to make sure all markets run | | | | just accepted no one really questioned the issue |
| fairly for both customers and other businesses. | | | | until the banks started to fail under the credit |
| For example, even though every business strives | | | | crunch and people wanted to know why they had |
| to achieve what is known as a market monopoly | | | | to pay so much. OFT put forward a fairly simple |
| (perfect monopoly is 100% market share, but a | | | | question of why does the cost of a person going |
| more 'real' definition is 65% plus) if they did | | | | as little as one penny overdrawn cost the bank |
| achieve this goal the OFT would have to take a | | | | over £15 in order to correct for it to need to |
| look at that business and ask specific questions: | | | | be passed on? After almost 2 years there has still |
| Are they trading fairly? Are prices fair and is their | | | | been no real headway, however, the case is now |
| market dominance an issue to other businesses? | | | | under discussion and many people have managed |
| If the answers are not in the best interest of | | | | to get their money back from the banks. |
| small businesses and the customers OFT can | | | | A more recent case in the news is that the OFT |
| intervene, stopping business mergers or even | | | | and the Serious Fraud Office (SFO) has launched |
| splitting companies, as it did with Microsoft. The | | | | a fraud investigation case against sports direct for |
| second fraud investigation company usually seen | | | | fixing prices. This fraud investigation is said to be |
| in the newspaper is the Serious Fraud Office | | | | around the issue of squash and tennis balls, either |
| which is a government department which aims to | | | | way the loss of 17% in its shares has caused a |
| protect society by pursuing and prosecuting those | | | | wide issue with shareholders. |
| who commit serious and complex fraud. | | | | |