The level of corporate fraud committed by insiders has increased for the second year in a row, according to figures from the Kroll Advisory Solutions Global Fraud Report. The report revealed that company employees committed 67% of corporate frauds in 2011, up from 54% a year earlier.Less than two-thirds (63%) of European companies were knowingly affected by fraud in 2011, while 56% said their exposure had increased over that time.Interestingly, the report highlighted data theft as one of the most prominent categories of fraud for European companies after 18% fell victim to it in the past year.Expansion into new and emerging markets was listed as one of the main causes of increased exposure to fraud. Other key global findings include: concern about fraud is dropping faster than fraud itself and developed markets reported significant levels of fraud.
“Increasingly, fraud exhibits industry-specific and regional characteristics, which require detailed knowledge of a market, sector, business process or culture to unearth, redress and prevent,” said Kroll Advisory Solutions chairman, Tommy Helsby. “Companies that get complacent about it do so at their own peril.”