header-logo header-logo

The cost of employee fraud

23 June 2023 / Rakesh Kapila
Issue: 8030 / Categories: Features , Profession , Expert Witness , Fraud , Employment
printer mail-detail
127484
Employee fraud is on the rise: Rakesh Kapila considers some examples & highlights the forensic accountancy techniques which may be deployed when investigating it
  • Examples of employee fraud and its cost to employers.
  • How employers can minimise risk of fraud.
  • Forensic accountancy techniques.

Employee fraud represents an important component of white-collar crime, and is likely to continue to be significant in the current economic climate. Data obtained by RSM UK from the City of London Police suggests that there was an increase of around 10% in the number of reported corporate employee fraud cases in the UK during 2022 in comparison to 2021.

This article provides examples of various types of employee fraud, how each category of fraud impacts on the finances of employers, key ways in which employers can minimise the risk of fraud, and the techniques deployed by forensic accountants in investigating such fraud.

Types of fraud

Misappropriation of assets

The misappropriation of assets can include the theft of cash, stock or equipment, with employers

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Quinn Emanuel Urquhart & Sullivan—Andrew Savage

Quinn Emanuel Urquhart & Sullivan—Andrew Savage

Firm expands London disputes practice with senior partner hire

Druces—Lisa Cardy

Druces—Lisa Cardy

Senior associate promotion strengthens real estate offering

Charles Russell Speechlys—Robert Lundie Smith

Charles Russell Speechlys—Robert Lundie Smith

Leading patent litigator joins intellectual property team

NEWS
The government’s plan to introduce a Single Professional Services Supervisor could erode vital legal-sector expertise, warns Mark Evans, president of the Law Society of England and Wales, in NLJ this week
Writing in NLJ this week, Jonathan Fisher KC of Red Lion Chambers argues that the ‘failure to prevent’ model of corporate criminal responsibility—covering bribery, tax evasion, and fraud—should be embraced, not resisted
Professor Graham Zellick KC argues in NLJ this week that, despite Buckingham Palace’s statement stripping Andrew Mountbatten Windsor of his styles, titles and honours, he remains legally a duke
Writing in NLJ this week, Sophie Ashcroft and Miranda Joseph of Stevens & Bolton dissect the Privy Council’s landmark ruling in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd (No 2), which abolishes the long-standing 'shareholder rule'
In NLJ this week, Sailesh Mehta and Theo Burges of Red Lion Chambers examine the government’s first-ever 'Afghan leak' super-injunction—used to block reporting of data exposing Afghans who aided UK forces and over 100 British officials. Unlike celebrity privacy cases, this injunction centred on national security. Its use, the authors argue, signals the rise of a vast new body of national security law spanning civil, criminal, and media domains
back-to-top-scroll