Research into fraud paints a disturbing picture.
- Complacency and denial are alive and well. Despite the millions lost to fraud, only 20 percent of respondents to KPMG's latest fraud survey for Australia and New Zealand thought fraud was a problem for their own organisations.
- According to the same survey, $345 million had been stolen by fraudsters during the previous 2 years.
- Average fraud losses exceeded $3 million per respondent entity.
- Respondents believed they were detecting only a third of their actual fraud losses. Thirty-eight percent admitted ignoring warning signs of fraud.
- The typical fraudster worked for the organisation he/she stole from.
Make no mistake, reported fraud is merely the tip of the iceberg. Much fraud goes undetected and unreported, although the losses from it are all too real. An encounter with the fraud iceberg can badly damage an organisation, even sink it.
No organisation is immune from the threat of fraud. In some sectors such as banking and finance fraud has become endemic. Yet many organisations continue to resist the adoption of measures that have been proven to enhance fraud prevention and detection.
KPMG Forensic is a leading provider of fraud prevention, detection and investigation services.