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.”
“The biggest competitor you didn’t know you had. Fighting fraud has moved front and centre to become a core business issue.”
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.”
“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.
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
- 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
The Fraud Triangle – inside the mind of a thief
A financial need that motivates the individual to commit fraud, such as personal debts, addiction problems or simple greed.
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.
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.’
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