Fraud is increasing amongst high level executives, according to a new survey
Company bosses are increasingly committing fraud, according to a recently released report.
Those in the CEO or MD office account for an increase in committed fraud from just 11% in 2007 to 26% across the four-year period.
The research found that the typical fraudster will work in a finance related role often for more than 10 years and usually in a senior management or board role.
The reason is that senior employees are better able to override controls and are most prone to committing embezzlement or procurement fraud.
Over 31% of the cases in the survey involved the payment of bribes or other forms of corruption.
The research also found that "red flag" warnings are being dramatically missed by employees.
The warning signs include: employees who rarely takes holidays, who lead an excessive lifestyle compared with their income or who are unwilling to provide requested information.
The report cited was carried out by KPMG and is entitled “Who is the typical fraudster?”
Richard Powell KPMG’s forensic investigations chief said: “It is important that internal auditors and others know how to recognise a red flag and how to respond and that there is a culture which encourages reporting of matters of potential concern.”
With the UK’s Bribery Act fast approaching dealing with corruption and fraud is a key issue for risk managers.
