find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Face of corporate fraud unmasked

Face of corporate fraud unmasked

SYDNEY: A marked increase in fraud in Australia and New Zealand since 2006 will be exacerbated by the current financial crisis, according to KPMG's just -released eighth biennial Fraud…

SYDNEY: A marked increase in fraud in Australia and New Zealand since 2006 will be exacerbated by the current financial crisis, according to KPMG's just -released eighth biennial Fraud Survey.

Gambling has emerged as the most common motive for fraud. Almost half (44 per cent) of the total value of fraud was attributed to gambling, a two-fold increase over the 2006 survey.

"Our typical fraudster is a 38 year-old male with no known history of dishonesty," explained KPMG Forensic Australian practice head Gary Gill. "A non-management employee of the victim organisation for six years, he has held his current position for four years by the time of detection.

"Typically motivated by greed and acting alone, he misappropriates cash to an average value of $262,000 over 11 months before being detected by the organisation's internal controls. Perhaps most alarmingly, his employer can expect to recover as little as 12 per cent of the proceeds of the fraud."

Almost half (45 per cent) of respondents experienced at least one fraud during the two-year survey period, while in almost a quarter of cases (22 per cent) organisations had ignored relevant warning signs.

Poor internal controls remained the main factor allowing fraud to occur, and was identified as the most important pre-condition for 26 per cent of reported frauds.

"Conversely, internal control is the most common method by which respondents detected their largest fraud, covering 42 per cent of detected cases," Gill said. "Defrauded organisations most likely did little to prevent the fraud occurring and, in fact, probably missed a number of warning signs before eventually uncovering the fraud.

"An effective, business-driven approach to fraud risk management combines prevention, detection and response."

Gill said the typical fraudster was likely to be reported to the police (63 per cent) and almost as likely to be immediately dismissed (45 per cent).

Reasons cited by organisations for not reporting matters to the police included the relative insignificance of the matter (28 per cent), followed by lack of evidence (19 per cent) and return of money/property taken (15 per cent).

- Mark Phillips

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Face of corporate fraud unmasked
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Scales of Justice, ALA, right-to-die law
Oct 24 2017
‘Right-to-die’ laws would be a relief for terminally ill: ALA
The passage of an assisted dying bill through the lower house of Victorian Parliament has been haile...
Diversity
Oct 24 2017
Diversity top of agenda for future WA Law Society president
The advancement of diversity in the Western Australian legal profession will be one of the key items...
Jetski
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...