Small business owners have been warned to guard against fraud in the recession by The Fraud Advisory Panel (FAP).

Reported numbers of fraud have increased against businesses in the UK in recent years and the recession has led to a surge in the number of cases.

"Recession brings enormous pressures and it's tempting for small firms to treat fraud as the least of their worries. But coping with the consequences of even a small fraud can consume huge amounts of time and resources which are already at a premium," said Ros Wright, chairman of the FAP.

The FAP has put together advice on how small firms can protect themselves and advises that staff are made aware of the risks from theft and fraud and how to report it, that staff expense policies/procedures are explicitly communicated and that all employers fully check references for all new staff.