The study highlights the evolving nature of corporate fraud and emphasises that fraudsters tend to be long-standing, respected members of organizations, urging companies to strengthen internal controls and promote an ethical culture to effectively prevent and detect fraud.
Corporate fraud, often referred to as "white collar" crime, is a persistent and damaging problem that continues to make headlines and impact organisations worldwide. During my time with KPMG forensic services, I have witnessed firsthand the profound effects that fraud can have on companies, their employees, and society at large. The question that remains at the forefront of our efforts is: how can organisations better protect themselves against fraud, make it more difficult to commit, and detect it earlier?
To delve deeper into these critical challenges, KPMG conducted a detailed global survey to uncover the profile of the typical fraudster, understand their methods, and identify the organisational weaknesses they exploit.
As organisations navigate the complexities of corporate fraud, they need to take proactive steps to strengthen their defenses. This includes implementing robust internal controls, promoting an ethical culture, enhancing detection mechanisms, fostering collaboration and transparency, and adapting to technological changes. At KPMG firms, we are dedicated to helping clients address these challenges and achieve the best possible outcomes in their fight against fraud.
I invite you to explore the findings of our survey and consider the recommendations provided in this report. Together, we can work towards creating a more secure and trustworthy corporate environment.
The typical fraudster is often someone you wouldn't suspect—highly respected, long-serving, and seemingly loyal. This highlights the importance of vigilance and robust internal controls.
KPMG’s global fraud survey: key findings
The typical fraudster is male, 36-55, highly respected, and long-serving.
The most common type of fraud is misappropriation of assets – notably embezzlement and procurement.
Fraud occurs across a range of departments including Operations, Finance, the CEO’s office, and Procurement.
Weak controls are considered the prime reason for the frauds.
The number one detection method is tip-offs via whistleblowers or informal sources.
Fifty-five percent of frauds involved collaboration – typically with a group of 2-5 people.
