Only three per cent of businesses use technology to fight fraud

Twenty-four per cent of fraud cases from 2013 to 2015 were discovered by accident, according to survey

Only three per cent of businesses detected illegal behaviour using data analytics between March 2013 and August 2015, according to a KPMG survey.

The survey found that a quarter of the frauds detected in the two-year period were committed using technology, but 24 per cent of those were discovered by accident.

KPMG's head of investigations, Alex Plavsic, said: "While it is clear that fraudsters are all too comfortable using technology to perpetrate a fraud, we are seeing little evidence that companies are doing the same to prevent it.

"A shockingly small number of companies have invested in threat-monitoring systems and data analytics. Social media is also an important weapon in the fight against fraud, and needs to be regularly monitored by companies to uncover suspicious behaviour.

"Fraudsters' urge to brag, show off assets and reveal their business connections can prove insightful as they unwittingly share too much online."

The research analysed 750 frauds committed worldwide, and found that the average fraudster was male, aged 36 to 55, held a senior role in the company and worked there for at least six years.

Some 34 per cent held executive or non-executive director roles, and 32 per cent were in management positions.

"Without anyone to keep their power in check, these executive fraudsters can commit high-value fraud and remain undetected for a significant amount of time," Plavsic said. "Due to their seemingly limitless powers, senior fraudsters also tend to be more damaging: 34 per cent of their frauds cost companies $1m or more, compared with 18 per cent for fraudsters who had more limited authority."

The survey also found that weak anti-fraud controls were a large problem, giving fraudsters an opportunity in 61 per cent of the cases.