Internal Fraud Hits 20% of Small Businesses

Internal Fraud Hits 20% of Small Businesses

Internal Fraud Hits 20% of Small Businesses


According to ActionFraud nearly one in five small businesses have been defrauded by an employee at some point during their trading history, causing significant loss and in some cases have destroyed a business.

What is internal fraud?

Internal or employee fraud is fraud which is committed against a company or organisation a person is working for. Internal fraud can include:

  • • Payment fraud
  • • Procurement fraud
  • • Travel and Subsistence fraud
  • • Personal Management
  • • Exploiting assets and information
  • • Receipt fraud

What can you do to minimise the risk?

Often it is those on the inside of your business who can often do the most damage, due to their access to key assets and familiarity with your processes, and how they might be bypassed.

There are some simple things you can do to begin to protect yourself and your business from internal fraud.

Some examples:

  • • Pre-employment checks – Ask for independent references
  • • Anti-fraud policy – A statement providing clear guidelines for the prevention, detecting and dealing with fraud
  • • Staff behaviour – Its good management practice to monitor your employee’s performance and understand what makes then tick. This can help spot a sudden change in behaviour, lifestyle or character
  • • Controls and processes – Identify your valuable assets and think about what controls and/or processes you can put in place to help prevent the risk

We can provide an internal fraud assessment of your business and provide a report on our findings to book your internal fraud assessment today call 0114 438 9709