Light-fingered employees are costing companies around the world millions of pounds every year, according to a report this week from Ernst & Young. The survey, which canvassed over 1,200 senior executives in 32 countries, reveals that 84 per cent of the worst corporate theft is committed by companies' own staffs. With nearly half of the fraudsters in the company employ for more than five years.

In the UK four major companies admitted to losing more than £16 million each in the past year. Around two-thirds of the respondents had been defrauded, with 9 per cent hit more than fifty times. Computerised accounting has overtaken the hand in the till as the major area for potential fraud .

The report, entitled "Fraud; the unmanaged risk", says many companies are inadequately prepared to counteract sharp practice among senior personnel, having lax monitoring, preventative and reporting policies.