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‘Staff fraud to rise’ claims report

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Over the past year there has been a 31% increase in staff identity fraud and a doubling of the number of confidential disclosures to third parties, a new report by UK fraud prevention service CIFAS has revealed.

The Internal Betrayal, an annual look at the state of staff fraud, predicts an alarming increase of 62% in staff’s unlawful obtaining and disclosure of personal data over the next 12 months.

The increase follows a 113% increase recorded in 2009 and, according to CIFAS, points to a link to organised crime and the increase in identity fraud.

“The threat of staff fraud is complex. Engendering an anti-fraud culture with the express support of senior management, of course, remains paramount in any attempt to counter it,” commented CIFAS Staff Fraud Adviser, Arjun Medhi.

Among the measures detailed by CIFAS to tackle staff fraud, careful examination of staff and their actions was of paramount importance.

An examination of the data analysis techniques that organisations can use to identify staff fraud were also promoted, while demonstrations of background checks on staff and job applicants, the importance of having, and following, a whistleblowing procedure, and defining and dealing with corruption could also be key.

“More concerning is the number of such frauds that not only go unrecorded, but entirely unidentified, thus leaving the perpetrator free to carry on compromising the identities of their employer’s customers,” said the report.

As the economy still struggles to find its footing, staff could be looking to boost their wages by indulging in fraudulent activity for financial gain.

Organisations that suspect their employees are using such underhanded tactics have been encouraged to confront the problem head on while keeping in mind current employment laws that protect workers from unfair assumptions.

CIFAS’s employee fraud research began in 2006, launched in consultation with the Information Commissioner’s Office, the Financial Services Authority, the Confederation of British Industry, the Trades Union Congress and Chartered Institute for Personnel and Development.


Written by Andrew Hodges

August 26, 2010 at 9:04 pm

Posted in Comment, LinkedIn

Tagged with , ,

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