The loss of the child benefit details appears to be down to error this time, but this is often not the case with 80 per cent of corporate fraud involving an employee.

“Over £40 million is lost every day to fraud in the UK,” says Tony Bourne, senior partner with Glovers Solicitors, whose employment and fraud and asset recovery teams work very closely together in suspected cases of employee dishonesty.

“While you may think that you have a loyal workforce, 90 per cent of fraudulent employees have been with their employer for more than a year and 20 per cent for more than a decade,” he adds.

He stresses that it is important to appreciate that if an employee steals from his or her employer, that it is both a criminal act and a breach of the employment contract.

The burden of proof in criminal proceedings is far heavier than in employment law. It is, therefore, perfectly feasible for the employment law process to continue and the employee to be dismissed for insider fraud, even if the employee is found not guilty in a criminal court.

Consequently the employment contract can be used as a deterrent. Bourne says it should have ‘fraud buster’ clauses which should be communicated to employees at the beginning of their contract.

This should include clauses compelling employees to be involved in fraud awareness training and a rigorous monitoring policy covering internet access, e-mails, desk searches and even briefcase searches.

The contract should make clear that fraud will be pursued rigorously to recover all sums stolen and that instant termination will follow.

“You should also ensure that there is a contractual claw back provision which covers all monies owed including notice monies, holiday pay, and bonuses and that you can contractually suspend the employee without pay, during any fraud investigation,” Bourne concludes.

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