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23 June 2023 / Rakesh Kapila
Issue: 8030 / Categories: Features , Profession , Expert Witness , Fraud , Employment
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The cost of employee fraud

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Employee fraud is on the rise: Rakesh Kapila considers some examples & highlights the forensic accountancy techniques which may be deployed when investigating it
  • Examples of employee fraud and its cost to employers.
  • How employers can minimise risk of fraud.
  • Forensic accountancy techniques.

Employee fraud represents an important component of white-collar crime, and is likely to continue to be significant in the current economic climate. Data obtained by RSM UK from the City of London Police suggests that there was an increase of around 10% in the number of reported corporate employee fraud cases in the UK during 2022 in comparison to 2021.

This article provides examples of various types of employee fraud, how each category of fraud impacts on the finances of employers, key ways in which employers can minimise the risk of fraud, and the techniques deployed by forensic accountants in investigating such fraud.

Types of fraud

Misappropriation of assets

The misappropriation of assets can include the theft of cash, stock or equipment, with employers consequentially sustaining a reduction in their assets and

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Talk of a reserved ‘Welsh seat’ on the Supreme Court is misplaced. In NLJ this week, Professor Graham Zellick KC explains that the Constitutional Reform Act treats ‘England and Wales’ as one jurisdiction, with no statutory Welsh slot
The government’s plan to curb jury trials has sparked ‘jury furore’. Writing in NLJ this week, David Locke, partner at Hill Dickinson, says the rationale is ‘grossly inadequate’
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After Woodcock confirmed no general duty to warn, debate turns to the criminal law. Writing in NLJ this week, Charles Davey of The Barrister Group urges revival of misprision or a modern equivalent
Family courts are tightening control of expert evidence. Writing in NLJ this week, Dr Chris Pamplin says there is ‘no automatic right’ to call experts; attendance must be ‘necessary in the interests of justice’ under FPR Pt 25
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