Fraud racks organizations

|Canadian HR Reporter|Last Updated: 09/04/2003

In the past 12 months more than two-thirds of organizations around the world have suffered from fraud, shows a massive survey of 10,000 major organizations in 15 countries by Ernst & Young. Fraud: The Unmanaged Risk showed that almost one in 10 have suffered more than 50 frauds.

Eighty-two per cent of all identified frauds were committed by employees, almost a third of which were by management. Nearly half of the employees who committed fraud had been with the organization for more than five years and almost a quarter for more than 10 years.

Only a third of organizations believe they have done as much as they can do, cost effectively, to protect their organizations from fraud. The following chart shows the relationship between cost-effective protection and the number of frauds committed per country.