Tuesday, June 21, 2011

Global patterns of fraud

A new report from KPMG, Who is the Typical Fraudster?, analyzes trends in corporate fraud around the globe.

Drawing on investigations conducted in 69 countries, the majority of them unpublicized, it provides both insight into broad patterns of fraud and suggestions for improvement tailored to particular countries.

Globally, the typical fraudster is a man between 36 and 45 holding a senior management position. He is more likely to be working in a finance function and least likely to be working in a legal function.

Although this profile is also true in the United States, the report makes some observations that are country-specific.

There has been a significant increase in the United States in the detection of fraud involving collusion with outside parties, partly attributable, KPMG says, to anti-bribery and corruption initiatives.

“More and more of these cases are coming to light because of increased enforcement capabilities. Corporate America is becoming very focused on this issue as companies build out their compliance programs and enhance their awareness of and responses to fraud and misconduct.”

Initiators of fraud are often a few steps ahead of corporate compliance programs and companies must be proactive in searching for red flags.

“Organizations need to recognize that fraud does happen. With a robust compliance program and protocols for prevention, detection, and response, they will be better able to deal with it and move on.”