An important finding for organisations is that management continue to do more damage by fraud than lower level employees. Management stole on average $3.4 million per fraud, while employees stole on average $1.5 million.
This remains consistent with the long term ratio throughout the history of the Barometer that losses from fraud by management are approximately three times greater in value than those by non-management.
- The number of serious fraud cases fell (67 to 50 from the previous half)
- However the average value of fraud increased from $1.73 million to $1.82 million
- Fraud by management is the biggest threat with an average fraud of $3.4 million
- A worrying incidence of investor fraud is up from $22 million to $32 million, and
- Two thirds of frauds against financial institutions involved insurance fraud and there were five case of large insurance fraud – the highest number in 3 years.