Insights & Reports > Kroll Global Fraud Report

US$500 Billion up for grabs in stimulus corruption:
The economics of prevention

As every good detective knows, all crimes need motive, means, and opportunity. For the corrupt official or business manager, the motive is a given, and they can usually find the means to strike deals that arouse little suspicion. It is just a matter of waiting for the opportunity to arise. Read more

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Agents and Intermediaries:
If they are corrupt, you get the blame

Companies with any exposure to risks from corrupt practices, known or unknown, are facing a perfect storm. The worldwide economic meltdown has placed increased pressure on business to generate returns. Greater, more global competition is focused on ever fewer opportunities – often in riskier, emerging markets which are performing better than others. Read more

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A private firm fighting public corruption:
A Mexican example

Mexico has received substantial foreign investment in recent years. It is an attractive market with a well-developed infrastructure, liberal regulatory regime, and political commitment to improve the business climate. Although investment flows continue, several deep-rooted problems impede the country’s ability to sustain high growth rates and foster economic and social development. High levels of government corruption stand out among these. Read more

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Compliance checks in a non-compliant market:
Going beyond due diligence

It is a sad reality of doing business in many parts of the world that compliance has not, until very recently, bothered some corporations a great deal. Indeed, I remember being told at a local competitor’s office on my second day in India, in no uncertain terms, that Kroll would never have a successful business here because “people don’t give a damn about fraud and corruption” – except that it was expressed rather more colorfully. Read more

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Transparency International’s Bribe Payers Index 2008

The latest index is based on two questions posed to 2,742 senior business executives from companies in 26 countries as part of TI’s larger 2008 Bribe Payers Survey. These asked how likely it was for foreign firms from specific countries to use bribes when operating in the executive’s country; answers were restricted to those states with which companies respondents had experience in dealing. In short, executives provided informed perceptions of the sources of foreign bribery. Read more

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Where there’s smoke, there’s fire: Corruption in public contracting

Recent incidents of fraud in public contracting in the United States have shown that concerns over corruption are often justified. April 2009, for example, saw corruption and conflicts of interest being unmasked at a rapid rate. Read more

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Consent management: Coping with the news of fraud

Companies survive and prosper only with the consent of key stakeholders: customers, investors, and government agencies to name just a few. Lose their trust and cooperation and they can pull the plug by refusing to buy your products, your stocks, or your bonds, or by refusing to grant you licenses to operate. This has always been true. Right now, with trust in corporations a fragile commodity, it is true in spades. Read more

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State of play of Pay-To-Play

Pay-to-play has been the state of play since the earliest days of commerce. A flurry of criminal and civil cases in the United States involving the management of public pension funds, however, has recently raised its profile. Prosecutors and regulators are now clamping down on investment firms and their agents who use ostensibly legal, or outright illegal, means to corrupt public officials. Read more

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Masterful heists, minimal returns

According to Interpol, art theft is the fourth-largest crime worldwide after drugs, money laundering, and arms sales. The FBI estimates that the industry is worth US$6 billion a year, and only 12 to 15 percent of stolen art is ever recovered, according to the Art Loss Register (ALR).
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Spotting a fraudster’s “Tell”: Catching online gambling cheats through behavior patterns

Online gambling is growing fast, fueled by developments in broadband communications and mobile technology. The large amounts of money involved attract criminals who seek to defraud both operators and customers through a varied and evolving repertoire. Read more