The Press Hacker

Going by the findings of KPMG Forensic’s Fraud Barometer, 2009 was a year that saw a new record in terms of fraud. The report states that a total of £1.3bn worth of fraud cases were brought to court. These figures also included a high proportion of employee fraud. The figures were the highest ever recorded by KMPG which began keeping track of fraud activities in 1987.

2009 was a year of many highs in terms of fraud. The highest ever number of fraud cases, 123, since 1987 involving unauthorised and illegal activities by managers and employees was recorded in this period. Thirty three cases of fraud within the departments of accounting and book-keeping were brought to the courts. These alone were worth £44m. Cases that went to the court involving fraud by company managers also saw a major surge. From £129m in 2008, they reached £335m in the period analysed. Employee losses also more than doubled from the previous year i.e. £232m from the £100m figure for 2008.

In most cases, the fraudsters were trusted and had been an employee to their victims for years. Many of these offenders were also found to have been convicted earlier. For example in Birmingham, an accountant at a property management firm diverted more than £350,000 from the employer’s coffers. He did this simply by transferring money directly from the clients into accounts which he had opened in his own name. He had a previous record of criminal activities.

According to the partner at KPMG Forensic, Mr. Hitesh Patel, the solution lies in a rigorous screening process and background checks during the recruitment process. Information about the people employed and knowledge about the risks they pose can serve as a major defence from fraud, he said. Employers can keep themselves up to date with employment relations developments with an accredited CIPD course such as the Certificate in HR Practice operated by experts in the field at Workplace Law Training.