find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Real Estate & Projects Lawyer (6+ years PAE)
Category: Property Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Top tier firm with offices nationally · High profile clients
View details
GFC yields mixed results across sectors for fraud levels

GFC yields mixed results across sectors for fraud levels

The global financial crisis has led to a rise in fraud within the financial services sector, but a drop in other industries such as construction, engineering and infrastructure, according to the…

The global financial crisis has led to a rise in fraud within the financial services sector, but a drop in other industries such as construction, engineering and infrastructure, according to the Kroll Annual Global Fraud Report.

Despite the commonly held perception that economic downturns lead to spikes in fraud levels, the survey found that, overall, fraud levels have remained stable.

The overall average combined loss to fraud reported by the companies surveyed over the last three years totalled $8.8 million, only 7 per cent higher than last year's figure of $8.2 million. In addition, 85 per cent of respondents to the 2009 survey reported that their company had experienced at least one incident of fraud over the last three years, compared with 86 per cent last year. Overall, 31 per cent of respondents said they believed fraud levels had declined, 34 per cent said they had experienced no change, while only 22 per cent reported an increase.

The most common form of fraud was theft of physical assets or stock, reported by 38 per cent of respondents (compared with 37 per cent last year). This was followed by information theft, loss or attack (25 per cent in 2009 compared with 27 per cent in 2008), management conflict of interest (23 per cent in 2009 against 26 per cent in 2008) and financial mismanagement (21 per cent in 2009 compared with 22 per cent in 2008).

However, these figures mask marked ups and downs between industry sectors, with five sectors reporting increases in average fraud losses and five reporting decreases.

For example, the financial services sector saw combined losses to fraud over the last three years rise to $15.2 million - 18 per cent above the 2008 figure. In addition, the number of respondents facing at least one incident of fraud rose from 79 per cent to 87 per cent. Notably, more than half the respondents in this sector said the GFC had led to an increase of fraud cases at their companies. The professional services sector had also seen a reasonable spike in fraud levels.

Meanwhile, the construction, engineering and infrastructure industry saw combined average fraud losses drop significantly from $14.2 million to $6.4 million, putting the sector - unusually - below the survey average. Similarly, natural resources companies, while experiencing a drop in revenues, also saw fraud levels drop.

>> For the latest news, views and analysis of issues affecting in-house lawyers, check out Lawyers Weekly's dedicated in-house site www.lawyersinhouse.com.au

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

GFC yields mixed results across sectors for fraud levels
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Scales of Justice, Victorian County Court, retiring judges
Aug 21 2017
Replacements named for retired Vic judges
Two new judicial officers have been appointed in the Victorian County Court, following the retire...
Applauds
Aug 21 2017
LCA applauds proposed Modern Slavery Act
The Law Council of Australia has welcomed new recommendations for the development of a Modern Slaver...
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 & ...