Friday 15th November, 2013

According to the latest study by KPMG International Profile of a Fraudster culprits are predominantly an employee colluding with others outside the organisation. The report finds that in these turbulent economic times, businesses and investors alike should be aware that fraudsters can come in all shapes and sizes. Most commonly, they are employed by the victim organisation (61 percent).

In 70 percent of frauds, the perpetrator found it tough to go solo and colluded with others. Of these, 44 percent took their time before committing a fraudulent act, having been employed for more than six years by the victim organisation. Although in the UK it was found to be between one and four years.

Déan Friedman, leader of KPMG’s Investigations Network in the EMEA region for the Global Forensic practice said: “Fraud specialists have long debated whether it is possible to develop a profile of a fraudster that is accurate enough to enable organisations to catch people in the act of fraud or even beforehand.”  

Some characteristics of the typical swindler shown in the report reveal that 70 percent of fraudsters are aged between of 36 and 55. They are employed in an executive, finance, operations or sales/marketing function and hold a managerial or executive position (25 and 29 percent respectively).

He added: "Analysis of the constantly changing nature of fraud and the fraudster can help organisations stiffen their defences against these criminal activities. Forewarned is forearmed."

Organisations need to understand the ever-changing behaviour of the fraudster if they are to mitigate the risk of fraud and then to respond quickly to such crimes if they occur.  

One major change is the growing use of technology by fraudsters, and not just in the technologically advanced countries. A concern for all business is that we are about to see a new generation of people, able to use more technology and with access to much more information than past generations.

“The intriguing thing about fraud is that it is always morphing, like a strain of flu; you can cure today’s strain, but next year it evolves into something as bad if not worse,” said Friedman.