Fraud boosted by business change
Corporate restructurings have massively increased the incidence of fraud, according to a leading investigator.
Metropolitan Police detective chief inspector Peter Connor warned that radical changes to organisational structures had resulted in a deterioration of supervision and control. Downsizing and outsourcing had, in particular, resulted in a loss of employee loyalty and commitment, he said. ‘Systems of control have been put in place, but they are not revised or monitored properly,’ Connor added.
He cited a 1994 police survey of alleged fraud cases investigated by the authorities which found lawyers to be the chief suspect in over 10% (77) of 610 cases. Separate figures for accountants were not given, but they – along with surveyors and even doctors – accounted for another 181 professionals accused of fraud.
Connor said that crime prevention was not just a senior management duty.
‘Fraud awareness and prevention strategy is a primary responsibility for management at every level,’ he stressed. ‘It always amazes me, the skill and dexterity that goes into a good fraud.’
