According to research by Robert Half Management Resources, 53% of UK companies believe that fraud committed by their own employees is the most likely corporate crime to impact upon their business, while only 10% are concerned about financial reporting. Computer crime (17%) and consumer/client fraud (14%) were identified as the other main risks facing businesses.
On average, fewer European companies fear employee fraud (45%) but twice as many (20%) feel that fraud in the areas of financial management and reporting remain a substantial threat to today's business.
The research, conducted amongst over 1000 companies across Europe, found UK businesses to be taking a far more serious approach to corporate fraud than their European counterparts. Sixty seven per cent of UK companies have increased their fraud detection controls over the past two years, compared with just 44% across Europe.
The majority of UK businesses (85%) employ internal audit and controls in the detection of fraud, compared to 69% of European companies. External audit (37%) and anonymous fraud reporting (4%) are the other mechanisms used. Just 5% of UK companies do not employ any methods for fraud detection, whilst a notable 13% of continental businesses fall within this category.
Once an instance of corporate fraud has been detected, 52% of UK companies begin an investigation (European average 33%) whilst only 23% will terminate the contract of the employee(s) involved (European average 32%).
