Kroll Global Fraud Report - Annual Edition 2009/2010

The downturn and fraud: Your sector may be even better off

Those sectors closer to the economic crisis – financial services and professional services in particular – have seen an increase in their incidence and level of fraud. Those for whom the main economic news has been a pronounced drop in sales, and therefore business activity – such as construction and natural resources – have instead seen noticeable declines. Read more.

Regional Analysis – Europe, North America, Asia Pacific, Africa and the Middle East

Spotlight on how the economic downturn has impacted fraud in four regions. In the Asia-Pacific region, the downturn has impeded the ability of fraudsters to operate. The lowest number of frauds occur in North America, while in Europe, companies have invested heavily in anti-fraud measures. By far the worst affected region in the survey was the Middle East & Africa, where companies are still highly vulnerable.

Financial services fraud: Hardest hit by the economic downturn

How can employee and vendor background checks help in the fight against credit card fraud?

On the increase are investment frauds which target groups with a common bond, known as affinity frauds.

Actionable commercial intelligence can help foreign investors in South East Asia deal with bad investments.

Beyond due diligence, information security assessments can help minimise risks associated with mergers and acquisitions.

Due diligence, employee screening and training, and transaction monitoring can help insurance companies reduce fraud.

Professional and legal services: Reducing the risk of fraud in a recession

Arbitration may hamper disputes where fraud is involved by limiting electronic discovery and discouraging parties from conducting independent investigative due diligence.

Recession and new technologies are increasing the risk of breaching confidentiality via data-loss for the professional services sector.

New legislation and Serious Fraud Office act to tighten regulations around bribery and corruption for UK businesses.

Ponzi scheme prevention and detection could be achieved through the use of multiple source reporting.

Mexico: Spotlight on manufacturing and the shadow pharmaceutical market

Consistent integrity and accountability programs help manufacturing firms in Mexico create an effective response to fraud risk.

Pharmaceutical companies in Mexico now realise that anti-counterfeiting measures and distribution channel management are key to reducing fraud.

Retail and wholesale sector fraud: A look at India’s retail sector and counterfeit garmets from China

Market entry into India’s retail sector must be carefully planned, with business intelligence and due diligence as the keys to success.

Counterfeit apparel being sold in Korea are primarily produced in China, which is struggling to clean up fraud in fashion production.

IT outsourcing: Is it worth the risk?

IT outsourcing companies invest heavily to prevent cyber crime, they can also be victims of fraud typically related to the cyber world, such as information theft and intellectual property theft. Kroll highlights the importance of vendor due diligence and screening to reduce risk of fraud in outsourcing. Read more.

Not all identity theft is high-tech, and no one is immune

Criminals are finding new ways to steal identities, including targeting employees. Identity theft is the fastest growing crime in the US and Canada, with companies facing loss from low tech and high tech means. Read more.

The Foreign Corrupt Practices Act, the Siemens settlement and the energy sector

The energy industry has long been fertile ground for corruption and bribery and,therefore, ripe for Foreign Corrupt Practices Act (FCPA) enforcement activity. The Siemens case provides numerous FCPA compliance lessons for the energy industry. Read more.

Fraud risks in commercial aviation

Fraud risks in commercial aviation include ticketing, catering, luggage, cargo, maintenance and frequent flyer programs. Airline companies need appropriate controls specific to each area of operation. They also need to align such controls with the creation of a compliance culture. Read more.

Three predictions for the future: The impact of the economy on global construction

Predictions for the next three years for the construction industry include an increase in collusive bidding, bid-rigging, kick-backs, and billing schemes for core, shell and interiors work. There will also be substantial increases in public contracts, particularly infrastructure projects. Read more.

Fraud heat map: Where industry feels the pain, and how it reacts

Kroll surveys different sectors, pinpointing where fraud is more prevalent, which areas experience the highest loss from fraud and the countermeasures adopted for each type of fraud. Read more.