KPMG report finds fraud culprits are predominantly conspiring employees
What does fraud look like, and who is committing it?
TORONTO, Dec. 4, 2013 /CNW/ - According to KPMG International's Global Profiles of the Fraudster, today's types of fraud and fraudsters are continually changing, and
often camouflaged. The report analyzes fraud investigations in Canada
and around the world, and provides insights into the relationship
between the attributes of fraudsters, their motivations and the
environments in which they flourish.
Misappropriation of assets (including embezzlement and procurement) is
found to be the most prevalent fraud. The most common fraudsters are
employees of their victim organization. Fraudsters continue to rely on
technology and technological advances to perpetrate their crimes. The
new generation of swindlers use more technology and have access to much
more information than past generations. All of which point to a new era
for fraud and illegal activities.
Some characteristics of the typical Canadian swindler include:
36 to 45 years of age
Employed in an executive, finance, or operations function
Holds a managerial or executive position
Commits fraud with multiple transactions over one to five years
Employed in their organization in excess of six years
The survey examines 'white-collar' crime investigations, where the
perpetrator could be identified and provide detailed contextual
information about themselves and their crime.
The different faces of fraud:
The opportunist: a first-time offender, trusted employee, in a position of
responsibility; this perpetrator is often male and married with
children, with a non-sharable problem that can be solved by money. The
alleged behaviour comes as a surprise to others.
The predator: someone who seeks out an organization to start a scheme almost
immediately upon being hired and deliberately defrauds the organization
with little remorse; these fraudsters are less common.
The colluder: this perpetrator is less common in Canada than many countries around the
world; nonetheless just under 50 per cent of Canadian fraudsters still
found it tough to go solo and colluded with others. These
collaborators are most frequently internal parties working together.
"Ultimately, the fraudster of tomorrow will depend on the opportunities
of the day. Two decades ago, illicitly taking money from a bank was
accomplished by a closely knit gang using violent methods or forged
signatures. Since that time, the ways to commit fraud have been
transformed by technology - the internet, smart devices and the ability
to analyze vast amounts of data. Companies must be keenly aware of the
impact of new technologies on fraud risk. Act pre-emptively and
remember that technology not only enables the fraudster, it also
enables an organization to defend itself."
- James McAuley, Partner, KPMG Forensic
"In Canada, many organizations tend to under invest in antifraud
defences until required by legislation. It is impossible to predict a
crime before it occurs, but by analyzing the constantly changing nature
of fraud, we can help organizations stiffen their defences against
these criminal activities."
- John Williams, Partner and National Service Line Leader, KPMG Forensic
KPMG on LinkedIn
About the survey
Data was gathered from fraud investigations conducted by KPMG member
firms' forensic specialists in Europe, Middle East and Africa (EMA),
the Americas, and Asia-Pacific between August 2011 and February 2013.
KPMG analyzed a total of 596 fraudsters who were involved in acts
committed in 78 countries. The survey examined "white collar" crime
investigations conducted across the regions where the perpetrator was
known and detailed contextual information on the crime available. It
incorporates the observations and views of KPMG Investigations leaders
in 42 countries across the world. The report builds on the similar
studies from 2011 and 2007.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian
limited liability partnership established under the laws of Ontario, is
the Canadian member firm of KPMG International Cooperative ("KPMG
International"). KPMG member firms around the world have 152,000
professionals, in 156 countries.
The independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss entity. Each KPMG firm is a legally
distinct and separate entity, and describes itself as such.
SOURCE: KPMG LLP
For further information:
National Senior Manager, Communications
KPMG in Canada
416 777 8169