Employers rank fraud as a top business concern, according to research from accountants and business advisers MacIntyre Hudson.
The survey of owner-managed businesses show that 38% see fraud at the single biggest threat to the security of their business, compared to 36% citing burglary. Just over a quarter of respondents fear employee fraud saying it is a key business concern.
While employers are aware of the problems, few are taking basic precautions, according to the research.
Only 39% of owner-managers conduct on-the-spot checks while just 26% require that cheques have double signatories and only 11% ever change the staff who reconcile their bank accounts.
Recruitment checks were omitted by the majority of respondents leaving businesses exposed to fraudsters.
While 82% take up references for new staff, only 39% verify qualifications and just 34% carry out criminal record checks.
Howard Lewis, partner at MacIntyre Hudson says:
“We cannot stress enough how important it is for owner-managers to foster an environment where trust is combined with vigilance and backed up with robust systems to remove temptation.”
