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.