Uneducated men in their 30s and 40s are among the most likely people to commit fraud, according to a new KPMG study.
A survey of senior executives including CFOs and vice-presidents from across Canada found that 75% of corporate fraud was committed by men and 69% of fraudsters were between the ages of 30 and 49. About 40% of fraudsters had no post-secondary education; 30% did.
According to the survey, people below the management level committed the most frauds; senior management accounted for 22%. Most fraudsters had worked for their company between three and five years.
The survey found that resolving a personal need, greed and opportunity were the top reasons workers defrauded their employer. Alcohol, drug abuse and gambling factored in to only 11% of reported cases.
Almost 70% of fraud cases were inside jobs; 20% involved outsiders. Eleven per cent involved both insiders and outsiders, according to the report. Almost 75% of fraudsters acted alone.
The report said that a strong communication network to senior management, a properly implemented code of conduct and an effective whistle-blowing or ethics hotline are some of the key elements to prevent corporate fraud.
(See "Deepening downturn raises risk of corporate fraud" page 10 in this week's Business in Vancouver issue 1012; March 17-23.)