Crimes of deception are well-established; people have been trying to con others since the beginning of mankind. However, technological, social, demographic and economic developments have changed the face of fraud and established it as an epidemic that is costing the Australian economy AUD$5.8 billion a year.
The percentage of Australian firms impacted by fraud, particularly for significant amounts of money, is substantially higher than global averages. More than one in three (37 percent) Australian firms have reported fraud costs of more than US$1 million, a figure which is 20
percent higher than the global average.1 In addition, four out of 10
Australian firms reported at least one incident of fraud, while 24 percent of firms globally reported the same.
The Global Financial Crisis has added to the problem, with the dollar value of individual cases escalating during the downturn. Australian courts saw 81 cases of fraud worth A$217.9 million in the second half of 2009, up from 69 cases worth A$100.1 million in the first half of that year.2 These figures are particularly startling when it is revealed that fraud is one of the most under-reported crimes.
Alarmingly, 81 percent of Australian firms are worried about their lack
of preparation regarding fraud risks.3 This shouldn't have to be the case - there are a number of simple measures that can be used to protect your business from this very real and expensive threat.