Banks ignoring biggest fraud risk: their own staff

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Banks are ignoring the risk of fraud committed by their own employees despite investment in anti-fraud systems, accountancy firm BDO has warned.

In 2011 the value of reported fraud in all sectors hit almost £2.1bn, compared to £1.4bn in 2010, according to BDO's FraudTrack report. BDO's head of fraud Simon Bevan said despite a fall in fraud within the financial and insurance sector, banks are focusing on external threats and ignoring the "greatest risk": their own staff. The value of fraud in the financial and insurance sectors rose from £78.4m to £83m between 2010 and 2011, the report said. Fraud in the sector accounted for 27% of all reported fraud in 2011, compared to 56% in 2010. Bevan, head of fraud at BDO, said: "Fi...

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