British businesses are falling victim to business fraud because commercially sensitive documents are still being discarded with the general rubbish, a survey has revealed.

The PHS Facilities Management Survey found that 16% of organisations had already been a victim of business crime and that 14% still binned sensitive material with the general rubbish.

Although concern about the issue was high, the poll of 200 firms uncovered an alarming lack of knowledge around what actually constitutes business sensitive waste.

Records of business transactions, employee records, client details, computer disks, branded stationary and even staff uniforms can all be utilised by fraudsters to commit crime.

Peter Cohen, chief executive of PHS urged businesses to develop clear policies on business waste.

"This subject is highly relevant when you consider that identity fraud is one of our fastest growing crimes, estimated to cost the UK over £1.3bn a year,” he said.