The proportion of executives reporting that their companies fell victim to fraud in the past year rose significantly to 82% (from 75% in 2015 and 70% in 2013), with Kroll’s survey duly highlighting the escalating threat posed to corporate reputation and regulatory compliance.
According to those executives surveyed for the 2016-2017 Kroll Annual Global Fraud and Risk Report, it would appear that fraud, cyber and security incidents are now the ‘new normal’ for companies across the world. Cyber incidents were even more commonplace, with 85% of executives surveyed stating that their company has suffered a cyber incident across the past 12 months. Over two-thirds (68%) reported the occurrence of at least one security incident during the course of the year.
Despite widespread concerns about external attacks, the survey findings reveal that the most common perpetrators of fraud, cyber and security incidents over the past 12 months were, in fact, current and former employees.
Six out of ten respondents (60%) working for companies that suffered from fraud identified a combination of perpetrators that included current employees, former employees and third parties. Almost half (49%) said that incidents involved all three groups. Junior staff were cited as being the key perpetrators in two-fifths (39%) of fraud cases, followed by senior or middle management (30%) and freelance or temporary employees (27%). Former employees were also identified as being responsible for 27% of those incidents reported.