BOSTON (1/24/11)--Forty-three percent of financial firms surveyed say at least 5% of their total fraud losses come from internal fraud, costing them hundreds of millions of dollars collectively, according to a new survey by Aite Group. Fourteen percent said they suffered at least 10% of fraud through internal fraud. On average, institutions surveyed said internal fraud prompted 4% of their fraud losses. The Boston-based firm said the estimates are likely low, since many financial firms are "not keen to discuss the issue." It noted institutions that build their brands on trust and reliability do not want it widely known that insider fraud is a problem. As a result, 35% of the survey respondents reported prosecuting 10% or less of their confirmed internal fraud cases. Aite Group surveyed 35 fraud and product executives at financial institutions across the U.S. and Canada during November and December. Aite recommended that financial institutions use a layered approach of collaborative and analytic fraud mitigation techniques to lessen the risk from internal fraud, which it defined as applying to a variety of criminal behavior perpetrated by a firm's own employees or contractors. Internal fraud generally falls into three categories: theft from customers, theft from the firm, and abuse of position, said the firm. The report mentioned providers of fraud prevention technologies that financial institutions can use to combat internal fraud. ID Analytics, a CUNA Strategic Services provider, was one of the companies mentioned.