2 in 3 UK corporate leaders concerned fraudsters will exploit workers

• Half of key decision-makers also admit to fear of internal fraud

• Calls for organisations to build robust anti-fraud systems and cultures

• Eight ways to strengthen internal fraud defences

Research from the UK’s leading fraud prevention service, Cifas, has revealed that nearly two-thirds (63%) of decision makers in large UK businesses are worried that employees will be targeted by fraudsters, with 50% of respondents fearing staff will become an ‘insider threat’.

As many businesses prepare to recognise International Fraud Awareness Week (17-23 November), a recent Cifas survey showed leaders in charge of staff training are increasingly worried about the impact fraud could have on their organisations.

Employees are an attractive target for criminals who use different tactics to exploit their position and direct route into an organisation. Examples include phishing emails and fake documents to trick staff into downloading malicious software onto their systems or rush through payments before they have chance to challenge legitimacy.

Some fraudsters are also known to approach workers either in-person or online, promising cash in exchange for sensitive company information – data which is often used against the organisation or sold on the dark web.

The increase in hybrid and remote working also continues to pose challenges to businesses trying to reduce the threat from staff who are willing to put their companies at risk – often referred to as an ‘insider threat’ – and abuse their positions.

Rachael Tiffen, Director of Learning at Cifas, said: ‘Many organisations are fearful employees will become embroiled in the insidious world of fraud. When your workforce is your first line of defence, businesses must have robust procedures and policies in place to ensure security is not compromised and colleagues and customers are kept safe.

‘Building counter-fraud skills and developing an anti-fraud culture can help to further protect businesses, ensure employees understand the dangers of criminal approaches or insider risks, and encourage workforces to report suspicious activity.’

Download the Cifas Learning Survey 2024 for free today.

8 ways organisations can improve internal controls to detect and prevent fraud

1. Run fraud risk assessments to consistently review gaps and ensure vulnerabilities are remedied at the earliest opportunity.

2. Implement counter-fraud measures that improve business safety, such as having a robust code of conduct and procedures and policies in place that cover device and data security.

3. Invest in technology that enhances security controls on equipment, for example multifactor authentication and facial recognition.

4. Roll-out proper vetting checks through an employee’s entire lifecycle and screen regularly – regardless of their job title.

5. Provide specialist training consistently so employees continue to develop counter-fraud knowledge and upskill in how to spot and report signs of dishonest conduct.

6. Create accessible ways for staff to escalate concerns confidentially such as through their managers and/or via a whistleblowing service.

7. Be aware of any unusual patterns among staff. For example, are they now exhibiting a lifestyle that contradicts their salary? Are they suddenly disgruntled and/or reluctant to adhere to organisational controls? Look out for signs of behaviour changes.

8. Prioritise employee welfare. When staff know support is available, that can often be the difference between them seeking help or feeling they have no other option but to be dishonest.

Through data, intelligence, and learning, Cifas provides comprehensive support to help organisations add a critical layer of protection to their workforces. Find out about its Insider Threat Protect solution, Cifas Fraud and Cyber Academy courses and the Digital Learning programme today.

ENDS

Notes to Editors

For more information, please contact Hayley Paterson, Cifas Press and PR Manager, on 020 4551 7072 or press@cifas.org.uk.

Survey methodology

The survey was carried out by Opinion Matters between 2 May-3 June 2024 on behalf of Cifas with a nationally representative sample of 500 UK-based decision makers (18+). Respondents were responsible for staff training programmes/budgets and worked in companies that employed 1,000-plus people and offered hybrid options.

About Cifas

Cifas is the largest not-for-profit fraud prevention service in the UK. It has more than 750 members who represent various industries including banking, retail, insurance, and telecoms. Cifas protects businesses and individuals from fraud through effective and secure data and intelligence sharing between the private, public and third sectors. Additionally, the independent organisation offers a range of products and services to help businesses prevent fraud and delivers specialist counter-fraud training through its Cifas Fraud and Cyber Academy and Digital Learning programme.

Cifas’ data is included in the Office of National Statistics England and Wales Crime Statistics of police recorded crime and it works alongside law enforcement agencies in tackling fraud. In 2023, Cifas members prevented more than £1.8bn of fraud losses. Website | LinkedIn | X

About Opinion Matters

Opinion Matters is an independent market research agency that create bespoke market research solutions for businesses, organisations, and agencies worldwide. Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

Contact us at press@cifas.org.uk