BusinessCompany NewsCorporate internal fraud set to rise, PwC warns

Corporate internal fraud set to rise, PwC warns

Credit crunch set to fuel rise in fraud ranging from fiddling expenses to customer data theft

Internal fraud within businesses in the run up to Christmas is likely to
increase as the economic downturn encourages employees to ditch normal ethics,
PricewaterhouseCoopers has warned.

PwC said there has been an increase in reports of fraud in companies in
various industries. The internal fraud can range from misappropriation of assets
and fiddling expenses to stealing sensitive customer data and misrepresenting
performance figures to help achieve better bonus

‘We know from previous recessions that internal fraud is more likely to
surface as economic conditions tighten,’ said Neal Ysart, forensic services at
PwC. ‘It is important that businesses take steps now to counteract any potential
for incidents to arise.’

‘It is not simply about someone taking the office sellotape to parcel
Christmas gifts but can be as serious as employees massaging expenses, something
that ocan have a real impact on cash flow.’

PwC urged companies to be clear about how they define internal fraud and
introduce extra management controls for areas such as expenses and other
expenditure.

Companies that cut jobs where staff can access valuable customer data should
also consider additional monitoring controls and ‘exit screening’, PwC added.

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