The Online Lodge

The Fraud Barometer of KPMG Forensic has indicated that there has been an unprecedented increase in fraud, including those committed by workers, in last year. The study states that fraud trials amounting to more than one billion pounds were registered in the courts. This has been the highest amount in the 22 years that have been mapped by this study.

The largest number of grave cases involving management and workers were filed last year. There has been an increase of more than £200m in the incidents of fraud committed by company managers that have appeared before the court. The instances of employee fraud were also up with cases totalling £232m being recorded as compared to £100m in 2008.

The number of cases from accounts and book keeping divisions of the establishments have also increased. Almost 35 such cases totalling £44m in value were brought before the court last year. It is important to note that a number of those indulging in fraud had been working in the organisations for a long time and had won the trust of their bosses.

Another aspect revealed by a study of the report is that a record number of the accused had been convicted earlier. For example, an employee working in the accounts department of a Birmingham property management company had used another name earlier to commit theft and deception. He defrauded his current employers to the tune of £350,000 from by shifting the money from the accounts of the clients to his own account.

KPMG Forensic’s partner Hitesh Patel laid emphasis on the importance of checking the background of candidates during the recruitment process before employing them. Finding information about the job applicants before employing them and analysing the degree of risk undertaken by employing them before they are absorbed into the company can help prevent huge losses due to fraud, he said.

The Chartered Institute of Personnel and Development (CIPD) is the professional body for those involved in the management and development of people; Workplace Law Training is approved to offer programmes that meet the standards for Associate membership of the CIPD. Contact the experts there to find out about the range of accredited CIPD courses, which will provide a firm foundation in all the areas of HR and employment law.