Posted in employment
Employment-related fraud is on the increase in the UK, according to a recent analysis carried out by CIFAS.
The report claimed that there was a 43% increase in staff fraud, which was driven by numerous factors, each of which poses a significant challenge to employers and organizations.
Additional key findings include:
- The employment challenges facing many in the UK are undoubted catalysts behind the 22% increase in dishonest actions by staff to obtain benefit. This included cases of cash being stolen from customers (a 26% increase in 2012 compared with 2011) and the manipulation of systems in order to beat targets or obtain benefits for account holders (15% of all such dishonest action frauds recorded in 2012).
- There was also a 106% increase in the number of fraudulent job applications that were spotted and prevented before employment commenced, emphasizing a dire need among the population for employment.
- Successful applications for employment that were subsequently found to have contained fraudulent declarations also increased by 89%.
- The theft of customer data from a company for personal use rose by 18% in 2012 and represents – perhaps – the most serious challenge for the future. Not only does this data frequently get passed to criminal sources (who can then make use of this data for their own fraudulent purposes such as emptying a customer’s account of money), but this confronts the very way that organizations conduct business.
While this report stems from the UK, the economic factors contributing to the current employment situation there are global. We’re still feeling the effects of the economic downturn here in the US, and organizations are facing the same issues and challenges as those in the UK when it comes to employment fraud.
If you’re an employer, your best chance of not falling victim to employee fraud is by performing thorough employment screening checks on employees – both prior to and during employment. For more information on how your business can create and sustain a policy to suit you, get in touch with MYB today.