Staff fraud on the increase

New figures have revealed a significant increase in employee fraud. Research from UK fraud prevention association CIFAS showed that employee fraud cases identified by members in 2012 soared 43 percent on 2011, up from 378 to 539 cases.

The figures included a 22 percent jump in dishonest activity by staff to gain a benefit by theft or deception, as well as a doubling of attempts to obtain employment fraudulently by withholding or falsely declaring information such as qualifications or previous convictions.

There was also an increase in the number of instances of staff unlawfully obtaining and disclosing customers’ personal data, especially to third parties.

“The damage done by fraudsters inside an organisation can impact upon balance sheets, customer confidence and staff morale,” said CIFAS communications manager Richard Hurley. “It can also lead to regulatory and legal punishments to organisations.”

“The 43 percent 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. 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.”

At Palmers, we offer specialist legal services for all matters relating to white collar crime, including the prevention of staff fraud and abuse of confidential information, and can take action on your behalf should such offences be committed.

For more information on of these services, please visit our website or contact Jeremy Sirrell.