Recession 'is increasing fraud risk'

9 July 2009

The recession has made companies more vulnerable to fraud, according to one expert.

Pannone's Paul Johnson, who specializes in this sector, suggested that an increase in the number of redundancies has been a major contributor to the trend.

"Staff numbers have been cut and this means teams are often a few people down, meaning they are rushed and perhaps not checking things correctly," he remarked.

In addition, businesses have been targeted by criminals using methods such as placing people in call centers in an effort to get hold of personal details, Mr Johnson said.

He pointed to how there have been numerous reports issued by the Big Four accountancy firms since the recession began that demonstrate fraud is on the up.

Earlier this month, a survey by IoD revealed 18 per cent of company directors observed an increase in business crime in the year up to June 2009.

The most common type of business crime was fraud at 33 per cent.

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