Staff Fraud up 40% since 2008

CIFAS, the UK’s Fraud Prevention Service has released statistics regarding staff fraud recorded by members of the CIFAS Staff Fraud Database in 2010. The Staff Fraud Database, launched in 2006, enables 205 member organisations to submit and share details of confirmed cases of staff fraud. Members are drawn from financial services, insurance, telecommunications and recruitment sectors. The key findings of the 2010 Staff Fraudscape report include:

• A 3% decrease compared to 2009, but staff fraud up 40% since 2008
• Cases of obtaining / disclosure of personal data up by 63% on 2009
• 70% increase in unsuccessful employment application frauds on 2009

CIFAS also reported:

• 62% of staff fraudsters are male, 38% female
• The 21-30 age group committed most staff frauds, accounting for 58% of the total
• Disclosure of personal data accounted for 29% of all frauds committed by those under 21, the highest proportion of any age group, whereas very few people over 40 committed this type of fraud.

Barry Hetherington, MD of employment screening firm Know Your Candidate commented “clearly the figures released by CIFAS should be of concern to all employers, especially those holding personal data on consumers.  The reported increases could be due to one or a combination of factors: are they a consequence of the tough economic climate and rising cost of living? Are fraudsters stepping up their efforts to target employees of firms holding personal data? Are internal controls not strong enough? Are the rises down to more organisations simply reporting fraud to the database?”

“Employment screening is one of several tools, which used in combination, enable employers to help prevent employee fraud. Organisations which also implement robust internal controls, monitoring, on-going screening and effective procedures for reporting fraud will be in the best position to prevent employee fraud. The rise in unsuccessful employment application frauds is likely to be down to robust screening from the members of CIFAS staff fraud database rather than a large increase in fraudulent applicants. Employers with only minimal employment screening procedures in place beware – one of those 85 unsuccessful applicants behind employment application frauds may be heading your way!”

To download a full copy of the 2010 CIFAS Staff Fraudscape report click here. To learn more about the employment screening service offered by Know Your Candidate click here.

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