Due to the inherent nature of fraud which often involves trickery and deception, large amounts of money can be spirited away without the employer ever becoming aware of it.

 To prove fraud it is necessary to show that:


  • a false representation was made (1) knowingly, (2) without belief in its truth, or (3) recklessly, without concern whether it was true or not.


  • the employee committed the act for gain. However, such gain would not have to be confined to direct financial advantage.


For example, claiming false qualifications for a job would be fraudulent as the job applicant would be gaining employment based on a lie.


While fraud can occur at any level it is at its most dangerous at the upper levels of the organisation. This is because senior employees:


  • often have easier access to bigger amounts of money


  • can be in a better position to cover up irregularities


  • are often trusted more than are junior employees


Employers need to take seriously all reports or hints of irregularities, responding in away that makes it clear that fraud will not be tolerated under any circumstances.


Failure to discipline and dismiss the perpetrator will perpetuate the culture of dishonesty.


On the other hand failure to investigate and manage the incident properly can result in a dismissed fraudster being reinstated or being granted financial compensation for an unfair dismissal. 

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