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The real threat of Employee Fraud

Posted on by advancedcheck

It’s International Fraud Awareness Week 11-17 November 2012.  Many businesses trust their staff and would never imagine they would be a victim of Employee Fraud, but with fraud so prevalent in society it would be naive to believe it doesn’t exist.

The Annual Fraud Indicator (AFI) published in March 2012 by the National Fraud Authority estimates that fraud in the UK cost the economy £73billion in 2011. 

Insider enabled fraud is where an individual uses their knowledge and abilities as a member of a company or group, effectively abusing their position to conduct a fraud.  Employee Fraud is one type of this.  CIFAS has identified the following types of Employee Fraud;

CIFAS’ report ‘Employee Fraud: The enemy within’ warned: “The lack of employee recruitment checks and controls in some organisations lies at the heart of the employee fraud problem. They are the first line of defense in stopping the criminals placing individuals inside your organisation.”

CIFAS also states that a balance must be sought between employee and employer to encourage a relationship of trust.  This can be sought by introducing appropriate risk based processes dependent on the industry, organisation, and risks.

Driving licence checks have a role to play in this.  If an employee is required to drive for work their employer has a ‘duty of care’ to ensure they are fit to drive and appropriately licensed.  If they don’t drive the employer may use their driving licence as a form of identity.  In both cases manual checks are open to error and potential frauds could go unnoticed. 

An electronic driving licence check using data from the source authority DVLA saves time, is inexpensive, and allows you to be certain of an individual’s entitlement to drive and the validity of a driving licence you are presented with.  Used as part of your employee recruitment checks, driving licence checks can help limit a business’s risk of fraud and more, including damage to your brand’s reputation.