Collusive fraud rates greater in higher growth markets

Higher growth markets like India, Latin America and the Caribbean exhibit higher collusive fraud rates as than developed markets like the US, Australia and New Zealand, where fraudsters tend to act solo, according to a KPMG international report titled "Global profiles of the fraudster". Sixty-two per cent of the frauds in India are committed in collusion, similar to global trends. Colluding fraudsters can inflict greater damage on companies than individuals. Fraudsters who collude tend to be senior employees who have worked at the company for longer than individual fraudsters. Globally, 35 per cent of fraudsters are executives or non-executive directors, compared with 23 per cent in India. The study shows the scourge of fraud continues to harm corporate reputations, with weak controls being seen as a growing problem and technology proving to be a double-edged sword that enhances the growth of fraudsters. It recommends using technology itself to fight the problem, awareness of business partners and third parties, and vigilance against internal threats.