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One in four top Singapore firms hit by fraud
Nearly one in four of Singapore's major firms suffered from fraud last year. Most perpetrators were male employees searching for a better lifestyle.
KPMG accountants' recently released Singapore Fraud Survey Report found the incidents each cost an average of S$4.4 million (US$3.23 million). This is more than three times the amount of S$1.4 million (US$1.02 million) a similar survey found in 2004.
The 2008 survey identified a disturbing rise in computer-related fraud. In 2004 19 per cent of the firms polled reported such offences. This figure now stands at 59 per cent. Technology-related fraud is 'the fastest-growing and most pervasive category of fraud' in the business world, the report noted.
According to KPMG Singapore forensics head Bob Yap, the underlying gateway for the fraudsters is 'ever-increasing reliance on technology by businesses'. Twenty three per cent of Singapore's larger companies lost money to fraudulent employees last year. More than half of instances - 51 per cent --were committed by staff, nine per cent by managers. Customers were responsible for 29 per cent and suppliers, 9 per cent.
Typical perpetrators were men aged 25 to 40 with secondary or college education who had worked at the company for between two and five years. Almost three quarters of them wished "to fuel a lifestyle beyond the perpetrator's means". Methods included abusing expense accounts, accepting bribes from vendors, and helping outside parties to fix bids and prices.
Many said that they felt too much pressure to “meet performance expectations” and hoped to “gloss over underperformance or meet targets". In a testament to the value of strong human resources skills in the selection process, fellow employees raised the alarm about the actions of their less honest colleagues. About 88 per cent of the fraud offences were uncovered this way.
Most firms admitted that they could have done more to educate staff on how to recognise warning signs to minimise prevent fraud in the first place.
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