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Payroll fraud costs UK firms £12bn per year

CIPD People Management report that businesses in the private sector are collectively losing a total of £144bn a year through fraud, with £12bn being lost through payroll fraud.

CIPD People Management report that businesses in the private sector are collectively losing a total of £144bn a year through fraud, with £12bn being lost through payroll fraud. The findings form part of the Annual Fraud Indicator 2016, conducted by the UK Fraud Costs Measurement Committee. The article is quoted as saying that payroll fraud goes on quite regularly in businesses without them knowing about it, with examples being adding on a few miles onto an expenses claim (low level) or having ‘ghost’ employees on the payroll who don’t actually work for the company (high level).  The article highlights that HR departments have a “pivotal” role to play in combating fraud, including vetting and checking prospective employees have not been involved in fraud before.

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