Crime Insurance

The effect of a Crime Loss

“She nearly caused our company to close due to cash flow and loss of work, this would have meant at least six people would have lost their jobs and the closure of a well-respected family company.

Every employee is treated as part of the family, as was Kelly, these events and the complete breach of trust has hugely affected staff morale.”

– Employee jailed after stealing £30k and almost closing family business 2 March 2018

“The biggest competitor you didn’t know you had.  Fighting fraud has moved front and centre to become a core business issue.”

- PWC Global Economic Crime and Fraud Survey 2018

A tearful Ms Kitts then took to the witness stand to describe the catastrophic effect the crime has had on her business.

She said the money stolen represented a substantial proportion of annual profit and that she needed to work 2,500 hours to recover the loss.

The decision to employ Chloe could have resulted in the closure of the business.

“Some staff live above the shop and they could have lost their homes. We are a small team and everyone was in total disbelief. The impact has been devastating.”

– Worker who stole £20k from business nearly lost colleagues their jobs and homes 29 Mar 2018

“We got married in April. We put £1,000 we had been given as gifts into the business to help pay wages. She knew about that money and as soon as it hit the account she took it.”

The business was forced into liquidation two weeks ago, with the loss of six jobs.

- Mum partied in Ibiza after stealing £100k from company - which is now in liquidation 1 Feb 2017

External Crime

Social Engineering

Fake President Fraud

  • Impersonating a senior member of the organisation by email or over the phone
  • Usually an urgent request for payment
  • Sometimes request secrecy from the employee

Mandate Fraud

  • Impersonating a supplier or vendor of the insured
  • Requesting the insured ‘updates their payment details’
  • Contact details on invoice are those of the criminal
  • Subsequent payments made to criminal

Internal Crime

The Fraud Triangle – inside the mind of a thief

Pressure

A financial need that motivates the individual to commit fraud, such as personal debts, addiction problems or simple greed.

Opportunity

The fewer steps there are to commit fraud, the more likely it is to occur.  Employees learn where there are weak controls in the organisation over time.

Rationalisation

Internal justification – most people consider themselves honest and often see themselves as victims.  Justifications include ‘I deserve it’ ‘I’m only borrowing the money’ and ‘I’m underpaid and over worked.’

How do I get in touch?

To discuss your detailed insurance needs, speak to our friendly specialists by calling 01772 555576 or click here to send an email to our team.

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