KPMG analyzed 348 actual fraud investigations in 69 countries to narrow down the profile of a typical fraudster.
The analysis revealed, the typical fraudster is between the ages of 36 and 45. This group rose from 39% of cases in 2007 to 41% in 2011. This is closely followed by a group accounting for 35% of fraudsters who were between the ages of 46 and 55.
While men were found to be more likely perpetrators of detected fraud (85% in 2007 and 87% in 2011), women in the Americas (22%) and Asia Pacific (23%) are almost three times more likely to be involved in fraud than in EEM (8%). KPMG contributes this to the fact that fewer women are in senior positions in “old Europe” and Africa compared to other regions of the world.
Within the fraud matters analyzed, the results found people most often entrusted with a company’s sensitive information and able to override controls are statistically more likely to become perpetrators. The analysis shows 53% of those in senior-level supervisory and management positions are likely to commit fraud.
The survey finds those involved in committing fraud work in the finance function (32%). After finance, fraudsters are most likely to work in the chief executive’s /managing director’s office (26%) or in operations and sales (25%). Employees in the legal function are the least likely perpetrators.
The 2011 analysis shows an increase in the detection of fraud among longer-term employees. The results revealed 60% of fraudsters worked at the company for more than five years before the fraud was detected, 33% of fraudsters worked there for more than 10 years.
Reasons behind committing fraud include attempts to conceal losses or poor performance. Misappropriation of assets, notably due to embezzlement and procurement fraud, accounted for 43% of the frauds surveyed.
The survey data also reveals a slight decrease in the internal disclosure of fraud, down from half of all cases in 2007 to 46%. Full disclosure of details fell from 35% in 2007 to 13% in 2011.
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