This is according to the CIFAS Staff Fraud Database which has analysed staff frauds filed during the 12 months from July 2008 to June 2009.
The effects of the recession are clearly demonstrated by the number of frauds filed by CIFAS Staff Fraud Members during the 12 month period to June 2009. Cases filed for ‘Dishonest action by staff to obtain a benefit by theft or deception' (for example, the falsification of expenses or time sheets and targets) increased by 69% in the first six months of 2009 (when compared with the last six months of 2008).
In contrast, this is counterbalanced by a dramatic reduction of 74% in the number filed for including serious falsehoods in application information or supporting documents. The scale of the reduction reflects the drop in vacancies and recruitment activity throughout the economy, however, rather than a change in morality.
Of particular interest, in the 69% increase of dishonest actions by staff, is that the number of women filed for this reason during the first half of 2009 more than doubled when compared with the last half of 2008.
The ways in which staff frauds are being identified also reveal some interesting trends:
- In the last half of 2008, customer warnings accounted for just over 1 in 5 cases filed to the database. The first half of 2009 has seen this increase to just under one third of all cases filed: showing, beyond doubt, the vital role played by customers.
- In the first half of 2009, 2 in 5 frauds were identified through internal processes and audit procedures, demonstrating the continued importance of business having robust checks in place.
- The role that staff can play in preventing fraud taking place inside a company cannot be overestimated. It is vital for businesses to adopt formal processes to encourage those who witness fraud in the workplace (before customers or internal audit procedures might spot fraud) to step forward without fear of reprisals.
