Pictured above: Challinors' Fraud & Asset Recovery lawyers and joint department heads Arun Chauhan and Mark Kenkre

Speakers at a specialist Employee Fraud briefing in Birmingham revealed that ninety-six percent of insider fraud is committed by individuals employed for more than twelve months, with eighty-five percent of all business fraud committed by employees or former employees.

Organised by the Fraud and Asset Recovery Department of Midlands law firm Challinors, the 'Insider Fraud' Briefing examined the investigation issues and steps to take if a business discovers employee fraud.

Guest speaker Andrew Whittaker, Head of Counter Fraud Training at Teceris, an arm of Capita plc, revealed that work expenses fraud is the most common reported fraud, according to the Home Office Offending, Crime & Justice Survey, and that dishonest actions by staff to obtain benefits by theft and deception increased by 69 percent in the first half of 2009, according to CIFAS, the UKs Fraud Prevention Service.

Challinors specialist Fraud and Asset Recovery lawyers Arun Chauhan and Mark Kenkre, who jointly head the niche team, highlighted some of the key warning signs and danger areas of insider fraud that employers should learn to recognise, as well as some of the inventive tactics used by employees in insider fraud. They also set-out some of the red flags and systems a business should put in place to detect and investigate incidents and implement an appropriate incident response. 

"The recession has doubtless played a part in the significant rise of detected insider fraud this year, as employees look to other means of sustaining the good lifestyle they enjoyed prior to the downturn," commented Challinors' Arun Chauhan. "Employee fraud takes a number of forms, from falsifying invoices, redirection of computer fund transactions, procurement collusion, to company credit card misuse and false expense claims. The briefing provided an invaluable and timely insight for local businesses by looking at how to investigate, identify and protect against these inventive practices."

Mark Kenkre added: "Perhaps proving the importance for employers to remain vigilant of the issue of employee fraud is the case that has come to light this week, involving the Purchase Ledger Manager of international retailer Toys 'R' Us, who has been charged with embezzling £3.7million to fund a secret life of fast living and women. Employed by the company for 23 years, he spent the last three years taking sums ranging from £101,000 to £350,000, spending in the region of £500,000 on food, drink and entertaining. The case of 57-year old Paul Hopes was described by police as 'a classic case of a valued, long-standing employee who was able to act with autonomy,' and should sound a warning bell for all employers as it proves any employee, even those considered to be quiet and living a life of suburban normality, is capable of this type of insider fraud."

The second in Challinors' Fraud & Asset Recovery Department 'mini series' of Breakfast Briefings dedicated to examining Insider Fraud event takes place at Hotel du Vin, Birmingham, on Thursday 4th February 2010, with guest speaker Mohammed Zaman, QC from St Philips Chambers in Birmingham. For more information and to reserve a place at the event, and to download copies of the speaker's notes from the first Employee Insider Fraud Briefing, visit: http://fraud.challinors.co.uk.