Employee fraud went up 40% in 2012

HRM 05 Feb 2013

Fraud committed by employees in the UK rocketed by over 40% last year, according to the UK's fraud prevention service, CIFAS.

In terms of just what employees are being fraudulent about, it’s a mixed bag. It ranges from deception in the hunt for employment, namely by holding or falsely declaring information such as qualifications or failing to disclose previous convictions. Furthermore, attempts to gain benefit by deception or manipulation while in a job (such as stealing cash from customer accounts or employers) increased by 22%.

Beyond the damage done by fraudsters within the organisation’s walls – namely to the balance sheets, customer confidence and staff morale – CIFAS communications manager Richard Hurley said it can also lead to regulatory and legal punishments to organisations. “The 43% increase in staff fraud witnessed in 2012 demonstrates, therefore, that some organisations have invested in better protection and controls – enabling them to identify and prevent more fraud. Some of the frauds, however, demonstrate that organisations remain vulnerable,” he said.

"While these types of fraud are thankfully less commonplace than fraud attempts from outside an organisation, the damage that they can cause is as serious, if not more so."

Hurley added that while completely stamping out these kinds of fraud is very difficult, responsible employers can help to do so by sharing data on confirmed cases in order to prevent such fraudsters from simply moving on to another organisation. “It must also serve as a lesson to organisations to have better support networks in place for staff who are struggling financially, so that they do not turn to committing crime within the organisation,” Huxley added.



Leave your comment
Start a new discussion

HRM Asia forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Post a Comment
HRM Asia welcomes your contribution. Your IP address is recorded in the event of a complaint.
Name *
Email *
(required, but will not display)
Comment *
Please enter in the numbers in the box left.
You are about to submit your comment. Is it:
  • Professional
  • In your own name or pseudonym, not impersonating someone else
  • Free from rude language
  • Free from advertising
  • If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.
  • 30 Jul | Frazer Jones - Global HR Search and Recruitment | Singapore
    Front Office Recruiter required to work within a leading Financial Services organisation
    30 Jul | Frazer Jones - Global HR Search and Recruitment | Singapore
    Leading Financial Services Corporation looking to hire a seasoned HR Director
    24 Jul | Frazer Jones Global HR Search & Recruitment | Singapore
    The HR Operations Senior Manager will lead a team on the management of all HR Operations as well as the revamp and improvement of current HR processes ...
    Scouting for High Potentials
    Alvin Chan, Asia HR Director, Celestica, explains the company’s four-prong approach to identifying and accelerating the growth of high-potential employee
    Talent retention through global mobility
    Unorthodox HR
    The impact of diversity on WSH
    This workshop will help you develop your confidence and skills in giving speeches. You will explore techniques for preparing and delivering talks, as ...
    This informative workshop develops the writing skills you need to make you and your readers’ lives easier
    Nanyang Tecnological University - Nanyang Business School, Open Enrolment Programmes | amyflin@ntu.edu.sg
    Programme is intended for non-finance professionals to interpret financial statements from multiple stakeholder perspective.