80 per cent of corporate fraud involves employees

Research carried out by Glovers Solicitors claims to show that 80 per cent of corporate fraud in the UK involves employees of the organisation concerned.

And, says the law firm, whilst technology is around to detect this type of fraud, it argues that employers need to include anti-fraud clauses in their employee contracts.

Prevention is better than cure, the law firm notes, adding that employers should really consider signing up for a deterrent, punishment and protection plan - for which it can sell firms an insurance policy.

To promote its new services, the law firm has released a white paper entitled `The Enemy Within' aimed at helping employers through the insider fraud minefield.

According to Tony Bourne, a senior partner with Glovers, 90 per cent of fraudulent employees have been with their employer for more than a year and 20 per cent for more than a decade.

"It's important to appreciate that if an employee steals from his or her employer, that it is both a criminal act and a breach of the employment contract," he said.

This means, he added, that it is perfectly possible for a member of staff to be dismissed for a fraud, yet a parallel criminal prosecution to fail because of the burden of proof that is required in such cases.

For a copy of the white paper, click here...