Businesses warned on recession-driven fraud
Fraud is becoming an increasing risk for smaller businesses during the recession.
The Fraud Advisory Panel (FAP) has said that reported instances of fraudulent activity directed against small firms have risen in the economic downturn.
Ros Wright, chairman of the FAP, commented: “Recession brings enormous pressures and it’s tempting for small firms to treat fraud as the least of their worries. But coping with the consequences of even a small fraud can consume huge amounts of time and resources which are already at a premium.”
The FAP has put together advice on how small firms can best safeguard against fraud.
Staff, for example, should understand the risks from fraud and should know how to report it.
Staff expense policies need to be spelled out and employers should carry out thorough reference checks on all new employees.
The full advice can be found at: