Over three quarters of employers in financial services see the threat of employee and insider fraud rising
The threat of the employee is continuing to grow with full time employees considered to be the most dangerous.
According to results of the employee fraud research by Actimize, of financial institutions from around the world, 82 per cent see the threat of employee fraud growing and 78 per cent see the employee fraud problem increasing due to the slower economy.
Also, 69 per cent see full-time employees as the highest risk segment, seven to 14 times more risky than part-time, offshore, outsourced or temporary employees.
Actimize believed that the reason for this result is that non full-time employees are often monitored more closely and have access to fewer critical systems and less sensitive information. Conversely, employees with complete access to firm systems and assets are almost always full-time.
Along with the threat of employee sabotage, 62 per cent of respondents indicated that they see rogue trading activity increasing due to the slowing economy and 84 per cent say the industry is likely to experience a rogue trading loss of more than $100 million in the next 12 months.
Paul Henninger, head of the financial crimes product group at Actimize, said: “As the research shows, regardless of the direction the economy takes in the near future, financial institutions are expected to be increasingly concerned about the threat of criminal employee behaviour.
“Luckily there is evidence that the industry is improving its ability to investigate and catch employee fraud. Even in lean times, financial firms must continue to invest in technology to protect firm and customer assets.”