Fraud Barometer: April – September 2016

Fraud Barometer: April – September 2016

KPMG’s Fraud Barometer shows a large rise in the value of frauds being committed in Australia. For the 6-month period between April to September 2016, 143 frauds occurred, with a value of $442 million – an average value per fraud of $3.1 million. This compares with 116 frauds with a value of $381.1 million, at an average value per fraud of $3.2 million, for the previous 6-month period.

1000

Also on KPMG.com

Key findings

  • The most common perpetrators are business ‘insiders’, comprising employees and management, accounting for over half of all reported frauds.
  • 22 percent of frauds were facilitated through the use of technology and digital means including dating and gambling websites.
  • The proportion of frauds committed by men in Australia has increased by 10 percent. Male fraudsters are now responsible for in excess of two in every three frauds.
  • The proportion of frauds perpetrated in groups has doubled, pointing to increased collusion, which makes detection more difficult.
  • Most perpetrators were in the age group of 46–55 years.
  • Investors and government agencies are more susceptible to being fleeced by fraudsters than any other category of victims. The value of frauds against financial institutions has also increased by almost eight times.
  • More than half the total fraud value occurred in Queensland. Almost a quarter occurred in NSW.
  • Over one in every 12 frauds committed had gambling or drugs as a motivation.
  • 40 percent of frauds in Australia take place over a 5-year period before being discovered – detection is taking too long.

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

“Our UK colleagues have just issued their own fraud barometer, which showed that fraud there had risen by 55 percent with a large rise in cyber-crime – so it is an international problem. Businesses in Australia and overseas need to guard themselves against the perennial threat of the ‘inside job’ and the rapidly increasing danger of cyber-attack from outside and within.”

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

Forensic

Forensic

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

Risk Consulting

Risk Consulting

Risk management should be embedded within the culture of the organisation so that everyone is focused on managing and optimising risk.

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.

 
Read more