Fraud costs UK businesses £190 million a year. More startlingly, about 40% of that figure is stolen by staff. Here’s what you need to know about the threat within.
The Internal Threat
Employee fraud is a pervasive issue that can devastate businesses both financially and operationally. According to the Centre for Counter Fraud Studies at the University of Portsmouth, employee fraud accounts for approximately 40% of all fraud losses in the UK. This equates to a staggering £76 million annually being siphoned off by those within the organisation.
Understanding Employee Fraud
Employee fraud can take many forms, including:
Embezzlement: Theft or misappropriation of funds placed in one’s trust or belonging to one’s employer.
Expense Fraud: Claiming reimbursement for fictitious or inflated expenses.
Payroll Fraud: Manipulating the payroll system to create fictitious employees or to increase one’s salary.
The ramifications of such fraudulent activities extend beyond financial loss, affecting employee morale, brand reputation, and operational efficiency.
Signs of Potential Fraud
Identifying and preventing internal fraud requires vigilance and an understanding of common red flags, such as:
Unusual Financial Discrepancies: Inconsistent or unexplained variances in financial records.
Lifestyle Changes: Employees living beyond their means without visible income sources.
Reluctance to Share Duties: Staff members who resist delegation or review of their work.
SIASS: Your Partner in Fraud Prevention and Investigation
At SIASS, we specialize in designing bespoke evidence-gathering investigations to help organisations tackle internal fraud effectively. Our services are tailored to meet the unique needs of each client, ensuring comprehensive support throughout the investigative process.
Bespoke Investigative Solutions
1. Internal Investigation Support: We guide and support your organisation to conduct its own investigation. Our experts provide the necessary tools, training, and guidance to help your internal team gather evidence systematically and legally.
2. Full Investigation Services: If preferred, SIASS can conduct the entire investigation on your behalf. Our experienced investigators will collect and analyze evidence, providing a comprehensive report that can be used for disciplinary processes or legal action.
3. Flexible Involvement: Whether you require minimal assistance or full investigative services, SIASS offers flexible involvement based on your organisation's needs. We can step in at any stage of the investigation to ensure a thorough and effective process.
Why Choose SIASS?
Expertise and Experience: Our team comprises seasoned investigators with extensive experience in handling complex fraud cases.
Tailored Approach: We understand that each case is unique and requires a customized approach to achieve the best results.
Discreet and Confidential: We operate with the highest level of discretion and confidentiality, ensuring your organisation’s reputation remains intact.
Taking Action
Preventing and addressing internal fraud requires a proactive approach. By partnering with SIASS, you gain access to expert resources and tailored solutions designed to protect your business from internal threats.
For more information, visit SIASS or contact us to discuss how we can assist with your investigative needs. Together, we can build a robust defence against internal fraud and secure a brighter future for your business.
British businesses reported £88m of insider deception in 2017/18, double the total for the previous year.
Payroll fraud is a common type of employee deception, along with fiddling expenses and stealing company data.
Businesses of all sizes are vulnerable, and it’s estimated two thirds of employee fraud is committed by workers with at least five years’ service.
From pocketing a few sticky notes and being a little creative with expense claims to making out personal cheques, inflating commission and diverting assets, unscrupulous staff have plenty of ways to cheat their employers.
SIASS has carried out countless Private Investigations for companies with this kind of issue.
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