Employee Fraud Spiralling Out of Control in the UK

You have read it before on TheBulletProofBlog – the tougher times get, the more likelihood that people will resort to criminal measures.

We reported it regarding the theft of copper from Churches, Hospitals, Schools – even from new homes still under construction. We brought to your attention the fact that thieves have become bolder, evidenced by the theft of manhole covers in public streets and drilling into fuel tanks on vehicles as petrol and diesel prices rise.

In “Personneltoday“, it is reported that employers have been put on “red alert” as the downturn in the economy is prompting employees to make ends meet by dishonest means. One figure that employers every where are bound to find shocking is the fact that employee fraud has cost UK companies more than 77 Million Pounds Sterling (approx. $150,000,000.00),just in the first half of this year alone.

The most disturbing aspect of this figure is the fact that it is up from 10 Million Pounds Sterling (approx. $18,000,000.00)in the same period last year. This represents more than an 8 fold increase in employee fraud in a 12 month period.

The report was conducted by the accountancy firm BDO Stoy Hayward. Mr. Simon Bevan, the head of fraud services there attributes the escalation in criminal activity amongst employees to; “spiralling personal debt as a result of mortgage,food and fuel price hike”. Sound familiar?

The population of the UK is one sixth that of the United States. It is frightening to imagine what the figures will look like from U.S. businesses at the end of this year and beyond. In 2002, employee fraud and abuse cost U.S. businesses $6 Billion Dollars (independently reported by the “Association of Certified Fraud Examiners” of which SEXTON is a member).

What would be the outcome to U.S, businesses if fraud costs escalated 8 fold to $48 Billion Dollars by year’s end? How many would go under? How much further damage would that inflict on the already struggling economy? The economic circumstances in the U.S. are certainly similar to those of the UK.

U.S. businesses beware. Be proactive and fight fraud and abuse before it is too late. Your very survival just may depend upon it.

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