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The cost of employee fraud

23 June 2023 / Rakesh Kapila
Issue: 8030 / Categories: Features , Profession , Expert Witness , Fraud , Employment
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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

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NEWS
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
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