The effects of crime can be far reaching and expensive

The majority of companies said that they expect crimes to hit their shares and corporate image, accountants and advisers RSM Robson Rhodes said.

The main areas of concern are money laundering, embezzlement and cheque fraud. Bribery and corruption among staff also is a worry, the poll found.

While firms are aware of the issues, they need more protection, RSM said.

"Businesses need to take the risks posed more seriously," said Bill Cleghorn, a partner at RSM.

No easy fix

To be successful, they need to spend more time discussing and dealing with the problem at a boardroom level, he said.

Definitions of economic crime Identity theft Embezzlement Bribery, corruption Cheque, credit card fraud Internet, cyber crime Insurance fraud Money laundering Procurement fraud Product counterfeiting VAT fraud Source: RSM Robson Rhodes

An unwillingness by companies to admit that they are victims of crime, and in some senses admit that they have been caught out, may be hampering efforts to catch those responsible.

Nearly half of the 100 companies questioned by RSM said they do not inform external auditors about instances of economic crime. Less then 40% tell industry regulators.

More worrying is the fact that only 14% share information with local businesses.

Sharing helps

Authorities say that a key way of combating crime is to set up a network of victims and potential targets so that they can share experiences, safeguards and information.

"Economic crime is not just a concern for businesses - ultimately it costs us all," said Mr Cleghorn.

Tips for spotting economic crime Unusual behaviour among staff and managers, such as working late over weekends Poor security procedures; uncontrolled access to buildings Patterns of purchase; large numbers below a certain value needing only one signature Cash transactions by one person Travel claims lacking documentation Staff not saying where they are during absences Widespread use of passwords, security codes Sudden change in lifestyle, such as new car, clothes Poor vetting of new staff Source: RSM Robson Rhodes

A recent example showing the effect of economic crime is Enron, the US energy trading company whose collapse amid illegal accounting practices helped drive a global stock market slump.

Mr Cleghorn added that there is a need for firms "to research the level of economic crime in their industry sector".

"They then need to put in place effective systems and controls to prevent it, identify material losses and take action to recover those losses," he explained.

RSM found that 17% of business had been conned by criminals pretending to be well-known brands.