IT businesses warned of the dangers of internal fraud

POSTED: 20th December 2012
IN: Business news

Small and medium-sized enterprises (SMEs) in the IT sector have been warned of the dangers of internal fraud carried out by members of staff.

undefinedIn a survey from Version One, it was discovered 67 per cent of sampled senior finance and IT professionals believe that insider fraud involving business documents is possible within their organisation.

The research also showed that 25 per cent of respondents had witnessed other members to staff tamper with documents, which demonstrates that SMEs in this industry need to remain vigilant against fraud.

One way in which IT businesses can defend against the risk of fraud is to harness the advantages of an electronic document management system, which 74 per cent of professionals claimed would help with cutting down fraud levels.

Managing director of Version One Greg Ford said: "If insider fraud is to be effectively tackled, organisations need to invest in fraud detection and prevention solutions.

"By using such a system, documents can't be tampered with, 'lost' or shredded and by ensuring that the system is based on strict levels of authorisation, this makes it extremely difficult for staff to manipulate documents."

Although fraud remains a threat in the IT industry, a 2007 survey conducted by Version One revealed there has actually been a fall in the number of senior professionals who believe someone in their organisation would interfere with company documents.

The study conducted five years ago found that 76 per cent of respondents felt a document could be fraudulently altered by a member of their organisation.

As many as 37 per cent of those questioned said they had already come across activity involving important papers that could be interpreted as fraudulent - which is considerably higher than the 25 per cent who said the same in the 2012 survey.

Still, fraud not only places a strain on the IT sector, as figures from the UK National Fraud Authority suggest it costs the entire economy around £73 billion per year.

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