Employee fraud is the most rapidly growing type of fraud. Forty-eight percent of survey respondents indicated employee embezzlement was on the rise, chosen over several other fraud categories.
Employee fraud is on the rise. More than half (55.4%) of respondents said the level of fraud has slightly or significantly increased in the previous 12 months compared to the level of fraud they investigated or observed in years prior.
The pressure is on. About half (49.5 percent) of respondents cited increased financial pressure as the biggest factor contributing to the increase in fraud, compared to increased opportunity (27.1%) and increased rationalization (23.7%).
The internal controls are down. Nearly 60% of in-house fraud examiners reported their companies had experienced layoffs during the past year. Among those who had experienced layoffs, about 35% said their companies had eliminated some controls.
The future looks fraud-filled. Nearly 90% of all respondents said they expect fraud to continue to increase during the next year. The type of fraud they expect to increase most is employee embezzlement.