Whistleblowers help stem tide of fraud

The value of reported fraud has virtually tripled since 2003 according to a
new survey by mid-tier firm BDO Stoy Hayward, revealing that more employees are
willing to turn whisteblowers.

According to BDO, this comes at the same time as the value of employee fraud
skyrockets, having increased by 80% since 2004, and 200% since 2003.

Overall, the financial services sector, which includes the
accounting profession, attracted the highest amount of fraudulent
activity (worth £500m) followed by wholesale trade.

However, while there is a growing culture of whistleblowing helping to deal
with this increase, less than one in ten of those willing to report fraud said
they would go directly to the police, with many potential “whistleblowers”
still fearing some form of recrimination in the work place.

The survey results come as BDO’s annual FastTrack report showed that
the value of reported fraud in the UK surged by nearly 30% in 2005, with the
sums involved reaching almost £1bn, the FT reported.

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