Rising personal debt levels could mean that businesses face an
increased risk of fraud.
The claim follows the publication of figures which show that
personal insolvencies in England and Wales hit a record high in
2009 (up 26% compared with 2008) and significant increases in new
borrowing on credit cards, loans and overdrafts have outstripped
the amount paid back by UK consumers for the first time since June
2009.
Geoff Hopwood, senior partner at the Wolverhampton office of
accountants Haines Watts, said that many private individuals had
failed to benefit from record low interest rates whilst the
interest rates charged on credit cards were now at their highest
level for 12 years.
"There are thousands of people concerned about debt and cannot
see a way out. In consequence, it's not surprising that the number
of fraud cases has increased. Businesses must take reasonable
precautions to avoid falling victim of fraud," said Mr Hopwood.
Haines Watts said there were six key warning signs in staff
behaviour. These include increased levels of stress, a lifestyle
that is not commensurate with the salary, an unwillingness to
delegate, a cosy relationship with contractors and suppliers,
personal financial problems - and a reluctance to take annual
leave.
"It's surprising how many frauds are uncovered whilst the
fraudster is away sunning themselves on a beach," said Mr
Hopwood.
Business indicators of potential fraud include large variations
in expense claims between offices, poorly reconciled cash expenses
and customer complaints that result in a large volume of
refunds.
"Controlling cash is all important at the moment. And that
includes protecting your own systems," said Mr Hopwood.