This month as in past Decembers, retailers may hire temporary staff to cope with demand, particularly in warehousing and delivery. Firms need to guard against the threat of internal fraud, according to the counter-fraud trade body Cifas. Examples of these threats posed by the dishonest include stealing goods or cash, submitting false overtime and expenses claims or facilitating fraud by others.
The Cifas Internal Fraud Database in 2019 found that more than half, 53 per cent of staff filed to the database worked in branches, retail outlets or stores. A majority were discovered by internal controls. A further 25pc worked in customer contact centres, representing a rise of 45pc in the number of contact centre staff filed to the Internal Fraud Database. There was also a 10pc increase in the number of unsuccessful fraudulent applications for employment, with many concealing either adverse credit or their employment history. The motivations and opportunities to commit internal fraud are both clear and obvious, Cifas says.
Amber Burridge, Head of Fraud Intelligence at Cifas, said: ‘It is vital businesses take a strict approach to their internal controls over this period. Although organisations may be prioritising customer experience, it is important this is balanced with security measures, including those put in place to detect and deter the insider threat.
‘As the country gears up to enjoy the festive period following a miserable year, temporary staff taken on at call centres, fulfilment houses, warehouses and distribution centres to cope with additional demand could pose a threat to organisations if the right checks are not in place. In particular, any temporary workers working from home at this time may pose additional threats due to the reduced oversight while they are out of the office environment.
‘Processes put in place now shouldn’t just be for Christmas either. It is vital organisations are aware of the insider threat at all times and take steps to prevent it. As we sail towards further unemployment and economic hardship throughout the UK, the problems we’re seeing from the insider threat now may only be the tip of the iceberg.’
John Browett, who has been CEO at a number of large retailers such as Dunelm and Dixons Retail, and is the Chairman of Cifas, said: ‘The retail industry need to band together in these times to minimise the risks of internal fraud and theft. Currently, employees caught being dishonest at one organisation could easily move to another and commit the same offence again, particularly during the busy Christmas period. By taking steps to remove this threat, such as sharing data through Cifas, organisations can protect their own finances, customers, shareholders and their companies’ reputation.’
At the staff screening agency Reed Screening, Director Keith Rosser, pictured, said: ‘Temporary workers play a key role in making Christmas happen but organisations who fail to recruit and screen temporary workers properly could see Christmas turn into a nightmare.
‘There is just as much of a threat posed to business by temporary workers as there is by permanent workers. Now more than ever, due to so much financial hardship facing people, it is essential for businesses to ensure with their supply chains that temporary workers are recruited and screened thoroughly.
‘Workers need work now more than ever, and businesses need a happy end to the year. Don’t let insider fraud ruin your Christmas.’
