Recession blamed for rise in recruitment data theft

21-Jan-2009 | By Colin Cottell

The economic downturn is leading to an increase in data theft, with recruitment agencies in the worst hit sectors most susceptible, recruiters
have heard.

Dan Morrison, a partner in Mishcon de Reya’s recruitment services group, told an event in London that the group’s data theft caseload had risen by 150% since 2006, to 50 in 2008. Morrison said that an analysis of 103 cases showed “a substantial number” of data thefts occurred in the hard hit construction/property or financial services sectors.

He told Recruiter that “increasing competition for a diminishing number of client job offers” among agencies was causing a rise in data theft.

Morrison said property and construction were badly hit because “agency margins were being squeezed by clients”, making it more tempting for agencies “to pick up cheap business via a dishonest consultant” or “by buying a list for a few quid”.

Among recruiters, three quarters of data theft was via a computer, including burning data on CD, USB (28%) and email (19%). And 75% of data theft was carried out by males aged 25-35.

Morrison said 85% of data thefts are carried out by consultants who are promised a better job as a reward from a competitor.