Food fraud is a growing threat to the hospitality sector, with high-profile cases of mislabelling, theft, and adulteration making headlines. From the £300,000 artisan cheese heist to fake honey infiltrating global markets, the issue is complex, widespread, and financially damaging.
Ken Dulieu, Chairman of Capcon and Head of Capcon Argen, warns: “Food fraud is not just about financial losses – it’s a serious risk to public safety, brand reputation, and regulatory compliance. Businesses need to be proactive in safeguarding their supply chains, or they risk severe consequences.”
The Many Faces of Food Fraud
The Food Standards Agency’s National Food Crime Unit has identified seven key types of food crime:
- Illegal Meat Processing – Using unapproved or unsafe meat products
- Misrepresentation – Mislabelling products to mislead consumers (e.g., falsely claiming “organic” or “locally sourced”)
- Waste Diversion – Illegally reintroducing waste products into the supply chain
- Ingredient Substitution – Replacing high-quality ingredients with cheaper, inferior alternatives
- Document Fraud – Using false certifications to market fraudulent products
- Theft – Stealing food products for resale or export
- Adulteration – Adding undisclosed substances to food to cut costs or imitate higher-quality products
These crimes affect businesses at every level of the supply chain, from producers to restaurants and hospitality venues.
Why Food Fraud is Rising
The recent surge in food fraud cases can be attributed to:
- Rising Food Costs – Inflation and supply chain disruptions have driven up food prices, making fraud more lucrative.
- Global Supply Chain Vulnerabilities – Complex and often opaque food supply chains make it easier for fraudulent products to slip through.
- Growing Consumer Demand for Premium Products – The high market value of organic, sustainable, and high-end food items creates incentives for fraudsters to counterfeit them.
Marcus Jones, Managing Director of Capcon, explains: “With supply chains stretching across multiple countries, it’s easier than ever for fraudulent products to infiltrate the market. Businesses can’t afford to take supplier claims at face value – they need robust checks and ongoing monitoring.”
The Impact on Hospitality Businesses
For restaurants, hotels, and catering companies, food fraud presents several risks:
- Reputational Damage – Serving mislabelled or adulterated food can destroy a brand’s credibility.
- Regulatory Consequences – Businesses found guilty of selling fraudulent food can face fines, legal action, and loss of operating licenses.
- Financial Losses – Buying fraudulent products can lead to wasted stock, legal costs, and loss of customer trust.
- Health and Safety Risks – Fraudulent food products can pose serious health hazards, leading to potential lawsuits and harm to guests.
Ken Dulieu highlights the urgency: “Too many businesses assume that if they buy from a known supplier, they’re protected. But even trusted supply chains can be compromised. Without the right checks, businesses risk serving fraudulent products to their customers.”
How Capcon Argen Helps Businesses Combat Food Fraud
Capcon Argen works with hospitality businesses to protect against food fraud through:
- Supply Chain Audits – We conduct independent audits of suppliers to verify product authenticity, compliance, and ethical sourcing. Our investigations help businesses avoid fraudulent or unethical suppliers.
- Fraud Prevention Strategies – Our fraud resilience and risk assessments identify vulnerabilities in purchasing, supply chain management, and financial transactions, ensuring businesses are not unknowingly participating in food fraud schemes.
- Due Diligence and Background Checks – We conduct thorough background checks on suppliers and third-party vendors, ensuring businesses partner only with legitimate, trustworthy companies.
- Dark Web Monitoring – Food fraud often overlaps with organised crime. Our Dark Web Monitoring services track potential breaches, thefts, and fraud rings that could impact businesses.
Marcus Jones explains: “Fraud prevention isn’t about reacting to incidents – it’s about having the right processes in place before fraud occurs. Our services help businesses implement best practices that make them far less vulnerable to deception.”
Steps Hospitality Businesses Should Take Now
- Verify Supplier Claims – Don’t just take a supplier’s word for it; request detailed traceability reports.
- Monitor High-Risk Products – Ingredients like olive oil, honey, and premium meats are frequent targets for fraud.
- Train Staff to Spot Red Flags – Staff should know what to look for, such as unusual pricing, changes in quality, or inconsistencies in supplier information.
- Implement Internal Controls – Strong procurement and stock control measures can prevent fraudulent goods from entering your business.
Ken Dulieu advises: “Food fraud is becoming increasingly sophisticated. Businesses must take a layered approach – combining rigorous due diligence, supplier audits, and fraud detection tools to protect themselves.”
Proactive Protection is Essential
Food fraud is a persistent and evolving threat, but businesses don’t have to face it alone. With Capcon Argen’s expertise in fraud prevention, risk management, and supply chain oversight, hospitality businesses can safeguard their reputation, protect their customers, and avoid costly mistakes.
For more information on how Capcon Argen can help protect your business from food fraud, contact us.
