Of those businesses, 86% said they had experienced fraud in the last 12 months. Additionally, more than a quarter of respondents (29%) have seen multiple fraud incidents in the last year.

The results come from a BDO survey of 500 directors and business owners from entities with more than 200 employees, conducted to find out directly from the business community about their experience of fraud.

In response to the increased fraud risk, Scottish businesses are taking proactive steps to tackle the issue. According to the BDO survey, two fifths of businesses (40%) have increased investment in IT security, with the same proportion spending more on fraud detection tools such as AI and data analytics. The survey shows that anti-fraud-related expenditure has increased for four-fifths of businesses (80%).

Commenting on the findings, Alistair Rolland, managing director at BDO LLP, said: “The macro-economic environment remains challenging in Scotland and fraud also remains a significant problem for individual businesses and the wider economy. These losses directly impact profitability and can have catastrophic knock-on effects.

“It is clear that large businesses are particularly tempting targets for fraudsters who are lured by the prospects of higher gains and attracted by the potential vulnerabilities and entry points associated with organisations with high employee numbers.

“However, this year there are some positive trends. Anti-fraud-related expenditure is increasing compared to the previous year, with 70% of Scottish businesses investing between £100,000 and £250,000.

“Following the recent introduction of the Economic Crime and Corporate Transparency Act, we hope the coming year will see businesses enhance their anti-fraud infrastructure, continue the drive to establish more robust preventative regimes, and proactively monitor and respond to new threats as they arise – while also maintaining the usual tight reins on profitability and cashflow.”

According to the BDO report, 70% of Scottish businesses have conducted a fraud risk assessment within the last year, with 50% of companies surveyed providing fraud awareness training for employees during the same period.