Consulting firm, KPMG, has released the results of its latest study of fraud, finding that over $115 million was lost to the Australian economy as a result to fraud over the last 6 months.

 

Financial institutions continued to be the largest victims of fraud, having lost almost $40m to fraudsters in the 6-month period to December 2010.

 

KPMG’s fourth Fraud Barometer found that average fraud levels eased from $2.3m per case to pre-GFC levels of $1.7m per case, with about half the reported cases involving fraudulent loans, investment scams and theft of investors’ money.

 

Accounting fraud continues to be the most prevalent type of fraud committed, with a third of the 67 cases falling into this category, amounting to $11 million.

 

Gary Gill, National Head of KPMG Forensic said The Fraud Barometer shows that accounting frauds most often impact commercial businesses and that these fraudsters were often trusted employees, who knew how to override internal controls and falsify records to conceal the fraud.

 

Other significant findings in this Fraud Barometer include:

  • The majority of frauds both by number and value (70 percent) continue to be perpetrated on the eastern seaboard (New South Wales, Queensland and Victoria).
  • Almost 50 percent of large frauds coming before the courts occurred in New South Wales, totalling $60m.
  • Western Australia’s booming economy seems to be driving an increased level of fraud, with $25m of large fraud cases, where the majority of victims were investors.

 

More information is at http://www.kpmg.com