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What is Insider Fraud?

Insider fraud, also referred to as employee fraud is when a person who works within your company commits a fraud against it. Often starting with small amounts of money being taken, if undetected, the amount taken may increase as the individual grows in confidence. An employee has the advantage of knowing how the business works which enables them to hide their criminal activities, it can be several months or years before the fraud is discovered.

Pressure, rationale, and opportunities are three key elements that can result in the individual committing fraud. For example; Is the person experiencing financial difficulties? Do they believe what they are doing is justified and that the company can afford it? Are business controls ineffective and the individual can access systems they shouldn’t be able to?

Things to look out for:

  • Employees experiencing financial difficulties and changes in behaviour, lifestyle, or performance.
  • Employees reluctant to take holidays or those who regularly stay late or start early
  • Frequent customer complaints regarding missing documents.
  • Suppliers who are insistent on always dealing with the same person.


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