E&Y predicts fraud increase after rate rise
The rise in interest rates announced earlier this week could lead to increased workplace fraud, Ernst & Young have warned.
Yesterday (5 February), the Bank of England raised rates from 3.75% to 4%. Further rises are expected to follow throughout the year.
As a result, E&Y warned bosses that the rise will lead to more cash-strapped employees trying to rip off their employers.
The pressure will increase with each rise in rates, it said.
Personal indebtedness stands at £934bn in the UK.
This is expected to grow to over £1,000bn by the summer.
The rate increase will add an average of more than £200 on an individual’s annual repayments.
‘With interest rates now on the up, more people will become trapped in a spiral of debt and could be tempted to find an easy way out’ said E&Y’s John Smart.