Employee-led fraud is continuing to go undetected within UK business. There is currently no regulatory requirement to state fraud losses in a companys accounts, which would focus the minds of management on the issue.
Nor will any successful company (without glaring financial black holes) feel the need to rock the boat and undermine staff morale by introducing punitive fraud prevention policies.
But the result is that, on average, organisations are losing between 3 per cent and 5 per cent of annual revenue to fraudulent activity 80 per cent of which is carried out by employees.
For many individuals, perpetuating fraud against an employer is not perceived to be a crime, particularly when it comes to petty theft such as pilfering stationery, using the photocopier and minor expenses fiddling. There is no obvious victim and, frequently in cases where bigger sums are involved, an individual believes the money is only being borrowed to overcome a short-term problem with the full intention of paying it back later.
Organisations have no chance of driving out this endemic fraud unless they put in place the processes and technologies that automatically highlight suspicious activity.
Fraud detection techniques can achieve a real-time insight into mistakes and misdemeanours that not only saves significant revenue but also provides a major deterrent to potentially criminal behaviour.
It is about time that employers shut the door on fraud before it is too late.
Beaconsfield Old Town,