Lawyers Weekly - legal news for Australian lawyers

Powered by MOMENTUM MEDIA
lawyers weekly logo
Advertisement
NewLaw

Companies beware employee fraud

Australian companies are facing increased chances of being defrauded by organised crime groups, but the main perpetrators are still employees, particularly those in management, KPMG has found.A…

August 25, 2009 By Lawyers Weekly
expand image

Australian companies are facing increased chances of being defrauded by organised crime groups, but the main perpetrators are still employees, particularly those in management, KPMG has found.

A fraud barometer has been released in Australia by accounting group KPMG, which revealed that in the 18 months to June company management had committed the most frauds for the most value.

The barometer - measured on criminal court actions in Australia which exceed $100,000 - found management fraud amounted to a total value of $106 million, while organised crime was nearly half that, at $57 million.

KPMG forensics director Rod McKemmish told The Australian that the majority of management fraud was committed by executives who had privileged access to company IT systems.

"If you think of the manager and their role, they tend to have a lot more authority, so they have a greater opportunity to manipulate the systems," he said.

"A lot of process and control is driven to the lower end of the organisation, so it's weaknesses in those processes and controls that allow this to happen and these people are in positions where they can authorise and allow things to happen a lot more easily (than junior employees)."

You need to be a member to post comments. Become a member today
Got a tip for us?
If you have any news tips or stories to share, feel free to send them our way.
lawyersweekly jobs image
lawyersweekly jobs
Discover the latest legal jobs
Find Australian legal jobs, employment & career opportunities
Momentum Media Logo
Most Innovative Company