Fraud

I HAVE BEGAN MY RESEARCH TODAY…17.02.2014

WHAT IS STAFF FRAUD?

‘Staff fraud occurs when an individual dishonestly makes a false representation,

wrongfully fails to disclose information or abuses a position of trust, with the intent to

make a gain or to cause a loss, while undertaking duties for an organisation with which

they have a contractual arrangement to provide personal services.’

Peter Hurst MCIPD,

Chief Executive, CIFAS

INTRODUCTION

The way organisations approach the issue of staff fraud is changing in response to the increased risk. Many

organisations have historically been anxious to play down the threat from within and have been reluctant to admit to the scale of the problem or the associated financial losses. However, for many organisations, the days when HR would handle most staff fraud cases quietly with no publicity, allowing the dishonest employee either to resign discreetly or be dismissed inconspicuously, are long gone. Indeed, a number of businesses are now taking this a step further by sharing data actively with each other on incidences of staff fraud within their organisations.

research by CIFAS – the UK’s Fraud Prevention Service – has confirmed that staff fraud has a reputational, financial, regulatory, internal and customer service impact on businesses. As a result, staff fraud is now emerging as the single most significant fraud risk to the financial services industry and a serious risk to all businesses. The growing threat from staff fraud can be effectively combated by organizations co-operating and adopting a common approach that includes zero tolerance of all types of staff fraud and a rigorously anti-fraud internal culture that promotes honesty, openness, integrity and vigilance throughout the workforce.

The purposes of this guide are to raise awareness of the potential threat posed by staff fraud and dishonesty and

to provide examples of generic best practice that can help employers manage and...