In some sectors, said the report, over one fifth of the companies have lost more than $1 million to fraud. New technologies, new investors, and expansion into new overseas markets have pened the door to different forms of fraud, the report concludes.
In retail/wholesale distribution, companies suffered only 29% of the average loss compared with other firms. Though total losses may have been lower, the report indicates one in five retail/wholesale distribution companies consider themselves highly vulnerable to physical theft and to procurement fraud.
Over 40% of companies in this category say they suffered losses from physical theft. About 30% said they had experienced loss due to procurement fraud.
"Businesses may be too focused on physical goods and not look[ing] at other vulnerabilities," said the report. It points to reduced internal controls at 31% of companies.
The Global Fraud Report is available from www.kroll.com/fraud.