Study: 82% of executives experienced fraud in 2016
- The Kroll Annual Global Fraud and Risk Report shows a significant rise in fraud from 2015 to 2016. In a worldwide survey of business leaders, 82% said they experienced incidents of fraud last year compared with 75% in 2015.
- The study also showed that 85% of executives reported cyber breaches and more than two-thirds experienced security incidents.
- Current and former employees were largely the perpetrators, according to the study. Of the respondents whose companies experienced fraud, 60% said the perpetrators included current and former employees, along with third parties. Junior staff were cited most often as responsible, said 39% of the respondents.
Insiders were mostly responsible for the fraud and risk occurring at the companies in the survey. That revelation likely isn't a surprise to many employers.
The rise in fraud and risk within just a year, between 2015 and 2016, should alert companies to put more resources into cybersecurity protections. HR is an easy target for many cybercriminals thanks to the deluge of personal information the department handles daily. Some forms of ransomware have specifically targeted HR managers.
A real issue is that many cases of cyber breaches are accidental, meaning that employers will need to put more resources into ensuring all employees at a company are educated on the causes of cyber breaches and how to avoid them.