retailworld
04-02-2009, 01:19
The value of fraud cases reaching UK courts last year hit £1.1bn.
That's the highest level since 1995, according to KPMG's Forensic Fraud Barometer. This report may sound like the missing link between CSI: Miami and Howards' Way, but it clearly highlights some very real problems, and predicts that worse is on the way.
There is of course a logical connection between recession and fraud. As well as people turning to illicit means to protect their usual standard of living, even honest managers may be tempted into some creative accounting to cover up the damage done by falling revenues and rising debts. Accounting frauds were widespread in 2008, with 34 cases worth a total of over £145m, compared to 30 cases worth £22m in 2007. And this is before the effect of the recession has had a real effect. According to KPMG, following the recession of early 1990s, the full wave of fraud didn't hit the courts until 1995.
So we can expect the blizzard of fraud cases to worsen. But who are the criminal masterminds we should be looking out for? They apparently take many forms. KPMG highlights the financial controller of a data firm in Exeter, who wrote cheques to himself to buy three cars, including an £84k Bentley. He also ran up credit card bills of £150k, and diverted £130k from the business into his wife's company. Equally ambitious, although far more inept, was the man who stole company cheques, wrote one out to himself for £500k, and tried to pay it into his account via the bank's self-service machine. Meanwhile a Midlands woman stole £350k over two years from her vending company employer - including £70k in coins. Listen out for any employees jingling as they cross the car park...
Source: Management Today (http://www.managementtoday.co.uk/newsalerts/article/877956/fingers-tills-uk-fraud-cases-rise/?DCMP=EMC-Daily%20News)
Is internal theft on the rise? What do you do to protect your business?
That's the highest level since 1995, according to KPMG's Forensic Fraud Barometer. This report may sound like the missing link between CSI: Miami and Howards' Way, but it clearly highlights some very real problems, and predicts that worse is on the way.
There is of course a logical connection between recession and fraud. As well as people turning to illicit means to protect their usual standard of living, even honest managers may be tempted into some creative accounting to cover up the damage done by falling revenues and rising debts. Accounting frauds were widespread in 2008, with 34 cases worth a total of over £145m, compared to 30 cases worth £22m in 2007. And this is before the effect of the recession has had a real effect. According to KPMG, following the recession of early 1990s, the full wave of fraud didn't hit the courts until 1995.
So we can expect the blizzard of fraud cases to worsen. But who are the criminal masterminds we should be looking out for? They apparently take many forms. KPMG highlights the financial controller of a data firm in Exeter, who wrote cheques to himself to buy three cars, including an £84k Bentley. He also ran up credit card bills of £150k, and diverted £130k from the business into his wife's company. Equally ambitious, although far more inept, was the man who stole company cheques, wrote one out to himself for £500k, and tried to pay it into his account via the bank's self-service machine. Meanwhile a Midlands woman stole £350k over two years from her vending company employer - including £70k in coins. Listen out for any employees jingling as they cross the car park...
Source: Management Today (http://www.managementtoday.co.uk/newsalerts/article/877956/fingers-tills-uk-fraud-cases-rise/?DCMP=EMC-Daily%20News)
Is internal theft on the rise? What do you do to protect your business?