A third of frauds committed by employees
Employees, often in collusion with suppliers or customers, are responsible for a third of all reported frauds, new research by BDO has revealed.
Fraud by employees far outstripped frauds committed by external parties such as computer hackers or organised crime, according to the Fraud Watch survey.
BDO said many companies mistakenly put the emphasis on external problems, rather than recognise the threat posed by insiders.
The firm called this ‘misguided’.
‘Our research shows that the majority of fraud is much more likely to be committed by employees and directors who know the systems and can override controls,’ BDO said.
Last month KPMG profiled the average fraudster and found him to be a long-serving male executive.
The BDO survey is due to be updated every six months.