Sunny

Sunny

max temp: 17°C

min temp: 10°C

Search
Suffolk Business Awards 2018 Tickets

Employee fraud ‘cost East firms £6.3m last year’, data reveals

PUBLISHED: 17:27 19 September 2017

Akhlaq Ahmed, forensic partner ataudit, tax and consulting firm RSM. Picture: RSM

Akhlaq Ahmed, forensic partner ataudit, tax and consulting firm RSM. Picture: RSM

Archant

Corporate employee fraud cost businesses in the East of England more than £6.3m last year, according to data.

New information obtained by audit firm RSM under the Freedom of Information Act revealed the region’s firms submitted 76 reports to the police about employee fraud in 2016-17.

Nationally, losses from employee fraud amounted to more than £40m, according to the data from ActionFraud, the UK’s national fraud and cyber-crime reporting centre,

Verified losses in the Essex police area amounted to £4.4m from 28 incidents, putting it third in the table, after Metropolitan and City of London.

Suffolk lost more than £9,000 from four fraud incidents, Norfolk, more than £3,000 from one incident, and Cambridgeshire nearly £1.1m from 18 incidents.

Internal or employee frauds occur when fraud is committed against the company or organisation a person is working for. They can include payment fraud, procurement fraud, travel and subsistence fraud, exploiting assets and information or receipt fraud.

According to recent research from CIFAS, a not-for-profit fraud prevention membership organisation, almost half (47%) of internal frauds are discovered as a result of internal controls and audit. However, a growing number are coming to light as a result of staff raising concerns with line managers, or via whistleblowing channels.

RSM forensic partner Akhlaq Ahmed said: “The levels of reported employee fraud and the resulting losses are already high, but this is likely to be the tip of the iceberg. Sadly, a great deal of employee fraud goes unnoticed and unreported, and businesses are simply not doing enough to prevent losses.

“Understandably, employers want to demonstrate that they trust staff to carry out their duties, but there is a balance to be struck by making sure that sensible and effective oversight and controls are in place to prevent abuse.

“In our experience, fraud is often carried out by employees who may have been in post for some time and who know where the weak points are.

“They can often be motivated by greed, lifestyle aspirations, debts or addictions.

“To counteract the threat, companies should take proactive measures to monitor payments.”

The parents of a 15-year-old missing girl from Ipswich have made an emotional appeal for her to come home.

Suffolk police have issued a renewed appeal for witnesses after man in his 20s was stabbed in Ipswich.

A 36-year-old man from Ipswich has been jailed for seven-and-a-half years after being convicted of an attempted rape and three sexual assaults.

Youngsters across Ipswich are set to be given free iCards for the summer holidays which will allow them to enjoy activities across the whole six week break.

Drama, art and maths lessons were on the timetable when our photographer visited Felixstowe’s Grange Community Primary School in 1990.

A man has avoided going straight to jail for selling counterfeit goods on Facebook.

A private company has been awarded a five-year contract to run the NHS 111 helpline and out of hours services in Suffolk and north east Essex.

Suffolk and north Essex will bask in sunshine next week and temperatures could reach a scorching 30C (86F) - making the region as hot as Spain.

A woman discovered an intruder inside her Ipswich home on Wednesday and ran to a neighbour to raise the alarm.

Police are appealing for information after jewellery was stolen during a daytime burglary in Hintlesham.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Ipswich Star daily newsletter
Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24