The credit crunch has led to a boom in fraud and the culprits might be closer than SME owners think, new research warns.
According to the latest FraudTrack report from BDO Stoy Hayward, reported fraud cost UK businesses over £700 million in the last six months - a "whopping" 74 per cent increase on the same period last year.
Simon P Bevan, head of BDO Stoy Hayward's Fraud Services Team, warned that it is not criminal gangs who are the perpetrators in most cases.
He said; "What we are essentially saying is that management are robbing you blind, suppliers are ripping you off left right and centre and regulators are breathing down your neck."
As the FraudTrack Report only covers reported crime the actual problem could be much bigger, he added.
Last month, research by consultants Common Purpose found 43 per cent of managers and staff think taking more risks will be an important factor in helping their firm survive a recession.
