Corporate Fraud Incident Reports Stop Climbing
The Network and BDO Consulting Release Q1 2010 Fraud Activity in Quarterly Corporate Fraud Index
May 12, 2010 09:03 AM Eastern Daylight Time
NORCROSS, Ga.--(EON: Enhanced Online News)--The Network, Inc., a leading provider of governance, risk
and compliance (GRC) solutions, and BDO Consulting, a division of BDO Seidman, LLP, released the first quarter
2010 findings of its Quarterly Corporate Fraud Index. In first quarter 2010, fraud incident reporting accounted for
20.2 percent of all compliance reporting activity from more than 1,000 organizations worldwide.
For the past three consecutive quarters, fraud reports have leveled around 20.2 percent, according to the Quarterly
Corporate Fraud Index. Comparatively, in first quarter 2007, fraud accounted for 14.3 percent of all reports.
“While still high, this is a promising sign that fraud reports have stopped climbing in the past year,” said Luis Ramos,
chief executive officer of The Network. “Recent data shows that employees are comfortable with and consistently
utilizing whistleblower reporting systems, and as a result, we are starting to see more companies successfully
implement and communicate their GRC programs.”
According to a recent Kroll Global Fraud Report, the average company lost $8.2 million to fraud over the past three
years. “The speed and accuracy of reporting fraud-related tips and closing investigations can have a huge financial
impact on the organization. The ‘near misses’ from the downturn need to be more closely examined to prevent fraud
in the future,” said Timothy Mohr, Certified Fraud Examiner and partner at BDO Consulting.
The Quarterly Corporate Fraud Index is a comprehensive examination of incident report activity from 12 million
employees worldwide. The data is compiled from actual incidents reported by clients of The Network and was
analyzed by The Network and BDO Consulting. Fraud-related incidents include reports on corruption and fraud,
misuse of assets, conf