A quick search of ‘fraud by abuse of position’ on any search engine reveals that employee theft in the UK is rife, with the loss to businesses ranging from hundreds to many thousands of pounds.
For example, Karen Murray, the former Finance Director at a care home in Pembrokeshire, appeared in court recently to face nine charges in total, including six counts of fraud by abuse of position and three offences under the Forgery and Counterfeiting Act 1981. It is alleged that between 2013 and 2024 she defrauded the care home out of more than half a million pounds. Ms Murray pleaded not guilty and will go on trial in June 2026.
Meanwhile, earlier this month, Danielle Elliot, an Office Manager at the charity Cotgrave Future, admitted to stealing almost £19,000 from her employer, which promotes healthy living, educational and recreational needs and childcare provision within the community.
In both the cases above, the accused were trusted employees who were alleged to have abused that trust. However, in some cases, the accused have also been friends of their employers, including the case of Bookkeeper Susan Bruland who stole almost £1 million from an elderly couple who trusted her to the extent of giving her power of attorney over their affairs. She was sentenced to five years in prison for two counts of fraud by abuse of position after pleading guilty but appeared to have expressed little remorse or explanation for her actions.
These are just a few examples found via a quick search but often theft by employees is not even reported by business owners, who are keen to avoid adverse publicity.
As Roger Isaacs, Forensic Partner at Milsted Langdon points out, the fallout from any fraudulent activity is enormous and even more damaging when carried out by trusted employees or consultants. Such incidents tie up senior management time and can cause serious morale problems. However, putting robust processes in place and carrying out staff training can sometimes help prevent theft from happening.
He adds, “Unfortunately, there is no foolproof way to remove all risk of employee fraud, but what business owners can do is make it much harder for theft to go undetected. Some of the simplest steps I recommend include regularly checking your bank statements, making sure no one person handles every part of a transaction, and having another set of eyes to review payments. These actions could be the difference between spotting a problem early or becoming a victim of a potentially expensive fruad.”
Roger explains that there is also a cultural element to preventing employee theft.
“Businesses that encourage transparency and make it possible for employees to raise concerns without fear of reprisal tend to be better protected. Too often, fraud is only uncovered when an external auditor or bank queries a transaction, but staff on the ground may have noticed unusual behaviour long before that. They may have overheard something or spotted some discrepancies in paperwork.
“What employers should be looking to do is build checks into everyday practice, so they become a normal part of how the company operates rather than a sign of mistrust.”
Sources: Western Telegraph, Yahoo, BBC News