How Your Business can Deal with Employee Fraud

by Jessica Granville | April 25, 2017 9:50 am

When hiring a new member of staff, you would rightfully expect them to do the best possible job. In return for a reasonable pay packet, you will want them to do their job to the best of their ability with integrity and professionalism. Should, however, one bad apple spoil the work of everyone else, what can you as a business owner do?

Employee fraud and its consequences are hard to grapple with. It can happen for a variety of reasons and have results ranging from fiddled expenses to massive losses in the business’s bank account. In 2015, 153 organisations in the UK[1] alone reported cases of insider fraud. Spotting it is one thing, but how should it be handled by an affected company?


Fraud comes in many forms. Job applications, references from previous employers, insider trading, accounting fraud and use of other employees’ personal information are the most common. Spotting something like that is not easy, but there are some tell-tale signs:

Legal Implications

In instances of fraud, seeking legal advice is a must. A firm like Withers Worldwide[2] can advise on employee fraud. You should ask your lawyers for tips on how to combat fraud and, if possible, take action against the employee in question. As a CEO or senior staff member, being involved directly will let the employee know that you are serious.

It is essential that your business reads up on laws concerning employee and corporate fraud. Also, as soon as you have concrete proof of fraud taking place within your company, you need to contact the local police force. The UK’s police force suggests contacting Action Fraud[3], providing the fraud matches any of their descriptions.

To stop the fraudulent employee from doing more damage, you must dismiss them from their role. Look at what constitutes a fair dismissal in your country’s employment laws and see if you’re able to do so with a good reason. If fraud is proven to have taken place, dismiss the guilty employee. According to the UK Government[4], misconduct counts as fair dismissal.

With legal advice, a firm eye on what workers are doing and a good grasp of employment and fraud laws, your business is well-placed to deal with employee fraud.

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  1. 153 organisations in the UK:
  2. Withers Worldwide:
  3. Action Fraud:
  4. According to the UK Government:

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