Filings to the Insider Threat Database (ITD) at the counter-fraud trade body Cifas went up by 14 per cent last year compared to 2022. Just under half of these cases (49pc) related to dishonest action by employees. Many of Cifas’ members (typically insurers, banks and retailers) cite financial pressures as a driving factor behind the rise. Equally, in a foreword to the ‘Fraudscape‘ report, Cifas chief exec Mike Haley, pictured, said that ‘hybrid working has provided a rich seam of opportunity for criminals to exploit’.
The body points to signs of improved counter-fraud measures and staff awareness among its members, with cases of fraud detected by internal controls and employees up by 20pc and 44pc respectively.
The second most prominent case type recorded to the ITD was ‘false employment application (unsuccessful)’ which accounted for one third of all cases, compared to 44pc in 2022. More than one in three of those filed to the ITD (38pc) had been in their position for less than a year; which could mean that employees are more willing to risk engaging in dishonest conduct in the early stages of employment, the report suggested.
Duncan McLellan, Senior Fraud Intelligence Analyst at Cifas, said: “As the uncertain economic climate and cost-of-living pressures continue to create financial challenges, some employees are being driven to commit dishonest conduct. Coupled with hybrid working – which can make supervision difficult for employers – these combined factors provide enticing opportunities for individuals to exploit the companies they work for.”
And Tracey Carpenter, Insider Threat Manager for Cifas, added: “While cases of insider threat continue to rise and remain a critical risk to businesses, it’s pleasing that positive steps are being taken to improve controls and ensure gaps aren’t capitalised on fraudulently – particularly as our data shows a large increase of dishonest conduct from new recruits.
“It is vital organisations continue to monitor throughout an entire employee lifecycle too as we’re still seeing filings for longer-serving personnel. Therefore, efforts to increase staff awareness through counter-fraud prevention training and having a greater focus on staff wellbeing to support employees remain critical. Small changes can make a significant difference when mitigating the risk of insider threat and keeping workforces safe.”
The report makes calls including for cross-government leadership in the response to fraud, including a Minister for Economic Crime; a review of the law on identity theft; and a plea that social media and online platforms are included in the multi-sector response to fraud, and included in the Online Safety Act Code of Conduct as being worked out by the regulator Ofcom.
For the report in full including word from Stephen Dalton, director of intelligence at Cifas, at https://www.fraudscape.co.uk.
