New Zealand

Details

  • Service: Advisory, Forensic
  • Type: Business and industry issue
  • Date: 16/07/2010

Forensics

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Fraud barometer - June 2010 

KPMG Fraud barometer findings - June 2010

 

The Barometer evidence for the latest six months (to June 2010) confirms there has been no let up in large frauds continuing to occur and be brought before the courts in New Zealand. For the fifth straight period the cases coming before the courts have exceeded $20m.

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  • There has been no significant reduction in the value (amount stolen) of frauds in New Zealand in the six months to June 2010 when compared to second half of 2009; total number of frauds however is lower than the previous six months.
  • In the six months to June 2010, 26 large frauds were brought before the courts in New Zealand, with the amount defrauded exceeding $72 million.
  • For the second straight period the average size of the large frauds has exceeded $ 2 million per case.
  • A large fraudulent loan case concerning fraudulent loans by a customer of a financial institution for $47m – suggested to be the largest fraud case.
  • A large proportion of frauds suffered by commercial businesses were committed by internal staff with almost all of these frauds being perpetrated by manipulating accounting systems.
  • Management staff were more likely to commit fraud than lower level employees, and when they do commit fraud generally steal far higher amounts due to their access to information, authorisation capabilities, and ability to understand and override internal controls.
  • The top five types of frauds based on number for the first half of 2010 were – Accounting Fraud (11), Investment scam (4), Fraudulent loans (3), Tax fraud (3), and Deception (2).
  • Top five types of fraud by value of fraud were – Fraudulent loans ($ 51 million), Accounting Fraud ($ 9 million), Investment scam ($ 7 million), False invoicing ($3 million) and Tax Fraud ($ 682,000).
 

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