Companies 'fear fraud more than burglary'

Click to follow
The Independent Online

Forget burglar alarms. Companies are more worried about being ripped off by one of their own employees than being ransacked by thieves, research claims today.

Forget burglar alarms. Companies are more worried about being ripped off by one of their own employees than being ransacked by thieves, research claims today.

Fraud ranks higher than burglary as a threat to business security, according to a survey of owner-managed businesses by the accountancy firm MacIntyre Hudson.

A growing fear of white-collar crime led 38 per cent of businesses to cite fraud as their biggest concern, against 36 per cent that were most worried about burglars. Of those concerned about fraud, the biggest fear centred on being defrauded by an insider - 27 per cent of owner-managers cited this as their biggest potential corporate threat.

Yet the survey suggests that businesses falling victim to fraud have only themselves to blame: just 39 per cent of owner-managers carried out on-the-spot checks of employees.

Howard Lewis, at MacIntyre Hudson, said staff would "abuse trust" unless "owner-managers foster an environment where trust is combined with vigilance and backed up with robust systems to remove temptation".

The survey also found that less than half the respondents double-checked new employees' qualifications and only one-third investigated whether they had criminal records.

Comments