Fraud Barometer: October 2015 – March 2016

Fraud Barometer: October 2015 – March 2016

KPMG's Fraud Barometer examines fraud cases brought before Australian courts between October 2015 and March 2016, and shows a large rise in the value of frauds being committed in Australia. For the period, 116 frauds occurred, with a value of $381.1 million – an average value per fraud of $3.3 million. This compares with 91 frauds with a value of $128.4 million, at an average value per fraud of $1.4 million, for the previous 6-month period.

Also on KPMG.com

Key findings

  • The most common perpetrators are business ‘insiders’, with frauds attributable to management averaging $5.7m – over double that of non-management employees.
  • Gender diversity among fraudsters is changing – the proportion of frauds committed by women in Australia have increased by 26 percent. Male fraudsters are responsible for 61 percent of the offences, with women now committing 39 percent of the nefarious activity.
  • Over a quarter of the fraudsters were aged below 36 years, which is almost double the proportion identified globally in the global report Profiles of the Fraudster.
  • Investors and government agencies are more susceptible to being fleeced by fraudsters than any other category of victims. Government and investors together were the victims of more than $301m of these frauds.
  • 26 percent of frauds used technology to enable the fraud in the latest Barometer results, including spoofed emails and online identity theft. This compares with 24 percent of fraudsters using technology on a global level.

Gary Gill, Head of Forensic at KPMG Australia, said:

“Cyber-crime continues to rise. We are seeing an alarming increase in the number of forged emails, which are often addressed to senior finance personnel, purportedly from someone in the C suite, with instructions to transfer large sums of money into bank accounts.

“We are finding that clients under-estimate the threat from the malicious insider when it comes to cyber-crime, and as a result they are not paying sufficient attention to the basics. Identity and access control is often weak, and organisations often don’t understand where their critical IP assets are located and who in the organisation has access to them.”

 

Australian Fraud Barometer

Profiles of the fraudster: Technology and weak controls fuel fraud

KPMG performed an international study to determine the average profile of the fraudster.

 
Read more

Risk culture and conduct

Key insight and debate highlighting how important it is for organisations to have a sound culture and risk strategy as a solid platform for growth.

 
Read more

Forensic

Forensic

KPMG’s forensic accounting services help prevent and detect fraud, misconduct, breaches of rules and regulations, and prevent and resolve disputes.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG has launched a state of the art digital platform that enhances your experience and provides improved access to our content and our people, whatever device you are on.