Opportunistic Pilfering in Corporate Fraud: KPMG's Analysis
"Exploring the Transition from Law-Abiding Entrepreneurs to Business Offenders"
Breaking it down in Frankfurt, Germany...
It seems the saying, "Honesty is the best policy," doesn't always ring true in the world of corporate fraud. A study conducted by KPMG paints a picture of a cunning, opportunistic underbelly, with more than 250 cases of fraud over the past five years under scrutiny. Local offices of the auditing and consulting firm weighed in on these cases, meticulously analyzing each case via questionnaires, case studies, and interviews with the crooks themselves.
Sneaky Swindlers
So, who's the face behind the fraud? According to KPMG's research, the wolf in sheep's clothing is typically male, aged between 36-55, and has been with the company for at least half a decade. Don't be fooled by their amicable demeanor, extroverted charm, or high standing within the organization. They're likely friendly as a fox, smiling all the way to the bank.
Motives, Madness, and Greed
Why does the wolf strike? It's all about the dough. The primary motives for fraud? Opportunism and greed—they seize the chance because they can. No dire financial straits or professional woes here—simply the irresistible allure of cold, hard cash.
Land of Collaboration
It's a team effort, folks—fraud flourishes in the company of others. The typical fraud case involves a group of two to five individuals. You'll often find employees from central functions like finance or management in these fraud squads.
Slithering through Loose Controls
What sets the stage for this corporate caper? Weak internal controls, of course. These offers an opportunistic playground for underhanded maneuvers by providing ample room for misconduct.
New-age Sleuths
Contrary to what you might think, technology doesn't always save the day—whistleblowers, email analyses, and financial data are often the unsung heroes in ferreting out fraudulent shenanigans.
The findings of the KPMG study reveal that the perpetrators of corporate fraud are often men, aged 36-55, with a decade of service under their belt, Camouflaging their true intentions with friendly demeanor and charm, they commit fraud primarily driven by opportunism and greed, rather than financial distress. In most cases, these fraudsters form groups of 2 to 5 individuals, often found in crucial departments like finance or management, and manage to carry out their deceitful strategies due to weak internal controls within the business, making whistleblowers, email analyses, and financial data crucial tools in uncovering such illicit activities within the general-news sphere, including crime-and-justice sectors.
