Fraud - is your business at risk?
Fraud by employees in positions of trust is a significant business risk.
It can happen to businesses of all sizes, from small family businesses to large corporates, and in all sectors, from retail and manufacturing to charities and schools.
It can involve bookkeepers, accountants, financial directors, heads of departments, head teachers....... people who are close colleagues and personal friends, even relatives..... anyone who is in a position of trust and responsibility.
According to accountants KPMG the typical fraudster is male, 36 - 45 years old, works in the finance function or in a finance-related role, holds a senior management position, has been employed by the company for more than 10 years, works in collusion with another perpetrator,
Usually, fraud is not detected until a significant loss has occurred, perhaps over several years. By which time it may be too late to recover the losses and the business may be at risk of insolvency.
Fraud can't happen in my business....... or can it?
The majority of businesses employ trustworthy people. But sometimes the most trustworthy people experience changes in their lives which lead them to behave out of character.
Here are some recent examples:
She had stolen the fortune – a total of £390,550 – between February 2007 and March 2014.
Worked in the accounts department for just a month before he started to steal funds.
Caused cash flow problems. Owners had to borrow money to replenish losses.
Worked for Bournemouth retailer for 23 years. Stole over a four year period
Financial controller stole more than £90,000 from Britain's top property tycoons, Candy and Candy
Failed to declare a previous criminal conviction for fraud and falsely told charity he had a Chartered Institute of Management Accountants (CIMA) qualification
Together with an accomplice, set up a fake company to claim for fictitious work totalling £141,960.
Shopaholic fraudster almost caused a family business to go bust. The firm had to lay off staff and needed a cash injection from directors to survive.
Took money from a nursery school
Staff pay at the welding company had been frozen because of the serious loss of money.
Head teacher stole £53,000 from his school to fund a gambling addiction.
Assistant accountant stole £16,000 from Bristol Audi by 'creative accounting'
Paid cheques into her own accounts for sums totalling £36,781 when she was management accountant.
Defrauded the academy of £203,950 between March 2007 and January 2011.
Her £60,000 security role at the bank included fighting fraud.