Recession leads to fraud and crime – Turnkey Consulting
Today’s current economic climate has presented many major headaches for employers.
One that is discussed less often than reduced sales and higher operating costs is the increased risk of employee fraud. The elevated threat of being made redundant, or the frustration of having salaries frozen (or even reduced) for the foreseeable future, can make previously loyal staff search for control gaps in a business process that can be exploited for their financial gain. In addition, poor security and inappropriate levels of system access can lead to increased opportunities for users to perform fraudulent activities which can ultimately
result in inaccurate financial reporting, or even material mis-statements.