Recently, the 2018 Report to The Nations was released. This is a worldwide report published by the Association of Certified Fraud Examiners (ACFE)
Below are some of the key findings related to New Zealand and Australia.
What are the most common types of fraud in New Zealand, Australia and the rest of the Pacific?
- Asset Misappropriation 80%
- Corruption 51%
- Financial Statement Fraud 13%
How do New Zealand and Australian companies detect fraud?
2018 saw a massive increase in frauds being reported via dedicated whistleblowing mechanisms. These include:
- Telephone hotlines – 37%
- Email – 37%
- Online forms – 35%
Among organisations with hotlines and reporting mechanisms, losses caused by fraud were 57% smaller.
This shows that companies who incorporate fraud reporting mechanisms are much more likely to detect fraud early.
Of tips came from employees
What type of organisations were targeted by fraud the most?
Below are the number of fraud cases per type of company.
Median loss of $500,000 per case.
Banks and financial services
Median loss of $310,000 per case.
Government & public administration
Median loss of $129,000 per case.
Healthcare companies and organisations
Median loss of $100,000 per case.
Median losses were greater when more than one person was involved.
Median loss in cases with one perpetrator
Median loss in cases with two or more perpetrators
What is the typical profile of a perpetrator
- 73% of workplace frauds were committed by men.
- The median age for all perpetrators is 42 years old.
- In 81% of cases, a fraudster would display questionable characteristics such as
- Living beyond their means
- Unusually close associations with a vendor or customer
- Financial difficulties.
Click here to view the full ACFE report for the Asia-Pacific region.
How can a fraud investigation help your business?
If you are the victim of a fraud, you and your business could lose a large amount of money. For this reason, it is important that you get a suspected fraud investigated as soon as possible.
Following a substantial rise in employer fraud, credit card, and cyber-crime, New Zealanders are investing their time and money into fraud prevention strategies to keep their money safe.
With our help, you can protect yourself or your business against fraud. Get in touch with us today!