A recent accounting firm survey on worldwide workplace fraud finds that senior managers are increasingly committing fraud.
Middle or senior management commit over half of all employee fraud, according to the survey. In the United Kingdom, the percentage of annual fraud cases committed by senior managers has increased six-fold since 2011, from three percent to 18 percent. In particular, managers over the age of 50 committed three times as much fraud in 2015 as in 2014.
Although middle-managers still commit the most fraud in the UK at 36 percent of cases, that number has dropped significantly from 65 percent in 2011. Fraud among junior staff has also declined.
The difficult economy may be one cause of increased fraud among senior managers, with some older employees looking for ways to compensate for reduced pensions. Joon Ian Wong "The employees defrauding their companies are increasingly senior," qz.com (Feb. 25, 2016).
Anti-theft policies and procedures are essential, but they are not enough. The only way to stop fraud is by training employees on how to spot employee embezzlement and fraud and the necessity of reporting any suspicious activity.
Embezzlement hurts all employees, causing employers to have reductions-in-force or to cut benefits. All employees must understand this important fact and their responsibility to report suspected fraud.
Likewise, make sure senior employees understand the rules apply to everyone equally.
If fraud is reported, immediately investigate any reports of fraud through a competent third-party investigator. Ignoring signs of fraud allows employee embezzlement to continue for years and could cost hundreds of thousands of dollars.
Via: Hartford Help