PwC’s Global Economic Crime Survey 2014 shows that the number of frauds committed by staff, as opposed to those outside an organisation, has risen from 34% in 2011 to 41% in 2013. Over the same period, the number of UK organisations reporting economic crime has decreased from 51% to 44%, although this is still higher than the global average of 37%.

Cybercrime makes up a quarter (24%) of all reported frauds, while there is less accounting fraud than previously. PwC says the profile of the typical fraudster is changing, with most economic crimes now carried out by junior members of staff who have been with the company less than five years, rather than middle management as was previously the case.

UK businesses continue to suffer financially from fraud, and half (52%) said the financial impact had increased in the last two years, compared to 42% globally. However, high-value financial losses in the UK were lower than the global average, with 15% of companies suffering losses in excess of $1m ($600,000) compared with 20% globally.

Twice as many junior staff (63%) report fraud in their organisations compared to board members (32%), but UK businesses take tougher action on fraud than many other countries. Fraud results in dismissal in 88% of UK cases, compared to 79% globally, with the police called in to companies in 63% of cases, compared to just 49% of frauds around the world.

Ian Elliott, PwC forensic services partner and author of the report, said: ‘More and more companies are feeling the pain as economic crime continues, despite ongoing attempts to tackle it. Organisations need to be ever-vigilant for suspicious transactions. Employers need to make it difficult for their staff to commit crimes; they cannot afford to be complacent.’