What is Staff Fraud?

Staff Fraud occurs when a member of staff dishonestly makes false representation, or wrongfully fails to disclose information, or abuses a position of trust for personal gain, or causes loss to others. 

Fraudulent activity perpetrated by members of staff can range from compromising customer or payroll data to straightforward theft or the submission of inflated expenses.  Staff fraud can be opportunistic i.e. it can be a completely unplanned attack purely for personal financial gain.  However, staff fraud can also be linked to a serious and organised criminal network or terrorist financing.

Increasing Incidences of Staff Fraud

The majority of staff in any organisation are honest and trustworthy.  However, there is an increasing threat posed by the small proportion of staff who act dishonestly and defraud their employer.  This could lead to an organisation experiencing a substantial internal impact, significant financial losses and an unquantifiable damage to reputation. 

Movement of Fraudsters

Moreover, it is well known that staff dismissed for (or who resigned before being identified as involved in) a fraudulent activity move freely from one employer to another, possibly perpetrating further frauds.  In addition, CIFAS – in its research entitled 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 defence in stopping the criminals placing individuals inside your organisation.”  

Solution: CIFAS Staff Fraud Database

CIFAS is able to help the responsible employer to address this problem and minimise the risk of taking on a fraudster as an employee.  

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