Reduce Employee Fraud with a Basic DBS Check

By 6th March 2018DBS News
Employee Fraud

One of the main reasons for the new Basic DBS Check is to enable a business to carry out a basic criminal check across all their business (new and existing employees) to identify any potential risk within the company which could have a detrimental impact on all stakeholders and the company itself.

A basic check will contain details of convictions and conditional cautions that are unspent under the terms of the Rehabilitation of Offenders Act (ROA) 1974.

Employee fraud may not be the number one concern that keeps a business owner or Managing Director awake at night, but it can be a significant drain on the bottom line and have several other negative impacts on an organisation.

There are five key areas a business should monitor to protect against fraud including credit card fraud, payroll, bookkeeping, information systems and data.

Pressures that lead to employee fraud include financial, emotional and lifestyle.

  • Financial: living beyond their means, high personal debt/expenses, ‘inadequate’ salary/income, poor credit ratings, heavy financial losses, bad investments, tax avoidance or meeting unreasonable goals.
  • Emotional: greed, unrecognised performance, job dissatisfaction, fear of losing job, power or control, pride or ambition, beating the system, frustration, non-conformity, envy or resentment, arrogance or non-rules orientated.
  • Lifestyle: support gambling habit, drug or alcohol addiction, support relationships or family/peer pressure.

Employee fraud occurs frequently across businesses within the UK; especially within companies that are experiencing rapid growth and particularly within the role of bookkeeping.

One recent example of this was an SME in the North West, where their Accounts Assistant stole £120,000 from the company and diverted a further £60,000 to her husband’s bank account. The cost to the business was nearer to £260,000 due to tax and VAT payments; not to mention the threat to a loss of more than 28 jobs.

The fraud was only identified when the Accounts Assistant went off ill and a replacement was brought in to cover the role.

Obviously, this had a significant impact on the company, but what’s even more frustrating is that if a Basic DBS Check was available prior to offering them the role, then a prior offence for fraud at a previous company would have been revealed which would have likely led to the company not employing the person in the first place.

This is a prime example of how a Basic DBS Check costing just £40 can make the difference in lowering the risk you take when employing a new person.


A growing area of concern is around information systems and data. You’ll probably be familiar with the new GDPR (General Data Protection Regulation) coming into play May 1st 2018, but have you actually thought who has access within your company to data?

Fraud can occur across several areas such as selling data including customer information and price lists onto competitors or other external sources, manipulating data including increasing credit terms for suppliers, copying files when leaving the company and accessing data without appropriate authorisation.

Data is easy to transfer and manipulate, but it also leaves a digital trail. However, the challenge is identifying potential information and data fraud in the first place. A Basic DBS Check will assist you in mitigating any unnecessary risk whilst also meeting your requirements as an organisation against the General Data Protection Regulation.

Contact us now to start carrying out Basic DBS Checks with your current staff and don’t forget to build the Basic DBS Check into your recruitment process. It’ll be the best £40 you ever spend!