Added: (Thu Mar 21 2002)

Pressbox (Press Release) - Announcements of large-scale frauds and irregular financial transactions have become a regular occurrence. Well-known institutions have hit the headlines with revelations of massive losses and unauthorised trading. In the wake of 11 September, financial institutions have taken steps to secure their systems from possible attack. But what steps have they taken to counter the threat of internal abuse?

Carratu International plc, one of the countryís leading corporate investigators, believes that very little has been done and is calling on senior managers to increase their diligence and improve their monitoring systems to prevent potential fraudulent activity by their staff.

Roy Daisley, director of Carratu Internationalís Corporate Division said, "In times of a bear market people can become reckless or careless in desperation to meet targets or chase losses. This, coupled with the mobility of employees, the internet and globalisation, creates an environment that, without proper supervision and diligence, can increase the likelihood of fraud. We forecast that many more cases of fraud will be uncovered this year as a result of lax supervision."

Extensive research by Carratu International has revealed that most instances of fraud have been perpetrated by insiders and the financial industry needs to monitor its staff more effectively. The lack of proper systems and controls means that fraudulent activity can continue over an extended period of time, perhaps even years. But how do the financial institutions combat this growing threat?

One of the most reliable ways is to rigorously vet staff via an objective third-party who has not been involved in the recruitment or interview process. When screening staff, Carratu International verifies a whole range of different information including personal data, judicial and legal data, employment history and credentials. Carratu Internationalís screening process complies to British Standard 7858 and the Financial Services Authority (FSA) requirements.

"Knowing your staff should become as important as knowing your customer." said Roy Daisley. "Effective screening and ongoing monitoring should greatly reduce the chance of fraud or other serious misconduct."

Notes to Editor:

1. Carratu International Plc - Incorporated nearly 40 years ago, Carratu is one of the UKís longest established independent, privately owned Corporate Investigation companies. Carratu offers a comprehensive portfolio of services designed to protect and enhance todayís international business community. The company has built a reputation based on the delivery of a high quality service which is discreet, thorough and extremely successful. (www.carratu.com)

2. Roy Daisley BSC (Hons) MIPI CFE - Roy is a highly trained and experienced investigator. He spent 32 years in the London Metropolitan Police as a detective officer, retiring with the rank of Detective Superintendent. In addition to general detective duties, Roy was selected to serve on New Scotland Yardís Flying Squad, Central Drugs Squad, Fraud Squad and the National Crime Squad. He spent the final two years of his career as a Police Adviser to the Home Office. Roy joined Carratu International as Head of Corporate Division. In 2001 he became a director of the company. Roy has a Bachelor of Science Honours degree in Social Sciences, is an elected member of the Institute of Professional Investigators and has qualified as a Certified Fraud Examiner.

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