Global Fraud Incidents on the Rise

 
 

Fraud incidents continue to increase in frequency, with 84% of companies reporting at least one occurrence in the past year, up from 82% in 2016, according to Kroll’s tenth annual Global Fraud & Risk Report.

For the first time in the survey’s history, information theft, loss, or attack was the most prevalent type of fraud experienced, with 29% reporting such incidents, compared to 24% in 2016. Theft of physical assets or stock, which had long been the most common type of fraud, came in second at 27%, and  management conflict of interest was third at 26%. The greatest year-over-year increase in 2017 was in corruption and bribery incidents, which were reported by 21% of respondents, a 7% jump.

As fraud continues to rise, the lines between forms of fraud have been blurred. “Many risks can no longer be neatly categorized and labeled as fraud-, cyber-, or security-related,” due to the convergence of a global economy, growing digital connections, and human behavioral factors, said Kroll CEO David R. Fontaine.

To address this new threat environment, he added, organizations must adopt a holistic approach to enterprise risk management and develop integrated risk mitigation strategies.

 
Caroline McDonald

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About the Author

Caroline McDonald is a writer and former senior editor of Risk Management.

 
 
 

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