Employee fraud increases by 41% in twelve months

Fraud Type


Jan To Dec 2010


Jan To Dec 2011


% Change


Account Fraud 40 43 7.5% Dishonest action by staff to obtain a benefit by theft or deception 156 220 41.0% Employment application fraud (successful) 14 18 28.6% Employment application fraud (unsuccessful) 91 83 -8.8% Unlawful obtaining or disclosure of commercial data 1 1 0.0% Unlawful obtaining or disclosure of personal data5239-25.0%   While the spike seems shocking at first, Richard Hurley, communications manager for Cifas, said the increased trend could be due to more awareness of fraudulent practices and techniques. He said: “The damage done by fraudsters who sit within an organisation is not just upon a balance sheet but also on staff and customer morale, reputation and can even result in regulatory and legal sanctions. “While the 14.5 per cent increase witnessed in 2011 demonstrates that some organisations are increasingly aware of, and looking out for, fraud committed by insiders, the surge must also underline how prevalent the danger actually is. To assume that staff committing fraud will not affect your organisation is pure folly.” Many are suggesting that the economic downturn is a reason for the increase, and rightly so. Nonetheless, suggesting that company’s are simply being more vigilant these days is also a fair comment. One thing all business owners ought to take from this is the importance of running background checks on staff. Risks are high anyway, and to increase that risk by forgoing the correct employment screening would be a mistake. For more information on employment screening and background checks, reach out to Mind Your Business today.  ]]>

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