KPMG: technology an enabler for fraudulent activity | KPMG | AE
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KPMG: technology an enabler for fraudulent activity

KPMG: technology an enabler for fraudulent activity

KPMG International, a global network of professional firms providing audit, tax and advisory services, have released report highlighting the impact of technology in fraud.


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The report, which included investigations of 750 fraudsters across 78 countries, found that technology was an enabler within 24% of the cases analysed. It also revealed that proactive analytics found little success in dealing with fraud, a mere 3% of fraudsters discovered with this approach.

Commenting on the report, Phil Ostwalt, global head of investigations, KPMG International said: "As technology becomes more advanced, so too do the schemes to use it maliciously. And while it's clear that fraudsters are all too comfortable making use of technology to perpetrate a fraud, we are seeing little evidence that companies are doing the same to prevent it.

"Threat-monitoring systems and data analytics are a must have for organisations on the look-out for anomalous or suspicious behaviour."

Further analysis found that fraudsters who employed technologies as a means to initiate frauds, roughly 24% created false data in accounting records, 20% provided misleading information via email and messaging, while 13% abused permissible access to computer platforms.

Additionally, weak internal controls proved beneficial for fraudsters in 61% of the cases investigated, and the number of criminals who took advantage of weak controls rose to 27%, from 18% reported in 2013.

Jeyapriya Partiban, Partner and Head of Risk Consulting at KPMG in Bahrain, shared: "With technological disruption, these risks have compounded. However, organizations are increasingly becoming aware of the threats they face, and they are working proactively to prevent any fraud related incidents."

Pointing to the Government of Bahrain's recent efforts with the General Directorate of Anti-Corruption Economic and Electronic Security, Partiban added, "We can only protect organizations and individuals from this through strong legislation, robust governance and constantly evolving security protocols."

The press release

© 2018 KPMG, a United Arab Emirates partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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