Profiles of a Fraudster

According to the “Profiles of a Fraudster 2024” report prepared in cooperation with KPMG Türkiye and the Turkish Integrity Center of Excellence (TICE), one in every four companies in Türkiye has experienced at least one fraud incident in the last two years, with the highest number of fraud cases occurring in the manufacturing sector.

The study, which also revealed that 75 percent of those who commit fraud in companies are men, indicates that half of the fraudsters work in positions below manager level, and their potential to commit fraud increases in parallel with their years of service. Moreover, the report reveals that the characteristics of individuals who commit fraud are not what one might typically expect.

KPMG Türkiye and TICE published the “Profiles of a Fraudster 2024” report, which is based on the survey conducted with the participation of employees of local and international companies operating in Türkiye. This report highlights the most common types of fraud in companies, the sectors where these cases are most prevalent, and the general characteristics and demographic profiles of fraudsters.

According to the report, 27 percent of multinational companies and 24 percent of local companies in Türkiye have experienced at least one fraud incident in the last two years. When analyzing the relationship between the rate of fraud incidents and the number of employees, it appears that fraud incidents are more common in companies with between 100 and 10,000 employees than in others. Over the past two years, the manufacturing sector, at 28 percent, has ranked first among sectors with the highest number of fraud cases in Türkiye. It is followed by banking/finance (15 percent), sales and marketing (11 percent), and energy (9 percent).

➥ Most fraud is committed by men.

Data on the gender of fraudsters reveal that fraud cases are predominantly committed by men. According to the 2016 international survey results, 79 percent of fraudsters were male and 17 percent were female, while in KPMG Türkiye's 2020 survey, these figures were 92 percent male and 8 percent female. In the 2024 Türkiye survey, 75 percent of the fraudsters were determined to be male and 25 percent female, indicating that men were generally involved in more fraud cases than women.

➥ Half of the fraudsters work in positions below manager.

Within the scope of the survey, it was examined at which title level fraud cases are most common and whether managerial positions or sub-managerial positions pose a greater fraud risk for organizations. When comparing the 2020 and 2024 surveys in Türkiye, it was found that fraud cases committed by employees without managerial authority occurred at a similar rate, increasing from 49 percent in 2020 to 52 percent in 2024.

➥ Damages caused by fraud.

When analyzing the losses incurred by organizations due to fraud cases, more than half of the incidents resulted in financial losses exceeding 1 million TRY. The data also indicate that the impact of employees at the managerial level is particularly significant in fraud cases resulting in losses of over 1 million TRY.

➥ Risk of fraud increases in the 26-45 age group.

According to the 2024 survey results, 47 percent of the fraudsters are between the ages of 36 and 45, 39 percent are between 26 and 35, and 11 percent are between 46 and 55. Similar to 2024, the findings of the 2020 survey in Türkiye, carried out again in cooperation with KPMG and TICE, also showed that individuals aged 26 to 45 commonly commit fraud.

Professional fraud can be defined as the illegal or unethical misuse of duties and powers for financial gain. Essentially, such behaviors can be considered acts in which an individual deceives his or her employer. These unethical practices pose significant threats to organizations and society at large, leading to severe economic burdens. For this reason, as KPMG, we publish comprehensive reports, particularly on the profiles and characteristics of fraud. Similarly, this year, in order to assess the fraud environment in Türkiye and predict future changes, we partnered with TICE and prepared this report analyzing fraud in Türkiye and the profiles of fraudsters. In this study, based on Turkish data, we aimed to shed light on sector dynamics by drawing comparisons with previous reports.

Oytun Önder

➥ Embezzlement crimes rank first.

The most common type of fraud in Türkiye is embezzlement or personal benefit, at 65 percent. It is followed by conflict of interest at 49 percent and misappropriation of assets and procurement frauds at 45 percent. On the other hand, financial statement fraud—often associated with senior management—remained at 10 percent in 2024, similar to 2020, despite its potential for substantial financial and reputational impact.

➥ As the number of employment years increases, so does the potential for fraud.

When reviewing the 2024 survey results, it becomes evident that an employee’s potential to commit fraud grows with increasing years of experience. Findings indicate that nearly 40 percent of fraud cases were perpetrated by employees who had been with their companies for 10 years or more. An analysis of the tenure of fraudsters within victim companies reveals that most had worked there for more than five years.

➥ The visible and real faces of fraudsters.

It may be presumed that fraudsters are more likely to be lonely, despotic, and strict employees, but the data indicate otherwise. Responses describe fraudsters as predominantly friendly (53 percent), persuasive (45 percent), and well-liked by others (39 percent). Interestingly, those who are not well-liked or respected by their environment—at 10 percent—commit the least fraud.

➥ Financial damages resulting from fraud cannot be collected.

According to the report, once fraud cases are detected, companies often take precautions—particularly by strengthening controls and resorting to disciplinary actions or legal proceedings. Nevertheless, 37 percent of these companies could not recover their financial losses at all, and 22 percent achieved only partial recovery. Conversely, only 10 percent managed to recoup the full amount of their losses.

As TICE, our vision is to share the data we obtain with the public in order to strengthen a transparent, accountable, responsible, and sustainable business culture and to contribute to the creation of reliable business environments. Fraud, which arises from unethical misuse of duties and authorities for personal gain, continues to pose a serious threat in the business world. Although measures to prevent fraud are continually being improved, fraudsters also adapt their methods, making it increasingly difficult for organizations to detect fraud. We hope that our survey and the report we conducted in cooperation with KPMG Türkiye will contribute to the Turkish business world and serve as a guiding resource in the fight against ethics and compliance violations.

Turkish Integrity Center of Excellence