Spreading staff resources more thinly over internal controls, along with an increased workload for internal auditors with fewer resources could be behind an increase in economic crime, according to a survey released today.

The PricewaterhouseCoopers’ Global Economic Crime Survey of 3,000 senior representatives of organisations from 54 countries, revealed that almost half of UK organisations have experienced some form of economic crime in the last 12 months, citing accounting fraud as the fastest growing of these crimes.

Since publication of the study began in 2003, reports of accounting fraud have more than tripled.

Respondents said IT controls are also weakening, making their systems more vulnerable to outside interference.

Findings revealed that 47% of all economic crimes in the UK had been committed by middle managers, as opposed to junior or senior staff – an increase from 32% in 2007.

‘Fraudsters can come from anywhere, but those feeling the tightest financial pinch are more likely to get involved,’ said PwC partner Tony Parton. ‘Middle managers on middle incomes may have stretched themselves with high mortgage repayments or school fees and are now facing pay freezes and less certain prospects for future employment.’

Large organisations were found to report the most fraud, with 46% of those with over 1,000 employees reporting incidents in their businesses.

Emily Beattie