MERSEYSIDE businesses can expect an explosion of employee fraud over the course of the year, according to forensic accounting experts.
Advisers PKF say the already growing trend of fiddling and theft will be massively exacerbated by the recession.
And Liverpool, along with London, Glasgow and Birmingham, is one of the hot spots for dishonesty.
Firms need to brace themselves and take action accordingly or face damaging losses.
Mark Fairhurst, forensic accounting partner, said: “History tells us that, as corporate growth and output falls in a downturn, fraud inevitably rises.
“In any event, there has been a 240% increase in nine years, so the trend is already quite clear.
“The recipe for employee fraud has three key ingredients; personal or organisational pressures, opportunities and the belief the crime will go undetected.
“The current huge increases in personal debts that individuals are struggling to repay, along with low pay increases, will mean an increasingly number of honest staff will feel under pressure to execute frauds.”
However, Mr Fairhurst says there are ways companies can protect themselves:
“Businesses must have an effective and reliable system of internal control.
“Actually, this could be as simple as management training a keener eye on what’s going on within those functions responsible for money or assets being paid.”
The UK’s fraud prevention service reported a 69% increase in facility misuse in 2008. Most common of these is individuals paying themselves false or altered cheques.
Peter Hurst, chief executive of the Credit Industry Fraud Avoidance System, warned: "With Britain now in recession, a significant rise in fraud is inevitable, as people turn to crime to make ends meet. These figures are just the beginning. They also show very clearly that fraudsters adapt their methods in response to changes in the financial markets.”
Last year, Merseyside Police dismissed a member of staff who made £23,000 in three years by fiddling expenses.
Source: Liverpool Daily Post,UK.
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