More firms need to adopt staff fraud monitoring

Many businesses are putting themselves at risk with figures showing that nearly a third of global firms aren’t currently monitoring employee fraud.

The ‘Fraud and the new world of work: How to reduce risk’ report, compiled by Sterling, highlighted that the growing sophistication of fraudulent schemes – both globally and regionally – makes the need to have a system to track fraud in the workplace critical.

Steve Smith, President International at Sterling, explained that companies need to monitor for possible worker fraud not only to mitigate against risks to the business, but also to prevent the potential exploitation of others.

He said, “The fraud that businesses are exposed to today is not only far more sophisticated but also takes on many more forms than most firms are perhaps even aware of. Digital transformation has made it easier for identity fraud and theft to impact recruitment processes.

“Not only does this present a risk for firms in terms of the safety of their workforce, clients, and their data, but it also presents a threat for those at risk of exploitation. However, there is an opportunity now for screening and vetting processes to be streamlined and improved using innovative new tools to not only reduce the threat of employee fraud, but also improve the experience of candidates.”

Steve added, “With remote hiring and the growth of gig workers, there are people who are being employed to deliver work, without needing to be seen in person.

“If the identity of the individual who is actually doing the work cannot be fully verified and if it can’t be confirmed that this same person is the one being paid, there is the significant potential that someone is being exploited. Modern slavery is a very real issue today and employers may have no idea that this is an issue in their gig or temporary workforces.

“The growth of moonlighting is also of real concern. Staff working remotely can have more than one job which, if not declared, could lead to an issue with productivity for businesses. We’re seeing an increase in firms choosing to rescreen staff to weed out any signs of fraud that may have become prevalent since employment contracts were signed, but the fact that almost a third of firms aren’t monitoring for employee fraud at all is a concern.

“Employers do need to stay on top of this issue, or risk the damage to their reputation and staff productivity levels, or more concerningly face data theft or criminal activity linked to their business.”

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