Global profiles of the fraudster

We are pleased to share KPMG’s latest publication, ’Global profiles of the fraudster’ – a powerful new study offering a deeper understanding of the individuals behind today’s corporate fraud.

In an era of rising complexity and risk, the insights from this report are more critical than ever. Drawing on forensic case data from around the world, the publication uncovers key behavioral patterns, organizational blind spots, and the evolving techniques used by fraudsters.

Below some of the highlights are included:

• Typical fraudsters were highly respected male between 36 and 55 years old, reasonably long-serving (6+ years) and seemingly loyal.
• The predominant motivation behind the crime was simple financial gain and greed, followed by opportunism.
• Fraudulent Financial Reporting: 20% of fraud cases involved financial misreporting, with 56% linked to improper revenue recognition. The remaining 80% involved, among other things, assets misappropriation, falsified documentation and theft of assets.
• Weak Internal Controls: 76% of fraud cases were due to inadequate controls, highlighting the need for stronger systems.
• Detection and Prevention: The most common detection method is tip-offs via whistleblowers or informal sources. Enhancing internal controls and promoting an ethical culture are crucial steps in mitigating fraud risks.
• Cyber Fraud Insights: 5% of fraud cases were cyber-related, focusing on phishing, CEO fraud, and ransomware. The main objectives were acquiring personal data, disrupting services, extortion, and identity theft. AI and cryptocurrency are not yet major factors, but expected to grow in influence. Cyber fraud is more likely to be detected by data analytics, management review and internal controls, suggesting that current cyber defenses are relatively effective. However, there may be undetected cases due to inadequate controls.

If you are interested, please check out the detailed report as attached.

We would be happy to discuss what these findings mean for your organization and how we can support you in strengthening your fraud risk strategy.