28 March 2011
|The KPMG fraud barometer published today suggests that fraud in New Zealand may be increasing. In the six months to December 2010, the incidence and value of fraud increased. This may be a temporary trend as a result of a number of large prosecutions. The value of large fraud cases totalled $100 million (up from $72 million in the first half of 2010). There were 30 cases in total (up from 36 in the first six months of 2010). Five cases relating to investors and financial institutions involved more than $3million each. Interestingly KPMG also published the fraud barometer for Australia today . That shows fraud levels have dropped over the past year, possibly because businesses have stepped up their detection systems in the wake of the financial crisis. In the second half of last year fraud cases totalling $116 million went before the courts. That compares to $132 million in the first half of last year.In Australia, most cases involved accounting fraud, with the perpetrators tending to be employees who knew how to get past internal controls and falsify records.