A snapshot of fraud in Australia

A recent article by the Australian Financial Review reported that cyber and internal fraud is well and truly alive in Australia. This is no surprise, as there will always be incentives for people to commit fraud when the opportunity presents itself. However, fraudsters are becoming smarter and more complex in the way they commit white collar fraud, and organised crime groups are expected to recruit internally from within companies. The article also reported that oftentimes, fraud is committed by management looking to fund flashy lifestyles.

Here are some alarming statistics regarding fraud in Australia:

• The total value of fraud cases brought before Australian courts between April – September 2015 was $128.4 million, averaging $1.4 million per case
• Frauds committed by internal management were the most common, averaging $3.3 million in the same period
• A whopping 69% of fraud perpetrators were attributed internally to employees or managers, with cyber crime being an underlying theme
• In 2015, Australia was the 8^th highest source in the world from which the largest amount of malicious online activity originated

Sources:
Fraud Barometer: The face of Australian fraud in 2015, KPMG

Internet Security Threat Report Volume 20, Symantec

It is interesting to note that fraud perpetrators do not generally have a ‘type’. It could be perpetrated by everyone from externals, employees to senior management level. According to the article above, there seems to be one theme that runs through them all – that criminals are increasingly attempting to use cyber channels to commit fraud, as well as to infiltrate internal ranks.

What this means is that organisations have to be more vigilant and step up their measures in the fight against fraud. They have to think ahead, anticipate new threats, and develop a proactive response to thwart fraudsters.

Akolade’s 5^th Annual Australian Fraud Summit May 24 - 26 2016 in Sydney, brings together thought leaders in the fight against fraud. Join the discussion and glean top tips speakers in the private and public sectors. For more information or to register your attendance, click here.

Su grew up dreaming of being a journalist, dodging bullets and gunfire with a camera thrust in front of her reporting from a war zone. Having realised that she is not really as agile as she thought, she has settled for dodging cockroaches in metropolitan Sydney as her adrenaline fix. Su is inquisitive and loves a good challenge, which is why she has chosen to produce conferences at Akolade. In her spare time, Su likes to read, drink green tea, and fantasise about making the world a better place; getting rid of the need for war journalists entirely.