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Employee fraud is on the increase

Employers are becoming increasingly worried about fraud within the workplace, with 91% concerned about staff fraud, according to Deloitte.

In addition BDO Stoy Hayward reports that fraud committed by employees has risen to 11% compared with 2.5% this time last year. And the Risk Advisory Group found one in four CVs or application forms contained some form of falsehood in qualifications or previous job responsibilities.

Arjun Medhi, staff fraud adviser at fraud prevention service CIFAS, said: "This is exacerbated by problems with maintaining references - some employers, including many public-sector organisations, are no longer willing to provide any reference other than to confirm the dates that an individual was employed."

This comes only days after the Care Services Tribunal expressed concern after an employee, Christopher Onyeka Nwokorp, was able to work at three councils as a social worker using fake credentials.

Caprice Holdings, the restaurant chain that owns The Ivy, also hit the headlines this week for unknowingly employing illegal immigrants who had doctored French passports and inserted their own photographs.

Peter Hurst, chief executive of CIFAS, added: "The integrity of any organisation depends upon the integrity of its staff, and therefore staff fraud is a serious matter. Its effects can be far-reaching. These can include not only the more obvious outcomes such as financial loss to the organisation or to its customers, but can also encompass the mass compromise of customer data and lasting damage to staff morale and the organisation's reputation."