Fraudsters typical investigated by KPMG Romania presented the following characteristics:
• Age between 26 and 35 years ( 62% of fraudsters were between 26 and 35 years )
• holds a position of manager or executive
• Motivated by greed ( 77% of fraud)
• With an autocratic management style ( 31% of fraud)
• Persistent ( 92% of fraud continued for three or more years )
KPMG global profile reflects the fraudster is often employee of the victim ( 61 % ), working in secret with others ( 70%) and the victim was employed by the organization for more than six years before committing to a fraud ( 42%).
" Anti -fraud professionals have long debated whether the profile may be fraudster developed a sufficiently precise to enable organizations to discover these individuals in action or even before committing fraud, " says Dean Friedman, leader of KPMG Investigation Network Europe, Middle East and Africa. " Predicting a crime is, at least for now, the science fiction field. But analysis of the changing nature of fraud and the fraudster can help organizations strengthen their defense against these criminal activities. Being on guard means being prepared "
Characteristics of a typical fraudster globally include:
• Age between 36 and 45 years ( 70 percent of fraudsters with ages between 36 and 55 years ).
• Employee in an executive management position in the financial function, operational and sales / marketing.
• Holds a manager or executive position ( 25 and 29 percent respectively).
• Employee in the organization for more than six years.
• opportunistic fraud – which the first offense, trusted employee's behavior surprises others. Predators, those seeking organizations can begin almost immediately after employment scheme and defraud the organization deliberately and without remorse, are rare.
Overall profile indicates that 70 % of fraudsters were not working alone to commit fraud. In Romania, all analyzed cases involving accomplices. Richard Perrin, Partner Risk Consulting, KPMG Romania, says: " The results of this study indicate that, during the economic crisis, perpetrators focused on misappropriation of company funds through procurement fraud and other forms of theft.
They used the help of friends or former associates to hide shares for an average of 3 to 5 years. Almost half of fraudsters seem to have used fraudulent gains to finance their lifestyle at the expense of the organization.Therefore, organizations need to dig deeper before you start working with a potential business partner, to ensure that no conflict of interest between their employees and potential business partner. "
Global study found that more than half ( 54 %) of fraud were facilitated by ineffective internal controls. Cases from Romania shows, however, that many of the frauds were committed by crossing controls managers – in 38 % of frauds investigated unlimited authority managers was a key factor in achieving fraud.
Jimmy Helm, Head of Fraud Investigation Services KPMG in Central and Eastern Europe, said: " The findings show that shareholders, supervisors and other stakeholders need to increase the level of supervision over the activities of management and members to respond to failure processes and internal control systems of the organization. One way to improve the internal control environment is implementing an efficient reporting integrity ( " whistle -blowing mechanism" ) – most of the cases investigated in Romania were identified through informal tips.
This observation is strengthened by the finding that in those cases where fraud was identified by warnings of integrity, the average length of deployment fraud was less than fraud discovered by traditional methods such as internal audits. The probability of early detection is itself a preventive control and obviously reduce potential losses that the organization may suffer from fraud. "
Data were collected from fraud investigations conducted by specialists KPMG member firms in Europe, Middle East and Africa ( EMEA), North America and South America, and Asia -Pacific in August 2011 – February 2013. KPMG analyzed a total of 596 involved persons in fraud actions in 78 countries. The study examined the investigations of fraud by " white- collar " in all regions where the perpetrator was known and there was sufficient contextual information about action incorporating comments and opinions investigation coordinators from 42 countries. The report is also based on similar studies conducted in 2011 and 2007.