Fraudsters Get Going As The Times Get Tough

White collar crime is on the rise as the global financial crisis puts the squeeze on struggling New Zealand businesses and their executives.

Police and private investigators confirm the credit crunch has led to an increase in business fraud and employee theft, while desperate property owners and motorists are torching houses and cars in insurance scams.

Dan Thompson, director of leading investigation firm Paragon NZ, said the recent rising trend of corporate crime was similar to the aftermath of the 1987 stockmarket crash - and he predicted fraud would increase further over the next 12 months.

As the Wall St meltdown hits the New Zealand markets, Thompson said cash-strapped employees, contractors, service providers and management were resorting to fraud.

"When times get tough, people start looking after themselves. We're definitely getting a rise in investigations of people feathering their own nest," said Thompson.

"With the financial crisis, it doesn't take long for people to get worried and say, 'I've got to grab what I can'."