Profile of a typical fraudster
Posted December 4, 2013 11:45 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – As technology changes, so do the schemes to defraud organizations of millions of dollars.
White collar crime is still the most common type of fraud in Canada and around the world and a report from KPMG finds the typical swindler is 36 to 45 years old, an executive or manager, strikes a number of times over one to five years and has been employed by their origination at least six years.
KPMG’s International’s Global Profiles of the Fraudster also outlines three different faces of fraud.
- The opportunist: a first-time offender, trusted employee, in a position of responsibility; this perpetrator is often male and married with children, with a non-sharable problem that can be solved by money. The alleged behaviour comes as a surprise to others.
- The predator: someone who seeks out an organization to start a scheme almost immediately upon being hired and deliberately defrauds the organization with little remorse; these fraudsters are less common.
- The colluder: this perpetrator is less common in Canada than many countries around the world; nonetheless just under 50 per cent of Canadian fraudsters still found it tough to go solo and colluded with others. These collaborators are most frequently internal parties working together.
“In Canada, many organizations tend to under invest in antifraud defences until required by legislation. It is impossible to predict a crime before it occurs, but by analyzing the constantly changing nature of fraud, we can help organizations stiffen their defences against these criminal activities,” says John Williams, Partner and National Service Line Leader, KPMG Forensic.
“Ultimately, the fraudster of tomorrow will depend on the opportunities of the day,” adds James McAuley, Partner, KPMG Forensic. “Two decades ago, illicitly taking money from a bank was accomplished by a closely knit gang using violent methods or forged signatures. Since that time, the ways to commit fraud have been transformed by technology – the Internet, smart devices and the ability to analyze vast amounts of data.”
McAuley says companies have to be keenly aware of the impact of new technologies on fraud risk and act pre-emptively.
