Staff fraud doubles due to recession

Published on 24 May 2010 under category: legal

Staff fraud almost doubled last year, according to the latest figures from the UK's fraud prevention body.

CIFAS, the UK's Fraud Prevention Service, revealed that such crime rose last year by 45 per cent on 2008's figures.

The increase in fraud crime was put down to the tougher economic conditions.

Key findings included that the average length of a service from an employee accused of fraud had tripled from 1.5 years in 2008 to nearly 4.5 years in 2009.

There was a 113 per cent rise in the number of crimes involving the leaking of personal confidential details and the unlawful obtainment of such information.

Arjun Medhi, CIFAS' staff fraud advisor, said there needs to be a cultural shift to prevent escalating levels of fraud.

"An anti-fraud culture needs to remind everyone of the consequences of undertaking fraudulent actions, as well as offer help and motivation to encourage people not to choose such a course of action."

He added that employers had a significant role in reducing fraud, through making changes in the workplace.

These could include encouraging workers to talk about their personal financial problems, guaranteeing protection for whistleblowers and establishing "clear and robust procedures".

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.