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New Home Office fraud legislation
exposes employers to risks
Under proposals, businesses will need to demonstrate reasonable
measures have been implemented to prevent fraud
The latest action from the Home Office to preventing fraud and other unscrupulous
prevent fraud in the workplace will place behaviour from staff, businesses are facing a
even greater emphasis on compliance for wealth of hurdles that could pose a real risk to
employers, and is another example of the their company. However, with the Home Office
growing clampdown on business-related demonstrating a clear focus on clamping down
criminal offences that firms need to be on unlawful activity and putting the onus on
prepared for. organisations to ensure they are taking steps
to reduce fraudulent behaviour, employers
That’s according to specialist background really do need to take action now.
screening and identity services firm, Sterling.
“While we may be in a highly flexible world of
In an announcement last week, the Home work that many wouldn’t have even dreamt
Office unveiled new proposed legislation of pre-Covid, this way of operating does
for “failure to prevent fraud” offences, which create more opportunities for fraud and is
would make it easier to prosecute larger firms arguably more difficult to control and monitor.
if members of staff commit fraud to benefit We’ve seen an increase in workers managing
their business multiple full-time jobs through fraudulent work
activity, including outsourcing day-to-day
Under the proposals, the employer would
need to demonstrate that reasonable tasks to friends or relatives. And that’s just
measures were in place to deter the offence. one example of the behaviours that are being
targeted by the Home Office and other global
According to Steve Smith, President authorities.
of International at Sterling, this latest
development is another example of the “Business leaders needs to ensure they
increasingly complex compliance landscape are set up to both effectively screen for
that employers need to be prepared to any potential behavioural red flags before
navigate: employment contracts are signed, and have
a process in place to monitor this on an on-
“The growth of technology has inadvertently going basis if they are to avoid possible claims
led to an increasingly sophisticated fraud. of failing to prevent fraud under these new
With remote working also presenting further proposals.”
challenges to employers when it comes to
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