FraudNews
03-04-2013, 12:58 AM
According to KPMG survey, businesses have suffered fraud related losses amounting to $373 million over the last two years, with an alarming 45% of the 281 surveyed businesses reporting fraud.
Every incident of fraud is costing $3 million to Australian businesses and the finance sector largely affected. According to KPMG, only 15% of respondents see fraud as a major risk, which is surprising considering the three-fold increase of fraud over the last 15 years based on past surveys.
Survey finds insider fraud committed by people who are often trusted a serious concern. According to the survey 75% of the fraud is committed by insiders. Survey also indicates a staggering 82% increase in individual frauds exceeding $1 million. False invoicing and theft of cash are the two major types of fraud committed by internal perpetrators whereas fraudulent tendering is often the mode for external perpetrators.
Many of the findings from the past KPMG surveys are still valid. Typical profile of a fraudster is that of a male in 30's, male, management oriented, long-term employee of the company where fraud is committed, no previous history of fraud, earning closer to $100,0000 and often motivated to commit the fraud due greed/lifestyle or dire financial situation.
KPMG also reports increase in collaborative fraud, especially collusion between internal employees and external parties as an area of concern considering the rapid growth in connectivity and social media.
The lack of internal controls are also a major concern with 47% of the respondents indicating fraud as a result of lack of controls.
KPMG publishes the biannual survey for the benefit of Australian and New Zealand based businesses to help them better understand the profile of fraudsters, impact of fraud, and be better prepared to face fraud risks.
The full report can be seen at http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Fraud-Survey/Pages/fraud-bribery-corruption-survey-2012.aspx
Every incident of fraud is costing $3 million to Australian businesses and the finance sector largely affected. According to KPMG, only 15% of respondents see fraud as a major risk, which is surprising considering the three-fold increase of fraud over the last 15 years based on past surveys.
Survey finds insider fraud committed by people who are often trusted a serious concern. According to the survey 75% of the fraud is committed by insiders. Survey also indicates a staggering 82% increase in individual frauds exceeding $1 million. False invoicing and theft of cash are the two major types of fraud committed by internal perpetrators whereas fraudulent tendering is often the mode for external perpetrators.
Many of the findings from the past KPMG surveys are still valid. Typical profile of a fraudster is that of a male in 30's, male, management oriented, long-term employee of the company where fraud is committed, no previous history of fraud, earning closer to $100,0000 and often motivated to commit the fraud due greed/lifestyle or dire financial situation.
KPMG also reports increase in collaborative fraud, especially collusion between internal employees and external parties as an area of concern considering the rapid growth in connectivity and social media.
The lack of internal controls are also a major concern with 47% of the respondents indicating fraud as a result of lack of controls.
KPMG publishes the biannual survey for the benefit of Australian and New Zealand based businesses to help them better understand the profile of fraudsters, impact of fraud, and be better prepared to face fraud risks.
The full report can be seen at http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Fraud-Survey/Pages/fraud-bribery-corruption-survey-2012.aspx