A rising tide of workplace fraud is hitting British businesses, experts are warning.
Behaviours once considered taboo and unacceptable in the workplace – from faking job references and selling access to company systems, to working for competitors in secret – are now becoming commonplace.
That is according to fraud prevention agency Cifas, which has said one in five workers admit to secretly juggling two competing jobs.
What’s more, almost a quarter of Britons believe it’s ‘justifiable’ to secretly work for a competitor – a practice known as ‘polygamous working’.
The report surveyed 2,000 workers in sectors from HR to engineering and finance to IT across all levels of seniority. At least 500 of the respondents worked from home some or all the time.
It reveals a growing tolerance among workers for behaviours tantamount to workplace fraud.
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Using fraudulent references and credentials to deceive recruiters and employers during the hiring process was deemed ‘justifiable’ by 30 per cent of respondents.
The most commonly commited type of fraud was expenses fraud, including claiming personal meals as business expenses, with a quarter of workers admitting they had done this in the past or know someone who has.
Keith Rosser, chair of The Better Hiring Institute and director of recruiter Reed’s employee screening arm, says: ‘Polygamous working and the use of reference houses are two of the largest issues impacting UK business, along with fake IT workers and AI-enabled fraud.
‘It is essential companies protect themselves against this expanding issue.’
Reference houses are organisations which provide fake employment, education, bank and identity checks for jobseekers.
In a worrying trend, 88 per cent of business owners and 70 per cent of C-suite executives also said certain unlawful behaviours were justifiable.
Mike Haley, CEO of Cifas, said: ‘Our research reveals systemic blind spots to a whole range of rising threats impacting the workplace.
‘It raises urgent questions about organisational culture, risk management, and accountability. ‘
The elevated cost of living has seen rising numbers of workers taking up second jobs or side hustles to make ends meet, or to boost savings.
Polygamous working, while not illegal, might place some workers in breach of their employment contract with their main job.
Mr Haley adds: ‘Organisations must take steps urgently to build effective counter-fraud cultures in the workplace, strengthening prevention, and empowering employees to do the right thing.’
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