Copyright 2016,

White Collar Crime Worldwide

There’s been a drop in the overall prevalence of fraud, according to a recent global report. However, a number of specific frauds are getting more common: In particular, management conflict of interest, supply chain fraud, internal financial fraud and corruption. Also, what’s interesting is that today’s fraudsters are getting increasingly sophisticated in structuring their crimes and using tactics to prevent detection

North America (7-7.9) *
66% **

North America has the lowest average fraud loss for any region as well as the lowest regional incidence for many types of frauds covered, with the exception of information and intellectual property theft. Investments have been made in a broad array of anti-fraud measures, including IT security, IP & Financial controls, risk management.

Europe (4-4.9)

Even though the overall prevalence of fraud has decreased, companies feel most vulnerable to information theft, loss or attack. Despite growing concerns, the region is less likely than average to adopt most anti-fraud strategies.

Latin America (3-3.9)

The picture here is one of transition. Although the overall number of companies suffering at least one fraud has declined, there has been a striking increase in companies reporting they’re at risk. Firms are investing in a range of fraud prevention strategies, including IT & physical asset security and financial controls.

Africa (2-2.9)

Africa reported the highest incidence of fraud among all regions. 78 percent of companies in Africa indicate a moderate to high vulnerability to bribery and corruption. While companies are widely adopting anti-fraud strategies, weaker internal controls make them less effective.

India (5-5.9)

Corruption and information theft, loss or attack are key challenges for companies in India. 78 percent of respondents indicated that their organisation is highly or moderately vulnerable to corruption and bribery. Fewer than 50 percent invest in anti-fraud measures, such as employee background screening and risk management, even though 59 percent of those that suffered from fraud said it was an inside job.

China (3-3.9)

China had the highest prevalence figures for vendor, supplier or procurement fraud and information theft, loss or attack amongst all countries surveyed, mostly due to high attrition. While above-average investments are made in staff-related fraud prevention, they aren’t enough when there is high level fraud perpetrated by senior management.

* Corruptions’ perception index: 10 - Very Clean; 0 - Highly Corrupt
** Percentage of companies affected by fraud

Source: Kroll Global Fraud Report, 2011