Friday 12th February, 2015

According to data from Cifas, the threat from insider fraud is growing and is increasingly sophisticated. The Telegraph reports that when it comes to employees and internal fraud, they're both a company's greatest strength and weakness.

Cifas pointed out that well-trained staff who are supported to raise concerns around wrongdoing can be as effective as some of the most complex fraud-prevention technology out there. But staff can also be the point in the chain where it all goes wrong, leading to significant financial and reputational loss for businesses.

Sometimes employees are pushed into crime, often by a change in circumstance that has resulted in extreme stress, such as debt or blackmail. Others are seduced into it – perhaps they have stumbled across a weakness or loophole in internal controls and find it relatively easy to commit the fraud, or are targeted by gangs.

Fraudsters thrive on ignorance. This is good news for businesses, because it means that there are many cost-effective steps that businesses of all sizes can do to train staff and communicate fraud policies clearly. Educating this honest majority of staff and equipping them to spot and report fraud will make a big difference.