Fraud can be defined in a number of ways. However, a number of words and phrases are typically repeated in the various definitions. These include: deception, unlawful personal gain and loss to others.
Fraud is a global problem that continues to increase in sophistication. According to our KPMG Africa Fraud Barometer (3rd edition), it was identified that Kenya had an increase in the number of reported fraud cases in the period July to December 2012, compared with the six months prior. The value of losses for this six-month period was estimated at US$0.5 billion.
Acknowledging that both the public and private sectors are not bottomless pits, is a reported loss of US$0.5 billion in six months a victimless crime? Fraud typically involves no violence, there is often collusion such that each of the defrauding parties gain from the fraud. Defrauded funds can be insured, such that the defrauded establishment do not always suffer a direct financial loss...Read more.