Employee Fraud

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Employee fraud cost UK businesses £40,000,000 last year.

 

Greater London was the worst affected area for employee fraud last year, with £7.1m in losses reported to the Metropolitan Police caused by 93 incidences of fraud. Meanwhile, the City of London Police received reports of £4.7m losses caused by 14 incidences, and the police in Essex dealt with reports of £4.4m caused by 28 incidences.

 

According to Office for National Statistics data published in July, fraud accounted for 3.4 million – or roughly 31 per cent – of the 11 million crimes reported in the UK in the year to March 2017.

 

OK, nice statistics, but (in my view) that’s a ‘bolted horse’.

 

We work with companies to reduce their employee fraud and theft. One client of ours averaged £350,000 per year in fraud related loss. We reduced that to zero within the space of 6 months.

 

There seems to be a culture in business of not wanting to address employee fraud and theft issues on a preventative level or investigation of suspicion level. Yet, there is no other area of business security management that seems to be managed on an after the event basis.  Companies invest heavily in cyber and physical security as a matter of course, even though they’ve not been ‘got’.  So why not protect the company from employee fraud and theft in the same manner?

I don’t know the answer to that question…and nobody in that decision making position has ever been able to answer it for me either. Peculiar.

 

Let’s look at a notional example based on the above Police statistics:

 

Company 1

THREAT LOSS ANNUAL INVESTMENT
CYBER £0.00 £250,000
PHYSICAL £0.00 £150,000
INTERNAL FRAUD & THEFT £75,000 £0.00

 

Madness? I think so.

 

If you’d like to discuss how Verrimus could reduce your Employee Fraud & Theft liabilities, contact sarah@verrimus.com and we’ll happily offer you a free consultation.