According to RSM the amount that businesses have lost as a result of staff fraud has doubled in the past year.
ActionFraud stated that businesses reported losses because of staff fraud of £40m in 2016-17, but that has jumped to £88m in 2017-18, more than doubling.
This could mean that more fraud is occurring, or that businesses are simply getting better at identifying it. As more and more businesses embrace digital technology this will be the case, as frauds become harder to hide and explain away.
There were over 1,400 reports to police about employee fraud, up 76% from the previous year, and the average loss per report was £62,000, up from £50,000 the previous year.
For the purposes of this report, fraud was categorised as instances where employees or ex-employees obtain property or greater remuneration that they were not entitled to legally.
It included the misuse of corporate cards, submission of fraudulent expense claims, creating fake employees on the payroll and claiming overtime for work not actually done.
It is key for businesses to have the right controls and checks in place to ensure that fraud is hard to commit, and that it can be identified should it be committed.
Fostering a culture where staff are encouraged to report suspicions and where no one individual is considered above the company’s systems will help ensure that potential for misuse is minimised.
To talk to us about how to structure your business controls and checks to ensure that your business risk is minimised, contact us on the above details.