KROLL ANNUAL FRAUD REPORT: two thirds (66%) of technology, media and telecoms (TMT) businesses affected by fraud
(M2 PressWIRE Via Acquire Media NewsEdge) Two thirds (66%) of technology, media and telecoms (TMT) businesses were affected by fraud in the last 12 months, according to new figures from the 2013 Kroll Global Fraud Report released today. The sector had the most widespread problem with information theft, loss or attack (31%)
The study reveals that TMT is one of the worst-affected sectors. It had the highest average fraud loss as a proportion of revenue (1.8%) and the most widespread problem with information theft, loss or attack (31%).
As technology companies look to enter new markets to establish manufacturing facilities, extend their supply chain or build R&D centres, theyre often exposed to unexpected local market risks including threats to their IP. TMT firms are responding to these threats by developing some IP protection measures theyre more likely than companies in other sectors to invest in IT security software as well as specialised and general staff training. However, the main difference in the source of information theft between the TMT sector and the survey average is a much higher level of theft of physical devices such as laptops or memory sticks from employees or third parties. This was involved in half of cases of information theft and is the most common mode of attack against companies within this sector.
With only 35% of firms in the TMT industry investing in physical asset security in the coming year well under the average of 44% - this problem may continue to undermine information security efforts elsewhere.**** **** *Areas of frequent loss in technology, media and telecoms businesses
Type of fraud
Percentage of businesses in the sector that have suffered this in the past 12 months
Information theft, loss or attack
Theft of physical assets or stock
Management conflict of interest
Vendor, supplier or procurement fraud
Internal financial fraud or theft
Tommy Helsby, Chairman, Kroll Advisory Solutions, Eurasia, commented:
Fraud is on the rise again and while increasing regulatory pressure and compliance activity is probably driving increased fraud awareness and detection, undiscovered and unreported fraud is an infection with the potential to grow into a life-threatening corporate disease.
Perpetrators of fraud are often thought of as faceless hackers in a distant land but our experience shows that to be the exception rather than the rule; the greatest vulnerability is to those who have already got past most of your defences by virtue of being an employee, partner or contractor. It is vital that as well as investing in technology, businesses mitigate the insider threat by focusing on areas like staff screening and due diligence on partners, clients and vendors.
The seventh Kroll Annual Global Fraud Report includes a full detailed industry analysis across a range of fraud categories and regions. To obtain a copy please visit **** http://www.kroll.com/fraud-report-2013-14-press-only/
For further information please contact:
Ian Morris / Judith Massey, Citigate Dewe Rogerson
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Notes to editors
Kroll commissioned the Economist Intelligence Unit to conduct a worldwide survey on fraud and its effects on business during 2012/13. A total of 901 senior executives took part in the survey from a wide range of industries, including Financial Services; Professional Services; Retail and Wholesale; Technology, Media and Telecommunications; Healthcare and Pharmaceuticals; Travel, Leisure and Transportation; Consumer Goods; Construction, Engineering and Infrastructure; Natural Resources; and Manufacturing.
Respondents were senior, with 53% at C-suite level. Almost half (49%) of participants represent companies with annual revenues of over $500m.
Respondents this year included 25% from Europe, 24% from North America, 23% from the Asia-Pacific region, 14% from Latin America and 14% from the Middle East/Africa.
Please click http://www.kroll.com/fraud-report-2013-14-press-only/ for key findings and graphics, including a detailed look at the industries, regions and types of fraud covered in the report.
Kroll, the global leader in risk mitigation and response, delivers a wide range of solutions that span investigations, due diligence, compliance, cyber security and physical security. Clients partner with Kroll for the highest-value intelligence and insight to drive the most confident decisions about protecting their companies, assets and people.
Kroll is recognized for its expertise, with 40 years of experience meeting the demands of dynamic businesses and their environments around the world.
Kroll is headquartered in New York with offices in 45 cities across 28 countries. The firm has a multidisciplinary team of nearly 4,000 employees globally.
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