According to CIFAS, the UK’s fraud prevention service, employee fraud has risen alarmingly in the first half of this year, with a 52 per cent overall increase compared with the same period in 2011.
The findings also showed a 24 per cent rise in lower level ‘dishonest actions by staff to gain a benefit,’ while attempts to gain employment through deceit more than doubled from 42 cases in 2011 to 109 in 2012.
It is believed that the reasons for these rises are that employees are finding the current economic climate very tough and the unemployed, or those who want to find a better job, will go to almost any lengths to get one.
Arjun Medhi, Staff fraud Adviser at CIFAS said: “As people feel the pinch, organisations must be aware that staff are working harder than ever, often for smaller rewards, going without recognition or adequate recompense.
“This can create resentment and some people will eventually resort to fraud out of a sense of entitlement or misguidedly perceiving no other way to support themselves. If organisations do not keep an eye out for these signs, or indications of staff in financial trouble, then they are leaving the door open for fraudsters.
“Additionally, the dramatic increases in fraudulent attempts to gain employment might demonstrate improved detection techniques, but they prove that all organisations need to invest in better fraud prevention.”
While CIFAS Communications Manager, Richard Hurley, added: “Organisations have invested much time and effort in putting controls in place to counter the threat of insider fraud, and these figures demonstrate that this investment is paying off; with more fraud being uncovered.
“CIFAS has long campaigned for better awareness of the danger of staff fraud, and with more being detected, a clear warning is delivered: without investment in procedures and counter fraud measures, undetected staff fraud will damage your organisation.”