Combating fraud: know the facts.

There is no such thing as an unimportant fraud. Every organization needs to remain vigilant to improve the ability to combat fraud. Here are some 1994 fraud facts from a survey of 3,000 large and midsized U.S. companies.

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What steps are you planning to take to reduce fraud in your organization?

Review and improve           34%
internal controls
Training courses in fraud    21%
prevention and detection
Increase senior management   21%
focus on the problem
Fraud audit                  16%
Reference checks             10%
on new employees
Increase role                10%
of audit committee
Increase budget              9%
for internal audit
Establish a corporate        9%
code of conduct
Increase budget for          9%
security department
Code of sanctions against    8%
suppliers and contractors
Surveillance equipment       8%
Staff rotation policy        4%
Employment contracts         4%
Other                        3%

Note: Multiple responses given.

How were the frauds discovered?

Internal controls            52%
Notification                 51%
by employee
"whistle blower"
Internal auditor review      47%
Specific investigation       42%
by management
Notification                 34%
by customer
Accident                     28%
Anonymous letter             26%
Notification                 15%
by supplier
Specific investigation       14%
by employees
Notification                 11%
by police
Notification by              8%
government agency
Specific investigation       7%
by third party
External                     5%
auditor review
Other                        2%

Note: Multiple responses given.

Source: KPMG Peat Marwick