KPMG Fraud and Misconduct Survey 2010: The Culprit Behind
This year’s KPMG Fraud and Misconduct survey shows that both the public and private sectors of New Zealand and Australia have been run over by acts of deception from people motivated by greed and lifestyle, among other major reasons.
The latest survey of KPMG reports an escalated amount being lost to fraud from the top organisations, about $345.4 million compared to $301.1 million two years ago. But respondents to the survey added that the figures might just be the “tip of the iceberg,” believing that about two-thirds of the losses have probably not been detected.
The survey cited greed, gambling, and personal financial pressure as major motivators of the perpetrators of fraud, with greed being the strongest. KPMG reported that about 65 per cent of major frauds have been committed by people who have transactions in the organization that allow them to act alone.
The figures have dramatically increased. From $1.5 million in 2008, the average fraud rose to $3 million this year. When compared with the 2008 survey, the figures of separate frauds that have been reported so far are outnumbered.
KPMG’s National Head of Forensic Practice Stephen Bell revealed the cost of fraud that had taken its toll on the victim companies, about $3.8 million per organization this year from $1.9 million two years ago. Bell also mentioned that the real fraud price for the New Zealand market can be substantially more, reinforcing the one-thirds of frauds that have not been detected.
The latest survey of KPMG also probes deeper into the extent and nature of fraud in the public and private sectors of New Zealand and Australia.